that's all right ♪ ♪ anything you know i can learn to live without ♪ ♪ as long as i'm with you, till the sun stops burning ♪ ♪ i'm with you till this world stops turning ♪ ♪ till the end of time, oh, i'm with you ♪ ♪ imus in the morning ♪ >> the president says we have a solid base of recovery from the rubble of recession. he will repeat that claim today. good morning, everyone, these are campaign style speeches in front of friendly audiences. mr. obama claims middle class progress. but the facts contradict the

claims, on income, jobs, on health care costs. the middle class is losing ground and the pace of decline is speeding up. we have a full report. and on obamacare, the list of local governments switching to part-time workers is growing. and there are 38 days till those chaotic insurance exchanges. what on earth is going on at the nasdaq stock exchange. was the three-hour freeze just another computer glitch? steve ballmer out at microsoft and the stock takes off. ooh. "varney & company" is about to begin. you know throughout history,

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>> friday morning and breaking news for you, just crossing the wire. microsoft's chief steve ballmer will retire in the next few months until a successor is named. the stock is straight up. a gain of roughly three bucks a share right at the opening bell. here is comes. now, please listen to this from president obama, cleared the

rubble, he says. >> thanks to the grit and resilience of the american people, we've been able to clear away the rubble of the financial crisis and start laying the foundation for a better economy. >> you heard it, cleared the rubble, laying the foundation for recovery, really? let's check the facts, please. three numbers for you that aren't lines. 54% of paychecks add up to less than $30,000 a year in this country and that's a dismal number on income and spending power. median income falling. next number, 8 million, that's the number of adults who have stopped looking for work altogether. the highest ever in any four-year period. people are giving up hope in the obama economy. n of handouts, really needs a job. the number of people signing up for food stamps increased by an average of 11,000 per day throughout the obama years. remember? record number of people on food stamps, 23 million households, one out of every five. and then we've got google, screaming live nfl games on

youtube. you heard it here first on "varney & company" and next, we have the guest who made the call. the battle between the traditional retailers and on-line shopping are brick and mortar stores really making a comeback? we're going to deal with that next. my mantra? always go the extra mile. to treat my low testosterone, i did my research.

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♪ ♪ on my harley davidson ♪ >> that's a harley davidson. it's outside on the street, the newest one available just came out. it's not even on sale yet. i'm going to make that thing roar. i'm going outside in just one moment. all right. and a minute from the opening bell, come in from chicago, scott shellady. all right, the fed's lockhart just told our own peter barnes, don't rule out september for a taper. your reaction to that? >> well, i think the fed's painted themselves in a corner they couldn't get out of easily. so the bond market is going to push the interest rates to the 3% level. we're at a critical 10-year level at 12402. if they break through, 3%, we're in the position that we're going to raise rates as the economy is not doing well at all. we're in for a bumpy next quarter. >> interesting forecast, scott

shellady. we'll see you next week. all right. coming up for the opening bell, the opening of trading this friday morning and we're going to have a nice jump in the price of microsoft stock. please remember, everybody, i own that stock and it's probably going to go up between 2.80 and $3 per share and if that's the case, adds over 20 points to the dow jones industrial average so in the early going, yes, we're seeing an upside move for the dow. 20 points up, still shy, but only just shy of 15,000. let's get to nicole. microsoft, the news is, ballmer out within 12 months and the stock, i think, is going straight up, nicole? >> the stock is going straight up. let's take a look, it was up 8% in the pre-market. 8.2% and that's almost 3 bucks which would be roughly 23 dow points. microsoft, there's an interesting memo from ballmer to the gang over there at microsoft. talking how much he loves microsoft and loves the company. proud of what they've achieved. and it was believed that he would retire somewhere between

this reorganization as they build momentum in tablets and smart phones. >> okay, nicole, it's just breaking, but we've got our own tech guru hurrying on to the set and clayton morris. clayton, the announcements made and steve ballmer long time leader of microsoft on the way out. the stock goes straight up. is that a judgment that ballmer wasn't very good? >> yes, misdirection from microsoft on a regular basis. for years the common refrain, why is ballmer still there, leading the ship. this new direction that he talks about in his memo to employees on his way out, saying this transition to a products, devices and services business. now, microsoft of course making that transition away from software. stuart: that's what he do. >> devices. stuart: that's what he did. hard tangible things, tablets pnd phones, and he switched to that and away from pure software. are we saying that that was a mistake. >> no, we're saying that that might be the right direction,

but it's been a botched direction. look at the sales of windows surface tablets, plummeting and people not buying these things. few people really interested in going out there. you see this excitement around the windows surface tablets? not at all. not exactly a ringing endorsement from bill gates either. stuart: who is big enough to fill his shoes. any names come to mind. >> there would have been someone i would have thought was at the top of the list, steven sinosski. but he's not there. you're starting to see it with google moving into the devices space and it was a services business. they're realizing they need to own the eco system and microsoft says we're just going to make the software, hp, lenovo, you make the devices and we're staying out of that business. they've waited too long and way behind. stuart: big impact. the stock up 2.75. >> salt in the wound. stuart: salt in the wound. clayton, thank you, appreciate you scrambling in here.

