sandra: liz macdonald and kent, thank you. is stuart varney back today? is all yours. stuart: i am back, present and available. thanks very much. good morning, everyone. there is a stock market sell-off in progress. we will tell you why is it is happening. $2 billion to care for the kids across the border. with a lot more to come for health and education later the president goes to texas for a fund-raiser. it is a financial/deca. legal, recreational marijuana its washington state today but it is in short. here comes price gouging on day i for seattle wheat but it is game over. the entire cupcake chain shutdown. if this happens to you can use to? it is picked up on camera, made fun of by commentators, he sued for $10 million. "varney and company" is about to begin.

11:00 a.m. eastern. we have a triple digit big board lost, so much for 17 k. i go way, we get to use the 17 k graphic, come back as we are down 108 points. small-business optimism is down. that is not helping the market. dungee goes 108. is indeed 500 also on the downside to the tune of 12 points. look at the nasdaq, 40 points lower, broad sell-off across the board, a 58 point loss for the nasdaq, 58 points down, the worst one day loss since may of this year. charles payne is here, thank you very much, all that hard work getting the ratings to go up. that is great. thank you very much indeed. list -- this sell-off is the results of people's thinking the second half of the year the economy is just not going to

perform. have i got it right? charles: we have more momentum the second half of the year than we have had for a long time but the market is up huge and the jobs report is out, there is no catalyst out there. there's a lot of anxiety. there has always been anxiety, particular early with high-flying momentum stocks. the last couple session's huge. stuart: it is the bullet as we head towards -- charles: the message is you have got to find a way to justify this rally and hired goes the hard red becomes. anxiety and grow into panic. stuart: not yet. charles: not yet but the snowball can become the proverbial boulder. we are not there yet but we need some news your point, some evidence this is justified between now and the next jobs report. stuart: sitting right next to you, please put it on camera. the news is she has just been

accepted to harvard law school. no doubt at all. [applause] >> i actually do. it is lawful. stuart: let's move away from the markets, we are down 112. there is a growing public outcry because tens of thousands of young children are crossing our southern border, moving around the country by the federal government. president obama is asking for $2 billion to address what is clearly a crisis. he is heading to texas to attend fund-raisers and also going to meet governor rick perry from texas. one of his biggest critics on the border issue but it will not be a one on one. instead it is of round table discussion with community and religious leaders. we are joined by the managing editor of town hall. got to talk about the money. $2 million now from the feds,

more later for education and health care for these youngsters. who pays all of this? the federal taxpayer chips in now but the states and cities which take these children are going to have to pay for health and education later? >> absolutely. first of all i heard there will be more than $2 billion. obama will last for $5 billion upfront not just to transport these kids that given to the countries involved, honduras, el salvador. if you want to know where it is going, look what i said before. could get the money they wanted to send. this will be obama's subsidy to send money again. stuart: forgive me for delving into politics but it seems to me this has a lot to do with the hispanic vote. president obama welcoming youngsters into the country, hispanic youngsters. of the republicans object they look to be harsh, in human and anti hispanic. is there a political game being played here? >> this is all political. if you look at the june of 2012

decision when he made the announcement that was all about securing the hispanic vote for the 2012 election. he promised jorge ramos to act on univision, he broke that promise of he had to make it right with them so he has in unilaterally changing immigration law ever since because he needs to make up. stuart: you have written in town hall that the president could stop this tomorrow and end crisis virtually immediately. tell us how could he do that? >> if you look at all the reporters, the white house look that they all lame the 2008 law passed by nancy pelosi's house and signed by george bush that says any migrant coming from a country other than mexico have to be processed by the department of health and human services before they can go to immigration court and this is giving up the works, back to the countries where they come from. they still bust mexicans back.

obama says he has to follow this law but obama according to his own logic doesn't follow the law. if you look at his announcement he said i don't have to follow the law because my inherent power of president allows me enforcement discretion to enforce immigration law totally as i see fit so if obama has the authority to created out of thin air he has the authority to completely disregard the 2008 law and send them back to the country became from. stuart: will they be sent back? >> zero. maybe one or two but the vast majority 99% will stay. they may not all get official asylum. however, once they are brought into this country they are most often released out of families or other people that will take them. once that happens they will never show up in court because it is not just -- obama since he came into office has been

issuing a series of menus that the prioritizes anyone who is not a criminal. if you come to the country and are released to families or relatives in the country they will never show up in court again but will stay and wait around for the next amnesty. stuart: i just got some breaking news as we speak. the president is going to ask for a $3.7 billion. >> more than 2. stuart: thanks for joining us. we do appreciate it. $3.7 billion will not be popular. am i right in saying there is going to be opposition to what is going on at the border from a right and left. >> the president's solution is to talk more money. not enough money can solve this problem. is not about money, you is border enforcement. sending these children back, people went to july 8th emergency request because he was

pressured by activists, the american people suffer because is activist base want him to throw money at the problem. stuart: back to the market real fast for a second, we are down 113 points, the dow holding at 16,900. this is not panic but it is a nasty sharp downside move. crumbs, you know them, abruptly closed up shop totally. notified employees closing all of its stores at the end of the business day. they are gone, finish, this is a week after the company was delisted from nasdaq. tell me what happened. charles: i will make this a case study. and didn't finish going through the annual reports but this is an example of a company that was myopic, they had one business model, cupcake business, huge ridge crowded, easy to get into. it was fun, exhilarating and also over expanded. there are 48 states.

