we present you the stock market looks good but this is not pretty. hello, everyone, thank you for joining us this tuesday morning. we are spending a whole lot more and we are maxing out our taxes. the results of five years of president obama failed economic policies. we will spell out the grim news today. no hold 'em back america technology. thnew developments at microsoft and amazon. stocks up and spring is just a few days away. "varney & company" is about to begin. ♪ all right, straight out of the box, look at amazon. it will have a set top box for streaming video on sale next month sold online on the amazon

website and through best buy and staples. not sure the price, it will be competitive with the apple tv and roku. sandra smith is here after her performance on fox news yesterday. congratulations. another new area for amazon to get into. you say it is a hit? sandra: big hit. it will be very competitive. we don't know how much they will charge for this. add to the list list streaming products available right now, google chromecast. this is offered cheaper every day. everybody wants it. this puts amazon into your living room. right now you can only get the streaming on amazon devices. a lot of original content, they already produce some but putting this in your living room, they are encouraged to do more original content.

stuart: number two is, just look at walmart for a second. it is getting into the used videogame business. you can walk in, hand over your used videogame in exchange it for groceries or anything else walmart sells. it is not good news for game stop which has long tolerated the market. there are two angles here. i think the sale of physical games is going the way of the dodo. downloading is everything, isn't it? sandra: not everything. walmart doesn't do something like this without their homework. they look at game stop, it showed their preowned sales were up 7%, guest of the profit margins are nearly 50% on a preowned videogame. walmart wants a piece of that pie. this is the second time around walmart has tried to do this.

this is a $2 billion industry. walmart has done their homework. game stop on the way down, lost 22% this year alone. they are going to fight to be competitive, they will fight to stay in this. a very, very loyal audience. stuart: we have news on microsoft coming up, the stock is going straight up. dow jones industrials up 87 points. more developments, here they come. the other big story of the day, a financial portrait of america has revealed by several new reports. tax revenues hit a record 1.1 trillion in the first five months of the fiscal year. the federal government $377 billion deficit during that same time, so we took it in but we spent all of it and then some. and there is a new survey

reveals 36% of working people have less than $1000 in savings. former reagan economic advisor art laffer. has the president so changed america that we cannot in the near-term return to prosperity? >> in the near-term we cannot return to prosperity, but in the longer term we can return to it. if we win the election in member, which i think we will, and we pushed back on the obama agenda, by 2016, 2017 we can reverse it big time. we can create a prosperity that would last for a decade. but we have to focus politically. it is really just opposing this policy of obama. these silly policies of taxing people who work and paying people who don't work wondering why we don't get enough work is silly. stuart: has there ever been a time in recent history, post-world war ii where

america's middle class has been squeezed the way it has been squeezed now? america's middle class is losing ground. have we seen that? >> americus s-lowercase-lette>>e pain and the suffering. we had a real serious problem in the 1970s too, stuart. jimmy carter and all of that prior to 78, that is not attractive the u.s., they have been sliding down a long time. if you go back to nixon, things were really bad then as well. we have had these times, but you have come out of them because of our free politics. stuart: do you see a direct parallel between 77, 78, 79, the closing years of the carter presidency when you are writing a plan for growth on the back of

a napkin for ronald reagan, d.c. parallel between then and what we have now? a direct parallel? >> it is almost exact. jimmy carter tried to nationalize the energy industry, obama is trying to nationalize the health care industry, both are complete, utter failures and the political reversal was huge. in 1980 we won the election landslide, and then you saw what was happening nonstop going through all the way through bill clinton. bill clinton was a great president carried on the reagan agenda. we will have the best future you have ever seen because of the political backlash of obama. he cannot stop himself, he wants to raise the minimum wage, he wants to force people to pay more overtime. every silly thing you can possibly imagine in the redistribution of economics. everybody knows if you try to redistribute income you will

fail and cause the economy to collapse. here again is another perfect example of bad economics done by obama. stuart: i have a couple of more questions for you later but i want to check the big board. day two of a nice rally. does this have anything to do with janet yellen, sandra? sandra: yes. her first acknowledgment there was softness in the economy led to a huge stock market rally. there are many wall street analysts writing about the possibility it could change the tapering program. stuart: said she will keep on printing the same amount of money now or more. is this why this market is up? >> this economy, whether or not it is as strong as it once showed when they decided to taper. the bottom line is janet yellen going to ease monetary policy

because she doesn't see much improving that much. the market could be applauding that. stuart: we have some more here. part of the gains are because microsoft straight up this morning. the office software. word, powerpoint, excel rolled into office. coming to your ipad, and apple product. it is a big move for the new ceo. give me the great news on microsoft. >> microsoft, great news for you and the other shareholders. seeing stocks at a multi-year high. tacking on 10 down points. obviously showing his colors, new strategy for microsoft revealing it was likely they were going to unveil this version of microsoft office and put it onto the ipad. we are losing about $2.5 billion per year not having it. this is a big move here.

