we have clarity on the heels of what is happening internationally. have a good weekend. i will see you on fox news channel on "sunday morning futures." time for varney & company. stuart have a great show. stuart: good morning, everyone. with your money at stake this is what is making news. america reverses policy in iraq. f-18 launched, islamist artillery bombed. israel and hamas exchange fire. three-day cease-fire ends. ukrainian forces shell hospital in rebel territory. putin's troops poised on the border. investors react all of this with, a flight to safety. government bonds all the rage today. we pose this question, with all this happening over there, should investors hold stocks over here? "varney & company" is about to begin.

stuart: well, look at this, stocks up, despite what is happening overseas. will this hold? as a tense, weekend begins. look at the s&p 500, that is a broader market average. it too slightly higher this morning. look at gold. where are we in times of crisis with the price of gold? right now, we're above $1300 an ounce, basically flat on the day so far. here is the key indicator today. it is the yield or the interest rafted on the 10-year treasury. when you get money moving into government bonds. that is called a flight to safety. that's what wee got. we're at 2.37%. what is it three weeks ago? we were 2.6%. that is a flight to safety. by the way at one stage investors had to pay the german government to take their money. called a negative interest rate. it happened. briefly. i want to give you details what is going on overseas. the pentagon confirming,

airstrikes in iraq. two f-11s launched from aircraft carrier in the persian gulf. the uss george h.w. bush. that was the name of carrier. these two f 18s, dropped two 500 bound laser-guided bombs on artillery positions near the city of erbil. that is previously calm kurdish city, what is being called islamic state of iraq. control of that city and the whole kurdish region very much the focus of the ongoing battle. loot colonel ralph peters fox news military analyst joining us now. what assets, we, america, do we have available to go after these islamists? >> well we have of course our entire military available but the most we're going to use is air power certainly at this point. but we have real depth in air power still. we have bombers can fly from the states all the way to iraq.

obviously fa-18s from aircraft carriers. there is a big airbase in incirlik in turkey quite close where we can stage. we have airbase notice gulf we can forward stage from. the problem is not lack of u.s. assets. stuart: okay. >> issue is american will. stuart: are we prepared to use them, yeah. are we prepared to use them. >> no. stuart: your answer is no, we're not prepared to use them? >> no. so far, this one strike that is being ballyhooeded, one tweak with two f-18s, that is fender bender. that will not deter islamic state militants, terrorists. the basic rule is very straightforward. liberal intelligence yaw can't get it. you should be reserve when and use u.s. military power. when you use it you hammer the bloody daylights out of the targets. if you're going to use american air power, including cruise

missiles and anything else you have to make it hurt. if you don't, you get the clinton effect when he lobbed cruise missiles at an empty training camp in the late '90s, hit a couple of meaningless targets in sudan, declared victory. that strengthened al qaeda. failure to continue attacks will encourage islamic state. stuart: okay. >> the stakes are high. stuart: can i ask you about the kurds? we understand that the kurds, there are reports that run out of ammunition. they have got their army, the peshmerga i leave it is called. they don't have much ammunition or modern weapons. a lot of them are leaving the battlefield. is america in a position to rearm kurdish forces and do we have the political will to do it? >> two very different questions. stuart: yeah. >> yes, we have the capability. if the turks opened border and they would, we could truck it from incirlik air base into kurdistan. there are certainly good

airfields at erbil in the kurdish area. the problem will the president do it? we have been treacherous with the kurds. our only real allies outside of israel in the middle east. we really let them down and it is a problem because they are willing to fight but there is always been this assumption, well the kurds are tough, they can do it but the peshmerga we knew in 1991 and 2003. these are middle-aged and retired. you have the youngeshmerga, that names e name means, those who do not fear death. we'll see. but these young peshmerga don't have combat experience. the isis fighters, islamic state terrorists and militants, they have now got at least three years experience in syria under their belt, some of them fought in afghanistan before that, in iraq before that. don't underestimate the power and organization and now the force of the islamic state because they have got a lot of captured equipment now that the

iraqi military abandoned. as a minimum, we owe it to the kurds and other suffering minorities in iraq to at least destroy the u.s. equipment islamic states captured. stuart: as we always say, colonel, this is a financial program and we're looking at the impact of what happens over there on what happens here on our markets. arguably more pressing for the markets is what is going on in putin and ukraine and russian troops which are massing on the ukraine border. now putin's poised for what we hear is a possible invasion. the latest from that front is that ukraine, artillery fire hit a hospital in rebel controlled eastern ukraine, killed at least one person. now, can you tell us what assets does putin have for his military poised on the border? >> well he has at least 20,000, some reports say 40,000 troops poised on the border. closer to the border than they have ever been before. and the 40,000 that were on the border several months ago, back in the winter, they were there as an intimidation force.

this looks more like a invasion support what they can support. those numbers are not counting the airborne forces deployed in depth. so it appears that putin could, in a matter of hours, after giving the order, invade ukraine. now why would he do it? several reasons. he got away with grabbing crimea. he is now for the first time running into some opposition with the sanctions. ukrainian military surprised him by fighting back after they didn't fight in crimea. his, the separatist it is, he created and continues to arm and sponsor, have been doing pretty badly. ukrainians are on the verge of cutting them off. putin face as great deal of loss of face internationally and hurt pride and strategic set pack if the separatist it is are defeated. so we don't know if he will go in. but chances i would say, if i had to bet will he or won't he, would hedge toward he will. stuart: that is the important question because for financial investors, they want to know, is

putin going to roll those troops across that border? because that makes a huge difference to stock prices come monday morning and your betting is he will. i don't know about this weekend but you bet he will? >> ideal time to do it, early hours of sunday morning. but i'm, it is close. you know jimmy the greek, ghost of jimmy the greek would not give you great odds either way, if pressed, studying putin for years i think he is more apt to do it than not because he has got a long-term strategic vision. this is an important part of that strategic vision. and he has no reverse gear. stuart: yeah. lieutenant colonel ralph peters, always good to see you, sir. thank you very much. >> good to speak with you, stuart. stuart: thank you, sir. let's give you straightforwardly the money angle. the action this morning in money is all about the flight to safety. what you're looking at is the flight to safety. the yield on the 10 year treasury is down. that is because people are

buying that treasury, pushing up the price. price up, yield down. look at that. 2.37%. by the way when i woke up this morning, three, 4:00 in the morning it was down about 2.36. you are at a low in the treasury yield. we have gene peroni. gene, you've been listening to all of this. you know what is going on over there, are you going to hold stocks? let's talk stocks for a second. are you going to hold stocks over this weekend? >> we are. i think if there is an event over the weekend, yes the market will probably have a harsh reaction at the opening but i wouldn't be surprised by the end of the day the market was moving well up from its lows of that session. so i think it is difficult to time where the bottom is going to be in this market but i think the recent weakness is discounted a pretty good portion of the geopolitical landscape right now and the conjecture about some near-term events. stuart: would you say what is going on in iraq what is going