was an ambitious project. stuart: 48 stores in ten states. charles: the point is they spent a lot of money, a great looking score, it was in the deal where there was a glut and they simply a group too fast and by the way we saw earlier this year family dollar stores started getting hit, what is wrong with dollar stores? same thing. over expansion. stuart: i know you were up fan of crumbs and you pay $350 for each cupcake, to $4.50 for each cup cake? >> a pricey cupcake and if you bought a box with multiple class in it, it was $20 for the box so it wasn't a cheap place to go. certainly gained in popularity, over ten years old, went public in 2011. i was a huge fan, and that picture that was taken some time

ago. you do see the picture of the sign here, the stock exchange, bringing great sadness that it is officially closed down. to no avail, i was sad about that but more importantly the shareholders got hit on this one. we are down below $0.30, down a few cents and on the nasdaq, not a pretty picture. data stake, we will see what happens in the future. stuart: you never see a sudden total collapse like that one. >> i am pretty bummed about it. stuart: harvard accepted for law school student would not pay $3.50 for cupcake. >> i did two weeks ago.

charles: not before she went to school but after graduation she might afford it. ladies and gentlemen, we have a winner today, it is a down market but we got a winner. i am told reliably in my ear that was a winner, it did get an upgrade, turned $0.01 war, not much of a loss. tesla is being sued in china for trademark infringement. the person doing the suing says you can't market anymore and can't sell any more. that is not going down too well. not a big loss, 216. check the price of gold, we are solidly above $1,300 amount, oil flat, down $100 per barrel. as we say, i am saying it now, 30 seconds, here we go with the other stories for you. another african zookeeper,

hugging lions, he has left, fed and lived next to these animals since they were cubs. go pro golf, the video. california, long beach and los angeles, this time the truck drivers, they say the pork operators block them from unionizing and they don't get paid enough. they are on strike. less for seattle, a business group getting enough to put repeals of the $15 minimum wage up to voters. it end up on the ballot in november. there you have it. walmart's chief, america may be adding jobs but that doesn't mean people spending. details on that after the break but first check this out, derailed by a tree branch, at six flags in california. the branch contracts. don't know how i'd happened but it fell. the first car rammed into it, derails, people stranded for hours waiting for rescue, four people injured.

now you know. >> we heard yelling. >> what were people yelling? >> panicking, didn't know what to do. [ male announcer ] hands were made for playing.

legs, for crossing. feet...splashing. better things than the joint pain and swelling of moderate to severe rheumatoid arthritis. if you're trying to ma, now may be time to ask about xeljanz. xeljz (tofacitinib) is a small pill, not an injection or infusion, for adults with moderate to severe ra for whom methotrexate did not work well. xeljanz can lower your ability to fight infections, including tuberculosis. seris, sometimes fatal infections and cancers have happened in patients taking xeljanz. don't start xeljanz if you have any infection, unless ok with your doctor. tears in the stomach or intestines, low bod cell counts and higher liver tes and cholesterol levels have happened. your doctor should perform blood tts before you start and while taking xeljanz, and roinely check certain liver tests.

tell your doctor if you have been to a region where certain fungal infections are common, and if you have had tb, hepatitis b oc, or are prone to infections. tell your doctor about all the medicines you take, and if you are pregnant, or plan to be. taken twice daily, xeljanz can reduce the joint pain and swelling of moderate to severe ra, even without methotrexate. ask if xeljanz is right for you.

stuart: the triple digit loss for the big board. some pessimism from small business helping the market go down 116, 69. look at the biggest percentage losers on the dow, boeing, goldman, an ex, nike, down significantly. text box getting hit, disappointing small-business data may have a lot to do with it. -amazon go down 11 points, yahoo! down 3 down $15. charles: it is a tough one, 661,000 vs 779,000 year ago. that is a gigantic change. all these moves to higher increased minimum wage, all that is going to backfire, it will get worse, not better.

no one is going to pay a teenager with no job experience $15 an hour. there will be fewer jobs. it is not. the one thing this economy has proven, the more we stay out of the way the better it will do. we are doing well despite the taxes, despite the regulations but we could be doing great. stuart: people of my generation are doing okay. we are taking these jobs. it is the kids that are getting pushed out. >> an excellent point. business insider said this would be a national emergency of these folks were above 19 years old but because they're younger this is going unnoticed. in 2000, 45% of teenagers were unemployed compared to now which is 20%. this is a national emergency for young people that no one notices. stuart: we almost cut in half the number of teenagers working in the summer from 2000 to 2014. almost cut it in half.

that is a social trend i think is terrible. flat out terrible. charles: you make a great point. older americans are taking those jobs. you work here but thursday the jobs report, big decline and be long term, laudable people came to the realization they got to go back to work. it won't be the high salaries but low-paying salaried jobs that may have gone to these teenagers. stuart: walmart's u.s. chief says improving jobs market, it is not helping sales at wal-mart or anyplace else. people are not spending money. joining us is stephen moore, chief economist. >> i have a solution to the problem you were talking about. why don't we have a national policy that has a $5 or $6 an hour minimum wage for teenagers. that will put hundreds of thousands of young people back

to work and get them of computer games. why not have a minimum wage lower for young people. charles: and amazing idea. i love it. stuart: it will never happen. i will tell you why. president obama thinks he gets the youth vote by saying pay them more and maybe for give some -- >> what good is it if the minimum wage is $12 an hour if you can't get a job? stuart: that is not sinking in. you are shaking your head. young people are saying he is trying to help us, and i will vote for him. >> you guys are hitting liberalism is a once the thought process, raise the wage and we all have jobs, conservatism is a two step thought process, raise the minimum wage and eliminate jobs, young people not getting this, they are not being taught in schools and it is a shame. stuart: kelly got accepted to harvard law. that explains why she is taking

