♪ ♪ ♪ imus in the morning >> here we go again. another dismal performance for the economy and from the president on down, nobody is taking responsibility. good morning, everyone. april through june, 1.7% growth. january through march period. there was a huge downward revision. only 1.1% growth. look, we've seen this before. in every one of the obama years we've been promised a more vigorous recovery. yet, it's not happening. one hour from now, mr. obama will present to the congress,

if congress won't buy it reports suggest that the president will change the rules through executive action. another hit to obama care this morning, a revenue shortfall of 100 million a month for the government because of the employer mandate delay. by the way, happy birthday, milton friedman. we could really use you now. "varney & company" is about to begin. bjorn earns unlimited rewas for his small business take theseags to room 12 plee. [ garth ] bjors small busiss earns double miles on every purchase evy day. produce delivery. [ 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 capitalne anearn unlimited rewards. choose double miles or 2% ca back on every purchasevery day. what's in your wallet? [ crows ] now where's the snooze button?

>> okay. we know you're interested so we will give it to you. the weiner story. in a new ad he says he's not dropping out of a new york city mayoral race and there's a new controversy. his spokeswoman apologizing after a profanity laced interview. using vulgar terms to describe a former campaign intern. i'm not going to repeat them. let's just say this thing, weiner not going away. elsewhere, a live look at capitol hill for you. president obama scheduled to arrive in less than an hour. meeting with house and senate democrats to discuss policy

ahead of the august recess. on the docket. his plans to fix the economy. a grand bargain on the corporate tax rate to fund huge infrastructure spending and if congress doesn't buy it, he will buy pass the legislative branch. new reports suggest that the president may use executive action, authority to push through his agenda on a wide range of issues. the hits keep on coming for obama care. and the mandate will cost 12 billion and then there's this. a growing list of towns and cities, pushing workers to part-time to avoid the cost of obama care, that's government doing this. talking teachers, janitors, union members. we've got the full report for you coming at the top of the hour. and then the markets, facebook, you follow it, look at it. now it's going to sell tv style ads to more than $2 million per day per advertiser, that would put a message in front of 700

million daily users and here is the question. will the stock hit the $38 ipo price today? we're going to show you in just a moment. first though, a look at arkansas. the prisoner escape. able to squeeze through a 12 by 38 reception window and guards were distracted and there he goes, ran out to a car waiting for him. he is still at large. ♪

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and low fees and commissions are another reason serious investors are choosing fidelity. now get 200 free trades when you open an account. >> and i wasn't getting that for a second, but look at that, president obama and the keystone pipeline was he joking saying it will create only 50, 5-0 jobs? and the chairman of the energy committee fred upton what's he going to say about 50 jobs. scott shelldy. january through march 1.1%, rate of growth. how will that affect your trading today? >> i think what we've confirmed the fact that the economists

don't know what they're looking at. they were looking at something slightly negative and comes out 1.8 the. and number two, what are the people making? if we've got only a gdp of 1 1/2, that's troubling and lastly, for every job created we've put two more people on food stamps. we're still in trouble. >> yes, thank you very much indeed, scott. and they're shouting behind him. that means the opening of wall street has begun. and trading is underway and not much. but the opening trend is up this wednesday morning. we're up 20 points. 15,545. 2 million dollars a day, that's what one facebook, that's one of facebook's new tv style ads will cost advertisers, and maybe it's a small price to pay to get in front of a billion users per month. nicole, facebook stock, not quite. >> getting closer, pennies away yesterday and everybody who has been so frustrated, this is a

$38 ipo, all the hoopla, right and all they did was see it go down at 1755, so it surged over 40% in four days and you talk about mobile ad revenue and games now, and tv type ads and 37.98. i saw it. stuart: this is a stock that we said just a few days ago, never seen such a big name go up so far so fast and now almost at $38. chime in if it hits 38 for us, thanks, nicole. you like the hard stuff, talking drinking now, that's giving deand yo a boost. rising consumption, mainly in the u.s. helped to boost profits. and diagoe. and inbev, even though the company actually sells less beer, profits up. look at that, 6% up for the beer company.