stuart: it is a fabulous day. back to art laffer. why does kathleen sebelius still have a job? real fast, why is she still in the job? >> she looks very nice, seems like a sweet person but she should be terminated for the job she has done. she has not served the administration well or the country well, i am sorry to say. she should be out of there.rt: k you for joining us. >> i like the new timeslot very much. stuart: i like the extra hour in bed. i keep waking up at 3:20. i can't get away with it. >> thank you very much. stuart: three more headlines on obamacare for you. the administration says 5 million people have signed up. they are not saying how many

have paid, we don't know how many were previously uninsured. we don't know how well obamacare enrollment is actually going. next are survey, one-third of the uninsured do not plan to sign up for obamacare. what is that, 10 million people? we get into this to sign them up and now they are not interested. the next obamacare add features a girl apparently twerking on her bathroom sink and injures herself. the latest reason for the white house on why you should get covered. i could understand if you want to reach young people, you do it in a certain way, this is how you get to them. it is a little odd, isn't it? that doesn't work for you, does it? >> listen, when kathleen sebelius was asked in the interview, she said she had no

idea how many people had paid the premium payments. the industry is estimated about 80% of the 5 million have actually paid. insurance industry itself does not count somebody as insured until they pay. the only reason they wouldn't be releasing these numbers is because the amount of people who paid does not total anywhere near 5 million. we are two weeks away from this deadline. it will take a lot. stuart: time is money, his what else w we're watching for you today. more recalls from general motor. 1.5 million vehicles will be brought back with the ongoing airbags defect. it will cost gm $300 million. for investors to question is has the stock bottom, could it rally other the problem are out front? she looks like she is getting a handle on it. and making a bow flex home exercise machines in a range of

gym equipment. the ceo of the company is on the show today and i will ask him this. why have i seen so many of your machines in garage sales in new jersey? and we continue our tech tournament round two. netflix versus yahoo. we are looking for the tech champion. login and cast your vote, please. pete rose banned from baseball for life for gambling. compared to the steroid era, is what he did really that bad? what is worse, gambling or straight up cheating? the man who wrote the book after the break. ♪

stuart: it is a rally for the second day in a row. 16,300, that is where we are this morning.

your gold report down $16 as of now. the price of oil, that is rallying. $99 as of right now. check the price of general motors stock. a wave of recalls, negative headlines. maybe the stock stabilize. remember, the ceo a least a message yesterday directly address the recent recall problem. take a listen to what she had to say. >> something went wrong with our process and terrible things happened. as a mom with a family of my own, this really hits home for me. stuart: getting out front if you ask me, up close and personal. is she doing a good job? >> she is a great job. unfazed through all of this. this car is not in production. oftentimes the car is still being made. mary barra are in the dirty

laundry the second she got in the door. she is getting the bad stuff out there so she is completely disconnected from it. i am rooting for her. stuart: toyota stock is in the mid-70s. now rebounded 120. it is not out of the question gm will get rid of for somehow deal with this recall problem and go to mid 40s. >> most are optimistic. it is about communications, she is getting out there, telling people what is going on, not leaving room for speculation or rumor, that is huge. stuart: no debating pete rose was one of baseball's all-time greats. all-time leader in hits, however as you all know the combo spencer overshadowed by the gambling during his time as a player. the author of the book "pete

rose, an american dilemma." i have to pose the question, which is worse, gambling which gets pete rose band, or steroids which i don't think have resulted in any permanent bans so far. which is worse, do you think? >> ther they are categorically different. if you have a manager or a player involved in this, they may want to alter the outcome of the game in any way. they will not come out and see. stuart: the steroids clearly affected the outcome of countless games, clearly. the performance of countless players affected directly by steroids. i will make the judgment, steroids are worse then gambling. >> there are lots of views on

this, completely legitimate view. steroids have an impact on the game, rewrote the record books and a public health issue. one of the things of people taking these steroids, gambling has sort of ruined pete's life. steroids has done that for players as well. both things are difficult and complicated. stuart: that is true. pete rose band for life from a commissioner who has passed away. on the tables the question could a future commissioner reverse the earlier decision and allow pete rose to join the hall of fame? >> a commissioner could do that, and the hall of fame could very easily allow him to be in the hall of fame. he is going to be 73 in april. stuart: so a decision should be made. out for life or maybe in. >> pete says i will get in when

i am dead. there is a fear because he is still a gambler. whether or not he bets on baseball isn't clear, but he still gambles a lot and place the horses. that makes people uneasy with reason in the game about him actually being back on the field as a coach or manager versus being accepted into the hall of fame. i spent some time with him. we were in no kind of partnership. stuart: why does he still gamble? it probably ruined his life, why does he still do it? >> why do people do things? it is a part of his life since he was a child. throughout his career, gambling on football and basketball, not just baseball. he set up shop in las vegas outside and memorabilia shop. there is a sports book down the hall. stuart: that is what he does? stands outside a memorabilia shop?

>> he has a little table and he signs autographs. it depends on the piece, you buy a piece of memorabilia, it changes a little bit. he will spend a little time with you and talk with you, you're partly paying for the interaction. that is how he makes a living. financially it is a good living. there are other ways to measure a living. he makes good money doing that. he is guaranteed a certain amount of money, he is their 15 days a month. he has monetized his situation very well. stuart: one last question, if it was up to you, if you were the baseball commissioner and he ran the hall of fame, is he out or is he in? >> i'm going to be agnostic to that question. i hope that is a decision that readers will come to and decide.

i am going to say it is a dilemma because there are a lot of different ways to look at it. i do think there is a good case to put him on the hall of fame talent but whether or not to reinstate him is something i will leave to the readers. stuart: as far as he will go, put him on the hall of fame ballot. you will leave it at that? >> i will leave it at that. stuart: it is a great book. "pete rose: an american dilemma." breaking news, out of seattle. and news helicopter has crashed into the space needle killing at least two people. the chopper was coming in for a rooftop landing and it crashed, landing on some cars below. seattle. a quick check in seattle, 95 points up almost triple digit rally held by microsoft. after the break, the varney tech

tourney continues. we will break down today's bracket as well in just one minute.

