i will hand it over to stuart varney. stuart: thank you, maria. glad you could join us. not a bad way to come back from the holiday. we will have to take this from obamacare. much higher cost for employers. how about this. dim the lights. turn on the dishwasher from your iphone. you are not interested? okay. apple thinks you will love it, eventually. uber now worth $17 billion. it gained 5 billion over the weekend. it is a taxi app. we will try to explain it. varney and company is about to begin. ♪

stuart: let's take it off this morning with some of the big-name stocks. pilgrims pride offers to buy wilshire. they are both food conglomerates. remember, phil scheier offered to buy pinnacle for $4 billion. conglomerates getting together in the food aisle at the grocery store. we are a couple solid rallies away from 17,000. we have that graphic ready to use. here is the s&p 500. look at it now. up another 10 points. charles is here this tuesday morning. a lot of people talking down the market. you are always bullish. not about the overall market, but about stocks that you like.

charles: i am bullish on america. i am not always fully invested. china predicted the top was ridiculous. in the last 100 years, there may have been one dozen crashes. are we close to the all-time high for the all-time low? nothing has outperformed the market. it is about owning great individual companies. stuart: a lot of stocks that have gotten beaten down over the last couple of months. amazon is well above 300. they are coming back. the market is now about 60 points away from a record high. that puts it about 300-point from 17,000. charles: we are close. stuart: we bring you good news this tuesday morning. the market is up. you are making money.

checked out 401(k). obamacare. first, the irs will find employers as much as $36,000 for each worker they draw from their healthcare plan. a big cost increase for the states. they will have to pick up a chunk of the cost of new medicaid enrollees. look at california. the unforeseen costs coming out of the woodwork for obamacare. for more on this, we are joined by a detroit. welcome to the program. good to see you back again. >> thank you for having me, stuart. stuart: the irs says to employers, you cannot just give them a bunch of cash. they cannot say that.

the irs will not let them. does that interfere with a lot of the plans that big companies are already making? >> the news here is not that you cannot do that. the smart companies were really following that. the size of the penalty, that is news. the other thing is this message here seems to be, if you are an employer, whatever you do, there will be cost. if you pay the ach and you try to keep a plan, it is about $5000 per employee. whatever you do, there will be new cost. stuart: i would simply not hire as many people as they may have hired if the economy ever expands. >> we did a study that showed over a ten-year period you would

see this. yeah, i think it is a very real possibility. stuart: i want to get to the second item. it is a very technical thing. if you were previously eligible for medicaid under the old rules and you sign up now under the new obamacare walls are responsible. this was not foreseen by many people. it is a big cost increase for the states. >> i would say all states. half the states are not accepting. the people who were previously eligible. stuart: higher costs for

employers. will this emerge? will this hit the mainstream media? >> that is always a good question. they kind of buried the lead. this medicaid story has not been getting that much coverage. it is a big question. so many stories about so many ach cost. whatever you do, whoever you are, there will be increased costs. i think it will be hard for the democrats in the upcoming election. stuart: thank you very much. take a look at the share price for apple. six dollars. we have reports in the financial times that there are plans to turn iphones and ipods into universal remotes. they can control anything in your home.

i have to make sure i've got this right. proper proposes that using an iphone, one of these things, i can speak into it and say, dim the lights and 200 miles away in my home the lights are dimmed. is that right? is that true? >> one of the many features they are looking at. you remember the smart controlled thermostat. what apple is looking to do is centralize all of this onto this device that you already use every day. stuart: when i first heard about this, i thought that there is no way i will speak into a phone and say dim the lights. then, when you think about it, when you realize how easy it could be, if you just talk into

a phone, start the dishwasher, dim the lights, whatever that is, that is easy. maybe one day i will want to do that. >> maybe one day you will. your phone knows where you are at all times. it was one thing that apple infused with the past and that they filed. it is a really compelling value proposition for apple. stuart: do you see it as absolutely inevitable? this is the trend? google and apple are on it. >> it will be a huge market. some really compelling numbers in the next five years or so. being connected to any mobile phone. that is called the internet of things. it is a very large market.

stuart: i think you just put your finger on a small problem. you have to have a dishwasher that turns on when you speak into series. i may need a new dishwasher. is that correct? >> you may need a new dishwasher. over time, when you think about new home construction, you are eventually going to just get these devices and applications that are already connected. it is coming. stuart: okay. i am not finding it much. [laughter] stuart: charles, apple is above $600 a share. i should have some apple stocks. charles: i had it in my retirement account for a while. i told some subscribers today to buy some.

i feel like maybe now the company is moving out of that steve jobs shadow, if you will. i know you and i have a bit of a difference on that. instead of borrowing money, being shaken down by an investor to pay out dividends is dumb. this is a real serious battle. this internet of things is going to be like 19 trillion. $300 billion industry for the players in it. in 2003, there were 500 million devices connected to the internet. by 2020, there will be 50 billion devices. it is a huge powerful thing. i am glad to see apple getting aggressive. i want to see them use that money for acquisitions.

