♪ imus in the morning ♪ >> kiss tax reform goodbye and let's give a big warm welcome to a trillion dollar tax hike. good friday morning, everyone. forget house senate bipartisan good feeling. forget lower rates and fewer deductions. he won't consider tax reform, oh, no, it's a trillion dollar tax increase he wants. and they want to get out of the way. have a nice friday, folks. and amazon stays the course and

takes more money and plows it back into the business and let's see if investigators stay the course on the stock. for four days straight from the president on down, democrats call the scandal phony and fake. let's see what you think. you're going to hear from one fired up tea party lady. "varney & company" about to begin.

>> tax reform, dead in the water. thanks to harry reid. reed calling for trillions in revenue. it's a must for tax reform. quoting now, it can't be even close to revenue neutral. there has be to be significant new revenues. when a democrat says revenues he or she means taxes and what does grover norquist have to say about this. to the next scandal. the president says it's phony, fake, but it's not going away.

congressman dave camp wants to know what lois lerner and two other irs administrators are doing on their summer vacation, paid for by the taxpayer. why were they placed on leave? what is the status of their investigations? do they have access? all good questions, he's not letting it slip by and so are we. much more later today. division over who should be the next fed chair to replace ben. janet yellen or larry summers. some controversial comments hurting his chances and anthony weiner, we'll talk to the man who conducted the latest pole. and tech grim reaper, putting another one on death watch. cue the organ. i was right about the phantom pig. and the dow set to open 50

points down or more, is that because of harry reid next. i want to make things more secure. [ 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 a. [ male announcer ] from broadband to web hosting to mobile apps, small business solutions from at&t

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♪ come with me and you'll be in a world of pure imagination ♪ . stuart: who came up with that?

that's good. are the facts pure imagination? and one whose group was targeted is fired up and on the show later this hour. we're close to the opening bell. let's bring in scott shellady. stick em up, stock, harry reid wants another trillion bucks out of you. is that why stocks are going to open, 60, 70 points lower? >> well, that could be part of it, but we're taking a breather between those who think we're going to accommodate more. in the end, harry reid thinks he can spend your money and my money better than we can and it's look at the nancy state. the idea that the government knows better than you ultimately ended up with the downfall of rome. keep a keen eye on it. >> i shall and a keen eye on the fed race. and janet yell enhas got the advantage and she's a money printer. what say you? >> absolutely.

i totally agree with you. this whole larry summers think is a lot of hot hair. i think that janet yellen is in and full scheme ahead. >> make some money, scott. because you're going to be up to your eyeballs. the opening bell is ringing and we're going to probably be down 50, 60, 70 points in the early going and we started off, the down trend is in place and not strong at the moment. down 10, 13 points, here we go. i want to check first up, amazon, it's doing what wall street doesn't usually like and making a son of money, but spending it, putting it back into the business and that's cutting into profits. it's posted a surprise loss. 300 bucks or less at amazon. >> that's right, down 1.3% for amazon, and they also forecasted some disappointing income and revenue and a weaker international market had some play here and as you noted did well with sales and they thought

jumped 30% and that forecast is hitting there. >> okay, right around 300, and you've got to tell me about expedia, i know it's down sharply, you've got to tell me why. they reported a quarterly profit well below the analyst estimates and look, 22 1/2%, and taking priceline down with it and a slew of the analysts are cutting it this morning. . >> yeah, that's a 22% loss. that's huge. stay right there. it's been an a long, hot summer and you've been cooling off at starbucks with the fruit energy and ice coffee drink. saw a lot of them. strong sales across the country and it says, here is the important point, starbucks says things will stay strong, after the nice outlook, that hence. and the stock is up 5%. 71.93, i think that's a new high. back to nicole, all right, everybody, cue that organ music. thank you, zynga shares hit

