try this for a lineup of headlines. the irs scandal moves up the food chain. holding contempt, foreigners think china is going to beat us. rolling stone may rue the day they glorified dzhokhar the bomber on the cover. and the day a yawn owe far. and eliot spitzer, anthony weiner win power, will that be a laughingstock? he tells that that question is insulting. "varney & company" is about to begin. 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.

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america's reign of dominance is at an end and china is poised to take the spot at the top accord to go a poll by pew. this is how people feel about us. 39 countries surveyed, 46% of respondents say that china has already or will soon replace america as the world's super power. even we are giving up hope. for the first time a minority of americans, 47% said the u.s. will stay on top. there's no lack of confidence in china. two-thirds of people think they have or will overtake america as the world's most powerful nation. did you ever think you would see the day when more than half of us americans are pessimistic about our future place in the world? didn't think we'd see it. you're going to expect some drama in d.c. today. another irs hearing, not ben, no, irs hearing. this time, congressman darrell issa tells fox news, the scandal

reaches into the white house. the chief counsel is going to testify. he's a white house appointee. you can bet you'll see fireworks when it starts at 11 eastern. this is a big deal. we'll bring you developments as they come in. as we were saying, the markets, well, you've got to say, they're a yawn. ben didn't move them yesterday and here is what we've got to wake everybody up this morning. and senator tom coburn, sub disthat flow in washington. can't cut anything, and even run a clip from a bill maher show, one i agree with, can you believe that? and we'll watch stocks go up a little bit more at the opening bell and netflix, yeah, making history with "the house of cards", that's next. >> i know he made you a promise, but circumstances have changed. you make a great team.

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♪ >> our producers put on good music, germane to the subject at hand. there's ben bernanke and markets love him. he produced a yawn during and after his appearance on capitol hill. we're going to hear from him later on today. we'll bring it to you. we're a minute from the opening bell. come in, scott shellady from chicago. 'cause scott, i'm tired of

hearing about ben bernanke. liven me up. tell me, i want a date certain when the dow hit 16,000, go. >> and i think 16,000 by sometime next summer, date certain, a year from today. how does that sound? i'll go out on the limb and say that. i think all of this paper talking and higher interest rate talk is way too premature. i think that september, october, is when he starts to taper. i think 2014. we're still in trouble and need to see the unemployment rate come down and the growth, gdp numbers come up, but we're not going to do anything, same course straight ahead. stuart: it's the doldrums of summer for you trading guys, isn't it? >> absolutely. we haven't had a lot of sweaty days down here, even though it's 100 degrees in chicago it's pretty cool on the trading floor. stuart: it's 100 degrees in chicago and you're wearing that thick, wooley cow jacket?

>> i can afford to lose a few pounds. stuart: good comeback, scott. the owning bell is about to ring. and you hear the bell first and stops and then they start trading, takes about four seconds before they actually start trading and frankly, we're looking at a pretty flat market open. maybe 10, maybe 15 points higher and that's about it. in about an hour and a half, ben will be answering questions again, this time from the senate. he didn't say anything yesterday that moved the market, and not so sure he's going to do anything again today. but we shall see. we're off and running and now we're up 20 points, look at that, all of a sudden, boom, 20 points higher, the same story as yesterday, we're close to 15,500. that's where we are. and let's start with the big name, dow making news, and ibm and did now that revenue to big blue declined for five straight quarters. with that in mind, where is the stock, nicole? >> well, you talk about revenue, but earnings beats, and that's

why we have an up arrow, and it's very interesting when you really start to look at the top and bottom line and sometimes there's a divergence like in this case. >> we'll take a rise of 1 1/2%. i've got three more big names all in tech. intel, lower pc sales, weakness in china. and intel cut the outlook as the stock is down nearly 3%, but this thing hardly ever moves much beyond 22, 24, into 23. and ebay disappointing outlook, and the ceo sees what he calls headwinds from europe and south korea. and half of theier for the second half of the year, headwinds coming and the stock is down big, ebay down nearly 7 cents, that's down big. check dell, shareholder meeting, adjourn, vote delayed on that takeover. new vote is going to be on the 24th and the market seems to like that. and up 2%, 13 on dell. i want to bring in market watcher dan schaeffer, the huge

and perpetual and permanent bear. >> and not a permanent bear, just a bear in this cycle. stuart: okay, okay. do you know how much money you've lost for viewers who took your advice? you say stay out of the market because it's going to crash. >> show me a viewer who's done that and i'll be happy to respond. stuart: i don't poll the viewers. >> just understand, i am long stocks and also short the market. so, i'm not just 100% short. stuart: okay, there's a guy, a former goldman sachs trader, forgotten his name, but he says 5,000 on the dow, a drop of two-thirds. >> gee, that's what i said a couple of weeks ago. >> that's right. >> well, the megaphone pattern targets 5,000 on the dow. like i explained in 1973. january of 73 to december of 1974, the stock market dropped 50% in the final drop of the megaphone pattern and the

markets took it down. and what's interesting, is that it's the political winds that are going to cause the stock markets to go down and i heard that earlier story. the irs issue, the nsa issue, there's a very big political problem in this country and the market's going to get affected by that. >> the political problem is with the democrats on the left, and the president who tends to be on the left. and you just think that it's any political problem? >> it's the tail end of this cycle is when they start hanging people. no bankers have been jailed from the debacle that happened in 2009. no professional traders have really had problems. they've paved their way out. and at the end this have cycle. this is when the courts and the people movement starts to say, enough is enough already. and it's tied into the market. >> you're looking into the long-term cycles here. >> they start to sell off rapidly within the next year, rapidly when you wake up every morning and it's down, down,