over. >> there is hope after all. stuart: don't go back to the jobs report i want you to comment about the state of the labour market. seems to me we are creating some new jobs that they are badly paid jobs. is that accurate? >> jobs up, wages flat and if you look at the report closely and for over the report friday, wages over the last year up 2%, anyone been in the grocery store or the gas pump for a medical bill will be? those costs are up more than 2%, 5% or 6%, wages for americans in real terms are continuing to fall and that explains why stores like wal-mart are not seeing of the big surge in purchases they hoped for because people are stretched in terms of their paycheck and that is especially true when you look at the fact that as you were talking about, all of the new jobs, we actually lost full time

jobs. we lost full time jobs in the last of the report. stuart: that means you won't get robust growth of the second half of this year. you are just not going to get even 3% in the second half. >> i hope so, we have to because we lost 3% in the first quarter. 3% isn't even a very high bar to clear. we need 5% growth to get back to 2.5% growth. what we have never seen, you can get agitated about this, we have never seen a big burst out of growth in this recovery. we are stuck in this wreck of 2% growth when we could be doing so much better. stuart: supposing there was a sweep in november. republicans increase their majority in the house and take the senate and they come up with a plan, we're going to cut individual tax rates, cut corporate tax rates, this is what we are going to do.

will we then get some growth? >> let's look at the corporate tax rate cut? we have seen in the last month or so at least three or four major iconic american companies moving out of the united states to places like ireland, singapore, taiwan, indonesia because of taxes. why can't these politicians figure this out? i put it on foxnews.com it is unpatriotic to support a 35% corporate tax rate. we are shipping jobs overseas. stuart: that is what we have got. thanks very much for joining us. we will see you again next week, i trust. i am back from vacation. you know what that means. we shall resume our world cup coverage but don't worry, do not turn off your sets. it will be brief. i will answer questions about my vacation. that is next.

really... so our business can be on at&t's network for $175 dollars a month? yup. all five of you for $175. our clients need a lot of attention. there's unlimited talk and text. we're working deals all day. you get 10 gigabytes of data to share. what about expansion potential? add a line anytime for 15 bucks a month. low dues... great terms... let's close. introducing at&t mobile share value plans... ...with our best-ever pricing for business. it's one of the fastest growing crimes in america. in fact, there's a new victim of identity theft every...three...seconds. so you have to ask yourself, am i next? one weak password could be all it takes. or trusting someone you shouldn't. over 100 million consumers had their personal information stolen in recent retail store and online security breaches.

you think simply checking last month's credit score can stop identity thieves now? that alone just isn't enough. but lifelock offers the most comprehensive identity theft protection available. as soon as the patented lifelock identity alert system detects a threat, you'll be notified by text, phone or email. ♪ your response helps stop thieves before they do damage to your identity... helping to keep you safe... with three powerful layers of protection. detecting threats to your finances, credit, and good name 24/7. alerting you to potential danger. and if anything is found, your resolution expert will help restore your identity. so you can get back to enjoying your life. ♪ lifelock watches out for you in ways banks and credit card companies alone just can't. plus, it's backed by a $1 million service guarantee. if your identity is ever compromised, lifelock will spend up to $1 million on experts to help restore it. try lifelock membership risk free for 60 days

with promo code easy. that's 2 months of proactive protection to help keep your identity safe, risk free. act now and get this multi-device charger. charge all your devices at once to save you time... a $30 value, free! call the number on your screen or go to lifelock.com/easy. try the most comprehensive identity theft protection available risk free for 60 days plus get a $30 multi-device charger, free. enrollment takes just minutes. your protection starts immediately. call the number on your screen or go to lifelock.com/easy. ♪

the two obama is about to pull a big fast one. we will be heading to texas tomorrow. i will have more on this in the next half-hour. the president will ask the money to take care of that youngsters crossing the border.

charles that in the last couple of days. here is what some of you wanted to know. charles: i am sorry. [laughter] stuart: very funny. very funny. yes, i did fire up the tractor. i wore my work boots as osha demands. soccer in the u.s. now that the u.s. men's national team has been eliminated from the world cup. how many of them actually plan to watch this afternoons big semi finals game? only two of them raised their hands. i have one more world cup story to bring you. it is about the biter.

suarez. a five-year deal has already been agreed to between the teams. that concludes our world cup coverage for today. recreational pot. marijuana. it goes on sale in washington state today. it does not mean that everyone will get stoned. there is already a shortage. ♪ friday night, buddy.

you are gonna need a wingman. and my cash back keeps the party going. but my airline miles take it worldwide. [ male announcer ] it shouldn't be this hard. with creditcards.com, it's easy to search hundreds of cards and apply online. creditcards.com. you see a sharp selloff in stocks today. social media stocks in particular, i would say. 7%, 8% down. interesting headlines from the "new york times."

today's teenagers may grow up to be conservatives. you brought us this story. i am not ready yet. >> that is exactly what the headlines say. 1988 are the youngest that will be able to vote in a presidential election. the economy crashing, the war in iraq crashing. teenagers will lee more bright. stuart: it occurs to me -- the issue of taxation. and the issue of economic growth. why would they become conservatives? that still escapes me at.

