♪ stuart: welcome to the command economy. tonight the president will dictate wage levels to federal contractors. good morning, everyone. by executive order, 10.10 collars an hour will be minimum wage to federal employees. this only applies to new federal contracts. it is in tonight's state of the union message. the president threatened to go around congress and he is doing it. apple executives, whoa, they must be scratching their heads this morning. apple reports profit of billion dollars a week on record sales but the stock tanks. may be time to buy. here come the fireworks.

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stuart: two new polls from "the washington post" this morning showing support for president obama is dwindling. here are the numbers, 63% say they do not have confidence in president obama to make the right decisions. more than half the country now think that is president obama is not a strong leader. now this is the backdrop to night's state of the union message the country does not appear to be happy with his leadership. we'll have more on this later. tonight, president obama will detail what kind of executive action he will take as he addresses congress. he will outline how he will get around them. that is happening. time's money so in 30 seconds here are your obamacare headlines this morning. first one, the health law dumped $1.2 billion into six faltering state-run exchanges.

in those states, only, 78,644 people were able to sign up for coverage. 1.2 billion. next, california, only 1/3 of the people who lost coverage under the new law have been abl3 to sign up for new insurance. the administration continues to use california as an example of the law's success. here's the last one. according to a new study by the american action forum, that is a conservative group, six out of seven uninsured young people would save money by opting out of obamacare. that study says that for youngsters, it is a lousy financial deal. to the markets, when the dow opens this morning we're expecting roughly a 40-point gain but for apple, we're looking at a 40-dollar drop, we'll have that for you after this.

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[laughter] >> what's so funny? >> i'm watching videos of idiots wearing the glasses and not paying attention to the world around them. look at these jerks! ah! ♪ stuart: just the "the simpsons" making fun of google glass and making fun of that.

here comes the opening bell. let's go to chicago for larry levitt. larry, durable goods, orders down, 4%. housing numbers, poor, jobs numbers, poor. are you going to tell me janet yellen will pull back on the punchbowl at the fed meeting this week? >> seeps a strange coincidence we get the bad numbers and janet will get her first chance to really talk. so i completely agree the punchbowl will stay the way it is, stuart and they will not do anything more than they are doing. they want it to be the other way. they want the economic data to be good and want to be able to do more but not going to go that way. stuart: back of my mind i'm thinking that you think this is a correction. we might unup 30, 40 points this morning at the opening bell but you think we're still in correction mode, correct? >> i would be selling rallies today. i would be buying puts. i don't think we've seen the lowest prices we're going to see. i think we'll get a little bit

of a rally. use the opportunity to lighten up with positions on or put short positions on. [opening bell rings] stuart: this is because of state of the economy. >> the fed slowing down a little bit or delay a little bit but i think waiting for this tapering. it has happened but now markets take a hit because of it because it is not over yet. stuart: thanks very much, larry. we'll be back to you later. we're off and running this morning. a very modest gain. futures were pointing sharply higher a couple hours ago, a gain of 80 or 90 points. then came the news on durable goods orders. that is big-ticket items, down 4%. that was a surprise, but rally at opening bell is limited 20, to maybe 30 points. i want to get to apple, the stock of the day. listen, it make as billion dollars profit in one week. it sells 51 million iphones. sets a record for ipad sales

and still not good enough. look at that down $46 as of now. i have got liz macdonald with me and got keith fitz-gerald with us. keith, start with you, please. apple at $503, is that a buy? >> not for me and not yet. i think it ought to be 450, 425. they have a lot of cash and good profit margins. the headline should say not that apple screwed up but the analysts got it wrong again. stuart: pursue it with you, liz. what does apple have to do with report profit and down $47. >> they have to give the forecast to analysts and more negative and really undercut what they expect to do. i think keith is right, they missed by what, 3 million, four million iphones and getting walloped in after-market trading? their sales are going up overseas. might be slight north american

contraction. but there are record sales of iphones that has been happening with this company. so they have been conservative. should they be more conservative with their guidance? stuart: i don't care. if i was an investor in apple, if i owned apple's stock i would be mad as the devil this morning when i see my stock plummet avenues like that. liz: the same thing happened january 2013. apple basically disappointed. gave downbeat guidance. the stock still wend up to 570 last december. same thing happened last january. stuart: two minutes worth of business. now we're up 60 points. we're right about 15,900, there you go, up 63. there are some winners to report for you. not all apples. strong numbers. nicole, how is pfizer doing. >> pfizer a dow component, adding four points. did well with the latest numbers. really wasn't the latest numbers. they're announcing a buyback of 5 billion in stock this year.

global sales of viagra, well that fell 14%. lipitor sales, that rose 4 1/2% and lyrica, that's the pain drug, that was up 11%. stuart: but viagra was down. how about that one? move on to ford, please. they got good numbers too i think. >> ford is looking good this morning. you can see an up arrow for the stock. their net income rose 90%. they continue to do well with the f-150. the stock is at 15.79. stuart: thanks very much, nicole. recap briefly, the dow is up to a 60 point gain after three minutes of best. the question, are you nearsighted tech geek? don't worry, google's glass has got you covered. google glass available in prescription format. they have added four frame styles. that is good enough for a $14 rise in google. but it is nowhere near where it was 10 days ago. microsoft buys the rights to the hit, gears of war videogame franchise. it will be available only on

xbox one. i do own microsoft stock. this morning it is up 15 cents, 36.11 as of right now. moving on back to keith. markets have been i call it selloff mode for much of this year. many market watchers on this program are saying you have to look at emerging markets. i'm not sure that many of our viewers look at turkey, argentina, or thailand when they're assessing whether to buy stocks or not. do you? >> well i do but they're an input and nothing more. what you have to look really at is the condition. we've seen this before. we've seen argentina. we've seen the south american meltdown. we've seen the chinese currency crisis. the selloff has the fed's fingerprints all over the cookie jar as you pointed out. what kind of cash business do they have and what kind of products can they september those companies are not going out of style irrespective what happens in those markets. if anything the downturn may be

a buying opportunity. stuart: you're ignoring argentina, thailand, turkey, don't care about that. >> it is important, stuart. that is game for institutional investors with hundreds of billions of dollars making short-term trading move. if you're a long-term investor viability associated with consumer portion of those markets. in fact that is growing. never mind what is happening at 30,000-foot level. when you get down to it things are not perfect, but that is the growth of future, that is growth of for next 10 years. stuart: the voice of reason from portland, oregon. thank you, keith. see you soon. the president's move to use executive orders to raise the minimum wage for federal workers going up to $10.10 an hour. the president does not have the power to raise minimum wage in the private sector. can't do that. in the state of the union address will highlight costco and some retailers who start their workers above the minimum wage.