down. >> and this is a 3 trillion dollar bubble by the federal reserve that just in historical terms has never ever worked. just look at japan. stuart: we're listening to you, dan. >> i'm not saying i'm going to be 100% coming in and we're the sheep coming in and the federal reserve created in bubble. by the way, the federal reserve and your listeners need to understand this, it's not a u.s. entity. the federal reserve is an independent entity and-- >> let's leave it, you think that 5,000 on the dow is coming before 20,000. >> yes, i do, do i. stuart: come back, dan, we'd like to see you again soon. thank you, we have been keeping a close eye on gas prices, yeah, they keep going up. we're right, it's a spike. first of all, show you the price of oil. close to $107 a barrel, and up again today. now look at gas prices up a

penny almost 2 cents overnight. and 3.66 as the national average. california highest in the land. and 4.03, the average there, and by the way, connecticut has just joined the $4 per gallon club. netflix gets its first emmy nomination for its original series "house of cards". nicole, that stock has been on a tear hitting new highs. what about now? >> and it hit a new high today prior to pulling back and i do like when we hit the gas prices, still. the $4 club, you know? and the mile high club. "the house of cards", that's an em amy nomination, that's the first nod for the on-line and it's not television. they're doing well with "arrested", "game of thrones",

behind the candelabra". and we've got a running theme on our show, whether or not college is worth it. dirty jobs host, mike rowe, he was on the show last month. he had this to say about this on bill maher show. >> we are lending money we don't have to kids who will never be able to pay it back, to educate them for jobs that no longer exist. stuart: that's interesting. all right. now, there is a tentative deal in place to reverse the doubling of interest rates on student loans that went into effect july the 1st, reversing that, going back to the 3.8% loan rate and let's bring in senator tom coburn, republican from oklahoma, i don't know whether you heard mike rowe's point there, but basically saying, we're chucking money at students who cannot repay it. the subsidies early on. what do you say? >> well, i don't think that the government has any role in

education to begin with, stuart. but we're in this and we can't change it. the government's going to borrow 1.6 trillion dollars over the next ten years for student loans, which is going to add to our borrowing costs and we had a system where we weren't even covering the costs of it. so, what has come to-- what will come to the fore, late today or possibly next week, is where we're going to tie the cost of the student loans to the 10-year bill. >> that's somewhere down the road, but my point would be politically, it's awfully difficult to cut anything, isn't it? >> oh, yeah, i've been-- i've spent ten years trying to do that. gotten two or three things cut. maybe 10, 12 billion dollars annually in terms of what we've been responsible for cutting. but the point is, is we have a college education system that the government has created the inflation in by continuing to

ramp up pell grants and college loans and a lot of these college loans aren't for college, they're for spending money and one of the inappropriate things that we've done and the poor counseling that we've done, we do put a lot of kids in debt because before, people would work a couple of jobs while they were in college and make it through and not have significant debt. now they don't work a couple of jobs and have significant debt. imus: we've got a 11% delinquency rate on college loans. >> it's going to grow. imus: it is going to grow. i want to turn to the irs hearings today in washington. we are told that these hearings may reveal that the scandal goes up the food chain and reaches right very, very close to the white house. can you confirm that, sir? >> i cannot. and i probably should not comment on that until i've seen what happens in the hearing. stuart: okay. back to student loans. 11% dlithsy rate, you suggest

it's going to rise. that's a disaster, sir. >> it is, essentially when you create free money, we have loans, which the students don't have to pay the interest while they're in school, but that's not enough to go to school on if you have zero wealth, or zero assets to draw on. so then they borrow the subsidized loans and then they additionally borrow unsubsidized money and then when they're in grad school, if they get to grad school, they borrow a grad school loan and even your parents can borrow money for your college. so, what happens is, we have people graduating from college with 40 to $80,000 worth of debt. >> yeah, it's a tragedy in many respects. >> and no job. stuart: and no job to pay it back, that's right. senator tom coburn, thank you for joining us as always. >> you're welcome, stuart. take care. stuart: this week i spoke to

former new york governor eliot spitzer and he's running for new york city comptroller and a pretty powerful position. it got pretty heated during the interview. >> if you wish to merely have a sequence of frankly kind of insulting questions, that's fine, it's your show, your network, you can do what you wish, i'm happy to sit here and answer them sequentially, and i will do that. >> yes, indeed the former governor did answer my questions. you're going to find out exactly what he said and how he justifies his return to public life in the next hour. and the big board, we're up 36 points, do15,515. take a look at this, this is a lincoln hybrid. and we're taking this outside, out of my comfort zone on the new york city streets. we'll show you the new car and they're going to try and sell it

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to me. >> it's the first of a series of introduction of the lincoln motor company 2013 mkz hybrid. what's special about the vehicle, typically what you'll see in the hybrid price $3,000 premium to a gasoline engine and we decide today buck that trend. the first and only brand you can buy a hybrid for the same price as you can a base gas engine. >> let me recap, this is a hybrid and means it's got gas and electric power in it. >> absolutely. >> and there's know extra price paid because it's a hybrid unlike anything else. >> absolutely. >> and how many have you sold? the lincoln mkz. how many? >> what we're seeing, typically 15 to 20% of our sales on an mkz and the hybrid and it's a double now and we're increasing our capacity. >> are you prepared to give me a number on how many you sold? >> about 5 to 800 a month. a month? >> yes. >> that's it? now the $64,000 question, how much? >> it starts at a base of

$36,800 again, the same as our gasoline engine. >> to be realistic, if i were to walk into the showroom i'd look at 45 to 50 out the door and tax, license and delivery and everything else you're throwing at it. >> well equipped, you'd be at the end of that. >> i'm terribly sorry. >> that's okay. >> i'm going to take issue with you, you are claiming 45 miles per gallon, city, combined with the lincoln mkz. 45 miles per gallon. come on. >> it's 45 miles per gallon is epa certified and tested what you see in a hybrid, more in a gasoline engine, how you use the vehicle can change the fuel economy, we see people from the upper 30's to the low 50's depending upon how they utilize the vehicle, the amount of power, the acceleration and what is better about it-- >> wait, wait, wait, i'll bet you got 45 miles per gallon on a special test track, didn't you?