>> younger millennial's, were claimed by a bad obama presidency. they said young people would always vote democratic. stuart: any comments, charles? charles: my kid is 17 and right now he is a conservative. they saw him selling it one day. that kind of sealed the deal from him. >> that is right. varney & company. stuart: thank you very much for

watching. thank you very much, indeed. let's get to recreational marijuana. making it the second state behind colorado. we are joined by derek peterson. welcome back to the show. what is this i hear about a shortage of lead? >> it is a similar situation. the problem was they did not have enough supply to meet the plan.

the population seems to be medical marijuana population -based. you are looking at over 65% of adults utilizing alcohol. we are still trying to wrap our arms around it. they will grow into it. no pun intended. stuart: you make growing equipment. we got that. you are talking up your own boat. demand may be a great deal higher for legal need. we had supposed. >> yes. i think we see that. people constantly say that this is in emerging market. the differences it existed in a black market. today it is moving into a more transparent market. i think there is a significant amount of demand.

they reflected over 20 million in taxes this year. stuart: the weed will go on sale today in washington state. when you guys get fired up, surely that price will come down, won't it? >> we have seen some. they have really stabilized around this point. i have heard that for the last four or five years. seven-$9000 a pound in certain areas. stuart: you make growing

equipment. the equipment to grow cannabis weed. which states are you looking to next to legalize recreational marijuana? i assume you are recognizing on the next state to make that step. >> quark county, nevada. we think that the recreational program will take off there probably in a couple of years. my hope is to allow the medical program to mature therefore a little while. the industry has a chance to build its infrastructure and things like that. stuart: if a marijuana producer was to use your equipment, how many pounds or ounces of weed good one plant produced in one

growing season, however long that is? >> that is a good question. it really depends on how big you growth of plant. how many pounds perlite are you getting. a good girl or we'll shoot for a pound or a pound and a half of production. stuart: is that per year? >> per cycle. you can get multiple cycles per year. stuart: if all goes well, it is a highly productive operation. >> that is right. the taxes are significant. for right now, the margins across the country are very attractive. stuart: fascinating stuff. thank you for joining us. this is either a developed market or a developing market. we want to hear about it.

check out this guy, please. espn puts the camera on him. the results of that, a $10 million lawsuit. the judge is next on this subject. ♪

♪ charles: a quick business briefs. as the market shifts, making money with charles, i am thinking the perfect place if you want to get some sleep that night, oracle -- whirlpool. price to cell is half. whirlpool, kitchenaid, amanda. overseas, they have names. middle east and africa. huge growth potential. by the way, in america, the man from 2005-2012 is gaining momentum. ♪.

stuart: airlines. they are getting hit today. nicole: that is right. recently because, at least in part, traffic numbers. we saw a rise. we have been seeing these airlines to the downside. oil is lower at 103-point re- five. united console mental is down 1.5%. delta has been the big drag of

the bunch. and interesting blog about morgan stanley looking closely at united continental. most of those guys, two thirds of the guys there voted that united continental would be the better of the two. down arrows across the board. stuart: okay. my flight was delayed last thursday. nicole: what plane did you fly on? stuart: i am not going to do that. we did not take off until 2:00 o'clock the following morning. standing up outside waiting like a cow to get on a plane. i am not complaining.

that was earlier, judge. shall we get to the most talked about story of the day. new york yankee fan. he is suing the yankees. he is suing major league baseball. he is suing to major-league announcers. here is a clip. >> how comfortable is about. probably will not have any back problems tomorrow. stuart: on social networks, they really made fun of the guys.

>> what are you doing commenting on a case like this? >> this is an utterly driverless litigation. a stadium with a nationally televised game. i am not sure where it was filed. expose themselves to being obliged to pay the legal bills of the yankees for resisting this litigation. stuart: he could -- >> in america, it is a modified rule. whatever was he went to and actually filed the lawsuit, they themselves, personally, or their law firm, could be impressed

with the yankees those of their lawyers for resisting them. stuart: it he make the case he did not want to go to sleep. he did not want to be on tv. he was on tv. national television. >> it looked ridiculous. it was newsworthy because it was funny. greater principles and everything. if you put me on television and socks riding a tractor in the audience makes fun of me, i cannot sue you. if i do sue you, i could be

liable for your legal costs because i am inevitably going to lose. >> with respect to you, it would be different. you are a public figure. stuart: don't i have a right not to be made fun of? >> no. stuart: it was a lovely subject for a constitutional scholar like you. will you come back again tomorrow? [laughter] stuart: obama uses social media to push his cases.

does the president even know what he is putting out on twitter and facebook? we will discuss it after the break. ♪ when the world moves, futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with paper money to test-drive the market. all on thinkorswim from td ameritrade.

i've got a nice long life ahead. big plans. so when i found out medicare doesn't pay all my medical expenses, i looked at my options.

then i got a medicare supplement insurance plan. [ male announcer ] if you're eligible for medicare, you may know it only covers about 80% of your part b medical expenses. the rest is up to you. call now and find out about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans, it helps pick up some of what medicare doesn't pay. and could save you in out-of-pocket medical costs. to me, relationships matter. i've been with my doctor for 12 years. now i know i'll be able to stick with him. [ male announcer ] with these types of plans, you'll be able to visit any doctor or hospital that accepts medicare patients. plus, there are no networks, and virtually no referrals needed. so don't wait. call now and request this free decision guide to help you better understand medicare... and which aarp medicare supplement plan

might be best for you. there's a wide range to choose from. we love to travel -- and there's so much more to see. so we found a plan that can travel with us. anywhere in the country. [ male announcer ] join the millions of people who have already enrolled in the only medicare supplement insurance plans endorsed by aarp, an organization serving the needs of people 50 and over for generations. remember, all medicare supplement insurance plans help cover what medicare doesn't pay. and could save you in out-of-pocket medical costs. call now to request your free decision guide. and learn more about the kinds of plans that will be here for you now -- and down the road. i have a lifetime of experience. so i know how important that is. stuart: breaking news.

the rnc chooses cleveland. cleveland ohio. not to dallas, texas. president obama's official twitter account. decided to use the throwback thursday trend to block the supreme court's decision on hobby lobby. throwback when a woman, not her boss, made her own decision about healthcare. >> the twitter handle is being maintained by the osa. a political organization that was the offshoot of the campaign. it has maintained independent of the white house. stuart: explanations to who exactly wrote that on the twitter account.

