♪ >> apple goes to china and opens up the biggest tech market in the world. good morning, everyone. tim cook, china mobile, it's a match made in tech heaven. it is a break through that will vastly expand the sale of iphones and ipads through thousands of retail outlets. watch that stock go. i have a pen and a phone, says president obama. and he will use them to go around congress. watch out. here comes the year of executive action and here comes

we heard it, a social network among teens 18 employees, we have the ceo. watch out. here comes "varney & company." ♪ [ male announcer ] this m has an accomplished research and analytical group at his disposal. ♪ but even more pressive is how he puts it to work for his clients. ♪ morning. morning. thanks for meeting so early. oh, it's not a big deal at all. come on in. [ male announcer ] it's how edward jones makes sense of investing. ♪ there's nothing like being your own boss! and my customers are really liking your flat rate shipping. fedex one rate. really makes my life easier. maybe a promotion is in order.

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>> i've got a pen and i've got a phone. and i can use that pen to sign executive orders and take executive actions and administer actions that move the ball forward. >> oh, you heard it right there. the president says he will bypass congress and employ his executive power to further his political agenda. this coming after his stalled effort to pass legislation on immigration and spending and late yesterday democrats' efforts to extend unemployment benefits, they failed. the president's message, if congress can't get it done, he'll go over their heads to implement policies he believes are best for our country. and expect to hear more of this today when he heads to north carolina to announce new plans to take to--

that he plans to strengthen the country's manufacturing sector. it's an interesting choice of location, by the way, for this speech. north carolina slashed its staten employment benefits months ago and the state's unemployment rate fell by 1 1/2 points as a result. one last point, north carolina's democrat senator kay hagan facing reelection will not be at the president's side. read into that as you will. time is money and yet again, all the action, the headlines, they're in the tech sector, facebook about to launch a digital newspaper the next few weeks, according to sources it's an app that will be named paper and collect stories from leading publications, but only one central location and amazon, about 30 employees at a warehouse location in delaware will vote today on union representation. if successful, it will be the first amazon location to do so. it would be a foot in the door for the union. netflix streaming king, looking to expand in france and germany maybe.

according to reuters, netflix have been talking to officials, about local laws regard it's operation. we talked about after monday's selloff is it time to jump? looks like a lot of you jumped. triple digits. here is the question today, are we back on track? [ male announcer ] what if a small company became big business overnight? ♪ like, really big... then expanded? ♪ or their new product tanked? ♪ or not? what if they embrace new technology instead? ♪ imagine a company's future with the future of trading. company profile. a research tool on thinkorswim.

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♪ stuart: thank you very much. more and more people using their smart phones while they watch tv. stay right there. here in chicago: here from chicago, drake and above. a triple day yesterday. it just wants to go up. >> we had one down day in the market rent covered. janet yellen has been very

clear. if you inflate stock prices and you inflate housing prices, jobs will follow. if it creates job in growth, where are the jobs and growth? stuart: you just cannot leave the fed alone. and that right? >> the only game in time. stuart: the bell has rung. i am prepared to say that the opening tread this morning is up again. here we go. apple going really big in china. tim cook says the company will have record sales there because of the deal with china mobile. this is a very big deal. break it down for me. what are they going to sell? >> china mobile has seven times this is driver -- the subscriber

as verizon wireless. it is a big deal. tim cook, the ceo of apple is then watch what is going on in china. not just in china, but around the world. he is calling it a world phone. stuart: you can get the iphone, at some point in the future, on all three of the major networks in china. not just china mobile. >> here is the problem, those folds -- it is the same for apple to consider.

stuart: thousands of retail outlets which were closed to apple in the past. >> that is right. stuart: i think it is a breakthrough. look at google for a second. it opened at a new high. $1149.59. that is as of right now. netflix looking to expand into germany and france. no impact on the stock. it is down $0.26. i will call that dead flat. sometimes we criticize. and i look precisely, very closely at five or six technology stocks. same thing every day. i look at amazon, google, netflix, microsoft and facebook. that is where the action is. that is where the headlines are

coming from. >> they are the benchmarks. in terms of the nasdaq bouncing yesterday, the composite made a new high. that is reflective of those that you just mentioned. plus the game changers that are in the technology composite. america has always led. it will continue to lead. that is where people are focusing. stuart: i know sometimes you bring the stocks that pay high dividends. is your focus, as a market analyst, someone who guides investors, is that your focus, too? >> not so much in terms of when they are at their highs in in terms of where they are there. especially if they had any kind of yield. we are looking for a pullback.

we are looking for other technology stocks. we will rise and appreciate alongside of these. i think we are at the beginning of a bull market. stuart: you have attracted the audiences attention right there. stay there for a second. i had to break away to look at bank of america. nicole, give me the stock please. nicole: right now the stock is up 2.8%. it hit a new annual high of 1732. stuart: 34164 is where we are at right now. i have three automakers for you. news on each one. first of all, we have general motors announcing its first dividend in six years. did we have toyota.