after disappointing outlook and give me the price, nicole. >> this is tough, this is a tough one to deliver. what's interesting about zynga, so much hope about gambling, on-line gambling and that they're going back to their original platform and they show gaming and going back to the basics and people are not liking this. >> it's not us putting zynga on death watch. i want to be clear here, it's ross, our tech grim reaper and it's the third one that he's put on death row-- death watch i should say. he joins us at the top of the hour, and stop laughing, every time i say death watch, it goes straight up. got to check facebook. the stock of the day yesterday for good reason. shares were up 25%, they made a lot of money. and that's because they haveehe' got more than a billion monthly users and it's backed off a fraction. 33.93 on facebook right now and then google, a new gadget, it's

all about bringing streaming video like netflix right to your tv. no clunky box and none of that wiring, plug it in and stream away. is this as big a deal as it sounds? we've got a tech watcher and we've got one on the set and you'll see it in the next hour and talk google stock, too. next, the battle to be the next fed chair comes down to janet yellen, versus larry summers. i see it as leftist money printer versus the establishment guy, but rich edson is in d.c. and knows far more about it than i do. handicap it for us, rich. >> anyone the president picks must go through the senate and the confirmation process. the senate aide says a democrats, many more liberal on the party are signing a letter urging them to select vice-chairman janet yellen. we've not seen this, it fails to mention larry summers directly though, and a lot of democrats are concerned he's too light on

regulation and others point to controversial remarks about women and strong voices in his own party and even nancy pelosi pushing yell en, it appears the president would have an easier confirmation process by selecting her own summers, stuart. she's got it. berkley academic, female, she can't lose. what do you say? >> sure, stuart. [laughter] i'm sorry to put you on the spot. i know you're not an opinion guy, but i couldn't resist it. it's friday, it's friday, right, thank you. all right, rich. go back to the news business. >> i've got it. >> wait for it. we're thinking out of the box this friday morning. here is a guest, he says, iraq, iraq is the fastest growing economy on earth and maybe the biggest natural resources story ever. and he also says the white house isn't supporting investment there, but he is. he joins the company and you pooled money together with your

own money and you invest it in iraq. have i got that right? >> that's exactly right, stuart. we run iraq's first longest standing, best performing fund. >> so you pool all of this money and you put it into iraqi stocks, voted on the baghdad stock exchange. >> precisely. >> pepsi bottling company? >> your local pepsi bottler, one of the local cell phone companies, local banks that are doing very well. >> how do you know you're going to get your money back? >> well, we started small about five years ago, with just our own funds and we did ome trades and we made sure that we put the money back and the brokers, everything functioned and now we've been going strong for five years, we're up 17% this year and things are going very, very well and we're getting our money back, very relybly and more than a lot in far more developed markets. do you go to iraq yourself?

>> sure, sure, i spent my first 15 years after university in the emerging markets managing business and took five years off and spent largely in iraq and also some of the neighbors. and sabbatical reported on the war in iraq and ready for different newspapers and from time to time. >> do people ayou're crazy? >> i don't know what they say, stuart, what i know is that it's exciting to be an investor in a country with its growing strongly, that is solvent and it's a heck of a lot safer than most new american cities. i don't know if we're the crazy ones. >> and so, really, you're betting on buying cheap now because of the disturbance in the region, but you're betting on long-term stability. that ultimately things will be worked out and you can get your money back with a big profit. that's your bet, isn't it? >> that's our bet and underlying growth of these individual companies. originally i have to say i think

it was a big country call that we were making. as we get to know these companies that are investing better we realize what we're really doing is owning superb companies and proving they can make huge profits even in tough times. >> they make huge profits? >> immensely. >> and soft drinks in baghdad? i've not been, i don't know. >> this is the fastest growing economy for real importance or size in the world ap it's probably the biggest oil boom in history and possibly the biggest natural resources in history and people are making a lot of money in iraq and it's a prosperous country and a businesslike country. >> where are you pulling the money from. what kind of person, is it individuals or is it institutions that put money in? >> for the most part, our investors are individuals who tend to be founders of investment firms themselves and they're not real putting client points into our funds yet. >> what's the name of it. >> iraq investment partners one and so we've got a great stable