charles: it is a preview of things to come. it will be the official president obama twitter account. stuart: it is ridiculous. charles: for him, it was all about power. stuart: you are maybe going to harvard. you have been accepted by harvard. >> it is a fantastic move. texas is a red state. i hate to not see it in florida like last time. stuart: president president obama will choose to back

elizabeth warren and 2016, not hillary clinton. the second hour starts with a big bang into minutes. ♪

stuart: could it be? times are really changing. though border. immigration. the bond policy. every issue. right now we have a market selloff. welcome to our second hour. ♪ headlines for you right now. president obama will support elizabeth warren for the white house, not hillary clinton.

can you believe this? the u.s. is about to pass. it looks like we already have open borders. kmele foster says that is okay. that is a huge retreat from 17,000 which we hit last week. the dow is down triple digits. small-town optimism down. also, projections for the economy in the second half of the year, not good. here are the biggest losers on the dow. down percentages. we start talking percentages, you know you have a selloff. down 15 points.

we were down nearly 60 points earlier. now we are down 73. one and a half percent. the big tech names are getting hit. you know all of these names. now they are down. netflix dropping nearly $20. barely budgeting today. the yield on the 10 year treasury may be for the second half of the year moving sharply lower. that yield is way down. social media stocks, they are down big, too. nicole: you see big selling going on. twitter down 7%. a group of social media.

with that, you see the selling in this group. that is why this is happening. thanks to mark newton. this moment telling me exactly why we are seeing this. we will leave that up. that is down over 9%. stuart: you know it is a very significant fall. not just for the overall. yelp is down eight / 9%. that is a drop and a half. stuart: got that. thank you very much indeed. down 130 points. the small business optimism.

the national association of small business groups. they have a drop-in optimism. they are looking for the drop in sales in the future. is it important for the second half of the economy this year? >> for me, i am more interested in why this is happening. when you get new job creation, new jobs are being created, why are people spending more? why are people consuming? guess what, part-time jobs are usually 2% of more jobs being created. right now, they are 14%. those people who have those part-time jobs, i do not know that those people will be willing to go out and say that with added leverage. consumers do have to pay their

leverage back. consumers will take that into account. what is the likelihood that i will go out and do some leverage finance consumption? i say that that is a bit part of this. stuart: the interest rate barometer has moved down so much today. >> i think that the whole universe is short the 10 year period i will stick with the camp that says bonds actually rally from this point. i think the slightest hiccup in any sort of numbers will bring the fed back. we have a dinner that in new york. when janet yellen leaves office, q we will be higher than when she started. stuart: all right. [laughter]

>> i do not think that she will have that job a full six years. stuart: okay. there is a prediction. thank you very much, indeed. that is the market. let's move to politics. ed klein is here. he says the president has quietly promised to back senator elizabeth warren and 2016 if she chooses to run for president. he is not going to back hillary clinton. his book "blood feud." he is here right now. he quietly says i will back elizabeth ward if she chooses to run. >> it is a huge deal. the clinton people are now attacking elizabeth warren because of this fact. her economic policies would be a

disaster. the last thing the world would want to see is elizabeth boren challenging hillary in 2016. stuart: you are the one that came up with this. that is why hillary clinton's inner circle is calling you despicable. >> i think it was longfellow who coined the phrase. they have gone crazy. the clintons have gone crazy because my book has not hillary's book off the top of the "new york times" best seller list. they believe that. they are calling you despicable. they believe it is accurate. >> of course they believe that. these attacks come from

anonymous sources. the ultimate hypocrisy. stuart: well, okay. the blood feud. the clintons versus the obama's. this falls right into that. >> absolutely. of course he will not support hillary for the presidency. he will support elizabeth warren. >> distancing herself on many different policy issues from obama's which is driving that obama's crazy. they want their legacy to continue when they leave the white house. they are afraid hillary will undo a lot of their policies. i will not say extreme left-wing policies, but he is out there from the left. there has to be a reaction against that. therefore in favor of hillary. they are out on the left as the

president is. >> exactly. positioning themselves as more moderate. the economy really is not helping the middle class people. obama is saying that it is. she is saying that obamacare needs to be fixed because it is a flawed law. she says it is a great law. stuart: helping hillary get the nomination. >> that certainly is not my intention. if she gets the nomination and she gets into the white house, giving her bill clinton in the white house with her and she is not able to really carry out her duties, guess who will be calling the shots in the white house. our friend bill clinton.

stuart: you have to come back with more on this. breaking news on the immigration front. here it is. president obama will ask for $3.7 million. rich edson is here with more details. 3.7 billion announced not too long ago. what is that money for? rich: immigrations and customs enforcement. homeland security gets $433 million to pay for operational costs. much of it could go to higher immigration. the department of health and human services taking the largest chunk. providing appropriate care for unaccompanied children. it is congress that fills in the

details. he wants money for the national guard to provide humanitarian support and effective areas. stuart: thank you very much. rich edson and washington. >> thank you very much for having me here. stuart: good for the president. good for the country. you surely cannot approve of this almost open border that we have. we now have to take care. >> the mess on the border is almost certainly a reflection. we have not taken stock of the way we deal with it.

stuart: the failure to close the border. >> when we have people who are desperate to come to the united states to try and find work and will we make it difficult for them to do that, you end up with a disaster that we have with these kids. quite a significant impact. the streets are dangerous. the united states helps anti-drug policies which strengthens the cartels south of our border. to policies that are helping. stuart: if we change both of those policies, you still would have a huge crisis on your hands what would you do right now? >> i think you can fix the drug war pretty easily.

it is the first thing you can do to help stabilize. you can allow process of normalization. when you look at the problem of immigration -- stuart: take a look -- >> i am not talking about giving them anything. people that come here for work. they cannot buy insurance. they cannot get a drivers license. when they have an accident, the liability increases. stuart: we will accept and legalize the people already here. >> we have actually seen places like mexico. we have not seen more immigration in recent years. these people are not stupid. they see opportunity.