stuart: google versus zynga. who do you have on this one? who would you buy long-term? >> i love the underdogs, but i'm going with google all the way. >> zynga has some games, try to find the next big hit but ultimately it will end up being google. >> have to go with google. stuart: everybody is going with google. the next matchup priceline versus tesla. keith, which would you rather own for the longer term? >> tesla, no question about it. >> if priceline can pay william shatner $500, they have money to throw around. >> tesla, tesl tesla. stuart: some of the company picked yesterday in the varney tech tourney. we will have the overall results friday this week.

today's matchup, this is netflix against yahoo. and we have ibm going against 3d systems. the netflix-yahoo systems. yahooyahoo is a bigger company, 10,000 more employees, but netflix on a tear. yahoo struggling to defend it, defined itself. which stock would you rather own for the long-term? that was up 15%, yahoo down 3%. it rallied yesterday on the alibaba news. which would you choose the long-term? new machines versus old machines. david versus goliath. ibm is huge. 194 billion. 3d, 1000 employees worth 6 billion. this is a question of which stock do you want to own for the long-term.

ibm down a fraction this year, 3d systems under a lot of pressure down 34%. last us know what you think. all of the market watches will make their call in our next hour. a couple of stocks making news and moving, hewlett-packard struggling to $30 per share. up 3.5% as of today. chipotle up another 2% today. closing in on $600 per share. who would have thought, a restaurant chain. buy this robot for $70,000 send it to work for you. that plus "the independents" host kennedy after the break.

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stuart: you feel like working from home? it is made by the people who make the floor sweeping gadgets available in the u.s., canada, some european countries too. look at irobot shares up $43 per share. charles, i wants to stand top of the robot industry as it unfolds. it seems we shouldn't get carried away by this. they are appearing in our lives but they are not taking over, are they? charles: they are. the next wave will be mind-boggling. i have a 72 page white paper that is amazing. artificial intelligence, robots software that things for itself, it is scary stuff i think we have to be prepared for. stuart: how far down the road does oxford say it will be? charles: over the next decade it

will be huge. absolutely huge. this is not even robot technology, per se. one person in the one blog said a giant lamp post but like a screen on the machine, when they program it to think like a supervisor. if i'm a supervisor i can look at my iphone and scan the floor to see who is working and who is not working. when i teach it to think like me i can go to the beach. that is the next level. stuart: an update on the missing plane flight 370. the plane's path was changed by computer. wasn't somebody grabbing the joystick? somebody in the cockpit had to type seven or eight keystrokes into what is known as the flight management system. this development reinforces the belief the plane was intentionally diverted.

china says they check the background of the 154 chinese nationals on board and found no link to terrorism. the search is now searching into the 11th day. massive search area. that brings us to the subject of surveillance. a new survey from stanford university shows phone and internet metadata collected by the nsa can reveal anything about you. from your medical condition to your financial and legal connections. even whether or not you own a gun. "the independents" host kennedy is with us. i'm going to say. >> they used to be so much love between us. and then you got all aggressive. stuart: i say surveillance is necessary. >> next to her you are the number two apologist. when a run to claim you look outside your window and see drones hovering in front of your yard? stuart: if that airplane, let's suppose for example totally

hypothetical, let's suppose it is used at some point in the future to deliver a nuke to new york city. i want to know about that, and i don't care that means abusing the rights of american citizens, i want to know if it is on its way. >> you want to know everything after the fact, so what are you saying? in a state's government is opposed to use some sort of digital telepathy to know if there is some mentally unstable random malaysian airlines pilot? tell me what you want the nsa to do. how are you going to misapply situation?h to an international >> i don't care if it carries out surveillance on everybody if it unearths a trail of what will happen to that plane and what

will happen if we have a delivered nuke to new york city. we take responsibility if you say we can't do that surveillance. will you take responsibility if one of those planes kills 10 million of us? will you? >> what are you talking about. how are you framing the question. are you saying, i don't understand your question. i don't understand the motivation for the question or how the nsa as opposed to thwart your magical scenario. you are entirely imagined scenario. by the way, i want to ask you a question. stuart: excuse me, excuse me. before 9/11 there was a war erected between the fbi and the cia. that meant the fifth hijacker who was actually arrested on the west coast couldn't be linked to

the other guys in the plot. because of that war, we had a constitutional war that separated the information supply, information route, we could not breach that. in hindsight had we share the information around we may well have stopped 9/11. >> government ineptitude is a greater net forget it all possible data from all citizens westmark so you are telling me the nsa as opposed to spy on 6 billion people and somehow there will be enough people working for the government who cannot even track somebody inside their own organization scraping data, millions and millions of data? somehow we're supposed to know ahead of time there is some guy who is possibly upset by a political rally because he has a middle eastern last name? >> don't care of the government collects a whole bunch of information if we can collect

the information. i want to know about it before hand. >> you're getting so far ahead of yourself. the fact he wants to compromise everyone's civil liberties in this country and abroad, it is not only insane, it is dangerous. so that could make it criminally insane, stuart. stuart: we will leave it at that. thank you very much, indeed. when is your show? >> 9:00 p.m. and midnight eastern. stuart: a four-year-old law in tennessee says if they don't make whiskey in nearly the same identical way as jack daniels it cannot be labeled official tennessee whiskey. our lawmakers creating a legal monopoly? the judge is next. ♪ ♪

