>> for investors, the serious story is done. at least for now. good morning, everyone. president obama has put any attack on hold. he told the world that diplomacy via russia and the u.n. is the way to go. this is no longer the story that's moving the markets. the markets are flat across the board this morning. but there is this, a leftist, an arch leftist looks likely to become the next mayor of the world's capital. bill deblasio is a tax the rich, anti-wall street kind of guy. trouble in the housing market, applications for loans take a big fall. i've got one last one for you, eliot spitzer lost. "varney & company" about to

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what's in your wallet?

>> good morning, everyone. >> i've got some disturbing news painting a bleak picture for the nation's housing recovery. i've got two items on this. number one, a big drop in applications for mortgages, number two, one of the largest mortgage lenders in talking to layoff 2,200 mortgage workers by early next year. liz macdonald joins us early today and she's got a fox business exclusive. first of all, give me the numbers on mortgage applications tumbling. >> mortgage applications are at their november 2008 levels and refinances at their 2009 levels, as interest rates have spiked on mortgage loans. now trending toward 4.7% by the end of the year on the 30-year. stuart: you've got the enormous impact from just a 1%, one point raise. tell me about the layoffs at

the banks. >> we're hearing from insiders at citigroup. plans to layoff as many as 2200 workers in their mortgage unit. it could come across the country and the number they're trying to focus on is around 2200. it could be more than that, it could be lower than that and right now we're already seeing j.p. morgan chase laying off 15,000 workers. wells fargo, bank of america, laying off. the number of layoffs in mortgage units at the big banks, now 22,300 trending around that level. stuart: that's real trouble for housing. stay there. i'll be back later. that's a back drop on your money on this otherwise somber, the 12th, this is the 12th on anniversary of the september 11th terror attacks. in a moment we are going to take you to the floor of the new york stock exchange where they will observe a moment of silence. please remember, that 12 years ago the new york stock exchange shut down. the attack came on a tuesday, the market was shut down for the rest of the week. by a miraculous effort it reopened the following monday

and now let's go to the floor of the new york stock exchange where that moment of silence will be observed. here we go. [moment of silence]

. [bell ringing] >> we should note that the financial industry was hit very hard 12 years ago, along with the new york fire department, the port authority police, the new york city police department. liz macdonald is still here. liz, you have extended family within the new york city fire department. your thoughts on this 12th anniversary? >> i don't like to-- i don't like when journalists talk about yourself as you don't, find it irritating, but my brother-in-law dug out his brother-in-law. he's a fireman and dug out his brother-in-law chuck on that eve, he's one of the firemen swept three stories down so we were grateful for that, but you know, i'll tell you something,

there's another story here and the firemen's heart broke twice and so do the policemen and the people in the tri state area. it's because of america's heartland. and your viewers have despair that can bring you to your knees in the hallway or shower. but school kids, parents, teachers across the country took their bed sheets and took their pillow cases and took their table cloths and t-shirts and wrote messages to us, saying, you know, by the way, new yorkers have been known even before this to be cranky. the joke in my family is you have to turn them upside down to get them to smile. the joke in my family. and people from texas, oklahoma, nebraska, michigan, sent messages to us and the firemen hung those bed sheet the firemen i know, around 9/11. the messages were we love you, we've got your back, we're here for you. if i start crying i'll have to give it back to you. this still touches my heart to

this day that your viewers thought to do this. stuart: i don't think that most of us remember the bed sheets hang out, but i do, as a matter of fact. i remember that. >> in black magic marker school kids from nebraska, california, texas, michigan doing that and it was the thoughtfulness and broke our hearts a second time and wonderful and gave new meaning to the term america's heartland. >> moments ago we saw president obama lay a wreath at the pentagon. a plane struck there and another plane struck shanksville, pennsylvania. and 12 years ago today, it's a solemn moment. thank you for sharing your thoughts with us. we're a minute from the opening bell. let's go to chicago, and here is tres knippa. syria isn't moving the market. what is the story moving the market?

>> with the stories that you guys told, it's hard to focus on the market, but the story is the fed. will they taper? how much will they taper, will it last? et cetera, et cetera. and all of the eyes are on the bond market and before the september 11th anniversary you talked about a reduction in mortgage application. that's a direct result of an up tick in rates, simple as that. if that up tick in rates continues, things are going to slow down. and that's just a fact of life. so, we've got to keep our eye on the bond market. that's the driver here, stuart. stuart: your message has always been that there's no way that ben bernanke is going to seriously cut the amount of money that he's printing in the very near future. and maybe a little bit, but not by much. that has always been your message and i think it stays the same. correct? >> he can't afford to. if the united states with the deficits that we have, we can't afford to have rates go up. he's going to dilute the value of the dollar and buying bond, what we have to worry about it,

is when he says he's going to do it and bonds still break. stuart: i think that news on housing we had just a few moments ago, i think that may influence any decision to cut the amount of money that ben's going to print. all right, tres, you go back and trade. we're looking at the new york stock exchange, back open for business, the bell is ringing here we go this tuesday morning. in the early going, we're not expecting a significant trend up or down. right now, ten seconds of business we've got the dow up 5 points. let's move on to individual companies and stocks and now you can get the iphone in five different colors, whoop-de-doo. investigators not impressed by that or the big announcement. shares were down yesterday and they're down big. look at that, look at that, down nearly 6% this morning. why? down grades from a lot of the analysts, no break through product announced yesterday. no solid deal with china mobile. shah galani who is going to join us moments from now, he says buy the stock. he said that a month ago.