do not be shaken now. use the money the right way. stuart: priceline up big this morning. nicole: take a look here. it is up almost 5% at the moment. this is the most expensive stock in the s&p 500. right behind it would be a name like apple. it is up 15 fold since 2008. priceline is just a big mover to our momentum players. they spoke, linkkdin, yelp, pandora. stuart: that is what happens. a nice upmarket on tuesday morning. it was just last week that the taxi app, uber, evaluation jumped from 10 to $12 billion.

it is jumping again. $17 billion. you have to explain to me what uber gained $5 billion of evaluation over the weekend. charles: when disney bought them for $4 billion, a lot of people said that they overpaid. facebook bought instagram. a week earlier it was less. one year it went from 30 million to billion. now people think this may have been the greatest move that mark zuckerberg has ever done. people move away from facebook into instagram. it is a very small market. it is not hard for me to question the people involved. listen. stuart: does it remind you just a little bit of the globe.com?

charles: it was not making any money. these guys may not be making earnings, but the money flowing into the topline is really phenomenal. stuart: drop box. charles: values based on reports and fundraising and things like that. i don't know. it is really tough. stuart: after the break, more development into the nsa spying story. political activists, journalists, tv personalities, who knows. actual names will be released. all rise, the judge is next. ♪ ♪ getting to know you both go getting to know all about you ♪

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or incased acne in women may occur. report these symptoms to your doctor. tell your doctorbout all medical conditions and medications. serious side effects could include increased sk of prostate cancer, worsening prostate symptoms, decreased sperm count, ankle, feet or body swelling, enlarged or painful breasts, problems breathing while sleeping and blood clots in the legs. common side effects include skin redness or irritation where applied, increased red blood cell count, common side effects include skin redness headache, diarrhea, vomiting, and increase in psa. ask your doctor about axiron. hi, are we still on for tomorrow? tomorrow. quick look at the weather. nice day, beautiful tomorrow. tomorrow is full of promise. we can come back tomorrrow. and we promise to keep it that way. driven to preserve the environment, csx moves a ton of freight nearly 450 miles on one gallon of fuel. what a day. can't wait til tomorrow.

♪ stuart: welcome back after a long holiday weekend. this is what you want to see.

how about the price of gold this morning. silver actually down today. a 2% drop for gold. oil $104 a barrel. watch out, the driving season is upon us. president obama unveiling new greenhouse gas rules. reducing the amount of carbon. look at the coal stocks. two of them are up. one of them is down. they took caution in advance. over the long haul, all of those stocks are down. tweet us using #askpayne. one of our viewers asks about seed drill. i never heard about it. i do not know whether charles knows about it.

charles: i do know about it. i am getting a ton of votes. please keep them coming. stocks are down a lot. as we have all the success on land with natural gas and fracking, all of this sea -based stuff, it has suffered a little bit. i think we have gotten to the point where it is oversold. i think the streets overreacted. i think it will go up. i suggest whoever is in it to use 34 as a stoploss. if they miss again, it will not be pretty. stuart: you have a new show that starts next monday. a journalist that helped edwards noted leak all of that documentation. he is now set to make his biggest revelation yet by

publishing the name of u.s. citizens that are targets of the nsa. he says he will save the best until the last. all rise, judge andrew napolitano is here. i know you approve of what snowden did. >> i approve of what snowden did and i approve of what greenwald did. my background knowledge of this is in exceptional interest in it. this weekend i read greenwald book. the names are not in there. you do not know the names. the statement that the government targeted names. the book came out two weeks ago. the book is compelling and fascinating. it describes a heck thick, frantic two weeks of 24 hours a

day laboring in a hotel in hong kong to verify the accuracy and authenticity of what snowden gave him. basically, he gave 1.7 million nsa documents. each of which has been authenticated as a true and real accurate copy of an nsa document. he has had this stuff for over a year. now that his book is out, he is about to leak out the finale at the end of a fireworks show, as he himself described. i do not know what this list will include. stuart: we don't exactly know what spying means. we do not know what the nsa was looking at. your name may have popped up on a phone call.

>> we know what the nsa is looking out from the book. the nsa's motto was collect it all. collect it all. the nsa was not in the business, is not in the business today of discriminating between good people and bad people. the nsa's model is get it all and if we need it, we will have it there to access it. just get it all. stuart: i approve of that. if an incident occurs, we know who did it. i want to backtrack through all of those records. that is another story. if my name pops up in this list, you do not know that they have actually been recording my calls. >> yes, you do. stuart: you do not know why.

>> everybody's e-mails, bank statements and utility bills. stuart: it does not mean i am a spy. >> i think, reports have quoted mr. greenwald fold over the weekend. i think the list is of people they targeted even though they gathered information. the people that were interested were not terrorist or even remotely suspect of terrorist activity. just people that the government wanted to know who they were talking to. stuart: okay. i previously said i do not mind if they collect it all so they can backtrack on a terrorist. >> give me your pin number to all of your accounts. do you trust me with that?