>> absolutely. stuart: more headlines in tech. remember? everybody knows about it, the flash freeze yesterday on the nasdaq. it's open for business this morning and no problem there. check two big names that trade on that electronic exchange. cisco is down this morning, 23.95 and apple widely held stock trading, i'm going to say normally slightly lower, at $502 a share. now, remember this, everybody knows about it, the nasdaq is the nation's second largest stock exchange. this is not the first time that an electronic problem occurred. liz claman is with us now. she joins us from the nasdaq. now, liz, the concern is, and everybody's telling me that, the concern is that the nasdaq was hacked and if that's the case, somebody out there knows how to screw up america's financial system. what do you know about this? >> it was our first question to ceo bob greifeld this morning, down on that floor right behind me. i said, i don't care about the technical issues and the

discussions of the moment. was there any sign of hacking? he said absolutely not. any espionage? absolutely not. it doesn't mean it couldn't happen in the future, stuart. we have seen this happen at the wall street journal, new york times, some other financial institutions like big banks, but this, in essence, was a breakdown of one of the technical systems called a security information processor and that, in essence, is a system that dissemnates price information to some 13 other exchanges out there and 40 so-called dark pools, smaller, lesser traded, less liquid exchanges, but the issue becomes for the nasdaq, what about the faith in the nasdaq? everybody's wondering about the twitter ipo. we asked them about that, saying how do you make sure that you still lure that business? he says we're still one the big electronic exchange. i asked in the end as i pass it back to you, will you be investing more to fix the system problems? he said no he, we don't need to do that. that to us a stunning, much more throughout the day on fox

business. stuart: you're right, liz, now, that's a stunner indeed. because my goodness me. liz, thank you very much indeed for being right there. we appreciate it that. thank you. now to google, in talks with the nfl to broad football games on youtube. john layfield called this one. if you listen to him you would have made some money, i believe. this is going to happen, isn't it? to me, ins a big deal. live football games on youtube that i can watch just about anywhere, i think, if i've got the right kind of phone. tell me, this must be a big moneymaker for google. got to be. >> yeah, i think it will be a major for google tv. and one for youtube. chad hurley just came out, the founder of youtube and said sports is a big part of their future. i really believe that google has to do something the same way that fox sports did with nfl, major league baseball. people think they overbid for

the products and it turned out the best thing they could do. the nfl has 9 billion a year plus, more than any other league in the world right now, and he's looking at taking that live ticket, the nfl ticket worth about a billion dollars a year, that right now directv has and marketing that. google has just hopped into the fray. i don't know if roger goodell is doing this to get more money out of the direct ticket or if google is going to win it this round. i think that google will eventually win it. stuart: it's a victory lap for you and because you did call this. >> i think this is a natural progression, stuart and i think this is where everything ends up going, it's just a matter of time before it gets there. stuart: why are you in jackson hole, wyoming with the grand tetons ben is not there. janet yellen is not there. larry summers-- what are you doing there? >> ben bernanke is not here. somebody's got to represent the every man and i'm sitting in

peter barnes' chair and feeling confident there. stuart: a great interview with mr. lockhart. >> to answer the question i'm with my wife meredith whitney and i know some of these people got to meet with the kansas city fed people. and we talk about google, what they did in kansas city about the hundred megabyte line and tech in kansas city. and i'm here as governor palin's husband. stuart: don't downgrade yourself. john, have a good time in the tetons. >> always great to talk to you, sir. stuart: the new samsung phone, 6.3 inches screen, you can't fit that in your pocket. we've got one on the set and our tech watcher is calling this thing quote, preposterous. you can check it out with us about 10:00 this morning eastern. bed, bath and beyond, bucking the trend and beating amazon in

some areas on prices. come on in, bruce turkel. our branding guy. and i think it's bad news for amazon, isn't it? >> well, amazon isn't worried about what bed, bath and beyond does price-wise or today or tomorrow. they have enough ways of making money that being a low price on everything, doesn't necessarily have to be their way. however, an it does, it points the pricing perception problem. people naturally assume that amazon is cheaper, but it's not always true. >> yeah, i mean, doesn't that detract from their brand? because you're quite right. i mean, look, even i can shop amazon because it's very simple, and i always think i'm going to beat everybody else on price. i would have thought that if that's not the case, certainly not the case, according to bed, bath and beyond. then that brand diminishes a little for me shopping on amazon. you don't think so? >> i think so.