liz, do you have more on this story? liz: i do. here is the problem using costco. costco has a very different business model than a wal-mart. has a very different cost structure than the walmart. stuart: he is trying to shame walmart? liz: trying to shame walmart basically raising pay. there has been a unmovement at walmart. raising minimum wage would hit grocery stores and grocery chains which unions, listen here's the problem. costco has less stores. they have got less products on their shelves. they have less workers than walmart here in the u.s. all of those categories. so you can't really compare it. also costco has richer, more affluent shoppers versus walmart's low income shoppers. raise minimum wage, analysts say, listen, walmart will have to raise prices on the goods that low-income shoppers enjoy. stuart: i want to get back to apple. i'm going to call that certainly the stock of this day. other next guest profits off of apple. aj fosyth is with us. the ceo of icraft.

he has a team of technicians that he sends out in the field to repair broken iphones, ipads. aj, i don't want to talk about your business so much as i want to talk about apple and you depend upon apple for your business, quite obviously. what do you make of this? hold on a second. 51 million iphones sold in 13 weeks, record profits i think, a billion dollars a week. and the stock sells off. what do you make of the shape of apple as a company? >> well, i mean i think they're doing very well. they sold about 850,000 iphones and ipads per day last quarter. and that's, to me, i think that's a tremendously high number. so i think they're in great positions and think they're doing what they do best which is making millions of these devices and millions of consumers happy. stuart: you depend on them, don't you? you want those screens to crack so you can take them in and fix them, that is true, isn't it? >> yes it is.

we also buy used iphones and ipads and our i-techs travel to the customers and give them prepaid credit card on the spot for those devices, give me idea how your business expanded, tell me? >> two years ago we started i-technet work where essentially technicians going to our customers. we have 430 of them. we're adding anywhere 50 and 70 new people to our company every month. we're looking breaking 500 i-techs in 11 countries by the end of february. stuart: do you service samsung galaxy phones or strictly apple products? >> we're intently looking on samsung and galaxy but right now only iphones, ipods and ipads. stuart: you must be salivating at idea of 51 million iphones sold in 13 weeks. that goes right into your pocket, isn't it? >> i wouldn't say that but it is certainly good for business. stuart: aj, you operate just in

the united states or did you say you have got offices overseas as well. >> we're opening a london office within the next two months. then we're already in 11 countries as well. stuart: can you find workers in america equipped to do the jobs which you're making available? >> absolutely. i mean we have thousands of applicants a week applying to be i-techs and we have pretty high bar. there are certainly no shortage of very well-qualified individuals. stuart: good luck to you. aj fosyth, your company is called icracked. very inventive. thank you. >> thank you. stuart: we're up 56 points, in line with what is expected. we're just shy of 15,900. one of the super bowl coaches says medical marijuana should be considered to treat injuries. does mr. roger gooddell agrees? after the break. an nfl player who missed two seasons because of an injury,

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stuart: if i can call this a rally, i can say it is getting a little bit stronger. 73 points higher now and the dow is above 15,900. what is the price of gold? i bet it is down a bit. yes it is. stocks up, gold down is the usual pattern these days. at 1257.20. price of oil, where would that be today? hovering around the upper 90s recently. up a buck 5. $97 a barrel. hedge fund casablanca capital urges cliffs natural resources to spin off assets and double the dividend.

investors love it. that is a charles payne recommendation. dow component united technologies considers selling sikorsky? that is the subsidiary that makes the black hawk helicopter. investors don't care, down five cents. it is super bowl weekend, you know that we have three-foot ball headlines for new york giants defensive baxter relthomas. he is here with us. first of all, seahawks coach pete carroll had this to say about medical marijuana in profootball. >> the fact it is in the world of medicine is something that obviously that the commissioner realizes him, making expression we need to follow information in the research, absolutely i'm in support of. stuart: that's interesting. terrell thomas is with us. you played for pete carroll, didn't you. >> yes, sir. stuart: what do you say about the use of medical marijuana for treatment of injuries sustained in football. >> if it helps you to make a better player or person i believe it should be allowed in the nfl.

there are rules and regulations you have to go around. i think pete carroll has a head on it. states legalizing around the country. stuart: but right now, i believe you suffered some injuries? >> correct. stuart: but right now, if you were to use marijuana, that would be illegal. you can't do that, they will boot you right out. >> correct. stuart: but you would welcome an on tray of marijuana into football. >> if they prove background healing injuries and mennable stability it could offer, i don't see why not. stuart: mental stability? >> we'll see. stuart: good luck with that one. next topic, roger gooddell, he wants to expand playoffs. i talked to several players that do not like that because football is hard on you. and you say. >> i do. as veteran guy we're 11-5 we missed playoffs, but had a winning record and that hurt and probably would have won the super bowl. extending playoffs would be more fun. stuart: tougher on you. >> not really.

one more extra game. you have two wildcard games. four wildcard games instead of four. stuart: you approve? >> yeah. stuart: how come you're, you're not a big guy. >> i'm a cornerback. i'm not a d-lineman. i protect wide receiver. guard the wide receiver, knock the ball down. stuart: guard the wide receiver, knock the ball down, so you don't have to be big and heavy? >> i'm pretty big. i'm. stuart: do you think what mr. sherman does. >> i do. stuart: what do you think of his rant? >> well articulate guy. he is very smart. the label that he got is terrible because that is not, i think he was caught in the moment more than anything. liz: got shoved in the face by the opposing player. >> he is a trash talker. that is player that he is. stuart: how do you feel about trash talking? to an englishman, a trash talk something a terrible thing. that is not cricket now, is it?

