good morning, the census bureau changes the way it measures health-insurance so we can't measure the impact of obamacare. how convenient. ali baba, china's amazon blows them away with its numbers. soon you can buy stock in america, as good a deal as facebook. those millennials are changing the rest of us. video viewing up 50%, netflix, youtube is what they're watching and change the entertainment world. golf pro's latest video shows a deer caught in an avalanche. you wwalalkk away frorom m it. that is free advertising. "varney and company," we are about to begin. right off the bat stock alerts, look at yahoo!. nice gain, 5% higher. mostly, i would say, frankly,

almost entirely due to the strong results from ali baba. we call it the chinese amazon and yahoo! owns a quarter of it. profits more than doubled. charles payne is here. to you first, what is yahoo! if it didn't have a quarter? charles: let's compare the last quarter. ali baba $3 billion revenue, yahoo! $1 billion, revenue up 66%, yahoo! up 1%. when yahoo! trotted two new digital magazines and the fact the quick and loan bracket challenge they with the technology behind it you knew you were in trouble. stuart: if ali baba is the reason for yahoo!'s stock rise, does that mean marissa meyer hasn't done much in her two years as ceo? >> is fair to criticize her but it is not fair to say she hasn't done much because the report

also said that revenues were up for the first time since july of 2012 so something positive is happening. if it was all ali baba would you be seeing a 5% move? charles: two months ago the street said ali baba was worth $150 billion. to date is $250 billion. that is worth 5% to a company that owns 25% of the company that magazine value increased -- >> stocks still up 50% over the past year and down 10% this year but i am saying there were some positives in this report aside from ali baba and you don't want to ignore that. stuart: we don't know when but it will probably be very soon. charles: such an amazing day. stuart: it is as big a deal as facebook. charles: it might be. stuart: check the big board, triple digit rally from the opening bell, pullback a little bit but 60 points higher.

we follow big-name tech stocks very closely, some people call them momentum stocks and most biotechnology stocks. they went up in the open and now they are down but we still have a solid rally for the dow industrials. art laughter is with us, the economist. we want you to come on the show today and begin with your take on the stock market. what do you say? why is this rally 16-3 on the dow? >> i don't know why today but i am bullish on the stock market because the big political changes occurring in america. i am excited about november and the next two years and november of 2016 i think we can finally get america back on track. stuart: years since the underpinnings of this market rally taking the dow to 163, the underpinning that the expectations of a conservative win in november and another one

in 2016? >> let me put it this way. if you knew the democrats were going to pick up five seat in the senate and obama had extended his term another 12 years you don't sing there would be a crash in the market beyond belief? of course there would be. whether it is this day or not i don't know but this market has risen a lot from its lows and that is because a lot of political changes occurring and once those political changes occur i think you will see a much higher stock market in 2016-17. my view. there is no guarantee. stuart: we love having you as the first guest of the day to talk about the stock market which you say will go sharply higher. charles, you are not worried about the dow up three days in a row, nice rally this week? charles: the war beneath the surface, someone said the market was up. there has been a war, an amazing work beneath the surface

particularly with these take pains, the nasdaq 170 of them have been corrected, down 20% but the blue chip names have held in there. for any money from high-flying names like utilities, blue chip names, yesterday sears holdings up anything that hasn't been dialed was finding a buyer but i think the most important thing in my view is an shakeout period where they are shaking up the very last of what you call the weak sisters, uncles, brothers, whatever you want but i intrigued by these last hour tradings in the last few days of the markets. some smart people have been buying these. stuart: what is your take on a rally this week? sandra: no one has mentioned the unrest in ukraine because that has not played a big part in the equity markets yet. we haven't seen a big sell-off because of what is happening over there because nobody knows how that will affect us. you see the action in the commodities market. oil is at $105 this morning, watching what is happening over there very closely.

if we were to see war break out you would definitely see a reaction in the stock market's the there is reason to watch that. stuart: attention raises the price of oil, up 104 and change as lisa b. back in $4 gas looks just like it. sandra: a consumer with more money and income going into the gas tank and not going to retail stores, not going to restaurants. that is a major story. lots of oil and gas prices could throw a wrench into this rally. stuart: an explosive report in the new york times says the census bureau at the urging of the white house is changing its annual survey of health insurance. the changes are so big we have lost a reliable measure of obamacare and its impact on insurance. remember the census bureau used to be independent but since 2009 reports to the white house. art laughter still with us. wall street journal headline this morning is cooking the obamacare stats.

sounds to me like the implication is they are cooking the books. what do you make of this? >> i was impressed by the new york times article. it is explicit and clear. the one thing i am surprised at which does point to your issue of cooking the books is why wouldn't they do both surveys to get an overlap and you could make comparisons overtime? that would seem to me to be very easy and simple to do end give the critics the good chance of rebutting but they aren't doing that. my best guess and i have spent a lot of time in washington in professional capacities is these technical people in the census bureau and the office of management and budget and the treasury are really professionals, first-class professionals and i think this probably is a better survey. it just should be done in conjunction with the old survey so we can make comparisons on obamacare pre and post but they are not going to do that. stuart: you go all the way to

the 1970s your experience in washington. a wall street journal said the obamacare, affordable care act was the worst piece of legislation in a generation. would you agree with that? >> it is pretty bad. it is up there in the top. it is really terrible legislation. there was a lot of bad energy from jimmy carter and nixon's price controls were not the best thing ever. you know, the tariff quotas we have got all sorts of wonderful examples of horrible legislation but obamacare is right up in the top. stuart: i want you to go back where we started, the stock market. you pleased so many viewers with your suggestion that we are going to get a conservative win in november and in 2016. if we do that, if we get a political result you think we will get how high is high for the dow industrial average? >> if you look at the stock market today compared to interest rates, tax rates and

