nick the market at its high of 20 points, thanks for being with us, we follow the latest in of the fight against isis all day. time for "varney and company". have a great show. stuart: the president takes the war against isis to the united nations, like the war on carbon, gets a very lukewarm reception. good morning. world leaders are skeptical about the president's bombing campaign in syria. they don't trust american military power. the president did not get much support from his audience today, barely a ripple of applause, zero response when he said isis must be degraded and ultimately destroyed of. late developments. the fbi warns bombing over there encourages terrorists to come here and reports that the khorasan group is planning attacks with tide to detect explosives in america. criticism, our bonds have destroyed buildings, broken

windows but not killed terrorists. this is a two war president, fighting isis and fighting coggan and gold, oil, stocks barely changed. "varney and company" is about to begin. ♪ stuart: two days into the air strikes against bases in syria and the market is taking a big yawn. the dow jones industrial average in the first hour-and-a-half of business this wednesday morning virtually unchanged, of 22 points holding at 17,000. you would think we would see some reaction in gold as a flight to safety in times of trouble, not happening. gold is down $1.80, $12.20 an ounce. the same is true for the price of oil, turmoil in the middle east, america is involved and the price of oil is down a little. we are off $0.20 to $91 a

barrel. lieutenant colonel oliver north joins us from d.c.. always a pleasure to have you with us. i am sure you watch the presentation to the u.n.. when he called for the muslim world to reject isis and reject al qaeda there was absolutely no response whatsoever from that audience. what do you make of that? >> underwhelming. his plan to get more allies for what i am calling operation arab face isn't working in gathering people around him. no standing ovation like president bush received when he went to the united nations to get them behind our effort even to go into iraq which was the terrible war we never should have fought according to this president. this has got to be something other than putting an arab face on the campaign against isis or decapitating a new terror group we have not heard much about until we bomb them two nights

ago. peter: when you called publicly for american ground troops, boot on the ground is the expression, that is what you think is necessary. before we get is that, how effective these think these airstrikes have been? there has been significant criticism we are just blowing out windows and destroying buildings and not killing terrorists. >> we may have killed some terrorists. we really don't know because the bomb damage assessment we were promised was going to come out yesterday didn't. we conducted according to the reports from the pentagon and i got it this morning they woke me up at 3:00 in the morning when the bell went off, we conducted two great big airstrikes on isis or excuse me, extremist vehicles in iraq and two more in syria. this is shot and -- know it is not. it is oh shucks. the problem with this is if we really intend to destroy isis this is not the way to go about

it. stuart: can you tell me who is paying for this? i know america is leading the bombing campaign. i know we have five relatively wealthy sunni arab states supporting us as part of the coalition. who is paying for this? are the arabs paying at all? >> we don't know because this question can't be answered yet. my guess is no one is paying except you, me and the rest of the american taxpayers. you are right comment at least saudi arabia can pay, jordan as you know is a basket case. they have absorbed almost a million and half refugees from this long civil war going on inside syria. bahrain has its own problems. the shiite majority country with the sunni government and lots of internal discord. cutter which is rich in natural gas has been supporting everybody else out there. the dynasty supporting radical

islamists like hamas and where is our nato ally turkey in all of this? stuart: the president did say again in his speech this morning there will be no. on the ground. that being the case how long is this going to go on for? you said yourself you can't kill isis with airpower alone. >> airpower is great. no one believes that more than a marine infantryman because having friendly air power overhead really works. the problem is air power alone has never freed a hostage, never captured an enemy combatants and to nazis to rain and rescue hostages and take prisoners requires rough men with rifles, boots on the ground. there are no coalition boots on the ground in syria. there weren't any yesterday, there is none today and will not be any more for many months to come. that is the problem. admiral kirby is bragging about the fact the we are really good

at training but training 5,000 free syrian army troops in saudi arabia over the next 12 months is mission impossible. by the way there are nearly 3 million syrian refugees in jordan, lebanon and turkey. how about recruiting some of them? so you have more than 5,000 year from now because no doubt isis is growing at an astronomical rate. they are rapidly heading towards in finnerty because they more than doubled in size in the last month. if you do the math they could be a 100,000 after 5,000 got back from saudi arabia. we to front war against assad and isis. stuart: i went your take on this. president obama stepping off marine one, saluting with a coffee cup in his hand. you are a military man. what is your response to that? >> here is what is going to happen. the marines are issuing an order requiring all marines to carry in their right pocket a paper

cup just in case they ever meet the commander in chief that if he salutes with one in his hand and marines will hold theirs up as well. stuart: sarcasm is a low form of which but i can tell by your shaking your head you don't approve, do you? >> i do not. it is unfortunately very disrespectful but just shows you where this man is coming from. this is the guy who repeatedly said u.s. navy corpsman were out there serving in the battlefields. stuart: colonel oliver north, appreciate it. much more on the president's two wars with ambassador john bolton. he joins us in the next hour. which war is the president focused on? isis or climate change. top of the hour coming. dr. keith ablow joins us to the the president's coffee cups saluda county couch as well. is the president aloof or should we give him a break? dr. keith ablow at 12:25 this