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stuart: apple debuts the cheapest iphone 5 yet. eight gigabytes of storage. but now only on sale in europe. $60 cheaper than the 16 gigabyte version. i figured to be released later today.

look at apple stock hovering around that mark for a long time. now look at microsoft. microsoft product run onto the apple product computer. word, excel, powerpoint, you know i own microsoft and i'm sure it on. $39.66. look at game stop down. here is why there are reports walmart will start the video game trade-in program. you can give them a used game. down goes game stop. the judge is next. it's a growing trend in business:

do more with less with ss energy.hp is help. soon, the world's most intelligent servers, designed by hp, will give ups over twice the performance, using forty percent less energy. multiply that across over a thousand locations, and they'll provide the same benefit to the environment as over 60,000 trees. that's a trend we can all get behind.

stuart: the rally holds. up 75 points. we keep a close watch on jcpenney stock. at $8 per share right now. down 4%, that is a big drop. strong quarter. not moving that much up only $0.04. very good quarter. they make the bow flex workout machines. the ceo joins us now from the floor of the new york stock exchange. congratulations, that was a very good quarter. i am not picking a fight with you, but i see your exercise machines in garage sales all over new jersey. what is going on?

>> that is because the time. we put a lot of pride and the quality of our products and it is we continue to do that all the time right now even with some of the new things we are introducing. stuart: you are very good at getting people to buy them, but how are you getting people to use them? >> that is a difficult thing particularly with today's environment where people are time constraint. we have a new item we just introduced around new year's resolution january 1 on the market for two and half months called the bow flex max trainer. you can achieve a workout that would normally take you close to an hour on a treadmill or an elliptical. stuart: we will keep in touch, thank you for joining us today. breaking news on general motors, the ceo says she will testify before congress if she is asked.

she also said she can't answer which executives knew about the ignition switch recall until the companies internal investigation is done. maybe gm stock has bottomed, maybe it is a buy as mary barra gets out in front of this recall problem. it has bottomed and maybe it will move up. when they went to their problems of the last couple of years. we have a legal battle involving jack daniels. it says it has the recipe for tennessee whiskey. tennessee law clearly defines tennessee whiskey as the jack daniels recipe. that means nobody else can put out tennessee whiskey. because religious the has been defined the legacy of the monopoly. you never know.

>> you something the constitution called the commerce clause cap in the commerce clause is to permit the free flow of goods and services across interstate lines unimpeded by monopolies and cartels and legislation by state legislatures. i will give you an example bringing home to a lot of people in this building. the new york football giants moved to new jersey, there was legislation passed by the new jersey legislature to force them to change their name to the new jersey football giants. federal court said don't you guys have a first amendment in new jersey? they can call whatever they want. your friends europe can call their liquor they make next door in kentucky whatever they want. simply stated, tennessee

legislature cannot prohibit you from calling yourself tennessee because he did not comply with what they say tennessee means. stuart: but they do that. the law says. >> this is almost unforgivable because they took the jack daniels recipe exactly as the jack daniels people gave it to them and made it the law. you could call yourself. we could call ourselves or product tennessee mash only if we followed the jack daniels label precisely. that is exactly what the commerce clause was written to prevent them from doing. stuart: he is challenging this law, you think they will win. >> almost any, this is law 101. and a judge of the union would join the enforcement. charles: last week the eu was upset about feta cheese and parmesan and different things. they are european country.

stuart: a case they made wait a minute, this is tennessee whiskey and we have a right to define what is tennessee whiskey and nobody else can call it tennessee whiskey because it is not tennessee whiskey. >> the legislature does not have a right to do that. we have one here. europe, correct me if i'm wrong, has more of a regional tradition that we do here. nobody can make something in norway and try to call it champagne, would they? stuart: they call it scott. >> it is not from scotland. they make it from weight. stuart: it competes. why can't i make it in arizona out of cactus? >> i wonder if japanese scotch is lawful in scotland.

i wonder if you can even sell it there. >> i will check it out. let's go play some golf at saint andrews. >> will you pick up the tab for this guy? if we play golf at saint andrews. stuart: no be at >> somehow i'm not surprised. stuart: my daughter went to one of those places in monaco. $30 for a shot of scotch. >> did she send daddy the tab? stuart: certainly not. you are all right, judge. unions planning a two-week long minimum wage bus tour. they want $10.10 per hour. i will tell you why this latest plan may work. we will tell you after this. ♪

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stuart: a union funded group and also had out on a bus tour pushing for a hike to $10, $0.10 per hour.

it looks of that is a good political strategy but lousy economics, charles. charles: workers including janitors, nurse assistants haven't had a raise in long time. that gives you $21,000 per year. and nurses assistant makes 21 grand per year. they want them to take a pay cut? how about janitors, childcare providers? this is another giant farce. i don't think it will work when anybody bothers to crunch the numbers. it is bad politics at the end of the day. stuart: every news station will see that and go into it. take a look at the stock price of charles payne pick. hit a high of 22 earlier, reported strong numbers earlier. the stock is down, but charles, would you buy any more of it? charles: the numbers were absolutely phenomenal but the last two to two weeks the stock is up more than 500%.

stuart: dat day to of the varney tech tourney. charles payne makes his picks in the noon hour. is there a cinderella among them? we will see. and herman cain is here. nancy pelosi says republicans are making a mistake if they campaign on this. >> we have to pass a bill that we can find out what is in it away from the fog of the controversy. ♪