profits in general, the market could go a lot higher just based on the relationship it has with what i call capitalized economic profits. the market could go up substantially in the next year or two, 100%. stuart: repeat that. 100%? to 30,000? >> that is clearly there. imagine if we had a low rate flat tax, free trade spending restraint, that market could go crazy. we have huge potential in this country of increasing our performance. our performance, the economy, is $3.3 trillion below where it should be if we left after bill clinton and grow normally. there's an enormous amount of upside in this market and i surely am very optimistic about the long run and it is all do to politics. it really is these guys in washington are crazy. corporate taxes. if we got a 3% corporate tax

rate on value-added instead of profits this place would go crazy. look at the income-tax. not like they are collecting too much. is too complicated and it is and badly, taxing people who work and paying people who don't work, changing that around could send the market through the moon. i think the risk as you said a little earlier, the upside risk is far greater than the downside risk and sandra is right about crimea and russia but those are problems because of economics, not military. stuart: why didn't i ask you that question at the very beginning? we would have pleased even more of our viewers. what a guy. >> when you look at the relationship between the economy and stock market could be a lot higher. stuart: we are hearing, listening, we like it. art laughter, thanks very much

indeed. >> make sure you vote in november. it won't happen without the change. thank you. got to check a couple big names which are in the news. i will call into the big name, shrinking pc market taking a bite out of its profits. no change for the stock, 26. bank of america posted a loss after big legal charge, several billion dollars there but you know what the charge is, not that big reaction in stock. they call it the four horseman, powerhouse tech stocks made investors released recently. in 1999 the big four were microsoft, dell, intel, cisco. i own some microsoft. today charles considers the big four to be google, amazon, facebook, apple. what is different about these four to the old big four? charles: a lot in common. technology revolution began in 1985 when these companies went public in 1990 and for ten years with the best investment anybody

could have made. since then they have all fallen behind in part because they had tunnel vision, stuck to their guns, set to air lanes, they burke pc centric. these new four horsemen are not only invading each other at lanes the trying to anticipate the next leg of the technology revolution which will be the drones, robots, artificial intelligence, that kind of stuff. they want to be in this game long term. >> is trying to make it look like they're into everything but the old four horseman center around the personal computer and the growth of the personal computer. now it is about smart phones, tablets and clout computing period. stuart: in stock market research it is all -- stuart: ron paul says in targeting his political group forcing him to reveal his donors' list. of course he is not going to do. judge andrew napolitano after this.

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stuart: check the big board, a solid rally 16-3, the dow is up 78, the price of gold still hovering around 1300, just below it, down $0.30. there is the action. oil up another $0.31, $104 a barrel. watch out, $4 gas may be in the cards. charles says he will make us some money which the company i have known all my life, whirlpool. charles: i have loved whirlpool for a long time. it has been a global play. number one in north america and latin america and number 4 in europe, middle east and africa but here is the thing. art laughter touched on this. one thing that will drive some over the next year or so will be the rebound in america. 2005 appliance sales peaked, went down 25% until last year we had an infection of 9% last year, should be at 7% this year.

coupled that with continued penetration in the rest of the worldwide think this stock will go first to 160 and ultimately i see it trading north of 200. this is a great stock for your 401(k). stuart: you always tantalize us with that. 130, north of 200. stuart: i try to set it up, stage 1, stage 2, the pay off. stuart: the irs wants to know who is donating to ron paul's nonprofit campaign, ron paul won't tell them. judge andrew napolitano is here. the first amendment presumably. judge napolitano: he cites two supreme court cases involving the naacp in which republican administrations sought to find out who was contributing to the non-profit arm of the naacp and the supreme court said you can't. it is not public information. the government is not entitled to know without some evidence of

wrongdoing. they can't just look at these records because they are curious. stuart: backup. why does the government want to know ron paul's donors? judge napolitano: i don't know the answer to that. stuart: all nonprofits are being questioned as to what is their political activity and if they go too far inadvertant -- certain direction they can be denied non-profit status. judge napolitano: the irs is entitled to inquire but not about who the contributors are so they can say how were you spending your money, they are entitled to look at that because that is the way the law reads, they give you the benefit of the nonprofit status. they are entitled to monitor you to make sure you are still entitled to it as i presume you were when they first gave it to you but one thing they can't look at is to your contributors are. why they want to do this i don't know. i would decent this, i happen to agree with his organization, no matter what the organization was, 501 c 3, nonprofit, it is

the government's business how the moneys being spent. stuart: if the contributors were all totally political people and groups would that make a difference? judge napolitano: not at all. he only question is how the money is being spent. it is being spent on overly political causes than it would not be complying with the requirements of the 501 c 3 that it be primarily educational. if is being spent on education will causes which can be things like a plane flight to get a person from decade to point be to give a speech at point be and get them back to point a all that stuff is reasonable, ordinary expenditures the irs is entitled to look at that but who is giving the money? what the political motivations are of the contributors protected by the first amendment. stuart: to you think of somebody contributes money to a political cause that that should be anonymous automatically? judge napolitano: now you want

to get into campaign financing? stuart: someone made a donation against gay marriage and was subsequently out and this person was dismissed or resigned from the job as ceo of a major corporation. that was because his donation was made public. it be anonymous to prevent that kind of retaliation? judge napolitano: that is the choice of the group to which he gave the money. the government does not force that to the public. back in a ron paul situation the government is trying to force entities to reveal who their contributors are. i am familiar with that case. i wish he hadn't lost his job because he should have the same free-speech rights as everybody else. nevertheless it was the organization to which he gave the money that was so happy to receive it from him that they told the world you was one of the contributors. stuart: your point is always the government must be kept out of these things, leave it to the private sector to divulge or

not. judge napolitano: if you give money to a 501 c 3 and don't want your name revealed you better find out what the policy of the 501 c 3 is. does ron paul have the ability to reveal the names of his contributors? absolutely. does the government have the ability to extract those names from him? not at all. judge napolitano: stuart: good to have you straight and narrow. judge andrew napolitano, good stuff. and next year responses to my interview with the ceo of the snooty chain. you have a lot to say. a lot of it very negative especially about this question. 32 years ago you got the company going it was big, week, wasn't it?