the number one retail brand in america for 2013. number three, tesla. upgrading, it is not recalling 30,000 model s power adapters, certainly not, no, it is upgrading. charles, do you pick any one of them to buy the stock? >> i like holding a stock. tesla is getting close to its highs again. no one else will compete with it. go ahead and jump in. i'm not sure they will be able to sustain that dividends.

stuart: got it. thank you very much. they call it the second screen appearance. let's bring in chris from silverback social. chris, welcome back to the program. >> good to see you. stuart: you put the company on a social network. that is what you do. >> absolutely. stuart: when i dvr something, i go past the commercials. >> you are in control.

they power the energy for the buffalo bills. instead of running an advertisement, we send a strategist that is at the stadium that is live tweeting, tailgating with the fans, talking to the fans. running contest on facebook, twitter, before the game, as the game happens and then post game. they announce the most energetic player at the end of the game. hugely powerful. this has never been seen before. stuart: have you any way of counting the number of people? >> absolutely. >> the numbers go through the roof. they are doing it in conjunction with radio advertising. >> i like how you are holding -- [laughter] >> i hold on to it all the time.

they use things that are powered by a company. >> we all have add. >> you put them on the social network. i guess the response to what you have done, that blue rock energy makes more money. do the facebook's in the twitters of this world make more money? >> absolutely.

he gets excited. we will take that audience and we will capture that audience. silverback is doing this on behalf of our clients. once the chatter starts to happen, you run some ads. blue rock is making money. facebook and twitter are making money. stuart: chris, you are onto a winner. i am sure that business is booming. check the big board. where are we. we are up 33. reaching 164 on the dow. facebook losing its cool. young people turning away. do you hear that, chris? [laughter] stuart: plus, they are still hot on social media. one of the places they are going

to is something called we heart it. we have the ceo after this break. ♪ [ doctor ] and in a inal trial versus litor,

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stuart: here we go. wednesday morning and we are of. at least in the first 14 minutes of business. where is the price of gold? 1235 is your price per ounce. we are down nine dollars today. price of oil. ninety-three dollars per barrel, as of now. we will call this the charles payne principal. hitting a new high because it has named a new ceo. not much. but a new high. new board number at best buy. new board member.

apparently, investors like him. new hide there. keeps on going up. watch out, facebook. there is a new social media site for teens. they have 25 million monthly users. we are told they are gaining new users each month. they only have 18 employees. here is the ceo of we heart it. he is from san francisco. thank you for coming. you are adding roughly a million a month. >> exactly. stuart: 80% of your users are under the age of 84? >> exactly. facebook is a very successful and great service.

the reality is as large as facebook is, teenagers want to have a place that they can call their own. everyone is on facebook. stuart: it turns my teenage daughters off and they go elsewhere. >> young people want to have a place that they can call their own. >> it seems like they don't use facebook anymore. that is according to the magazine atlantic. >> facebook is a very successful company. stuart: by successful, i expect you to make money. make profit. are you doing that now? >> today, we arr focused on a product in the user.

we are not focused on it right now. we are very excited about the potential to monetize. we serve over 60 billion images a month right now. when you think about the ability to put in these images, real potential there. stuart: you have to explain this to me. what is that? >> it fits very well. stuart: it is like product placement. it pays you money to put a coke bottle in a visual image that is displayed on we heart. >> if it's completely into the metaphor of our service.

people can follow the entity of that image. if the image is consistent with our service, it becomes very popular. we are not focused on the revenue right now. we are focusing making sure we have a revenue that works with our users. stuart: when are you going to go public? >> our goal is to build the company and continue to focus on the users. stuart: you will not employ that many people. >> today we have 18 employees. stuart: you are not exactly a huge employer. you are a concentrator of wealth. you have a platform.

25 million people using it. that is the concentration of wealth. i am not critical. that is just the way it is these days. our employees are in san francisco and having a good time. stuart: we heart it. very interesting company. great story. thank you for joining us. new york, san francisco prosecutors are teaming up against monster energy drinks. it all has to do with children. we are on it next. ♪

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stuart: a couple stocks to check. bank of america fewer losses and the mortgage department.

it is at 1730. netflix thinking of expanding. that stock is down two dollars. we will change it up a bit today. my take will be in the 10:00 o'clock hour. the link between economic freedom and prosperity beard might take coming up around 1025 eastern this morning. is monster beverage marketing directly and elaborately to children? san francisco city attorney and new york state attorney general are joining forces to find out. it sounds like a witch hunt to me. >> here is what is going on. the issue is caffeinated drinks allegedly linked to the deaths of teenagers. the companies themselves safe they do have health warnings out there about these strengths. do not drink more or -- more

than two or three a day. do not drink if you are pregnant. stuart: how do you know if they are going directly to children. >> the reports need to be clear on how exactly they are advertising to children. stuart: e cigarettes. some democrat senators led by -- they are slamming the use. they say celebrities should not be promoting the use. lawmakers are doing everything they can to knock this industry on its head. big names, you know, coming to "varney & company" next hour. is government to blame?