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is the doctor running for anything? nancy pelosi, don't run on obamacare. now we have hasted and seen it whether we like it. technology innovation walls on. microsoft and amazon and our version of march madness pits yahoo! against netflix, 3d systems against ibm. you will help us find it. should we q the -- should we q the organ music for game stop? should we? walmart is getting into the use the video game business, traded used video game at wal-mart and groceries or get caught or anything else they sell. that would hurt game stop. one of our tax watchers said

about game stop last year remembers this? essentially you have put game stop on death watch. >> this is not in the next week. we are talking a few years down the road the essentially people going to stores will become a thing of the past. stuart: would you put it on deathwatch? charles: it was early but now is looking really vulnerable. stuart: 55 visible tangible -- >> brick and mortar, best buy and game stop by the best in the market falling apart. it looks very vulnerable. stuart: perhaps more important tech news. it is releasing a set top video streaming box next month. no word on the price but we expected to compete with a $50 will coup and apple tv. here is where it gets interesting. amazon streaming box will be sold by best buy and staples, they have been crushed by

amazon. this to me is all about the supremacy of streaming and amazon getting into another new area. charles: they will have original programming. it is a war of the titans when it comes to big tech names but it is an interesting side they will do business with best buy, helping to usher into dinosaurland but interesting how it plays out because they're making a big bet on this. it is creative destruction. stuart: tesla, a $200 price tag, it is 236, like it or something? >> contrary, goldman raised the price talk it up from 170. that is not where it is now. a think it is a little pricey

here. a lot of growth potential, moving into the battery market. this is 60% and 1-year it is 500%. tesla shareholders doing that. stuart: it is 500%. stuart: check the big board. we are up, janet yellen has the third fed meeting and she speaks tomorrow and at a press conference. i am sure you, charles payne are going to be glued to every word she says. charles: here is what i think. janet yellen stayed the course, and says a couple things, that the economy is falling apart, and the fit is impotent, can't do anything. they would love to take this victory lap whether it is earned or not. a giant difference between q e where the money goes to the u.s. treasury or fannie mae.

how did fannie mae payback $120 this year and have? the real deal is when they raise rates. that is a year from now although wall street will get it later on in the year. stuart: she stays the gradually printing less and less money. charles: she has to print more and it will be bad news for the market. stuart: it is printing less, 6340 one. we say all the time on this program and and we mean it. technology is king. apple is teaming up with the danish hearing aid company g n resound to create the world's first smart hearing aid that sinks to your iphone or ipad. joining us is kim herman, u.s. presidents of roseanne. welcome to the program. we like she wiz technology and gadgetry and we featured prominently and we think you got something like that today. can i just say how i think it

works to make sure i got it right? i get it wrong you tell me real fast. you got a hearing aid in your hand. it is very small land you put it in your ear and it sinks of to an apps on iphone so everything that comes out of the iphone, whether it is video, music or a talking book or whatever it is, anything goes straight into the ear at maximum volume. is that right? >> correct, straight into your ear, navigation, no wires, nobody warned devices, nothing intermediary. stuart: could you use it like a microphone? somebody can speak into and i hear it? >> you can. stuart: if i play music i get it in my ear. how much? >> how much is the hearing aid? stuart: we're financial program. >> the prices of hearing aids are set in local markets by health-care professionals but

generally speaking for premium technology you would find it between $2,400 and $3,400. stuart: that is in the range of a conventional hearing aid. >> yes, premium technology. stuart: a conventional hearing aid picks up what is around me, not necessarily what is coming out of this. >> correct. the conventional hearing aid is not made for iphone technology. we are the only company that has made for iphone technology. the world's first. stuart: i only get what is coming out of this. >> no, it is a hearing aid. you don't need an apple device or any other device to utilize -- stuart: now she tells me. it is right up front. everything around you, it is particularly keyed into the iphone. >> it is a great hearing aid. it has superior sound technology, with the connectivity into the apple devices you can really manage your hearing, make it very

personalized to your environment and there's also an apps that can help you do things like check your battery life, find your hearing aid, they are small. stuart: this is great idea and i can't understand why did danes should have -- stuart: there is -- we did things, we invent things and create things in america. you are not danish. what are danes up to coming up with this? >> pretty innovative. stuart: the danish vote in our audience is rather small. charles: fin is a little different. stuart: that is terrific and thank you for joining us. will you come back? >> of course. stuart: will you take his punishment again? >> i would. stuart: now to our varney cac 40 day ii, the matchups for today, netflix vs. yahoo! ibm vs. 3d. break each match up the down, netflix/yahoo! matchup, yahoo!

is a bigger company, got that, a lot more employees, got that too but netflix is the stock that has been on a tear, this is very clearly find, streaming video company. yahoo! a whole bunch of stuff they have got including the stake in ali baba. look at the two stocks you today, netflix of 15%, yahoo! down 3% even with the rally yesterday. charles, what have you got? netflix versus yahoo! and looking for the best stocks to invest in long-term, which is you're? charles: going with netflix. this guy read hastings has reinvented the company twice and is on to something and absolutely phenomenal, more volatile stock, marissa myers got the benefit of the dow. ali baba's idea comes through, the street is asking what do you have? she has benefited from it, shareholders. this guy has won twice already.