stuart: 32 years ago when you got the company going, mallee was big, weed, wasn't it? >> i was -- i don't know the answers that question. stuart: you were exploiting the marijuana connection. you know you were. that was just a tiny part of my interview yesterday with mike weinberg who runs coffee and snooty franchises around world. not many of you like my line of questioning.

shannon says you were going full tray goudy on this guy. mary at stuart varney came off as ignorant, his age was showing and he was trying to find controversy where there isn't any. insulting, know, rude, yes. mitchell says, i like this one, it is mostly old has beens like stuart varney said even know what that is. i have their franchise owner for 25 years and every once in a while some old dude jokes about a reference. i guess varney has to say something remotely controversial to the people awake and his mouth is moving. that was a good one. we love your comments, keep coming please. ali baba giving yahoo! stock a very nice boost. ali baba made a ton of money, yahoo! owns a quarter, up goes yahoo!. the burger chain son nick, i

know it well, to accelerate its transaction, a thousand restaurants in the last ten years up 2%. did you ever sony -- and a sony walkman? it was how you listened to music on the go but watch how young children today react when presented with one. >> is that like a movie? >> i like that. >> how about that? >> what are you talking about? stuart: that was the son of the time is video you would have to say. in our next hour i give you my take on a new piece of technology not everyone is embracing, my take on google glass. and next coming up shortly, another sign of the times, streaming video is where we are moving to. how much? we have the numbers. next you got to check this out.

or runaway horse drawn carriage in savannah, ga. full of tourists. the horse spooked, ran full speed down a street, carriage ride herd broke his heel bone, none of the passengers were injured. that is good video.

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♪ stuart: there is another 3d printing company making some pretty big strides by the look of it. it is printed 10 homes in 24 hours. the printer it used was 500 feet long. 20 feet high. each home costs just under $500,000 to build. what do you make of that one? charles: stuff like this is being done around the world. amsterdam, they did one on-site. it seems like they are buying machines from different places. it does go to show you what sort of potential there is.

they used recycled materials as well. stuart: a lot of these 3d stocks are taking a real beating. charles: that is the area where they will have to prove it is not high. the 3d names really have a lot of critics. stuart: ridi systems is down. charles: they have two pieces of good news today. it will take more than news now. stuart: listen to this statistic. online video viewing. up 50% in the past year. joining me now is vice president of social marketing. that is a raw statistic. video viewing up 50% in a year. >> good to be here.

it is all about online digital content. hulu, any type of streaming content. they are getting eyeballs on them. 60% of americans watch digital video. stuart: it is all about you. it is you millennial's that is doing this. this is your baby. >> we are driving you in a good direction. i promise. it is our baby. we are moving directly into only online video viewing. that is the future. stuart: i have to ask you, surely, you have cable tv, don't you? sack oh, i do because i want to watch you. i do still have cable.

i think i am a bit of the older generation. i also watch netflix. yahoo!, microsoft launching six original tv shows later this year in june. it is a big market and there are big players getting into it. stuart: none of them, to my knowledge, watch conventional tv, either broadcast or with cable. they just do not watch. they are all online. binge watching of various episodes of all kinds of stuff. that is what they do. that is what young people do. last word to you. twenty seconds. >> this is reflected in the networks that are also looking to do great online shows, nbc, other traditional networks, looking to do online. i cannot wait to see the numbers skyrocket again next year and be even larger. stuart: okay. i have to ask you about google

glass. you have a pair of google glasses. >> can i put these, this piece on here? stuart: we do not know how many they sold. i expect it was a pr job for that one day. what do you wear google glass for? how do you use it? >> they did not release the numbers. people are using google glass. not only for pleasure, but also for work. you can help me with my fitness. i think this is only the

beginning of what we will see google glass able to do. stuart: what is this interpretation thing? what does it do? >> i will have to look at the exact name of it. i can quickly that you know, when i am scrolling, i can look at some sort of text and have it translate that text to a different language. stuart: you can take in a text in french and it would read it out. you could see it in english. >> absolutely. only one of many amazing technologies. different kind of auto repair. they are not paying me to the company pays me.

google glass is not doing this right now. stuart: thank you very much. do you want a fancy luxury watch? i have one right here. do you want one of these? you would have to pay tens of thousands of dollars to actually buy one outright. charles: this is frank mueller. stuart: how much? charles: over 10 grand. stuart: you paid over 10 grand for a watch? >> he could sell that to me right now for 4000. [laughter]

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the two. >> first lady michelle obama getting heat from peta from using real eggs in monday's easter egg hunt. peta also says that the that and cholesterol defeats the healthy eating initiative.

a japanese court rejected a bankruptcy application. it is collapse in february after it lost 850,000 bitcoins. the company has blamed the loss on a bug in its software. he would not appear in a u.s. court this week to answer questions about the company's bankruptcy case. how much would you pay for a luxury watch? find out next. ♪

♪ stuart: lance armstrong is back. this time with a new video where he briefly jokes about his doping scandal. watch this. ♪ >> hi, i am lance armstrong. winner of the tour de france. hey, i did not write the script. stuart: some say bike enthusiasts are not so quick to forgive him. he wants to get back in the game making a joke about what he did. back to the markets. soda stream. that is a winner today. >> soda machine is rallying today. there are reports that soda stream is in early discussions to sell a state to a big soft

drink maker. not only are using the 10% spike, but look at the level. forty-one and change. it would value soda stream at $52 a share. quite a nice premium. something we are watching today. stuart: thank you very much, lauren. charles is with us. he will take a look at a stock called hercules offshore. hercules offshore. what do you make of it? charles: it is a stock that i have mentioned on air before. it is down a lot. here is the thing, when you try to pick a company that used to be great if you try to pick the bottom, it could be perilous. in this case, they have turned the corner.