we're going to ask him if he still wants to buy it at 466 this morning. quickly, i want to take a look at netflix, trading near its all-time high. i think that may be the all-time high 313 this morning. we follow netflix because it's gone straight up, up 450% since last september. now, there's a performer. move on to mcdonald's. it is shaking up its breakfast lineup. you can now get any of its breakfast sandwiches with steak. all right. nicole, define-- >> and why you make the face? why do you have to make the face? it's a good idea. some people like steak in the morning, stuart. stuart: no, no, i want you to define steak. despine an mcdonald's steak. when is a steak a steak? any old kind of beef or what? have you got a definition for me? >> well, it's steak and you can put it on any breakfast option, on the egg mcmuffin and pay instead of 2.49. you pay $3.49 and by the way,

the breakfast sandwiches plus steak are still less calories than the big mac during the day and it's ala subway and wendy's offing steaks. it's mcdonald's offering that. stuart: looks like a hamburger to me. nicole: you can replace the sausage with steak. stuart: this was a test, nicole. how long can you speak to the issue of mcdonald's steak? so far you've done 45 seconds, i think that's pretty good. nicole: yeah, as long as you need, whatever you need, stuart, i'm here for you. stuart: thank you, nicole. the point is the stock is not moving. the dow is moving, it's up not a huge gain, but up 25 points in the early going. all right, for investors, syria now appears to be pretty much on the back burner. so, is the way clear for another stock market run-up? the market watcher shah galani says, yes, it's that time and he joins us from miami. so, shah.

you would pick your stocks you like and you're going to see them run up, correct? >> i think so. i think with this syria overhang past, i think the markets have shown they're willing to go higher. they've climbed the wall of worry and i think it's a positive sign. stuart: syria out of the way, here we go straight up. 16,000? do you want to make a prediction for us? >> i don't know if we're going to -- i would like to see us make new highs, i don't know if we're going to. again, the reluctant bull and playing the market on the long side. i'd like to see us get above the old highs and if we don't, i think there's room for worry there. and that's the direction and i'm going to play from that side because so far that's the way it looks. we go with the trend. the trend is your friend and it continues to be up. and no point in fading that. >> i want to talk to you about apple. i'm shocked this morning to see that stock down another $25. that's what, 5, 6%. 5% down as we speak. and you liked this stock when it was in the low 400's you

talked about buying it. what's your reaction to the stock now after the announcement yesterday? >> i think it's a bit of an overreaction. and i think the stock will bounce from here, it could go lower and don't forget, the stock had a double bottom about $390. i don't think it's going to touch that again. if it gets into the low 400's and certainly another buy. i wouldn't mind acquiring some here. if the stock got to 111. if it got up to 585 or 600 again and confident that apple is going to bounce and do well. stuart: okay, what's moving the market? tres knippa doesn't think they'll stop printing money or reduce much. you're talking about the dow making new highs. what's driving it? >> i think what's driving it is optimism that somewhere down the road in the-- at the end of the third quarter, we're almost there and into the fourth quarter, we will see some turn on gdp will rise a little stronger and i

think we're going to have that optimism underpin the market and again, anytime we see a little bit. get a little bit of a dip, investors will csay, this is a good opportunity, but there are a lot of shortcuts that are driving the market higher. every time the market goes down, everybody piles on an and says this is the turn. as it bounces they have to cover. there's plenty of buying power in terms of a lot of shorts out there and i think that's going to continue to propel the market higher, too. >> i'm hearing a lot of bulls this morning, that's a fact. shah galani, thank you very much indeed. i've got to tell you what i've got at 10 being this morning. how does it sound? get fired from your job and get a $3 million payout and get paid $600,000 a year after you've been fired. does that sound like fantasy? we're talking college perks, repeat college. we'll tell you about it at 10 a.m. eastern this morning. i've got a big name you know. suntrust down grades procter & gamble. and we also found out that the company is cutting the number of diapers on each package.

p&g makes luv's and pampers, nicole, the stock? >> yeah, and i bought the pampers for my kids. they've got a $80 price target. as you notice, they plan on cutting the number of diapers per package beginning september 16th. the price of the package will remain the same, and just a little tidbit, fun fact for people at home because i thought it was a fun fact. the new diapers are expected shipping out september 16th which procter & gamble says it's the most common birthday for babies born between the years 1973 and 1999. maybe you know somebody born on september 16th. stuart: i don't, but that's indeed a fun fact. nicole, thank you very much indeed. now, the results are in for the new york city mayoral primary. and joe lotta got the nomination and the one is the democrats. bill deblasio's on top.

there's a runoff, but he's likely to be the next mayor of new york. but anthony weiner and eliot spitzer were both knocked out. and you've done a lot of polling on this, i know, but i want to know what pushed bill deblasio to the front? because he campaigned on class warfare, beat up on wall street, beat up on the banks and he also brought race into the campaign. you've done the polls and what put him on top. >> 89% of new yorkers didn't find the city to be affordable right now so there's a basis to build from. only a third think the mayor can make a difference about that, but that's a separate question, you know, the issue of term limits and michael bloomberg getting a third term extension. and the fact that three quarters of democrats want to move in a new direction, turn the page. he tapped into the change message as well. so, and the dante effect, new

yorkers saw with his son and-- >> his wife is black, mixed race son. put the son in the ads and his stock, so to speak, went up at that point. >> absolutely. stuart: look, we've got viewers all over the country and all over the world and they want to know, is this the election or the likely election of a very anti-wall street, anti-bank tax of rich kind of guy? >> well, you have to put it in context, he got 40% last night of the democratic primary. only 20% of democrats showed up that meant he only really got about 8% of the democrats. so, it's not like this huge ground swell. it's enough electorally to get him where he is today. the democrats haven't won in two decades despite the huge advantages. there's a race in new york. stuart: you think it's a real race. and new york had traditional republican and joe lotta is a traditional republican.

