oh, you want to take that bag? you will have to pay that fee? are you hungry? pay a fee for that. pay a little bit more than one seat, extra fee. >> catch more of harris on "outnumbered" on fox news channel noon eastern time. time for stuart varney. it is always yours. stuart: sandra, thank you very much. good morning, everyone. look at this headline in the "new york post." republican takeover in the senate looks more and more assured. if your investor are you more assured? would a more republican congress be better for the economy? the post article does not mention any reaction on wall street. it lays out the odds of a republican sweet. they need a net gain of 60 senate seats to gain control. the post says, three, montana, west virginia, south dakota are likely to turn. four more, alaska, colorado, iowa are very much in play. that is seven. not bad odds when the president

and his party keep sinking in the polls. next question, what would have a republican senate do? roll back or delay costly regulations? build the keystone pipeline? more important, rein in spending? does that add up to economic growth and a market rally? we're asking that question as "varney & company" gets underway. stuart: you heard me pose the question, taking the sweat from his brow down there in tennessee. this is the man, by the way, ladies and gentlemen, who gives us the prosperity of 1908's via ronald reagan. let me ask you the question. if we get a republican sweep in november, and republicans take control of the senate, do you believe that we'll have a stock market rally and a sharp improvement for the economy. >> yes i do. i think it already has been put into place. i think a lot of reasons why we

talked about, stuart, for the economy, for the marquette doing so well without the economy doing well is prospects for changes in the future. you missed louisiana, colorado, and michigan also in play as well, maybe even some other states. and senator king, i mean from maine, has said openly, that he is considering, opening his who he will caucus with in the next senate. there is chance republicans could pick up as many as 10 seats that. would be a huge plus for this country i think. stuart: it would change the political discussion. that's for sure. but would it change policy? >> not right away. stuart: not right away but would we have a shot getting some of the regulation taken away or certainly delayed in its implementation? would we have a shot building the pipeline and developing energy? >> sure. i think so. what, to me this reminds me of 1978, stuart. i've been to this barbecue

before. i think there is a huge political change coming in the united states. i think what happened in '79 and 80 in the united states with jimmy carter as president i think bodes well for this next two years. remember, we got capital-gains tax rate reduction. we got paul volcker, lots of other changes in the u.s. last two years. obama facing a republican senate and republican house would be, would be hard-pressed not to give in on a lot of these issues. i think he is a weakened president already and i think he would be much, much weaker next two years and we get a lot of changes you and i both really desperately want to see. stuart: real fast, did you once say on this program a republican sweep would give us 20,000 on the dow? was that you? >> i don't know if it was i but i think it will be a very high number. stuart: okay. >> i think at 20,000 on the dow is clearly within range in the next four or five years. and i'm very excited about the prospects of this country and this economy and especially as it pertains, stuart, to the

global economy. everyone thinks this stuff internationally is all just military and political. it's not. the u.s. is weak. that is why we have all the problems abroad. stuart: you know, you are the best guest to open up the show on a monday morning. th cool. >> thank you. stuart: please stay there because we want a lot more optimism from you the next block. stay there please, art. >> thank you very much, stuart. stuart: got to move on to the latest news from overseas. here is what we have. u.s. intends to supply arms to the kurds in northern iraq. us air strikes have helped kurdish forces reclaim two towns they have lost. tensions with russia easing a little? pro-russian separatist its reportedly begin supporting cease-fire. some reports suggest that russia has withdrawn some troops from the border. israel says new sees cease-fire with hamas is holding within gaza. a day after two sides agree to resume talks in cairo. fox news national security

analyst kt mcfarland joins us. late news in baghdad a new prime minister is nominated but maliki is holding on, moving troops to surround his office in the green zone. kt, that's -- >> that is foolish. stuart: not helping beating isis. >> why foolish to say we'll put all our eggs in that basket. we'll wait for the iraqi government to get together with all inclusive government and iraqi military that desserted before they will get those guys to go, we'll find isis. forget it. stuart: has the obama administration waiting for political solution in baghdad before going after isis? have they been doing that. >> yay. we don't want to arm the kurds because we're still hoping we'll have this iraqi government that will be so inclusive. forget it. iraq or, a year or two ago, that doesn't exist anymore. you have isis controlling the sunni parts of iraq. you have iran in effect controlling the baghdad parts of iraq. i mean iran's sock puppet and

the kurds. arm the kurds. let them dot fighting. stuart: you mention ad story to me not received much publicity. >> that's right. stuart: the kurdish consulate in erbil. >> right. stuart: a if i'm not mistaken, isis is holding turkish diplomats hostage. >> it has not made the news y is this important? because iraq share as border with turkey. what if iraq, isis share as border with turkey. what if isis says, you're next, turkey? that is nato member. that country pulls us into it. that is so important instead of trying to fight a third iraq war and lose this one too enable our allies in the region, give them what they need, give them military equipment, give them technical support, strategic bombing, intel. let them fight isis. why? because something new is happened in the middle east in the last nine months. the moderate sunni states have looked at isis and said, yikes, we could be next.