and apple's chief, tim cook in china hoping to sell china telecom on upcoming iphones. nicole, apple stock, please? >> very interesting, right? he's working china, up 1/2 a percent. 455.38 and apple has been gaining recently and working over in china and also talking to the head of china mobile, to see whether or not they can delve into that and see how they're the largest company for subscribers over there and we'll see what that will be. >> i don't know if you can see it, but we've got a bug on the screen in the bo bottom right. up nearly 60 cents on facebook, 38.22. so above the ipo price. i think the intraday high was 42 or something like that. >> i'm feeling it's 45 and that's offhand, but you know it's interesting, mark zucker burg, he was so mad when people were talking about what garbage

the stock was. and he said you get it here, get it at a bargain and remember when he said something like that? many' paraphrasing. and. >> there's a lot of people who bought that above 40 praying is goes back to 40 and see what they'll do, sell at that point? thanks, nicole. and we're up on the dow and 15565. i want to get back to that gdp report that we have this morning. the strength of the economy or otherwise. and only 1.1%, i'm calling that dismal. and the second quarter, that would be april through june. 1.7%. and not much better. come on in, former labor secretary. elaine chao: i'm saying it's dismal and almost on the verge of pathetic. who is to blame here, elaine? >> it's disappointing, obviously, the unemployment rate is very high. and we need the economy to grow so more jobs can be created and

more people can find employment. clearly, the over burdensome and heavy regulations is an issue. the avalanche of regulations that are just suffocating, our economy is clearly the culprit. you know, for an economy that's gone through such a severe recession, and all past experiences and the economy has to jump back fairly quickly and and why has not economy not come back as quickly, and clearly and regulations, and it's suffocating this economy. >> and the media is just not telling that story. and. >> no, they're not. >> in fact, they are he a saying, oh, the gdp report, better than expected, and inside, says cbs, i'm not getting the story from the establishment media than i'm getting from you. >> on a monday, the white house itself declared in response of

today's support that they were downward, the gdp number. the other thing you're hearing is the sequestration is responsible for this lackluster performance of the gdp. but, let's be honest, sequestration is less than 2%. it's about 2.2%, for any household in america, that is spending more than it takes in, they've got to trim their budget. and to do so, by a small amount like 2.2%, is something that they would expect the government to do. so, to blame it on sequestration, is really ill-placed and it's just kind of indicative of this administration, everything else, but themselves. >> now, let's move on to friday morning, 8:30 eastern time, the big monthly jobs report. now, in the last, what i think is 3 to 6 months we've averaged, i think, 200,000 jobs per month. again, i say that is-- >> slightly lower than that. >> that's not good enough. >> no, it's not. stuart: i say that's nowhere near good enough. i'm not going to say it's dismal, but nowhere good

enough. and that's not the story that i'm reading in the establishment media day after day after day. go. >> it's really kind of surprising and a selective outrage and average unemployment rate from 2001 to 2008 was 5.2% and while i was in office, the media, the mainstream establishment media kept on talking down the economy. and it's now very ironic that when the economy is truly bad, that they're talking it up. we have the initial claims filed 8:30. let's take a look at that. las week, 7,000 more, unemployment insurance claims were filed than the previous week, so, it continues to be very volatile. and then on friday, of course, we have the unemployment numbers being released. and our population growth continues to be quite robust, meaning our population growth. so, the economy has to provide jobs, not only for those people who are unemployed, but also

for those newcomers entering the work force, so we need to produce about 200 to 250,000 net new jobs every month just to keep even with population growth and we're not there yet. >> what we're doing, we're pushing people out of the work force, putting them on disability. they're just dropping out. that's what's happening. elaine, i'm terribly story, i've got to dash because i've got to talk about facebook, on a roll, you do understand. elaine chao, everyone, let's get to facebook with ed butowsky, our market watcher. come in, ed. $38.07 a share as we speak. do you like it? >> well, i like it. i like it for the reason reasons, earnings are driving this. they have revenues and the growth projections are spectacular, what they're doing with the advertising is exactly what they need to do. think about this. if you're an advertiser, you're searching for eyes and ears to see your marketing message and where are they? you're saying, stuart, they're

hiding behind that computer. a 30 second ad is cheap when you run the numbers on cost per thousand basis. and let's suppose. i want you to look at the trading pattern of some of the big names that we've seen recently. everyone knows i own microsoft. i was cheering that on. when it went from 28 to 36 and then cut off the knees, down to 31. same with apple. up it goes to 700, chopped off at the knees, down to 400, 457. do you think we'll see the same with facebook? >> no, it's a different story. those other companies are older and technology stocks are not doing as well as the overall markets and they're up, the index is up 8% when the overall market is up 20% and the reason is, stuart, because the global growth. most of to he is companies are getting the growth from outside the u.s. as the world economy grows, those technology stocks that are growth oriented get

