♪ ♪ imus in the morning >> the president hasn't even made the big speech yet, but it's already going down very sadly, even liberals are critical. good morning, everyone. no new ideas, same old same old and that's according to his top advisor. today's presidential speech will be made. it will be a rehash of the one he gave in the same place eight years ago. that's not happening. wall street is yawning. the president's approval rating is down again. if you were yawning at the

slowing smart phone market stop it now. apple is selling over 2 million iphones a week and the stock is making a run. new york the capital center of the world is becoming a laughingstock, weiner, the serial sextor in the race for mayor. "varney & company" is about to begin. ♪ 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. ♪

>> right off the top. breaking news. 44 workers evacuated from a gulf of mexico fire. as of now they're working on a plan to shut it down. it's out of control, but remember, natural gas, it's not oil. alabp. hurricane-- hercules off shore owns that. the market is big when it opens because of iphone sales, just look at the numbers, 31.2

million iphones sold in the previous quarter. that's a 13-week period. 31 million. that's a 20% jump from a year ago. and u.s. sales up a whooping 51%. they're going to tell you the sales of other products like the ipad and the mack were down, doesn't matter. apple stock in pre-market is way up there. well above $430 per share and we got the quote when the market opens. all right, another weiner serial sextor, he's still running to for mayor. i still stand what i said to eliot spitzer. >> i've found a wisdom in the public and put my faith and confidence in the capacity of the public in multiple contexts to make its determinations. not only gets it right, but right more often than any other system. stuart: i asked the question, basically is new york a

laughingstock, if eliot spitzer is comptroller and he thought that was an insulting question. a big day for apple, a big day for the dow. it will open higher again today and set a record yesterday. are you in the market? well, watch money being made, hopefully by you. this is the place. here we go.

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♪ >> interesting music to come in with. same old same old. that's what we're hearing and know the president will say in his big economic speech later today. we've indeed heard all of it before. spend more money, that's what he's going to say. now, we're going to ask our pundits today where he's going wrong and that big speech though is coming up. we're a minute from the opening bell, come in. scott shelldy in chicago. listen to this, i'm seeing a statement from china's leader he will not let growth slip below 7%. this is big news and implies a big stimulus program coming in china. is that going to affect the market at all? >> i think a little bit and some folks took comfort, but we talked about manufacturing,

u.s. versus china, but one thing china does lead us on, manufacturing their own economic numbers and we've got to be careful how much we give credit to them what we're looking at there. they're in trouble as well and it's big fund managers, giving them across our desk and they're in trouble, too. >> thanks, indeed. the crowd is roaring behind scott, that means that trading has begun. is trading on the stock market on wall street as well. in the very early going, the dow has indeed opened higher again. we're up 25 points in the first few seconds of business. remember, we hit a record high yesterday. we moved onward and upward from there. again, close to 15,600. a couple of big names, you know them and they're in the news. dow components, too, strong plane sales giving boeing profits a boost. the share price is up 40% this year. look at that, $109 now. they're booking sales of the dreamliner to 2019.

and then we use caterpillar. it's an economic indicator. lower profits, a weaker outlook. the shares are down 5% this year, down another 1% this morning, it's a dow stock. record iphone sales, wow, and i mean record sales, let's get right to apple. nicole, the opening price, please. >> let's take a look at apple. 4.38. a nice move here for apple. the quarterly numbers, their earnings and revenue exceeded the analyst estimates and iphone sales, growing more than expected and that offset the disappointing ipad sales and it's interesting to hear that tim cook is saying that china is a huge opportunity for apple and see lots of growth ahead. >> yeah, it's making a move. a long time since we saw it make a move. a lot of the shareholders will be pleased. by the way, apple's supplier is getting a boost from apple's times, cirrus makes the

microchips. look at that, up goes cirrus, 3, maybe 4. and i'm going to stay on apple, a branding strategist, bruce, i can see why you're a fan. you can't argue with selling 10 million iphones a month. can you tell that they've regained its cool with these sales. >> you and i have had these conversations a couple of times and i don't think it's black or white, they're hot or not. i think that the apple brand is still the strongest brand out there and i think that the fact that these products continue to turn people on and continue to rush out and buy them is saying that people want with apple's delivering, anything similar, and yeah, they're delivering products, but they're not delivering the brand message that apple gives them. >> look, i've got to tell you a different subject for just one second, bear with me. >> let's talk about the new york's mayoral candidates, anthony weiner. bruce, more sexting after he