stuart: no. >> why would you trust the government with it? on occasion, there is necessity for that. will you get the government your pin number? stuart: if they collected it and collected everybody else's. >> icu squirming a little bit. stuart: look into one of the monitors for a second. we will say goodbye to you. i ignore the carbon footprint. that is not all i did. it involves an emu and a baby deer. i will explain it all and show you after this. we build very big, huge

bonfires. yes. more on my carbon footprint. ♪ lattor alait

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bonfire will be blazing. we build a big, huge bonfires so

yes, i ignore my carbon footprint. if my emissions cause a weather change somewhere, sorry. those were some of my plans for this past memorial day weekend and yes, i did create one job and bonfire as you can see keeping my dog to the left nice and warm but i wanted to show you another photo from my weak. i bet you weren't expecting this from a guy who likes big bonfires. i found that little fawn running around a property ended even let me get close enough to hold him. his mom returned quickly to reclaim him. all is well but to top all loss checkout this video. that is an imu running down the road or walking steadily down the road near my farm. friend took the video. no idea where the bird came from. you don't see australian birds room in upstate new york

everyday. tastes like chicken. we asked how you commemorated the holiday. here are your comments. r j says i fired up the grill and enjoy family and dear friends remembering the rose that made it possible. moses ads as an american living in the u.k. i will be watching the e.u. election returns. truth is they don't like europe any longer. jan said this, we barbecued ignoring the price of chicken, vanilla extract and limes, well done, sounds like a great weekend to me. breaking news, the federal trade commission issuing a report recommending data collectors, here are the facebooks and google of the world, required to give consumers more control of the amount of their personal information collected and shared. congress would have to pass legislation to force those

companies to do that. legislation requiring recommendation. more big-name, stocks in the news, financial stocks leading the rally, on the upside, big banks right there, nice percentage gains for the big banks, best-selling author tennis -- thomas take it the, let's angle size it, that guy right there, income inequality on the rise and capitalism is to blame. turns out he may have got it wrong. we have always thought that. we will fully explain it after this. link. ♪

[ girl ] my mom, she makes underwater fans that are powered by the moon. ♪ she can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. ♪ my mom works at ge. ♪

william fuente a modest rally holding tuesday morning. the dow was up 16672. the transportation index is at a record high, individual stocks many of them within the index moving straight up. the s&p 500 record high last friday, 19001909 moving further into record territory, rally

across the board. arrow spatial has $150 million financing and investors love it. that will keep them going up 14% at $3.88. we have the financial times poking holes in french economy's thomas picardy's work, a financial times investigation found data problems, errors in his work, these include an explained entries in his spreadsheets, cherry picking data souranscription errors. he fired back saying that analysis is ridiculous. his premise is inequality is unsustainable and you need 80% tax rates to bring it down again. eikelenboom this income inequality argument is off base. capitalism being the villain in all this, there's nothing wrong with people getting rich in this country and people like getting rich. the notion in 1979 the same 1% of the same 1% they are now.

there's a lot of portability. some quince down, some went up. we should applaud that. we should take from people, punish success by taking from them that somehow that will help the masses. all we do is enable mediocrity, don't get a college degree if someone else makes it, we will take it from him and give it to you. toned try to be better if someone makes it, take it and give it to you. no way is that sustainable. income inequality -- always widest in industrial revolutions, always closer during depressions and u.n. grading committee quality and wanted to be narrow take north korea? that is where we could be. william fuente i hope you can sustain this energy when you have a live show. william fuente our next guest says he has a solution to the shrinking middle class. it would be employee ownership and profit sharing. he wants tax incentives for corporations which give their workers stock in the company and

share the profits around. we are joined by joseph as the, author of the citizens professor. don't tell me you've voted to ban condoleezza rice from a commencement address. >> i think every important politician should have the right to address every college campus in the country. william fuente when you did not approve of her being run out of town? >> i wouldn't approve of her roar anyone else run out of town. island non-partisan on that issue. william fuente when you are welcome on this program. you have a plan in your new book, you give tax breaks to corporations if they facilitated the ownership of stock in that parent corporation of the workers and facilitated the sharing of wealth, of profits. that is what you want to see. >> absolutely. the book is a story of american history and makes the point that washington, jefferson, hamilton tom adams and major founders

felt the solution to economic inequality was broad based property, they implemented this, incredible radical policies to make sure every family would have enough land for economic liberty. william fuente sounds like the employee stock ownership programs which have been around for a long time. >> similar, the problem is since the first george bush administration republican and democratic administrations have cut back on tax cuts and tax incentives for share plans. that has been a really bad idea. with all this discussion of any quality and by the way i disagree with the financial times criticism. william fuente wait a second. supposing apple introduced the plan you are talking about, mass ownership of apple workers and sharing of profits. apple would still have to bring that money back from overseas and pay a 35% tax rate on it. >> apple is a perfect example what i'm talking about. apple has a lot of profits or gain sharing, as a share stock

options and restricted stock with employees. every company could be like apple there could be less economic inequality in the united states. william fuente which companies did not do this? >> i don't want to condemn specific companies but what i do want to say in the fortune 100 companies like google and cisco among small-business we have 10,000 small-businesses with e stops. family businesses like profit-sharing. they're close to their workers. eikelenboom this other notion, financial times brings up with london property a lot of people analyzing this data say the differences and equity but home ownership. people who buy a home and done it 20 years versus colleagues to rent a home for 30 years is where the difference is with income inequality or net worth. what happens? how do you address this without punishing the person who made the announcement? >> the founders had a specific approach, they want everybody to