president obama comparing himself to the miami heat. >> they have now won twice. it has gone to final three times. sometimes it feels like they are still fighting for a little respect. i can relate to that. ♪ ♪

[ cellphones beeping ] ♪ [ cellphone rings ] hello? [ ma announcer ] over 12,000 financial advisors. good, good. good over $700 billion dollars in assets under care. let me just put this away. [ male announcer ] how did edward jones get so big? could you teach kids that trick? [ male announcer ] by not acting at way. ok, st quarter... [ male announcer ] it's how edward jones makes sense of investing. ♪ >> another delay for obamacare? the president goes to north

carolina for the home state senator stays away and the stocks keep coming back. and we cover it all in our second hour, plus this. the polls say we don't like government, but obama gives us even more. kennedy, the libertarian is here. big brother won't go away. eat in a restaurant and the manager knows all about you. the judge on that. remember pajama boy, the guy in onesies trying to sell to youngsters? comedian sherrod small will have thoughts on that. jg wentworth, i want my money and i want it now. the ceo is here. how much do they actually pay? and a judge says 700 million is not enough to pay for concussions in the nfl. what do you say? ♪ big government is our country's biggest problem. well, that's according to a new

poll from gallup. 21% say government is the biggest challenge for our country, more than any other issue. remember speaker boehner? same story, he's backing it up in a statement he made yesterday. a majority of people think our economic problems are now policies of the present, that's government, not the problems of the past. here is kennedy, one of the hosts of "the independents" here on fox business. kennedy. >> stuart varney. stuart: i've got two names. >> yes, you do. i have to say it a bunch of times and i feel better. you're libertarian and you saw two stories, what speaker boehner had to say and that gallup poll. you think that the tide is turning away from government, do you? >> absolutely. i think that-- >> or is this just wishful thinking? if that's what you-- >> no, it's not wishful thinking, i could say this all day long, but this is a reflection of people polled by gallup. a large cross section,

different kinds of voters and see that heavy handed government, rather it's entitlement or defense, talking about two wars and brand new entitlement affecting the younger generation, women, latinos, voters of every stripe is saying too much government is just too much. >> will they vote that way? >> that's always the question. always the question, because-- >> but you think that times have changed and that they will vote in favor of less government. do you really think that? >> i do, i have faith in people, i have faith in american voters. sound like i'm running. stuart: you're going to say take away my entitlements, i will give away some of my entimement payments, i want less government. >> i think that our entitlements are failing us. it's not like we're living in mansions based on social security and obamacare. that's are entimements, even the baby ones we know that social security is going to run out except for the generation that's getting them or is on the brink.

for the rest of people and people coming of age in this political universe, no, that's failing, it's expensive and it limits mobility. stuart: stay right there, kennedy, we're not done with you yet. and this is the a-block and you've got two more appearances. check the big board, it's wednesday morning and stocks are up again after a triple digit gain yesterday. we've almost erased all of monday's losses up nearly 70 points right now. charles, you're here, welcome. we said it's a buying opportunity yesterday. do you think people listened to to us, the dip. charles: i hope that people aren't buying for every dips and waiting on dips to buy the market. i hope they're not waiting for the big one to buy the market. i hope they're focused on owning great companies. now you talk about the tech companies, they're growth, growing by leaps and bounds and the market typically rewards companies that are growing the top line, particularly if they have pricing power and expanding margins and a lot of the tech companies fit the bill. stuart: you're not going to have a fight with sandra?

>> i don't care. >> i disagree, i think you do care. >> no, i don't care about what you say because i deal with individual investors every single day and you guys don't know what you're talking about. you throw stuff out there, but when was the last individual investor you spoke to. >> today. charles: someone just got back into the market? >> no, he manages money. charles: no, no, individual investors people out here watching the show afraid. not wealth management, pete smith who owns a plumbing company. >> let me make a quick point. the market's still down year to date. the dow jones industrial average and the s&p 500 down. what is the big difference this year versus the latter part of last year, the fed has begun tapering. charles and i's big argument respectfully has been that the fed has driven this rally, he disagrees. charles: it doesn't matter. >> all of a sudden when the fed starts tapering, the market is down this year, i'm going to point that out. stuart: i'm going to move on. charles: it's ridiculous, i mean. >> and with the-- >> i mentioned fireeye, 15, 16%