>> we are seeing people exceed 45 miles per gallon in-- >> real life driving? >> absolutely, absolutely, we did a drive event here with a bunch of media in new york a few weeks ago and again, the range was upper 30's to low 50's depending how they use the vehicle. >> look, it's a very nice machine and it's truly luxurious, and it looks really good, but i don't believe i'm going to get 45 miles per gallon. >> i can't get in, but i think we can see from the outside, go. >> we provide the service we call smart gauge and eco guide and provides it here in the instrument cluster and shows you how you're using the vehicle and where your electrical charge is and how you're utilizing the braking power of the vehicle. stuart: come on, dan, wait, wait, i want to buy it, get in and drive it and get 45 miles to the gallon. i don't want a fancy gizmo telling me how i can improve my mileage. >> and you can do that, and

that's announced a series of upgrades we're going to update the vehicle and make better decisions with the active grill shutters. and the speed in which the motor will continue to operate, again, empowering customers, and choose the fuel economy that you want. >> time is up, come on out, dan. all right, everybody, he didn't do a bad job and not entirely sure i'm sold on this thing yet, but did a good job. dan brady, thanks very much indeed. good luck, everybody, we'll see you back in the studio in a second.

>> check the big board. we hit an all-time high. dan schaeffer the bear is still a bear. we've got big names to watch for you. ibm, strong profits, but revenue down straight, five straight quarters. who cares? the stock is up nearly 3%. nearly $200 a share again. and stock, a strong quarter for ebay, that the outlook, very disappointing, and man, it's getting hit and it's down 7%. that rolling stone cover controversy is growing. people won't buy it, stores won't sell it. new at 10, the power of social media in leading a boycott of

the advertisers in the magazine, plus, my intense sit-down with eliot spitzer. things got heated. we will show you the highlights. before the last election we often talked about the parallels with the late 1970's, the carter years. the economy was not doing well and with our diplomates held hostage in iran, foreigners were treating us with contempt. that was then, what about now? does the parallel stand? well, here is my take on the national malaise in the year 2013. it's worse than the 70's, and president carter didn't use the word malaise, but stuck to his presidency. it seems to me all of these years later, our malaise has taken a dose of steroids. just look at where we stand. people are losing ground financially, wages, purchasing power falling. nearly 2 million jobs short of where we were during the resection five years ago and added 6 trillion to the debt.

how about opportunity, an important measure how we feel about ourselves. is there scope for moving up the food chain? frankly, no. we're increasingly locked into poor education, a poor job, and a struggle to keep even. that is not america. and overseas, forget about it, we're mocked, held in contempt. obamacare falling to pieces and likely to ruin our health care system and we know it. the irs scandal, i think we're increasingly uneasy at the thought that leftists in the bureaucracy took sides in the election and beat up on the president's opponents. that's appalling. and the list goes on. and add it all up, this is not a happy nation. we're not thinking positively. we're not celebrating the summer. we're escaping the grim reality of decline. i wish it weren't so. because our country's always looked ahead and seen a brighter fuch. the elites are having a grand ole time telling us what to do. we're feeling the malaise. we don't like it.

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>> thursday, july 18th, hour two of varney and company about money and where are we going america? rolling stone glorifies the boston bomber, but america revolts. john stossel asking the question, is america like rome? he says, yes. the disgraced former governor of new york makes the case to return, elliot spitzer, appears here today. dr. ablow says reaction to the zimmerman verdict on facebook

proves his point. ben speaks again. we only care if we understand what he says. this just in, no royal baby yet. ♪ moments ago, all-time high on the dow, that's intra-day. let's bring in charles. you think people should be getting into this, don't you? >> absolutely. i think people should always been in the market, not 100% invested, but anyone trying to tie the top, pick a bottom. they are afraid to buy anyway. invest in great companies. >> i don't think people are, actually. i think they are invested by the 401(k), maybe, but there's not many people picking they know and like. >> i agree. i have the fed reading at 19.8, a lot better than the reading a

month before. charles. important for you? >> it is, that and the chicago pmi. we'll dig deeper, better month over month, and it's up in part because the second half is to be better than the first, which shouldn't be hard considering the first half. >> the market did not go up on the strong economic news, but done. >> again, components, the employment part, you know, headlines are cute. >> another headline from freddie mack. 30-year fixed rate mortgages that was 4.37%. that's right, 4.37%, so that's interesting. mortgage rates came down from 45 is 1 last night to 437 this week. interesting indeed. marks up a little, 71 points higher. i want to bring in nicole. i'm looking at ibm. i think it's crossed $2 00 a

share again. did it? >> jumping today, at 198.53, and it's adding 32 positive dow points as it raised its 2013 outlook, and their earnings beat. cross $200? yes, it did. $200.94 a share. >> by the way, the reading on the leading economic indicators, no change. gained a little ground in the preif month's reading, no change, up changed this time around, no importance whatsoever? >> that used ton torrent to alan greenspan, but the mortgage rates, i mean, this housing recovery, by the way, not -- the baton has not gone from investors to main street, and if intrept -- interrupted, thars it. >>st market responded. that lower freddy mack mortgage rate, now up 77 points, 155.48.