what do you think? >> football it is allowed. i'm a cornerback who trash talks so i agree with it. stuart: if you're running to intercept the ball trying to catch it you're in the his face? >> this is after the play. we're modern day gladiators. we're going to war. putting our bodies on the line. he got caught no in the moment. liz: would be good on wall street. stuart: that's right. how about roger gooddell, he wants to get rid of the extra point. >> right. >> what do you say to that. >> you know what they made changes last couple years to change the game. you can't rush the middle like you could. you can't come around the edge. when i first played, blocking extra point could be difference is game. right now the percentage is high, 94% making all field goals. why take it out. still a lot of injuries with offensive lineman putting body on line. liz: 49ers kicker phil dawson put up tweets. mr. good gel, you're penalizing success it has become so ought

tick because we're so good. here is what he is saying. my recommendation would be place a clown's mouth in swirling windmill in fronn of the goalpost. make it like a carnival thing. that is why we're so good. quarterbacks better be careful. forward pass is becoming increasingly efficient so you are penalizing success. stuart: running out of time. terrell, who will win on sunday. >> broncos. stuart: totally wrong. why do you say broncos going to win. >> peyton manning, he is the face of nfl. this is way to go out on high horse. i can't bet against him. stuart: are you going. >> not at all. stuart: why not. >> too cold. liz: he is california guy, usc. >> i am. stuart: california fellow. terrell, you're a good sport. thanks for being with us. get well soon and make your way back to the nfl. will you do it? >> i am. stuart: good man. look at apple, biggest drop in that stock in a year. full details in a moment. (vo) you are a business pro.

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stuart: abercrombie & fitch separates chairman and ceo roles. investors like it. up a buck 36. i'm calling it, the apple effect. corning makes gorilla glass for apple devices. apple is down a ton. corning glass is down 7%. ouch. my take next hour. i think there is a deep sense of

anxiety today in america. my take on the true state of the union coming up at 10:25 eastern. a new study finds cold and flu medicine may do more harm than good. people take medicine to feel well enough to go to work but spread the illness to colleagues at work. the study concludes, if you're sick, stay home. what do you think? >> agree. you're not impressing the boss if you are sick and make half the sick force. stuart: just another excuse. just another excuse. i'm sick. liz: you come in and make everybody else sick. stuart: i got sniffles, i can't make it into work today. liz: don't you get mad on elevator when somebody on elevator is sick as you get sick from them. stuart: i never get sick. i don't live in a world where i'm terrified of those around me or worried and anxious about spreading coughs and sniffles. i'm not a prisoner. >> you're not a prisoner.

not walking around michelin man suit? stuart: i get out there and work. have fun. give me a break. liz: i get it. stuart: news alert. here's an example of your taxpayer dollars hard at work. this time it is diapers. in 2012 medicaid overpaid for diapers by about $62 million. a lack of competitive bidding in the process. that's to blame for the overspending, but get this. in the states that do have a competitive bidding process, there are about five, they reported saving 50% on supplies like this. got it? hollywood writers holding a seminar on how to work obamacare into more tv and movie scripts. we'll talk to the author of, hollywood hypocrites about that. that will be new at 10:00. plus the mayor of the town where the super bowl is actually going to be played, not new york, east rutherford, new jersey. the nfl is shutting him out. he is not happy. stay there. brand new hour of "varney & company" is straight ahead.

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we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. stuart: welcome to our second hour. we're trying to figure out what's happening to apple: massive profit, record sales, the stock drops like a stone. what do investors want? but wait, there's more. the governor of north carolina joins us. he cuts jobless benefits, and the jobless rate goes down. that's not supposed to happen, is it? east rutherford, new jersey, hosts the super bowl. the mayor is here, he is not

happy. his town is losing money. >> richard burr offers the republican answer to obamacare on this program today, and hollywood writes obamacare favorably into their scripts. nothing changes, does it? and, yes, the judge is here. does he feel better about nsa spying now that they've promised to open up a little? [laughter] dream on. ♪ ♪ stuart: i've got to start with apple, stock of the day. look at it. they sold 51 million iphones in 13 weeks, made a billion dollars' profit each and every week, wasn't enough. tell me how -- nicole, come on in. >> reporter: i mean, it's barely holding the 500 line, this is terrible especially since this was a $700 stock. i have to tell you when i was talking with the analysts, talking with the traders, and you just said it, right? they sold more iphones, they

have so much cash on the balance sheet, you know, some of the traders on wall street think that apple's a great company, continues to grow and the analysts are a little over the top with their expectations. stuart: yeah, i think so. charles payne, i know you own some apple stock, you personally. >> yeah, retirement account. stuart: you've got to be mad as the devil at this. >> the analysts have whip sawed investors tremendously. a couple years ago this was going to be a thousand dollar stock, then it was going to be a $500 stock. this morning alone oppenheimer, raymond james, susquehanna, jeffrey's, jpmorgan, goldman sachs, crept suisse, they're tripping all over themselves to lower their target. how does raymond james go from a strong buy, a target of 700 to 550? are you kidding he? the only firm that thought this selloff was a good thing or maybe overdone was argus.

you could argue this was the best quarter of any technology company. stuart: yeah, you could argue that. >> and the evaluation, this is not trading at a 50 pe ratio. this is one of the traditional stocks byyany metrics, now do they have to come up with something new, do something more exciting? yeah, you could argue all those things. >> they're losing market share, charles. >> they are, and that's a critical thing, but it's not one of these stocks that was so overpriced to begin with. if stephen jobs was the tee owe, i would ceo, i think the stock would be up 50, not down. stuart: this is a triple-digit gain, why did this just happen? well, consumer confidence came in with a strong realizing, 80.7. it was 77 -- that was the reading in december -- that's a plus for the market even though you got a 4% drop this durable goods orders, big ticket items, earlier this morning. but that consumer confidence number boosting the dow by triple digits.