of fireeye in a month and nothing to do with janet yellen, nothing whatsoever. okay, amazon up has nothing to do. i mean, listen, we have effectively scared the whole public watching this network out of the market. they've missed the most incredible rally in history. >> because people need to understand a rally, they don't want to buy just because the market is going up. if they're going to buy and hold, which most investors do, they need to be warned at what could be coming down the pipe. charles: could be. stuart: hold on, my attempt at marriage counseling failed. >> we do love each other. apple. hold on, charles, you'll get back. and chinese, how about the stock, nicole? >> i'm uncomfortable and go ahead and say they're both right to a certain extent. can they just agree? let's just take a look here. apple up 2 1/2% and i understand with are they're both coming from. 559.56 because tim cook happy calling the whole deal incredibly optimistic about the whole deal with china mobile. the sales start on friday and china mobile obviously, the

world's largest carrier by subscriber. this will be huge and they already hit records in greater china for the fiscal first quarter. so, we'll see what it brings for them. stuart: we're calling it a break through into that market. that's a breakthrough and the stock is breaking out. up 13 points. give me google, please, i know it hit a new high earlier. where is it now? >> it continues to jump up, 1148. new record highs today. again, at one point 1155. yesterday, i don't have my notes from yesterday, but i recall, a price target at 1300 and the like, from the likes of j.p. morgan and so, analysts still think that this has room to the upside. stuart: and this market keeps going up, too, we're now up 85 points on the dow industrials and puts us at 16,459 as we speak. and let me-- >> the international growth is the main thing driving this market. these large corporations like an apple. being able to sell products to the rest of the world, is what's really driving the earnings. the bottom line, what really makes the stock go up?

when earnings improve. what is making earnings improve at least for the largest corporations selling around the world, and average americans seeing a dirt road and they're seeing a four seasons and we've got to be able to communicate. stuart: that's why we concentrate on a handful of stocks and no doubt about it. look at amazon, microsoft, google, facebook, and netflix, those are the six. >> part of the reason why international sales have been so strong is because of the fed's policies. they have devalued the u.s. dollar and they have increased international sales for u.s. corporations. the second the fed changes things and interest rates start to go higher, the dollar starts to strengthen, that may call into question that international strength that you're referring to, charles. charles: i doubt it. >> that's a fair-- >> and we have got the stocks and that's what's moving the money and that's the truth. and the u.s. falling, was it

10th or 9th? it's falling to 12th position in the heritage foundation in the world economic freedom index. kennedy is still with us. this, to me, paints a clear picture. without economic freedom you don't have prosperity. if you restrict freedom, your prosperity withers away. >> i absolutely agree. it's a direct cause and effect relationship. when you limit mobility, you limit growth. if people don't have their own money they can't do what they want it. and i know you guys are fighting, money is about freedom. they say money doesn't buy you happiness, it may not, but buys-- >> if you look at all western countries that adopt this sort of thing, france is so far down the list, greece is down the list, russia, all of these countries are down the list, it's these nations that haven't had these draconian tax policies, spending, i mean, that's where it's killing us, i think spending we're like 134th and the government is too big. that kind of stuff.

>> it's too big and taxes will never be able to support that kind of spending. and it's just not the solution. stuart: but, you know, market orientre being demagogued to death and that's going to count at the voting booth, in my opinion. >> i think you're absolutely right. and i think, you know, you and all the people like you need to do a great job of illustrating that to the average person. >> hey, what about the big news, guys? hollande, he's saying he's got to cut taxes and to corporations in france. >> of course. >> he's telling them you don't have to foot the welfare bill anymore. >> by the way. charles: put that money into creating jobs. stuart: but he's going with a 75% tax rate. >> sure, can't change it overnight, but that's a gigantic move. stuart: let's cap this off. headlines in the financial times, got it here. hollande, president of france, pledges 30 billion euros worth of tax cuts in a bid to boost the economy. maybe the socialists have seen the light, but i don't think

so. remember beanie babies? their creator got 2 years probation for tax evasion and a 53 million dollar civil penalty for tax evasion. charles, i know you've got a lot to say about this? >> i do. i think this is a great poster case, child, if you will for the attack on capitalism and success in america. here is a guy that created something from nothing and made a lot of people happy and given so much money away to philanthropy. he had an account over in europe didn't tell his accountant about it and made money off it. penalize him 27 million in interest and then another 53 million in a civil penalty. i think the tax bell was less than 10 million. you want to talk about teaching someone a lesson. if some people are upset only two years probation and didn't go to prison, this is a man that's given money to kids and just millions and millions of dollars. >> that's why the sentence was so light. the judge specifically referenced. charles: shouldn't have been a sentence at all. if a guy gives up 70 million

dollars for not paying 9 million dollars. >> should one take that into consideration, he broke the law. >> well, i mean, it's still an apple-- >> talk about morality and money. stuart: here is a subject i don't think you will disagree on, hold on. gisele bunchen. charles: okay, you got me. stuart: you know who she is, look at this, she's a supermodel. we know that. underquire for riding on a quad in costa rica holding her baby girl. look at it, no seat belt. no helmet. three moms here. and sandra smith. sandra to you, what do you make of the picture. >> this very much angers me. i'm sure she would defend this saying she was driving 2 miles per hour to get from one spot to the other, i completely disagree with this. if she hit a rock that baby could go flying, i'm unsafe. i'm a big fan of continuing your life when you have a baby, but take safety precautions. stuart: nicole. >> i'm on the complete opposite