of really sophisticated influential individuals alongside us in the fund and i have no doubt that the bigger, you know, client assets will follow soon. >> you know, we're thinking out of the box this friday morning and you're right outside that shoe box, believe me he. it was great to have you, and i wish you the very best of luck. >> nice to have you here. >> thank you very much indeed. we've got to cover anthony weiner? yes, we must. admitting to more inappropriate on-line relationship with as many as ten women. the recent poll shows a huge drop in his sport and he conducted that poll and joins us now, first of all, lee, this was taken after the first press conference earlier this week and before all these revelations-- more revelations that came out yesterday. tell us what you found? >> that's right, and what we see is a 14 point swing between kristin quinn and anthony weiner

and this cost him the lead and put him back in the pack, and he might be struggling right now even to make the runoff. so, you know, his negatives are at an all-time high and worse than when he first got into this contest and so, this is extremely damaging to the weiner campaign and as you said, the poll was taken entirely following that press conference with his wife at that he had just-- >> and now, do you say that this, are you implying that this drop, this drastic drop in support is entirely the result of this latest outbreak in scandal, that's it? >> yeah, i mean, people were willing to give anthony weiner a second chance. they seem very reluctant to give him a third chance and the whole notion that, you know, he wasn't doing anything after he resigned from congress, when that got shattered, so did his support to a significant degree. people felt that he hadn't in

fact reformed and yet, he was being deceptive once again. >> now, i know you just do the polls. i know that's what you do. but, have you ever seen anybody come back from this kind of precipitous drop to regain a position of leadership? have you ever seen, has it happened before? will it happen again? >> i think this is somewhat unique and it's made even more unique because eliot spitzer, the former governor, also with his sexcapade issues is running for controller, so there is he' kind of a daily double going on in new york and spitzer seems to be surviving it. in it sense he's been able to have voters give him a second chance to make a first impression. anthony weiner is asking for an awful lot right now with a field of candidates, you know, i just think it's a very tall order. could he conceivably recover from this? i guess so, but his comeback bid right now has really hit a very, very large bump in the road.

>> yes, it has. >> lee, the maris poll, thank you for joining us. >> my pleasure, stuart. >> check the big board, we're down 64 points. could you tell with the indicators, 65, we're just below. and oil started out at 105-- i'm sorry, 106, 107. we're down, right around 105, as we speak. president obama says the scandals are phony, fake. but his political appointee was at the white house two days before the order to target conservatives came down. next, the leader who gave impassioned testimony to congress, what does she think about the president calling her case phony? >> i want to protest and preserve the america that i grew up in, the america that people cross oceans and risk their lives to be a part of and i'm terrified it is slipping away.

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>> friday morning, 16 minutes into the session, we're down 76 points. is harry reid's trillion dollar tax increase to blame? we will be discussing that. check out the price of gold when the stock market is down, gold is barely budging down four bucks now. we're the 1325. a couple of big names you know, they are moving and we're following them. expedia, the biggest loser of the s&p 500 stocks, and you can't do that, down 25%. starbucks, the biggest winner right now, profits up 25% and the stock is up 6% to a new

high, 72.50. president obama made an outrageous statement regarding the irs targeting scandal. with this endless parade of distractions and political posturing and phony scandals, washington's taken its eye off the ball. and i'm here to say this needs to stop. stuart: repeat phony scandals. let's ask miss garrettson group was targeted and she testified before the house ways and means committee. i bet you don't think the target r targeting of your group was phony. >> stuart, i want to get something straight, you're a business guy, president obama has had four and a half years to fix the economy. during that time the economy has grown less than 1% and now he's out there telling the public that it's because of an irs scandal that he just found out about two months ago?