are you expecting a bounce bank? >> i like yesterday that we held some very important support numbers, it was really critical. all held yesterday. stuart: do you think this right now, this is the moment of the bounce? be i know that's a difficult forecast for you to make. >> i'd like to see these kind of numbers tested over a week, you know? but you've got to make a stand, and, you know, this is it. if yesterday was the beginning and we're making a stand here, or it's not a bad pullback. stuart: yeah. 15,9 and rising 100 points as we speak. let's see, shall we? >> big fed meeting. stuart: i tell you what, sandra, i would be a buyer of apple at $502 a share. >> to back up charles' point, i went to go look at that pe ratio, it's at 12. so this is kind -- stuart: that's it? >> -- a stock right now. $500. stuart: how cold is it? look, please, at these wind chills across the country. it's not just the northeast and the midwest, oh, no, the deep

south hit with frigid temperatures and a rare snowstorm. that's the weather, cold. hook at natural gas, up. -- look at natural gas, up. it hit a 4346 month high yesterday, sold off a bit. sandra, so here we are. i live in the northeast, it's cold. i'm facing a whopping great big increase in my natural gas bill, and i've got to pay this thing. but in the state of new york, i can't frack. >> nope. stuart: not allowed. no, you can't get more natural gas out of the ground beneath our feet. >> i talk to a lot of people in the commodities world every day, and there's a lot of talk about natural gas prices possibly tripling over the next year or two. citigroup, in fact, is forecasting $15 natural gas over the next year. why? stuart: $15? >> they're looking in the drawdown in supplies through this cold went and saying we could be at, quote, uncomforttbly low levels as we enter into next winter. and by the way, barclays is also forecasting that america's going

to become net exporters of natural gas sometime over the next two years. that's a very bullish scenario, so you might want to enjoy those $5 prices. stuart: all i want to do is just get the natural resources which are ours within our own frontiers. go get 'em, boys? >> how about the jobs that you create, the tax revenue you create? you want to fund pre-k schools in new york? >> you'll see, money will talk. [laughter] >> i hope so, actors somehow influence new york state policy. it's ridiculous. stuart: we have got a united states senator with us probably listening to what we're saying right now. he's going to talk about obamacare. joining us is senator richard burr, republican from north carolina. you, sir, are the author of one of the, of the obamacare alternative. that the republicans are putting out there. is that correct, sir? you have got the alternative? >> well, stuart, we certainly repeal the current affordable care act or obamacare, but we've done what the president asked us to do, we've laid out our

strategy for what we would replace it with. most members of congress as well as the american people understand we can't go back to the health care system we had. it was unsustainable financially. and what we've tried to do is we've tried to address what we would have hoped the white house would have done. we've attacked cost. and in our reforms after we repeal, what we do is we decentralize the decisions on health care out of washington, and we put it in the hands of the more than people. stuart: does your bill include tort reform? because i've got a bee in my bonnet about the lawyers and their role in health care and rising cost of health care. does your measure say anything about tort reform? >> stuart, we've got a whole section on tort reform be, and we've got in there suggestions to the states, anything from health courts where you take judges who have expertise to any configuration that would reach a settlement without a jury trial

and without the insanity that we see today. we've got to take defensive medicine out of the game can. that's a driver of costs down, and our whole objective is to make sure that health care is less expensive for everybody in america, yet we've got targeted tax credits for people 300% of federaloverty and below that helps them go into the marketplace and buy theirs. stuart: now, there's no hope that your measure would pass in any foreseeable form in the near future. you can't be looking at this as an alternative to obamacare until at least 2017? >> well, cheerily i think -- clearly, i think with a different makeup in the united states senate we could congressionally pass this bill. but you're right, the president's unlikely to sign doing away with his signature legislation. so it probably does require 2017. but i think we can bring some predictability to the marketplace just with the proposal that we've laid on the

table, because i think most americans will be able to associate with the common sense approach that we've taken. stuart: senator, we do appreciate your being with us this morning on a very busy day. senator richard burr, republican, north carolina. thank you, sir, much obliged to you. >> yes, sir. stuart: thank you. the hollywood elites once again rallying around the president. this time it is the writers' guild of america. they're holding a seminar next month in new york city on how to work pro-obamacare messages into scripts for movies and tv shows. here's jason mattera, author of "hollywood hypocrites," for more on this. never stops, does it? hollywood just never stops. >> no. and we shouldn't be surprised with this collaboration. they marketed, hollywood did, barack obama like an ipad mini for two election cycles now, and now we see them coming to the rescue to promote and glamorize what has been a dreadful start to the health care law. back in late 2013 the norman lear center which is part of the

university of southern california system, they actually got a $500,000 grant, stuart, in order to help guide tv writers and movie writers to incorporate these positive obamacare scripts into their storylines because hollywood thinks it's not the myriad problems surrounding the obamacare law itself, it's just the white house doesn't have the proper messaging. that's why their going to -- they're going to come along and help the white house. stuart: i've got to tell you, jason, i don't think it's going to be successful. if i was a 20 or 30-something, uninsured, i think the idea of getting into obamacare, signing up, is just a lousy financial deal. because all of a sudden i've got to start paying monthly premiums for a product which i don't necessarily want, that i don't think i needed. if i don't sign up, i've got to pay a fine, but that's only $95. and they don't make me write a check, they simply take the $95 out of any tax refund i might get. and if i do get sick, i can just