left office, that is brand destruction for him. if he's elected mayor, is it brand destruction for new york city as well? >> well, here is the funny thing, if i was consulting someone on a brand. we always look for some degree of congruence. where the name tells the consumer what they get. they've got to change its behavior or his name. there's nothing i can say that you won't snicker if i can say it won't be long now, you're going to laugh. if i can say he's put together a great package, you're going to laugh. >> i guess i asked for it. i guess i asked for it. >> you did indeed. >> i've got to move on. you stay there, i've got more comments later. >> and we have the ford f-150 truck parked outside our studios here in manhattan and they tried to sell it to me. almost bought one. well, truck sales gave board's profits a big boost and the company raised the outlook, that's big news on wall street.

tell me, nicole, has ford hit another high. >> another high. up 3% in a moment and new 52-week high as you noted pickup trucks doing well in north america, and record profits in asia, off set some of the losses in europe and also, outlook now won't be as bad as they anticipated for europe. so, that's another piece of good news for ford. so, it's a real winning day. >> i've got to tell you, ford is going to hire 12,000 people in the united states. 12,000 more jobs in america in tte next two years. so, that's putting their money into america and the stock is up to 17. nicole, thanks very much indeed. do you have your money in the bank instead of the stock market? is it because you don't trust wall street? steve cohen is going to face insider trading, and accused at least a half dozen traders at

his hedge fund, sac advisors, from profiting from illegal trading. >> talk about down and out, wall street is hated, people think it's rigged. is that brand gone for good? >> the reason it's not gone for good, similar to apple they have money behind the brand. people's memories are short. if done properly, they'll continue to massage their messaging and their brand and bring people back into the fold. right now i think they're doing things wrong. >> i think it's a brand and a terrible brand image pushing people away from investing in stocks. >> agreed. >> even though had they done so, they probably would have done quite well, but you're telling me they cannot really get that brand back, right? >> no, no, i believe they can get the brand back, but i think they need to start spending money and using some strategies

that resonate with consumers. i mean, most people think they cannot make money in the stock market, it only goes to the big institutional buyers and guys that we think should keep going to jail, but they don't. but wall street can bring it back because if you look at the results, as you pointed out. if people had been investing they'd be very happy this morning. stuart: let me ask you about the obama brand, if i may. that's in con-- contention as well. and there's an nbc poll showing approval rating down to 45%. would you say that that is also a tarnished brand? >> i would say that obama brand is tarnished and once again, not necessarily based on performance. as i tell all my clients, people don't buy what you do, they buy who you are. and the argument right now, really, is not about performance because as you pointed out the performance is pretty stellar, but they look

at the brand in this case the voters don't understand how the presidency makes their lives better. stuart: bruce, good stuff. not from the financial point of view, but the financial prospects of the company. thank you, good stuff. >> thank you. >> keith fitzgerald is with us on the phone a lot to cover and go through a fast. the president is i can ma-- the president is making the first of speeches on the economy. and i say it's not relevant to the markets. the administration would have a plan to do something and whipping out the campaign language, vision and change and the kitchen table, hoping to invoke some sensation of urgency. you know what? i think it's going to fall flat. the markets don't care and frankly, most americans are annoyed beyond belief.

>> meredith whitney says the detroit bankruptcy is a wave of what's coming, that means municipal bonds not terribly attractive. what say you? >> i disagree in terms of the context of wave. but it's the biggest canary in a coal mine we've seen in years. if we don't pay attention we're talking entire states like california, and municipalities like chicago are sooner rather than later. stuart: apple? a stellar report on the sales of iphones. you're not a fan, and will you buy the stock? >> i'm still not a fan and won't touch it with a ten foot pole. these products are tired, this is' no differentiation, samsung and competitors are nipping at their heels. stuart: we hear you. thank you, to the big board. the rally in the first parents is still there and not much of the 15,581 is where we are

right now. a so-called big speech from the president, yes, it's today and comes up this afternoon. let' check reality. unemployment is still high. growth is still very, very slow. dr. keith ablow is here. is the president out of touch with economic reality? we'll ask him and he knows. meredith whitney says detroit's going bust is the first domino to fall. we're covering that one and a bankruptcy battle in detroit actually begins today. after the break, one person says it's all the union's fault. that's next. ♪ (announcer) scottrade knows our clients trade