that may work for low information voters, but i'm he not buying it. stuart: and what did they do to you? i know he called it a phony scandal. give us a rundown, what did they do for you. we applied for 5014 c status and look us 459 days to hear back from the irs. they sent me a letter wanting 90 pieces of additional information and asking questions at that were unconstitutional and violated my rights and had no business even asking about and would not give us our status until we completed that. so, we threatened them with a lawsuit and finally received our status. >> what kind of questions were they asking? just give me a sample. >> well, they wanted to know if any of our volunteers, first of all, they wanted names of all of our volunteers and then, all the names of our donors, the amounts they gave, the dates that they

gave them. they wanted to know if they were going to run for office. and they wanted copies of any speech they'd given and wanted the names of the speakers, the speakers credentials, every pamphlet or paper they had given out they wanted a copy of. >> when they appeared before congress, you drew a lot of attention and everybody knows what happened to you and who you are. now, the president says the fbi is investigating this, have the fbi come to you and said, what do you know? have they contacted you at all? >> no, i hear crickets, no phone calls. stuart: there has-- >> no e-mails, nothing. stuart: no official contact with you whatsoever despite the big appearance you made before coping, nothing? >> that's correct. >> that's correct. >> what do you think is going on? >> well, i think that last week's testimony, which leads directly to obama's hand picked

political appointment, as the chief counsel for the irs, we know that the targeting leads to him and now, all of a sudden it's called a phony scandal. so i think they're scared of where this is leading. >> when you first heard the president or jay carney use those harsh words, phony or fake scandals, what was the first thought, yours? >> i was angry, i'm offended. there were 300 tea party groups that were targeted and how all of us can just be make belief doesn't make any sense to me. >> becky garrettson will you please keep us informed if anybody contacts you from the authorities? >> yes, yes, i definitely will. stuart: we really enjoy having you on the program. >> thank you. >> a trillion dollars in new taxes, that's harry reid's version of tax reform, don't let it ruin your weekend. we'll deal with it in my take, which is next. ♪ ♪ i'm just wild about harry ♪

♪ and harry's wild about me ♪

>> well, please take a look at tesla. deutche bank says buy it and th they've got a price target of $160 a share. and a lot about the google chrome cast and you stream video and we're going to have one here. hold it. and we'll have the dan, the olympic champion is here, dan o'brien, joins us to talk about what's right and wrong with sports today. the president will never change course. he will never even compromise, it's going to be tax the rich and spread the wealth as far as the eye can see. here is my take on senator harry reid. he's bidding the senate and pushing the president's agenda. it's going to be another disaster for the middle class. senator reid wants a trillion dollar tax hike. he has angrily rejected tax reform and demands instead a

massive tax increase. and forget the compromise worked out between dave camp in the house and max baucus in the senate and forget the bipartisan agreement. no, says senator reid, we can't have tax cuts, we must have more revenue, a trillion dollars more, he's making the political calculation that the slogan, tax the rich, will bring in the votes next year, who cares about growth and prosperity if you can convince voters that taxing the rich makes solid policy. sure, it's divisive, class warfare. if you win at the polls, who cares? well, america is beginning to care, we have recession fatigue. we want growth. we want jobs, we want rising, not falling incomes. after four years of misery we know that raising taxes does not work. i said a trillion dollar tax hike will be a disaster for the middle class, so it will be.

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stuart: friday, july 26. a jampacked show. look at this. grover norquist.

monica crowley on janet yellen. the favorite for the fed chair. we will have to hold him back. i can tell. doug seybold. millions will die if we do not get a carbon tax. olympic champion dan o'brien on doping in sports. do not forget charles paid. an all-star cast. here we go. ♪ stuart: look at this, everybody. the dow is down 59. a little bit better than it was a few minutes ago. not much impact on the market. at this point, we usually go to charles paid. we also have monica crowley with

us this morning. i want them to respond to the pope. i read a headline and i thought that the pope was being anti-capitalist. pope, rich must do more to help the poor. do not, this is from the pope, do not let money and greed steal your soul. they can only bring the illusion of being happy. >> i will give you two quotes from scripture. render unto the caesar. that came from jesus christ. there is a place for government and there is a place for god. it is the love of money that is the root of all evil. in other words, when you become obsessed with money and material goods, that is what drives the wedge between you and god.