he hasn't got a prayer. >> except that rudy guiliani and michael bloomberg has been in city hall and i think it's still a contest. i would not declare any victories at this point. obviously, it's an uphill fight for lotta. let's see what happens with the runoff and the democrats, bill thompson who finished second yesterday didn't look like he was going to take his marbles and go home, either. stuart: do you think that the mood in new york city is anti-wall street? tax the rich, hit the banks? >> there's a sense of the disparity, you know, he may-- bill deblasio made a strong case about this. there's a division to which he speaks to that is real in the numbers. the question is whether he can also suggest that he's the guy who can successfully pull new york together and move it forward and that's a tall order when only a third of democrats

think that a mayor can do something about that. stuart: and congratulations for the maris poll because your poll was close to-- >> and with eliot spitzer and anthony weiner and that's why broadway is only a couple of blocks. what a show, what a show. stuart: check the big board. we're up 30 points, that's not a huge gain, but it is a gain. remember, the dow has gone up, what is it, in the last two trading sessions we're up 270 points something like that, and now we're up 300 if you count this today's trading session. brent bozell has a warning for the g.o.p., defund obama care or face a battle in the primaries. brent is next. ♪

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>> all right. this wednesday morning, we are 30 points higher on the dow, 15,221. the gold is down 1362 is your price nowment as for the oil. $107 a barrel. that's the current quote. verizon is likely to set a record with its bond offering. they want to borrow, basically between 45 and $49 billion and they're doing it now. the previous record was $17 billion bond offering by apple, that was last april. look at netflix. it hit a new high.

314.18. that's a couple of minutes ago and right now 311. what a stock. the fight to defund obama care in full swing. conservative leaders, they're sending a message, a clear message to lawmakers, you kill the bill or prepare to get voted out in the mid term elections. that would be defund, kill the bill. and for america, the chair of that organization is bret bozell. and you're playing hardball, aren't you? are you prepared to shut down the government? >> it's know the shutting down the government. first of all shall the position that we've put forward that senator mike lee put forward and congressman meadows put forward in trying to garner republican support to do what they promise to do is simply to fund everything in the government no matter how much we don't like, fund it all except for obama care. why do that? because it's a disaster. everybody knows it's a

disaster. everyone apparently is getting exemptions, except the american people. congress itself is exempted from this. and yet, all we want to do is just say, take it out. fund everything else, and they're folding like cheap suits. let me tell you something, stuart and this is going to be a statement i make as bluntly as possible. i have never seen a more cynical ploy from the republican party as what we saw yesterday where eric cantor and john boehner announce that they have in fact put forward a defund cr. in fact, it is a joke. what they didn't tell the american people was two things, one, it is designed to fail, and two, guess what? there's another cr and that one will pass, that will fund obama care in its entirety. so what happens? they go along, they don't, they don't fight for this and then they go back to the constituents and say, why, i fought to defund obama care. stuart, game is over. this is our last chance and it's time for conservatives to hold the republicans

accountable. they're funding it, they own it. stuart: take this through for me. if you're successful, if this bill that defunds obama care, pays for everything else in government, but defunds obama care, if that goes through, then it's going to go to the senate, i presume it's going to lose there, but if it should win, it will be vetoed by the president, wouldn't it? >> and here is a simple proposition. the republican pass it and they have to be reminded, stuart, they have a majority and the majority leader has to be reminded he's a leader. they pass it in the house, then it goes to the senate. 41 republicans senators say we will we won't pass a cr that includes obama care and stops a cr that includes obama care in the senate. if it goes to the house, then it's the president that has to shut down the government because he wants to fund something that the majority of americans don't want. it is the president who will be closing down the government, not the republicans. stuart: okay. >> the republicans are playing games who don't want to fight

this who say it's the republicans who will close it down. stuart: i want to follow this because this is a vital interest to you and i and all of our viewers. so, we want-- >> conservatives need to know they are being lied to. stuart: you play hardball and thanks indeed for joining us. come back real soon, please. okay. dow is up 33. and my take on the real nature of the obama presidency. that is next.

>> hey, we've got a horse race stock today, that would be apple down big. new iphones apparently not pleasing investors or the analysts. it's down 4 3/4%. that's a drop. all right. you think college too expensive? coming up new at 10:00 we have some greatest examples of seven-figure perks for college presidents at private and public schools. plus, dr. keith ablow is here, and he's going to weigh in whether money has morality. by the way, charles payne is back. does he still love tesla. he responds to the guy, the guest who says the stock is way overvalued. the president gets a huge tax revenue raise, but he still wants a whole lot more.

here is my take on it's never enough. first the numbers. an extra 284 billion dollars float into the treasury this fiscal year, that's up 13%, it's the biggest gain since '06. break it down. revenue from income tax up. revenue from corporate tax up. social security tax up. you name a big tax, and the revenue went straight up. the treasury is raking it in. a couple of problems with that. first, all that money taken out of private hands has hurt the economy. where is the growth. 2% is all we've got. the president doesn't care about growth. his priority is spreading it around. but this redistribution is not working. middle class incomes in real terms are down. so, that's problem number one. tax hikes do not bring growth and prosperity. problem number two. the president is pushing for higher taxes and senator reid

wants an extra 10 million in and that's not for growth and prosperity. the top 10% take 50% of all the income. taxes have not leveled us out. have they? the real nature of the obama presidency has been revealed. raise taxes, spread it around. it hasn't released america's animal spirits, tax hikes have suppressed the national vigor and vitality that is 0 your hall mark. don't expect more change. expects more demands on your wallet. what you're paying now is never enough. [ music transitions to rock ] make it happen with the all-new fidelity active trader pro. it's one more innovative reason serious investors are choosing fidelity.