have a large amount of property and property would yield in come on their wealth. eikelenboom is not happening. >> it is not happening now because the new type of property is corporate property and financial assets. eikelenboom what about a home? >> not enough to provide people with income for their retirement to send their children to school. a home is to live in. eikelenboom you got to be kidding. over history every 20 or 30 years the home doesn't move up for a person to make a major investment on it like sending kids to college. >> most of the households who are wealthy and the united states they are wealthy because they have a second income from capital. the founders of the american republic like this policy whether they were on the left or right, that was their solution and that is the story. eikelenboom to the denny's in in the game will we take from people who have the capital? >> you are accusing me --

eikelenboom i am asking you. >> what we do is adjust all wealthy people do, they borrow money to buy capital assets, and the interest from the assets. that is the employee stock ownership plan. and it is not about redistribution. william fuente thanks for joining us. we appreciate it. officials say it will cost a $15 million to clear detroit's urban blight and when all is said and done it could cost $2 billion. we will discuss the future of the motor city next. we're moving our company to new york state.

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>> another acquisition, check inc. for $300 million, that is due later today. the smart phone apps is used by 10 million people to track and paid their bills. sony play stations heading back to china after the company with a longstanding ban on video game consoles. sony streaming of the

state-owned chinese company to sell place station and games in shanghai in free trade zones. sony and shanghai oriental will set a two joint venture companies. sony is hoping strong play station sales will turn around its troubles continue with the electronics division. and report on detroit straight from hard-core, west bulls, and that is it.

♪ william fuente i have seven grandchildren. frozen has reached $1.2 billion general income. the fifth highest grossing film globally. sorted out for me. nicolmac easy for you to say. look at walt disney, the stock has moved to new record all time ghs. you menedzen, tha the highest grossing animat five tiff all some rs that include avatar and harry potter.

amazing how we watch disney stock moving to all-time record highs, is a 30% over the last 52 weeks and let it go continues to do well for the movie, that was a big song in the talent shows this year. can't tell you how many kids saying it so low. william fuente let it go. thanks. charles says he will make us some money with a company called candy technology. eikelenboom you remembers this. william fuente the electric car rental ich. w ewerout at 21. it has come down a lot. line at says 6 million cars off the road. don't know if it will be cash for clunkers deal but they're putting so much money behind these, critics call them go-karts and things like that, it will be s success, it is above 13, one of those patented gallops to the upside.

is volatile but ready to make a huge move, and 11 is a stock, looking for a move north of 16. william fuente we like this one. troit get out of bankruptcy. it will spare detroit's retirees from pension cuts and avoids having to sell artwork from city museum. hard-core porn, the star there of is with us now working out of downtown detroit. >> i do. i have my store in the heart of the city. stuart: we want a progress report, two three months ago, what is it like doing business now? >> i told you they troy was on the uptick. nobody believed me. dan gilbert, a state of michigan coming in. and people dying to draw money

on us. it is unbelievable. stuart: downtown is growing? >> by leaps and bounds. and american and jewelry and loan, we are packed with tourists, people are coming in droves. stuart: detroit is a forest destination? >> we have busloads of people coming not just on the weekends the during the week there's so much growth. stuart: you are typing your own book. >> i wrote a book but not talking about before. stuart: when you do business on it. >> the economy was terrible there. we love our town, what the fort has in their hearts. i will show you. i will fly you there. stuart: i'm not allowed to

accept such offers. now look. stuart: i hear there's a plan to bull those of big chunk of downtown d. ford, derelict housing and that sort of thing. >> go down the streets of the fleet, it is a regular city, go to chicago, new york, houses are burned out, we need to get rid of the blight. we belong to this group called blight busters. we are one of those people that are out there. $2 billion may be to bulldoze the bad bits. >> people want to invest in detroit, europeans, chinese, european union. charles: what i'm worried about is how do you get around making a quick fix for downtown they troy without fixing the fundamental issues of a real illiterate populace that has been beaten down? but just the pockets of great places where you brought in tech

companies? i brought a watch from them, will you just have pockets of this or can you fix the entire city? >> there won't be an overnight fix, no question it is going to take time. once the kids start wanting to go to schools, but to get a better education, and one of those advocates. and we want to make sure they have a roof ever their head, food over there tableland get indentation. is not a quick fix. it took a long time. but generational thing and it has to change. stuart: appreciate being with us, the show is still on the air. >> we premia tomorrow night, wednesday. stuart: that is still coming at you. >> 3 runs are okay. we don't get paid from that. you still want to give me that

$20. i don't forget you still owe me. stuart: don't you have an agent? >> we are just a reality show but we are a pawnbroker first and foremost. stuart: thanks very much, a little change of subject, tootsie rolls, cinnamon toast crunch, as the cigarette flavors, we will explain it all about that in a moment. can you start tomorrow?

yes sir. alright. let's share the news tomorrow. today we failrly busy. tomorrow we're booked solid. we close on the house tomorrow. i want one of these opened up. because tomorow we go live... it's a day full of promise. and often, that day arrives by train. big day today? even bigger one tomorrow. when csx trains move forwaeco. csx. how tomorrow moves.

stuart: big brands fighting the cigarettes liquidmakers. loren has details. who is doing what to whom? >> it is about brand protection, tootsie roll, cinnamon toast crunch and cease and desist orders, letters basically to the makers of the e cigarette saying don't put our brand on the flavor of your liquid that is addictive and markets would kids. companies cannot do this because

the same question is raised about is largely omega rated -- unregulated industry. stuart: what went to do that? sees and desist, i can understand that one. apple wants your iphone to your home away from home. control your dishwasher and thermostats from your iphone. we are talking about that at noon coming up. the around the world yachtsman does alone in studio. our 2 starts in two minutes.