round two for ben bernanke on capitol hill today, testifying before the senate banking committee this time. didn't move the markets yesterday, though he hinted he's prepared to stop or slow down printing, but no word from him on when he's going to do it. the hearing starts at 10:30, then faces questions from the senators at the end of this hour. we'll monitor the q&a portion, break in if there's news, but, charles, our charles found something of note, he says, that ben bernanke said yesterday. tell us. >> a note with the biggest exclamation point ever seen. ben bernanke, at the end, browbeating the guy, upset, and he says, what's going to happen if you adjust rate. this is what he said. if we were to tighten policies, the economy would tank. i mean, that's not fed speak. that's direct, in your face, there's no question about it, unequivocal, and, by the way, what's he saying? he's saying the economic

recovery is what you said coming into the show. now, it's interesting, obama threw him urn the bus two weeks ago. he threw obama's economy urn the bus saying, if not for us, the media gives president obama all kinds of credits, accolades, recovery is solid. if there's any recovery, i did it, and, secondly, don't get rid of me, this thing goes to pot. >> you know, i missed that. i didn't see it. i don't think anyone picked up on it either. >> should have been a headline everywhere. by the way, if you think the fed pulls back accommodation, not after that statement. are you kidding me! amazing. >> well done, charles. >> thanks. >> you found it, nobody else did. over my head. i didn't see it. thank you. fall out over rolling stone's, shall we say, controversial, i say outrageous, boston bombing suspect cover. that continues. some of the nation's biggest retailers announce they are not going to carry the issue of the magazine. rolling stopes' ad sales, by the way, declined 14% in 2012, is

this scandal going to hurt them more? come on in, jason, joining the company now. jason, it was social media that kicked off this revolt. in fact, i believe it was social media that kicked off the boycott of the advertisers; is that correct? >> well, that's right. in fact, in a 24-hour period, you had almost 50,000 facebook "likes" for a group opposing rolling stone for having this cover, but not for nothing. the editors had to an anticipate this would be the exact reaction to making dzhokhar tsarnaev look at dreamy in this cover, iconic story. they are now promoting it because of the ad sales increase. what they didn't anticipate is how giant retailers would pull the issue from the magazine

entirely. i don't think it's, you know, i don't think it's certainly strange that they said this is going to be very controversial, this is going to be great for ad sales, free publicity, and people will be on tv talking about it, but i don't think they anticipated the level of the backlash. >> you know, we come to you to reflect the youth vote, how are young people feeling? you got 50,000 negative posts on the rolling stone website. i presume that's mostly from young people. would that be an accurate assumption? >> well, i don't know how many young people are honestly reading and picking up an issue of rolling stone. i don't know the last time i read it. in fact, it's not even the story about dzhokhar tsarnaev. it's an 11,000-word profile, people may find it interesting learning along the way, but it's the fact that usually rolling stone covers are meant to manufacture cultural icons.

if you didn't know anything and you saw the cover, you'd think he's a protege looking dreamer and the cover involved, that's what many people find outrageous, not the story about this kid. >> i hate to be extreme here, but i think it's aiding and abetting the enemy. if you're a terrorist, out there in the desert, looking on the internet, and you see a cultural icon magazine like rolling stones featuring a very nice picture of the alleged bomber, the man who killed people and dismeeked heaven knows how many people, that's glorifying that terrorist. you'd be able to say, oh, look at us, look what we did, the americans put our boy op their cover. it's aiding and abetting the enemy, but i'm very pleased to see this kind of backlash against it. i'm sure you are too. >> well, yes, because there has to be a point where you say, all

right, it's one thing to write about the root causes of this radical jihadist as though we need more root core stories. the guy's just a jihadist. it's another thing to glamourize him and have the photo arts on the front cover. you're right. if you -- who is rolling stone appealing to? trying to increase subscriber base in the caves of afghanistan or in academia? normal americans see this and say, no, it's too far. the fact that you have the giant retailers not even selling that august issue of the magazine, it's a huge backfire. rolling stone will have increased traffic to the site, no doubt about it, but they will see a drop in a subscriber base or certainly that issue on newsstands because it's in the going to be offered by many outlets. >> i think there's a drop in the advertising revenue too. all right, jason, thank you very much indeed. >> thank you. >> dow up 71, 15542, as we

speak, yeah, nice rally. market appears to have liked the drop in mortgage rates that we reported at the top of the hour. moving on to former governor of new york, elliot spitzer. as attorney general of new yorke took on wall street, and he was accused of abusing power and office. i asked him about that directly. >> you're saying it's not true? >> absolutely not true. >> didn't abuse power? didn't leak information? >> these are, dare i say, the rather ridiculous charges of those who do not want to recognize what was going on in the capital markets. >> all right. the rest of that interview 10:35 on this program this morning. mr. spitzer defended a return to public life, and you're going to get my prediction whether or not he wins the election and what that means for new york. back to nicole. a big winner, and it's a bank? what? go. >> well, i know you're surprised because we've seen banks doing