that is what the pope is saying. stuart: do you agree? >> money cannot buy you happiness. spiritual nourishment is far more valuable. we all love money. this is a financial show. do not get me wrong. keep your eyes on the bigger prize which is heaven. there is a big distinction about what he said with the rich. it is a big distinction between saying the government must compel you through coercive taxation. stuart: charles is the senior moneymaker on this program. i think that she said it all. charles: you do not have to be

a lot of people are sitting at home getting welfare checks and abusing the government system. they are not doing anything to help themselves. iee. we did not have a lot of money. one time my mother hit the number. that is the lotto for the hood. $650. i walked into the house. she was as static. she gave me and my friend each $20. i asked why she gave my friend the same amount that she gave me. she said that is what god wanted. the government should not use it as a wedge to separate people. stuart: you know, we cover it all. that was excellent.

thank you very much, indeed. q the music. [ laughter ] ♪ stuart: we have the man who is putting it on death watch. also known as the grim reaper. >> it is fair. certain stocks are not doing so hot. stuart: zynga is social gaming. >> yes. stuart: why are they down so much? >> they have not had a good series of years here. they had a slightly smaller hit with zynga poker. they have not had this blockbuster thing that can sustain this company that is growing so quickly. everyone has sort of caught up in doing what they were doing.

it is not looking good. they brought in this new guy. they brought in this xbox chief. stocks went up a bit. now he made his report saying the next six-12 months will essentially be very volatile. that means it will go down. charles: they are abandoning gaming. they went up on the assumption that this was a huge move. >> essentially, ttey do not feel like that is where the focus should be. still, it is super risky. the market is so crowded right now. stuart: when you put something on deathwatch, all joking aside, are you saying that this is finished? >> i do not see them coming

back. stuart: can they melt in income stream from the residue of farmville? >> sure. they will never be able to keep this up. stuart: you have put others on deathwatch. >> yes. stuart: you are partially right about blackberry. you also did it with game stop you got that one wrong. >> after this year, as things continue to go digital, they are in trouble. this is not a long-term stock. stuart: sticking to it. deathwatch for zynga. >> yes. absolutely. stuart: a couple of big names that you know are moving. i will start with starbucks. nicole: starbucks is doing so

well. they are seeing increased sales at home and abroad. the stock is at a new high. raising their full-year profit forecast. doing well with seasonal profit she knows and energy drinks. it is a when. stuart: you have to tell me about amazon. they pumped a lot of money back into the company. the u.s. sales numbers jumped 30%. they all have outperforms or buys. they are still hot on amazon. stuart: it has gone up about 20% this year. that is a huge gain for such a

big company. thank you very much, indeed. a group of several very big-name conservatives who have joined media research centers to demand that the media stop ignoring the iris scandal, especially after president obama called it a phony scandal, a fake scandal. did the media just ignore those very harsh words, phony and fake? >> yes, they have. it is remarkable. the president himself said he was upset about it and may when it first came out. for the press to go along with this utterly dishonest dismissal by the president that this is a phony story is the height of hypocrisy on their part.

it is no different than what they have been doing. think about these numbers, stewards, that we pulled up just for you. 1.5 minutes. that was one exchange on cbs. that is the totality of the coverage. think about this, since the iris scandal broke in may, there has been less coverage by the network on that dan there was coverage of the baby born in great britain for three days. for three days, there was more coverage of that baby and the entire irs scandal. it gets closer and closer and closer to the president himself. it has now reached the point where the idea that this was from cincinnati has been completely debunked as false.

this has now reached the obama administration. how can this not be covered? stuart: you are demanding that it be covered. >> it has to be covered. stuart: do you expect anything to come of this? do you expect it to change this time around? >> well, i think that the public should know. the public needs to understand that it is having the world pulled over its eyes by the press. how can you not call out the president?

how dare they let this man off the hook by doing this. yes. there has to be a call. they have to be called out on this. this ii not news. these people are completely, they are mouthpieces for this administration. they are nothing else. stuart: thank you very much. we appreciate it. i have to move on. we have breaking news from france. dominic strauss: lopez criminal charges for "pimping." he could face up to ten years in prison.