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to make our world a little less imperfect. call... and ask about all the ways you could save. liberty mutual insurance. responsibility. what's your policy? stuart: we don't think government works. is like a dead hand laid on productive people. we have evidence that voters are beginning to see the light. you should be allowed to try any drug you like. stay right there, legislation to give you that right and we absolutely take our hats off to anyone whose sales from the

world nonstop alone. stay right there. you will meet the guy. good morning. right up front we lay out the top stories this tuesday. check your 401(k), setting records, we are endowed 17,000 watch. europeans upsetting established quarter. voters go and ty e.u.. apple, running your home by remote, the stock is up. lucy caldwell is here behind right to try as in any drug a dying person wants. so is alex thompson. around the world yacht and a loan when he was 21, right here for us today. i got the big-name stocks moving your 401(k). start with priceline. look at it go, straight up this

morning, $53 higher, that is a 4% gain. panasonic expects to beat tesla's old battery manufacturer and the company's factory. the share price is up $4, 2%. look at netflix, shared the low 400 this morning. that stock is down. and moving up, 1909. two biggest gainers in the s&p our first energy and exxon. nice gains for both of them. un to the sea change in europe, and believe me this is a >>. voters over there rejecting the e.u.'s policies showing strong support for anti-establishment candidate. a lot of these groups in britain

and france are not really fringe groups, they are moving toward the mainstream and they really don't like the european union as it stands now. >> they are mad. this is an election that went across europe, members of the european parliament. they were voting for the delegates to the european parliament to. who do they elect? people who don't like the european parliament. it is the canary in vocal mine. whether it is left-wing or right-wing or independent they all voted similarly. they don't like america, don't like the european union, don't like their established political parties, they don't like austerity which governments force them to have. that happens when people go through a challenge, and we revert to the tribe, your own ethnic group, don't like immigrants or outsiders and use

or don't want to believe global governance unit. stuart: i don't know about the anti-immigrant feeling. to me it is more an anti bureaucratic movement. europe is run by a bloated bureaucracy, it doesn't work, and minutiae of rules for everything that is getting on a lot of people's nerves, it was an anti bureaucratic move over the weekend. americans are more government bureaucratic and you will get the same -- >> why is this happening? president obama thinks we will have bigger government and solve everybody's problems and whether it is the veterans administration or unit after unit that big government doesn't work, veterans administration doesn't work, europeans are coming to the same conclusion and saying something is wrong, we don't like big bureaucracy or the we have given our own right

to determine who we are, and we want to bring it home or make your own decisions at home. stuart: what is it about america that this new european view law doesn't like? >> they look at america in some countries, america got pushed into this war, we don't like the war in iraq. we are looking at a rise of vladimir putin, we're seeing a rise of america, russia, doesn't seem the united states is there to help. stuart: the national front, a quarter of the votes. she has been in russia praising vladimir putin to his face. >> again, that is an anti-american thing, we don't want to be around america, doing stuff we don't want to do. what we are looking at, vladimir putin, this is a strong guy, a

strong leader they don't want to be like or a part of, they are not voting for socialism or communism but respecting the dominant leader in the region. stuart: we thank you for joining us. we always talked about how housing prices are starting to flat line. the latest data from case schiller, natural home prices are up 10.3% year over year. we have been saying on this program the housing market has been flat lining but that is not true of home prices, mortgage origination is down, home sales down, prices are still going up, how do you explain this? >> one thing you got to do is go up more slowly. each time we get a price razor 10.3%, it is contracting from

the previous race, traders or investors look at these kinds of connections, this situation where you see continued rates but it is contracting and that is worrying people, certainly not worrying the market. we don't have a new records but it is a situation the number is contracting and that is the worry. the lack of demand, people who can afford mortgages or people who unqualified and the price is not continuing to rise, that rise is getting narrower. stuart: looked at the treasury yielding 2.5%, historically very low. part of the reason for the very low rate of interest, having to do with housing in the general economy. >> that is a big part of it. people have to think about the fact that even though rates are so low people can qualify. and making enough money, a difficult time qualifying for those loans in the first place.

stuart: thanks very much indeed. pilgrim's pride offering to buy a hillside, $6.4 billion deal. it is under the umbrella. >> so much going on in this food triangle here. i hope we will also have pinnacle foods after this as well. that is 21.5% and pilgrim's pride which is the second-largest chicken producer is offering to buy hills fire brands for $6.4 billion, you are thinking of their meat, jimmy dean sausages. they are watching that hills fire was interested in buying pinnacle food for $9.3 billion. what has happened? and their deal might be off. they move forward, that is down