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she ok an early spring break thanks to her double miles from the capital one venture card. now what was mrs. davis teaching? spelling. that's not a subject, right? i mean, spell check. that's a program. algebra. okay. persons a and b are flying to the bahamas. how fast will they get there? don't you need distance, rate and... no, all it takes is double miles. [ all ] whoa. yeah. [ male announcer ] get away fast with unlimited double miles from the capital one venture card. you're the world's best teacher.

this is so unexpected. what's in your wallet? >> welcome to the second hour, did the president sell the nation on a syria strike or russian deploam sigh in republican senator is here to weigh in on that one. money has no morality. i said that. dr. keith ablow puts me on the psychiatrist couch. with millions of students deep in debt, we have a report on extraordinary perks for some college presidents. you boant believe what some are getting. a college professor says tesla is $1100 a share over priced. watch out, charles payne has choice words on that. ♪ look at the marks, not exactly flat, up about 30 # points,

syria, the strike, much now on the back burner, not moving this market, but we are a fraction higher, up 300 session. on the markets, charles payne, a welcome back here, out there, but he's back. syria on the back burner. we had a lot of people from here? >> off the table for now, and, you know, back to the federal reserve, that's the big meeting that's looming. i also think this street sort of come to grips with the idea that that the fed will taper, not a big taper, something just to sort of say this is all we got. >> you're not in the club that's up from here? >> i've been in the club for a long time, but not based on syria. what we don't focus on is the fact that the world is probably never been this peaceful before,

at least in the history of the stock market. >> your point is the rest of the world is doing fine, thank you, and numbers to prove that. china rebounded significantly, and europe, actually, appears to be coming up. >> it does. that's the wild card. europe looks interesting. from different companies from the restaurant here, you know, obviously, they got a long way to go, but maybe we can say the worst is over. >> having visited the redskins' game, you come back, and you're still with your old theme that pick the stock, look for income, watch those overseas economy, and you'll do well? >> extraordinarily well. >> never change, do you? >> i tried to. i want to. i really want to. [laughter] >> i want to bring back the syria issue and president obama's speech last night for a moment. here's senator john hoven, republican from north dakota joining us from washington, d.c.. did the president sell you on attacking syria, mr. senator? >> no, stuart.

really, no new information there, nothing we were not already aware of, and, really, a mixed message. on the one hand, talks about the need to take action, and, of course, we deplor the use of chemical weapons, but now he wants to put things on hold while he works with russia. >> do you have any idea how much time it takes to go and locate, identify, and control syria's weapons of mass destruction? we're talking months, aren't we? >> yeah, i mean, some of the earlier estimates were you put 75,000 troops on the ground in a sustained effort to actually capture the weapons and remove them. obviously, nobody supports boots on the ground, and, frankly, at this point, the american people and congress do not support a military strike, and it's because the president has not developed a good strategy. >> well, where are we going from here? what do you make of the president's foreign policy? >> well, as i say, right now, he's pretty much asked us to

hold off while he works with putin. the problem is he doesn't have a consistent foreign policy, and it's so evident in what transpyred in syria. he has to develop a consistent approach that makes sense, can be effective, and he has to communicate that to the american people, to congress, and the allies. >> he's not done that so far, you say. what do you make of russia's putin getting his foot in the door here, certainly in the middle east? you're shaking your head. what i'm picking up from you is the same i pick up from the major newspapers and other senators and congress mep. you are dismayed #. that's the way it seems to me. you are dismayed with the president's performance up until last night and last night as well? >> it's a real concern. now it's a situation where we depend on russia to take the lead and solve what should be an issue we're stepping up on leading on the right way, and that's because we don't have a consistent, coherent foreign policy. that needs -- that needs to be developed. again, it needs ton communicated

to everybody, clear and consistent instead of just trying to react to events as they occur, which, obviously, is not working. >> the president is going to leave the forces in place until a strike could be possible at some point in the future. is there any circumstance in which you would support a strike? >> at this point, i don't support a strike on syria, either does congress, or the american people. i don't think the support is forthcoming until there's a clear strategy that's been communicated, and people believe that we have clear goals and objectives with a chance for success. we're not putting people in harm's way when we don't have a strategy. >> is there going to be a vote on this at any point in the near future in the senate? >> depends on what happens now with the diplomatic negotiations. right now, we do need to pursue diplomacy, but we have to get a cohairpt approach. >> okay. senator, republican, north dakota, thank you for joining us. appreciate you being with us.

thank you. >> thank you. >> any comment, charles? >> what struck me about the speech is the president has been consistent on one thing. he's really into getting even, getting, you know, teaching a lesson. he's going to teach syria a lesson, and he taught wall street a lesson, and he's going to teach rich people a lesson. there's nothing proactive. what do we do to make things better? he's good at punitive things, dishing out punishment, but i never hear how to get a solution. okay, once the chemical weapons a gone, how do you stop the next 100,000 people in syria from being murdered? >> got it. back to the market, directly, apple very much the stock of the day opening at 6% down. nicole, any bounce back? >> right. it's down 5% now, but what the key is here is how heavily weighted it is among major averages, on the nasdaq, it compromises more than 13% of the nasdaq composite, and as a result, it's down more than the s&p 500, and it's also in the

s&p 500, waited about 3%. i want to tell you, though, i wouldn't write off apple so soon. my 8-year-old and 10-year-old fought over this article this morning in the new york post. let me see it. how much is it? is it plastic? how much does it cost? oh, there's two kinds? the excitement i saw from the two kids should be telling enough that apple has something good going here. >> that's interesting because, charles, you're a proponent of buying a company that your family likes and uses. >> absolutely, absolutely. >> yeah, so? >> my son is 16 and a little bit older than nicole's kids, and he says that while apple has not lost the cool factor completely, samsung is definitely more, gained a footing in his school. the kids with the more disposable income starting to lean from apple. >> okay, got it. stay on stocks.

tesla. yesterday, we had a professor on the show who said tesla's stock is over valued from where it is now. roll tape. >> this is the ultimate me men tum stock driven by people who love the product and essentially using that as justification for pushing up the press, so i think that explaning the price is almost impossible to do, and i don't trust. >> he doesn't try to explain the price, but you liked tesla. >> i have, i have. i checkedded my records today. i recommended it to the clients four timeses first time july 19th, 2010 at 21. i i held had through, thrrt a couple times last year and this year, out of the stock now, but what would make me buy it is if musk bought more, i would follow him in. i want to see a pull back. >> that's why you like it, it's not the electric car, but musk, the guy, the visionary.