hit more than the consumer products companies that don't have the steep projections and it's not surprising they haven't done well, but facebook is a different story, it's a revenue machine and apple is as well and microsoft, you know, from your standpoint, it is, but, facebook, stuart, is a different animal and i expect this thing to grow very sharply. >> very interesting. ed, thank you very much indeed. good to see you again, and facebook right now is just above the ipo of $38. 38.10. we're going to keep the bug up there so you can follow facebook in its progress. nearly 100 influential players in washington, make all illegal immigrants legal. and get this, most of the people, mostly on the republican side of the fence of the they're the signers of this letter. how much is that going to cost you? the judge is here at 10:25. check the big board please, we're up 52 points this

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>> looks like a 15,500 level is something of a baseline, at least for now. we're up 45 at 15, 565. with the price of gold this morning. down 8 bucks, but still at 1300 at 1316 an ounce. stock alert for you. dell's founder, michael dell, and that private equity firm he's got together. say that the buyout will

collapse if the shareholder voting rules stay the same. they're down nearly 2% today. the billionaire hedge fund manager bought a stake in air products and makes industrial gases, no surprise, the stock is up 108 on that company. now, this week in las vegas, the hackers have a convention, now, these are the good guys, not the bad guys. they're getting together with businesses and they're going to tell these businesses who are the targets of hacking in the future and how they can avoid it. how they can be defensive. we have with us red tiger security at this conference in vegas this week. all right, jonathan. >> i'm classifying you guys at the good guys. your hacking operation, but you're the good guys, i've got that. i want you to tell our viewers, what is the scareiest hack that you see out there? >> okay. so, this is really interesting. i was walking by this little

setup, and a lot of these crazy antennas sticking up out of this thing and there's a hacked cell phone tower that people brought into the convention to show you can hack into the cell phone network and a huge plasma screen and pictures people are sending each other and set up a man in the middle cell phone tower if you're not looking at your cell phone, it will jump on to the cell phone tower and they'll scrape everything you've doing with your phone, clone your phone and get the messages you're sending off your phone, it was pretty interesting. stuart: that's frightening. really is. but what about hacking into bank accounts or investment accounts? for a lot of our viewers, this is a financial program, that's a scary prospect. is that out there? is that had a more frequent possibility in the future? >> 0 ex oh, definitely, yes. the prospects that goes into

the vulnerability and weaknesses, basically if you're at a coffee shop and airport and there's hackers present that can defeat the accts. they can actually jump into your stream and they can do any actions that you're doing, they can see your activity. and so, what we recommend is that you have businesses that they should tunnel back to their secure network back at their business to use the internet and not use the internet given to them at the airport or a public place. >> wow, so you can -- you could block the hacks, if you know what you're doing? you could do that? >> that's correct, yes, absolutely. >> okay, what's this about hacking into nuclear power plants or hacking into a car? it's computer systems so that it stops dead. all of those things are possible? >> oh, absolutely, yes. it's a really interesting time to be in the cyber security industry and there's 25,000 hackers all in las vegas all at the same time and what can go wrong, right?

>> and how do i know? and with 25,000 hackers, how do i know that all of these guys are good guys? >> that's a very good assumption you make there. they're not all good guys. but they're sharing information, so, you know, that's a positive thing because now we can make adjustments to how people defend their networks. >> do companies hire people like you to show them here is where we are vulnerable? you show them, here is where you're vulnerable and here is what you can do about it. that's what you do for a living, right? >> yes, how do you know if your security systems are working properly unless you hire someone to try to beat it, right? >> so somebody will hire you, come on, hack me. do it. do it to me and. >> yes. >> you do that? >> yes, exactly right. yeah. now, you can legally only do these things while you're under a contract to do those, put a disclaimer out there. . we don't want a 15-year-old kid listening to this going in and

hacking businesses and saying, hey, i can start a company doing this. you have to have a contract with your client that allows you to hack into them before you start doing this. >> look, we're laughing here, but cheering you on because a lot of us are real nervous about this kind of thing. what's the name of the company again? >> it's red tiger security. stuart: red tiger security. we appreciate you being with us, john. >> thanks for having me. >> all right, another unintended consequence of obama care. oh, yeah, this time it's going to cost $12 billion. my take on that is next. ♪ [ male announcer ] these days, a small business can save by sharing.