on with ukraine and russia, is not that fundamentally important to our stock prices over here? would you make that judgment. >> oh, i would agree with that. i think most important things for the stock market historically and in the here and now, are the perceptions about about outlook for interest rates and chorus of earnings growth, relative to what wall street is expecting. i mean we're in the second-quarter earnings season here. it is looking absolutely terrific relative to what wall street community was expecting. that is what the market wants to see. the market wants to anticipate something better on horizon and has every right to do so because earnings continue to beat quarter after quarter. those are the mainstays, those are main things that will set the tone and course for the market longer term. and they're nicely intact for the bulls as i see it. stuart: do you think there is any, any impetus for stock market with interest rates falling as they have, that yield on the 10-year 2.37? >> i think environment for the

stock market is still very good. we're certainly in the throes of a correction not unlike what we saw in february, not unlike what saw last october. dow hitting 200-day moving average, actually touching that now and bouncing off a bit, but we're seeing in the aftermath of the initial spike down, especially the one we saw july 31st, look at volatility index, it is hitting, making a series of descending tops which means that the worst fears brought about on jewel 31st, early on -- jewel 31st, brought on july 30st. selling pressure is behind us. market identifying support. establishing that and fortifying, moving higher but i still think the outlook for the market is very good from here to year-end. stuart: gene, you did have a very good job holding some investors hand today. i notice the dow is up 68 points. what you started it was up 50 points. gene peroni everyone.

>> thank you. my pleasure. stuart: gene peroni, mary kissell, not too worried about the stock market but i think you would agree there is general level of anxiety what is going on over there? >> we should be worried. there is no strategy out of the white house. there is no commitment to the protect u.s. security interests. i listened to president's remarks. anyone with a conscience look at the rhetoric and be mortified. the president said there is genocide going on, even genocide is not enough for us to send u.s. troops back into iraq. he is saying this for years. he said, there is one quote, listen to this, stuart, he said the u.s. can not and should not intervene every time there's a crisis in the world. what if his lack of foreign policy is creating the world that is in crisis? stuart: good question. mary stay there you're with us for the hour. let me move on to look at some of the individual stocks moving in this market. by the way we're up nearly 70. lululemon, a big winner, well not a big winner but a winner. the company's founder selling

half of his stake in the company. selling it to a private equity firm and in turn he will not launch a fight to change management. investors like that. zynga, however, they're the farm people, what was name of that farmville. >> farmville. stuart: they're the farmville people. they're a loser today. adam shapiro at the exchange for us. what is going on with zynga. >> pac-man fever is turning into cardiac arrest. this stock is down 20 7% year-to-date. it hit a new 52-week low today. down $2.71 and change. yesterday when they reported earnings, they were down. a loss of 7% per share. the street was really surprised about i that. when they started trading this morning, stuart, they dropped 7 1/2%. they come back a bit. they are having a tough go. they have licensing deals with the nfl they have a new game called, nfl showdown, real football. not the stuff you played at goalie at manchester united. but just launched yesterday.

they're not promising a turn around until 2015. a lot of investors are very concerned about this. average monthly of users 136 million. street was expecting daily after users, 34.4 million. farmville will not cut it. they need to get faster to switch to mobile games. stuart: we were telling you that a year ago. adam, talk to you later. up next, what is president obama doing in the midst of all this global chaos? peter barnes live at the white house with all the details in a moment.

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the legacy of usaa auto insurance can be one of them. if you're a current or former military member or their family, get an auto insurance quote and see why 92% of our members plan to stay for life. stuart: i will not call this a solid gain but market is up where there is turmoil all around the world. we're up 64 points. the 30-year, i'm sorry, 10-year treasury, the yield is now 2.38%. that is close to the lows of the year. peter barnes is with us from the white house. peter, i want to know what is on the president's schedule today as the world is clearly in crisis? >> well this morning, stuart, he did meet with his national security team according to the white house but other than that we don't have anymore information on his schedule. as you know the president authorized those strikes in iraq

on humanitarian ground and to protect american personnel in iraq but he says his policy of no troops, no boots on the ground, is still maintained. he says he is not going to, last night he said the united states is not going to get dragged into another war in iraq. he is still scheduled to go on his two-week vacation in martha's vineyard, leaving tomorrow, but the white house says, listen, he will go with all the necessary communications equipment, with some of his national security advisors, so he will be able to do his job as commander-in-chief while he is there but not all of his advisors are going to be there. so now the white house says he will return to washington for three days, august 17, 18th and 19th for face-to-face meetings with his team. stuart: got it. peter barnes, thank you very much. mary, why has the president kept on delaying doing anything in iraq? >> remember, president obama ran

as anti-bush. he was going to be the great peacemaker in the world. he is academic. this is not a man who really thought about the lessons of history. remember when we heard george w. bush, he was reading a new book every week. mostly, histories of wars and such. that is what informed his actions. this president lives in what we call a post-conflict world. remember his comments a couple weeks ago in seattle where he said, we're transitioning to a new world order based on a common humanity. he actually believes that. he doesn't believe in u.s. power. he doesn't believe that we should be the world's policeman. and so from his perspective, he is doing the right thing, by not intervening in iraq until he is forced to. remember, he didn't send advisors in until we sajih hawed its terrorists taking over the bulk of the country. he didn't do airstrikes until those advisors were threatened. this is nothing to do with protecting american security interests or having a broader vision for u.s. foreign policy. stuart: look, i'm thinking of this as an investor and for our

viewers who are investors what do they make of a weekend where anything could happen in ukraine and anything can happen with minorities in iraq and isis as we used to call them? >> say one thing for obama is incredibly consistent. he has said since the time he was on the campaign trail, he won't send troops abroad. he doesn't believe in u.s. power. he wants to use organizations like the u.n. to enforce world peace. we know that he has appeased all sorts of strong men, assad, putin, the taliban. this is who he is. stuart: you're saying -- >> his behavior will not change. does nothing. does nothing or does the bare minimum. stuart: okay. dow is up 67. there you go, another question about the president and iraq. why not a single word about the mass killing of christians and the persecution of other religious minorities? we'll deal with that in a moment. when you run a business, you can't settle for slow.