>> just like apple at 700. a lot was jobs. >> you're not touching it at 160? >> no, not right now. >> nicole, bring on marriott, please, it's a big winner, upgrade or something? >> top performer in the s&p 500, so, yes, upgraded today, at 3.3 president to the upside. it was a buy rating from neutral, so the hotel operator is doing exceptionally well today on a day where we have a lot of down arrows now. >> i want to bring you up to date on stocks we follow frequently which is net netflix. yeah, another all-time high this morning. the new high was $318 a share. come on -- now it's 308, what a drop. okay, you like this thing? >> i like it, but i'm out. we took profits. a double top, all-time high, and i'm worried about is margins a little bit here, particularly in domestics screaming, and quarter

to quarter. if margins fade just a little bit, i think the stock's going to take a hit. one of the secrets about the company, too, is how much money they take from plain old dvds. you know, they did -- they did 200 million dollars in dvd business last quarter, margins of 46.7%. that is huge. that's more than twice domestic margins. >> incredible. >> it is incredible. >> we'll stay on streaming. variety is reporting that target, you know, the store, target will unvail a new online video streaming service by october the 1st going after netflix, i guess, walmart, amazon, everyone in the streaming business. dennis has that story. everybody's doing it. >> 30,000 titles target wants to put up, it's late to the party, this big retailer, but they said, half the customers have not down loaded either, they are

late to the party as well making the site especially simple to use, protectively family friendly so no smut is up there. there's deal with the four major broadcast networks, with amc, fx, usa, showtime, and other cable, they show up a day after live regular. movies show up weeks before dvd, and deals of all seven major studios, but the problem, first of all, it's late. it's a stray from core competencies. why buy at all when truly so many others do it? it's pricey. amazon prime is $70 a year for unlimited shipping and throw in the free video service free. time warner cable, right now, five buck, i can watch the movie "now you see me," but target, online? charges $18 for the hd version of "now you can see me." >> for one movie? >> yeah.

>> $18? >> yeah. >> no per month charges? >> it's represent or download so the prices are not there yet. >> make the judgment. it's target, it's a bricks and mortar operation, going online? >> yes. >> you make the judgment, a winner profitability for them in >> i think so, ip and internet protocol is cheap and there will be customers who like the idea, i love target, i'm a faithful, loyal customer, and i'm going to trust them. >> they got to compete for content. >>ady got deals in place behind them. that's the amazing thing. >> yeah. >> downloads you hold forever. prices come down, they always do. >> i pay 18 bucks and have the movie forever, but we don't know the streaming price. >> right. and how it compares with netflix at $10. >> it's a winner? >> i think it's a winner. >> shocked to see target. >> nice extra. >> if walmart does it, why in

the target, i guess. maybe i'll learn myself. dennis, not bad. thank you very much for joining us. >> all right, thanks. >> go on disability, get tens of thousands of dollars a year, and then work, legally, and get more than a hundred thousand dollars in salary. we got the story for you next. ♪ i'm a careful investor.

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your financial advisor should focus on your long-term goals, not their short-term agenda. [ woman ] if you have the nerve to believe that cookie cutters should be for cookies, not your investment strategy. if you believe in the sheer brilliance of a simple explanation. [ male announcer ] join the nearly 7 million investors who think like you do: face time and think time make a difference. join us. [ male announcer ] at edward jones, it's how we make sense of investing. >> a company buckling under the employer mandate. listen, reports out that supermarket chape, trader joe's, they say they'll no longer offer health insurance to employees working less than 30 hours 5 week. the company will cut the part time workers a check, one time for $500 to find a new plan under the health care exchanges. trader joe's, by the way, declines to confirm these

reports. charles is going to make us money. we could all use it. led lights. you've been here before. >> we did. >> that's right. >> yeah, we actually have taken profits on it, it was whacked while you were on vacation, really hard, i think, though, that traded another opportunity. i don't know why they hit the stock so hard. earnings were a little disappointing, but they are driven back down. there's good support north of 57, breaks out to 61. looking for, like, 65 bucks on it. >> rocket charge. >> broke down, really had a hit, but it was almost straight up, violated everything, a lot of resistance to the upside here. >> tell everyone again, it's a special kind of light? >> well, this is the light emitting die yod, but they do all kinds of lights for any kind of light for almost anything. >> we have the ceo on the show as i recall. >> yeah. >> he's got a light bull --

bulb. >> that's driving innovations, 75 watts, i go blind with the thing. >> you can't read with 75 watts? >> i need more than that. you're the guy with the good eyesight. >> i know, i know. i'm the guy who can't swim. all right. new investigation reserves how disabled double dippers are draining millions of dollars from new jersey pension. for example, here, scott jenkins, chief investigator in the division of consumer affairs gets, in total, 186,000 bucks a year, now, 93,000 is the salary, and another 93,000 comes from a police.com pay. -- police disability pay. let me recap this. this guy, scott jenkins, he's disabled, out of the police force, $93,000 a year, disability paycheck, got it. works for the new jersey government, the state

government, gets $9 p 3,000 from them. i don't see anything wrong, actually, with a guy who is disabled out of the police force, can't do police work, but he can do high end end administrative work elsewhere. what's wrong with that? where's the outrage? >> two things. number one, why should taxpayers pay him twice? if he can qualify, if he can work a job, why don't they find another job, why do they pay him a pension and salary? in new jersey and other places, people can't do that. if you get a disability pension and go back to work, you have to give up some of the disability pension based on how much you make. however, in new jersey, there's an exception for police officers. they can get both. they are the only public employees who get both. >> you say he should go back into the police force and do administrative work if he can't do regular police work opposed to a totally separate job? >> what we say is why should taxpayers be paying him twice?