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>> okay. it's a pretty flat market, but the dow is still at 15,577. who would have thought a few months ago? look at the gold price this morning, we are at 1336. moving above the 1300 level some more, up a buck this morning. check the share price of dell. michael dell and the private equity firm silver lake partners raised their bid for the company and delayed the shareholder vote and rescheduled until next month. they want time to consider the new bid. not going well on the street. the stock is down. pepsi, price increases giving profits a boost, but the stock is dead flat. 86 a share. don't miss the cfo of pepsi coming up in our next, noon hour on the fox business network. can detroit proceed to bankruptcy? the court battle on that begins in about 15 minutes. odds are they will proceed to bankruptcy.

joining us now is rick berman for the center for union facts. all right, rick. >> how are you, sir? >> i'm well. you say that this is all the union's fault. i know what-- i know that's what you're saying. doesn't it also have something to do with a corrupt government? does it also have something to do with rapid population decline and the demise of detroit as the auto industry's focal point? >> you're right. there's always more than one reason and the corruption in the coleman young administration. kwame kilpatrick, mayor of detroit was a terrible, terrible episode. the '67 race riots certainly contributed to flight, tax base left detroit, left michigan for that matter. i was in the steel tri and the auto industry and management made terrible mistakes in

overreaching and take ford, for example. before ford went out of business, ford had 30 pages on seniority. that really took away management's decision to who could work in what job and could the most effective people and efficient people be working in certain jobs. you had the general motors contract where the union dictated which cars could be made in which plants for how many years. that's the kind of thing that destroyed the industry and when the auto industry went down and the supplier industry went down and service the supplies, and you had detroit as well as michigan in a death spiral. >> it looks like this federal judge says, yes, you can declare bankruptcy and who gets what in detroit. odds are strong, the union guys, 20,000 retirees will not get what they have been promis

promised, no matter what the state constitution says. that sends a message to union retirees, they may not get what they've been promised. you may say that this is the union's fault, but when all settles down-- >> half of the shortfall in the michigan financial or the detroit financials is money owed to retirees. and these are people who are counting on health benefits, pension benefits, and quite frankly, they're the ones who are getting screwed by all this because the union leadership -- one thing that the union leadership didn't do is agree to more layoffs. it's not like these people are getting tremendous salaries or pension benefits compared to other public employees. but, there are too many people working. when you have lost half of detroit's population, and you didn't cut back on the number of people in city services that were trying to service those people, there's just too many

people sucking off of the taxpayer. >> what about a bailout? it will never be called a bailout of course, but help for the states, help for the cities. i think that that is a probab probability from the obama administration, what say you? >> i think it's a nonstarter. i don't see how you get it through the congress. >> i think they shift money from other sources, they wouldn't put it through congress because as you say, it wouldn't get through congress. i think they could shift money from other sources from other programs and stick it into detroit to bail out the pensions. what do you say to that? >> well, you know, i've always been a fan of creative thinking and this would really be a stretch. >> yes, sir. and we're hearing you. thanks very much for joining us. >> thanks, stuart. >> my take on housing, social engineering and the obama administration. there's a bombshell coming your way and i'll deal with it next.

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>> i've got more big names you know and the stocks are moving. higher profits at panera bread and they gave a disappointing outlook. that kills you, down 6% even though the stock had been up 15% so far this year, down 12 bucks. we've got a deal in the world of underwear. hanes buying maiden form brands for more than a half billion dollars. maiden form up 22% they're being bought out. and president obama same speech, different day. juan williams is here, will he defend the move by the president, same olhere. and anthony weiner, new york state's laughingstock, what are they saying about that? and streaming movie services like spotify killing the music industry? yes, says our music insider. do you remember acorn, community organizers, activists gone wild.

they were invading bank branches and demanding for minorities and screaming racism if they were refused. and they were unr out of town, and they were based on race not the ability to pay the role. and here is the new form of housing accura housing activism and race comes first. donovan tells the naacp says that the government will take steps for predominantly white neighborhood. they're making maps of every neighborhood in america and residents will be identified by race. if a neighborhood fails to achieve the right racial balance, my words, federal money will be withheld. integrate or else. statistics will be used as evidence of discrimination, not the intent of the home buyer or seller or the bank.

no matter what you do, if the statistical results don't measure up to what the government demands, you are discriminating. your neighborhood is racist and you will be financially punished. and this is social engineeringa this is policy based on race. it is the use of government collected data on a grand scale. this is how the obama team wants to use information about you to affect your house, your home, your neighborhood. now, do you still want to hand over all of that information about your medical history? what might they do with that? peace of mind is important when you're running a successful business.