people are fleeing a dangerous situation. it is a reflection of failed policy. we will end up spending more time and resources to try to deal with all of the overflow effects of bad policy. stuart: we will watch you tonight. google's chief, larry page. he thinks it will not be so bad. it is unnecessary. we discussed that after this. ♪

stuart: this is a significant selloff. look at go pro, for example. it is down nearly 5% today. i have another winner for you.

apparently, the market agrees. it will not get their get. the dow is down 140. look at google. look at this. it's cofounders, they say humans spent too much time doing menial jobs and robots will help lighten the load. we will get more free time with our families if we use these robots. liz: the billionaire guys running google think you should stop worrying about your full-time job. either eliminate bubble land where they are putting more topspin on what they are intending to do. they are saying people should not have to work so frantically for happiness.

for security for their kids. that is not tomorrow land for them. tomorrow land is you will have robots. 45% of people's jobs will be replaced by robots. that is not good. stuart: computers and smart phones. i am working harder than ever. >> that is a good point. we are talking about robots replacing workers. tens of millions of people underemployed are unemployed in this country. stuart: we have a report on a critical security flaws. i am only hearing about this

story. critical problems with the health insurance exchange in new mexico. >> there is a federal audit that has been hit. i and critical risks. they will not say exactly what they are. we know it is a serious problem. they are working very hard to fix it. stuart: i want healthcare insurance. they have my information. your report says that information is at vertical risk. is that it? >> i think that that is the implication. while people have enrolled about 600 of them, they are not yet doing the individual marketplace.

stuart: we were not told. now we find -- what was the express and? >> a high and critical. >> when you sign up, health condition, finances, taxes, just about everything an identity thief would need. healthcare related identity theft. that is on the rise more than any other form. i think you got both the incentive and the weakness.

stuart: thank you for coming on the show. we appreciate it. the bbc. british broadcasting corporation. rigging the climate change debate. you will get my take on that in just a moment. ♪

my mother made the best toffee in the world. it's delicious. so now we've turned her toffee into a business. my goal was to take an idea and make it happen.

i'm janet long and i formed my toffee company through legalzoom. i never really thought i would make money doing what i love. we created legalzoom to help people start their business and launch their dreams. go to legalzoom.com today and make your business dream a reality. at legalzoom.com we put the law on your side. really... so our business can be on at&t's network for $175 dollars a month? yup. all five of you for $175. our clients need a lot of attention. there's unlimited talk and text. we're working deals all day. you get 10 gigabytes of data to share. what about expansion potential? add a line anytime for 15 bucks a month. low dues... great terms... let's close. introducing at&t mobile share value plans... ...with our best-ever pricing for business.

sunny or bubbly? cozy or cool? "meow" or "woof"? wheels or wheeeels? everything exactly the way you want it ... until boom, it's bedtime. your mattress isn't bliss: it's a battleground of thwarted desire. enter the sleep number bed. right now, you can save $400 on the all-new c4 mattress set. he's the softy: his sleep number setting is 35. you're the rock: your setting is 60. that works. he's the night owl. his side's up while you're in dreamland. you're the early bird. up and at 'em. no problem, because you're in it together... keeping the love alive. and by the way - snoring?

sleep number's even got an adjustment for that. crazy? only if sleeping peacefully with your soulmate is crazy. you can only find sleep number at a sleep number store. head in for the final days of the lowest prices of the season sale. you'll find the all-new c4 mattress at just $1499.98. ends sunday! know better sleep with sleep number. stuart: the bbc will restrict the airtime given to climate change skeptics. gold standard of broadcasting. it is rigging a climate change debate. here is my take. first, note the language. climate change deniers that are being targeted. that is a nasty word, isn't it. the elaborately used to smear climate change skeptics.

second, the bbc is now clearly involving itself in censorship. only 3% of scientists are deniers. their views should only receive the equivalent amount of airtime. since when has a phony, statistical analysis is used to slam the debate? if you point out that the earth has not worn at all in the last 17 years, are you a denier? if you point out that for a billion years, the claimant has always been changing, does that keep you out of the debate? are you still a denier? who are these deniers? if you do not toe the party line, you are out of the debate.

the people who so passionately believe the earth is doomed. they stock the pipeline. they put a hold on fracking. they kill the coal industry. we have to pay. i am a skeptic. i do not want to see our entire economic future play into the hands of extremists. we must not stifle the debate. we must encourage a free and open discussion. do not solve a problem if you can't discuss it. ♪

one we got one of those 4 studies that find a correlation between time spent on facebook and divorce rates. lauren simonetti is here with more. >> not too surprising but a recent study finds for 20% increase in a safe population with people on facebook there is also a 2.2% increase in divorce rate. it says this is not a causation, facebook does not need to divorce but there's a correlation because your ex-boyfriend and girlfriend are only a click away. there's a lot of temptation. facebook makes it easier to hook up with people and snoop on

people. if you are spending time on the computer you are not spending time with your significant other. stuart: is not causation, not like you are in a divorce situation because of what appeared on facebook. >> they cannot prove that. sometimes you get divorced, and try to meet somebody else. there is a correlation. stuart: it is logical. there is a divorce situation, then it appears on facebook. is perfectly logical. it is correlation. not causation. liz: i don't see what is wrong? people are in relation to this tend to snoop more on facebook on what their partners are doing more you have accesses hooking up on your face book page and as one of your crew makers said,

find entire families espouses they didn't know their partners were involved with. that could cause divorce. stuart: on the basis of this report would you buy facebook stock? liz: personal yes. >> sure. >> if you put personal stuff on facebook i have issue with you. it is all out there and if you are going through a divorce they confined stuff about your finances etc. so just stay off with the personal stuff. stuart: the point of face book is put personal face -- >> post your friend's baby pictures. i'm not really on it. stuart: that is not personal stuff? >> it won't get you into trouble if they are legitimate children. don't know of any other direction we could go. stuart: stock is down 4%. check the big board. we are down 133 points.