stuart: moderate sunni states being turkey, egypt, saudi arabia. >> saudi arabia, egypt, emirates, bahrain, jordan. they're looking and, for example, this, fighting in gaza, normally that fighting has a lot of arab countries saying terrible israel, terrible israel. they haven't. there has been deafening silence. they have not been critical of israel. why? because they realize they have more of existential threat from radical islam. stuart: so the two sides are lining up and they're very clearly defined. whose side are we on? >> we should encourage a coalition. stuart: but whose side are we on? >> which of these many fights? israel? stuart: are we lined up with jordan, saudi arabia, turkey all in alignment against bad guys whether hamas or isis? are we firmly taking a position? >> we should. stuart: but have we. >> we have not. we have the president still. trying to do this one, negotiating with hamas and israel trying to do that one, popping -- propping up the iraqi government. take a bigger picture look at this. the real problem is radical

islam. if we can take advantage of this moment and get all the sunni moderate states plus israel, plus united states, plus turkey on the same side, to say our biggest threats to all of us is radical islam and it's isis and islamic state which will butcher its way to the caliphate that wants to rule the world. they're happy to behead christians. they're happy to crucify others and execute anybody who gets in their way. stuart: company. t mcfarland, everyone. thank you very much indeed. clear-cut. i have clarity on the issue. thanks, kt. monday morning just about lunchtime, breakfast on the west coast. that pick puts the dow up to over 16,600. that is high of the session. s&p 50010 points higher. half a percentage gain. gold down a bit today, still right there at $1300 an ounce. this is the interesting market to me and that is interest rates, bond prices.

investors not venturing too far from the safe harbor for their is money. we're up one basis point. ignore that. 2.43 that is what you have to look at. 2.43% is the yield on 10-year treasury. that is very, very low. nicole, you got a big name that's moving. it's priceline, isn't it? >> that's right. take a look at the stock right now. priceline bookings for both hotels and air did so well in the latest quarter. the forward-looking numbers for the third quarter are growing as well. the stock is up 2 and a half% right now at $1313. this is hefty price for a stock up, 32 bucks. booking.com, kayak.com but we are, originally before the bell the shares were to the downside. that was on concern that the company is spending a lot, stuart. but the ceo says, listen, we need to spend in order to grow and gain market share, particularly in asia where

they're doing a lot of spending for the area in china but international bookings, certainly account for a lot for this company, over 80% of the numbers. 86% of total bookings are international. they continue to expand there so doing great. stuart: it is interesting question for these technology companies. do you plow all the money back into the business to expand it and grab market share around the world, or, do you take the money and give it to shareholders on the bottom line? companies like amazon and priceline are spending it. >> right. stuart: and not always does the stock react favorably. i'm digressing. sorry, monday morning. i'm blattering on here. it ising question. nicole, dow is still up around 50. we have strong words from janet yellen second-in-command. speaking at a conference in sweden, vice-chair stanley fischer said and i'm quoting directly, the global recovery has been disappointing. with few exceptions growth in the advanced economies has underperformed expectations.

in other words, art laffer, i know you're still there, we in america, we're not going to get much help with our economy here from those guys every there, are we? >> no we're not. it is not going to happen. we have to do the ones that dot change, not there stanley fischer is a completely correct. he is a fine man and he is saying straight out. we need to change our policies to get growth back on track. stuart: you think the rest of the world will do a little bit better when we get a republican senate and which start to do a a little bit better. is this totally political, art laffer. >> you can't do worse. i've been a democrat as much as i've been a republican. i'm a kennedy democrat. i'm a reagan republican. i voted for clinton twice. it is not partisan, stuart. it is economics. if you tax people who work and pay people who don't work, don't be surprised if you get a lot of people not working. we have the worst set of policies coming out of both w

and obama as we've had in a long, long time. just like it was before we took office in '81 with johnson, nixon, ford and carter. how can you get a larger group of bipartisan losers than those four? i mean they did all the worst things. it is economics. and economics is non-partisan. if you do it right, it works whether you're a democrat or a republican. if you do it wrong, it doesn't work whether you're a republican or democrat. it is economics, period. stuart: okay. if you're not a socialist by the age of 25, you've got no heart. if you're still a socialist after age of 25, you have got no head. you didn't say that. i think winston churchill did, is that correct. >> it could well be. it's a great quote. i love it. by the way i was a socialist at 25. i was too. stuart: i was too. i'm sorry if this is confession time. i have a confession to make. i was. that is the truth. i'm very sorry. >> me too. stuart: lay off the emails, viewers. >> i switched. stuart: oh, i saw the light you.

>> did too. you did too. stuart: tell you what happened to me. i spent 60 months in india which is a socialist con i my, nothing works efficiently or on time. i got on a plane and flew to hong kong. pure, free market capitalism. bingo. my eyes were opened. everything worked t was terrific transition. >> mine was in the white house from 1970, 1972. i was first chief economist at omb, the office 6 management and budget under goering shults. i saw how -- george schultz. i saw all the policies changed wage and price controls. i changed my view then. stuart: by 1978 when you wrote the prosperity plan for ronald reagan. you're a good man, art laffer. >> thank you, stuart. it's a pleasure. you're great. thank you, stuart. stuart: thank you, art. truth and tell or something? it is deadline day for the irs. federal judge demanding answers on lois lerner's missing e ills

ma. what happens if the -- emails. what happens if the irs refuses to meet deadline, refuses to respond, what happens? we have a lawyer on a that next. ♪ you make a great team.