morning. boeing is planning for a future without fighter jets. it says it may stop building the faa 18 and 15 within the next five years because of weaker demand from uncle sam and from overseas. boeing stock holding at $127 a share. fraudulent transactions starting to pop up across the country after the home depot data breached. we have a lot more on that story 15 minutes from now. i was one of the victims of this. i will tell you the story later. $91 a share for home depot, but little this morning but will a security headache for home depot and other retailers, is that going to be good for apple pay? the new feature on v iphone 6? shares are lower. they have an apple paid feature on the apple iphone. is that an interesting option compared to your credit card? walmart getting ready to offer low-cost checking accounts, it tells you if you can't afford

something before you buy it. walmart stock is up nicely nearly 2% higher. a surge in new-home sales, 18% gain compared to the month before. new home sales only account for 10% of the overall housing market. let's go to nicole, looking at j. b. holmes. that is a more accurate indicator. nicole: the new home sales surged 18% existing home sales were weaker so it shows you the uncertainty of the housing market. sometimes great news sometimes bad news. this is an example of weak numbers here. new home sales are jumping. k. b. holmes down 12.7%. they did have smaller than expected increase in revenue in the latest quarter despite the fact there has been higher average selling prices for homes, you can see this stock to the downside. meantime you can see up arrows across the board. a lot of weakness. stuart: the news from the

housing market has not been positive this week. we are going to dive into the numbers later on the program and see how bad it is. not talking up positive housing market, we have housing reality check got 12 noon today. the top line numbers, the economy seems to be pretty well unemployment is down. the market, stock market record levels, dig a little deeper and you will see the middle class has not recovered period. is getting worse. it has been hurt the most. according to the commerce department median household income, 51,939 in 2013. that is down 8% since the recession. median income. in 2007, 108 million people working full time year round, 2013, 105 million. let's bring in died benson, a town hall political editor and fox news contributor. middle-class americans, you have

the top line numbers which kind of look good and can be spun quite positively but you dig down and america's middle-class is really hurting. is this the result of president obama's policies? >> part of it obviously. we have been spending ourselves into oblivion, bar when lots of money on stimulus packages that fail on almost every level they were sold, obamacare which the nonpartisan congressional budget office has said is really wreaking havoc on the labour market so there are some policy related issues here is that you can draw some sort of line between what the president is doing and not doing and congress as well to the state of the american middle-class but what strikes me about these stories about the middle class this morning, is this. between both political parties and how the american people are actually feeling because the white house will tell you they

will cherry pick the numbers and put together ray narrative and say the economy is recovering really well, we are turning that corner and things are pretty good and they can find certain statistics to back that up and republicans are saying is basically still a recession is not a depression, everything is absolutely horrible. the reality is somewhere in between and the american people are really just not impressed with this recovery. stuart: that is precisely, look at this study, from rutgers, it finds one in five americans laid off over the past five years, can't find a job. among the few who said they did find a job 46% of them came in, the job they got had a pay cut involved and 44% reported a drop in status. the jobs we are creating are not working for middle america. that is what you have been saying. >> median household income as you reported earlier is down, wages are stagnant, that is an

important statistic for average people staying at home and it is great that the unemployment rate has dropped by several points since the peak of unemployment after the crash but a lot of that is because the work force participation rate is at a 35 year low depending on the month which is artificially inflating that number making it look better than it actually is. i am no economist but i know historically when you have a deep trough typically what you see is a steep and roaring recovery after is that. we haven't seen that at all. we have seen a halting, uneven, frustrating recovery where a lot of americans are throwing up their hands. it is being spun. stuart: recoveries making nice progress, we are creating new jobs but middle america is hurting and nose, feels deep down, it is set near a recession situation. i am out of time. come back and see as soon.

>> thanks. stuart: construction of the first offshore wind farm in america about to begin. those not in my backyard liberals have been defeated on this one. i posed this question, however. is power generated from wind turbines offshore frankly flat out too expensive? we will deal with that next. 3rd and 3. 58 seconds on the clock, what am i thinking about? foreign markets. asian debt that recognizes

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stuart: you might think with all that is going on in the world the dow industrial average would be reacting significantly one way or the other. it is not. we are 1/3%, 50 points higher. we always keep a close eye on ali baba, the longest ipo ever. bouncing back a little today but well below the 9270 opening price, $87.60 now. yahoo! owns 16% of ali baba, yahoo! stock down 9% bouncing

back today. two updates on global warming, first, government scientists now say warmer sea temperatures on the west coast are result of weak winds, not global warming. that is the federal study. second item from the centers for disease control, warning that president obama's new climate change rules will make it harder to battle ebola in africa because government agencies like the cdc have to track and monitor any climate change related variables. that is a lot more red tape. stay and on climate change we bring in jim gordon with the wind project which is set to start construction next year. is promising to reduce carbon emissions related to global warming. welcome to the program. this is the wind form--the wind farm off of nantucket. the local subjected like crazy to building this but you got it through. >> we have been working on this

project for a dozen years. in the beginning people were resistant to change, didn't understand the project. it is really hard to see them when you are 13 miles from them but the important thing is the project is moving forward, we're in the midst of a big bank syndication. stuart: when you are building it starting next year. as i understand it, if i get electricity from a conventional coal-fired plant it costs nine.five cents per kilowatt hour, conventional coal. if i go to your windfarm or any offshore wind farm it is twenty.four cents per kilowatt hour more than double the price of coal. you wouldn't exist if this were an economically viable proposition. you wouldn't exist without subsidies and tax breaks. >> i would. if you look at new england the