that is a sell-off, way below 17,000. i was on vacation last week when we hit 17 k so i was not one who was able to use the 17 k graphic. >> we disappointing? stuart: very disappointed. i wanted to be 17 k before anyone left. i will not drop below it when i come back. back in america as the u.s. will remain a world's biggest oil producer after overtaking saudi arabia and russia. here is erskine bowles, senior energy reporter with the wall street journal and author of boom, drill baby drill all the way. here we go. when will america surpass saudi arabia as the world's leading oil producer? >> if a current case probably in the next couple years, 2015 before 2020. the real question is is it going to be allowed to do it? enough places left to drill?

will be backlash against drilling in so many communities get stronger? stuart: when you got to tell us about this. if they are that strong a backlash against drilling like in north dakota for example. is there? >> not so much in north dakota. even there we see some push back and areas placed off-limits. in places like colorado and pennsylvania, lots of -- not so much taxes or notes dakota where most of the oil is coming from but we are seeing a lot stronger anti fracking sentiment and communities getting organized. even in my home state of texas we are seeing it in north texas and west texas. stuart: what about new york state? i have property in upstate new york, not allowed to fracking or drilling up there. you are shaking your head. you don't think new york state will allow fracking? >> we just had an appellate court decision oil week ago in new york state which basically said communities are more powerful than the state, if communities want to ban fracking

that is okay so new york joins pennsylvania sunday yorkers are on a double whammy, you have a state moratorium and community disability to ban fracking. i don't see fracking in new york state anytime soon. stuart: suppose, just speculate get out, fracking, oil and shale, go get it, don't care which state where it is, if we did that how many barrels could be produced? >> i don't think so. probably 10 million barrels a day would be the limit because that a certain point you are going to run against cost issue. you need to hire more people, and pressure pumping equipment. there are natural limits. or gulf of mexico where you can put a single straw and get them to 50,000 barrels out, these are labor-intensive wells we need to

draw a lot of them and cost pressures and why you have so much community push back, you got to drill well after well. stuart: a quick question about tom's tire the billionaire environmentalist's to pledge 1 and the million-dollar screen energy but it turns out he bets big on coal. you got the story, here is this guy giving $100 million to the climate change cause and yet he is still making money out of coal. what is going on with this? >> his term he ran for years and years on capital management made a large investment in capital asia, these are projects which began when he was associated with the fund, they came into being and get 30 years. a lot of people say the united states and europe doesn't matter for climate change and carbon dioxide emissions. the real question is asia and

his firm certainly stands -- we have not seen this for the first time. we have seen a number of oil fortune or fossil fuel fortunes turn around with a few charitable trusts coming from the sun oil fortune. and many remaining members of the rockefeller family from the few years ago go to exxon to take the issue of climate change more seriously. and of the road to damascus, try to move away from it. stuart: i saw the light i changed my mind? >> he has about. among the go on his blog he called it -- use the phrase the pall on the road to damascus, he has seen more information about the devastating impact of climate change and he became convinced. stuart: russell bold, wall street journal energy guy, thanks for joining us.

forget dow 17 k, market sell-off today. how much lower could it go? we will speculate about that in a moment.

>> a sign of the times? according to a new survey more americans are going without land mines. the survey reveals four of ten u.s. homes only use cellphones now. the survey finds men are more likely to drop their land line than women. seven years after the final harry potter book was released j k routing has published a new short story about harry potter's life as an adult. isn't an article available on the game website potter war. apple just lost one of its the iphone software engineers. of 14-year-old apple veteran is leaving apple to work for uber. one of the first engine used to work on the iphone software in the last six years. he worked on apple's map apps. no word on when bloominburg starts at aereo to. the dow 17,000. the real halftime report next. . the dow 17,000. the real halftime report next. ♪

the shell brought him great fame. ♪ but then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their trading platform. ♪ so the magic shell went back to being a...shell. get live squawks right in your trading platform with thinkorswim from td ameritrade.

stuart: the real halftime report. nicole petallides at the exchange. michael robinson in san francisco, liz macdonald right here. the dow can't be the whole 17 k, disappointing report about optimism and small business we got this morning? >> i don't think so. we talk about this two four weeks ago the dow would break through 17 and i thought we would see a pullback and that is what is happening. people need to keep looking at the long view.

economy is pretty healthy. we have the best five month stretch of jobs in six years, home sales are still strong, auto sales are running at 16.5 million units by year. i am not worried. it will be a short-term. stuart: that is interesting. is a blip, a short-term sell-off, say in there. that is what michael robinson says. >> to not panic, do not sell, write it out. stuart: the dow is well below 17,000. tell me who were the biggest losers today? >> looking at goldman sachs, boeing, visa, they account for $0.40 on the downside on the dow jones industrial average and nike, american express as losers as well, goldman sachs 24 negative dow points, 2.2%. just a few names trying to sweep out the green such as computer -- consumer tech related games like walmart, trying to pick up

the games but the overall market is down today and the down volume is outpacing the up volume. it is one of those riffs on the vix that are higher today. stuart: how about technology losers? some big names are weighed down. liz: amazon, yahoo! netflix, talking about stocks, very rich multiples, lots of rainbow and sunshine and evaluations in the stock still looks like the techron tree going on, investors taking money off the table in these richly valued stocks. stuart: walmart, as the u.s. ceo says the job market is improving but that is not helping wal-mart sales. sounds like we are creating jobs but too many are low paying and that is stopping people spending. is that how it is? >> definitely for walmart. they have too much of their customer base in low income when it is 20% of the people on some