side of this one. i definitely am a huge risk taker and i don't believe-- i think that i would never take my baby's risk, any risk for my baby. i think i could easily handle that vehicle and my baby without any risk at all. stuart: whoa. >> i think it's great and i wish i were on that bike and thought it was the coolest picture ever. stuart: whoa, whoa, kennedy. >> the world is safer than ever. the worst thing you can do as a parent is to give into the false hysteria that everything in the world is sharp and it's meant to harm you and we need to be insulated with laws and helmets at every turn. if you go to a place like costa rica. before i had kids my husband and i were in greece and i saw a girl riding on the back of a moped with no shoes and i was like, oh, my goodness and i realized there are certain cultures where, you know, we don't hang onto these idea of safety. stuart: 'cause they don't have liability lawsuits in greece or costa rica and that's the truth. lady, thank you one and all. >> leave it up to parents to

decide. stuart: i'm with you. you've seen the ads and you know the saying, it's my money and i want it now. so, exactly how much of your money do you go et -- get? yes, the jg wentworth ceo is here now. ♪ i need cash now, call jg wentworth, 8 7 877-cash now. 877-cash now♪ [ male announcer ] this is the story of the little room over the pizza place on chestnut street the modest first floor bedroom in tallinn, estonia and the southbound bus barreli down i-95. ♪ this magic moment it is the story of where every great id begins. and of those who believed they had power to do more. dell is honored to be part some of the world's great stories.

that began much the same way ours did in a little dorm room -- 2713. ♪ this magic moment ♪ there's nothing like being your own boss! and my customers are really liking your flat rate shping. fedex one rate. really makes my life easier. maybe a promotion is in order. good news. i got a new title. and a raise? management couldn't make that happen. [ male announcer ] introducing fedex one rate. simple, flat rate shipping with the reliability of fedex.

>> charles, make us some money, please, with work today. i know it's a new high today. what do you like about it. charles: this is a guy, dave dufffield, a reiteration and i think he was the best ceo out there. and i said the first time he fired someone he cried. you kind of snickered at that. and sold his peoplesoft and anyone who got fired he set up a fund to help them out. people loved working for this guy. and they're working a pure cloud play and i think that oracle might step up, sap, rather, to take them over again, but revenues up 76% last quarter. subscription revenue up, margins are expanding and not

making money, but highly, highly, it's a cloud. stuart: it's a cloud storing information on a cloud. charles: specifically for businesses to manage their employee's workday. stuart: i think it's a buzz word, if it's a cloud play, that's big, growing, so workday. charles: and it's got proven management behind it. stuart: that makes a difference. charles, thank you. you know their apps and we played their new ad campaign for you. you need cash now from your structured settlement call them up and they'll get it for you now. there's a cost. how much is the cost? this morning we have the jg wentworth ceo with us in new york. welcome to the program. >> good morning, nice to be here. stuart: i know the ads. >> yeah, thank you. stuart: i want my money and i want it now. have i got that right? >> exactly right. stuart: the guy shouting out the window. and if somebody's got a settlement from an insurance company, and spread out over the years and you give the

client cash upfront and you collect over a period of years. that's basically your business. >> right. stuart: i want numbers, if i've got a settlement from an insurance company, a 10-year period, for example, and they're going to pay me $100,000 over that 10-year period you come in and you buy at that contract and you give me cash upfront. >> correct. stuart: how much do i get? >> a couple of things people need to understand, the pricing is based on the insurance company and the shape of the payment stream, right? we're going to discount on that average today about 11%, so for $100,000 over ten years kind of pro rata, that would probably be $65,000. stuart: that's not bad. >> that compares for sources of liquidity for the customers. what are the other choices, an advance on your credit card or a pay day loan or a personal loan something like that. stuart: during the break charles asked a good question, are you in the usery business? >> listen, there's a lot of

legislation coming down on people trying to get people get cash ahead of time and whether it's pay day loans-- >> you charge interest on it. >> not even close to that business. again, our average is about 11%. what the people don't know every time we do a transaction, we have to get a judge to render an opinion it's in the best interest of the customer taking into consideration the welfare of their dependents. so, 100% of the time the judge looked at the transaction and says the pricing makes sense to him and use of the funds makes sense. charles: i'm curious about your flow. like where, where do all of these customers come from? your ads, you never stop advertising, are there this many cases out there? i mean, these cases get settled, it feels like an assembly line. are we that lit tt tt tt tt tty- litigous of a society. >> and there's a lot of markets