what happens, bed, bath and beyond, if they can change that perception, they can bring up the other perceptions why people shop and bricks and mortar. they like to shop together and if they had things like signs that say free delivery to your car they can remind people they get instant gratification and that amazon pays for shipping. and they can take advantage if they chip at the wall that amazon put up. >> and just a moment ago we had liz claman who interviewed the top guy at the nasdaq. after the flash freeze of yesterday said no, we're not spending a lot more money on security and computers, no, we're not going to do that. i suspect that that brand, nasdaq, wall street, stock, the whole brand, wall street, has just taken a huge hit. what say you? >> i think you're absolutely right. stuart. the problem is, the average american doesn't understand two things. they don't understand the

financial markets, they don't understanding wall street. and they don't understand cyber security. they can't get into their own sites with their own pass words and can't figure out how people hack in and hack out. they get none of it. we put two things together. we don't like or understand wall street and don't like or understand cyber security and you show wall street has that problem and you're right they just took a big, big pit hit. we are neot going to worry abou it. stuart: i think the administration is going to pound wall street more, and in in case, i think they're right. thank you. >> thank you. stuart: to the big board, we're up 23 points and a lot of of that is because of the gain in microsoft. not all of it, but some of it and we're back pretty close to 15,000. here is what we've got next. they're getting me out of this chair again and they can go outside. why? a motorbike. not just any old bike. the newest harley davidson

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>> good morning, everyone, i am outside and i am going to introduce to you the street glide. 2014, you are looking at it right now. and this gentleman, keith wendell. is going to sell me this thing. >> am i going to sell to you?

>>' going to sell it to everybody on the street here. stuart: how much? >> 20,000 roughly. stuart: not roughly, how much? >> well, just, it varies by the number of options. stuart: how much is this one? >> it's about $21,000. stuart: $21,000. okay, what's special? >> this year, in the 2014, we introduced on our touring bikes, what we call project rush more. there's over a hundred changes that have been made to our touring bikes. we have the voice activated gps system which is first in the industry. stuart: wait a second, wait a second. voice activated what system? >> gps. >> this is a 4.5 inch screen and we have a larger screen as well and introduced precision liquid cooling. stuart: hold on a second, i want you to start this thing for me. >> okay. stuart: hold on a second, i want to test it. >> you want to roar the throttle.

stuart: i want to roar the throttle. what you're selling is the american male. >> the look, sound and feel of a harley, 110 years. stuart: i used to own a triumph 650 so i want to compare the roar to my old bike, okay? hold on [revving motor] >> not bad, not bad. okay. now, how many of these are you going to sell? >> well, of the street glide probably roughly 20,000, 30,000. stuart: 20 or 30,000. >> for one selling bike in our lineup, this bike here. stuart: and this is the brand. >> this is the bike. 2014. stuart: if i buy it for 21 grand, do you finance it? >> we do. we do provide retail financing through our harley david financial services. stuart: okay. i wish you the best of luck. it's about as good as my triumph bonneville from 45 years ago, about as good. >> it's a lot better.

stuart: nice selling job though, sir, we appreciate you bringing it by for us. >> thank you. stuart: all right, everybody, we'll be back with my take in one minute.

>> here it is. the friday morning gold report. we're at 1372. hardly any movement. governor mike huckabee is here

at the top of the hour. he weighs in on the economy, obamacare and what's going on in egypt and syria, with christians and children being gassed. he is fired up. we also have the giant new samsung phone. look how big the screen is. would you buy a phone that doesn't fit in your pocket? and then we have mo bridges, the 11-year-old who has his own bow tie business and back to tell us if august should be a month off for kids or if they should be back at work and school. here is my take on one direction. surprised you, didn't i? you thought that a guy like me couldn't possibly know beans about a british boy band where every single member, i believe, is under 21. oh, how wrong you can be. i have young daughters. do you think i'm ignorant about this new sensation from across the pond? so, here is why one direction is the subject of my take.