they do offshore rigs her read this chart. i would not add to it just yet. i think it is oversold. it has been an unmitigated disaster for me so far. i would not add to it yet. it is what you call a value trend. stuart: that is telling it straight. charles: i will get to walter energy tomorrow. stuart: i remember that one. a new company capitalizing on what is sometimes called the share economy trend. they allow you to rent luxury watches for extended periods of time. randy brad goff is the founder and ceo of 11 james. he joins us right now. thank you very much for coming by. let me see if i've got this

right. it is a club. i pay money to belong to this club. i pay you x amount of dollars per year. i get to read very nice high end watches on a ongoing basis throughout the year. >> that is roughly it. it is in annual membership. there around 10, 20 or $40,000. there are six different two-month rotations all year. stuart: i have in my hand what you described as the omega see master. kind of flashy. >> a summertime, diving type watch. stuart: if i were to belong to the watch, i could pay you $2700 for the year. that would entitle me to this

watch or a comparable watch. >> yes. stuart: i get six different watches for two different months. or if you want a walk from us all the time, it would be $450 a month or 4850. stuart: what happens if i lose the thing? >> insurance. it covers you for that. stuart: what happens if i wanted to go for really high end, super expensive watch, how much is the annual membership fee? >> watches that retail between 30 and $50,000. if you want a watch all the time, you are talking about 17,000 a year. >> to wear a quarter million dollar watch. exactly right. stuart: $17,000 a year.

are you going to tell me how the members you have? >> we officially launched in december. we are adding dozens of members a month. stuart: you are adding dozens of members per month. you want to get to hundreds of members per month at a minimum of $2700 a year. >> correct. stuart: how's it going? >> it is going incredibly well. we are reaching audiences that some have not reached before. stuart: charles payne is sitting right there. he knows a thing or two about playing. charles: i love watches. are the manufacturers providing you with the watches? obviously, you are providing them with a form of advertising. >> we are. we are creating data.

part of the nature of the program is you tell us all about your individual watch profile and it helps our concierge match you. longer term, we will be working with every one of them. stuart: are you getting a deal from the watchmaker? >> you get a better price. stuart: excellent idea. >> i have a travel watch case for both of you. stuart: i am not sure whether i can take a gift. up next, wait for it, montana congressional candidate. the man who made the video of himself shooting down a drone. he says it is all about government surveillance. is he on the wrong side of the fight? he will join us in a moment. >> silencer? >> i like the sound of that.

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stuart: mike bloomberg is spending $50 million of his own money. montana's state senator making a bold statement about a new campaign ad. >> actually, first thank you very much for having me on this morning. really, that is trying to convey a message.

>> i did pay legislation. stuart: okay. in what way, in montana, tell me, what way does the government interfere with you. give me an example. >> they have gone into our forest and our business as an industry between the epa causing problems with our power companies and ignition and the federal government and the floor service keeping companies from harvesting those resources and the u.s. fish and wildlife service from coming in and making rules and regulations to implement the endangered species act.

stuart: let me get back to drones for a second. >> i think it is the point of good legislators to try to anticipate what the government is doing. we need to protect the rights. our job as legislators is to protect the citizens from government. stuart: okay. we thank you very much for joining us. i want to thank you for running our ad. the one where matt takes his gun and blows the drone away or at least it looks like that. thank you for joining us. the dow is up 100 points, as we speak, everybody.

our two in two minutes. ♪ [ chilen yelling ] [ telephone rings ] [ shirley ] edwa jones. this is shirley eaking.

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♪ stuart: almost all across the board stocks are. see how much money you are making. a big second hour. the white house. how convenient. doctor keith albo looks at straight versus stones as harvard reports the downside in smoking marijuana. who cares if i understand the cloud or wearable computing. the man who built retro fitness. $100 million in sales. 1200 employees. rags to riches.

♪ >> i think it is because of a lack of political changes that are occurring. i think you will see a much higher stock market. stuart: where market prediction. look at the down now. 16374. we follow the big-name tech stocks very closely. tesla and amazon moving higher as we speak. those are the stocks to watch.

it claims the census department is changing its survey to hide the effects of obamacare. we are joined by betsy mccoy. how many unemployed people gain coverage. that is what the census report is supposed to tell us. stuart: every year the senses department does a survey. >> you do not get the same picture of who is in short.

>> the old question tended to understate the number of old insurers. the new question what kind to overstate the number of people who have insurance and understate the number who are underinsured. just when that will be convenient. the survey will start with 2013, the year before obamacare goes into affect. generally what we are all concerned about is nobody will read the footnotes from him. stuart: in 2009, they were put under the wing of the white house. >> that is right. >> the implication is it is the white house.

it is the administration. you know, these numbers -- >> they say they approve this change. stuart: she has not taken kathleen sibelius' job. >> that is right. the public has always trusted the senses hero. all of these agencies that are part of the executive branch but have been trusted until now. stuart: cooking the obamacare stats. >> we need a fair measure of the increase or decrease in the numbers of an insured. stuart: you are still a critic of obamacare. thank you very much. >> what did you expect.

stuart: there is a multitude of new obamacare tax increases. here is the number. the tax increases total $409 billion over the next 10 years. rich edson is with us. he is a standup comedian and realized. he is with us on set in new york city. >> this is a serious subject. >> 20 new taxes, 400 million. stuart: that is pathetic. >> the promise from the administration is fine, we will tax you. we will use that money to spend on entitlements. we will ensure more people. that will not be as much of a problem. stuart: that is not very funny.