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>> now, here is a stock on a role recently. facebook above 38. the ipo price below it right now, but boy, has that thing gone up recently. next, mastercard, gdp, the economy really, really weak, but people are spending and that stock, mastercard up 20 bucks at a new high. president obama, he says the keystone pipeline would only

create 50 jobs. was there a hint of arrogance there? humor maybe? you can bet congressman upton is not happy about that, the chairman of the house energy committee. with us at 10:15. wait for it, a snack, an insect snack, crickets, yes, the insect. 10:45. meet the man betting big there is a market for crickets as a snack. i'm a tad skeptical. obama care takes another hit. this time there is a twist. here is my take on the penalties we will not be paying next year. here is the story. reports this morning that because a big part of obama care has been delayed, the government will lose 12 billion over ten years and that's one more item in a string of bad news items for the president's badly named affordable care act. that 12 billion dollars is money that the government will not take in from penalties.

who knew they were planning to get 100 million dollars a month from fines for not offering health insurance? i didn't know that. 100 million a month? that's just from businesses? i don't know whether to laugh or cry. i suppose we should be thankful that employers should not have to pony up that money, but that will have to be paid in 2015. go back a few years, was this the way that obama care was sold to us, were we told it would be forced into the plan by massive multi-billion dollar fines? no, we were told it would cut the cost of health care, we'd all be winners in the glorious world of socialized medicine. it's just so aemploying and depressing to see our health care system wrecked by the political plans of the left. we should have ready this before it was passed. we couldn't do that.

miss pelosi rammed in through. and roll her infamous sound bite, please. >> we have to pass the bill so you can find out what is in it away from the fog of the controversy. the boys used double miles from their capital one venture card

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government. obamacare strikes again. liz macdonald has the growing hit list. the share of the house energy committee is dead serious about it and he is here. detroit is bankrupt. do they pay him to be there? you will be the maker of an insect bar. he says it is environmentally friendly. ♪ stuart: first off, half-hour into the trading session did the dow jones is up. 15567. economic growth, i call it abysmal. charles.

charles: don: it is a bad number. 1% growth is bad. charles: it does prove that americans have always had an economy built to last. this is what it does on top of taxes, regulations and rhetoric from the white house. imagine if you let it go. stuart: let's get to the individual stocks. i am looking specifically at facebook. 37.79. it was well above 38. nicole: this is a day for the company and the pom-poms. levels. it is back to these

they are getting into publishing and gaming which hurts zynga. stuart: in front of 700 million daily users. i would have thought that would have been a nice shot in the arm for facebook. you have to tell me about energizer battery, as in the bunny. nicole: it has been declining over long-term. a lot of people are switching over to rechargeable batteries. that is number one. coupled with household names. ship razors, banana boat sunscreen, these are the things we have in our homes. also wet ones wipes.

stuart: i thought it was just a bunny. apparently not. thank you, nicole. in order to avoid obamacare, they have been moving workers to part-time. we are talking about union members. obama supporters. elizabeth macdonald is here. you have a list for us. >> pennsylvania, was carolina, utah, indiana, virginia, the states are dropping to part-time status. gym teachers, coaches, cafeteria workers, teachers aides, administrators.

it includes public works workers, parks and recreation, librarians, secretaries, nursing homes, city jails. stuart: that is a huge list. what gets me is these are government workers. these are government jobs. this is government saying we cannot afford full-time workers under obamacare. >> that is right. we are hearing from long island, for example, how teachers aides may be pushed onto health exchanges. that is another trend that we are seeing. the irony is that, i hate to say this because i know people in the media will say wait a second, they are saying they can't hit up the taxpayer for any more money. they will not raise more taxes.

they will cut out the workforce. what that means is less in the way of tax pension and health benefits. we have to make this move. stuart: a lot of people will be pushed onto these exchanges where their health insurance coverage will be heavily subsidized by the federal taxpayer. >> that is absolutely happening at the local school level. at a time where we have superintendents and school administrators making six figures. it is causing across the board budgets to be looked at once again. people are doing the math. these workforces, as you point out, are big backers of the administration.

it is cutting right into the backbone of the middle class. the teacher's union and another various number of unions have signed that. stuart: it is a very good story. another hit on obamacare. thank you very much, indeed. listen to this. >> keep on talking about this oil pipeline coming down from canada. it is estimated to create about 50 permanent jobs. that is not a job plan. wasting the country's time by taking something like 40 meaningless votes to repeal obamacare is not a job plan. [cheering] stuart: what? is that a joke? fifty jobs? 42,000 jobs.