electric companies filed for new rates. $0.16. stuart: they got to buy -- there is a mandate they have got to buy wind. >> utilities entered into our contract on an arm's length basis we have negotiation, they decided this project would deliver significant benefits. si stuart: they had to. there was a mandate that utilities must get x amount of their juice from wind or solar. >> there is a mandate in terms of getting renewable energy credits. they had a whole range of projects to choose from. they chose cape wind because it would produce power coincidence with the peak demand when it is needed and more importantly massachusetts is going to see 600 to 1,000 jobs. stuart: when you are not disputing the premise of my argument which is without subsidies and without mandates you would not be in business. >> i and telling you that right now power is going to be $0.16 a

kilowatt stock-market power. i'm given a 5-year contract to the utilities with the bundled price that includes a $0.06 renewable energy credit that includes transmission costs and includes the heads value against all dial fossil fuel prices so i am telling you kate wind is a significant bargain for massachusetts. stuart: kate winslet self get substantial tax breaks and subsidies. >> there is an investment tax credit for renewable energy projects, low income tax credits and historic read publication tax credits. we will take advantage of the tax benefits. stuart: all i am saying is that you are a creature of government subsidies and mandates and if it was just go get energy, the cheapest possible place you wouldn't be in the running. >> let me put it this way. i am a creature of the demands of massachusetts citizens that want to move to a more renewable

energy future. as we saw in new york this week with hundreds of thousands of people demonstrating in the street, renewable energy is something, an irreversible trend. stuart: at some point it should be put to the voters. are you prepared to pay more for the juice going into your house because of the threat of climate change and global warming, at some point of voters will pass judgment. >> in poll after poll in massachusetts the responders have said they would pay more money for renewable energy because they understand -- stuart: or do they get a subsidy? they get a subsidy. >> they don't get a subsidy. they pay their electors to build. this is a project that ultimately as the price of natural gas goes up, as the environmental compliance costs for burning coal and other fossil fuels go up renewable energy is going to be a

significant bargain for massachusetts. stuart: cape wind power, thank you for joining us. the soda companies promise to cut calories to fight obesity, if you go to that press release it isn't what it seems. we will tell you all about it next. she inspires you.

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hi, are we still on for tomorrow? tomorrow. quick look at the weather. nice day, beautiful tomorrow. tomorrow is full of promise. we can come back tomorrrow. and we promise to keep it that way. driven to preserve the environment, csx moves a ton of freight nearly 450 miles on one gallon of fuel. what a day. can't wait til tomorrow. know that chasing performance and fewer choices in retirement. know that proper allocation could help increase returns so you can enjoy that second home sooner. know the right financial planning can help you save for college and retirement. know where you stand with pnc total insight. a new investing and banking experience with personalized guidance and online tools. visit a branch, call or go online today.

date to date good it rolled -- the stock goes up 7%. the biggest u.s. banking ipo in a decade. nicely done. no impact on their stock from the story we are about to give you. slightly higher today. the health bandwagon. that would be of low calories. they will say you will cut the calories by 20% in the next 10 years. how are they going to do that? the go to guest on big brands. please welcome back -- i think

it is a pretty smart marketing move. not by cutting calories and coke and pepsi. have some water instead. >> it is a little, i don't want to call it shady, but more symbolic than significant. coke actually is their share of business. 75%, i believe. they need to continue to promote their soda business. what will they do to address the soda push? stuart: it makes you think, okay, drink some soda and do cut your calorie count. it sounds like that. >> i think customers are pretty savvy. i think they understand the situation. i think they will be able to see

past it. the reason why coke and pepsi is doing this -- consumer demand is in that direction. people already making those choices. coke and pepsi are kind of hoping them along. causing a lot of headaches for a lot of people. i do not think that they have recovered from the hack of late last year. let's see if anyone can recover from this. i get a call yesterday afternoon. someone has hacked into personal details. they have a fake credit card in my name. all my kids are now without credit cards around the country. who takes the hit?

the home depots and the targets of the world? the credit card company? >> i think it is a little bit of both. there is very little that these companies do. they are looking at alternative payments. stuart: target did not fully recover. apple, the new iphone six, you can do that i pay. that is much more secure. >> right. they are using the technology that is far removed from the retailer. it adds verification. it is a great move. i do not know how many people live there.

stuart: neil cavuto has an interview with bob nardelli tonight. big money and mobile gambling. you can expect to make a lot of money with aly baba. a company that is doing just that. ♪ [ male announcer ] what if a small company became big business overnight? ♪ like, really big... then expanded? ♪ or their new product tanked? ♪ or not? what if they embrace new technology instead? ♪ imagine a company's future with the future of trading. company profile. a research tool on thinkorswim. from td ameritrade.