>> circle down prosperity. stuart: that fema quoit carries that thing all over the place. >> 2572. stuart: that is the original obamacare. the only things left are the taxes. >> yes. stuart: welcome to the show. welcome to new york. i want to look at yahoo! right now. it is off today. if you take allie baba out of yahoo!, what is left? anything? >> nonetheless, let's quickly check out stocks. up almost 7%.

>> that is the number news out of the way. yahoo! is growing. this stopped price has doubled. here is the concerned with yahoo!. they are growing and bringing in more money from display ad revenue. the amount of money they are making is down. their position in search is down also. stuart: quickly checking the stock price of bank of america. a big legal charge. $6 billion is the charge they are taking. it has hit the stock. not that hard. you have some certainty. the stock is down 2.4%. soda stream, that is a big winner. reports that a part of it may be sold off. do not know how much or how much more, but that kind of stock stimulates. we have capitalism.

nothing new in washington. also among them is a ceo of comcast. as comcast and time warner, they want to get together. is this merger going to get fast tracked because of politics? brian roberts gives to democrats >> we will have to look at this one. it is not only brian roberts. how about a chief lobbyist of comcast holding a number of fundraisers for the president. $2.22 million raised for president obama since 2007. it is washington. one would hope you get something for all that money. stuart: that is buying influence. to put it negatively, that is buying influence. >> there are two review processes. the department of justice could challenge it. the fcc could challenge it.

that is where it could be a problem for comcast. three of the five members are appointed by president, to our republicans, three are democrats. they can still vote any way they see. democrats have a tendency for consumer advocacy. while democrats may oppose president obama, the president could have an issue here while his corporate backers want to go one way, especially comcast. someone a different result. stuart: let's not forget comcast owns nbc and msnbc. >> they do own both. [laughter] stuart: why are you laughing? sarcasm. a low form. welcome to new york. >> peter barnes is here for janet yellen. i am here to post the 4:00 o'clock show with liz claman. i thought i would be part of the

company, but i am a company of one. stuart: back to lauren on yahoo!. digging into allie baba. yahoo! owns what? how are they doing? >> great. the issue is the numbers are a little bit late. this is for the end of last year. $3 billion. we are talking about what could be and probably will be the biggest ipo in the u.s. yahoo! has the option to sell a 10% stake in the ipo. that will be a huge windfall for the company. stuart: thank you very much, indeed. look at the big board.

16386. that is a nice rally. just .75%. we have another rags to riches story for you coming up. the man who runs a chain of gyms. it is called retro fitness. coming up next. ♪ 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: to i have an irs outrage story for you. the irs is paying billions in tax refunds. family members who do not even live here. liz has the story for us. tell it. liz: if you work here, but you are an illegal immigrant, you still have to file a return. to do that, you get a nine digit number. it is an identification number. what officials are finding is an

explosive road in the child care credits that are being taken. it is being called the additional tax credit for children. the fear is that these illegal immigrants are taking tax credits for children who do not live here in the united states. here is the problem., with all these tax credits out there, that is money that is immediately out the door. as soon as you get a refund, if they get that money immediately to you, it is hard to get that money back in. explosive growth in this particular tax credit. it has quadrupled in a decades time. it is going out the door to people who do not deserve it or should not be taking it. the dollar amount is more than $4 billion. the fact that it has risen so dramatically, the fear is that a

lot of money is going out the door to a legal immigrants that do not deserve this money, for children that do not live here. stuart: kids that do not live here, necessarily. it is an outrageous story. check the big board, please. pretty close. we are up 127 points now. close to 16, 400. sixteen, 390 to be exact. up 3% on goodyear. old stocks at 26. we are joined by eric. he is the ceo and founder of retro fitness gyms. he has over 100 of them in 13 states. $100 million in gross revenues. quite the success story. that is what we like on this program. eric, welcome to the program. let's run down the steps. $100 million in gross revenues. >> this year we are projected to be about 140 million.

we started franchising in 2006- 2007. stuart: that is not too long ago. it is retro fitness. >> yes. stuart: i hear you have a reputation to be on the cheaper side, lower costs, value costs, do you have a surprise for monthly or annual membership? >> we are $19.99 across all states. $20 a month. we have some added things. if you want to do personal training or classes. tanning is sometimes an upgrade. sometimes it can be all-inclusive. it depends on the market we are in. >> i started working in gyms when i was 13 years old. i was picking up dirty stuff off the floor in the weight room. i have always been around a gym. i love to work out. you could work out before or

after. that is exactly what i did. stuart: you are a big, heavy guy. >> i was an athlete. i played aggressive sports in high school. i was always in the weight room pounding weights. it was my way of venting. stuart: you are a good business plan. you are doing all right. >> i am very blessed. >> a large group of intelligence people that know things i do not know. i take my entrepreneurial spirit and passion. stuart: you are expanding. >> this year we will do 40. we have 10 already built for that year. twenty-five-32 build this year. stuart: you are bringing in sports people, athletes, well-known athletes and they have a franchise.

>> most of them have grown around athletics, exercise. they see our business numbers. they see what the numbers are. it is an enthusiastic business model for them. we just had one just opened their first love. david garrard down in jacksonville. we will start construction down there. we have a basketball player from the nba. stuart: the gym business is saturated. when i drive into work in the morning, i go all the way through new jersey into manhattan. i see at least three gyms on the side of the road as i am driving in. it is saturated. >> it is a very complex field to play on. we are a very strategic oriented company. we do our geography, our demographics. we are starting now. we just started the burrows boroughs in the last 18 months.

we waited and strategically planned our invite. it was quite frankly the economy. stuart: you obviously know you have a feel for this this. >> i do. stuart: do all the business out right? i have a large stake in the company. >> i will not tell you. >> our company's valuation will be far north of $100,000. stuart: now you are talking. >> i have been on this the whole time. stuart: i have had a series of guest on this program to run good businesses. i asked them if they are worth $100 billion. i say would you sell for $100 million. >> oh, no, my heart is in this business. don: would you sell for $100 million? >> not today.