when i came into work this morning in manhattan at 4 a.m., the streets wepacked with youngsters, felt like the 60's with the arrival of the beatles. camping out in rockefeller square. so why don't college grads line up for jobs or teenagers knock on the door to mow the lawn or walk the dog? i'd like to see the same enthusiasm for work that i see for a boy band. hold on. i may be beginning to sound like that crusty old guy down the street who says get off my lawn. there is another side to the story. why shouldn't youngsters take august off and take time out for pure distraction? really, why shouldn't they? i've argued on this program for a traditional august where work and study take a back seat to plain old fun and relaxation, so a trip to the big city to see very popular entertainers is fun

and it's fine. all right. which side of the fence do i come down on, get out and work and go have fun. i'll tell you, go out and have fun. youngsters should enjoy august. i don't want to be the grinch who stole summer. in fact, i'm actually may download new direction songs to my ipod today if my daughters show me how to do it. ry clean, we replaced people with a machine. what? customers didn't like it. so why do banks do it? hello? hello?! if your bank doesn't let you talk to a real person 24/7, you need an ally. hello? ally bank. your money needs an ally. ask me what it's like to get your best night's sleep every night. [announcer] why not talk to someone who's sleeping on the most highly recommended d in america?

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welcome to the second hour and there's a hard edge to the news this morning, christians butchered, children bath, where is the president, why is the middle class in america getting shredded? mike huckabee has a lot to say about all that. do you think you get a fair shake from wall street when your money is locked up in a freeze crash? charles dean is here and so is the top guy at the largest online help exchange and a land. he is making money from obamacare. we have samsung, a gigantic phone and then there's the bows tied tycoon, very young, getting rich and guess what? he agrees with me. that is why he is here. right off the bat to peter barnes in jackson hole, wyoming.

you have deadline from atlanta fed president dennis lockhart. tell me what he said. >> that is right. it was on when the fed should start considering it quantitative easing and he said he would not rule out the fed's september meeting. take a listen. >> the outlook that i have in mind, that the economy will improve a little bit in the second half, continue on this moderate growth path, deflationary numbers will begin to edge toward our target of 2% and move up gradually, unemployment will come down, the jobs picture will continue to produce net jobs of 175-200 herman. if that outlook holds, then i think we can consider beginning

to wean the economy from quantitative easing. >> he didn't give me a number, 10 or twenty billion, or anything like that, but the significance of this is if the fed decides to do this it will be the beginning of the end of all of this stimulus, this quantitative easing, trillions of dollars the fed has pumped into the economy when the financial crisis began. stuart: it may be the time it all starts winding down. let's go to nicole petallides, steve ballmer, leaving microsoft. i believe the stock is going straight up. >> 35, 20 years, great performer, analysts are interesting, come c supplies, some say windows is terrible, some say they thought he would have stayed longer because he instituted a big turnaround with

expansion in smart phones and tablets but the stock is telling you the story and it is up 7% and industrials. stuart: charles payne is here and you always said if an unpopular ceo leaves the stock goes up. charles: a big stock is gigantic, this is not a speed bump, this is the tanker, the biggest stock in the world making a u-turn. and under a fair amount of pressure and i said many times we both talked about the fact the ones steve ballmer leaves the stock would go up, 7% or 8% is huge and nicole petallides talked about the recent share price coming in january of 2000 stock was in the 40s, $40 rate down and then abrasive person and no innovation. stuart: i have got to talk about new home sales. new home sales down 13.4% month

over month, new home sales, that is a big loss and made a difference to the market, dow industrials up a little bit before the number came out, now we are down 13 points and heading lower. home-building stocks are all down a couple of percentage points. any comments coming into this? is this something to do with lower mortgage rates? charles: it has got to be that and the other thing is the baton in housing has not shifted from investors to main street. main street is not taking the bait on buying houses, using their credit cards, simply not taking the bait. >> with mainstream not taking the bait and employment is so horrendous. charles: wages are going down. stuart: part-time work does not pay. >> median income down. stuart: unless you fix the unemployment and the employment situation you don't really get a fix on housing, do you?

13% drop is a big one, totally unexpected. we are going to listen to president obama who yesterday was touting the country's economic recovery. >> there is good news thanks to the grit and resilience of the american people. we have been able to clear away the rubble of financial crisis and start laying the foundation for a better economy. stuart: cleared away the rubble. we are going up from here. i have a couple checks to consider. 50% of paychecks in america at up to less than $30,000 a year, 54%. eight million unemployed adults have given up looking for work, they dropped out, they're not the jobs they want. the number of people on food stamps at a record high, come down from the record high but we have twenty-three million people, households i should say, getting that government benefits and that number has increased by

an average of 11,000 every day during the obama years. where is the economic recovery president is talking about? mike huckabee is here. where is it? >> it is not here. he invent this stuff. median household income is down $3,400 since 2007. that is household income. the middle class and he is talking how great they are doing, they have $3,500 less. it would be like asking a family to go write a check for $3,500 and just throw it away. they can't do that. the river is like giving them $3,500. do you think a middle-class family earning $75,000 a year could use $35,000 to damascus and see. ask if they're swimming in great thing these days because they are not. stuart: how do we present a true picture here? the president says we are in recovery mode. we come out of the rubble of that recession. we are recovery, we are expanding.