well, and they have been reporting, and they are no different missing a 52 week high, up four and a quarter prernt, doing well with trading, investment banks, six times the amount from the prior year, give or take a little bit, but basically, sales are high, doing well. >> big gain for a big company, 4% up. quote e bay now because that's a huge loss. >> right. now, they are facing a lot of costs, talking head winds in europe and south korea, intense competition from amazon, of course, remaining huge in that group. ebay down 6.8%, the loser on the s&p 500. >> all right. next time around, maybe we can quote amazon because that thing, i just think keeping on going. thank you very much, indeed, nicole. we'll return shortly. the george zimmerman verdict divided america, playing out in social media. facebook saw a record number of people hitting the unfriend or

block button op the day after the verdict. this is right up dr. ablow's alley joining us now. you know i know you don't like facebook or social media, but seems to me after the verdict on zimmerman, people unfriend r og blocking each other, the electronic version saying i disagree with you, i don't like the opinion, get away from me. i don't see anything wrong with it, do you? >> yeah, i do, because as the emperor of emptiness, they think it's a new day where facebook takes the temperature of americans, but it's cheap. you can block somebody, you can unflep them. they were not your friends anyhow, and blocking them means you don't want to hear from them. vigorous debate, we didn't have protests in the streets, thank god, terrible violence, thank

god. if we define how americans feel by how they treat facebook accounts, we're going to be an empty nation with no meaning and nowhere to go other than down. >> i'm sorry to say, doctor, i think you're point of view is, frankly, irrelevant. soirks -- sorry, sorry. the financial markets don't care what they think about facebook. they care about revenue. it's irrelevant because it's not going away. social media's not going to go out of fashion. it's here to stay. it's a part of our lives. >> that's what they said without the roman aqua ducts, and it took 200 years to build a system like theirs once it crashed and burned. no, i think social media may profit, but that is not necessarily a good prognostic sign for where our culture is. to the extent we flock to these things, we are uninvolved and

saying we are involved, and that's a prescription for disaster because what matters is the truth, and the truth awless wins. maybe not in a decade, maybe not in two, but, listen, the financial markets have not avoided fiction either. >> that's true, that's true. >> where the money travels is not necessarily what is meaningful, and there is not meaning in facebook. >> i just bought you an extra 30 secs. use that 30 seconds telling us why you think that we're all a bunch of narcissists because of facebook. 30 seconds, doctor, go. >> thirty-seconds, here it is. when you create a soap opera version of yowrg, turn yourself in a tv show, you drug yourself. you're avoiding real friends, real relationships, real debate in thinking you substitute that for hitting a button that says block or unfriend. that takes away your real effectivend in the world, your real emotion, and it diminishes

you, and it's a drug. you know what, here's the worst part. i have a facebook account. that means that this is one of the worst drugs we've ever known because if you know it's bad and you still use it, the question is how do you turn it off? >> you're far too honest, doctor, far too honest. thank you very much, good stuff. appreciate it. >> thanks. >> sure. losing our standing in the world, a waning superpower saying we are looking more and more like ancient rome, not the ancient brits, no, ancient rome. he's back after the break. ♪ [ male announcer] surprise -- you're having triplets.

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to fly home for the big family reunion. you must be garth's father? hello. mother. mother! traveling is easy with the venture card becase you can fly any airline anytime. two words. double miles! this guy can act. wanna play doe 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? >> we have a rally. the dow jones average up 77, and now let me tell you that charles payne says he's going to make us money. he likes cypress seem -- semiconductor. >> it's breaking out here, it's the keep you want. it's higher. this year, and, of course, years ago, love what the company's doing. new products, also, they have a

book to build the shows up at the time, the lead time down to a five year low. the company, the execution, so much more nimble than before, giving them the confidence to give gyps for the next quarter. i think we are at an inflection point. look at the key metrics, top line, growth margins, income, big, big jumps from the previous quarter. not year over year, but the previous quarter. inflexion point. >> trying to remember the gentleman who runs the company, and maybe -- t.j. rogers, that's right. good. >> i know everything. >> we're all libertarians. >> every libertarian, that's right. i like the guy too. love the stock? >> easy 15, but higher. >> we brought you this number earlier, only 47% of those americans think that the u.s. will be able to keep its status as a world superpower. that's it. less than half think we'll be number one. bringing in john stossel with a different comparison,

associating america with the decline in the roman empire. look at this. >> >> in our 250 years, we accomplished amazing things, amazing prosperity. we just can't take it for granted because free and prosperous are not the natural state of things, and in human history, it's rare. we now are starting to look a lot like rome, and we ought to worry about that. >> yeah, that was a big audience, john, where were you? >> there was a thousand libertarians in freedom fest, a conference in las vegas, where the theme was comparing is america like rome? will we fall like rome? there's a lot of nasty comparisons. >> well, you say, yes, we are in that kind of decline. make the case. >> we have a agreeing government, as they had. they raised taxes, and when people wouldn't pay the taxes, they deflated the currency. as the fed prints money, nero had a coin, 9 a% silver, the

next emperor made it 85% silver, and a hundred years later, worth a penny. they just kept taking silver out. they were involved in foreign wars paying for themselves because they looted other countries, but they couldn't pay for it and people got mad, tried to appease masses with bribes, a welfare state. they created the first welfare state, free grain and olive oil. >> they didn't that, didn't they? >> they did. free bread and circuses. >> you make the case it's on the same track. that took hundreds of years. >> 1400 years. we've managed 237, so, also, we don't have slaves or kill people for sport. researching is the stuff these arrogant emperors did. they put children from around the world to -- so the emperor

could defile them. they would bring in hippos, giraffes, and lions for the the emperor to kill. it was gross. >> we're not that bad or close. >> a hundred million africa trip. >> with people eating as much as they could, throw up, and eat more, and they cleaned up the throw one. we're not still to that level. >> there's a big difference. if you were where i want to do that, i'm fine with that, it's our business, but when the emperor makes you pay for it, that's the problem. >> and you think that we are on that kind of long term, very serious decline in >> well -- >> you think that? >> our welfare state is unsustainable; right? >> we're falling to pieces? >> unless we cut. >> do we collapse? >> the optimism some expressed, steve forbes, for example, we have a tea party, people speaking about the problems, rome didn't have that. >> comment on the decline of the british empire? >> it was about time.