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stuart: this is our two of party and company coming to you from new york.. juan williams is here. the president claims success on the economy. streamlining music kills the music business. spot a fight, pandora to blame. the name louis for the royal baby. it is only 12-one odds. moveon, please.

♪ stuart: i am sorry, everybody, if i am laughing at king louis. let's look at apple. tim cook speaks and the stock goes up. he says that there are amazing new products coming. elizabeth macdonald is with us. are you buying and amazing new array of products coming from apple? >> having something in the automobile is very important to apple. stuart: and that is more added on to the 31 million iphones they sold in 13 weeks, which is terrific news anyway.

>> and targeting your automobile stuart: new-home sales of over 8%. 8.3%. that is a solid, but it is new homes. let's get this straight. it is newly constructed homes. 8.3%. it is a good indicator of the state of the new-home housing market. back to stocks. boeing. 169 planes last quarter. i am looking at 108 on boeing. nicole: it really is looking good. they have had better margins. the stock is up one quarter of 1%. it did hit a new annual highs.

a great day for boeing despite the fact that there were a lot of worries with that dreamliner. stuart: caterpillar. a dow stock. a very different story. nicole: margins have subtracted. it is to the downside. in addition to having a tough quarter, they gave an outlook, a forecast for their profit and they had to cut those numbers. stuart: thank you very much, indeed. president obama will make an economic speech later this hour. he will make the speech in the same place that he made a very similar speech eight years ago. come on in rich edson in washington. is there anything new in the speech? rich: would they be surprised by

anything that the president would have to say over the next couple of weeks? there is one thing that the administration and the president have here. it is consistency. listen to this. >> we really need congress to come to washington and focus on the american people. we have seen short-term political interest and gameplaying and posturing getting in the way. >> republican say if only the president would reach out to them and work together. nothing new here. stuart: nothing new. it is their fault. by the way, even liberals are expressing some frustration. maybe even giving up on the

president. what would set this apart is that obama would be reprising a speech that he made eight years ago. just six months into his second term, obama is fresh out of ideas. that is from the washington post. his approval ratings are down. juan williams is here. are you getting tired of this? the economy is not doing well and the president has nothing new, no new proposals for economic policy. he is blaming washington. he is blaming his opponents. are you not tired of this? >> well, no. washington is not the key player here. i just think everybody is outside of washington. if it was left to these bozos

here, it is the same old same old. stuart: i am saying it is the same old same old from the president. he ill make a series of big speeches on the economy. the economy is growing at way less than 2%. four years into a recovery. the unemployment rate is going up. i am frustrated. i want some leadership on the economy. some dealing with the economy. >> let me to recast your vision. it is pretty negative, stuart. to speak directly to your point, bernanke, the fed chair just said if congress would get off the dime here and start spending some money, stop focusing solely

on austerity and instead understand that the government is a major engine of economic activity, we go bump up jobs and all of the rest in the country. stuart: then it is same old same old. the president will go out there and say, spend more money. that is all we have had for the last four years. >> we have had some stimulus. we have not subsequently followed up. stuart: we are stuck. we have failed to generate real expansion of the private sector of the economy which is the big part of the economy. where is the discussion of serious tax reform?

where is the mention of it. >> you have a congress that prefers to vote to do away with the irs and focus on something tangible. stuart: why isn't the president today speaking about tax reform? we know it would really start to revitalize the american economy. tell me. >> where we disagree is that if the president spoke it would do nothing but antagonize republicans and caused them to go the other way. they do not want the president to take the lead. they want to have it come off the hill and they are stalled. stuart: you lost me. we will agree to disagree. how about anthony wiener?