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stuart: as you read on the screen, time is money. 30 seconds of all the other headlines for you. first off, golf looking for a new star appears may have found one. rory mcilroy won the pga championship, his second major win for the year. only the fourth player to win four majors before the age of 25. he joins, woods, nicklaus and bobby jones. a lot more on rory and his new position in golf and what he will do for golf coming up in the rest of the program. to amazon, stopping preorders for popular disney moves like captain america and "maleficient." no word on what disney and amazon are demanding. that is happening right now. last one, look at this. this is super moon. lit up the sky last night. the moon's closest distance to the earth, it was a full moon at

that. so it looked 12% bigger and 30% brighter than your regular full moon, super moon last night. it was great. oil and gas company, kinder morgan, the short way of describing what is happening here, it is consolidating. it is a $44 billion consolidation. investors love it. it is up 8%. 30 nine on kinder morgan this morning. big deal. for the irs it's a big deal. it is deadline day. a federal judge said hey, you at the irs, you tell me how you lost two years worth of emails and you tell me what you've done to get them back and you're going to tell me today, monday, august the 11th, 2014. jay sekulow is with us. the attorney representing some of the conservative groups who were allegedly targeted by the irs. forgive the shorthand there, jay, trying to make a complicated story understandable. i want to take this further. i want to, speculate with me, if you will for a second. the irs is so desperate to cover

up these emails, that they have come up with this pathetic excuse they were all simultaneously lost, all at once. i don't believe that. i think they're going to stonewall today. can you tell me, what you, you're a lawyer, what will you do if they stonewall and deny this deadline today, what happens? >> well, number one, think you're right, i think they are going to stonewall. i think they are going to denial. by the way not just lois lerner's e-mails, apparently almost everybody she sent the emails to. we're pressing ahead with civil litigation. we've asked the attorney general to appoint a special prosecutor. he has the discretion to do so but stuart, i don't think that is happening. stuart: no. >> so what this means in the litigation going on -- stuart: if the judge is not satisfied with the response from the irs today, what can that judge do? >> the judge can issue what is called an order to compel and that would be bringing in the witnesses to put before him what they have done to try to retrieve them, what they are compelled to do and why in fact

this happened. but there is interesting aspect to this, stuart. there are three cases pending right now. all of which have the missing email component. in two of the cases the judges asked for irs explanations. the irs gives an explanation. we tried to recover them. we doesn't do it. here is our technical experts jet the -- yet the inspector general says we still think we can get them which means the affidavit submitted by the irs may have well been incorrect under law. i think what you have is a situation right now just what is leaked. we know how damaging this is to the irs's case. so you can just imagine what is in the missing e-mails. american people are not being fooled. the judges are not being fooled either. stuart: i want to lay it down there, that these emails are the key to the whole ball of wax. >> yeah. stuart: these are the emails that link irs officials to the white house and to the campaign. if, in those emails there is any suggestion from the white house or the campaign, get out there and harass those conservatives, if there is any such suggestion,

that is a huge scandal. >> well, yes, but, stuart, remember this, there is already in part of this huge scandal is one email that did come out, shows the department of justice was colluding with lois lerner to manufacture criminal cases against groups like my clients. they used the word, piece together criminal cases based on false applications. so this, the irs-doj link is already there. that is why the doj should not be investigating themselves. the missing e-mails, you're correct, are the critical time period looks 150 visits by the irs commissioner to the white house, those are ones that are mysteriously missing. the fact of the matter in civil litigation, in lois lerner takes the fifth amendment, stuart, in a criminal case, can't be used against her, in a civil case it is deemed admission of every allegation we bring up. so that is another what i to get at this. there is multiple ways. stuart: what would you put on the odds of getting at those emails and finding out what was

in them before the november election, what is the odds? >> i wouldn't be betting in favor of it. i think they will do everything they can to prevent, stuart. they will appeal orders that come in. they do not want those emails released. don't want to find them. don't want to release them. stuart: jay, thank you very much indeed making all of this clear. we want clarity in complex situation. you got it for us. we appreciate it, jay. up next, two stores from social media. one, yahoo!'s twitter account hacked, tweeting outfalls information about ebola. the tweet was removed and damage was done, wasn't it? people dumping ice water on themselves in the name of charity, posting videos like this one. how much money actually gets raised for the cause when you do stuff like this? roll tape. ♪ >> here we go. whoa. ♪

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comcast business. built for business. speed generally, you are not like a huge technologies guide. stuart: you put put it all in like this. i cannot see a thing.

the leads that video. [laughter] stuart: we have a fair amount of fun. since it looked so awkward on you, i am not sure i would want to look awkward, to

beefing up the credibility. it is not believable. >> right. there is a lot of inaccurate reporting going on. whether or not there is a debate. people that are being treated for. they are improving. that is the good news. and that of very hard-working entities. they try to stay out front. it is increasingly, the biggest challenge in cyber security.