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stuart: we are at war in syria. several airstrikes were focused on an al qaeda affiliated group. the pentagon group was plotting a tax at home. military officials to expect the whole conflict to last months, if not years. >> isys is growing at an astronomical rate. they have more than doubled in size. they could be at 100,000. a two front war between assad and isis. we have the dow down a half percentage point. after the price of gold, down $3

right now. 128 team. as for oil, 91.41. look at aly baba now. four trading days into the post- ipo. joining us now is a man that has online games featured on aly baba. close to $1 million a day. three games. come on in. kevin, i think our viewers will know a lot of the games you put out there. what they do not know is that these three games are bringing you about $360 million worth of profit per year. how do you do that with a free game? >> hi, stuart. thank you for having me on. we allow users to come in and

download our game and start playing for free. it is different than going to a best buy or walmart. we try to say, hey, let's build a game. if they are really into the game, they're our virtual items that they can buy for a premium price. stuart: you hook them with the free and then you stick them with a price. >> we have the majority of our players that continue playing for free. we are very happy to service the players. they make up the community that makes the game so vibrant. stuart: we are sharing some video of the games as they appear on the screen. >> one of our games that we have

is called the hobbit kingdoms of middle earth. a partnership that we did with warner bros. stuart: did you create these games? >> i have time for your association with aly baba. what is going on there? >> they have been making games for the western market. we started a course with the north american market. we have been very successful in bringing our business to europe. we have almost no revenue from asia. china's mobile gaming market this year will overtake the u.s. market.

a huge growth market. we have been looking at the market and thinking about how we bring our games to this market. we just announced a new game that we are doing with marvell. stuart: you have to get into that market. it is a big one. we will watch this company very closely. >> you, the viewer have observed opposition to legal weed. you do not like it. after the break. something you may not think of when it comes to marijuana. that would be helping our veterans. ♪

nicole: i am nicole petallides with your fox business brief. of half a percent right now. we are watching library and apple this week. the stock is higher. of 3.9%. it is priced aggressively. trying to woo the customers

away. here is a look at bed bath and beyond. it is up 7% today. revenue and more. more fox business coming up. ♪ hable. you lower handicaps... and raise hopes. and you...rent from national. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price. (pro) nice drive. (vo) well played, business pro. well played. go national. go like a pro. to build something smarter. ♪ some come here to build something stronger.

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stuart: just look at the stock of tech mirror. sorry. the fda has approved limited use of its ebola treatment. it is a canadian -based biotech commodity. the stock is up about 20% in the last few days. that's getting free cannabis and used products. this happened in denver. this has nothing to do with what you are doing there in denver. and lots lot of people and our audience do not like legal marijuana. you are giving legal marijuana

to vets with ptsd. you have some opposition from our viewers. tell me about a vet that has done well. >> there are many, any soldiers that do well. most of the veterans that we help tell us that cannabis is the only thing that helps them with ptsd. stuart: how do you know that they are not just enjoying getting high. >> i am sure that there are some that utilize cannabis for that purpose. we focus on the men and women that we know are getting help. we also hear from their families. not just the veterans

themselves. their family has to live the nightmare with them. we have been doing this for over a year now. they have told us they cannot believe the change. tell me, how many have you treated, if that is the right word, how do you treat them? how many have you helped. >> we have helped hundreds. last saturday in denver we gave away over $60,000 cannabis infused products. we just launched a new program called save 8000 that's which will allow us to give veterans a

twice a day dose of cannabis for life or as long as they need it. i know there are a lot of critics out there. a lot of naysayers. their standard argument is there is no scientific evidence to support the fact that there is chronic pain, cancer or any other conditions. i think that maybe their time may be better spent asking the government, asking president obama and attorney general holder to take cannabis off the schedule one substance list so reacher can be done. it is not just thousands of veterans telling us that cannabis helps them.

i would hope they would join us. stuart: you say you gave away $60,000 worth of product. where does it come from? most of the money is donated to us. most of it is donated. stuart: roger martin, we are not critical, we just want more information on this issue. >> thank you for the opportunity. stuart: one doctor losing three quarters of a million dollars a year. he will close his practice because of obamacare.

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who have already enrolled in the only medicare supplement insurance plans endorsed by aarp, an organization serving the needs of people 50 and over for generations. remember, all medicare supplement insurance plans help cover what medicare doesn't pay. and could save you in out-of-pocket medical costs. call now to request your free decision guide. and learn more about the kinds of plans that will be here for you now -- and down the road. i have a lifetime of experience. so i know how important that is. >> we have a news update for you on obamacare. the federal government spent $3.000000000. not sure where a lot about money went. why? lousy accounting.

i want to bring in a doctor. he is a plastic surgeon. he announced this week he is closing his practice because of obamacare. you were forced to write off three quarters of a million dollars annually. >> that is correct. >> i reimbursed them from obamacare. it is even worse than obamacare. >> we think of plastic surgery as a facelift or something like that. i take it that is not what you are doing.