stuart: netflix for you. look at the old machines versus new machines. that is the other match up. 3d systems, new machines. ibm, huge company, big blue-chip stocks, i am going to call that up and coming to. the stock is down this year, 3d systems is down 34%. i know you like 3d, 3d systems. would that be your cinderella? charles: we ask subscribers to average down on 3d, is $60. i love ibm's ability to come back but it takes a long time. some of you are too young to remember but ibm was on deathwatch awhile back and reinvented themselves. to do it again now, they are so late, they are like this acre that moves so slow to get into clout and other areas. they will but too slow. stuart: when you are kicking ibm to the term. charles: your ago 3d was down substantially. stuart: don't forget to vote on these matchups on our face book and twitter pages.

your vote will affect who marches on to round 2. more picks later at 12:45 eastern this morning. i will follow up on a union story we brought you last month. international brotherhood of electrical workers local 98 runs one of the most influential political action committees in pennsylvania. here is the problem. a significant amount of that money is being poured into the pockets of union bosses robot. "national review" columnist julianne melcher, a will get that right, she brought this story for us and you have an update. >> the philadelphia trade unions have been dominating philadelphia's construction industry for four days through balance and intimidation. i think if you look at the statistics and the news reports it backs it up. so there has been an investigation. the union is investigated as a criminal and the investigation is ongoing, expected to focus on union political tide.

i got curious about what was going on with political ties, dug into the political action committee money for the electrical workers union. one of the construction worker unions and philadelphia and i found the directly from the political action committee or from candidates supported by the political action committee lot of money was ending up at this bar called docks union owned by the union top brass. stuart: money that was supposed to go to politics was rerouted to a bar. and somebody got their hands in and taking money out that way. >> i don't want to say there is anything illegal happening. don't think we can prove that but it looks like a pace team with union members forced to contribute to the political activities yet this is diverted to candidates who in turn spend it this far. it is bent directly at the bar. meanwhile this bar is don't buy

the top union guys. it is get the. stuart: i thought that was all 1972. extraordinary. thanks for joining us, thank you. vladimir putin in vegas president obama jokes around on youtube. brian kilmeade is on that after the break.

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stuart: a battle between two big names, burger king taking aim at mcdonald's with things like satisfies, and a big mac rival called big caned. people say who's the big rival to mcdonald's?

is not burger king. charles: mcdonald's is taking aim at dunkin donuts and starbucks. the writing is on the wall at least in america with respect to burgers and fries, americans are rejecting the more and more. they won't be the big growth areas because people don't want cholesterol or fat or pounds. so there testing the petite breakfast in san diego. fantastic response so far. the interesting thing if you get the petite coffee, $1.29. give me the coffee. no wonder the response has been like that. stuart: mcdonald's is doing that. stuart: they don't necessarily view these burger guys. it is all the same names listed want to go overseas. kentucky fried chicken was taken over by chick fil-a in america but they are growing like crazy outside this country. todd to stop it. stuart: let's go overseas. we have russia's president vladimir putin seizing power in

the crimea region. after that was happening where was president obama? he was meeting with youtube stars that appears on a sunny or die. brian kilmeade is the host of fox and friends. he is also a noted historian and author and best seller. still unchanged george washington's secret sins. stuart: russia is mocking america. >> i am in the minority. i thought funny or die was a great web site. having said all that, wildly inappropriate from the first time i saw it. in two crises and the missing plane, vladimir putin wondering, trying to i's this size of his opponent, how willing are we willing, how dirty are we willing to get our hands to defend ukraine and this becomes the no. one national news story, sitting down with a mocking website. vladimir putin now laughs at the sanctions we handed him at 10:45

yesterday morning and he is coming back with sanctions of his own and not doing any funny parody like interviews with some russian out lead. stuart: i can't remember an american president being mocked in this fashion and losing so completely the public relations battle. listen to this quote from the deputy prime minister, one of the 7 russians in this, four ukrainians having their investments restricted and their travel stocks, visas given. this happens when you take a section of the country of. i have no interest in america, he says my only interest in america is jackson pollock and allen ginsberg. that is the only interest i have in america. one of the people we are supposed to be scaring. we don't even sanction the rich guys in russia. we just picked out some random guys in russia. stuart: why you so fired up about this? >> i take it seriously. i understand the ukraine is a situation, just the beginning and all these other nations.

will we have to go back to a cold war textbook to save money? that is where we are heading. seeing america abused online we have worked hard for this prestige, we're never going to be loved by like being respected. stuart: even if the president didn't do the website thing he sent a message to vladimir putin. we downsized our military, leaving two middle east conflicts without any resolution knowing ultimately the same terrorists control afghanistan and iraq and we have a president with no sort of feel for these encounters. >> permission to engage? thank you very much, i owe you a favor. you gave me a tie on st. patrick's day. stuart: we will show the audience. >> people change. people say jfk didn't understand what was doing and we end up with the cuban missile crisis which was clearly a victory for the sky. my hope all along was he is so intelligent, he works so hard at such a young age that he would grow into the position. in ukraine, doug back and fix c

area and make sure poland is okay and the surrounding baltic states are backed up and things will be different for the next two years. stuart: i have got to move on. pete rose banned for life because he gambled on games in baseball. steroid abusers, i don't know of anyone banned for life. which is worse? i know you are a sports guy. gambling or steroids? >> give people the opportunity. if you don't want pete rose in the hall of fame, they should have a right to say no. right now he is banned and they can't vote. you have a right but barry bonds or mark mcgwire but you don't have the right to vote for pete rose. after all these years give him the chance to say no. stuart: that is what our author said earlier. one last one. the tie. i will so our audience the time you were wearing a, brian is on there right. that is a green tie, that is my tie. it was st. patrick's day because