[laughter] >> leave it at that. >> when you say china may surpass us, so what? the fact we surpassed britain didn't hurt your empire. we trade. we can all prosper together. >> that means if dhie that passes us five years from now, you are a chinese citizen. >> excuse me. >> he's just chasing performance like any good investment. >> i'm an opportunist, but i love the country, dearly, i really do. john, thank you inned deed. tonight is the night for the show; right? >> "is america wrong"? >> nine o'clock eastern time on the fox business network, and what a great name, you know. excellent. thank you, john. legal discrimination. i'm sorry, legally decriminalized pot, now a reality in colorado and washington state, but on a national level, legalization is still a long way a way. after the break, a new poll showing those legal pot

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>> you're going to enjoy looking at this. the dow jones up 90 points, 1550 # 6. spill, everybody, the dow's up. we like it. however, look at the stocks. three dow stocks down, big losers, and this is pulling the dow backwards although it's up 90. american express down 2.5%, and 5 similar loss for verizon. to nicole, let's show everybody a winner, shall we? united health group please. >> a winner in the dow 30, up 5.5%. the united health moving to new highs, and they had the numbers, which were stellar raising their full year view, been able to do well u because the consumers have in the been hitting the hospitals and doctor's offices in order to save the money, and

they warned going forward with the crack down to lower spending in med tear and how that affects the numbers. >> they don't care about a warning, 5% up. take it, nicole, thank you very much. the discussion on legalizing marijuana. it's come a long way; hour, look at this number, only 40% of adults favor legalizing marijuanament only 40%. that's it. beverly hills cannabis club joining us now. okay. you have an advertising agency and branding agency. you support, advertise for the marijuana industry. okay. i'm shocked that only 40% of adults in this poll say go ahead and legalize fully. you got your work cut out for you. >> well, yes, i do, i work constantly. on this poll done by drug free america, funded by tobacco and alcohol, it doesn't surprise me.

>> suspect? >> i think it's leaning towards the 1200 people they had in the data base they called because other polls from the gallup poll, from others yesterday saying 96% of the audience of 60,000 people vote in support. >> not terribly scientific. it's not, obviously. look, suppose you could do a totally scientific mass pool of adults in america. where do you think the legalization number would be? >> i believe it's right about 60%. i do. i think we are very, very close. not a doubt in my mind there's legalization by 20 # 16. on the advertising issue, the big thing i saw coming from this particular article was the fact that a lot of parents do not support advertising the marijuana, and i wanted to collar pi that. i had built a magazine in the legal medical cannabis industry, and one of the things addressed was the importance of doing what we call child safe ads. one the big problems in advertising in general with the illegal market is they

advertise, you know, penises to have a drug test, which i wouldn't want my child -- >> you do advertising for cannabis sellers? >> working with 1700 dispensers. >> how do you advertise it? >> in the same way a pharmaceutical company would. when you see an ad for viagra even, it's taste. it's class against trash. if you do something an advertising agency, a professional agency would do, and it's a classy ad and not what i call a buds and boobs ad, and that's the big problem with the people that are in the marijuana business. they have half naked women. >> give me app example of advertising, what you call "classy ads" for a cannabis product? >> here's a great example of a classy ad with a picture of a senior citizen that is in a nursing home, says, stereotypical stoner, not.

whereas some ads literally have, you know, a hot chick who is naked up at the top with two marijuana leaves op their boobs. >> which is more effective? >> well, depends on the market. >> bottom line, what drives more traffic? >> if you are servicing the legal medical miles per hour industry -- >> that's a front, though. we know, overall, though, if you're in the weed business, which gets you more smokes? >> the recreational people say the trashy ones. it's a problem. i don't agree with that advertising. >> okay. >> i think we can prevent this. >> do you think we should advertise the cht content, the strength of the weed advertised? >> well, no. it's not possible because every strain varies from strain to strain every string will vary from strain to strain, physically impossible. stuart: brand names coming up, brand x have x amount of teenage see in this joint. >> when you talk about the h c

content there are laboratories that test for the purity of the canada so i absolutely support that and this has been tested by such and such facility. stuart: use the full legalization by 2016? >> i believe that with all my heart. stuart: i think it will be later and will be a conservative politician that introduces it. >> i hope to be in the steps of the wealthy socialite from the 1930s that led a group of women to all drug -- prevailed over alcohol prohibition and to follow in the footsteps working with moms for marijuana with microsoft and the president of mexico. stuart: cheryl schuman, appreciate you being with us. this week i sat down with former new york state governor elliot spitzer. it got a little heated. he defended his record and his decision to return to public life and public office. the rest of this interview will be after the break. >> if you wish to merely have a

sequence of frankly kind of insulting question that is fine. it is your network, do is you wish. i am happy to answer them sequentially.