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if you're offended because the people in the next booth will get a discount on the bill because they said grace, go eat somewhere else. stuart: well the threat of a lawsuit was enough to get rid of the prayer discount. you viewers, really fired up about this one. we had a lot of comments on it. let me give you a couple. greg said, so, will that mean senior discounts, military discounts, good student discounts, et cetera, will be outlawed too? that is interesting. mike disagrees with the whole idea of a discount. he says, i'm a person of faith but the prayer discount is over the top. some of us are not comfortable praying in public despite being people of faith. i think that is great points. >> they're great points. you have to agree with the judge here. if people feel uncomfortable they can go eat somewhere es. stuart: is a free market. you're a free market -- >> i'm a free marketeer. stuart: yes you are. >> everybody like as discount. stuart: everybody like as discount of the markets trading higher despite what is happening

overseas. 79 -- 69 points higher for dow industrials. futures were way down. now we're up. here is where the action is. i keep saying it. what we're seeing a flight to safety. if it looks like putin will put troops into ukraine, the yield now at 2.38% will go down. because people are rushing into the safety of united states treasury securities. if putin moves, that yield goes down. it is a key barometer. the latest from the middle east. let's bring it to you. iraq's largest christian town has been overrun by those same militant islamists who took over parts of eastern syria and western and northern iraq. kurdish forces protecting iraq's religious minorities. they have been unable to stand up to the islamists. mary, i don't get it. why has the president not a word about those religious minorities, christians in particular? >> this president has never been strong on human rights. remember when he took the trip touching in 2009 -- stuart: that is statement and a

half there, mary. >> look at record. he said nothing about religious oppression. dalai lama comes to the white house. he takes him out the back door with the trash. he had state dinner with african leaders charged with all sorts of horrible crimes. that is very consistent. stuart: i don't understand why there is not a single word, not a single word? you have 40,000 -- >> he would probably say, i don't want to look like i'm lecturing like george w. bush. that is in all likelihood how this president -- stuart: i do believe the leader of the united states of america has a responsible to stand up for minorities being hurd murdered. >> he does, not just because he is the president of the united states and speaks for all of us but he gives cover to other world leaders to stand up and make some lar strong statements because when the is doesn't talk about human rights, no other democracies do. stuart: mutterings just beneath the surface, i would not repeat,

getting louder and louder about the president of the united states. >> i think it is disgraceful. stuart: vis-a-vis christians. serious stuff. >> i think it is disgraceful. stuart: dow industrials, let me stretch my neck. now we're up 75 points. okay. that's interesting. 75 points higher with putin's troops poised right there on the ukraine border. and we've started bombing in iraq. now that is interesting. the dow is up 76 points. weren't expecting that. are you prepared to hold on to your stocks? over this weekend when anything might happen? interesting question. up next, it is one of the most highly anticipated tech products ever. it is the oculus rift. you heard of that? that's a virtual reality headset. looks like a crash helmet. we have one on the set. by the way, facebook paid $2 billion for the okay cue last rift. we have one on the set with us. we'll see if it works in a moment. ♪

this is this morning, we want

to know where the president is at times of international crisis. he is in the oval office, that was early this morning, on the phone with king abdallah of saudi arabia. so much for economic optimism. a newly released survey by the federal reserve, one quarter of all households are just getting by. >> no surprise. this is the weakest recovery since the great recession. wisely due to obamacare, college students letting up on the debt because the u.s. government nationalized the student loan market so of course for a lot of people that doesn't feel like a recovery even though we were into our fifth year of recovery. stuart: the federal reserve did this survey, that is a respectable reliable source, not a publicly biased source. >> respectable source that overestimated u.s. growth.

every year since we have been in recovery. stuart: i'm not that surprised it is a quarter, that is basically living paycheck to paycheck. that is what it is. >> kevin na number in the survey, 31% of people went into retirement with no savings. stuart: that doesn't include social security obviously. >> it is not much of a living. stuart: if you are 65, 66 years of age you are living not in a major city, you are out there in the country, you live in a small house which you own fully. >> the bottom line is we wouldn't be talking about these numbers if we had the kind of robust recovery that is normal in america. it is an abnormal recovery. stuart: absolutely right. thank you very much. from polygon.com, those tech

gadgets, the oculist rift. it is a virtual reality head set for the masses. i thought they looked like a crash helmet but they don't. facebook spent $2 billion to buy the oculus thrift company. let's introduce rest. here he is, he has got it with him. not a bit like a crash helmet. give it to me. >> you are not a huge tech guide that here you are leaping for this. fantastic. >> don't take a picture of this. stuart: when you put it on like this. delete that video. if i turned it on, you had some practice with this, a videotape what you would be seeing. >> basically it is a full head set that every part of your vision is covered by whatever is

inside a piece of software. so if you are scuba diving you can see sharks and wales. i was on a roller coaster re-entered a spinning around a bump, the city of paris. stuart: that is what you want to see. i want to see -- >> load up the program and you are in that. stuart: that video -- that really is -- >> tough to portray on video. once you are in it, your full vision follows where you are looking, is kind of mind blowing. depends on the game. stuart: have you fixed the motion sickness? >> game to game, game is do very well. stuart: it is games, come on, there is more used to this thing. >> why do you think facebook bought them? just to make a bunch of cool games.

you can imagine people setting around a virtual table but everyone at their homes or on the beach or something. this is why they bought it. it is a way to bring people together remotely. stuart: i am at my house wherever that is as want to meet our producer, they all wear these goggles, you wear them and everybody can see each other in real time as if we are sitting in the room together. you can do that. >> you never get away from work? >> put your feet up when having a meeting. stuart: can you do that now? >> people on working on software, this is not full be available. you can buy it for $350. it is an early version. the final version is q. 1 next year. stuart: could i watch a movie? wraparound movie? >> pretend you are in the theater and you don't even need to -- looked around at what you want to look at. you can look behind you if you want.

stuart: if i am watching a movie with this -- goggles on i could turn my head and see what is behind me? >> virtual theater for this movie or see seats behind you more people talking loudly. stuart: i can buys that, the very early version which is a game playing machine for $350. what happens next year, early part of next year. and what? >> that will become a bit of a relic and not something people will be using at times. the final version, final piece of hardware, that will be what everyone buys and develops, your piece is sort of like something you put on not mantle. stuart: a year from now, go forward year. that is a viable product that brings wraparound reality to everyman? >> gentlemen 100%. stuart: do you like it? >> amazing. stuart: i do.

that to me as a new and different product. >> think of the productivity. it will make us work all the time. stuart: no no no no. think of watching a movie. >> the wall street journal is supposed to be thinking about that. stuart: when you think it is a breakthrough that i do? >> the first time you use that i play a lot of games and use a lot of technology i was born a way. stuart: facebook don't this thing. that is a hard piece of property. it is not a piece of software. that is an actual machine. >> another reason they bought this company. manufactures things as well as this company has been doing. they were able to remove that from the equations. very smart. stuart: $2 billion. >> i think it will be. stuart: thanks very much indeed. after the break, more missing e-mails with less lerner and the irs, this time in it is about obamacare. we will explain it in a moment.

when folks think about what they get from alaska, they think salmon and energy. but the energy bp produces up here creates something else as well: jobs all over america. engineering and innovation jobs. advanced safety systems & technology. shipping and manufacturing. across the united states, bp supports more than a quarter million jobs. when we set up operation in one part of the country, people in other parts go to work. that's not a coincidence. it's one more part of our commitment to america.