you of irish heritage arrived in the studio with a red tie. i, and englishmen, had to take my green tie off and give it to you. >> a few saying you. you want me to go now? people do get sick of me. they asked me to leave. it happens on the show a lot too. i am willing to go. but i want to say goodbye to charles. very nice gesture and i laid it back in the makeup room. did you get it? i also took you're not. stewart cink psychotically to a clip on not where i have my parents do my tie. you gave me the knife and a tie as if i have enough on my plate, three our show and radio. i will tie the knot for him. very nice move. stuart: brian kilmeade, six hours of broadcasting every single day. will you come back? >> probably not. stuart: up next my take on the portrait of president obama's america. you can bet it will sell the

little like this from margaret thatcher. >> would rather have -- talked about the gap, and rather the gap was that. down here. it's a growing trend in business: do more with less with ss energy.hp is help. soon, the world's most intelligent servers, designed by hp, will give ups over twice the performance, using forty percent less energy. multiply that across over a thousand locations, and they'll provide the same benefit to the environment as over 60,000 trees. that's a trend we can all get behind.

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scan. they make those/drives. hit a new high of 78, we are up 3.8%. nice gain. nancy pelosi at it again telling the gop not to run on obamacare. is she any position to give advice to her political opponents? herman cain weighs in on that and has a glowing endorsement of dr. ben carson. three news items who painted a dismal portrait of president obama's america. here they are and here's my take. one. a third of us have less than

$1,000 in savings. two thirds have less than $25,000. that is middle america squeezed. 2, the government brought in a record $1.1 trillion in taxes in the last 5 months. we have never been taxed so much. kathleen sebelius will spend one trillion dollars this year, $150 billion in two years. she runs obamacare. she is a very big spender. we are not saving, but we are taxing and spending. that is the big picture. it is dismal. is the opposite of what we think of when we picture america. this is not prosperity. it is despair and decline. what are we going to do? the six is clear as it has been for two generations. president obama will continue with his redistribution, he is not going to change and under his plan america's financial decline will continue. the alternative has been spelled

out by republican dave camp, lower tax rates. far fewer tax loopholes. he is going for growth. that will return america to prosperity. we face is joy is the foremost notably at the end of the carter presidency. do we tax and spend or do we cut and grow? president obama has a changed america's at this time voters will go for more redistribution. the writing is on the wall. the decline of the middle class is obvious and a disaster of obamacare is damaging. prosperity remains the glue that binds us to get there and you get prosperity with growth, not stagnation. the era of tax, spend and go ever more deeply into debt will run its course. hopefully this end is close. ♪

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stuart: fast food workers protesting in 30 cities around the country. ongoing labor campaign to raise wages to $15 an hour and, yes, bring in the unions. elizabeth macdonald is here. what is stealing wages?

>> it has been out there for a long time. it means not paying your workers overtime. forcing them to work off the clock. what is happening right now will be groundbreaking. the lawsuit charging the goggles with wage theft. we are the parents. there is a wall in between us. it is not us. it is not the parents doing it. it is already marshaling the evidence to prove that mcdonald's does control the work environment for these workers that they could be held liable and they could be strapped with massive lawsuits. stuart: the workers are saying you have been stealing our wages. getting the evidence together and they will file suit. the suit will be against mcdonald's. mcdonald's will be in the position of having the labor department and the government

against them. the lawyers against them. your point is, they will really change the structure of the fast food business. >> yes. the hours that people work. over time. they keep checks on the worker's performance. the parents controlling the mom and pop franchise. stuart: that is a good story. thank you very much. hewlett-packard gets in upgrade from barclays. seniors, that stock is higher. it approves land in. of the present. nancy pelosi telling her democrat -- she says republicans

are wasting their time using obamacare as their electoral issue. >> you do not blow up the building to fix the leak in the roof. now that they have blown up the building, they are trying to put it back together piece by piece. no one knows what this building looks like.

people will remember the disaster that this health-care law has been come election day in 2014. stuart: that is important, herman. obamacare, the negatives have legs. it will still be a negative for democrats in november of this year. >> i am absolutely convinced of that. they are already running away from obamacare. the one thing about nancy pelosi and the president and kathleen sibelius, they continue to say the same thing even if it is wrong. while nancy pelosi congratulates her colleagues, many of them may be standing outside of congress.

i know you have spent a lot of time with him recently. >> we attended a fundraiser to get their last friday night. we talked about the importance of 2014 and not looking at 2016. i will be honest with you, the one thing that he did bring up, a race for 2016. we have to get back control of the senate so we can slow down some of the damage that obamacare is doing to our healthcare system and some of the damage that these colleges are doing to the overall economy. stuart: i had a hard time getting to doctor karstens basic politics. i have known him for some time.

i judge him as profoundly conservative. profoundly christian. a man not interested in confrontation. >> you are right on the first two. he is profoundly religious entity is profoundly conservative. he also is not worried about political correctness. he said political correctness is destroying this country. it is dividing us rather than bringing us together. your observations are right on. he is profoundly proud to be a patriot of the united states of america based upon the constitution of the united states of america. stuart: good stuff. always a pleasure.

i do trust that you will come back. netflix versus yahoo!. general motors. the real halftime report is next. ♪

♪ stuart: sony pictures maybe announcing big layoffs. it plans to cut an unspecified number of jobs around the world. this comes as sony pictures seats more than $100 million in cost cuts. the share price is 30 right now. barely changed. a joint venture with a group of investors joined by an international bank. look at the stop price. ninety-one. we will have it in the real halftime. we have a whole bunch of new