stuart: the house has voted to delay one element of the president's individual mandate

of obamacare. look at health care insurance, obamacare unraveling? up goes the stocks. united healthcare, humana, all up by percentage points, very strong rally. united health has hit a 52 week high. does that have something to do with obamacare unraveling? look like it. i thought down with new york state governor and current candidate for new york city comptroller elliot spitzer. i asked him to defend his return to public life. >> let me make this clear to the public. the totality of my record. look at the cases we have made whether it was the wall street cases which you like to focus on, fun and interesting and important, the environmental cases that case is that are lower wage workers are cases about malpractice. whatever you welcome, my record as attorney general and as

governor was one of pursuing public interest. five years after i resigned i asked the public to give me a second chance to participate in office where i think the public so far seems to be saying my knowledge of capital markets, my knowledge of finance will give me an opportunity to represent them in an independent voice with respect to pension obligations, insuring the dollars we spend our for the purposes for which they should be spent. that is what this job is about and what the public may decide if it wants to give me an opportunity. stuart: i think you're going to win. we will continue the conversation but i think you are going to win and mr. weiner will be mayor of new york but the new york becomes a laughingstock. >> have to address that question. >> i have to address many questions i wish to address. stuart: you will address this?

>> i didn't say i wouldn't but there are other questions to address, the question is whether democracy is going to work and democracy will work. democracy will give the public an opportunity to choose among candidates. i rarely predict the outcome of elections as i don't predict jury verdict. i found there is a wisdom in the public. i always put my faith and confidence in the capacity of the public in multiple contacts. stuart: there you have it. elliot spitzer. we are joined by democrats strategist julie, welcome back. >> power you? stuart: i am well. >> that interview was testy. stuart: elliott's the other, democrat, anthony wiener democrat running for new york mayor. is it possible, i think they will both win. looks like democrats can walk away from any scandal and come back. >> that is not true. we have a congressman in south carolina who walked the

appalachian trail as governor and now -- is not only democrats but you happened have democrats in new york, among many who are running who have personal issues but this is not part of the issue. you had senators, republican senators involved in sex scandals, congressman involved in pages in the house, you can say this is a democratic or republican issue. boys will be boys regardless of the radical affiliation and you know that. stuart: when can we say girls will be girls? >> girls will be girls the trying to the the barrel for women who were involved in these can't think of any but i am sure there may be some. stuart: a laughingstock. if they are both elected. again i think they will win. >> possibility. anthony wiener less so. stuart: new york will be a laughingstock. >> i am a new yorker and not voting for either of them and

not because of their extracurricular activities but because of their records but i will say it depends the job they do in office. stuart: i think the leads the tour will win because he is standing on a beat up wall street platform. he gave wall street. >> it is more name recognition. stuart: new york wants to beat up on wall street. a lot of areas of our country want to be up -- >> new yorkers understand wall street is an interval part of the economy so they want to be it up less than people in other places but i will say most people don't know what the comptroller does enough to know whether he is beating up on wall street or not. he will win because of name recognition. having done all these campaigns all these years that really gets you very far where people know your name and walking to a voting booth and say elliot spitzer, i know him. stuart: are you comfortable going forward as a democrat, are you comfortable with these two politicians? >> i don't sing when they will

be around democrats's neck. kelly of spitzer no more so than mark sanford. i think at the end of the day what you have are two politicians, my problem with eliot's its arrears not a prostitute but how he conducted himself as governor in those days as attorney general. that is not the way to conduct yourself in public office. my problem with anthony wiener is not the sex scandal, that is between him and his wife and she has forgiven him and not for me to judge. my problem is when he was in congress i don't think he accomplished as much as somebody in his position should have. he was a more of a grandstand. stuart: when you leave the best for last. >> that is why i am not voting for some. charles: the general election you would. >> i don't know. why would you assume that? charles: i assume you will vote along party lines. >> i don't always.

>> and you voted for republicans? >> very irresponsible to vote on party lines. i would like to see that republicans will nominate. stuart: leave the best for last. key coming. >> in seventh grade at the something i never told anybody. stuart: can we all remember this? is julie -- >> not your daughter. stuart: thanks a lot. now to something really important. boiled baby watch, media frenzy. after the break, this is what we say, someone who shares my excitement. told on a minute. charles: we will be back.

at a dry cleaner, we replaced people with a machine. what?

customers didn't like it. so why do banks do it? hello? hello?! if your bank doesn't let you talk to a real person 24/7, you need an ally. hello? ally bank. your money needs an ally. stuart: let's get the minor leagues statistic out of the way. the number of people applying for first-time unemployment benefits down 24,000, 3 for the 4,000 last week, midwest level since may, signaling a lower layoff pays. look at the markets, record highs, dow jones average up 100 points, 15,571, an intraday all time high. tumbler encouraging users to change their passwords after a

major vulnerability was found in its iphone and ipad apps in addition to changing passwords sent out an apps update as well. del's board of directors delayed shareholder vote on the $24 billion buyout by michael dell, votes will be july 24th, sparking speculation the board didn't have votes to pass it, doesn't 2%. royal navy watch next, with someone who knows what she's talking about.