>> well, pretty much the full gamut of things that can be done. it is all but dried up because of obamacare. the monthly raise is lower. it has gone up many many times. patients are not doing it like did surgeries anymore. stuart: you are not being paid for the services you are providing. >> that is correct. stuart: how long have you been in business? >> this is my 39th year. >> thank you very much for joining us today.

thank you very much. we are very sorry to hear that you are out of this line of business. it is roughly a half a percentage point higher. >> i wanted to talk about what we are seeing here. we saw the stock rocket hit session lows. we gained momentum. we are about 10 points, nine-point, off of our highs for the day. we have seen a majority of stocks. you are seeing a lot of the names that we follow. go pro, yelp, linkedin. all of those are some hot stocks to watch during the next hour.

we have some exciting stocks to watch. >> it is something we have been following. energy overall has been really weak. they have been hovering near lows. exxon and chevron are the big lagers in the dow. >> the reason i ask is when you have a flareup in the middle east, america is bombing someone in the middle east. there goes the price of oil. there goes the price of gold. oil is down about $91 a barrel. it is just the exact opposite.

>> you are absolutely right. yesterday morning, immediately following the airstrikes, we did see gold get a pop. you can see now, as you noted, it is to the downside. stuart: united states treasuries, i think. they are going up. we had the explorations. this week is usually a losing week on wall street. five of the last 26 years, this has been a losing week. stuart: we are up 85. nicole, thank you very much, indeed. all that negative news this week. plus, doctor ablow puts president obama's coffee cup

salute on the couch. it is just two minutes away. ♪ can you start tomorrow?

yes sir. alright. let's share the news tomorrow. today we failrly busy. tomorrow we're booked solid. we close on the house tomorrow. i want one of these opened up. because tomorow we go live... it's a day full of promise. and often, that day arrives by train. big day today? even bigger one tomorrow. when csx trains move forward, so does the rest of the economy. csx. how tomorrow moves. know that chasing performance and fewer choices in retirement. know that proper allocation could help increase returns so you can enjoy that second home sooner. know the right financial planning can help you save for college and retirement. know where you stand with pnc total insight. a new investing and banking experience with personalized guidance and online tools. visit a branch, call or go online today.

stuart: theory is a disconnect here. the president tells us everything is fine. new jobs, better health care, steady recovery. different story on the ground. the census department says middle america use in deep financial trouble, incomes are falling, wages dead flat and if you want to work 40 hours for a five day week, the luck. there are nearly 3 million fewer full-time jobs now than there were six years ago. look at your home. that is the biggest single investment most people ever make. the post-crash recovery is in retreat. your home sales, few were mortgage applications. this is not a picture of prosperity. it is a decline of the american dream. six weeks to the elections.

♪ stuart: here's the housing indicator. a 7% drop, made less money, fewer homes. it was an 18% surge in new-home sales in august. jason is the housing guy and you are not bullish on the housing market at all. >> monday we had other data coming out, we're getting mixed reviews. stuart: why is it not important? >> it is less than 10% of the home's stock. stuart: small fraction of housing. they were actually down. >> the down 2% which is a big drop. economists predicted a higher number and increase in existing home sales. stuart: i went out there and

said the recovery from the crash in housing has stalled and gone into retreat. >> i think you are correct. we have job growth that is not really robust, wages that are stagnant and that is where people buy homes, with jobs, wages that are growing and we don't have policies in place to increase job growth. stuart: what about mortgage applications. that is a good signal how many people want to get out and buy. >> mortgage applications were down and interest rates of creep up a little bit. stuart: they are near historic lows. can i get a 30 year fixed-rate mortgage for 4%? >> you can get it a little over a 4. all that free money. still people are not buying. that is what is worrying me because it is like going into for example bloomingdale's and have 60 to 70% sale and no one is buying. stuart: i got the following number, this is a poll that 60%

of millennials believe owning a home is central to the american dream. millennials are 20 somethings. they seem to be saying they want to get into the american dream. they want to buy a home of their own but they are not. >> they are not. the affordability problem is an issue and they're not buying homes and that is why existing home sales were so bad. first-time home buyers are not buying and the investor community, mom-and-pop investors pull back. we had a housing market propped up by overseas investors, chinese, russian, billionaires' and millionaires and we have a bifurcation of the market, new home sales numbers went up 18% in the northeast and west coast but the middle of the country the majority of the housing market not doing well. stuart: when i was a young man i bought my first house in san francisco. the mortgage rate was over 12%. i did it because i thought that

was the american dream. you put your money into housing it would grow. best investment you would never make. what has changed? >> young people today live in cities and there's a lot of start up companies and they won the mobility, don't want to be tied to a mortgage and they saw what happened in 2008. their parents, relatives lost their homes, they are not as bullish as you were. stuart: i youngsters telling me that times really have changed, young people in their 20s no longer think first and foremost of getting a house, getting into the market? >> not the american dream anymore. they're very scared of what happened in 2008 and the bubble burst. there's a lot of stuff going on overseas. as young people we are watching isis, israel, iraq, syria. in 1978. stuart: when i was buying the first house was ayatollah khamenei in iran holding hostages, war all over the

place. that is not change. >> but there is a lot -- you talked about the black swan event, looking at china, there's a housing bubble, a credit bubble, there are a lot of reasons to be pessimists. stuart: i don't think it is overseas stuff. it is the problem for america's middle-class, prosperity is gone. wage growth is gone. incomes are falling. the great american middle class no longer in a position to take advantage of the american dream. >> the middle class is getting eaten away by the millionaires and billionaires, a study came out recently that we had 54 new minted millionaires in the u.s. and 106 of them live in new york city. the middle-class is going away and you have the lower class and the higher class and that is a problem in this country. stuart: jason has become an inequality by preaching a leftist politics. >> absolutely not. you have me all wrong. i am saying the policies are