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stuart: time for the real halftime report. subject number one, seems to have -- is it a buy? charles. >> i think that it is.

they are already out the hundred million dollars. look at what happened to toyota a couple of years ago. toyota is doing just fine. stuart: he thinks it is a buy. liz, same question to you. liz: not right now. 3.2 billion cars being recalled. that is a big deal. there will be lawsuit overhang. >> i think you have a little bit more time. there is more proof on the downside. maybe a few more dollars. stuart: amazon releasing a set top video streaming box next month. is this a game changer? nicole: i was still stuck on gm. the answer is, no.

amazon streaming service, which will obviously bring in caps and the like, that is a good thing for amazon. charles: i think that this is non-news. i do not consider this a game changer at all. stuart: okay. let's move on to game stop. some would say it is closer than ever to being put on death watch now that walmart is getting into the used game business. liz: game stop is a game over. could game watch be acquired? that is the real issue. by the way, best buy, target and amazon also have trade in for used video games. that is more pressure for game

stop. stuart: how about you, charles? charles: i would not touch it right now. to me, the upside is just not there. stuart: nicole? nicole: i am so torn on this one. every weekend, my kids want to go to game stop. however, everything i read about game stop tells me otherwise. the other games that are downloaded rather than having to go to the store, that is another big, big problem for game stop. stuart: downloading is the way it is going. okay. let's move onto the varney tech tournament. netflix versus yahoo!. there is no arguing how netflix stock has been. look at both stocks this year. netflix is a winner.

make your pick on this bracket, please, charles. charles: i am going with yahoo!. if you look at yahoo!, there are no expectations built into that stock price. you are looking at a market cap close to zero. stuart: liz, what do you say? liz: i am thinking more about netflix. netflix has more excitement behind it. stuart: how about you, nicole? nicole: i think that they are both great companies. there is nothing like netflix. they are really pumping out that programming. even my father asked me

recently, how do i get netflix. it is hot and it is unstoppable at the moment. stuart: larry, last word from you. >> went grandpa is going out to get netflix, you have to put their vote on them. stuart: i have netflix, so there you go. kind of a david versus goliath system. our viewers seem to like ridi. is this the cinderella that is crashing the dance? >> i am going with ibm. ten years from now, ibm will still be around. 3 d systems, i cannot make that one play. there is a lot of expectations built into that stock price. nicole: 3 d systems may be a

takeover target sunday. i am a little weary about 3 d systems. ibm. stuart: larry, make your pick. >> i think 3 d systems. you will be doing these pics for the next 10 years. stuart: okay. liz, what do you say? liz: i say ibm. stuart: make sure, everyone, you will for the stock that you would rather own on our facebook and twitter pages. two new matchups tomorrow. that is it for the halftime report. thank you, everybody. microsoft hitting a new high. 3947. please remember, i do own that

stop. that is helping the dow as it moves up today. is that a bird or a plane? no. it is actually free publicity for camera company go pro. that is next. ♪

stuart: some scared tactics on global warming coming from the united nations. rising sea levels will displace hundreds of millions of people by the end of the century leading to widespread famine and filing contents. that is an emotionally held have lied. liz: they are being ignored. they are not getting the media headlines that they possibly think that they should be getting. also, the american people and others out there saying, hey, india, china, u.s., you have to bear the cost of the climate change. no, india and china are developed countries. they should pay up for climate

change also. stuart: they come up with more and more scare tactics. yesterday we showed you the go pro video of the diver fighting off a shark attack. look at the video that is out today. this is by core doors digital using the go pro attached to a drone. it is virtually free. liz: and it makes you feel like you are superman flying with him. one of the best commercials. this is a genius to have this video pop-up. it is phenomenal. this is pre-ipo. this is great pr for them.

stuart: video shop from a drone. that is good. all right, everybody, wrapping it up soon. your take is next. ♪ latte or au lait? sunny or bubbly? cozy or cool? "meow" or "woof"? wheels or wheeeels? everything exactly the way you want it ...until boom, it's bedtime. your mattress isn't bliss: it's a battleground of thwarted desire. enter the all-new sleep number classic series. designed to let couples sleep together in individualized comfort.

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i trade like me. i'm with scottrade. (announcer) ranked highest in investor satisfaction with self-directed services by j.d. power and associates. ♪ stuart: a green tie. that is my type. it was st. patrick's day. you arrived in a studio with a red tie. i have to take my green tie off of me and give it to you. >> you gave me that not and the tide. he has enough on his plate. stuart: will you come back? >> probably not.aughter] stuart: our viewer -- my debate

over surveillance with host kennedy. loved kennedy challenging varney. that, sir, was cruel. another one of our viewers shared that sentiment. you are one of those that ben franklin warned us about. a little cool i would say. you just lost me with your slavish devotion to government surveillance. a path of the constitution is meaningless. not so, sir. not so at all. which stock would you rather own for the long term? netflix or yahoo!? ibm or 3 d systems? go to facebook and twitter. your votes count. tomorrow we have a matchup between good old microsoft and good old hewlett-packard. we have amazon up against yelp.

here are cheryl and adam. cheryl: i will go with amazon on that one. adam: i will take 3 d systems. thank you, stuart. i am adam shapiro. cheryl: i am cheryl casone. is apple losing its way? the stock vaulters and doubts growing about how many tricks the company has left under it sleeve. adam: no one has been fired yet, but there will not be any, and this is a quote, the company investigates. tried to get out ahead. cheryl: a blast from the past. thanks say this time it will be different. adam: courtesy of the sacramento