don: do think you think you will at all? >> absolutely. how about a quarter billion dollars? >> no. >> we are in the basement level of a very tall building. we have a great trail ahead of us. we have a pipeline chock-full of franchises. it is outstanding. it really is. stuart: if i could write a check, $250 million today, you would not take it? >> i swear to god, i would not. i live a great life. i love what i do. i wake up everyday and i want to run to my office because i love what i do. i truly do. i enjoy helping guys that are struggling due get to a place where they are comfortable. i love what i do. we love making a lot of money. stuart: it is hard to believe you would turn down $250 billion you are not quite there yet. >> i would get you there.

stuart: a billion? >> sure. stuart: retro fitness. thank you very much, indeed for joining us. >> i love it. stuart: will you come back? >> absolutely. stuart: i have a billion you will come back. [laughter] stuart: my very young production staff tells me that google glass is overhyped. they say you look ridiculous when you are wearing these things. it does not do enough to justify the price tag. i will tell them why they are totally wrong on this particular case. that is next. that is my take. ♪ all stations come over to mission a for a final go.

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see if your business qualifies at startupny.com :

. stuart: janet yellen, fed chair, speaking to the new york economic club any moment now. peter bonds knows what she's going to say and he's going to tell us now, go, peter. >> reporter: stuart, janet yellen will say the fed is inching closer to raising short-term interest rates but not sprinting towards raising them. in a speech she's about to start in the hotel behind me in times square. the fed's goal to return to maximum employment with low inflation is starting to show

up in private economic forecasts which is her signal to the markets to repair them a bit more for eventually raising short-term interest rates. the feds fund rate. she will say, quote, it is a sign how far the economy has come that a return to full employment is for the first time since the crisis, in the medium term outlooks for many forecasters. it is a reminder how far we have to go, however, that this long-awaited outcome is projected to be more than two years away. end quote. she notes the improving economic indicators recently, says a significant number of colleagues believe that a lot the weak economic indicators have been due to the bad weather in recent months. i would call this, though, her light at the end of the tunnel speech. back to you. stuart: you got the right quote there, peter. thank you very much indeed. the market has not been moved at all by the comments. the dow is up 120, 130 before we got word of what she's going to say. still up 124 points.

bright and early, every morning, we hold a production meeting to map out our show for the day. today, a heated argument about google glass. our 30 something producer said you look ridiculous. glass is overhyped. he said. who's going to wear something as goofy as that. these youngsters. here's my take. i am old enough to be his father. not grandfather, father, and i have a different opinion. remember, please, in my time, i have seen the introduction of the push button phone, the cordless phone, the cell phone and the smartphone, in that order. the fax came and pretty much went. the typewriter long gone. i used to write letters, now i viber. i have gone from the walkman with headphones from the beatles to the beatles. handheld computers, streaming, youtube, i've seen it all, introduced in my daily life over my lifetime and i have

adjusted every time. my point is, you can't stop technology. you have to use it when it's useful and adjust to it whether you like it or not. it's here. and you have to live in a computer driven world. as for google glass, sure, it looks a little strange. and, yes, when you see someone looking at you with them on, you don't know what they know about you. but come on, producer. his name is justin, come on, justin. you know that glass is an early prototype. they will improve it. they will refine it. they will make it very cheap. a few years from now, the models on sale today will be in a museum and the kids will laugh at silly old dad. did you really put those things on? i am not a luddite, i don't shye it. especially as an investor. when i retire, i want my money in the companies that have a stake in the future. "varney & co." is always looking for that kind of investment.

that's why we follow technology so closely. i don't always understand it, but i can see the changes that technology brings, and i am going to run with it, justin. you, my friend are a master of diversification. who would have thought three cheese lasagna would goith chocolate cake and ceviche? the same guy who thought that small caps and bond funds would go with a merging markets. it's a masterpiece. thanks. clearly you are type e. you made it phil. welcome home. now what's our strategy with the fondue? diversifying your portfolio? e*trade gives you the tools and resources to get it right. are you type e*? but i didn't always watch out for myself. with so much noise about health care, i tuned it all out. with unitedhealthcare, i get information that matters... my individual health profile, not random statistics. they even reward me for addressing my health risks.

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. stuart: all right, some photos of amazon's new phone have been leaked online. we think these are real.

what do you say? >> if they're real, they're really cool, i'm excited about amazon's new phone, and i hardly get excited about any phone. let's show you what leaked on bgr. you can see when we pull up the image it has a photo. there's the photo with a 3-d tree branch in it, this phone is expected to be a 3-d phone. why would anybody care about that? i'll tell you why. when you are buying products on amazon sites can you look at them in different angles by changing the angle of the phone and you don't need the funky glasses. six cameras can create the 3-d image, i think that's a bell and whistle, what people will pay for. stuart: well. >> i like it. stuart: six cameras built into the phone for 3-d image. interesting. different. let's see if that's a real, actual image. another irs story for you, a new report says it is using data from social media to look at people who file questionable

returns or don't file at all. you have the facebook, go. >> instagram, twitter, people post pictures of themselves with splashy new house, car, boat, the irs potentially is using social media to basically track whether or not people are dodging the amount of money they owe the irs. stuart: i'm not surprised. it is smart. >> right, and it's 300 billion bucks, that's the tax government amount of money, not the underpayment. the irs said you know what? we will not be searching through e-mails, you need a search warrant to do that. the irs troll can be on social media. stuart: facebook is public. new study from harvard shows smoking marijuana correlates to changes in the brain. the smokers smoked average of 11 joints a week and showed differences in the part of the brain that controls motivation and emotion. joining us is dr. keith ablow. president obama and attorney