pushing the wealthy and getting rid of the middle class. stuart: good stuff, thanks for joining us. stocks higher after the president's speech. modestly higher, they started to rise an hour ago. we're 93 points up 1/2%. as for gold not much movement, still down $3. as for oil not much movement. we are at $91 a barrel of $0.12. look at the ten year treasury yields that could be something of a flight -- note is not. i thought was a flight to safety which would push prices up and yields down. not so. we have prices down and yields up this morning. go figure. back to president obama, warning about the dangers of climate change, promising action and then the threat of a racist. the president calling for the muslim world to fight isis and al qaeda. former ambassador to the un john bolton is here. which do you think is the president's biggest concern? where does his hard line in the

fight, the fight against kohl, climate change or against faces? >> stopping the rise of the oceans is where his heart is. that speech today was unbelievable. it was the most abstract address i have ever heard from the president and that is saying something lose the fight against isis which many people thought would be the centerpiece of this address to the general assembly to rally the broader coalition among 193 members of the u.n. just a few paragraphs have we into the speech, it was much more about multilateralism and negotiation and understanding and things like that and a lot less about the hard reality on the ground. stuart: he called for the muslim world to reject isis and to reject al qaeda and its ideology and there was jeff reese silence from the audience. not a single applause. >> the best part of the president's speech was the extent to which he spoke about the threat of islamic extremism.

the first time he addressed at length but it was stunning the lack of reaction from the audience, when george w. bush used to speak at the un he called it visiting a wax museum, that was the reaction he got, brought the wax museum back from barack obama and that was stunning too. stuart: this fight is not going to be over in the next few months. he is a wartime president rest of his term. >> he does but he's doing his best to get out of it. that speech had precious little for egypt and other arab countries that haven't come forward from turkey and our european allies to convince them on the global stage the opportunity everybody in the world could watch that speech at great wang said he would not make the case. stuart: what has changed? there were arabs soldier boots on the grounds when america got rid of the invasion of kuwait by saddam hussein? >> was the first day of creation two days ago when five arab countries worked with us in

these strikes against isis. in the first gulf war saudi arabia was up parking lot for 500,000 american service members, that was a big commitment, a really big commitment. we did have egyptian troops, we had syrian troops in that coalition. so arabs will fight other arabs and extremists. it is not an act of creation to put together the coalition he got so far. stuart: don't they trust president obama? >> that was another missed opportunity in the speech. many european nations including our ally great britain which has not committed this campaign, wants some assurance of the president and determination, resolution, to see it through to the end, the end he states, the destruction of vices, the didn't hear it in the speech, they are

nervous about committing themselves when they think american standing next to the might decide at some point i am tired of this, i am out of here. stuart: where do the american people stand? i think they may approve of what the president is doing? no americans dying and fighting. >> i don't think the. stunning:the wall street journal showed two thirds of the american people support the president's objective of destroying gneisses and the same number, the steps he outlined will not succeed. stuart: does it follow that americans would support the marine corps marching up on isis? >> it takes presidential leadership to do that. public opinion polls, when it comes to national security, public opinion is the dependent variable that relies on the leadership of the president to say here is the threat we americans face, let's get on with it. people respond to that, listen to the case the president makes, the president isn't making the case of the is saying i will not put. on the ground every there. americans to out. stuart: that is what he did say. thank you very much. big name, you know it, bed, bath

and beyond is a winner today. you got to explain this one. nicole: stock is up 7%. why are they doing so well? revenue, shoppers in stores, shoppers on line, great news for bed, bath and beyond, they came out with numbers that beat those 3. despite putting out promotions, coupons, discounts, sometimes it hurts the margins and that was not what happened. it brought in more shoppers in stores and online which they spent a lot on and it helped their numbers overall. stuart: has grown as a winner. >> number one on the s number 2 is has grown not because of the deal they partnered with disney and has row will do all the frozen merchandise and that is huge for has bro. it is a big law, mattel was at a new low.

as girl was soaring on this deal and this was great news, change the reins and give global rights in japan as well. characters like cinderella, beauty and the beast, little mermaid get into that so that is great news. fresen merchandise topping $130. stuart: $125 million just like that. quick check of the big board, nice gain, 85 points higher, that is 1/2 of 1%. 71 is the score. dr. keith ablow on this video. president obama saluting marines using a coffee cup. is the president disconnected or does he simply not care? and the food police are back at it, this time soda companies promising to cut calories but below the surface of what they are saying is that all that it is cracked up to be? two stories for grover norquist. the middle class squeeze, markets are higher, and

employment lower, for the average person it feels like a recession. we will ask about his trip to burning man, the alternative lifestyle festival in the middle of the deficit. what was he doing there? a good story for us. walmart getting into the banking business. open a check account and because it is walmart, you know it is going to be cheap. guys! you're not gonna believe this! watch this. sam always gives you the good news in person, bad news in email. good news -- fedex has flat rate shipping. it's called fedex one rate. and it's affordable. sounds great. [ cell phone typing ] [ typing continues ] [ whoosh ] [ cell phones buzz, chirp ] and we have to work the weekend. great. more good news -- it's friday!