the stock market doing fine. how do we get the true message across that we are not doing just fine? america's middle-class is shrinking, how do you get the message across? >> reporters to cover the president don't ask him a follow-up question. they let him make those statements and sit back and feel the tingle going up their legs. instead of putting a tingle up his leg and asking where do you come up with this stuff? how come the new home prices, new home sales are down? come the median income is down? how come utility costs, education costs, health care costs are up, people's wages are flat or declining because of lot of people go to part-time jobs that used to have full-time jobs, they have no benefits and that is the gut punch to a lot of folks. stuart: when you're very critical about this. >> we heard this line from the president last five years, it is getting better, we turned the corner and the evidence doesn't support that. i go one step further and say for the far left which includes barack obama, he is their leader, this is a rousing success because their objective is to grow government as fast

and as widespread as possible in order to grow dependency on government as fast and as widespread as possible. those food stamps, social welfare, record numbers of people on these programs, that is all a success to them. we don't want to see that angle but this is what the president keeps saying we are turning a corner, because it is hitting the far left objective. stuart: do you think this is deliberate? >> i think it is closeness. i don't think he set out and says i am going to destroy america. i think if you have a person who has never managed anything in his life ever, not even a hot dog stand on sixth avenue is hard to put person in the chief executive slot of the most important job in the world and expect that he is going to understand how to lead in executive management. stuart: i want to get back to nicole petallides on the floor of the stock exchange with more on this 13% decline in new-home sales. i said earlier it was hitting the home builders.

how badly? nicole: many home builders that down 2% and 3%, that is is the biggest myths we have seen in three years, pulte group down almost 4% so they are accelerating, gazing down 4-1/4% so these numbers are real disappointment. stuart: mike huckabee still with us and i want his response to this. the left-leaning washington post is reporting something we have been saying for a long time, local governments are cutting employee hours to avoid obamacare penalties. remember when the president said this? bernard: >> if you like your doctor you will be able to keep your dr. period. no matter what you have heard, if you like your doctor or your health care plan you can keep it. stuart: looks more and more like that is not the case. mike huckabee still here, a special on obamacare this weekend on fox news. >> the president has been saying no republicans have many alternatives or options, that is simply not true. this weekend we are going to do

is spend the entire time on common-sense solutions, things that will work, things that have worked, what are the options that could address health care in this country but do it responsibly? i would urge the president to watch because obviously he is not aware that there are very significant options that are much better than what he has put which is a great big government foisted insurance program that doesn't change healthcare, it changes insurance and doesn't do it very well. stuart: give me toward reform, get the lawyers out and get the markets in. that is what i have got is a. you are going to spell this out on your special which is saturday and sunday. >> 8:00 eastern. stuart: one more. this is serious stuff. outrage. egyptian, let's talk about this. the butchery of christians in the middle east and the gassing of children. men, women and children in

syria. a lot of comments when we addressed this subject, listen to this. one of our viewers and if we don't fight back now then we can tell our kids and grandkids we sat back and watched it happen. this is from elizabeth. we are sliding backwards instead of progressing. i am scared for my children's future. president obama looking for the country's economic recovery ignoring in my opinion what is going on in the middle east. i am particularly outraged at the butchery of christians. where is the president? >> he is saying officially the u.s. doesn't take a side in this conflict but we need to take a side. we did before. we ordered hosni mubarak to step down and that gave way for the muslim brotherhood. a murderous bunch of thugs. they always have been and they are the ones who have been killing christians, burning churches, killing women and slaughtering secular -- charles: this is something i am

telling you, talk about the media being complicitous looking the other way. helping to oust muammar gaddafi, the president made the grand speech, never letting dictators slaughter his own people. over 100,000 in syria, i don't understand how he gets a free pass. there is nothing but dictator slotting your own people. >> winners your foreign policy at the breast of the united nations you get this idea that if somebody does something atrocious you will send the letter and if you keep doing it you will send a strongly worded letter and if they don't stop and you will send them a very strongly worded letter in your going to underline all the big words. that is how useless the un and foreign policy has become, nobody fears us, nobody respects us, nobody understands us. >> the rationale for intervening in libya where there was no