general eric holder said yeah, they smoked weed back when, do you think this makes difference to the authorities whether we go forward with legalization, doctor? >> i'm not sure, stuart, that it will stem the tide of legalization. i think what's going to happen is we're going to see the legalization proceed and then tons of data come in, documenting that this does affect people's brains and does affect their psychology buzz that's what i see in my office. it has deleterious affects on many, many people. stuart: wouldn't you say the same about a bottle of beer or caffeine? all of these make a difference in the brain? >> we had long experience with alcohol being legal, and we know there are people who are vulnerable to, it who will become dependent and need help, and many other people who seem to be able to use it socially who don't suffer terrible effects from it. we think that marijuana is

innocuous. what we find out is not for some portion of the people. some percentage of people number one can become dependent and number two, when you are not dependent because the people in the study weren't, it affects centers in the brain that may have to do with motivation. stuart: legalize, yes or no? what do you say? >> i say legalize it and prepare for a firestorm. we know when we had prohibition we had less trouble with alcohol, healthwise. but it was the wrong thing to do. now we're going to legalize this and have trouble with it, for sure, absolutely. stuart: i got to bring on a gentleman named banksy, he's a very popular graffiti artist, created artwork dubbed mobile, lovers embracing and looking at phones over each other's shoulders. doctor, you are no fan to being glued to phones. this guy banksy made a ton of

money out of graffiti of this kind? >> it's completely organic, cool that somebody who would leave traces of art here and there on city streets would be embraced as creating masterpieces and have people bid into the hundreds of thousands of millions of dollars. this particular image says it all, we're in love with our own images and technology and forgetting each other. stuart: same topic, infants, apparently lack the motor skills needed to play because they're glued to ipads and other gadgets. here you go, doctor, here's your opportunity to blast technology all over again. go. >> it's easy to do, stuart, because what are we seeing? seeing artists who know about the human soul saying we're losing ourselves in our technology and narcissism. we're seeing kids now, the study says infants lack the ability to use blocks. they don't have the fine motor skills anymore because all they can do is swipe a screen!

what are we doing? we're going to get them high with marijuana so they don't care. stuart: i visited three of my grandchildren over the weekend. we have frozen, the disney film up on the big screen and each of them had a separate screen and looking at it and playing with the separate screen, iphones and ipads. they have the screen there, the big screen there. am i a bad grandfather? i thought it was terrific. absolutely great. am i a bad guy? >> it sounds like fun until you realize it makes us mulch for people who have serious intent in the the world to do serious damage and want to do it with their hands and blowing things up. it's all fun and games until you realize you've lost your way. stuart: no hope for a luddite like you. thank you very much for joining us dr. keith ablow. >> be well, my friend. stuart: breaking news about the heartbleed bug, warning to change passwords because of the bug. the company says no accounts

were accessed, they're doing this out of abundance of caution, they say. yahoo! having a good day, but is it thanks to ceo marissa myers leadership or is it all the ali baba effect? we're going to break that down next.

. >> at the time, gm was facing 2500 lawsuits of various kinds. mary barra announced that the company is creating a new global product integrity organization to focus on product safety and quality. let's check gm shares right now. up more than 1%. another 3-d printing company making major strides. chinese company has printed ten homes in 24 hours. using recycled materials. the printer used was 500 feet long and 20 feet high and each home costs less than $5,000 to build. check the 3-d printing stocks right now, all with a nice up arrow. the real halftime report starts

next. ew york? i tell people it's for the climate. the conditions in new york state are great for business. new york is ranked #2 in the nation for new private sector job creation. and now it's even better because they've introduced startup new york - dozens of tax-free zones where businesses pay no taxes for ten years. you'll get a warm welcome in the new new york. see if your business qualifies at startupny.com

♪ ♪ ♪ [ tires screech ] chewley's finds itself in a sticky situation today after recalling its new gum. [ male announcer ] stick it to the market before you get stuck. get the most extensive charting wherever you are with the mobile trader app from td ameritrade. . stuart: yes, it's that time when we bring you the real halftime report from chicago, larry levin. from miami, shar galani, next to me, lauren sim nety and liz mcdonald. former reagan adviser art laffer saw a rally for the stock market. the market could double if the

gop wins this year and in 2016. larry levin, are you buying that? >> well, i don't know about double. i mean double would be a really, really big move, stuart. but i would say that the gop getting in and unceasing this nanny state would be good for the markets, i don't see why corporate america would continue to do good. double might be a bit much. stuart: pulling back on the double idea, how about you, liz? >> i don't think double either. we may not have a president who fights his own bull market like this president has. the president has to take a sprint, victory lap about the bull run on wall street. double may be a stretch, president obama, just to remind you, stuart, he said of mitt romney he's going let wall street run wild again but take a hammer town on sesame street. doubling may be a stretch but certainly a push upward. >> shar, chime in on this one? >> i think it could double, you

have to go through the full cycle, certainly if gop candidate was elected and had an eight year run, i think easily double. actually more. i'm with him all the way, that's predicated on the gop winning, but i think any change in government would be healthy, if it happens to be gop, i'm for that. yes. stuart: any way you slice it, it was a great show to the start at 11:00 a.m. eastern time. when a guy comes on, like art laffer and says hey, it's going to double. we like to hear this. the dow is up at the moment, nicely. looking at three days of pretty solid gains. larry, would you be prepared to say that the worst is over now? >> i don't know if the worst is over, but i would say that the market doesn't want to fall off the highs, that's for sure, stuart. sitting around 1850 and the s&p 500 close to the highs. to me, the worst is going to be over if they don't start tapering. if we don't hear that, we're going to keep going higher. ifif inintererestst ratates g g

the market will take a hit, i don't think there's avoiding that. we haven't seen interest rates go higher. stuart: shar, i don't want to get technical, the amazons, the netflix have been beaten up lately. are you buying on these dips? >> no, i think there's more to go. the action yesterday was a little strange in terms of in the afternoon, everything caught a bid, but all said and done, the blue chip stocks didn't do as well as the nasdaq. the selling is not done. we're going to see a drop here. i give it a couple weeks but i'm not buying here, way too early to start nibbleing. >> we hear you. take a look at yahoo! please, the company owns 24% stake in alibaba, the chinese amazon, and alibaba made a ton of money in the latest statement. before we get to the alibaba effect, liz, to you first, the pressure is on marissa meyer, ceo of yahoo!? >> i agree. yahoo! is the comeback boss, remember jerry yang had to come.