6.5%. stuart: they want to get together to dominate the grocery store shelves but not short, that is how it is to me. you get a big shopping cart for that. it will allow you to control everything in your home. lights, kitchen appliances, control it all with your i phone or your ipad. polygon.com's co-founder is our tech guru, he knows about this stuff. apple, we hear reports, you pick up your iphone, you are away from home and use a dim the lights and the lights are dimmed. >> that is basically it. we have a lot of this technology working right now. you can control your computer or your keys to apple tv with i phone or ipad, this is extending that to many more devices in

your house. stuart: literally use speak. and will be pretty easy. could be voice controls, they haven't been, the reports haven't been specific on that point. it will be easy, as simple as you log into a device and hit a button. stuart: because it will be so simple and easy. and the dishwasher back home. maybe you make it easy. >> that is the idea. you want people to feel this is the norm, as easy as picking up a remote or something like that. if you don't want to get up pick up your iphone -- stuart: you would do this. >> what about privacy? stuart: it is. >> someone knows when i am running my dishwasher. stuart: go look for it, they don't care. >> what about them knowing when

you are or are not home. you guys don't care. i am concerned. >> they know. >> take on a middle. stuart: a problem for you to deal with. i need a new dishwasher. it has to be apple compatible. >> dishwashers are an extreme example. every device you have to have that bluetooth. stuart: a brand new device. >> apple compatible but bluetooth compatible, a dishwasher might be a little fancy. stuart: two companies making the running in the internet of things, the internet runs everything. >> those are the big players. >> so expensive, no one can afford to be in this space, it is not just hardware but software, they have

relationships with these companies. >> and apple account. obviously you would need security. in the dishwasher, you wouldn't want that. stuart: in five years time stuart varney and lauren will be doing this kind of thing on one of these. >> i could say you. why not? you have a ways to go. stuart: what is wrong with the iphone iv? >> it is a lovely phone. >> and that. i don't know about that. stuart: there is the sixth one coming up. best selling author thomas pickaretheyy says inequality is on a rise. he might have been wrong. that is next.

stuart: big tech names leading this rally, yelled, linkedin,

pandora and others are up, the financial times poking holes, capital and the 21st century by thomas pickerdy pushing a socialist agenda including an they found errors and e. inconsistencies in his work including unexplained spread sheet entries. cheri picking of data. cheri taking the data and transcription errors. economist peter morici has more on this. you read the financial times critique, is it a wholesale tearing it to pieces? >> there is a lot wrong with mr. pickerdy's work. he claims to know so much about capitalism. if this had been a stock report done by an analyst and people bought the shares they would be suing him for fraud. stuart: is there something wrong

with pickerdy's analysis? >> he does seem to be cherry picking. it relates to the 1920s as a terrible income inequality was wholly out of whack. that was one of the greatest periods of american opportunity. look animal harold lloyd's picture and see what a go getter was. stuart: the damage has been done. both you and i oppose what pickerdy stands for but he implanted the ideas that any quality is the issue of the day, we got to do something about it and we should do something about it. >> the fable of the mustard seed. once you throw the lie out, it appeals boat -- most of the folks who want to hear this story and one something to point to. the fact that he is being debunked is a good thing. of the one about a couple more issues. the irs to start with, they say

they will find employers 36,000 bucks for each worker each year who they drop from the health plan. this is the irs saying this. company can't give workers the cash, go spend it as you see fit on a health exchange. they can't do that anymore. it seems to be bad news for hiring in the future for big companies. >> real bad news for hiring and another example of the irs making up rules to go after people who oppose obama's agenda. as originally conceived the there was to be a penalty if you didn't sign up your employees but wasn't the $36,000 a year. they contrived the rules once again to go after anybody who opposes barack obama. they're getting more brazen over there. stuart: here's another increase in cost with a lot of people including myself did not see coming. if you use to qualify for medicaid but didn't enroll and now you enroll under obamacare the states have to pick up a big

chunk of the costs of new enrollees. california has $1.2 billion for this. i don't think people saw this extra cost to the states coming down the pike. >> it is essentially mr. obama gains politically. rob peter to pay paul, paul will vote for you. the states because people are encouraged to sign up charity, the hand outs are going to have to bear a larger burden because of medicaid breaking the backs of the states. stuart: the vote in europe and performance of obamacare is the high point of all government of the time and we are going to move away from that from here on out. tell me you agree with me. >> i hope i agree with you and i would like to see that happen. europeans are rejecting the welfare state, they recognize it has failed. european policymakers are declaring victory because it is growing again, growing from 25% unemployment, why not go to 100%?

any growth is infinite. stuart: the only way to change things is through politics and voting. am i right? >> politics and economics are inseparable. americans have to understand the old song there is no such thing as a free lunch. the guy who is handing it out is picking your pocket. stuart: you should not be such a stranger to "varney and company". you really belong on this show. >> invite me back as often as you like. i will be happy to come. >> we might just do it. peter morici, thanks for being with us. moving on to breaking news from general motors, the national highway traffic safety administration says it is likely that more than 13 people died as a result of faulty ignition switches that have been recalls. general motors of refraction, at $33 a share right now. my take on the european union, bureaucracy, and obamacare is next. capitato make it happen? that makes it real?