slaughter happening yet, once the responsibility to protect, samantha power is is a u.n. ambassador, that was her philosophy. responsibility to project to protect christians and the middle east. >> i don't feel there is any. we have not said anything. and the irony is the other arab nations in the gulf states, whether it is the saudis or poured money into the egyptian military and the only stabilizing force in egypt. they're doing more to protect christians in egypt than christians in america are doing. go figure. stuart: i don't want to see america's military invade. >> they don't have to. stuart: i want our presidents to lead. he is not leading. last word. >> doesn't explicitly understand the muslim brotherhood, bad

actors, they always have been a won't reform them. they are the cradle of al qaeda. philosophically, religious, that is where al qaeda's philosophical origins came through. stuart: thank you for telling us how it is. i will be watching your special saturday and sunday night. stuart: the galaxy mega. they are calling point tablet. can't even fit in your pocket. is it a phone or a tablet. you want to make a call on something that big? jihad whoo- [ male announcer ] imagine this cute blob is metamucil.

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stuart: this is not a stock alerts, this is the stock of the day, this is microsoft. iphone some of that. steve ballmer is getting out of the chief executive within 12 months and look at it go, 7% on microsoft. was higher than that. look at home builders, they are down big. bad read on new home sales at the top of the power down 13%

month over month and down they go coming back a fraction but still weighed down. now this. samsung's new galaxy mega smart phone also known as the tablet its selected stores today. jeremy kaplan is here. he has been checking this out. he has been holding it in his hands as we speak. it is not a phone. >> almost obscene. it looks ridiculous. to use as a phone, it is simply silly. i showed a bunch of people this yesterday and they all laughed at me. stuart: is designed to be a phone. >> you can make calls on this thing. stuart: nobody is going to use it as a phone. >> exactly right. no one is actually making phone calls on their smart phones anymore. everyone is talking about their phone, we're buying tons of phones but most people especially kids aren't really talking on their phones. they're doing everything else. stuart: samsung which put this

thing out, they know that. what they're doing is it putting out a tablet that is the tablet by any other name and you get good video on it. how big is the screen? >> 6.3 inches for comparison points. i have a 7 inch tablet, this one from google, and you can see this on screen, it is almost exactly -- stuart: hold it up and see the size. >> 6.3 inch screen versus the 7 inch screen, basically a tablet. stuart: when you have been playing with it. the light? >> it is not the greatest screen, there are better screens out there but most greens are good enough for you and me and everyone. it is $150. stuart: do we have to buy a contract with phone companies? >> it is $150, a preposterous amount of money. stuart: what is a preposterous amount of money? >> the the will be $600. you want it subsidized. stuart: $150, analysts.

what do you think of that. charles: i haven't had a phone in four or five years. i am leaning toward it. >> i am a nineteenth century old school blackberry as you can tell and i am thinking of buying the new blackberry 10 because i am still a keyboard barrel. these companies are going up in size and down in size to different gradations in the size of the outlet. >> whatever you are looking for there will be a size that fits you. >> anybody have a direct competitor? i want to hold it up because this is the new one. what is it called? >> the samsung galaxy mega. it is enormous. stuart: does apple have anything the same size? >> you are getting for the scale of smaller tablet so the ipad mini is the same size as this,

being more expensive. but different operating system. the point is it is not really a phone. you are playing games, doing anything but talking on it. it is the phone but also a very good tablet. >> this is simply the size, it is very thin with a bigger screen and a regular average l tablet. stuart: i am with keyboard girl. all i want is to tie with my thumbs, walking down the street. >> you mentioned microsoft, stock is shooting up, microsoft is afraid of this kind of thing, we are all buying tablets, smart phones, anything except desktop computers, that is what microsoft is struggling over the last year or two. this kind of thing that is hurting us. stuart: when you are our tech guy at fox business and you have your bit of anything, any tablet or smart phone, you can have what you want. what do you want? >> tough question.

i walk around with four or five things, came into the studio with four fund. stuart: answer the question. >> i stick to a tabloid. this one in particular, this is the nexus, it is $220, a great product, the screen is magnificent. i never talked to anyone. who would want to talk to me? stuart: you have a wife? >> i talked to her sometimes. stuart: he likes the nexus and that will be it. appreciate it. the koch brothers dropped plans to buy the l a times, the headline of the day. fear not california residents, disaster has been averted. >> hollywood point. right now, 7 years of music is being streamed.