out there to talk about. the thing you should know, think about it, the statistics, 40% of americans have credit card debt today. you think about 40% of that 100 million have credit card debt and every one of them could sell me part of the structured settlement, and pay off the credit card debt and work. stuart: you're making a gamble here, because how do you know that inflation won't take off in years to come and completely erode the value of the money that you down the road are going to get from the insurance company? >> so what we do, we purchase these payment streams and purchase a pool of them and security advertised and sell a triple-a rated bonds and we sell about 200 million dollars a bond, three times a year to investors. so we hold them for a few months and sell them off. stuart: so i could buy your bonds issued by you. >> correct. stuart: triple-a rated. >> yep. stuart: i get an x interest rate on it and i'm investing in

the cash payment for structured settlements. >> correct. stuart: that's what i would be doing. >> exactly right. stuart: that's how you finance the operation? >> that's how we finance the operation. lenders lend us money in the short-term and put it into a warehouse lender and build up a large enough pool in structured settlements in that facility and then we securitize them. stuart: who is your advertising agency, pretty good. >> a whole series of writers we've used and we're excited about it. stuart: thank you for being with us and explaining this. it's a fascinating business and i think everybody knows about it. >> thank you. stuart: jg wentworth. up next, my take on the link between prosperity and economic freedom and why we're losing ground. the dow is up 100 points. [ female announcer ] who are we?

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it is not recalling them. stock is up the bid. general motors announcing its first dividend in six years, that stock is down 2%. do you remember the john bulloch? is not working. the latest on obamacare and read i comedian showed small here with a job bobble and we will ask about this viral video, the so-called double baby, a promotion that scare a lot of people. there is a link between economic freedom and prosperity. when a society offers opportunity, as that is what i call freedom, that society is likely to offer widespread prosperity. unfortunately america standing in the freedom state is falling to. that is why our prosperity is at risk. here it is my take. america has slipped to number 12 on the economic freedom list.

that is shocking. 114 countries took steps to free up their economies to private enterprise. 43 hit new freedom highs but america keeps falling. we are getting less free economically. this according to the heritage foundation and the wall street journal. what is going on here? look no further than president obama's all government all tpol regulation, more debt. that is our economic freedom think away. slow-growth, high unemployment, crushing of the american dream, that is the result. in contrast look at australia, new zealand, canada. they all rank above america these days. wasn't always so. denmark is above us, switzerland is above us, estonia is above us, bahrain is right behind. today the president travels to north carolina to talk about the economy. i guarantee there is no mention of the link between freedom and prosperity. you will hear the exact

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stuart: this justin target is doing damage control, the big pre-christmas the debris, send this e-mail to customers moments ago. i am writing to make you aware that your engine, michelle ng address, or inga address may have been taken during the intrusion. i am truly sorry this incident occurred, sincerely regret any inconvenience it may have caused you. the company also announcing it will be offering one year of free credit monitoring for customers who were affected by the data breached. another day and other obamacare delayed. the department of health and human services announcing people with preexisting conditions who have not yet secured another calm insurance plan have the option to stay on their existing preexisting condition plan until march. it is another delay. they keep changing it.

charles: isn't this the gem of the whole thing, the crown jewel of the whole thing that everyone can agree on? stuart: less than 30,000 people signed on for a preexisting condition plan through the exchanges. charles: absolutely an easing. connell: the work out. stuart: you got to be an optimist. >> got to be optimistic about all this. stuart: optimistic about obamacare. >> i'm the only person of this happily that doesn't have health care. stuart: as i said the frequent read i guessed shared small is here with us this morning, a couple things to take off. you remember this, the obamacare at going to young people, the pajama bowl and add is not working. when you saw that picture you must have had a field day. >> you are trying to get health

care out or get guys not laid? you can't walk around in pajamas and have a girlfriend. the virtual girlfriend but you have to build her. stuart: you had a field day with it. >> you can't tell people how to do it. you can't tell them to put on pajama pants. stuart: is onesy. the very word is the turn of. the president and miami heat apparently have got more in common than you might think. listen to this. >> this group has won twice but it has won three times and sometimes it feels they are still fighting for a little respect. i can relate to that. stuart: not sure i get it. >> the rich black millionaire, looks great in shorts. stuart: what have you got? that is what you got to say?