congressman fred upton is here. he is a republican. welcome to the program. >> how are you doing? stuart: okay. look. i am laughing here. this is no joke. the president knows there is more than 50 jobs. >> is just makes no sense. you see today's news where he wants to raise middle taxes. this is a private sector job plan. this is 20-40,000 private sector jobs. it will help wean off our alliance with the middle east and venezuela. if you are looking for a better carbon footprint, is it not better to transport this oil called by the way, we also get

oil from canada, is it not better to put it in a pipeline that is more efficient than any other mode of transportation. stuart: if you are making a joke about how many jobs it will create, i cannot believe he is actually going to approve this thing. how can he back track? >> we have been waiting for almost 1800 days for this to be approved. we are in our fifth year now. we have millions of pipeline. he signed legislation last year that upgraded safety regulations for any new oil and gas pipelines.

there is no reason to say no. stuart: there is nothing you can do about it. i am pretty sure the five phone would be built, but there is nothing that you can do because the president will bypass you. >> ultimately, it is in his hands. the senate had a bipartisan vote. stuart: congressman fred upton. we appreciate you being with us, sir. come back again. thank you very much. >> you that. stuart: to the president corporate tax grab.

former manager director at bain capital. this man is a capitalist. he is with us now. here is the president suggestion. he will introduce a universal tax. if you make on the overseas profits overseas, even if you don't bring it back to america, we will tax that money. i read that as a real break in principle.hink republicans have proposed a five-6% tax. i think having those profits go back to the u.s. would be okay. stuart: a universal tax. >> a small, a very small one.

near trillion dollar deficits, use it to increase spending. heck no. that is a big mistake. charles: they will not bring money back and handed to the government. >> hopefully the public and recognize that there are two proposals here. a lot of money overseas. stuart: okay. we lower the corporate tax rate from 35% to 28%. do you think money will come back to america? >> if all we did was that, no, i do not excel.

we are already taxing corporate profits at those levels. you cannot put another 28% on top. a lot of high-tech companies have property and plays like ireland. they are paying that tax rate. they may be willing to pay, but they would not have to pay if they did not bring it back. the president proposal is quite sketchy. stuart: 35 down to 28%. there is no way he will say, oh,

okay, 15%. there is no way that he will say that. >> lowering it to 28 for-profits. it will have no effect whatsoever. stuart: i see this as a corporate tax money grab. >> i think it is true. reduce accelerated appreciation. if we increase taxes on business, it will increase government spending. that is a ridiculous proposal. stuart: i think we have agreed. [laughter] >> very complicated. stuart: the bottom line is, a tax increase. thank you very much, indeed. we are waiting, president obama, actually, is about to arrive on capitol hill. we have a live shot for you.

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stuart: moments ago president obama arrived on capitol hill. there are reports that he will bypass the legislative branch and do a pot of things for executive authority. charles, make us some money. charles: i have talked about it before. they make all kinds of equipment for drilling, fracking, all of this kind of stuff. everything you want. the stock is on a verge of breaking a new 52 week high. the problem is poor execution. i love the way the numbers look. i like the guidance.

i am looking for the stock to go significantly higher. the best-selling vehicle again. stuart: back to president obama as he saw moments ago. he arrived on capitol hill. let's ring in radio talkshow host. you do not mind being announced as a liberal, do you?

>> i do not really like labels, but go for it. stuart: the economy is not doing well. expanding at a 1% pace. for years at the end of the recession. the president is blaming phony scandals. i am running out of patience here. so are a lot of our viewers. we want prosperity. we are not seeing it from this president. what is your answer? >> i am so glad you are bringing this topic up right now. this is our founding fathers worst nightmare. all of us have contributed to this. we made this reality. we are stuck in this, you know, complete find here. the biggest concern was that our

country -- nothing can get done. here we are. stuart: wait, wait, wait. if we did what the president wants to do, if he got his way, the republicans walk away, he gets his way, his way is spend more money. we have been doing it for four years. we have not returned to growth and prosperity. why would you want to keep on doing what has already failed? >> first of all, the president cannot appropriate money. they are talking about the key things. four out of five americans are struggling with either unemployment or poverty.