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stuart: still down for the dow industrials. would be down more if not for the gain in microsoft which is a dow stock. you got to look at facebook which is moving today close to $40 a share. we are up $1.34, that is up 3.5%.

let's make some real money. charles payne is here. he knows how to do it. let me introduce you properly. expedia.com is the company like. charles: this whole travel war they have been a loser, travelocity and orbits doing better but they teamed up with travelocity, big news item. they missed two of the last three quarters. they could turn at around and get costs, get a better handle on costs but the stock is down. i don't think it is unreasonable to look for 20% bounce from where it was. stuart: why are they up so much. charles: they spent some -- in her bottom-line tremendously. they cut back on administrative costs. sales in europe looking good internationally. and they bought $460,000 shares.

in the company puts that much money into. insiders selling them for 67,000. stuart: back to the flash freeze as they are calling it. charles payne is here. my biggest problem with this thing is it locked up trillions of dollars of wealth, for 3 hours flat, gives investing in the market my biggest problem, i don't know whether this was the acting job and it was, somebody knows how to screw up america's financial system. >> when you make a trade, you are always assuming risk when you take on a position. that being said this market showed yesterday that it is more

accepting of an error like this than it ever has before. even though there was speculation on the trading floor, about possible hacking and what may have led to this. no panic ensued. that says a lot about the state of the investor and they are tolerant of online activity and obviously the technology on a daily basis. it was a telling david this point in history and the markets. stuart: that is the other side of the corn. you agree with me that this is a way of turning people off wall street. charles: who has confidence? not only the fact the we talk about new technology all the time and when we first bought cellphones we had dropped called all the time and still have dropped calls but there has got to be some growth problems. we know the plumbing is getting bigger, the pipeline is getting bigger, trade the getting faster and the way they handled it, the

way they spoke to the general public with such disdain, we talk about bubble cultures, little people don't worry about it, we will get back to you, people were scared, people were afraid. they didn't care that people were afraid or scared about this. stuart: i want to wrap this up with what liz claman reported having spoken to the top guy, they are not going to spend any more money on computers or security. that is bad handling. all right, everybody. all of liberal los angeles breeding a huge sigh of relief today. the koch brothers say they are not going to buy the l 8 times. that means this won't happen. >> hollywood stopped.

stuart: drop that the. we are joking. this won't happen. it is -- it would have been a political disaster for california and los angeles but not going to happen. >> god forbid some wealthy business people step in and save an american institution like the los angeles times. they were beside themselves on the left coast that the koch brothers might intervene and purchase this but now we are hearing rupert murdoch may be interested in buying the l.a. times and he may in fact be thinking about it in which case it will set of the leftist allover again if he is interested in purchasing the l.a. times. rupert murdoch has news corp. which is the parent company of fox business. stuart: come on, rupert, strain the out. stuart: that seem would happen within the l.a. times itself if someone doesn't, business mark, doesn't get in and we see what

happened. they will go out of business or someone who is wealthy will step up. maybe somebody with deep pockets on the left but unfortunately it is up for the run newspaper and even in california having difficulty. that is why it is the target. >> all these newspapers are in dire shape. the print editions are going south really fast. you see this with the new york times, the washington post and they are looking for a rescuer. a wealthy individual. charles: maybe you could pick it up. you got a news background, started out in california. stuart: are you done? >> how to make money with newspapers and turning it all digital and make money off of that which mr. murdoch has done a fantastic job with the wall street journal. stuart: keep me out of this. cashing in on obamacare.

and who is doing that? can you make money out of obamacare? not many can do that but we have a company that is -- can do it. that is next.

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stuart: a canadian dentist bought john levant to that and auction. now he is hoping to clone the singer using his dna. will lend in live again? we shall see. pandora says it is costing more. aeropostale says it will lose money. that is going forward. it is down nearly 20%.

some are calling this the amazon of the health insurance business. the health. they are helping people navigate obamacare and they are making money doing it. i logged on and i can take my pick of health insurance policies just by logging on you. >> sure. we pioneered this 15 years ago as a silicon valley technology company. stuart: if i buy a health insurance policy from you, i still have to work with the mandates of what that tells insurance must contain because i live in new jersey.

>> starting january 1. we will show you all of the qualities of the health insurance products in new jersey. we give you a lot of ways to sort through this and get through this complex, daunting health insurance process. stuart: i have this wrong. i honestly thought that you were offering health insurance policies. you are not. you are navigating through these complex things that are bein offered. >> precisely. think about amazon. they take things and put them in the marketplace and give consumers a lot of choices. that is what we do with health insurance. stuart: i am told to have signed

up a couple million people who are using that service. is that accurate? >> yes. 20 million americans come to eat health. when you get to obamacare, i feel very strongly about this, this legislation will succeed or fail based on enrollment. if we do not get a lot of younger people to enroll to counteract people like me who are a bit older and higher utilizer's of health insurance, this will not work. to make this work -- stuart: do you take a piece of every policy that i buy? is that how you do it?