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morning. hand caterpillar and disney and procter and gamble and united technology. looking at the winners so far today lulu lemon, and 50% stake in the country. lion's gate scale, not surprising investors with their earnings report. ebola will come to the united states. and the right prognosis coming up after the commercial. 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.

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stuart: stock alert. monster beverage, energy drink people, higher sales and profits of 6%. obamacare now in canada. kia official involved in healthcare.gov's rollout turns out she did the e-mails that had been requested by congress and investigation into that disaster is rollout of the web site. more on this little later. let's switch gears. ebola still in the headlines. the national institute of health in maryland, the cdc says it is not impossible that there will be some travelers who become sick with the ball in this country. cdc is confident it will be

contained, you're in agreement? >> it is quite reasonable to assume some times someone from west africa will get on a plane, ,dleressu&aig a . thethereupnabmenaig a . thenaljoss alttiou'#/o bfan le , have gone infected in west africana and get here feeling relatively well and get sick. that is something we need to be prepared for. we need health care system that can address that with the right isolation and protective equipment for the health care workers. that is the reason we feel there won't be an outbreak. stuart: you have a difficult position because on the one han you want to inform the public. on the other hand you don't want to create a sense of fear and panic. you are walking a tight rope. >> you want to be honest so people understand you are consistent and giving them the truth and the reality that it is possible to get to the united states and have ebola is a feasible issue. it should happen. the other corollary of that is

people should realize even if that does happen, we have capabilities here to turn into an outbreak, and they look at tv and see the catastrophic situation and they equate ebola with that. that is not the kind of thing that could happen here even though we might see a patient with people in this country. stuart: two questions about treatment. windier think we might see any blood vaccine. >> connell: vaccine is not available even if we are successful in it for at least a year or more. we are working on a vald haine, finished the animal studies and we are going into early phase 1 human studies to determine if it is safe in september. a couple months from now. that information would be available by january of 2015. and after that it will take at least a year before we have a

vald haine that could be used f health care workers. stuart: they think we would have this authorm the ed for use herd overseas verytas3 reckly if indeed it was promising in treating ebola? >> the first thing to point out is we have no idea if it is promising. there are anecdotal reports in two patients that improve them, we don't know if that is related to the drug or not. the critical issue with the cteg z mpab is the supply issue. there are vanishingly small, a handful or less of treatment courses available and the critical issue now is to scale it up in the production to get enough to do two things. the first is to do clinical trial to see if in fact it is

effective because the fe ust thing, do no harm and make sure you are giving something to someone that works that has to be balanced against the compassionate need to get at people astas3 ret wily as possible in fact it is effective. stuart: you would get it to west africa as fast as possible regardless of test results or trials and if tomorrow morning you dicteuover see mpab was ind effective, if it did help the two patients to receive that surely you would be ramping up production and getting it to africa as fast as possible regardless of trials or anything else. >> certainly if it is unaffected and the question is we don't know if it is eatfective notwitnimtanding the two patiens that got it but in answer to your question certainly the africans are the ones suffering from this disease. when a drug is available and proved to be effective enduring chemical trial process one learning about it certainly you want to get into the west africans. stuart: can you find out

relatively quickly whether it was indeed eatfective with thos elyo patients? >> no. i can tell you frankly it would be impossible to say definitively thad this intervention was effected in the two patients. anecdotally face seemed to have gotten better when in fact they received it but a lot of patients get better even without rec iving it so it is suggestive but no way to definitively tell in these two patients whether this d3 eg was highly effected. stuart: if the west africans sa they please, we don't care whether you can prove it is effective, we want something now, would you respond and give it to them? >> isn't we. the company makes it. stuart: you could put the arm on somebody and speed it up. >> certainly but one thing we need to be aware of is when you have an experimental d3 eg that is not proven to be effective

you have to be very careful when you bring it and put it into people in africa and 4 countries because there is considerable amount of suspicion about using them as guinea pigs. you have to be careful of that. that is an iaboortant point. stuart: we pabpreciate that and we thank you very much for sharing your expertise with us today, thank you, cte.. mary, you are dying to get in. maria: we have written a lot about the fda and the increasin y3 costs billions of dollars to develop drugs to satisfy the fda in this country and the reason you don't see more companies going out investing that money to get cures for these diseases is a look at the fda and say we can't afford it and even if we could it will take ten years to hit the market. that is an agency that is broken. stuart: crisis overseas, confiell in iraq, russia's putin massing troops on the ukraine bow er, where are you going to put your money over the weekend?

the latest updates, the answer so far is you're putting it in stocks. the market is up. back in a moment.

stuart: the market is stable, we're 67 points. that is where we have been the last 45 minutes to 1-hour. it is the same story with the s&p 500, a modest gain, 7 points higher at $19.17. the ten year treasury yield, 2.3%. i keep repeating myself but that is where the action is on the markets and the action is in those treasurys because it is the flight to safety. investors worried about what might happen if this weekend so they pick their money into cash, that is treasuries. the price goes up and the yield comes down. $2.38. let me bring you a map of of the headlines so far. we have confirmation the u.s. military has used airstrikes in iraq. to be specific near urbil..

two aircraft launched from the persian gulf and drop laser-guided bombs on militant artillery. with all of this going on we have to ask will the president still go on his schedule beijing vacation for you? mary is with us. he is still going tomorrow. >> it wouldn't be an issue of the american people felt confident they had a sound foreign policy. stuart: he is going to martha's vineyard for a couple days. that is being unkind. he is coming back because of public pressure. >> he is the bare minimum president. this is a guy who only acts when and only forced to act when the american people see the results of his foreign policy. stuart: i disagree with that, he

has a foreign policy of retreat. denied use american hide power. >> his policy in his eyes he is a realist. he thinks the lives of these bad states is a foregone conclusion, america should accept it, he thinks this is a good thing. stuart: shark week coming on the discovery channel. we have a man who swims with sharks for a living. he is a guy in these videos. he hasn't yet been been, not even once. i will ask him, why are people so crazy about sharks? the ratings on that show, i am envious. fox and friends host brian kilmeade is here, we will talk tiger woods. the nfl season kicking off. the gin blossoms. fox and friends this morning, look at this. ♪

i had no idea i had shingles. there was like an eruption on my skin and burning. i'd lift my arm and the pain back here was excruciating. when i went to the doctor his first question was "did you have chickenpox?" i thought it was something that, you know, old people got.