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stuart: check of the soda companies, all of them are up today, marginally so, the stock price not affected by the story we're about to bring to you. and 20% from 2,025. they are not doing it by lowering the calorie count in subtle but by selling water, another low-calorie drinks. two people be put into this, susan e. lee, president and ceo of the american beverage association and dr. wexler, ceo of the alliance for health degeneration. ladies and gentlemen, welcome to the program. good to have you with us. we are not going to cut the calories, coke or pepsi or dr

pepper. and replace the. >> lower calorie drinks, water and traditional great stuff. stuart: i am fully behind this. i want to be clear what you are doing. hour delays, lower portions but rounds of coke or whatever it is. given the same number of calories. >> lots of new products too. stuart: low-calorie drinks, you push them as opposed to the soda. >> or soda in smaller portions that line up the shells. >> you have been to the gym. stuart: when you approve of this. >> is great for good nutrition and better health for children and their families, reducing

calories consumes sugar, sweet and beverages. stuart: is the coke a day bad for you? a coke at day is bad for you? i know who you are sitting next to. >> we don't think in such simplistic turns. stuart: that is what everyone of our viewers is thinking, they think in those terms. they know there is an anti soda machine going on in this country and they want to know how much is good or bad. and we have to get the 7 gerri: under control. and sweets and beverages are one strategy, and people need to moderate the caloric intake. stuart: this accompanies just replace this weiner they got with something that has no calories? could they do it? >> we have lots of choices out

there already like that. we have those choices, we have got flavored water, sports drinks, all with different amounts of calories. you pick what is right for you. there will be a calory awareness component of this where we will put calorie labels on fountains, coolers and vending machines so when you go up you can decide that i workout today, did i have a day in the office. >> nothing like pulling purchase information. and people go to a website before they make such decisions, when you see it in front of them, that makes the choice. stuart: is it that if i drink a coca-cola before breakfast every day? can you make that value judgment? would you make that judgment. would you have two change in the afternoon? how much soda do you think is legit for a guy like me?

>> i would have to know a lot more about you. stuart: 160 pounds. and relatively high cholesterol. triglycerides not too bad. >> this obesity epidemic is not about you. it is about millions. we have millions and millions of children being raised in an environment in which it is too easy to get access to too many calories and disincentives for being physically active. stuart: the only serious comment is we have an obesity crisis. clearly we have got it. however i don't think it is all the result of calories in soda. we have a level of exercise, games played at school, recreation time outdoors doing stuff. a lot of factors in this. >> i totally agree. this is a challenge we get every

time we make an announcement, progress and chipping away at it people say is that alone -- why hasn't that solve the obesity epidemic. is a complex issue but that doesn't mean we don't do anything, we take multiple steps, and make a contribution that a piece of the puzzle, this is an important piece of the puzzle and companies should be commended for taking this important step forward. stuart: should you choose to answer it, would you stop people buying soda with food stamps? >> i don't think we should make any value judgments about any segment of the american population. everybody should have a choice and i feel that as an american. stuart: both of you, thank you for joining us. we appreciate it. up next, dr. keith ablow, president obama's coffee cup salute to. here is the video, tearing up the internet. it has gone viral. the doctor at stake is next and

we will ask about environmentalists. climate change activism, is it a religion. listen to this. >> i believe the radical fringes of the environmental movement have stolen the flag from judeo-christian ethic of protecting creation, being a steward of god's creation and instead they have emptied out all that interpersonal ethics in god, man, god, one and ethics and religion and said this is our new god. "hello. you can go ahead and put your bag right here."

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stuart: the biggest of big-name scotland google, it's a give chair eric schmitt joined maria bartiroma on "the opening bell" talking about keeping your personal data safe. >> the revelations of ed snowden showed us at least exceeded the initial mandate and google has aggressively protected itself. we now use encryption for data both at rest and in all the connections between the computers so your information is the safest it could ever be on google servers. stuart: apple's chief tim cook took a shot at google and face book. he said apple doesn't monetize its customers's information. facebook and google do. they sell it to advertisers.

dr. keith ablow is here. get your take on this one. president obama comes down the marine one steps with a coffee cup in his right hand, he salutes the marines with a coffee cup in hand. welcome back. your reaction to that police. >> here is my reaction. i will speak psychologically. as an american obviously it is outlandish and disappointing but as a psychiatrist we may see these things unfolding, these episodes or anecdotes wherein the president seems to be at war not just with our enemies but at war with himself because after all this is a new nick -- and newcomer, the president, to the notion of patriotism, that america sometimes has to leave and go first and change the world for the better. don't be surprised if while prosecuting a war he is also sometimes tipping his hand and showing that he is ambivalent about military matters,

ambivalent about the nation and i have said this before. the president had to be pushed to take this action and -- against isis. and his heart is still up for grabs. stuart: when you see it as a subconscious slip? >> i see it as a president at war still with the idea that america sometimes has to be the force that changes the world in the direction of the good. remember it is still the same guy who told us how bad we were, what a terrible example for the world we were, how we had to apologize to everyone, how we had brought bad things upon ourselves. now he is learning perhaps, maybe, that that is not at all true. the kissel can't salute the right way. stuart: that videos across the internet. what is the meaning of it? that is it and you got it.