you know what, we tried that. obama has tried and came out of that recession. he is the president of the united states whether you like it or not for the rest of his term. stuart: i am just saying his policy has failed. all government all the time. it has not worked. >> it is just inaccurate. a lot of people said let the audio industry go bankrupt. i just heard you talking about the f1 50 being the greatest car in detroit. we came back from the brink of the worst -- stuart: nancy, i am almost out of time. are you telling me that if we spend more money and we tax

corporations, you think, are you telling me that we will return to prosperity? are you telling me that? >> you know what i am saying, if the president was elected on those policies, that has worked. the end of liberty. that is what they said it would be if we continue to fight this way. we have to end it. stuart: nancy, liberal, thank you very much, indeed. come out and see us. i know you are in detroit. the dow is up 55. facebook is still a little bit shy of 38. facebook has been on a roll. you would not believe who is

saying made illegal immigrants right now. the judge on this story next. ♪ in today's markets, a lot can ppen in a second. with fidelity's guaranteed one-second trade execution, we route your ordeder to up to 75 market centers to look for the best possible price -- maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account.

stuart: markets going up 77 points close to 15-6. mastercard that a new high. we must be spending on plastic. nicole: everyone is spending. that is the theme for these credit card companies. mastercard up 2.7% hitting all-time highs. the global economy, i heard you, i am listening, i hear you and that is what we are seeing is not warmly mastercard but visa and other bank cards noted the less spending more and here is the number. $734 billion was spent on mastercard in the latest quarter. stuart: what you heard was a little conversation between charles and i, he was saying it is a globe poll economy, people

spending all over the world, that is why -- charles: asia pacific 21%, you're a 14%, latin america 17%. everyone in canada -- stuart: spending on mastercard. around the world. maybe got a better product than visa or american express or discover. it is not tte most of a global economy that is booming because they are not. it is the growth of mastercard. stuart: charles: is growing at a faster rate than in america. printing cash. stuart: the judge is here. sort of jumped in early. let me introduce him properly. republican donors sending a letter to gop lawmakers urging them to act on immigration reform. their argument, the current system allows illegals to stay.

it only makes sense to register them and bring them into the fold. he is here. all rise, judge andrew napolitano is here. hy want to look at the legal and constitutional arguments here. karl rove and others are saying they are here, legalized them. go for immigration reform. any problem with that? judge napolitano: yes and no. strictly speaking the constitution, the congress has the authority to open borders and let anybody in and has the authority to build a wall around the borders, constitutionally and legally. one could argue we have natural rights the congress has to respect, the argument about colleagues in this building and the wall street journal that just ask someone like yourself could go from london to scotland you could go from london to chicago. it is none of the government's business. that of course which seems to be the argument of the karl rove folks would put tremendous

pressure on the social welfare system. we didn't have the social welfare system i think we would welcome foreigners more so because it would enrich the of the -- economy and the rich culture and save them from the place where they came. charles: we do welcome foreigners if you will. this is an issue about us being the will to control how they came into the country more than anything else. judge napolitano: if my rights are from my humanity and it doesn't matter where my mother was when i was born, why does the government has power to control -- charles: got to keep citizens safe. unfortunately human beings have a habit of hurting each other and then checked borders is a recipe for disaster. judge napolitano: there is less crime committed by illegals -- charles: i am just saying. judge napolitano: karl rove's are vehement is interesting and worth discussing, will these people made lawful by acts of

republican politicians, automatically vote republican. i don't think that is necessarily -- that is the argument of these donors. make these people legal, they will say, take credit for making them legal and they will reward you at the ballot box. d-backs that that argument? stuart: i don't exit that argument. i am interested in the fact they cannot be refused any or all government services. judge napolitano: the supreme court has ruled on that. the state of texas in the mid 70s, an active legislation saying the children of illegal immigrants can't go to schools, or to emergency rooms. the federal judge threw it out and said if you make basic social services available to society you cannot distinguish on the basis of place of birth. stuart: they must be serve in an emergency room and have health services, must be educated, go to public school, every right to do that. food stamps, got a right to

that? judge napolitano: it does not subsume or address food stamps but if a person were below the poverty level and starting the federal government would have the idea big -- the obligation for that. stuart: i am starving, boys, feed me. judge napolitano: we are talking illegal, irrelevant -- stuart: separate question. food stamps, got to have it. earned income tax credit. judge napolitano: food stamps -- stuart: i want to know what people get. earned income tax credit. judge napolitano: illegal qualify for earned income tax credit income taxes. except the court has not ruled on that. the supreme court has generally said what benefits you make available to citizens you cannot deny to non-citizens even if their status is illegal so long as they're not committing another independent crime. stuart: you are an open borders