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stuart: vladimir putin ploys on. isis poised to slaughter non muslims in iraq. that is why we are asking. you want to hold stocks when anything can happen over there? yes, you are holding them right now. we will update what is happening, a huge flight to the safety of government bonds. ed klein is here. he called the president the amateur. his analysis now. there is a big court decision coming monday on the irs e-mail scandal, the tea party patriot founder is here and so is joe romero, the guy in the water on shark week. they want to see him get bit in my opinion. second our starts right now. ♪

stuart: i am shocked to see the dow up 81 points. think it would be down with all its tension overseas but now got that wrong. of 81 on the dow. pretty much the same story with the s&p 500. broader market indicator, 500 stocks in that index. they are up 9 points. gold? you would think that would go straight up at times like this. it is pretty much flat and as for the 10 year treasury, that is where i keep saying it there is where the action is. down goes the old 238. let me bring you the latest from iraq. the pentagon confirms the u.s. has launched, quote, targeted air strikes. specifically two f a 18 jets dropping 500 pound bombs on a truck towing artillery to militants. that brings in judy miller for

an update on what is going none. you always bring us the very latest so bring me the latest on the kurds. >> i will bring you the good news and then the bad news. we finally started to do something of griffin dropped gallons of water. what we are doing is extremely limited militarily. it is aimed at stopping isis's move, we have more than 80 americans. that does nothing for the kurds who are our only allies other than israelis in the middle east, hangs out to dry. >> i can interpret that as america actually staying out of this. and not protecting the kurds. >> the region itself, american interests. let's not forget that we had to

go into afghanistan, thousands of miles away, to fight al qaeda. isis is a descendant of al qaeda and they have taken over an area as large as great britain in cme and iraq and they are moving towards kurdistan. it will not stop there. they have their eyes on jordan. this is an expansionist group that literally wants to establish -- stuart: we are not using our air power to stop them. >> we are not and we could. we could even put a base there which is what the head of the kurdistan asked me if four years ago, why won't the americans put a base there? we are your friends and need your protection and we want you here. we have never done it. stuart: out of left center field, isis, the islamic militants, now controls that damn. i don't know the name of the dam. >> we talked about it last week.

stuart: i was in afghanistan many years ago and i remember seeing those statues of buddha. they were 900 years old. the taliban. them up because they were non islamic. it keeps recurring to me, maybe these islamic militants will blow up that damn because they can. >> they absolutely could. they will do whatever they have to do to advance their interests, they don't care how many people die and give more christians and more shia dye that is even better. they don't care who's starving to death on a mountain in kurdistan, they want the suffering and pain and death of people who do not believe as they do. sometimes you have to take people at their word. these people mean what they say. stuart: un to vladimir putin net ukraine. there are reports, reliable reports, 20,000 troops massed on the ukraine border, lots of weaponry, he is positioning for a strike, invasion, he is positioned to believe that.

if he did it, what do you think would be our response for nato's response? this is wild speculation. >> i am sure we would have another meeting to discuss what to do but given what the europeans did, i will be more optimistic which is to impose serious sanctions sector wide for the first time. i am beginning to think vladimir putin is just bluffing but if he is not i think the president might have to do more than he has said he is willing to do. stuart: we won't use america's hard power, won't use the military. >> this is unlikely from a man who has the president's stated goals. stuart: the general public would very much approved of that. i don't think the voting public does not want a clash with russia directly. >> exactly the no one wants a clash with russia but if russia disregards international law and goes into a neighboring country, what will our nato allies say if we do nothing to stop that

others in essays in this awful? stuart: what will the market do? we are a financial program. we have to consider is that. money is going into the stock market. the dow is up 80 points. you were surprised. >> i was indeed. i never understood the market. stuart: i was about to say nor me but that is not strictly -- i can't say that. thanks so much. now get the ten year. this is where the money is going. this is money flowing from all over the world straight into american treasuries. as the price goes up to, as people buy more the price goes up and the yield goes down, 2.3%. investors looking for a safe place to put as the tension is ukraine gets worse may be over the weekend. here it is tres knippa from chicago who knows a thing or two about treasury yields. have i got this right? the yield is down because of geopolitical concerns for this weekend and that is why the yield is down?

are you going to give me a different story? >> i guess that is certainly feeding into it. why don't we do this? you talk about the ten year treasury a lot. i talked about in a lot. you know is important and i know it is important the viewers think it is important. let's put it in the quarter as its role through everything else would you oil and the s&p, that is to be the single biggest thing we need to watch because i think everything is driven by the fed. as far as what bonds are rallying, truthfully i think a lot of traders think bond yields are going to work up and bond prices are going to go down. me personally i disagree. like you and i have said we had our dinner wagers that when janet yellen leaves office q e will be higher than when it started so the fed is not going to back away and they are not going to let interest rates rise. interest rates are zero because that is all the united states can afford to pay. let's not forget that. stuart: i would never dream of forgetting that, tres knippa, as long as you are on this show.

thank you very much, good stuff. turmoil overseas and so far the president has not changed his schedule. he is still heading for a vacation on martha's vineyard tomorrow morning. he will make a quick trip back to d.c. and disclose reasons but he will hold some meetings going to mark's vineyard and coming back virtually immediately. to a couple fund-raisers, let's bring in ed klein, his new book blood feud, let's remember he also wrote the amateur. ed klein by the way is very much an expert on his view of the president's persona, his approach to the world, his approach to life. you called him the amateur. now we have the president finally acting in a very limited way in iraq. that is in six months of waiting and doing nothing. how to characterize the president's character. >> there is no difference

between what he is doing in afghanistan, we are going to do a surge, in afghanistan after the surge. we do some selective bombing but we won't get into a military confrontation in iraq. he is signalling to his enemies that he is not all in. stuart: he is reluctant to use american hard power, military power, reluctant to do that. has he always been reluctant to do that and why is he reluctant? >> because he got elected by saying we're going to get out of iraq, we won't get involved in these wars anymore. i am going to keep you out of foreign entanglements and now look what is happening. the whole world is just kind of coming and glued. . i am told the russian bombers

scrambling our jets when we are in iraq, vladimir su bling -- vladimir putin is assembling on the ukraine border, china is putting installations on islands in the south china sea, all of which is happening when obama is a reluctant warrior. stuart: too late to change. the president can't suddenly revealed himself to be a very enthusiastic warrior in favor of using american power. you can't make that reversal. >> no he can't. the interesting thing to me about all this given the fact i wrote a book called the amateur and blood feud, the clintons versus the obamas, where does hillary clinton, how does she come out of all this? she was present at the creation of the obama foreign policy or non foreign policy. now that the world is coming unglued how can she run on a record that seems so abysmal? stuart: at the moment she is not