>> two terms, they went two chambers. charles: what about the chip on the shoulder part? they both have a chip on their shoulder, and their greatness hasn't been recognized. >> their greatness will be recognized after they get out of office. talking about lebron james of course. stuart: thank you for helping out with that one. i hadn't a clue about that story. another one for you. this is really good for you. a clothing retailer under fire because there released pictures of these women in what they called plus sizes. does that look plus size to you? >> that is not less size at all. that is abusive. even if there are plus size, changed the name because it is offensive to women. you can say you are a model but you are a plus size model. why can't you just stopped at model? charles: what would you put? >> healthy.

a healthy model. big boned. i am fire hydrant like. stuart: we have to have you back on this show. charles: you don't have health insurance right now. stuart: listen to this one. look at this video. the demon baby, took over the streets of new york city, a viral marketing campaign for a movie. it is a prank obviously. the baby sitting quietly in the stroller, an unsuspecting person comes by, check out a child, it will pablo and growl and scream. the youtube video got 4 million hits in a few hours. >> i grew on the hood, there is nothing more dangerous than a baby stroller by itself on the street. leave it alone. it is a sedna. the baby is up to something. it is 3:00 in the morning you see a baby in a baby stroller by

at self walkout of the way. stuart: do you have your own money? >> i kind of. but when you invest? >> some. stuart: stocks? >> stocks, bonds, in c i stuff. stuart: you are looking after yourself. >> i do have an accountant. people seem shocked by it that. stuart: is a very personal question. a lot of people don't like answering it. >> i answer all questions. i bought it from obama. i will vote next time for chris christie. stuart: really? >> lose a couple pounds, i like his attitude but somebody messed with me in fort lee, i will shut the bridge down as well. stuart: you might well be on this program. good stuff, see us again, good luck. i am going to say again, your

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stuart: watch out. apple going really big in china. apple's chief tim clark says they will have record sales because of the deal with china mobile, the stock is up $11, big mean for big stocks. google hit a new high earlier today, still moving hire still, another $2, or $11.50 one cents is the price. netflix may be looking in germany and france. the stock is down big, $12. strong profits at bank of america, mortgage losses much less than previously. the stock is up 2.8%. is upgrading, do not say recalling, what could cause fires. the stock is up 153. it is a rally, the dow was up 89 points coming all the way back to monday's big loss. [ male announcer ] e new new york is open.

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move here, expand here, or start a new business here and pay no taxes for ten years... we're new york. if there's someing that creates more jobs, and ows more businesses... we're open to it. start a tax-free business at startup-ny.com. stuart: $765 million settlement for nfl players who suffer from concussions the late, and we have been saying all along 3-quarters of $1 billion the nfl agreed to the these injured players may not be enough to cover the players to come forward with concussion related injuries. more on this later. to nicole petallides, twitter moving to $60 a share. nicole: what i am looking at, $60 a share, 3.4%.

we know it has been beaten down, analysts caught on twitter again and you covered the same stock and you were saying at the top of the show, they are just hot and people interested in them. stuart: it is amazon, google, microsoft, apple, netflix, facebook, twitter. those are the stocks people looking at and putting their money and we cover it all the time and you do too. new details on the nsa spying scandal. the new times reports the national security agency has implanted software on 100,000 computers around the world giving them access to the information on those computers creating a global highway for cyberattacks, and reports the nsa is using secret technology that allows them to implant the software on computers that are not connected to the internet.

judge andrew napolitano is here. you have a problem with this? judge napolitano: anybody who believes in the constitution, anybody who believes in a natural right to be left alone, the natural right to privacy should have a problem with this. it is a very interesting step to foreigners. theoretically the constitution regulates the federal government wherever it goes but as a practical matter, the attention to its interference with the natural rights of foreigners particularly a foreign government has been lessened and the court has said that as a political issue. you don't like the president lane with foreigners elect a new president but if the president toys with americans that is an issue for us. in this particular case i can understand the argument. if the chinese military is offensively interfering with our use of the internet, why not engage in cyberwarfare against

the chinese military? that is the argument of the nsa. stuart: the nsa did this, implanted the software into the chinese army computers because they were coming after us. judge napolitano: the implantations no doubt are limited to the chinese computers, the software probably because we don't know the true answer to this because the nsa will not reveal what it knows. the nsa wouldn't tell the two judges who ruled on a everything but judges asked of them.st wilr an answer or construe silence against the person being silent. we don't know that the nsa has not done this to the rest of computers including in the united states. the nsa has mastered the art of hacking and that is a federal crime no matter who does it and they mastered the art of hacking computers all over the world. you might argue to me i am

willing to tolerate the nsa staring back at me when i am sending an e-mail from my home at 9:00 at night in return for keeping me safe. i would argue the constitution doesn't permit that no matter the game. stuart: do you have a problem with the nsa implanting software in computers in china to see what they are doing against us because i have no problem with that whatsoever? judge napolitano: i don't even believe there is a constitutional argument against that accept that a governmental entity with that kind of authority operating in secret and answerable only to the president will not restrain itself just to those foreign countries that wish us harm. those who wish us palmer are neutral to those that wish as well to us. general david petraeus acknowledged that they hacked into computers in microwave ovens, in dishwashers so they

know when we are in our kitchens using them. stuart: got to find out which rinse cycle and using. hold on. i got to get another stock pick. another subject for you. not just the nsa tracking you. retailers are now using a cellphone to track your daily habits. let me explain thissone. you walk into a restaurant, pay the bill with a credit card, that restaurant manager using this gadget or software or whatever now knows a lot about you because of your credit card and what your credit card number has told that restaurant. judge napolitano: did i go to a nightclub later? how many drinks it i have? judge napolitano: that is a violation of my right to privacy, mastercard or visa or whatever i use.