guy. you are wildly unpopular. judge napolitano: my view is wildly unpopular. stuart: we will see on our facebook page. judge napolitano: i will hear about it today. stuart: judge andrew napolitano, libertarian. judge napolitano: and popular. stuart: you are a favorite and we know it. wait a second. look at the big board, we call this a break out. i am going to call a continuing rally, 15-6 for the dow up 90 points. look at that. charles: market upon good mediocre news. stuart: good mediocre news. i call it rotten news on the economy. ben is going to keep printing. charles: not if we keep beating the estimates. stuart: you stand out of this. judge napolitano: welcome back to princeton. charles: we have an open borders. come on back. stuart: our next guest, look at this. our next guest opened the business in detroit.

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listed for $900. one company decided to start in the business. the business is called china that makes american made watches. and the devastation of the joint. we have with us messy e o of the parent company joins us right now. we are discussing your company doing business, manufacturing in the middle of bankrupt detroit. of you being paid to be there? >> absolutely not. we began this work, visited the julie kanfer fell in love with the city and all the business people we met, fantastic people and asked how they could help us and began the journey. don: stuart: i have to believe that

the rent was minimal if not free. is it? >> we are in the college for creative studies, a fantastic facility. never looked at the fort from an expense standpoint. we get no government subsidies at all. stuart: you get a look at the break or the taxes? i'm not looking to score points at your expense, just figure out the economics of doing business in a bankrupt city. dep a minimal rent or do you pay taxes? the same taxes as anybody else? what do you pay? >> the same taxes anybody else pays and our business model wasn't predicated on receiving any benefits or discounts so we are proud to be in detroit and happy to be here. stuart: you make watches in the $900 range. >> absolutely.

we assemble the movements in the fort and assemble be whates there. stuart: what is your progress over the last 2-1/2 years? >> fantastic progress. we are proud to call it home and set up a factory that has capacity to make 500 units a year. we began manufacturing and dissembling bicycles in detroit as well. stuart: what is it like doing business in a place that is bankrupt? when we see video of the middle of detroit it looks flat out that the station. what is it like doing business there? >> we haven't funded to be more difficult than doing business anywhere else. we have enjoyed being there and there's a giant creative arts movement that we wanted to tap into that energy and be a part of and we found that to be helpful in moving a business forward. stuart: you plan to expand? >> the plans we have, a factory

to make 500 units a year, have the capacity to expand that factory to make a million units a year once the demand is there. stuart: thanks for being with ps. we appreciate it. sorry we are out of time. interesting subject, thanks very much indeed. i know you wanted to get into this. charles: they have been marketing this made in detroit pretty proudly, wonder if that is making a difference, will it resonate? they will open a flag should store and i will go down and talk to them and see in new york city. stuart: that company will have a flag should store selling of those watches. charles: i want to see it makes a difference between people who support an american company making a shot at a bankrupt city as opposed to buying this watch. stuart: thank you. how hungry are you? would you eat and energy barmaid with crickets? as in the insect? you are going to hear them. would you eat them? that is next.

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morning from the adp the private sector employment, 2 and did thousand jobs in july, biggest job gains with professional and business services, construction, 22,000 jobs, manufacturing down 5,000. hawaii hoping to take the burden off of its welfare system by offering one way plane tickets to 17,000 homeless people to anywhere in the united states, hawaii, 100,004 three a trial run, returned home program. get ready. crickets and a protein bar.

stuart: would you eat cricket's as in the insect for your daily dose of protein? insects convert grass and green to protein as much as ten times more effectively and cows and pigs according to pat crowley. he joins us now, founder of the company that introduced the first ever cricket energy bar. welcome to the program. good to see you. >> thanks for having me. stuart: i know it is environmentally friendly, i got that. i want some numbers from you. how many cricket bars have you sold so far? >> we are in the 40,000 range at this point. stuart: they have only just been introduced. >> less than a year old. stuart: has got to be a tough sell in the united states of america, isn't it? >> yes. we did start a product there

wasn't a consumer demand f the time that the demand is growing rapidly especially receiving a lot more interest globally and in the united states as well in most recent months especially. stuart: you are marketing it as a good source of protein, environmentally very friendly. that is your marketing approach. how much do you charge for a cricket bark? >> they are in a $3 range depending on where in the country you are buying them but approximately $3 for a healthy product for organic ingredients other than insects, very nutritious product all-around. stuart: when a new food comes on the market and somebody tasted and they say tastes like chicken, alligator and everything else, what does cricket taste like? not being funny, just need to know. >> it is an earthy case, similar to sunflowerseed is probably the closest related case i would say you are familiar with.