>> he is and embarrassment. i will say that i do not think it would work anywhere else that you would have somebody that was involved in that kind of photographic, corner graphic activity say that they are now running for public office. wouldn't he be subject to mockery which mark. stuart: finally, absolute agreement. one thing, i live in the great state of new jersey. [ laughter ] stuart: good to see you. fact two nicole petallides. i cannot believe this. hitting a new high. nicole: a new high.

leading the s&p 500. it is all about mobile online downloading of games. remember, we used to go to the store and buy those packaged games. that is not the way of the future. i had my teenage nephew over at my house the other night for dinner. he said the last five games he got he downloaded. it is the wave of the future. stuart: you are quite right. thank you very much, indeed. before we move on, i have to talk to elizabeth macdonald. are you not getting a little tired of the same old same old kind of president when the economy is dead flat? >> juan williams lost me also.

listen, the policies clearly are not going in the right direction. 833,000 more americans are now on a part-time basis. fewer full-time jobs since january. that is the direction we are heading. stuart: he will never change policy. 2.4 billion people living under someone else's roof. not forming a household of their own. more than half of those are young people. age 18-24. richard, thank you very much for coming by. i find that an appalling number. over 1 million youngsters should be living at home because of the poor state of the economy, the overhanging student debt, i find

that flat out appalling. >> the only way we can have the return investment, stuart, is by fixing the student loan debt crisis. i think it is pretty simple. stuart: fixing the student debt crisis? how are you going to do that? are you implying a bailout? >> stuart, not at all. we see homeowners that are not credit worthy. they are able to refinance their home debt. stuart: your suggestion is the government pays. that is a form of bailout. >> not at all. when you refinance your home, you pay for it. stuart: you are a democrat.

are you happy with the state of economy? this go nowhere president and his speech today? >> i think you are right. young people do want jobs. stuart: wrong policies from the president and no leadership. i have to move on. the pope. wait for it. "personal dignity comes from working, from earning your bread. young people are in crisis." the pope is a capitalist. he is not saying anything about a handout. he is not saying anything about refinancing loans. he is saying that there is dignity in work. why aren't you saying that?

>> i agree. young people want to work. the options are limited. we have not seen this congress invest in america's greatest resource, people. we could really see a return of investment here. there are people who are educated and are trying to get out to the market. stuart: we agree to differ. the idea that congress should spend more money and magically create jobs for young people has been dismissed because it simply has not worked. we thank you very much for being on the program. work hard, you expect respect. did you get fired by text. that sounds unlikely. after the break, someone who experienced just that.

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, ♪ stuart: an update on edward snowden. they are contradicting an earlier report. the lawyer says that snowden is going nowhere for now. higher profits, raised its forecast, its stock is up 40%. shares of broad, are lower. they made a disappointing forecast. down 14%. they make chips for smart phones. getting fired, bad enough on its own. imagine getting fired by a text message. in general, we fear that you

have outgrown the company and it will be better for your career to move on. welcome to the program, michael. >> thank you for having me. how long have you worked for them? >> i worked for them for ten years and known them for ten. stuart: had you had any hand that they were not satisfied with your performance? >> absolutely not. it is very hurtful. i feel as if they were my family. it would be as if your mother told you she did not want you in her house anymore. in any situation a person wants to leave or do part in the best way possible. i do not feel as if this was so graceful. this happened july 1.

stuart: have you gotten over it? >> i had my first audition yesterday. i did okay. i did not break down. >> are you the only person who has been fired by text? >> to my knowledge, yes. >> do you think this is a growing trend? >> unfortunately, i do think it is. it is simple. it is easy. >> it seems really abusive to do it that way. >> while this is not a good way, i do not want to hurt them. stuart: i would have thought you would have jumped on a lawyer really fast. did you get any back pay? >> no. stuart: any severance pay?

>> no. stuart: nothing? >> right. have they fired me face to face, i would not be here, of course. my feelings are hurt. i do not want bad things for them and i hope that they never do this again. stuart: that is and interesting statement. thank you very much for joining us. no new ideas expected from the president today. same old same old. dr. keith ablow is still here. he responds to this white house video after the break. >> whether this will be a company where working people can raise enough to build a family, own a home and secure a retirement. we still have a long way to go.

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♪ stuart: moving down this wednesday morning.

we do not have good news for you from caterpillar. it is an indicator for the overall economy, as well. not good for caterpillar, not good for the economy. bob buster iphone sales. we are told that there is an amazing array of new products coming. nicole: it is an exciting day for the shareholders. up 5%. they are doing well. we know new things are coming down the pipeline, as well. stuart: 31.2 million sales of iphones and what, a fremont.

i believe that demand in the united states was up. nicole: we heard about bigger screens for both the ipod and the iphone's. stuart: it is on a run. when it goes up 5%, that is a run. thank you very much, nicole. president obama releasing a video over the weekend touting his achievements. >> working people can earn enough to raise a family, build a modest savings, own a home and secure their retirement. we have come a long way in the last four and a half years. stuart: is the president

avoiding his real economic record? dr. keith ablow joins us for more. is he deluding himself? >> i think he is making americans delude himself. when people think of the president not in touch with reality, i think they give him a pass. if he moves the social ideal viewpoint forward at the expense of capitalism, he wins. he feels good about that and he wants us to also. stuart: are you saying politicians -- >> i am not saying that about all politicians.