speak to the ice bucket challenge. it is an effort to raise money and awareness four als. facebook users challenging their friends to make a donation to a hail donation or dumping a bucket of water on their head. i do not know how many are actually donating any money. >> this is all about awareness. >> it is a really terrible disease. they are trying to raise awareness that young people can also be diagnosed with this.

you really hit the nail on the head. matt lauer. the today show. apple kennedy did it and challenged president obama. stuart: after the break, an update on iraq. christians still being targeted. father jonathan is next. ♪ [bell rings]

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stuart: not that. we went up a little bit more. the other story is that ten year treasury. what some call a disappointing

forecast. that stock is up nearly $40. tesla, there is another stock that is going up. it moved smartly higher in the last couple of weeks. another $12. a more serious subject. iraq. christians are being subject did. where is president obama? i do not believe he said a word about this thus far. father jonathan morris is with us. welcome to the program.

>> we have been watching isis. all of us. isis has been on the march. we have invested so much life. stuart: come on, father. >> i would like to think that there is a strategy of how to stop them. >> unfortunately, i do not think that there is. stopping genocide. stopping genocide in our national interest. stuart: why the president has said nothing.

>> we need a velocity of governance. we are in a very said state. stuart: he says nothing about the atrocities against christians. >> i do not want to pit one religion against another. >> they have been speaking out for weeks and weeks. just recently, pope francis pleaded international community protect these religious minorities. you do not just convince them with some nice words. stuart: no religious leader can say arm them and stop these

atrocities. >> as far as he can go when he says protect. >> the human heart, natural law could tell us that we have responsibilities. that is not my job. i think it is a good balance. this guy represents the pope and is going right into the center of iraq. stuart: you are a catholic priest. i want christianity to have a more muscular outward

appearance. stuart: standout for what we are and what we have done. not always turning the other cheek, if i may say that. >> a very serious subject. a great concern for our viewers. wildly popular. after the break, and award winning cameraman. he was attacked. we will not show you that. >> the biggest and most aggressive.

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♪ nicole: i am nicole petallides with your fox business. the dow jones industrial average of 60 points. the s&p up even more. almost a full percentage point.

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♪ stuart: john the iab. the apple executive. he reportedly bought a home in san francisco's billionaires row. lauren simonetti has more on this. >> it was originally listed for 25 million. it is a beautiful mansion. the ceilings are high and gorgeous. you can see the golden gate bridge. i have some fun information for you.

johnny, he got in a near fatal car crash. i am assuming he got a nice pay raise as a welcome back. stuart: one thing you did not do is tell us why you went from 25 million to 17 million. >> i am not sure exactly how he got it for 17. a few years ago, i am assuming the market was not as strong. i thought it would be more moderate. i will look into it for you.

this is probably one of the biggest programming weeks of the summer. we have one of the guys that makes it all happen. here is a guy that gets into the water. i know that is the shark. >> that is a tiger shark in hawaii. stuart: why is it that shark week, why is sharks so attract this? >> they are amazing predators. there is a prime or early fear factor. they can potentially eat you if

they want to. they are not really malicious. there is a morbid fascination. i had a fake tiger shark bite my friend. no blood, no foul. stuart: i would be absolutely terrified. that moment of sheer terror and panic. >> i am trying to stay then. i never want to break this rule. i try to be send out. super focused and calm. it is kind of an oxymoron.

stuart: where is the best location for filming the worst, the biggest, the nastiest? >> i would have to say south africa. and you know. sharks hunting and being real shark a shark's. stuart: jaws. >> i was born in 77. it came out that year before. people did not really know that sharks existed prior to jaws. i think that there is a lot of fascination. the fascination outweighs the fear. stuart: no comment.

no comment at all. thank you very much for joining us. hillary clinton calling out president obama. and insider joins us after this. ♪ it's monday. a brand new start. your chance to rise and shine. with centurylink as your trusted technology partner, you can do just that.

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♪ stuart: check the big board, please. we are still up. the ten year treasury, that is a good story. historically, that is variable. hillary clinton really took a jab at president obama saying his failure to act in syria led to isis in iraq. look at this. great nations need organizing principles and don't do stupid stuff is not an organizing principle." >> i would like to think -- well, i am not sure i am going to get back in.

stuart: how do you interpret that quote. >> i think that secretary clinton is making it very clear. making it very clear that she wants to distance herself as much as she possibly can. stuart: that was pretty much a flat out get away from me. >> pretty much. this was we need a strategy and he does not have one. what he has articulated is not enough. stuart: why now? >> obama's foreign-policy ratings in the 20s or teens. his overall rating at 40. she has to get as far away from him and his policies as possible. people do not do this kind of stuff by accident.

stuart: do you think that she has a lock on the nomination? >> the only question i have is if somebody similar decides to run. >> do think that she could mount a credible campaign? >> she is the candidate of the people for redistribution. stuart: do you think that that is the winning approach to the election? >> i remember back in 2007, i do not think many of us thought president obama would be an incredible challenger. stuart: excellent stuff. come and see us again. new at noon.

we explored the worry mcelroy. plus, herman cain. income inequality crusader for the next $240,000. the second hour begins in two minutes. ♪

♪ stuart: along comes through a mcelroy. he looks like he is a new tiger woods or jack nicholas. he has broken out of the pack. he has that star quality, two. he is sorting out his very young life. he is in the right place at the right time. woods has passed his best.

mcelroy is poised to take advantage of the vacuum that would left behind. it looks to me that he could rescue golf. i think he is a ball grabber. golf, were might take. not sure whether you heard me. does the "wall street journal" sports guy agree with me? can were read save golf?