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trwith secure wifie for your business. it also comes with public wifi for your customers. not so with internet from the phone company.

i would email the phone company to inquire as to why they have shortchanged these customers. but that would require wifi. switch to comcast business internet and get two wifi networks included. comcast business built for business. stuart: transportation stocks

leaving this rally. moderate percentage gainers for those, most of the airline's your looking at right is there. not all tech stocks are up, amazon is down $4 at $3.08. a few minutes, absolutely take our hats off to anyone who sails around a world nonstop and alone. the guy who did it is on this show who did it is alex thompson who is here live on the set a few minutes from now. the europeans are now learning just how difficult it is to leave the european union. of bit like obamacare. once you have got it you are stuck with it. here's my take. populist party school been a lot of votes in europe's elections over the weekend. they stunned the establishment, with these parties have in common is intense dislike of the european union, the tangle of rules and regulations that pass for government these days. overs their the bureaucracy has

messed things up. people do not like it. a vast government bureaucracy now runs medical system and is not doing it very well. obamacare is expensive, disruptive, very unpopular too and just like the european union obamacare is very difficult to get rid of. populists in europe may have scored any election victory but now they're faced with an impossible task. realistically how do they repeal a system that regulates everything? you have to ask the same about obamacare? how do you knock out something that is already in place? the damage has been done. in europe bureaucracy has stifled entire continent. in america the bureaucrats couldn't even set up a reliable insurance exchange. here is bonet moral of the story. the era of big government is over, yes it is, we can get rid of it overnight or even the

foreseeable future but surely the writing is on the wall. does anyone know of rivera, or over here really believes that the answer to problems is government or government bureaucracy? very few. as europeans learned this week, this weekend, and as i think we will see in november, government doesn't work and the people know it. [ laughter ]

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stuart: president obama

>> i have attended three single races and only 11.

stuart: you will sail around the world without any help from anybody.

stuart: which is the most difficult leg. >> the oceans collide. as soon as you get south of 40, it is 40s and 50s. starting in south america.

all the way back to south america. stuart: you must be very self-contained to do that. sure you feel object terror at some point. >> there are times that you feel scared. nowhere else in the world where you could be further away from civilization and further away from help. there is no weather forecast. no care. it is too dangerous. the only people that can rescue you are the competitors. in 2006, i was pulled from a life raft. i was rescued by another. stuart: you are 40. your wife is about to have your second child. when are you going to stop doing this? [laughter] >> when you start and this, when you are young, you have big porridge. as you get older, you get more responsibility. you have kids.

your responsibilities get smaller. your experience gets bigger. there are guys in my class that are still competitive at 55 years old. stuart: i was in england, in college, i thought he started all of this. he did start -- >> he did. my guy who is still alive, the times gave a trophy to the first person to sail single-handedly around the world in a race. a number of competitors got very famous stories from it. stuart: he was the first guy to do it. >> correct. stuart: in a race.

>> i am just curious, after 80 days at rough sea, what is it like to walk on land again? >> it is pretty amazing. there were 50,000 people beard it is quite odd. everyone said extraordinary things. what is all the fuss about? stuart: where are you at your happiest? >> for now it is with my family. in a work situation, i find i can stand in my boat and travel at speeds up to 50 miles per hour while drinking a cup of tea or coffee or having a meal. they are incredible machines. stuart: you are not taking part in the new york barcelona race, are you? >> i am not in it. my wife gives birth on the night of june. i need to be there.

stuart: whose decision was it whether you take part or not take part in this race? >> it was a joint decision. stuart: you are a diplomat. did she say not on your life, alex. you are not doing it. >> in 2010, i was supposed to race around the world. my first child was born the fourth of january. i got a key of appendicitis. stuart: i think that is pretty good evidence there of. hugo boss. you are british. >> i am indeed. stuart: i thought you were australian. >> born in wales. stuart: thank you very much. taxi at uber. valued at $17 billion. technology once again. concentrating wealth. discussing it next.

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place. the fifth best opening ever on memorial day weekend. warner bros. godzilla dropped to number two. lost about two thirds of its audience in the second week. london opened in third place with 18 million. neighbors and spiderman two rounded out the top five. president obama is hosting the white house annual science fair today. also expected to announce a new help to train teachers and low income students. stay right there. the real halftime report starts next. is uber really worth $17 billion? we will tell you. ♪

stuart: it is that time for the real halftime report. the goal is at the exchange. lauren simonetti right here. michael, to you first. a little bit away from the dow 17,000. >> i am sticking by my prediction that we will get there by october 1. it is up 9% since it hit its low people want to make money in this market. they still see a lot of upside. stuart: that is a pretty long-term prediction. will it get there before then?