part of a russia/putin/ukraine debate. cheese's and entirely, the media has not drawn her in. can she escaped unscathed? >> i don't. she has a real problem because here is obama allowing in a sense the world to come unglued. what is hillary going to say? we should be more aggressive? if so she loses the base of the party which dozens want more involvement? stuart: they think president obama care about america's position in world? >> i think he cares in a way that you and i don't care. i think in his view the american people are just fed up with involvement in foreign entanglements and in order to

get control, keep control of the senate which is foremost in his mind he doesn't want to lose his base which says keep out of foreign entanglements. stuart: his base is relatively small compared to the rest of the people. >> most americans look at the world and say as madeleine albright said recently, it is a mess. it is barack obama's fault. stuart: always a pleasure, thank you. to the stock market. i have a winner for you. a drug company which is up big. adam shapiro, which company and why? adam: it is out of british columbia. they haven't experimental ebola drug, they announced they were removing a hold on clinical trials of this drug and of course shares of this pharmaceutical company are skyrocketing. is up 120%, today it is up 32%. it hid its annual high on

march 16th this year. is not new that again. it is around $18, up dramatically it is of 42%. they have that experimental ebola drug the fda has given the approval to take hold. stuart: thank you very much. up next the deadline for the irs to explain what happened still those missing e-mails. the deadline is monday. we have the founder of tea party patriot with us to discuss just that. how why, hurricane --iselle may down -- land, and in downgraded to tropical storm. winds 60 miles an hour. heavy rain, dangerous ocean conditions. strong currents, waves up to 25 feet high. the first tropical storm to hit hawaii in 22 years. watch out please, more troubles on the way, hurricane julio is expected to hit the island over

the weekend. tough on tourists.

stuart: how is this for a headline? surprising number of people lying on their resumes but employers don't seem to care. loren has details. >> that is correct. according to career builder 58% of bosses say we found we caught someone lying on their resume but here is the statistics that might surprise you. have of them will dismiss you on the spot for fibbing. the other half might really like you and overlook it and say that is just an embellishment, not really a lot so no big deal. what do you think? stuart: what is the difference -- what is a lie? when is an embellishment a lie? when is a lie more like an embellishment? >> we are taught to embellish, to use strong verbs and action words to command what we do and

better language so embellishing is good that you can't this or what you do. i have an idea. if you and your dad have the same name in your jr. turning your dad's resume because a fact check, it is accurate. i am kidding. stuart: the all time expert on authenticity, embellishment and lying, brian kilby. >> there is a big difference between embellishing and lying to. i didn't work your right it is black-and-white but you are a busboy at you right down owner, what is the big deal? is it that much of the nitpick? split hairs? stuart: am i the founder of cn and if i was the first person to broadcast from cnn in new york and day 2 of the network? and my embellishing? >> cnn has not been the same since i left is accurate if it is on varney's resume. stuart: i am glad you are on the

show. >> for one quick second, many executives fired for white bias. and something really serious now. a federal judge is demanding explanations under oath for why lois lerner's e-mails went missing and the deadline is monday. give an explanation monday or else. any beth mark cohen, co-founder of the tea party patriot. it is monday or else. give me an explanation, is that right? >> a federal judge has done that with judicial watch, freedom of information request for the e-mails involving the irs. stuart: the two years worth of e-mails that used to exist which

supposedly deleted between lois lerner and the white house and campaign. those are the e-mails which have to be explained. >> correct. those are the e-mails that have to be explained. tea party patriot recently asked the department of justice, signed on for a letter asking the court to do the same thing with e-mails we have requested from another freedom of information request with the irs because they continue to stall and delay and don't give the information they are supposed to. stuart: we are pretty close than to finding out what was in those e-mails and what really happened to them. we are close, aren't we? >> i would say what we are as close to a deadline. as far as being close to getting the information from the irs because they have the late and stalled and wide so often i don't have a lot of faith that they will meet the deadline.

"imus in the morning" when you can't just say i am sorry, the dog ate my homework. >> you can't do that with congress. the freedom of information requests, the judge will respond, we will see what happened. stuart: tomorrow is the 40th anniversary of the resignation of president richard nixon over watergate. a lot of people say this cyrus scandal it could be airs scandal it could be a greater scandal than watergate. >> nick and would love to have this overreach and do what the irs has done to tea party groups around the country. it is a complete abuse of power

and we need to get to the bottom of the than find out everything that happened and hold them accountable. y tea party patriot called for a special prosecutor. stuart: what happens monday morning if you don't get the explanation the judge has demanded? >> we will watch what the judge did, will the judge told the irs in contempt of court and will there be real meaningful accountability? stuart: we shall see. thanks for joining us. we will be looking closely on monday morning, i promise you that. brian kilmeade, you weren't even born. >> yes i was. i wasn't conscious. from 64 -- i was more interested in putting a baseball card in my spokes on the back of my stingray but i am able to read

the history books and find out is amazing how quickly, we wait until 6:00 for the news to come out, waited for newspapers in the morning, we had micro analyze and everything. i am curious to see what happens with the news you just talked about to see if lois lerner could go out and speak or will she take the fifth again. stuart: a big deal. more stuff coming. another example of government failure. billions of taxpayer dollars wasted on high-speed rail projects. my take on that after the break.

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liberty mutual won't raise your rates due to your first accident. switch to liberty mutual insurance and you could save up to $423 dollars. call liberty mutual for a free quote today at see car insurance in a whole new light. liberty mutual insurance. . stuart: go back three years. it's the state of the union message 20, 11. the president lays out a golden vision for bullet trains, 200 miles an hour and coming soon to a route near you. fast-forward to the present. headline in the "new york times." 11 billion dollars later, high-speed rail is inching along, goal remains distant. end quote. here's my take --

another government failure, total waste of money, another example of politicians spending your money to buy votes. that 11 billion dollars did not build a bullet train. it was doled out to upgrade amtrak, you know, the railroad that never even broken even in entire history. they got the money for track upgrades. you know how it works. politicians grab the money for home districts and stand for re-election on the grounds they brought home the bacon. bullet train? what bullet train? by the way, president obama asked congress for another 10 billion dollars. why not? how about california? the jewel in the bullet train crown. governor brown's 68 billion dollars and counting project has become another government boondoggle. five years in, costs are rising, the lawsuits are piling up and in a state with the highest poverty rate in the nation it's losing whatever

support it used to have. the fact that the times put the story on front page is very important. the times supports government spending and the times supports strongly president obama. but look at this, quote, experts place blame for the failures on missteps by the obama administration. they've toned it down, but the times is clearly saying the bullet train project has failed, and an incompetent administration is to blame. i'll go further than that. government has failed. the all-government all the time president has failed. you can't put politicians in charge of your money and expect them to build a gee-whiz railroad. your money has been wasted! unleash private enterprise, put a boon on government's neck. in three months, the choice is yours.