>> i think he can save golf. i do not think he can do it alone. this is something of an issue with tiger woods also. no one who really was wise enough to take him on. in the same way that palmer and nicholas were dueling at one point. it does not just need one guy to win the tournament. we have been there, done that. someone about rory's age. rickie fowler. someone like that. stuart: we are trying to get the numbers, the ratings from last night. i thought that they should be pretty good.

the race went right down to pitch darkness. >> right. you never see that in a major championship. they are running out of light. stuart: mickelson was the foil last night. >> right. stuart: a young guy coming on strong. did we just get numbers? ratings of 36% from a year ago. those are the pga numbers? up by one third over last year. >> that is who you see when you have a competitive leaderboard. that is who you need to see. imagine what it would be like if you had two of the same guy.

they are pointing at each other. at some point, it would be good. they will really take on the next generation. stuart: forget for a second whether mcelroy wins consistently. does he have star quality? his persona. his look. is that attractive to make him the superstar? >> he has a bit of swagger. he canceled the wedding once the invitations had already gone out. my wife is still very angry with him. stuart: get out of here. >> he does that and then goes under this great role. the relationship was somehow screwing him up.

yes, he has a swag. stuart: doesn't matter he is not american? >> i do not think that it matters in this world. stuart: look at me. >> i do not think it really matters. greatness is greatness. it really did not matter to cristiano rinaldo that he was not american. stuart: i am told that they were the best ratings for the pga for the final day of the pga since 2009. of 36% from last year. last word on that. >> it is him in this competition stuart: okay. thank you for being with us. i think you are quite popular. you, too, could be a star on television. >> i need to work on my swagger.

[laughter] stuart: check the big board. it comes back a little bit. pretty much the same story with the s&p 500. here is a big name. you know it. it is a very big winner. it would be priceline. 3% up. this one single company. 11% on gender. the other story has been for some time. interest rates down, down, down. very low. 2.4%. bringing in larry loven from chicago. why are interest rates in

america and everywhere else sinking so fast? >> well, janet yellen keeps telling everybody what they want to do. in my opinion, they will see a change late in 2015. that puts a lot of pressure on those yields. stuart: when you say interest rates will not stop, you are talking about extremely short-term rates. that is what you are talking about; right? >> longer-term, i think it will be the same thing. with that being said, look at the fed funds.

that is extraordinary. stuart: mankind. that is a winner. nicole: i really enjoy advancements in medicine. you know, everybody often does the injections. this is an alternative. this is and handling the insulin. they will be 925. 150 million with $775 billion milestones. this is a freeze up. this is inhaled insulin. the first quarter of 2015.

why am i pointing out that it is the size of a whistle? back in 2005, pfizer came out with something similar. people were really not taking to it. they had to get tested for their lungs. we will see whether or not this takes off. stuart: 11%. thanks a lot. take a look at the share price of facebook, please. there is something going on. i just do not understand this. facebook has been messing around with that popular messaging service. users have to download a separate messaging app. i do not know what all of the fuss is about. you do this messaging thing on a

different app. so what. >> facebook users never liked change. facebook users do not like change. facebook is basically like a little feature in the online platform. now they are making everybody transfer over. it is a big deal. it is an extra step. it is so easy. people are not happy about it. this facebook app is not new by any means. it always has really good ratings. now, people are very cranky and very upset that they have to download it.

they are giving it really bad reviews. now it is just really interesting. stuart: no difference to the companies performance. >> they are adding new features. they are trying to make it better. stuart: amazon no longer taking pre-orders. this is really interesting. a bigger fight that amazon is having with e-books and publishing companies.

that makes more sense. 999. able to download more. that makes sense. we do not really know too much information yet. is this about the price of the dvd? e-book prices. >> similar in the fact that they are being a powerhouse. stuart: they are trying to call the shots. >> right. you could not get a presale of the lego movie. that hurt presales.

amazon -- they are trying to put their foot down. stuart: we are not sure they will get it there way or not. >> people can get those dvds elsewhere. amazon is such a giant. >> a federal judge issuing a key ruling against the ncaa. college athletes can be paid. that opens the door to paying athletes. big deal. it turns out he is getting paid big time for teaching one class at the university of california. more and more like reality

coming november. we will discuss that later in this hour. we will give arms. more u.s. airstrikes. question for lieutenant colonel oliver north. can we defeat ices? does he agree with k.t. mcfarland? >> that does not exist anymore. you now have ices controlling. then you have them doing the fighting. ♪

stuart: tesla keeps going up. by that thing. some people are. urging the fda to impose new rules. elizabeth macdonald is here on this. those two regulations, banning

them. what with that do? >> $2 bill now. it was zero a second ago. in 2009, no fruity flavored cigarettes, either. the sale of these cigarettes. way tougher than what the fda of post back in april. stuart: they want to ban internet sales. >> that is exactly right. in coming months, that fda will announce these new rules.