stuart: charles will make even

more money with the company called forest oil corp.. charles: a little bottom fishing. not at an all-time high but i like where it's than the risk reward and mostly in the south, they'd do drilling in the texas panhandle and north louisiana. a lot of problems but over the last four or five years the oil productions are 45%, now they partner with other people to help drill for this will the stock will have a big move to the upside. i love it. it is not a trading deal but when you put in your portfolio and could be double within a year. stuart: $5 to $10, july 18th. on video tape. all right. yesterday on our show we had a guest bashing the americans for their royal baby obsession. our next guest says americans should care and should be on

royal baby watch. andrew lloyd webber, operand political commentator joins us now. americans's fascination is justified. make your case. >> the queen is the figure head to a third of the world, two billion people. that is significant world news, historical significance since the norman conquest in 1066. here is the thing. we all need good news. is a depressing news cycle, in a 24/7 news cycle. we can relate to babies, relate to kate middleton, a middle-class girl whose parents are self-made. what is wrong? celebrity culture exists in the public, there's an irrational need to elevate certain individuals. exist in our history and exists now and quite frankly i would rather americans be talking about relevance around the world than kim kardashian. don: is there anything more to be said?

anything to add to this? i am fascinated by the degree to which americans are paying attention to this. charles: i am too. i don't pay attention to it, it goes over my head. there is some push back in america with respect to the idea that these are people who got a foot up in life. this is 100% opposite what the occupy movement is. when people talk around world with income inequalities of the people who were chosen by birth to be successful when everyone else is struggling. a lot of people resist because of that. stuart: they are not political people. they are there. not answering to a vote. that is attractive to americans. >> they are above politics. they are the focus of national unity, identity and pride, stability and they're very aware they have to -- they cost british taxpayers $0.83 per person per year to run.

if you have an elected head of state, paying that even more. might be head of state you don't like very much. or the spotlight, and front and center of the british brand. charles: diane was the one who saved abraham. >> making it more accessible and approachable and kate middleton's access to the royal family boosted the economy by $1.6 million and by $400 million. stuart: you mentioned the dollar number. are you comfortable living in america? >> i live living here, everyone to have a chance. i am grateful for the opportunity. charles: you should tell that to that guy on another channel. you are welcome. welcome indeed. wheat on baby watch and i'm sure

you are too. more q&a from ben bernanke coming the. we are watching for fireworks. we are on that one. here we go. friday night, buddy.

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stuart: ben bernanke is testifying to the senate banking committee, q&a could start soon, could see some fireworks.

if there are any you will know very quickly. now we have that. health care cuts, you know it, spiraling out of control. fox business's gerri willis has tips to ease the pain. shop around, your point is get into it by being prepared. gerri: first thing you need to know is how much you should pay for that procedure, people don't realize there are different price tags depending where you go. in new york city paid $2,000 for colonoscopy or $25,000 for a colonoscopy. if you want to know the average price for one of the services there are two web sites to go to, health-carebluebook.com, the founder of that company on our show tonight and newchoicehealth.com. that sets the base for you. you know what to expect what is fair in the marketplace a you of our overcharged. stuart: i could log on to those two websites and they would tell

me what is the charge for a blood test, colonoscopy, whatever it is at various institutions at various doctors and hospitals. gerri: the best time to negotiate anything is before you have it done. you could have cuts as much as 50%, he is what they do, when their daughter is pregnant wife is pregnant they go to the doctor and say i give you cash upfront, 50%, the doctor will say yes. they are squeezed by obamacare too, insurance companies have the squeeze on these people and not getting their money as fast as they went and asked to charge less. stuart: your show will have more on this. tonight. what time? gerri: 6:00 to 9:00. stuart: gerri willis, everybody, thank you very much. more varney after this. [ whirring ] [ dog barks ] i want to treat mo dogs. ♪ our business needs more cases. [ male announcer ] where do you want to take your business? i need help selling art. [ male announcer ] from broadband to web hosting to mobile apps, small business solutions from at&t

have the security you need to get you there. call us. we can show you how at&t solutions can help you do what you do... even better. ♪ do you mind grabbing my phone and opening the capital one purchase eraser? i need to redeem some venture miles before my demise. okay. it's easy to erase any recent travel expense i want. just pick that flight right there. mmm hmmm. give it a few taps, and...it'saken care of. this is pretty easy, and i see it works on hotels too. you bet. now if you like that, press the red button on top. ♪ how did he not see that coming? what's in your wallet? how did he not see that coming? if you've got it, you know how hard it can be to breathe and man, you know how that feels. copd includes emphysema and chronic bronchitis. spiriva is a once-daily inhaled copd maintenance treatment that helps open my obstructed airways for a full 24 hours.

you know, spiriva helps me breathe easier. spiriva handihaler tiotropium bromide inhalation powder does not replace fast-acting inhalers for sudden symptoms. tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostat these may worsen with spiriva. discuss all medicines you take, even eye drops. stop taking spiriva and seek immediate medical help if your breathing suddenly worsens, your throat or tongue swells, you get hives, vision changes eye pain, or problems passing urine. other side effects include dry mouth and constipation. nothing can reverse copd. spiriva helps me breathe better. does breathing with copd weigh you down? don't wait to ask your doctor about spiriva. >> totally out l time other than to say, connell, it's yours. connell: thank you. it's a deal. ?aforts bringing back lower interest rates for students, talking about that. this is interesting, a new

survey reveals the u.s. could be losing its place as world leaders to china. perve -- perspective on that. the best ever quarter, the ceo here in the hour to talk about that. that interview in 20 minutes or so. talk about baking. nearly 130 million people in the midwest and on the east coast who are just dealing with the scorching and a dangerous heat wave, so all of that and dagen on this hour of "markets now". dagen: we will not talk about the blurred lines video this hour. connell: perhaps we can get into the blurred lines, whatever ben bernanke has to say to congress today. that could be the different take on it in this hour. dagen: exactly. triple digit gain on the dow now. all-time high, annie coal, what are y