sign up anyway right there and then, and i cannot be refused. there's no incentive for me to sign up as a youngster. >> well, logically you're correct. i just don't want to take hollywood lightly on this, because with we've seen the impact they've had now in helping to prop up barack obama. and the white house is banking on them being able to convince a broad swath of young and healthy americans to, essentially, go against their self-interests and buy these overpriced plans that they don't want and they don't need because that's how, essentially, the structural flaw of obamacare if they don't go ahead and sign up. and we know, unfortunately, there are far too many younger americans who take their cues from hollywood. i wish it wasn't the case, but we've seen time and again that is the case. so if the white house says, look, how can we capitalize even further on this relationship we have with hollywood, and now we see the fruits of that with this seminar they're putting together

with the writers' guild, representatives from the white house as well as the norman lear center. stuart: maybe i'll try to attend. it's in new york city. >> i don't think they'll let you in, but go ahead. [laughter] stuart: nice try. all right, jason mattera, thank you very much indeed, sir. we'll see you soon. thanks. the senate reaching a bipartisan deal on the farm bill. it would cut food stamp benefits by about $800 million per year. that's only about 1% of this $80 billion a year program. critics say it's, obviously, just not enough. sandra, what do you say? >> not enough. and republicans are already arguing that very fact, so we'll see what happens when the vote occurs. but democrats are saying that this is too much. so, i mean, you just said the numbers, $80 billion program, $800 million in cuts, 1% of the overall program. republicans were fighting for about five times this amount. so they're compromising a lot more than the left. stuart: how can you ever get a control on spending if you can't

even cut 1 president out of an expanding program like this? i've got to move on to nicole. carnival cruise, royal caribbean, both of them up today despite all of these issues with the cruising industry. >> well, i mean, you can answer that, ask i want you to go into your stuart varney, you know, extra nation as to why -- explanation as to why cruise lines continue to do well. up 3% for carnival, royal caribbean up 2.5%. they both came out with numbers in the last week or so, so so far so good. smooth sailing is a good title for this. tell them, stuart, why does everybody love cruise lines? stuart: because human beings are economic an halls. and went you -- animals. and when you present human beings with a very good deal, and three or four hundred bucks for four of five days with everything floating on the ocean, gambling to boot, they'll do it. it's a good deal. so the cruise industry will continue to do well. that's my opinion. >> that's right. you know what they say on wall street? take. that's right. absolutely right. stuart: you're all right there,

nicole, thank you. the nsa using popular games like angry birds to spy on you? tracking people who use google maps on their smartphones? all rise, the judge on that next. ♪ ♪ welcome back. how is everything?

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stuart: charles is going to make us somb with sun power corporation. charles has gone on all green on me. >> yeah, you know what? [laughter] this is one of these green companies i think that's going to make it. i know it was all propped up with the government stuff. today they announced a big deal with bank of america, $220 million for residential financing. we talked with sandra about natural gas, prices going up triple, coal they're trying to put out of business, i think they're going to make some bigtime money. the street thinks this company's going to grow 30% every year for the next five years. stuart: does it make solar cells? >> these guys make the panels for the roofs. this is more of a residential u.s. play, a pure play on the

space. stuart: well, that i can understand because sun power, solar power for an individual residence makes economic sense if you can get the cost of the cells -- >> right. and thousand they've got a big financing deal from bank of america. stuart: that's a big deal. all right, let you off. >> thank you. [laughter] stuart: new documents show the nsa is working on how to use smart apps such as the famous angry birds game to get users private information across the internet. guess who's here on that? judge andrew napolitano. >> i have never played angry birds. i had my producer show it to me just a few moments ago so i'd have a concept of what we're talking about. but apparently, this is game geared toward young people. but when you play this game, it enables the microchip in your computer to be downloaded wirelessly by the nsa and by the british version of the nsa, government spying headquarters, whatever they call themselves. the british names are generally more descriptive of what they do than american names, but never

the less -- stuart: get on the with story. >> all right. i don't know what kind of a warrant could authorize this. i don't know if the fisa court actually said to the service provide providers you will install a computer chip so that the nsa can latch in there, or if the government sort of browbeat the computer servers into doing it. but i do know these microchips are accessible wirelessly by the intelligence community. general petraeus boasted about in this what he thought was a private meeting of cia agents when he was the head of the cia, and one of them recorded the speech and posted it online. stuart: i'm with you on this in the sense that it gives me the impression of big brother, of being watched. >> it's really very extreme and troubling in this case, because unless you and i are really behaving frivolously, this is not geared toward us. it's probably not geared toward anybody watching the show now, this angry birds. this is really a game for children. why on earth would the nsa need

to monitor, spy and download information about children? unless they think their or parents iphones, but the kids have their own. stuart: but it could be a wider selection of apps -- >> yes. yes, it's not just angry birds, but for some reason -- and whatever was released by the guardian last night, it mentioned angry birds. stuart: if i'm in the government, i want to know everything about them, i do. >> including what their children do. stuart: yeah. including apps -- >> talk about big brother. stuart: that is wig brother. >> that is beyond george orwell's wildest dreams, that the government would have this kind of access -- stuart: well, wait a minute, when the british were tracking ira terrorists, they tried to know everything about these guys including which side of the hatchbook do they work from? -- matchbook do they work from? which hand do they hold the cigarette, between which fingers? >> there wasn't an internet at

the time. stuart: it was spying of a different time. it wasn't electronic spying, it was observing people. now, is that legit in your book, on receiver physically? >> well, yes and no. in america you cannot observe and gather information unless you're investigating the person. can -- and you can't investigate the person without some probable cause to do so. however, observing is far less offensive, infinitely less offensive than getting inside somebody's blackberry. you know, you and i do a lot of public speaking. i often start my speeches by say ising keep your battery in your mobile device, because i want president obama and the nsa to hear everything i'm about to tell you. [laughter] stuart: i've got two other stories real fast. what do you make of the president going around congress to demand a higher minimum wage in new federal contracts? >> as to financive as it is, i blame the congress. congress gave, the republicans gave george bush so much power