there would be no internet sales. no fruit flavored cigarettes. that is what the fda proposed. now they are coming down even harder. >> sorry, i do not get it. back to the crisis in iraq. that may be having a good effect. we have lieutenant colonel oliver north with us. can ices pb ten?

if we use our air power. >> that is what encouraged them. there is no point. finally is the word that i was given today. finally. taking on ices. i think it is long headed for the following reasons. it is a so-called islamic state.

the good news is ices. they are trying to hire. they are trying to higher mechanics to service those vehicles. over the long term, there is no doubt that they can defend their own territory. can they push them back further? >> we keep hearing that isis is very strong. they are comeback fighters. they are well equipped. there are not many of them. a counter attack. that is why i asked the

question. is it out of the question that they can get the ten pack? >> it lacks the ability. they have pushed back. those are places that were once in their territory. american troops. the death of 100 marines. >> 804 casualties. >> there certainly is not the iraq government today. they need to reopen that. stuart: okay.

colonel oliver north. we appreciate you telling it to us. >> it helps to have been there, done that. stuart: the ncaa. colleges will have to pay athletes. that opens the doors for more athlete conversation. what do you think about that? we have the story after this. ♪ it's monday.

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stuart: dean foods, biggest milk processor in america, withdrawn the positive forecast for the year because of volatile milk prices. it is down 6%. big ruling on friday, four college players and against the ncaa. it opens the door just a little for college players to be able to receive some money, getting paid for what they do. nobody was happier about the ruling than former sports marketing executive, sonny vacccaro, he manifester put michael jordan in a pair of

nikes. sonny, this is very narrow ruling f a college athlete likeness used in videogame they can get money for that, paid into the trust fund and the athlete gets the trust fund after graduation. think that is very narrow ruling. you like it because you think it might be expanded later. >> and i think it will be expanded, you're absolutely right, sir. it will be expanded, what she said, if you put a minimum number of dollars, 5,000, she didn't say there was maximum number, but also goes to the point of antitrust and the whole fight. they are employees. she is allocating pay, whether it is $5 or 5,000 or 50,000, they are now going to be reimbursed in the sense that it is their money. it was put in escrow so it is a trust fund. they don't use it until they're out of school but it is a pay. that is what the public is going to look at. all these years the ncaa stood behind this word called

amateurism had no meaning except what they interpreted it to mean, these kids are allowed to be paid. stuart: that is a breach of principal, sonny? that is reverse course on basic principal of college sports in america. that is the source of a great deal of controversy n this studio, we have two sides very clearly evident here. don't pay them. yes, pay them. it is un-american not to somebody who is making a lot of money for somebody else. do you stand on that side of the principal that it is un-american, that they should not get the money? >> in every phase of america, even people who have some loyalty to a what a college system is to be not gained to be, they have to be paid because you are entitled to earn what you're capable of earning. everything goes to the point of ability of a human being to do a job. these kids are basically being paid by a scholarship that the other side always says, well, that is enough. well you know what? if that is enough that comes to

$50,000 as other people willingly say or 10,000, 100,000, whatever the number is, but that is financial renumeration in another way. your parents don't have to pay. you don't have to get a loan. why do they substitute the word scholarship for paycheck? i have no idea. stuart: does this break open the whole basis of college sports at the moment. >> well, not at the moment. they will appeal. but what it should do for all of college sports for people who have a side issue with this, both sides of the equation, is the ncaa has been hard and fast in not wanting to understand where this game, these games have come from. when i first started, there wasn't even television. there wasn't a fox network and cbs paying for, you know, the thing. there wasn't that sort of renumeration. sometimes have changed. it is interesting that they can build a multibillion-dollar thing in indianapolis and call it headquarters. they started in one office room in sans city. my point is, money is now there

that was not there 50 years ago. the contracts, and you know, the all the networks, it is the biggest programing all the networks have, are sports. and half of the sports is only one nfl, one nba. there are all the different college teams. the difference is, it is programing, programing. that is what it is all about, ladies and gentlemen. stuart: i think it is fascinating, i very do. i'm very much in favor of paying them, you work, make the money, you get paid for it, that is my opinion. sonny, thank you very much indeed. we know what you're talking about. we appreciate that. >> hopefully i get to meet you guys in person some day. stuart: love to see you. >> thank you. stuart: dow industrials still on the upside. we have a modest gain. it is kind of slow trading. we're up 55. we're at 16, 609. leftist robert reich argues for

more equality, that what he wants. however revealed he is making one of thousands of dollars teaching one class at the university of cale fornash. the story after this. ♪ 3rd and 3. 58 seconds on the clock, what am i thinking about? foreign markets. asian debt that recognizes the shift in the global economy. you know, the kind that capitalizes on diversity across the credit spectrum and gets exposure to frontier and emerging markets. if you convert 4-quarter p/e of the s&p 500,