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what's in your wallet?

stuart: listen what they are doing in california. the state pushing a new plan to force employers to take 3% out of paychecks. what do you say to that? >> my problem with this is this is more government coercion. they are telling them what they should or should not be doing with their money. the other part of this is, does anyone really trust government in any form? the state is totally broke. stuart: they force you to take the money out of your paycheck and it goes to the state or the state runs the fund. the state invests it for you. charles: they are guaranteeing

that you will get the money back with interest. secondly, you would know that government has never been able to do it properly. thirdly, it will be empty. it will become another entitlement. another liability on their balance sheets. it is another disaster. stuart: is there anything else that california can do??3 charles: i just do not know. stuart: the formerly golden state. another attempt from google to break into your tv screens. this time they have a new device. it is called crawled past.

it lets you stream to your tv. all you have to do is plug it in. i am holding this thing. it is not very big. what do i do with it? >> it is simple. you just plug it in. it is just an ordinary connection. stuart: this looks like a metal thing on the end. >> it goes straight into the side of the tv. there is a usb port right there. you have these in your computer.

you will find them in the back of your television as well. thirty-five dollars. stuart: now you have me interested. >> $435, that will do some of the same stuff. stuart: i get it on my big lovely screen. >> a connects to the smart phone or tablet that you are walking around with. it turns that device into a remote control for your television. stuart: just like that. you really think that i, stuart varney, could use this thing. >> i tried it last night. i plugged it in. it took me all of five minutes, maybe less.

stuart: what intrigues me is this is from google. i think of google as software. this is a physical product. >> there is a reason for that, stuart. there is a reason you are getting it for $35. stuart: so why is the stock down? you are not a financial analyst. i am surprised that the stock is in retreat. charles: it is a crowded space. tvs now seem to come with all of that stuff embedded. they are already built-in. stuart: with your tv set, you do not need this? >> i do not know. it has so much. it is overwhelming to me.

>> it is overwhelming to everyone. everyone wants you to start buying these online videos. this one is just $35. if you are slightly confused, this weight is awfully easy. >> does this only apply to online streaming? >> yes. it is limited because it is using this new technology. the youtube app from google, of course does it. stuart: my wife is in the studio and i have to ask her a question. dab, do we have a rope luvox? just nod your head.

we have one. she is not very well lit. >> it is great. stuart: thank you very much, indeed. i will buy one and you can come to my house and install it. breaking news from federal court in lower manhattan. we are expecting this. here is the latest climate hysteria coming from the left. if we do not pass a carbon tax, millions will die. i am not making this up. taxes or died. that is next. ♪

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♪ stuart: down 77 points and holding. zynga is down. take a look at activision.

it makes the popular call of duty. nicole: that is a big one in my house. this is a big deal. they entered into this buyback with over $8 million. activision is the largest videogame publisher. they will still retain a stake in activision. stuart: it is up 12%. that is what we want to know. it is friday morning and charles claims he will make us some money with a housing stock. charles: they have been hammered. i think that the street is overreacting. this stock is, in my mind, extremely oversold. the value of those orders are up

78%. stuart: look at that chart. charles: i think that they have all sold off big time. there is the chart. look at this, stuart. that is a huge selloff for a company. down here, i think your risk reward is phenomenal. maybe 35 risk. stuart: ryland homes. now this, new jersey congressman rush holt released a youtube campaign video saying millions of americans will suffer dire consequences if we do not pass a carbon tax. listen to this. >> i am and energy scientists. on climate change, either we take real action or millions will die.

the answer is a carbon tax and i will fight for it. we can do this. stuart: millions will die without a carbon tax? let's ask doctor marc siegel. that is a remarkable claim. millions will die. you are a doctor, if we do not get a carbon tax. >> of course, none of that has been related. what about a methane tax? if you own a few cows. methane is probably a bigger problem to the o zone and the co2 coming from your cars. how serious will this get?

what about al gore? stuart: rush holt is implying that the extra carbon in the air will create these wicked storms and that is what will kill us. do you see any problem with the extra carbon in the atmosphere? is that dangerous? >> well, stuart, we do not know. i always like to say a plus the does not equal delta. let's look on a practical level. how would that money help anybody?

how does it lead to more research? real research is always great. this man is a buffoon. every step of the way. let him be taxed. >> a carbon tax would be a gusher of money. >> they would probably use it to pay for obamacare. >> a bigger point on this is that global climate change, global warming as it was originally called, it is all a wealth redistribution scheme. stuart: okay. >> now the poor countries are busy making a lot of carbon also. stuart: i think we have dismissed this out of hand. >> we have not gotten rid of the bentley question yet. stuart: and we are not going to get into it either. [ laughter ]

stuart: harry reid says we need another trillion dollars in taxes.3 ♪ [ male announcer ] the mercedes-benz summer event is here.