that they thought would never be in the hands of a democrat. now it is, and now he's doing it. this is him raising the my mum wage in way that is the congress did not do so. stuart i want a news alert on this new story, please. news alert. okay. the daily telegraph report that is the queen's financial reserves have reached an historic low of about a million pounds, that's about $1.5 million. the reason? overspending. it's no accident that the judge is here. >> what shall we do, phillip? stuart: oh, stop it. look, if you're going to have a king or a queen, they've got to be regal. youuve got to keep them in a certain style. you want palaces, rolls royces, a private train, a private plane, a private yacht, otherwise you end up like a bicycle monarch in europe, a meaningless figurehead. >> this is the biggest welfare state in the history of the world. >> yeah. stuart: you don't think that the moniker contributes something to britain? >> it probably draws tourists. >> by the way, in the report

they covered that aspect, too,t- >> spending the money on. >> that's it. the q&a was amazing because you had the representative for the queen in the chair, they say how do your reserves go from 35 million pounds to one million pounds since 2001? then the -- oh, no, here was the crazy thing, the answer was the guy said, listen, you guys need to cut back on expenditures and live within your means. and then the queen's representative says we really believe that is not wise, to cut back on the level of activity of the monarchy. stuart: right. >> we are keen to, and then the guy interrupted and said, are you nuts? but you're down, you're -- where's the cash coming from? >> get it from the taxpayers. [laughter] angry birds. of. [laughter] >> that was suggested for me. [laughter] stuart: judge, excellent stuff. thank you very much, indeed. wrong about the monarchy, but why not? why throw over a system which has worked for a thousand years?

[inaudible conversations] >> helicopter. stuart: this is a tease for what's coming up in the next block. listen, judge. >> all right. stuart: i consider myself an optimist. we live in the land of opportunity. but today i feel a deep sense of anxiety facing the united states. my take, my state of the union, next. ♪ ♪ [ male announcer ] e new new yoris open.

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stuart: there is no question that apples the stock to watch today, down really big because it didn't meet expectations? they sold 51 million iphones in 1 weeks, they made a billion dollars' profit every week, that wasn't enough. extraordinary. now look at twitter, please, bouncing back after a down day yesterday. twitter moving up but only just, not that much. isn't it? there you go. $60 a share on twitter. in a few minutes, we're going to talk to the governor of north carolina on how he's lowered his state's unemployment rate by cutting unemployment benefits. that's interesting. plus, the mayor of east rutherford, new jersey, on the super bowl snub that he's getting from the nfl. no money for the town where the game is actually being played. i think there's a deep sense of

anxiety in america today. the country's not where it should be, and we know it. here's my take on the state of the union. i'm a natural-born optimist. i do look on the bright side. after nearly 40 years of living in america, i still look to the future as something to look forward to. and i think most americans feel the same way. but we're going through a rough patch and, frankly, i think a lot of the blame falls on president obama's leadership. we are divided, and he's responsible for much of division. bashing the rich is classic class warfare, and that has been the president's rallying cry since day one. we are weak, especially on the international stage. when our economy sinks into massive debt, we lose clout abroad. president obama has run up that debt, and he refuses to tackle the underlying causes. debt makes everybody uneasy. we've not returned to process -- prosperity. in fact, the middle class is losing ground, trapped in a

welfare system that the president himself has expanded. since when has welfare encouraged optimism? and now we have obamacare, perhaps the most anxiety-producing policy of them all. millions have lost coverage, millions more will be forced to pay much more, and we haven't even started talking about those massive deductibles. an already-squeezed middle america will be squeezed even more. but this is not a statistical argument. it is an opinion on the national mood. the people i meet are not upbeat and positive. they're anxious, they have a sense of unease about our president's inability to lead and inspire. pessimism is not an american characteristic, but as i said at the beginning, i'm an optimist. america will not remain an anxious, divided nation forever. sooner rather than later the state of the union will change for the better. i ys say be thman with the plan

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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. from td ameritrade. stuart: north carolina cuts jobless benefits, state jobless benefits to 20 weeks. that's all you get, you get 20 weeks' worth of state unemployment benefits in the state of north carolina. that is the lowest duration, shortest duration in the country. what happened when they cut benefits? let's ask the governor of north carolina joining us from

raleigh, pat mccrory. welcome to the program, good to have you, sir. >> thank you very much for having me. stuart: as i understand it, you cut jobless benefits when the unemployment rate was 8.9%. and the unemployment rate has now dropped to 6.9%. are you saying you had that whopping great, big drop in the jobless rate because you cut benefits? >> it's about the only variable that's different from other states, and north carolina since that time has had the largest drop in unemployment in the nation. and i don't know of many different variables in addition to the tax cuts we also initiated this year. but i think the decision not to have the ninth highest unemployment benefits in the nation and lowering them to what our neighboring states in south carolina and tennessee and virginia pay and then us lowering our debt that our businesses owed the federal government has had a major impact. we owed the federal government

$2.5 billion in debt, and we were having to increase taxes for businesses to pay not the principal on that debt, but the interest on that debt. and we were not retiring that debt. we have now started retiring that debt, we've got it below $2 billion, we're ahead of schedule in repaying by over two years, and people are now accepting jobs that they were being offered in the past and rejecting, ask we think this has had an impact, and that's the one variable that's different in north carolina. stuart: a lot of people, governor, will say you're just harsh. you're pushing people out. you're forcing people to take a which ray treal -- a job which they really don't wallet. do you accept that label? >> no, i don't accept -- in fact, if anything, we're getting people to work, and we're getting people to become productive and getting to the workplace so they can learn new skills and move up. all of us sometime in our life have to take a job that's not the perfect job, but it's a job that's available. i've had to do that several

times in my life in order to feed my family and pay my payments and, you know, that's the way of world. but once i get into the work force, i can prove myself and move into other opportunities that i might have. that's better than staying on unemployment when you have no further opportunities for advancement when you're on unemployment. stuart: are you part of that group of states which have tried to lower taxes, tried to cut back a little on the welfare net? there is a group of states that's been doing that. and they stand in stark contrast to some of the states which are raising taxes and the federal government which is more welfare-oriented and raising taxes. are you very conscious of being part of that alternate group as sort of a laboratory of how to do things different from the national government and, say, the government of california? >> well, i was elected last year, and in my first year in office, i worked with a legislature where we had at the time when i was elected -- first of all, we had the fifth highest unemployment rate in the country, and we also had the