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stuart: charles schumer says, big bother may use activity trackers like fitbit to keep tabs on you. lauren has details. what is this about? >> he is calling it quote, a privacy nightmare. i'm reading from his press release right now. in caps it says, without customer knowledge fitbit bracelets and smartphone apps are tracking users movements and health data that could be sold to third parties. he wants a law on the books. he wants the ftc to require a mandatory opt out for consumers so your health information, your weight, how many hours a night you sleep, the number of steps you take, your blood pressure, this is not sold to third parties. think about it, when your doctor or personal trainer has this

information you trust them. you don't think they're going to sell it to somebody else. also, if they do or fitbit or fuel band, whatever these companies are, if they sell that information to a third party, that potential employer discriminate against you because they don't like certain aspects of your health and fitness regime. we reached out to fitbit on this story. they absolutely getting support of consent from the customer before tracking or selling this information. they don't think it should be more or or less. stuart: that is interesting. if they're in favor of getting your consent to up load it someplace else, that is fine with me. >> same here. stuart: i have no problem with that. >> the thing is the fine print. all the things you have to check up signing stuff online, we don't need to read the fine print. has to be more clear especially. stuart: well-said, lauren. thank you very much. robert reich, the former labor secretary served under president clinton. he is now a professor at

university of california berkley. look what he said about income inequality. here is the quote. the moral crisis of our age has nothing to do with get gay marriage or abortion, it is insider trading, obscene, ceo pay, wage theft from ordinary workers. wall street continued gambling addiction, corporate payoffs to friendly politicians and billionaire take over of our democracy. hold on one second please. riesch makes $240,000 a year for teaching one class at berkeley. okay? her man cain is with us. i'm sure he has something to say about this. herman, you're winding yourself up there, herman. hold on a second, before you launch? >> okay. stuart: he is a hypocrite. go. >> he is a hypocrite, period. to paraphrase the president. i was laughing, stuart, because of that list that he gave. he left out obscene professor

pay. $240,000 for one class? as they say in rock and roll, where do i get a gig like that. stuart: wait a second. wait a second. he is a professor of the public policy at berkeley and the course, the class, for which he is paid 240,000 del a year is on work and worth. seems to me, mr. rich reich, professor reich, he thinks politicians should set wages for political reasons as opposed to the market setting wages for, efficiency of the economy. that is what it seems to me. >> that is exactly right and that's where he is dead wrong. i pity the students that are in his class who are being brainwashed with this hogwash about how you achieve income equality in this country. the other thing about what he proposes, what he talks about is he's using erroneous information

an facts to try to promote this idea that the government should set these wages and that is not true. let me give you one example. this is a fact, stuart. over the last 40 years real wage growth has been flat-lined because of the policies of the federal reserve. it had nothing to do with greedy ceos, nothing to do with what companies wanted to do. it was all driven by the federal reserve trying to control unemployment with the faulty control of wage growth. therein lies the big problem. he is perpetuating more disinformation that anything else an feel for the kids stuck in his class. stuart: you know politics and you know the corporate world and you know, this whole concept of income inequality. is it, is it good social policy,

good economic policy, to attempt to eradicate inequality and move people more toward the middle, all people more towards the middle? is that good policy you think? >> that is terrible policy because it goes against our free market, on on thal, capitalistic principles that help this economy become the largest economy in the world. we represent 25% of the world's gdp. we have less than 4% of the world's population and the way we got there, stuart, was with the government not meddling in trying to set those parameters rather than the government being a part of that. every time you look back in history, when the government tries to regulate wages or income inequality, it fails. go back to the '40s, remember at end of world war ii when they

tried to regulate salaries and wages. it backfired? why? that is not the business that the government ought to be in. stuart: excellent last words there, herman. excellent last words, all good. come and see us again, please. we appreciate it. >> i would be happy to. the next time i will get all charged up way ahead of time, stuart. [laughter]. stuart: we love to see you wind it up, herman. it is all good. >> i enjoyed it, stuart, thank you. stuart: looks more and more likely the republicans will win the senate in november. economic upturn would after that? would it? we'll certainly pose the question in just a moment. ♪

>> with your fox business brief the of dow is up higher today but showing a nice gain of almost one-half of 1%. the nasdaq is the best of the bunch a gain of nearly one full percentage point. take a look at landor lakes and cisco systems they are

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stuart: here it is. 12:45 eastern the real "halftime report" is upon us. nicole petallides at exchange, keith fits in portland, oregon. liz macdonald right here. stephen moore in washington first of although. steve, i've got a headline in this morning's "washington post." republican takeover in the senate all but assured f the republicans sweep in november what happens to the market, what happens to the economy? is it a big plus, steve. >> thanks so much for putting me up after herman cain. that is like pitching after sandy koufax. look, first of all it is not a done deal the republicans will win the senate. one thing i learned in politics these things are all decided in the about the 20 days before the election, not now. so it is impossible to say. i things look good for republicans. if the election were tomorrow they would take the senate but