the other thing is there's so much secrecy around this. the state will not release his injury or why he's disabled. >> privacy rights. >> there's privacy rights, but this is public money. how do we know they are really disabled if this is behind closed doors? on your show, we've seen examples in the past, for example, the cop who was not injured and didn't find out until we invs. gait and documented it. >> is the scandal, the outrage, the result of double dipping, or is it the result of abuse of the disability rules in the police force, fire department, and elsewhere? >> it's both. it's both. we've done stories on double dipping, questionable disability, and this is both stories put together. >> if a politician says, hey, look at the cops who are abusing the disability system, that politician does not get reelected because police

officers, family and friends, thane support the cops and they say, you're out. we want to pay the guys. >> yes, but there's a growing number of cops in new jersey embarrassed by this and want the system changed as well. >> what about elsewhere in the country? viewers are all over, not just new jersey, obviously, is this double dipping or abuse of the disability system common elsewhere? >> i'm not sure how common. it occurs. we also know that in your home state of new jersey, it's down to a science. >> that is true. it is new jersey. thank you very much for joining us. see you soon, i'm sure. >> my pleasure. >> organized labor is in trouble facing a membership crisis actually, find out what they are trying to do to boost their numbers in just a moment, but, first, the u.s. soccer team clenches a spot in the world cup, yes, they did, beating mexico two-nil as some people say, 2-0, last night. the world cup in rio next year, and team usa will be there.

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stuart: serious story the market dead flat of 53 points, 13224. blackberry down again, wall

street journal reports blackberry will lay out several dozen member of its u.s. sales team. $10 a share, the afl-cio for very desperate to increase their membership. inviting nonunion workers. not sure how that works. neglecting the real purpose which is standing up for worker rights. sandra smith is back with us. at these people laboring in, they played dues? >> a crisis of numbers. >> they know dues, there's opposition by union members on this. then there is not a single no

vote. >> under pressure, people bring in environmentalist's on occasion emigration on occasion. >> last year the percentage, 11.5% reunites labor. this is a desperate plea right now. charles: the numbers lot less. charles: they lost a longshoreman and this kind of stuff, 40,000 dockworkers is the epitome of the union, the heart and soul. and working and busting their backs, if you need a union they say it this organization as a joke because it put a lot behind political ideology of the left instead of working specifically for workers' rights. stuart: no opposition to this move. within there was but nothing popular. the vote was like a stalinist -- >> exactly.

stuart: there is more. business inside, an online publication, chief technology officer at dickenson ousted after tweeting some controversial comments about women, just a sample of what was said, quote, feminism in keck is the champion topic for my block list, my fingers getting tired. misogyny, hatred of women is not misogyny to tell a sexist jokes or to fail to take a woman seriously. there is worse than that out there but are you sure you be of the bits being kicked to the curb? >> absolutely. there's no room for this in the workplace. this wasn't something he accidentally set. he is a self-described programmer. i was trying to look that up in the urban dictionary. he is a racist, sexist, homophobic and the fact that he is willing to advertise this on twitter can't have this in the workplace, not today. stuart: you tweet as part of

your office routine or if you send an e-mail then the company owns that tweet, loans that e-mail and is responsible for it. >> as an executive of the company represent a company that you work for so you are entitled to have your own thoughts in your personal life but the second you start advertising those to the public on twitter you can't get away with it. stuart: the company lawsuits, somebody who was offended and saw that tweet or that e-mail could say -- >> the entire basis of having no place in the workplace is because it will create a hostile environment at work, you have women working at this company obviously, they have the case for their boss, it will not enhance productivity, it will be a problem. stuart: a hostile environment is not something we want an america. charles: this business insider is the epitome of the limousine liberal operation, great operation but they are so left they never see anything wrong

with obama policies, it reminds me of magazines, business magazines that are anti business but they put out a new product. i find it hypocritical way would have allowed this to happen under their watch in the first place. stuart: not quarter-century ago henry blogging started his life as my intern. a little known fact. now this. you had me say it, money has no morality. doctor keith is next, does he agree with me or does he agree with the judge. judge napolitano: it can have morality but the use of money will go where it produces greater return. [ male announcer ] imagine this cute blob is metamucil.