. stuart: do i have bad news for frequent fliers? yes, i do. 25% of flights ran behind schedule in the first six months of the year. the highest rate since 2008. lauren simonetti is here, who's going to tell us the cancellation rate is even -- it can't be higher. >> not higher than a quarter of

flights being late. late means if you're 14 minutes after your scheduled arrival. that's considered late. stuart: 14 minutes? all right. >> cancellation since the year 2000, that's what that meant. you were showing the full screen of the airlines in the u.s. and how often they're on time. delta scored the best at 80%. that's the best one. stuart: delta is the best, 80% of flights are on time. that's pretty good. >> the most would be 95% at hawaiian airlines. stuart: that's not enough. the weather is great there. put that list up again, please. who is bottom? >> southwest. stuart: southwest? >> uh-huh. 67%. stuart: whoa! not expecting that. >> new york laguardia look what the arrival rate was in june. stuart: fly out of newark as often as possible and the rate was? >> 65%. jfk did better, newark and laguardia 65% on-time. stuart: he takes a private jet.

go ahead, make your point? >> brian kilmeade, here's what i'm trying to say, if you're late, i need an explaination, they have a new trend now of you get on a plane and say flight is delayed. i don't know, i don't know why it's late, it's still in pittsburgh. that's a problem. i'm in new york. no one links the problem together. now engine trouble makes me feel better than plane's late, i have no explanation. i will say this, i'm surprised to see southwest at the bottom there, but they have to give in and start assigning seats. it's too stressful. you go on a southwest plane, you are in a section, not a seat. they do a lot for the military. stuart: no first class on southwest. >> right, everyone is in jetblue. we all have enough leg room. they will ask you do you want more leg room? and i will say yes. >> but you pay for it. >> $80 for more leg room. stuart: i take off in a hurricane to get there on time.

>> it shows your priorities are right. get there on time. you will risk your life. stuart: of course i would. this is television. you got to be there. right? listen to this. higher outlook at nvidia. the company makes graphic microchips used in car and video games. i'm told and the stock is up 7% at 18. we chucked that in there for you kilmeade. you never heard of them. >> i will never comment in public, but i will after the show. stuart: okay, sunday, here's the real guts of the segment. sunday is the start of shark week on the discovery channel,t program on the entire channel. this video has been released by discovery to promote shark week this time around, getting a lot of views on youtube and underwater drone with go pro cameras on it. watch what happens. look at this.

. stuart: joining us now, drew romero, an underwater filmmaker, founder of 333 productions and he's one of the guys who swims with the sharks, aren't you? >> yeah. stuart: and you've never been bitten have you? >> no, no, no, no. we're not on the menu with sharks, and we understand to keep our distance and respect where they are. >> you just have to keep your distance, that's it? >> filming you want to try to get as close as possible. i think really it's understanding what you're dealing with. stuart: come on. you are looking all serious. you know why your program is so popular? because the audience wants to see you get bit. >> oh! oh! oh! i don't want to see you get bit. >> i like to learn things. i don't want to see people get bit. stuart: it's like watching race

cars, waiting for a crash. >> i think somebody gets something out of everything. fans embracing, just like fans of sharks, love sharks and love the animals and want to be around them. there are 500 different species of sharks and out of them, such a small segment that are close to remotely dangerous to people. stuart: it's the great whites. >> those are the powerful ones. celebrating the predators. stuart: that's why you've got ratings! >> that's shark week, the animals, the predators we all love. they possess traits that we want to see in ourselves. stuart: do you put blood in the water to put chum. >> scent in the water. blood is a term, it's usually fish and stuff you put in the water, they'll smell the fish, see what the fish is, and you're sitting there with a camera, they see what the camera is, it's great. stuart: do they sleep or is it rumor? >> little known about shark's

sleep. there are areas where they've seen sharks rest and stop and stuff like that. we barely have touched the crest of sharks. we're getting closer and closer every year. the cameras have developed to deep water cameras. >> the sharks know how popular they are? >> i always say the shark's biggest dream is to be left alone. [ laughter ] >> that's stuart varney on the weekends! [ laughter ]. stuart: very true. i think those drones, and we showed video of the drone are going to put you out of business. >> let's hope not. we're sitting there pulling wires out of drones hoping they're not going to work. >> you're ratings are fantastic, to die for. >> yeah. stuart: why is it? you got to explain it to me. why is it that sharks draw that kind of -- what is it about sharks that draw the audience? >> i think it's a fascination with all the things the traits they possess, they possess beauty and power and strength,

and ferocity, and it's in our language, a man is a shark or person is a shark, it's saying this person hunts things out. it shows that it's become this cultural icon, and right now it's probably the most powerful animal in the world, and you can see it in the summertime, every summertime we celebrate so hard, it's spanning off. stuart: when is shark week? >> starts sunday on discovery channel. stuart: the whole week, 14 new shows, showing you all different aspects. i'm filming, yeah. >> where do you find the sharks. stuart: you are not bitten, are you? >> no, sir. >> where do you find the best sharks? >> that's one of the questions, it depends what kind of sharks you want to find. great white sharks, multiple locations around the world, regrettably they're declining in numbers throughout the world through fishing practices and by catch and accident. but really these animals are -- need to be protected. stuart: flat out of time.

but we're going to watch you. you are good. we'll watch you on sunday. >> excellent, thank you. thank you very much. stuart: appreciate it. air strikes this iraq, a possible invasion by russia in ukraine. crises all around the globe. we'll tell you what that means for your money going into the weekend. that's next on "the real halftime report." [bell rings] ♪ time and sales data. split-second stats. ♪ its so close to the options floor, you'll bust your brain-box. all on thinkorswim, from td ameritrade.