the best of politicians will allow you to feel the pain, rally you to confront it and give you the tools to do it. this politician has ideas in his heart and head that he holds very closely to him while speaking to others that he hopes will won't people into a sense of security about what his real agenda is. speak to a very successful guy. >> absolutely. if you were a pastor of a church and your real agenda was to question people about their religion -- you may quietly be

celebrating. i suspect that he is quietly, or not so uietly, celebrating. more people are on food stamps. more people are dependent on government. he has done his job. stuart: okay. i have to move on. they spoke. twitter. you are on a major show. i have to ask you about anthony wiener. what do you say? >> here is the thing, anthony wiener, there is a wide to this. why would you after being found out once, why would you do this again? there has to be a compulsion. you can not trust such a person.

this guy can be trusted to do what is in the public interest? no. he will do the things that pump him up. do the things that make him feel the low beloved. if you want somebody who is whole, who may actually do something for you, you would never cast a ballot for this guy. stuart: his wife is staying with him. put her on the couch. >> i do not favor when there are sexual problems in the marriage, i do not favor dissolving the marriage at all. she is just as much of an addict as he is. she is saying that you should vote for him.

this woman found him. it was no accident. this two headed monster is looking for your vote. well, you know, the right answer is both of them should be in therapy. perhaps her a little more than him. she is willing to act through him. at least he is the one sending out the naked pictures. [ laughter ] stuart: thank you very much, indeed. >> all right, my friend. take care. stuart: i have to dow down 50 points. we have a drawdown in the amount of crude oil we have in storage. found over 2 million barrels. i will see what that is doing to the price of oil in a moment. the obama administration's new push for social engineering.

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stuart: the gop is moving ahead to block any funding. senator mike lee leading the

way. >> we will not pass a continuing resolution that has further implementation for obamacare. stuart: we have this from brevard county, florida. it says it will have to cut the hours for its 300 part-time workers. what is going on? >> huge union backlash. we are hearing from teachers that they are being put back. they will put you on to the exchanges.

stuart: unions turned against it. stuart: the union guys do not get their dues. moving on. sean donovan said the obama administration will take steps to add classes. welcome to "varney & company." >> i am delighted to be here. i am used to seeing you with our friend megan. stuart: i see this as a giant social engineering product. if you do not have the right racial mix, we will take the federal money away from you.

>> that would be giving them a lot of credit for efficacy. that is the aim. whether they can achieve that aim, i do not know. we both have blue dots. we are white dudes. you would be in an area that should be subject to what the administration refers to as affirmatively further fair housing. that is a shorthand for what they say is encouraging developers, planners and others to encourage integration and communities. you could see, as donovan pointed out, billions and billions of dollars in federal

subsidies. they could be at risk if you are not furthering diversity in neighborhoods. stuart: if you do not end up what the government thinks is the right racial mix, they will take financial action. >> that is the potential in this. what fair housing laws have done in the past is pretty simple. this is a change. they will punish you if you are doing a bad thing. this says you could be subject to penalty if you are not doing what we deem to be a good thing. this is a huge change from what we have seen in that agency for

decades to what they are doing now. if you are a planner, you are paying attention to this because there is big money on the line. stuart: i am paying attention to the social engineering aspect. shaun donovan is talking about this mega database. databases are very much in the news. it sometimes worries me. you use it against me if i do not have the right racial mix in my area. >> this is information that already existed. city planners and others can conveniently go through. what they are doing is distilling pre-existing data. when you centralized data

inputted in one place, opportunities for mischief and other things start to crop up pretty fast. even the best of intentions often go awry. dennis: am i right to say that they are indeed creating maps. >> you can go online and look at every street, every street in america and look at the race. stuart: thank you very much for bringing this to everyone's attention. i got this story from you. >> we are glad to help. stuart: well done, indeed. thank you sir. appreciate it. >> the dow is down 33. music streaming. it is just like spot of five.