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she took an early spring break thanks to her double miles from the capital one venture card. now what was mrs. davis teaching? spelling. that's not a subject, right? i mean, spell check. that's a program. algebra. okay.

persons a and b are flying to the bahamas. how fast will they get there? don't you need distance, rate and... no, all it takes is double miles. [ all ] whoa. yeah. [ male announcer ] get away fast with unlimited double miles from the capital one venture card. you're the world's best teacher. this is so unexpected. what's in your wallet? stuart: president obama's policy looks like the attack on syria is on hold, asking congress to delay a vote on the attack and choosing to let the un and russia lead diplomatically. i say syria is no longer a story that is moving the markets. but what story is? nicole: little and the triple digit gains but the fed's next move is going to hold these markets captive. stuart: what is your opinion on the fed? will they restrict the money they're printing? >> they won't. . stuart: they are not going to budge yet so they are not going

to print less. >> a won't change their motives yet. charles: i think they will cut by $10 billion. >> that is a drop in the bucket. stuart: the next one. the treasury, the united states treasury polk in $284 billion more in tax revenue through august. president obama wants even higher taxes, he wants an extra trillion dollars over ten years. any comment? charles: something of a conundrum. you have all this stuff and tax revenues coming in. how do you argue for more particularly when the other side says wages aren't moving. believing that is working. i was in d.c. and the only thing i see at tons of grains in washington d.c. building massive buildings. stuart: income tax revenue up, corporate tax revenue up, payroll tax revenue up. extra $284 billion and that is not enough. charles: it is never enough. stuart: that was my line, it is

never enough. citigroup, one of the largest mortgage lenders is in talks to lay off 2200 mortgage workers by early next year. they joined several other big banks. we got news this morning that mortgage applications are weighed down, refinancing applications laydown. >> this was yesterday when we were talking about this and i did reach out to lot of folks in the real-estate industry who said it is not just high interest rates that are causing this problem. it is how difficult it is for many people to get a mortgage. there are still implementations, changes taking place making it more difficult for people to get a loan, january 1st you have to go another way to prove your income. it is still very difficult. stuart: ben won't quit printing money when the housing market takes a dime like this. i don't think so. i think he keeps printing. this is what you have been waiting for. fox news contributor dr. keith,

you heard what are set on the show recently, money has no morality. let me explain this. i am appalled at america's policy in syria and the gassing of children but that won't stop me from cashing in on this by investing in stocks. i say money has no morality and you say? >> the exact opposite, which is why it is a privilege to be here. money has absolute morality because ultimately you can't make more of it or keep it if you aren't abiding by the truth. so ill-gotten gains disappear. companies that are valued in appropriately are due for a crash. ultimately this is a self correcting system which is why morality is built into the economy, truth is built into the. you can't keep it. stuart: ally immoral or a moral if i get out and make money on the backs of a failed american

foreign policy? >> the markets are saying this is a better course, not bombing, then was expected. that is okay. i don't judge you morally. on facebook i might. stuart: if i invest in a tobacco company i make money on it and my immoral or amoral? >> your values are showing. i think people can drink to some extent with impunity if they are not destined to be alcoholic, they don't get cancer from it by and large. if you are implying there's a problem with alcohol and it is for many people, your values are showing. you wouldn't want to invest in something you consider to be doing harm because then you are doing on. stuart: the defense department, defense contractors. >> you are on the side of the

angels because you would be defending the greatest nation the earth has ever known and still the keeper of freedom and our future. stuart: i think you are a little confused. >> it is true. stuart: get on the party couch. >> i think if you invest in defense contractors you are investing in keeping this country safe in a particular way. >> no an end to the argument. you can argue investing in mcdonald's, does that have morality. stuart: i will invest money any place. >> if you accompany to be exploiting minors for gold. child labor to do it. deceit and corruption and you thought you had a two year window there is no way.

and -- and the -- he is saying -- stuart: when discussing this if you are not here and coffee is an addictive drug. i think mcdonald's doesn't get anybody's that because they have every choice including salad. people get people fat. stuart: a much more serious and somber subject, 9/11, the twelfth anniversary. i want to know do you think 9/11 change america's psyche? >> yes but i hope not irrevocably so. what it set in motion is the kind of captive mentality, the same thing happens when a plane is hijacked and people aboard say you know what? i am starting to think like the

people who took his plane over. they want to be saved and in deer themselves to their adversaries and i think that the whole obama of apology tour, the election of barack obama was up manifestation of us wanting to say we are not that bad, don't hurt us. he doesn't like us, he hates us and we are electing a president -- charles: the stockholm syndrome you are talking about, when do we escape? >> good to be with another psychiatrist, we escape when things get bad enough from the failed psychological attempt, what is it? a form of denial. bad enough that just like an alcoholic falling on the pavement you say oh my god, this didn't work. trying to dodge and weave around who we are and pretend we are other than that by electing someone friendly to adversaries is not working, hence we will like the patriot, someone high on the constitution and someone

who isn't afraid to use power when indicated. then we will set things right. stuart: if i have been on the couch getting this analysis from you how much would you have charged me? >> why do you think you are not being charged? this is part of the psychological thing i can work with with you. defending bills, they don't get paid, i call your wife, nothing is working. i just want to be your friend. stuart: a friend? get out of here. dow is up 44, dr. keith is done. more varney after this. no two people have the same financial goals. pnc investments works with you to understand yours and helps plan for your retirement. talk to a pnc investments financial advisor today. ♪

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stuart: now call for something completely different world's first half soda is on the way to store shelves in japan, a new beverage, hot ginger ale, has apple flavor, produced by coca-cola, goes on sale next month. no word on whether it will make its way to the united states. payroll founder and microsoft chief bill gates has created an artificial a good goes on sale in the u.s. for the first time today the egg is made from plants, goes on sale today in wholefoods in california and could be available soon in consumer markets worldwide. donald from promising to turn an 89s post office building in d.c.

into a top luxury hotel. pennsylvania avenue midway between the white house and the capital. $200 million project.

stuart: let's go to nicole petallides, a series is a big loser randy want to know why. nicole: after market yesterday it was pumping up 4% and it is down 5% and one of the biggest shareholders, baker street capital, that group in a

research note found $7.3 billion of value to the company's 350 home stores in the 50 leased locations so that sounded like good news and that was a project. so now people are seeing the downside. stuart: if you want to watch the progress of apple, look at the bug in the bottom of the screen, apple was down $27 467 but let's look elsewhere, to make some money charles is here, clean polk. charles: following the stock for a while, of a refine the coal facilities and have a mission, mercury controls, make a lot of money on these new rules that are crushing blow quote companies that there is no choice. they have to find a way to clean up the hole. stuart: they use that technology or quit so bad as it. charles: that is the bottom line. you see tested 44 and from there my target is $50.