it isn't. it is in november. let's not forget, the republicans always, already control the house. if they have the senate, it will be a further blockade against what president obama wants to do. you know what? if republicans take the senate, we're looking at two more years of gridlock in washington. stuart: yes, but could we not slow down some of the regulation -- >> maybe. stuart: the regulation that the president put in? could we not probably get building of keystone pipeline of opening up more energy rye serves in america? those are positives, aren't they? >> of course they are. stuart: couldn't we get a better handle on government spending too? that is all positive. >> it is all positive. i agree with you 100% but you know you still need the president president's support on those things. the republicans will not have 67 votes to override presidential veto. i'm not saying it is not a positive thing. it's a positive thing if republicans take the senate but i wouldn't be too overjoyed by

it because the president has veto pen. he has shown no inclination, stuart, when in the last two or three or four years shown any inclination to compromise with republicans on keystone, corporate taxes on entitlement reform any haven't seen it. stuart: all right, moore. you don't have to throw such a wet blanket on to otherwise positive story. >> it's a positive story. it will be good. by the way, it will set up republicans nicely in 2016. i will say this. if, whether republicans take the senate or not in 2014, it will all matter very little if republicans do not win the white house back in 2016. that is everything. when it comes to the economy. stuart: with you on that one. steve, thank you very much. want to turn to keith. have global tensions translated into more market volatility? or, i want to put that the other way around. seems like there is a little lessening of the tension in some of the hot spots overseas and think that is what's created

upside move for the dow and stocks. what do you say to that? >> i would agree with that, stuart. the interesting thing about headlines like that, they reflect both our aspirations and our fears. to the extent they're dying down, getting more realistic behavior in places like ukraine and gaza, god forbid in iraq, that will weigh up on the marketplace. that is what is happening today. >> can i add something to that? what i've been hearing from, you have to say it, federal reserve vice chairman fan stanley fischer come out and talk about this, jury still out on the great recession and whether or not it had permanent damage and global recovery overall is disappointing. what does all this mean? fed policy. accommodative fed. that sun of the reasons -- stuart: i have a question for you, nicole, household name and it's a big winner. i don't think this is a house mold name, actually, kinder morgan? what is going on? >> talking about oil and production and basically

consolidation of several companies into one. $44 billion deal. when you look at the name and look at kinder morgan energy partners, kinder morgan management and el paso, look the 10%, 18%, 22%, huge move. three of these four names actually hitting new highs. jpmorgan says it is a great deal. will improve their growth outlook, dividend, tax rates, cost of capital going forward. stuart: investors just love it, i can tell. i really do have a household name and that would be priceline. liz, how much more money bill shatner make. >> that is a food point. this is a stock going like gangbusters despite posting soft third quarter earnings outlook, it did beat profit expectations. everyone's favorite ex-send i can trick great-uncle, william shatner in the catbird seat. wall street wants to know, when will it split? the only s&p 500 stock above

1,000. google, splitting, when will priceline? that what is stock market would like to know. stuart: i don't have an answer. vice-chair stanley fischer says the global recovery is disappointing. growth in the advanced economies has underperformed expectations. so much for pent-up demand i guess? >> well, yeah. so much for pent-up demand. talk about stating the obvious. i think the fed continues to be delusional. these guys are kidding themselves. looking at the numbers that reflect economy 100 years ago. they have sold middle america down the road. every central banker in the world is guilty of this right now. stuart: ouch. sold middle america down the road. they're all guilty. all right. thanks very much. everybody. that is it for today's "halftime report." thanks, everybody. more "varney" coming up for you next.

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realtors or to find homes. they're going to check on their neighbors hope prices. >> that's it. >> that is what a lot of visitors are doing. it is a big, big audience there. are questions whether anybody is going there toe look for realtors. stuart: we don't give you much time. you have clout. you dropped that stock 4% because you said that in "barron's" yesterday? >> we think it's a good point. stuart: obviously so. terex, did you like them or did you not? you said nice things about them. >> we like terex. they make big cranes. they're especially strong in shipping ports. they will see increased demand there because the panama canal being widened. stuart: does that make a big difference to shipping ports elsewhere? >> it does. the boats that go through the panama canal are twice as big as the old ones. when they get to the port they have twice as much stuff to unload. you need bigger cranes. >> i love that. insight is great. stuart: beats up on zillow, down it goes. helps terex and up it goes.

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>> religious leaders like pope francis and others have been speak out for weeks and weeks and not only saying help with humanitarian aid, but for example, just recently pope francis sent out a tweet that said, international community, protect these religious minorities. how do you protect against a terrorist? that is for politicians to decide but you just don't convince them with some nice words to stop killing and beheading and committing all sorts of atrocities. stuart: that was just part of our discussion with father jonathan morris earlier today regarding the atrocities committed against christians in the middle east. very interesting subject and you responded on that. we'll bring you more of your response tomorrow. right now, it is time for dierdre bolton. >> stuart, thank you very much.

s two big media companies in a dispute. miriam godfrey has latest why you can't order certain of disney's movies on disk on amazon. news and entertainment site buzzfeed is getting buzzier if you measure by dollars. jojo ling kent with more on andreessen horowitz's $50 million investment. commercial use of drones still years away. "wall street journal" has the reasons why u.s. and canadian regulators say so. as of right now you can't order or preorder rather disks of captain america, or angelina jolie's "maleficient" on amazon. miriam got freed, is with me, covers media on "wall street journal." tuna, hi, we're coming back to you in a minute. i want to get to meriam first. is this fight,