>> i definitely think that it is possible. i still see a choppy news driven market. the closer we get to the psychological hurdle, we will see selloffs and rally back. no later than october 1, but as soon as june 1. stuart: thank you. financials clearly leading this market at the moment. >> financials leading the rally here. it may be bringing the whole index up. they resubmitted the whole capital plan. jpmorgan of 1.1%. the group has really underperformed this year. today they are leading the way. second, utilities. that is right up there. a sector that is doing well today. utilities is more defensive. it is very strange to have financials and utilities both

doing well today. a great performance. volume has dwindled. stuart: not surprised they are. apple is trying to get into your home. you can use them and control it by remote control from your iphone beard you are famously said that apple would go there. >> i am sticking to that. i think this move makes a lot of sense for apple. they had been though gold standard for the last several years. this is a rapidly rolling market. people do not have to have wired systems in their home built in. they can use the ipad and the iphone. a lot of people working with the app store to do this. stuart: then we have uber.

worth $17 billion. it gained 5 billion over the weekend. this is an app. >> investors do not care about city bands or protests. they are thinking about the potential. the future about what can uber do. this is the beginning of something much bigger. stuart: it looks like it. michael, again. sony launching it playstation brand in china. would you buy that stock? >> not based on this move. it is not enough of a catalyst. the chinese gaming market is huge and getting bigger every year. i see a lot of upside. this is not the one palace i would do. this is a fabulous game for them. a big breakout. i would not buy today based on

the move in china. stuart: i remember 30 years ago when the walkman came out. sony was king of the hill. never had a tv repair man. it does not seem like sony can get it mojo back. i just do not feel it coming back that much. >> what is out there on the market for them right now, they are under a lot of pressure. we have been talking about verizon mobile. a lot of competition across the board. a tough place to make money. stuart: sure. that is it for today's real halftime report. risk and reward next. deirdre. deirdre: we will continue your conversation about uber. we will be talking about one of new york's best respected best

known founders. i have seen people say, well, maybe that new number was exploded by late stage investors. i will ask kevin ryan the same question. we will also talk about the technology scene in general. we will be talking about what indifferen there is this time around. all of that coming your way, stuart. stuart: it is called right to try. it gives terminally ill people the chance to try any treatment available. we have that story after this. ♪ hi, are we still on for tomorrow?

tomorrow. quick look at the weather. nice day, beautiful tomorrow. tomorrow is full of promise. we can come back tomorrrow. and we promise to keep it that way. driven to preserve the environment, csx moves a ton of freight nearly 450 miles on one gallon of fuel. what a day. can't wait til tomorrow. the numbers are impressive. over 400,000 new private sector jobs...

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♪ stuart: colorado has become the first state to give terminally ill people access to experimental drugs that are not yet approved. they are designed by the goldwater institute. we are joined by lacey right

now. welcome. you are deemed terminally ill. i can take whatever drug experimental or authorized. whatever i want. >> if a drug has passed basic fta safety tactics, phase one, we know it is safe, if you want it, you can get it. stuart: it may not have been through the full phase of trials, but it does not matter. you will give it to me. >> that is right. i am thinking like heroin. if i am in pain -- forgive me for being crass tear. i want it. [laughter] >> the heroine, you cannot get through the fda or a pharmaceutical company. it take such a long time to get these drugs to market.

over $1 billion, over a decade. the patient's, they have exhausted all options. they just want to have the right to try. stuart: could they be deemed guinea pigs? >> i don't think so. these drugs are safe. we are talking about a treatment plan that will be overseen by a doctor. it is true that we do not know all of the side effects, but there is a side effect that i can guarantee if you don't get it and that is death. stuart: this is okay and colorado. the state feds would say that this is illegal. you cannot deliver nonapproved drugs to anybody. they could sue to stop this.

>> we have a team of lawyers. i hope they do not. there are thousands of americans that need access to these drugs now. more delays for people that just want to get access to the treatment they need right now. stuart: there are 1 million people that have been deemed terminally ill right now. >> yes. 1 million people will die this year because of terminal illness. there are a lot of life saving treatment that people want to access that they are locked from getting right now. stuart: you got it passed in colorado. where else will it be voted upon? >> it has just been introduced legislatively and michigan. it will go before voters in arizona. we are getting calls off the hook. we think this will sweep the

nation. it is a mixed bag. a lot of them are kind of in a wait and see mode. he is trying to mobilize. they can get in place to provide some of these treatment. stuart: the goldwater institute. thank you. >> thank you for having me speak to your take on the entire program is next. ♪ ♪ ♪ ♪ ♪

[ 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. wherever you are with the mobile trader app but with less ergy, moodiness, i had to do something. i saw mdoctor. a blood test showed it was low testosterone, not age. we talked about axiron the onlynderarm low t treaent that can restore t vels to normal in about two weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especlly those who are or who may become pregnant, and children should avoidt where axirons applied as unexpected signs of puberty in children or changes in body hair or incased acne in women may occur. report these symptoms to your doctor. tell your doctorbout all medical conditions and medications. serious side effects coulinclude increased sk of prostate cancer, worsening prostate symptoms, decreased sperm count, ankle, feet or body swelling, enlarged or painful breasts,

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stuart: that was with the judge last hour. that was then. this is now. becky had this to say about penalties. employees trying to go to obamacare because of their employers. it is imploding and they know it. that is the administration's way of using tens politics. the only way to achieve income inequality is for no one to have anything except the ones that do not seem to count. now, here is deirdre bolton. deirdre: loved that footage from the judge. some tech investors wondering about prices.

we will ask a well-known, well-respected entrepreneur for his take on why today is nothing like 1999. hedge fund for everyone after decades of catering to the super wealthy. a growing list of funds from mainstream investors. we will tell you what is in it for you and what to watch out for. a leader in internet security law says the social blogging site does not have much of a choice. he is joining us later this hour. ♪ deirdre: we focus on technology more locally. my next guest is one of new york's well-known founders.