form of government assistance. this company is quietly moving into the ecommerce realm where it has been weekly two years ago they hire new ecommerce head from cbs interactive, they're going to spend $500 million on the commerce initiatives and probably close to a hundred thousand people in silicon valley. walmart has got to get out of its dependence on superstores which are falling out of favor, smaller better located stores, and and the ecommerce efforts. they're starting to do now. stuart: the market likes it because stock is up. >> i haven't seen today, yesterday, decliners led advances 3-1. don't know what the stats are today, and a bad day for the market overall, walmart doing well. stuart: my producer says olive garden is an assault on his italian heritage. i don't know where this popped up from. is the stock down or something?

liz: stock is trending. they are long overdue for a makeover. they are finally doing a makeover. i like olive garden. and irish cook books, as thin as the garden restaurant menu. i like olive garden and your producer is always making fun of me. >> olive garden make 60% of sales, that is an amazing step olive garden is 60% of restaurants. stuart: it has exploded. >> i like the solid bar. do you go to olive garden for your big ziti? probably not. it does the trick. >> $40 million. stuart: we have covered all of garden. bad news for samsung. they forecast a big drop in

profits for the next quarter. is this the apple effect? >> part of it is. excellent point. the third straight quarter and what worries me as an investor, samsung's operating profits, not something to look at. this is a company that is the world leader in market share in terms of smart phones but it felt two percentage points in the first quarter. at apple. people have been criticizing it is too dependent on the i phone when it is making money hand over fist on the i phone in a way that nobody else can. samsung has a slight market-share advantage but it is not translating into cash flow and importantly operating profits. stuart: all right, thank you very much for being part of the real halftime report. we will see you again very soon. and number for everyone, $130,000 according to one source, that is how much the american dream will cost you

every year. the full report on those numbers after this.

lou: oklahoma congressman refused entry into a military base in his own district, one that houses hundreds of illegal

immigrant children. congressman jim wrightin joins us, stay with us. stuart: the cost of achieving the american dream is going up. loren has details for us. how much? >> $130,000 a year in annual income. stuart: you could achieve the american dream. >> what is the american dream? logical question? two kids, white bigots fence, the ability to save for retirement, pay for your kids at education and maybe take a vacation or two year. that is the american dream and it is just a dream for so many of them. $30,000 a year, one in eight. stuart: 12% of american households actually make $130,000 a year or more, 12%, that is it. >> 16 million american households.

stuart: it would depend where you live. you are not doing very well -- >> $130,000 gets you nothing. but you would still think nationally i thought that number was a little low. two incomes, mom and dad working, you would assume it would be a little more. usa today crunched the numbers and found statistics that were superhigh like the grocery bill for an entire year, $13,000 for groceries. that doesn't include going out to eat or anything like that and you are trying to save and everything, taxes, getting squeezed. stuart: the purchase in middle america is going down. >> the middle class is getting squeezed, the rich are getting richer and everyone else is getting poor. stuart: you know about this. and baxter's co-founder, they

did away with that. is name was john parter. he paid $50 million to ellen degeneres's los angeles mansion. liz: what is interesting is she bought the home. talk about a flat. she bought it for $40 million, she owned it for nine months and the best part by the way, no brokers. you sell your house to your friend there is no real estate fee, just lawyer to lawyer. looking at the house, it has not been changed. is the best house in l a, 13,500 square feet, on a 2.3 acre lot, nine bass, and tennis courts, full house, and guess who your neighbor is? this scares me. the playboy mansion. for me i wouldn't want to live next door to the playboy mansion

but if you are sean parker, sure. stuart: the obvious question is he was the co-founder of naps there which was shot down in a court decision. where did he make his money? >> facebook. john parker. stuart: a couple of percentage of ownership? >> he really reinvested himself. stuart: 4%. he has 4% of face book. >> leading up to the facebook creation he had other businesses, not like an actor was ten years ago, he kept going, he pays $55 million for a house. stuart: thank you, your take on the entire program is next.

really... so our business can be on at&t's network for $175 dollars a month? yup. all five of you for $175. our clients need a lot of attention. there's unlimited talk and text. we're working deals all day. you get 10 gigabytes of data to share. what about expansion potential? add a line anytime for 15 bucks a month. low dues... great terms... let's close. introducing at&t mobile share value plans... ...with our best-ever pricing for business.

stuart: if you put a picture of me on television wearing socks and driving a tractor and the audience makes fun of me for years and years, i cannot sue you. if i do sue you i could be liable for your legal costs because i inevitably going to lose. judge napolitano: except the picture of which you speak, you were wearing flip-flops and not sox. your the only person on the planet that would drive a tractor in flip-flops. stuart: i am beginning to wonder if i will never escape from criticism for that picture of me on the tractor. let's do with that, let's move on to the rest of the show, the bbc denying air time to climate change, just more proof climate change is farce and bought about sides of. reliance would welcome criticism. next one, no time. we got another one from canada.

here is dierdre bolton. dierdre: i am going to be looking for pictures of you in a non english soccer journey. we talk about that. on-again off-again, data storage, has a rocky path to going public, a recent in general and of money over the finish line, one of its earliest backers will tell us if his patience is running out. speaking of patience, wage is a four letter word in new york city. even if you find a cat on a rainy night you might think it is too expensive anyway. uber claims to have a better deal, the chief will be joining me on a price war he just started. and investing in big oil and gas infrastructure, black rock has put more investment dollars has done more work than its peers. the head of global private equity