judge napolitano: whatever card i am using, legal as well as moral obligation. somebody has come up with an apps that let the guy out restaurant figure out the last time i used that credit card. the credit card company is inadequately protecting me. i may even have a class-action against them. charles: your opinion on this google acquisition, and every facet of our lives, a private company, is there anything in the constitution about that or is it just everything up for grabs? judge napolitano: you almost sound like woodrow wilson and theodore roosevelt who feared railroads 100 years ago becoming too big and bigger than the government. i suppose the only argument you can make at some point i will

not be able to escape google. right now i can escape and not do business and keep my private business but it might be impossible. stuart: wait until the google gets into the drone business. president obama promising to sidestep congress, get his agenda done through executive action. we will explain next. [ me announcer ] this is the story of the dusty basement at 06 35th street the old dining table at 25th and hoffman. ...and the little room above the strip mall f roble avenue. ♪ this magic momt it ishe story of where every great idea begins. and of those o believed they had the power to do more. dell is honored to be part of some of the world'great stories. that began much the same w ours did. in a little dorm room -- 2713. ♪ this magic moment ♪

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stuart: you might call it a sign of the tongue, senator rand paul just speaking, joined snapped at tiexiera behind-the-scenes photos and videos. another reason ww focus so much on tax on "varney and company". make us some money. what have you got today? charles: all little non tech, they make railroad cars. they dominate this business big time. and will continue to do well. they bought a company with containers that is a smart move, those oil spills, what will happen is a lot of regulations that will force new railcars, that will be a bonanza for these guys. stuart: your original thinking,

you think -- charles: before that their earnings guidance was moving higher and higher. just an amazing company, huge margins and before you get keystone, you get double hulled rail cars. stuart: very good thinking, congratulations, young man. the president said he will bypass congress and employ his executive power to further his economic agenda. you still here? what do you make of that? judge napolitano: a hundred years ago, an administrative end of government, a group of bureaucrats not answerable to the public, answerable only to presidents when they.the head of administrative agencies, that is how the president of the united states can get the epa to do things congress declined to do. how far can he go? stuart: he cannot force the spending of money. judge napolitano: that hasn't been budgeted. but congress has written laws to give other presidents tremendous

wiggle room that now belongs to barack obama to enjoy as he sees fit. stuart: not being a legitimate when he says i am going around congress. have a pen and the phone. judge napolitano: he is putting his ideology in to play which is to rack up federal regulation of private behavior in a way that the congress authorized presidents to do. when the congress refuses to enact in the environmental piece of regulation he can get the epa to do. a terrible defect in the system, congress's fault for letting previous congress's do it. stuart: he is making the speech on the economy. i don't think he will talk about going around congress. what is he going to say? charles: he will tout manufacturing again. he will tout bringing back the manufacturing miracle and bringing jobs back to america. the best way to do it is our energy. the fact the we have natural gas so cheap in this country

mitigates the cheap labor abroad. stuart: he is not going to do it. and dick will many democrats appear with him? stuart: a democrat senator from north carolina, k hagan, is not going. she will not be at his side. judge napolitano: difficult reelection. last thing she can afford the photograph of her in daily newspapers in north carolina embracing a very unpopular president. stuart: on that note we will leave you very briefly. it is a rally, dow industrial average up 95 points, 16469, how about that? we are losing our economic freedom, your take on that next. welcome back. how is everything?

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stuart: earlier i gave you my take on america's economic freedom and our standing in the freedom stake is falling along with our prosperity.

here is what you had this a. randy. it is the plan of democrats, lower the standard of america so the rest of the world can catch up. surely says the only thing obama is good at is lying and selling the american economy down a river. i don't use that word. i will not use that word in connection with the president. william and this is the great depression of the 20 first century and maybe even of all time. and was deliberately crafted and contrived by obama. what are you talking about? what to the oppression, may i ask? netflix, charles, now down 4%. this may be because of net neutrality, that ruling. charles: no doubt that is what it is about, content providers may have to pay a toll to get information from them to you or to us. this is a huge deal land divide the lot of people. stuart: the news was out

yesterday. it was down 4%. we are done. connell mcshane, it is yours. connell: target is the poster child for hacking of personal information. now the company has to answer to lawmakers for that. on capitol hill those lawmakers can't seem to work anything out on the extension of unemployment benefits so we will bring in wayne rogers. tomorrow's business today, developing a way to control your computers and hand-helds with only your breen. when kickstart project could make that reality. prepping for the super bowl. getting close to. security measures in place to protect players and the fans. we have that and more. dagen mcdowell joins me from markets now. dagen: i am so leaving town that weekend of the super bowl. i am so leaving town.