same with dell and j.c. penney. one media analyst said when you call back in the ceo it's like calling in the plumber. marissa meyer inherited that. we're talking about gains and alibaba ipo could be based on stake in alibaba. don't know the dollar amount yahoo! could cash out at. marissa mayer is moving the desk chairs, doing stock buybacks and that's what's boosting the stock up. stuart: you know, that's a huge cash flow from the alibaba stake. shar does, that make you want to buy yahoo!? >> if i was to buy yahoo! it would be very short-term, just for the ipo. the alibaba ipo. i think that aside is not a lot of value to yahoo! maybe 12, $15 of stock price yahoo! the rest is alibaba. i'll wait to see the alibaba ipo and exit there. stuart: i have ipo for you

today, molus, boutique investment bank, laura? >> priced at 25, as you can see trading at 26.34. this is the first investment bank ipo since the financial crisis. i took a look at the peers. moelis, green hill, they are all up today. stuart: investors like what janet yellen had to say. arguably the most powerful person in the world. larry, she's about to take questions. are you getting excited and think it might move the market? >> i don't think she'll say anything too crazy. maybe a little move. the biggest thing to make the market move is keeping banks more capitalized than they are now, that will hurt the banks and the financials. that's what i would watch for the most if you are looking for a knee-jerk ration now. stuart: you are an ardent fed watcher? >> she is careful in her answers, we know what happened last time when she overspoke, if you will.

it will be ardent in terms of q&a. stuart: there you go, a nonevent. liz, shouldn't you get research done? >> so i can continue to make you laugh and entertain you, stuart. she will be pressed on interest rates forecast again, we'll hear that story line trucked out. when you look at what's happening with treasury yields before economic growth and inflation, still flat since 2009 in terms of growth rate there. what will yellen say in terms of boosting economic activity in the market? i think the bank reserves issue is one that could hit bank stocks. >> if you had to -- if you could ask a question of janet yellen, lauren, what question would that be? >> i would defer to the harvard economist martin feldstein. i'm interested in the questions that he asks of yellen. stuart: thanks, everybody. that's it for the halftime report, we thank you one and all. the fed's janet yellen set

to answer questions any moment now. we'll bring it to you as soon as she starts taking those questions.

. stuart: there's no denying, this is a rally. the dow jones industrial average is now up 122 points. we pretty much know what janet yellen has said in her prepared

remarks. we don't know what she's going to stay in the q&a session. it has not disturbed the market. up 120 before she spoke. up 122 right now. here's where the action is today, not just in stocks, in the price of oil. it was at $104 a barrel, it slipped to $103.40 that has gone on quite a tear. the problem is ukraine, very much a center of energy crossroads. tension rises in ukraine, up goes the price of oil. that has implications for us. look at the price of gas. as of right now, the average price for a gallon of regular all across the country is $3.65 and has gone up, i believe, for 25 straight days. we're just coming into the driving season, the price of oil has gone straight up, that implies that maybe this summer we'll get to an average regular price for gas of $4. we're not there yet. some states are very close, california in particular, but

watch out for that. $4 gas would get everybody's attention and have profound economic effects. back to stocks. microsoft please. i believe it's back above $40 a share, yes, it is. i own some of it. it was at $41 recently, dropped down to $39. back to $40. established a new baseline of 40, interesting big name stock. google split, i don't know how many days ago, maybe a week or two ago, it moved to 510, now 559. post split, it is up approximately 10%. that is a very nice rally for a stock, a company which is buying into every conceivable brand new area. that's google for you. here it goes. we have what we call the four horsemen. these are the big name technology stocks making the running today -- google, apple, amazon and

facebook. a lot of people say you've got to have at least one of these stocks in your portfolio for your retirement. ladies, lauren, liz, would you agree with that? one of these four. >> all four. stuart: for your retirement. you would? . >> i would. google especially. and google and amazon especially. stuart: amazon, google, apple and facebook. out of all of them -- they're all super advanced technology stocks. >> i hear you, tracking with the gurus on wall street with the hedge fund guys own, they tend to own three, not one of them, they tend to not own facebook. there are concerns, the hedge fund top guys who invest and goo inin day in and day out on hedg funds. stuart: okay. >> backing off a little bit on facebook. stuart: got to wrap this up, the dow up nearly 120. your take is next. (announcer) scottrade knows our clients trade and invest their own way.

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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: right. janet yellen, fed chair has wrapped up her prepared remarks. she is about to start answering questions from the audience. this is where things could get rather interesting because it is unscripted. we don't know what the response is going to be. to take you through it, here is deirdre bolton. >> clearly very clear remarks, another example of straightforward communication from the federal reserve, thank you for that. for my first i would like to go back to the problem we discussed earlier, and that is the long-lasting nature of unemployment in the red states following the financial crisis. we see that below the national data, which are improving, there is a wide dispersion and labor market performance.

big differences by geography in which some cities and some states are doing far better than others. and also a very dramatic difference by education. much depends upon how much education and vocational training a worker may have. what is the role of the federal reserve in addressing these aspects of unemployment? what government policies might be helpful in what private actions might be helpful in finally getting unemployment back down to more comfortable levels? >> thank you. i think you are absolutely right the recovery and labor market has been exceptionally slow. the financial crisis i think left us with a lot of headwinds that the economy has been strgl