stuart: are cricket's chewy? >> no. we bake them so they are dry. we make the flour out of them. specifically to address the cultural perception of eating insects, trying to make it easier to take a first step so you don't have to see the insects. it is a powder form extend. stuart: i am not joking. i wouldn't mind eating the a cricket ball. i have been my fair share of insects. i used to live in asia. can we rely upon you to send us some? i will do a taste test on television. would you do that? >> you bet. absolutely. stuart: best advertising you ever had in your life. it really is. i will eat it. thank you very much. i know is environmentally friendly, interesting product, good luck. >> thank you, look forward to seeing you review our product. stuart: i bet you do.

wait a minute. the dow jones average is up some more, 90 points hour, was up over hundred. the weak economy making then print money, stay out of this. more baseball suspensions expected today. top of the list, a rod. could he be banned for like? that would cost him a ton of money. back with the story in a moment.

stuart: with the dow jones average up 100 points charles will make us money and technology. charles: semiconductor, revolutionary things with gallium nitride will will take over for silicon making shore more's law continuous, take an amplifier to make three times smaller and three times faster, major breakout on the cusp of the next wave of ten logger term, at least $14. stuart: that is gee whiz technology company replacing silicon with something else. night fraud, you like it, you'll love it. charles: it will be a big winner. stuart: we will check out. major-league baseball giving a more suspensions, performance enhancing cheaters. alex rodriguez, if he is suspended for the rest of this year and next year he would

still be able to collect $60 million in later seasons. if he is suspended for life none of it. he loses $100 million. he is quoted in the current issue of sports of the traded saying he still wants to be a role model for his children. you want to pass judgment on a rod? charles: i don't see how he is going to be the role model he says he wants to be. this is a two time offender in the human growth hormone in europe. if he hangs on a couple more years the next way of cheating will be will dabble in that as well. in that regard it is too late. he will give some money and advice but certainly as far as being a good role model -- stuart: i think the steroid scandal is really hurting baseball. there with the induction ceremony at coopersaccount the other day, minuscule crowd, no current player inducted into the hall of fame, no big names attended. the crowd was around 7,000

compared to 50, 60, 70,000 they normally get. i think baseball is hurting. charles: do they grin and bear it or set up a steroid wing? stuart: who knows? all records -- thanks. charles: they will get over it. stuart: when your take on my take coming up next. [ male an- you're having triplets. [ babies crying ] surprise -- your house was built on an ancient burial ground. [ ghosts moaning ] surprise -- your car needs a new transmission. [ coyote howls ] how about no more surprises? now you can get all the online trading tools you need without any surprise fees. ♪ it's not rocket science. it's just common sense. from td ameritrade. like carpools... polly wants to know if we can pick her up. yeah, we can make room. yeah. [ male announcer ] ...office space. yes, we're loving this communal seating. it's great.

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stuart: earlier, you heard my take on the president's affordable care act. time for your take. it is plain and simple, tyranny and we the people should not accept it. sandra says this legislation will end up destroying the country. what do you say charles? charles: it is all government control. maybe the plan is working as

planned. stuart: back door socialized medicine. push you out of the private sector. push you onto a government supported that there. charles: one of the riders said how expensive will this be, ultimately? you had an obligation. did you put this new entitlement in there. providing health care for the majority of america. it is just not. it will not work. stuart: you have local governments all around the country hiring part-timers. not full timers, part-timers. huge escalation in the cost of

providing health insurance and coverage it is a tough thing. stuart: very successful. he has done what he said he would do. charles: fundamentally, change america update time. stuart: at 6:00 a.m. eastern time, i stand in our newsroom and deliver a very brief video. i detail what we will be doing on the show later on today. we are heavy on opinion. i do urge you to check it out. offer some comments of your own. time for connell. connell: i like that.

i will go back on your facebook page and check it out later today. you made a terrific transition. tv style commercials on your facebook page. what do you think of that? it could be a big moneymaker for the company. america's most popular truck now coming with a natural gas option. that is an interesting story. investors buying into chemical companies. the latest example. here is liz claman. she talked with dow chemical ceo. that interview is coming up. jim rogers is here also. all that and more this hour on "markets now." ♪