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♪ stuart: big fire at a natural gas well off the coast of louisiana. forty-four evacuated. no injuries. hercules offshore is down 4%. silverlake has increased their bid to buy out dell. an additional $150 million chucked into the deal. it did not seem to work. the shareholder meeting rescheduled for next month. trader joe's, chosen by more than 6000 customers. whole foods follows in the top three. ♪

stuart: to nicole petallides. sequester. what sequester? nicole: an all-time high. i just looked at a 20 year chart. they make the global hawk planes and defensive electronics. they reported profits and they are doing so well with their earnings and raised their full-year forecast.

stuart: can we say it is a drone stock? i bet we could say that. thank you very much, indeed. we are now down 29 points. we had been down 60. music streaming might kill, seriously hurt the music business. moses avalon joins us now. it is helping to really hurt the artist. the musicians. >> artist and musicians get paid on royalty. they rely on those entities to properly exploit and capitalize on the work. what happens when the people you trusted to properly capitalize on the work make a shortsighted

deal that puts very little money and the artists pocket. stuart: spot of five does not pay much for the music they are playing? >> i do not want to vilify spot of five. labels love this. it is like selling your inventory wholesale. stuart: you represent the artists. the musicians, the guys who create the music, they get the short end of the music. >> they do. stuart: they have to adjust to technology. we are not going back to vinyl

records. we certainly are not going back to eight tracks. they have to adjust to new technology. >> this is how you get paid for the technology argument. no one is arguing that technology has to advance. the problem is how do you pay these people from the new tech knowledge he. they signed with a label before this type knowledge he existed. the label would perform a fiduciary role of sorts in protecting their interests. instead, they make deals and put money in the labels pocket first and foremost and then pay the artist very miniscule amounts. stuart: you remind me of tom petty. not you, personally, but -- stinks that the artists do not get paid enough. you know, the streaming is only

-- what? is it really a threat? >> labels did have their reservations ten years ago. they are really embracing streaming services. this article is on my website. one reason is because they get a large lump sum of money up front. you cannot audit what is known as an on allocated receipt. the artists have no way of knowing exactly how much money they are supposed to be paid. labels love this. some of the deals are good and some are not. stuart: why the dark glasses? >> it is just my look.

stuart: very good story. thank you. steve cohen, billionaire. one of the most successful investors in the industry. investors in the industry. we will deal with that next. ♪ me for the big family reunion. you must be garth's father? hello. mother. mother! traveling is easy wih the venture card because you n fly any airline anytime. two words. double miles! this guy can act. wanna play dodge rock? oh, you guys! and with double miles you can actuay use, you never miss the fun. beard growing contest and go! ♪ win! what's in your wallet? win! trust your instincts to make the call. to treat my low testosterone, my doctor and i went with axiron, the only underarm low t treatment. axiron can restore t levels to normal

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lou: virginia is a traditionally red states. recently, blue. a dramatic race for governor could change the future color of the state. the election chances tonight at 7:00 p.m. eastern. ♪ stua: th is t th oy vera thaouasoday. special report today on the presidents economic speech. his coverage begins at 12:50 p.m. steve cohen could face criminal charges. insider trading charges. liz, this guy is very well known. explain to me the impact of possible criminal >> it would be a death sentence against that firm.

this would be one of the most high-profile insider cases in years. insider trading is unacceptable. basically, law enforcement will be coming after you and has been coming after you. it put them on the radar screen. stuart: we have an awful lot of viewers that have money and a hedge fund. criminal charges -- >> i know for a fact that law enforcement has been doing data mining. stuart: impact chilling. leave it at that. thank you very much. by the way, your reaction to my take is coming up next. ♪

stuart: if your neighborhood has

the wrong racial mix, according to the government, the government will withdraw funds. that is a form of racial mapping. now it is time for your take. we need to be raised as equals and treated like valuable members of society. if we do that, integration will occur naturally in a positive way. it is a disaster in the making. i do not understand. isn't this another form of racial profiling, racial discrimination profiling? we have a lot of these on our facebook page. thank you very much for joining us. let's go to connell. connell: thank you very much, stuart. we have this news breaking in the gulf. you are already out 44 workers evacuated from the platform. we will have that.

we also have the president out campaigning for his economic plan. america works best when it grows from the middle out, not the top down. there is a bankruptcy hearing that will be held today. the automakers are now proving to be a bright spot. we will tell you how that is working out. a big story for the wall street community. charlie gasparino with the details. we have all of that and more coming up this hour of markets now. ♪ dagen: you are looking at video right now, good morning, everybody, of a fire burning earlier off the coasts of louisiana.