ninth highest unemployment benefits in the country. we also had highest corporate income tax in the southeast. we adjusted our unemployment benefits, we're paying off the debt, and we had major tax reform where we've now lowered the corporate tax and the income tax. by the way, we increased the tax on movie theater tickets, for example, to make up that difference and other -- and newspapers. but we adjusted and reformed our tax system to become more competitive with south carolina, tennessee and virginia and the rest of the nation. and i think it's having a very positive impact. those tough decisions that -- if we, we could have kept trying what my predecessor and others had been doing for the last five years, and i thinked had we kept doing that, we would have had the same results. i said when i was elected we're going to try something new to put people back to work and, fortunately, it's happening right now as we speak. and we're very pleased with the unemployment statistics today going to 6.9%. it was 9.4% when i was elected

governor. but we don't take anything for granted. it could adjust in the future be, so we're going to continue to implement more growth, pro-growth, pro-business policies. stuart: glove pat mccrory, republican, north carolinaa-- governor, thanks very much for joining us, we appreciate it. >> thank you very much. stuart: billionaire venture capitalist tom perkins is in the headlines for a comparison he made in a letter written to the "wall street journal." it compared the criticism of america's 1% to the persecution of jews in nazi germany. here's the quote. from the occupy movement to the demonstration of the demonization of rich embedded in virtually every word of our local newspaper, the san francisco chronicle, i perceive a rising tide of hatred of the successful 1%. finish well, since he wrote the letter, he admitted to a poor choice of words, but he doesn't regret his message. charles, what do you make of all this? >> he used a crystal knock, and he did apologize for that, but he did not apologize for the

overall gist of what he was trying to say. listen, everyone took to him, 1% has a persecution complex. "businessweek" said that the 1% has paranoid rage. it's not paranoid. i mean, it's justified rage. and i've got to tell you something, tom perkins may be a couple of years ahead of the curve here. we're going to hear a state of the union address tonight that will somehow link the unfortunate people who are trying to get higher minimum wage and their lack of success in this country to the idea that someone else took it from them because they are successful. we know this is happening. i think it's sort of ironic that san francisco is becoming the new battleground, because for a long time the venture capitalists and the google guys got a free pass. it shows you, if it's going to happen in san francisco, it's going to happen across the entire country. this is the only thing they can push, the only hot buttedton that somehow someone got it, you don't, and you'd better find a way to take it from them. if we can't take it via the tax

code, maybe there's another way. stuart: nasty stuff. charles, thank you. the super bowl will be played in east rutherford, new jersey, on sunday. the town's getting snubbed by the nfl. the east rutherford mayor is with us. he's♪ ♪ we asked people a question, how much money do you think you'll need when you retire? then we gave each person a ribbon to show how many years that amount might last. i was trying to, like, pull it a little further. [ woman ] got me to 70 years old. i'm going have to rethink this thing. it's hard to imagin how much we'll need for a retirement that could last 3years or mor so maybe we need to approach things dferently, if we want to be ready for a longer retirement. ♪

♪ ♪ stuart: start with apple. earnings out yesterday, they made a billion dollars a week in this profits in 13 weeks, they sold 51 million iphones, record i add sales. not good enough. investors are taking it down $36 lower. go figure. google showing you have new versions of its glass, the google glass headset. it now looks like a regular pair of glasses. you can even put prescription lenses in them. the price of google, up $20, 1121. dr horton said first quarter home prices getting a nice boost, 8% up on the stock. pfizer reporting a 59% drop in fourth quarter profits. generic drugs cutting into their sales. not all bad news, it's predicting smaller than expected revenne decline in this year. that's driving the stock higher. go figure. up next, the mayor of east rutherford, new jersey. he watches this show, he's

hosting a super bowl. [ male announcer ] there is no substitute for experience.

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they've had declining sale, and so now it'll be interesting to see if there'll be some significant changes that they are eluding to, and the stock is jumping. stuart: this is the charles payne principle, isn't it? you shift the ceo or the chairman, and the stock reacts. up or down, but in this case it's going up because they didn't like this guy. >> the guy said he didn't want fat people wearing his clothes. are you kidding me? are you nuts? i'm selling clothes, i want everybody to wear them. fat people can be cool. hey, listen, this should have happened a long time ago. by the way, they brought three new board members, too, including arthur martinez, he's got a good reputation on the street. they promise significant changes which hints he'll also lose his other job, too, ceo. stuart: we'll see. >> he's so funny. [laughter] stuart: i heard that, nicole. i think the audience did too. charles so fun incentive? he is. -- funny. he's going to make us some money with a first look at deck outdoor. you've never been to this stock

before. >> not on this show. a bunch of i shoe wear, but what they're most famous for are the uggs. sheepskin prices went through the roof, this is the perfect winter for uggs. they've beaten the street four out of four quarters, fiscal year '13 and '14 earnings going through the roof. still, there's a 23% short position on this. these guys come in with a good number, this stock is back above $95. >> deckers outdoor, that is the uggs company? >> yes. stuart: you should have seen the line out the doors before christmas. >> really? stuart: yes. an outlet mall near me, out the door. [laughter] out the door. amazing. now, let's get to the main event here, the super bowl less than a week away, of course, as you know. it's going to be played in the metlife stadium in east rutherford, new jersey. you wouldn't know it according to the mayor. he claims the nfl is marketing in this as a new york event leaving his town in the cold.

the mayor is with us this morning, welcome james costello. did you get nothing out of the super bowl? >> nothing. stuart: get out of here. >> zero. we're justthonored to have them here. stuart: the stadium is in your town. >> yes, it is. stuart: don't they pay you something in local taxes for being there? >> zero. stuart: zero? >> zero. stuart stuart you get nothing out of the stadium? >> nothing. stuart: what about all the tickets that are sold? nothing? >> nothing. stuart: nothing? are you going to lose money on this then? >> possibly. we'll have to see when -- the only revenue that we get is from a hotel tax. a new jersey state hotel tax. we get 3%, and the state gets 5%. stuart: you've got to pay for the police that's got to work overtime on this. >> yes. stuart: i presume they are out in force. fire trucks, emergency services, you've got to pay for all of that. nobody coughs up anything extra for you? >> no. stuart: could you lose money by hosting the super bowl?