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stuart: bernanke says his days may be numbered. i see it as a leftist money printer versus the establishment guy in that contest to succeed bernanke. i say that janet yellen has a lock on this thing. you cannot read the e-mail leftist berkeley academic. >> she makes a lot of sense. look, i think both choices are probably really bad for our monetary system and the strength of the dollar in this country, but the president has his prerogative. he will break his choice. stuart: if he does choose janet yellen, she will print a lot of

money and that is good for the stock market, charles. charles: i think they both share this sort of thing. they are in the small club of people that know better than all of us. they should actually help us and direct our lives. to your point, too much baggage. neither one will pump money. at some point, maybe it will come to main street. i wish the feds did not exist. stuart: i would have thought that the likelihood of janet yellen taking over the fed would have given a little boost to the stock market. i have to update you on three big-name stocks that we are following today. first of all, expedia. the stock is down 25%. then you have starbucks whose profits were up 25%.

a new high for starbucks. a loss for amazon. who cares. they make a lot of money. they put it all back into the company. let's get back to harry reid. he just took a blowtorch. we are calling for a trillion dollars in new revenue. he said he will not even read a plan that is revenue neutral. i am sure that grover norquist cannot be too happy about this. when harry reid refused to even read the letter touting tax reform, that is the kiss of death to tax reform and he is gung ho for trillion dollars in taxes. am i over reading this? >> i just put a time limit on your prediction which is

correct. as long as harry reid is a leader of the senate, there will be no tax reform. you cannot reduce rates if what you are really trying to do is raise a trillion dollars. that is the one with 12 zeros after it. that is a lot of money. it makes tax reform impossible. as long as harry reid runs the senate. in 2014, we can change that. stuart: this is all politics, in my opinion. i believe that senator reed along with president obama, i think that they are betting if you get out there and say, tax the rich, it is a winning political line 42014. >> obviously, they are saying

and hoping that. obama and the democrats have been telling the business community all about left-wing stuff we had to go through to get a leg did. we are really reasonable. we really want corporate tax reform. what this does is it says to the business community and some of those ceos who want to be democrats on social issues and really wanted to believe that the president and democrats would do something for growth, they are now being told for growth. you were stupid to believe us. you screwed up. you trusted us. it is a real slap in the face. the continuation of gridlock. stuart: i thought that there was some progress being made? they came together. they were talking amicably about

the form of the tax code. i thought it was progressing a long period what americans want to see. senator reed just killed that. it is more gridlock, surely. the house, under daae camp, they will come up with a package that is good. we that we may have a shot at the senate. baucus is leaving. he could still design a good bill. harry reid has explained over my dead body doesn't pass in the senate.

stuart: you've got it. grover norquist. thank you very much for joining us, as always. the dow is down 92. it was down 98. are there any good guys in sports anymore? ♪

stuart: halliburton has officially -- it has since agreed to plead guilty to one count of distraction of evidence. the stock is up. according to the survey, americans expect to see a slower rate of growth in the year ahead. vandals splashed green paint on the base of the statue of abe lincoln. next, olympic champion dan

o'briant. are there any good guys left in sports? dan o'briant, olympic champion of next. ♪ s small busiss earns double miles on every purchase every day. produce devery. [ bjorn ] just put it on my spark card. [ garth why settle for less? ahh, oh! [ garth ] great businesses deserve limited reward here's your wake up call. [ male announcer ] get the spark business card from capital one and earn unlimited rewards. choose double miles or 2% sh back on every purchase every day. what's in your wallet? [ crows ] now where's the snooze button?