>> yes. we are paid a commission by the health insurance company. the commission is simply built into the pricing structure. there is no penalty to you as a consumer. there is an advantage to coming to us. stuart: that is very interesting. we have been looking for somebody who makes money out of obamacare. i think we have come to you correctly. thank you for joining us. much appreciated. you heard it from me yesterday. the traditional august gone, over. no more dog days of summer. no more total relaxation. school starting much earlier. way before labor day.

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♪ stuart: good news on housing. not this particular housing

item. new home sales in july down 13% compared to the month before. the lowest since october. the food and drug administration is considering banning online sales of e cigarettes. they could pose a health risk. they hope that banning online sales will keep them out of the hands of minors. ryan braun admitted that he took performance enhancement drugs during the 2011 season. this comes one month after braun said he had made mistakes in his past. 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. [ male announcer ] the best thing to share? a data plan. at&t mobile share for business. one bucket of data for everyone on the plan,

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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. stuart: this thing keeps going up. we are talking tesla. nicole: look at tesla. of almost 1% today. if you invested in tesla, you made 368% on your money this year. stuart: by the way, i saw one yesterday at a show room at a mall in new jersey. a beautiful looking car. you have to tell me about facebook. nicole: this is a big deal.

we have not even seen the $40 a month since then. it traded as high as 4011 today. good news for those shareholders. stuart: charles is about to make us some money. the stock is pier one. charles: pier one. everyone is busting my chops. same-store sales are up. this niche is going well. tj maxx reported earlier this week. they had a blowout. that ms. is doing extraordinarily well. if you are going to do anything in your house, you buy these kinds of things to fix it up. stuart: you are totally wrong. we do not have enough money to spend at pier one and we do not

like wicker. >> i do. stuart: school has indeed started in many places across the country. that is way before labor day. not like it used to be. more kids would surely like more time in the summer. let's get that opinion on that. we have an 11 year old who made a ton of money on bowties. forget the business for one moment. i want to ask you about august. don't you agree with me that it is not a time to be in school. >> yes. i definitely agree with you. kids should always, always have

more, you know, summertime. they also have to have discipline and reading and math. parents have two, they have to have support. i know you are working and you have your own lives in the summertime, but your kids need you. stuart: you have this totally wrong. august is the month where you can legitimately do not think. you can just get school right out of your mind. it is those lazy hazy days of summer where you do not have to do anything at all. [laughter] stuart: what are you doing this august? >> i am going to school.

i may be with you again. stuart: hold on a second. august is august. >> it used to be that endless summer when we all were growing up. i tend to agree with you. august should be august. i have to give props to him. >> i still do not know. my mom makes me read at least 30 minutes a day and do math two times a week. stuart: how is the bowtie

business? >> it is going great. i was recently in the gq. >> that is the big time. stuart: bab bowtie that you are wearing right now, that looks good. how much do you charge? >> $30. stuart: that is pretty good. i will save our last word for charles payne. charles: i agree with mo. it all adds up to the two month of summer that they missed. my son right now, he is working for me. he is 16.

i just want to prepare him for life. july is when you step back and chill out. all this, have to get your act together. >> gone fishing. stuart: you and i are together. >> he is not a grinch. stuart: yes, he is. you do not know him. >> he is not green. stuart: i hope you will come back and sell us more of those bowties. thank you very much, indeed. >> thank you. stuart: what is everyone buzzing about today? then aflac named the new batman. that is next.

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lou: former egyptian president released from prison as the

military run government continues to clash with morsi supporters. frank on the fallout and american prospects in the middle east. tonight. 7:00 p.m. eastern. ♪ stuart: we just showed you an hour and a half of a program full of important topics. guess what people are outraged about. ben affleck as batman. people are tweeting and face booking all over it. i honestly do not get it. charles: it is batman. stuart: who cares. charles: one of these movies that comes out and does a billion dollars.

i just have one word for you, daredevil. you have to be kidding me. stuart: you object to him playing batman. >> i questioned the casting on this. that man is known as the dark knight. whenever they put and the very handsome leading man like george clooney or now ben affleck it does not really work. maybe he will surprise us in this role. maybe he will take it to a new level. i will give you $10 cash if you know who gareth bell is.

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stuart: gold straight of because new home sales bad. it may mean that the fed will keep printing money. you know that charles makes you money. next week, he has a special for you. charles: every day at 6:00 p.m., i will help people navigate this market. let's shed all of the fears that you have. stuart: capitalism lives with charles payne. charles: let's not give up on it

stuart: connell, it is yours. connell: bob griese failed finally came out to talk yesterday. mary schapiro back in the spotlight. whether she likes it or not. charlie gasparino will have more on that. the stock, it is responding. ♪ connell: all right, a lot to do today on markets now. we will take what we can get in the markets. today, for now,