>> yes. [laughter] stuart: how do do you feel? you don't seem to be particularly outraged. >> i expected it. from the beginning this was a new york event. stuart: you wouldn't turn them down. >> not at all. stuart: you wouldn't say that. so who do you want to get some money out of, the nfl? >> no. we hope the people come and they enjoy their stay here and they spend some money in new jersey. stuart: that's it? >> that's it. that's all we can hope for. stuart: just 400 yards outside of our studio they've blocked off about four or five blocks of broadway. it's a whopping, great big street fair. it's all about the super bowl, it's all about the nfl, it's all about football, and you have no part of that whatsoever? >> nothing at all. if you went through new jersey, if you came here from another planet and dropped down into new jersey, you would have no idea that there was a football game going on this coming sunday. take a walk along broadway, you know there's a game. stuart: do you think new jersey as a whole, not just your town, but the state of new jersey, do you think they're getting the

short end of the stick? >> i think in some ways. and this is where the economics come into this. with the nfl promoting new york as they have and after the game terry rad shaw -- although he has since apologized for that -- but he was saying i'll see you in new york, i think that could have an adverse effect on people from other parts of the country. >> what are you guys doing to counteract that? how come you don't have tents up in your town? >> we do, but we're paying for it. >> oh, okay. >> people are donating, and we're having our own event there. stuart: what exactly is the event? >> we have some heated -- we're calling it a tailgate party, exactly that. there's heated tents. we'll have some new jersey bands, not band from hawaii, a group from hawaii -- [laughter] but we'll have some, and these, the nerds and the b street band which you've probably never heard of, but they're well known along the jersey shore during the summer which will attract

people. so we're having our own -- stuart stuart well done. >> you know, we can't use the super bowl. stuart: charles and i are residents of new jersey. >> oh, good, then you're welcome to come. [laughter] we'd love to have you. stuart: if you're not careful, your honor, we'll show up. >> we need some people that maybe lean a little bit right, you know, in our area. stuart: look at charles -- [laughter] your honor, congratulations on getting the -- >> we're honored to have it. stuart: and it'll be a great event. great stuff, thanks very much. >> thank you, gentlemen. really good -- stuart: say that again? >> excuse me? stuart: it's really good what? >> to see you guys. stuart you know us? >> we know you. stuart: you watch this show? >> we watch the show. stuart: give him an extra five minutes. [laughter] >> we watch you, i see you on saturday mornings, i see you when you fill in for cavuto. stuart stuart excellent. >> listen, i know the names here. actually, i watch both --

stuart: i've got to go. dow's up 78, back in a moment.

lou: president obama set to address the nation, promising to go around congress to enact the rest of his agenda. we'll preview the state of the union with brad blakeman and juan williams. join us tonight, seven eastern.

♪ ♪ stuart: fast food chain chipotle releasing a four-episode online series to poke fun at the fast food industry. watch this. >> you're feeding cattle petroleum? nobody wants oil in the food chain. >> oh, sure they do. there's peanut oil, olive oil. >> side effects? [laughter] stuart: the company's hoping this will translate what they see into better eating habits. isn't mcdonald's trying to do something similar, change -- >> chipotle's got a high-end product. people pay a huge premium for it. about a year ago, one of these masters of the universe said he would short chipotle because he went to taco bell. anyone who followed him lost a lot of money. now mcdonald's, they're in trouble. i mean, listen, they reinvented themselves a few times, they got the vegetables, they had the

coffee. this company, chipotle, was started in 1993, mcdonald's took a huge stake in the company when they only had 16 stores and they divested in 2006. big, huge mistake. over the period that chipotle's been public, that stock is up over 1100%, mcdonald's is up less than 200%. you can see who's doing something right, who's growing, and the other guys are struggling. they took a direct shot at their former partner, mcdonald's, in this commercial. stuart: that's fascinating. comparing fast food chains, restaurants, but they have a very different product and very different average price. >> people, americans will pay premium if they think it's healthy, organic food. they will simply pay more money. stuart: amazing, isn't it? your take on the real state of union is next. the system works. let's say you pay your guy around 2 percent to manage your money. that's not much, you think except it's 2 rcent every year. does that make a difference? search "cost offinancial " ouch!

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you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approvedo treat ed and symptoms obph, like needing to go frequently or urgently. tell your doctor about all your medical conditions a medications, and ask if your heart is healthy enough for sexual activity. do not take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. do not drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, se immediate medical help ction lasting more than 4 hours. if you have any sudden decrease or loss in hearing or vision, or iyou have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a 30-tablet free trial. stuart: earlier on the program,

i gave you my personal take on the state of the union. the country is not where it should be and we know it and we feel it. obama is accomplishing exactly what his beneficiaries wanted. frankly, i think it is very conspiratorial. michael says i have learned over the past five years whatever obama says publicly, he means the exact opposite. that, too, is a little harsh. if i had to raise eight country on prosperous too pathetic, i'd have to rate it "brain-dead." charles: it is not just our viewers. after the fifth year, president obama's approval rating is 41%.

america is really dissatisfied with this president. stuart: yes, it is. dagen, it is yours now. dagen: home prices starting to slip here and professor robert shiller talks about his new report. a milestone for tesla. coast to coast. the latest on the sick ship at sea. hundreds sickened with gastrointestinal distress forcing that ship that cold. all that and so much more coming up on this hour of "market now." ♪ connell: market now before gastrointestinal distress. connell: welcome aboard,