♪ stuart: lance armstrong is in the spotlight again. he is fighting back against a lawsuit from the postal service. he says it is the postal service's fault. he said they should have known he was lying and doping.

charles: that is not. they took his word for it against everyone else's word. this is how he repays them? this is outrageous. that is crazy. stuart: i was lying, but you should have known it. the statute of limitations may have just run out so he wins. he does not have to give, maybe he does not have to give back. >> paid by the taxpayers. [ laughter ] stuart: let's not forget that. aaron hernandez, ryan braun and alex rodriguez. a lot of them behaving badly. we have dan o'brien here with

us. he is an olympic champion. you look fantastic. you are in terrific shape. >> i will be competing against guys from wall street to see who the most fit man on wall street or woman on wall street is. stuart: really? >> it is and event to raise money for pediatric cancer research. i am excited about it. we are trying to raise $2 million. stuart: good for you. that is terrific. talk to us about doping. there are some people who say you cannot avoid it. it will be here forever. always a choice that young

athletes make to get the edge. do you think that there is any argument that it should belegal? >> absolutely not. what i believe sports is doing is we are showing what the human body is capable of. how fast can we run a mile. how high can the human body jump. what can the human body do? what is a capable of? i do not think it is right to change that around. stuart: you are a clean guy. you are a good god. would it have given an extra edge? >> oh, absolutely. they allow you to train longer, harder, recover faster.

i surrounded myself with very good people. stuart: people came to you and offered it? >> absolutely. there were people who came to me and asked how good i wanted to be. i knew what some of the other guys were doing to get ahead. it is like one of those rooms at a party where you decide to go into or you decide not to go into. that was the route i decided to take. you knew it was a round i just decided to get away. charles: isn't there a serious conundrum for the modern day athletes to take it, become a superstar, and then take a small financial hit, a big thing to your reputation, but a small

financial hit and so put billions of dollars into your pocket stuart: you are saying that there is an opportunity for a youngster to take the dope, when the event, get a sponsorship contract, later when you have the money, then you say yes, i did a little. >> it would be a temptation. that is a conversation that i think olympic athletes have with non-olympic athlete. you take a guy like barry bonds. would you rather be iconic like mohammed ali or -- charles: like you. >> i walked away from the sport with $100 million. everyone will be talking about lance armstrong, barry bonds and mark mcgwire.

stuart: you are a great guy. you are performing on sunday. you are going up against wall street guys. fatcats. [ laughter ] >> they are very fit and they are very competitive. stuart: you will kill them. i know you will. dan o'briant -- dan o'briant, a good guy. stuart: they want to get rid of jail. what? we have it on the show next. ♪

♪ stuart: a sudden turn for the worse this friday morning. down about 98 to 99. within a couple of minutes we are not down 144 points. charles, you will still tell us how to make some money out of that -- >> i will share this with lori rothman. a special i had last night she was beating me up.

i have been watching it. there are rumors that there might be a takeover candidate. there were acquired years ago. al west the other was a benefit. but the original company back on the path that was on. think it could be a $21 stock. stuart: i think is democratic luxury. it's not. high-priced, high-end luxury store. >> i can speak to that. stuart: and a you can. >> with authority. stuart: getting rid of jail and a monopoly game because kids are too impatient to skip a turn. what is going on? >> three turns is a lot. think about how much tweettng you could get done in that amount of time. as another part to the spirit of lack of accountability in this society. it's all your fault, there's no fault of your room. what could you possibly do? i just think it's terrible idea. stuart: i agree. out of time. back in a moment.

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stuart: friday morning, time for day in. >> thank you. a battle royale brewing over who will replace ben bernanke. while mr. summers has made some enemies on capitol hill. steve : s ac capital pleading not guilty. is this indictment enough to put this firm out of business? honeywell now call-up in the latest problems for the dream liner. japan's ana airlines saying two of its streamliners have wiring problems around the locater beacon. and wolverine this weekend, the debut could turn the tide in a multimillion dollar flop for the box office, 20th-century fox is making on that dreamboat. those stories and so much more coming up this hour on markets now. ♪ co