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. >> reporter: i'm adam shapiro live on the floor of the new york stock exchange. all three indexes in the green. the dow up at this hour, 67 points. the nasdaq up 7 points almost 8 points and the s&p 500 up 7 points. we'll see what happens as we head into the weekend with still a few hours left in the trading day. some of the winners today include mcdonald's which has gone back into positive territory. a loser all morning after reporting sales in july fell greater than the street was expecting. global sales down 2.5%. in the u.s. down 3.2% and the company ceo says the restaurant chain has to refined relevance with u.s. consumers. and monster drink. this stock on a tear year to date. up 1.6%. 52 week up, after reporting better than expected earnings

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talk to you doctor. . stuart: here it is the friday edition of "the real halftime report" with adam shapiro at the new york stock exchange. john in bermuda, cheryl casone, brian kilmeade right here. when i found out about the u.s. strikes in iraq, i thought we would see a stock market sell-off. not the case. what's your take on this? >> my take is the one variable we couldn't account for,

anybody who's been to iraq or knows about the situation expected this to go into civil war. when the president said he's leaving a stable, sovereign iraq, we knew he was very naive or not telling the truth. the one variable about this is the islamic state, i don't think that was accounted for. us going after them, if we go after them in a big way that's good for the market and good for oil prices, because whether the shias, sunnisored kurds, take them out is a good thing. stuart: brian, your the host of fox and friends during the week. this is a high anxiety weekend for investors and everybody else. >> talking about this on radio, talking about this on tv, the same thing, i believe the defense department has given the go sign to hit targets when it can. which means they'll be able to help out the kurds, which means the kirkuk oil fields will be

secure, that's going to play into it. look out. when vladimir putin sees the focus on the middle east, he's thinking what a great time to finish off eastern afghanistan after all. i have 25,000 soldiers staring at each other playing backgammon, put them into action while no one is looking. stuart: watch out this weekend. good one. next up, adam, you tell us about zinger, the farm bill people. they hit a new low, correct? >> a new low, $2.70. at the start of trading they fell 7.5%. down almost 7% right now. part of the problem with zynga, they lost 7 cents a quarter per share. they are having trouble revamping the company. they launched yesterday, nfl showdown in select markets. going into football season, they need to pick up quick and get more mobile gamers to use them. stuart: rotten chart, would you buy zynga below $3?

>> no, this was a terrible report. and guidance going forward is not very good. they're pushing off video games. you look at their competitor like electronic arts who is so much better of a company right now. that's where i put my money. stuart: i've got a winner for you, that would be lululemon. cheryl, you tell me why it's a winner. >> chip wilson, the founder of the company sold half of the stake of the company. the stock is up again today. shareholders, investors are thrilled with the move. he's nothing but trouble. he made great yoga pants and don't call women fat and charge $100 for a pair of yoga pants. he was fighting with the board, fighting with people underneath him. it's like parents fighting and you can't make them stop. this is a great thing for lululemon. stuart: i like that comment, he's been nothing but trouble. adam, another winner, it is gap, why? >> you never pay $100 for a pair of pants at gap.

sales were up last month 2% that. beat what everyone was expect. the street expecting 1/10 percent increase in sales. the stock is up 5.8%. traditionally this time of year quiet, clear out house kind of time for gap and banana republic, they're doing a lot stronger than wall street expected with sales. stuart: back to cheryl, a new bed survey says a quarter of all households say that just getting by, what's that about? >> a third of the folks surveyed. 4800 households are getting by. it gets worse. 30% say they tried to get credit and weren't approved. 31% don't have anything saved for retirement. and also there's one good news, i had to come with good news, a survey in fall of 2013. 26% of those who own homes say prices will go up. they believe it's the only good thing anybody has going is the value of the home they own.

otherwise they are miserable. stuart: brian, quarter of the population, paycheck to paycheck, does that surprise you? >> shows you couple of things. number one when people say the wages are stagnant, now they know, the people who have stagnant wages are getting by. number two, shows you the politician that will be successful will find a way to help the hard-working people do more than get by. the middle class that can unlock the middle class will control the next president. stuart: john, i want to finish with you, you have a pick, a stuck on like, tell us. >> there are reasonable pockets of prosperity in the united states. one is the gulf coast because of fossil fuels. i like nbc bank, a regional bank, and i own it because of the fact it's playing off the regional prosperity. stuart: we hear you john, and everybody else. that's it for "the real halftime report." thanks, everybody. tiger woods back the on links right in time for the pga championship and not playing well. we'll bring you the latest on tiger and golf in a moment.

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. stuart: pga championship under way, louisville, kentucky, current leader rory mcilroy is 8 under. lot of focus, of course, on tiger woods. he tees off at 2:30 eastern. it's the second round of the pga championship. he's currently 3 over. brian is still here. i say tiger woods is not fit to win a major championship. fit medically, physically. >> i think it's hard to argue with that. we can only go with results once we get a guy inside the camp. back surgery, no one says that went well. there is always an issue. here's the other thing, back surgery our swing. he was having problems with the swing before he went out. saying his back is out. he goes in for back surgery, picks up where he left off. at the age of 35 or 36, does tiger woods get a new coach or old coach and say let's go back to the way things were.

i've never seen a guy try to readjust for so often for so long. jack nicklaus wasn't adjusting like this. stuart: will americans warm to rory mcilroy, if he wins consistently? >> i think so, they like his personality, what he's done, and we're truly in a global community. you shouldn't look at things so american-centric, stuart. you look at greg norman, how popular he's been, there's more than just america out there. we can embrace you. there are other people that we like in other places. stuart: i'm told i've got one more question for you. i don't know what that is. >> why did you book me? the question comes in mind every single time. stuart: i'm going to check ratings, do they go down to the original point. >> you said what's wrong with golf. the problem is we like superstars, we like to root against them when unbeatable

and love comeback stories. when tiger plays it's exciting again and he's got to scramble to make the cut. stuart: time's up. your take is next. (vo) watching. waiting.

for that moment, where right place meets right time. and when i find it- i go for it. (announcer) at scottrade, we share your passion for trading. that's why we give you the edge, with innovative charting and trading features, plus powerful mobile apps so you're

always connected, wherever you are. because at scottrade, our passion is to power yours. . stuart: generally you're not a tuj tech guy. here, you're leaping for the issue. fantastic. stuart: you put it on like this. delete that video! [ laughter ]. stuart: yeah, delete that video, and look what happens. they run the thing all over again. that was a virtual reality head set. you put it on, and you're totally surrounded by whatever it is that's being fed to you in that thing. i don't like it because i get sea sick from those things. >> here's why you don't like it, i know you better than you know you. you like things that are real and tangible. you don't pick up novels, you don't like movies. you want to see documentaries.

that's everything stuart varney isn't. stuart: what? we're out of time and i can't respond. >> i have more to say! >> time's up, my time's up. here is deirdre bolton. deirdre: i'm not fighting with you in a movie line, that's good to know for the rest of the summer. thank you very much, we are focused on the u.s. starting air strikes in iraq. investors monitoring retaliation from russia as well over u.s. and eu sanctions, we'll show you alternative ways to protect your portfolio. twitter picking a page from facebook, aiming to get smaller businesses and increased ad revenue. we'll show you how they're doing it. plus it is a truce, yoga apparel company lululemon avoiding a potentially very messy board room battle. one private equity firm is adding stability. founder selling half of his stake to advent international. chip wils