stuart: the president wants to kill polk. charles: we will still be around 40% polk. natural gas can't go much lower because these guys will burn off and it will be unprofitable so natural gas above $4 i think you have a nice market for coal and it is all the fastest-growing source of energy around world. stuart: using college tuition is high, yes it is. i have one of the reasons that might be happening. the new report shows universities offering ridiculous perks to current and former presidents. when penn state university fired that president in 2011 they paid him $3 million but that is not all. he remains a tenured and earning $600,000 per year while on paid leave. another example, president john sexton, univ. loaned him $1 million to buy a summer home on fire island, new york. ron meyer is with us, running

for conginia, says there should be an investigation. i agree with you, but let's deal with penn state. that is a state school. that is not private. he gets two more when he leaves and $600,000 a year because he is tenured? what is with this? >> i can't believe it. we've seen example after example. over 30 college presidents are making a million dollars peer and all those 30 receive some sort of government funding whether student loan, staffer or state schools so tuition has gone up 25% last four years we have seen more government involvement by national student loans and higher education is getting these massive bonuses, you retirement packages, paying off administrators, giving -- someone a nice loan, and what students, people my age are saying i can't afford my student

loan and look what these guys are doing. this is happening in the private sector, congress calls for an investigation. one reason we need younger folks in office, i can see my friends are suffering and i want to call for that because that is why we need folks who get what people a dealer with a young. stuart: are you the youngest congressional candidate running for office in america today? >> i will be deferred youngest ever elected if i were to win. stuart: you getting traction with this? obviously you are looking for the youth vote, you wanted, you needed. e.u. getting traction? >> absolutely. when i go door-to-door talking to young people that is what they're thinking, they wonder why they can't afford their college loans, can't find work, most people of graduated from a four year college that i talked to but they are underemployed or unemployed. people who graduated last five years are underemployed so people are frustrated with this and everyone thinks young people are focused on social issues,

that is three years ago because of what has happened under this administration, these policies young people are focused on how am i going to find a job, they for college, how are we as a generation going to survive. that is why we have an opportunity to reach out to those people and congress should be fighting more for these folks because we are in a great use the depression. stuart: a year the republican candidate in your congressional district or will you find a primary first? >> we have overwhelming support in my primary. we don't expect it to be competitive. stuart: when you are in, you are the guy. >> at this point yes. we have been blessed to have support from the old republican establishment which has been a surprise to me but it isn't urging that my party gets it. we have to go to different candidates with a fresh message and a fresh approach of we want to stay relevant and this is one way we can, start fighting for vulnerable people in our country who are losing because of what the government is doing. stuart: we appreciate you being with us, thank you very much. apple is down $28 a share, back

to $4.66, an enormous drop. i wasn't expecting that when i walked in this morning. charles: they have some issues. stuart: we would be the mainstream media's reaction to obama's speech after this. you know throughout history, folks have suffered from frequent heartburn. butetting heartburn and then treating day after day is a thing of the past. block the acid with prilosec otc, and don't get heartburn in the first place. [ male announcer ] one pill each morning 24 hours. zero heartburn.

stuart: the mainstream media, of i call it that the response to president obama's speech, the washington post says quote make the emotional case obama is making is better suited to a humanitarian intervention than an effort to enforce norms against chemical weapons. the new york times, met with officials on capitol hill at the united nations and foreign capitals flocking to embrace russia's plan as an alternative to force mr. obama found himself struggling to redefine the terms of the debate. the president missed the mark last night? >> he missed the mark by a wide margin. i tell you he spends the first part of the speech explaining why it is so import to go after syria and what the risks are the world including the united states. later in his own q&a session he announced himself the explain how syria didn't pose a threat to the military. i don't see how you reconcile 100,000 people dead including thousands of kids by traditional

means and see where it is that much different than a chemical weapons attack. stuart: i don't thing to solve anything on force. >> i am surprised they didn't cancel the speech. stuart: let's bring in liz claman who continues coverage of three days in a valley in san francisco. what do you have today? liz: we have migrated south to california in the hea have all

we have the head of sony music composing, the c o o of electronic arts going into the play station. what have they got plant? finally might splinter, semiconductor equipment company and co-ceo of shutter fly all day long live here, day 2 of our sixth annual three days in the valley. stuart: we are watching. more varney next. ♪ omething you really love, what would you do?" ♪ [ woman ] i'd be a writer. [ man ] i'd be a baker. [ woman ] i wanna be a pie maker. [ man ] i wanna be a pilot. [ woman ] i'd be an architect. what if i told you someone could pay you and what if that person were you?

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all your imptant legal matters in just minutes. protect youramily... and launch your dreams. at legalzoom.com we put the law oyour side. stuart: when you are out of time you are a time that connell mcshane as the next hour. connell: thank you very much a lot to cover this hour including

more on the exclusive report elizabeth macdonald has been bringing you throughout the day on the fox business network, citigroup set to cut 2,000 jobs. this could be big for other players in the mortgage industry and we will talk about that coming up. the president turning syria into a waiting game. the ball is in vladimir putin's court after president obama's address to the nation, new developments there as well. less than impressed the day after apple delivered the new fingerprint technology of its iphone investors are selling off the stock. we will talk about why that is happening and happy holidays. we have a hundred days until christmas and they are already commercials running, kmart is at it and so we will be at it as well. we start out with markets now.