subconscious slipped. thank you, not bad. climate change, global warming very much in the headlines. i put it to you, global warming activism is becoming more and more like a religion these days. i think it is being taught as a religion in schools. you can worship the creation in the schools but you cannot worship the creator. what do you say? >> let me take a shot at this. there's something similar going on here. the people i telling human beings americans are vulnerable to is this because we have the president that we do and he is a wartime president, we will give him our respect. we are vulnerable saying we are bad so the people who preach climate change as the end the world are saying to everybody every cavett you have you got to inspected. you ruined the wholetmosphere with these horrible activities of yours rather than saying we think as human beings we are all

lined with god, we are a creation of god and so if for some reason the climate happens to be shifting, our ingenuity powered by the very kinds of industries we have been fortunate enough to develop will solve the problem because we are looking hundred 1000's of years down the road and bias and we will have the answer read it won't be to put your trash in the blue receptacle. stuart: that is why you are popular on this program. >> like sally field, you like me? that is good. i am glad. you the come back next week. stuart: thanks very much, dr. keith ablow. america bombs isis in syria but the stock market kind of yawning about it. defense stocks are way up so should you still buy them? where should you put your money? that is next. can you start tomorrow?

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zero heartburn. (agent) i'll walk you guys through every step. there are a lot of buyers for a house like yours. (husband) that's good to know. . stuart: president obama addressing the u.n. earlier today, calling for the muslim world to fight isis, fight al qaeda, fight radical islamists. here's what ambassador john bolton said about the president's speech. >> once some assurance of the president's determination, his resolution, commitment to see it through to the end, the end he himself states, the destruction of isis. they didn't hear it in this

speech, they haven't heard it so far. they're nervous about committing themselves when they think that the americans standing next to them might decide i'm tired of this. i'm out of here. stuart: now this. we got it just in from the ap citing a u.s. watchdog. a french hostage has reportedly been beheaded by terrorists in algeria. no word from the white house or pentagon on this. they are referring questions to the french government. that's from the ap. french hostage beheaded as was threatened two days ago. according to the ap, it's happened. check of the big board, up 78 points. half a percent higher for the dow jones industrial average, and now time for the sector report. trey, shah in new york, trey, the first question on commodities. no reaction from oil and gold after all of the airstrikes in syria. why not? >> indeed, oil and gold are dominated by the dollar story.

let's start from the basic premise that markets are interrelated. one thing affects another. cause and effect. if the general idea is that janet yellen is going to be raising rates in the future, that firms up the dollar. the firmer the dollar, the firmer weak and crude oil prices get. i would temper that bullishness on the dollar a little bit. let's not forget something, we have such a big fiscal deficit, every time the fed raises rates by 1%, that increases your fiscal deficit by 180 billion dollars. we only have two trillion in tax revenue. every time rates go up 1%. that's another 10% added on the fiscal deficit. you've been scrolling across the bottom of the screen about goldman sachs cutting china -- growth forecasts on china. we see what's going on in europe, not a lot going on there. the idea that janet yellen is going to be superaggressive about raising rates is right in the head wind of what i see as not a super, robust global

economy. i'm going to temper my, say, attitude on how high she can raise rates, which means i'm going to temper my bearishness on gold and crude oil. stuart: and nothing is going on in the markets right now. defense stocks, shah, a good run this year, what do you do now, buy or what? >> they are fully priced. up 10% as a sector while the s&p up 4%. and as of friday, general dynamics, lockheed and raytheon all hit all-time highs. they are pretty much fully priced. may be time to take profits on them. stuart: i hear you. take a look the the biggest coal producers, straight down all of them. peabody down 65%. archcoal an 89% drop. alpha natural resources down 91%. walter energy down 95%. all right, you say this is time

to -- if you got coal stocks left, are you getting out of them or buying on the extremely low levels? >> i'm not taking dips down here. the water is way too cold. a little further to go even though they are rock bottom at the end of the tank. part of the reason some of it may be a bit of overregulation, i don't think it's the economic cause. gas is cheap, north american oil is abundant and the economics of coal is overpriced and i don't think it's going to be competitive in the next decade. stuart: if our viewers wanted to play natural gas, what would be your stock pick? >> i like kinder morgan. the kinder morgue an incorporated is rolling up the kinder morgue an energy partners, kinder morgan management and pipeline. that should be $140 billion enterprise value company, and i think the prospects for dividends are tremendous, they're promising 10% growth in

the next 15 perhaps years. that's an incredible amount it's going to come out of bucket about 5% yield, and i think it's going to go a lot higher. that's the play. stuart: 5% dividend ain't bad. tres, your reaction. >> coal, the story out of china. clearly we talked about how goldman sachs is lowering growth for china. that's why coal acts so abysmal. as far as natural gas, i agree with owning that particular stock, look at the limited partnerships. there are good limited partnerships where you're owning a group of wells, things like that. there's a lot of good ones out there. if you do your homework, i like the idea of owning productive assets. that's gade one in my mind. stuart: let's talk about alibaba, shah galani, are you going to buy any alibaba? are you buying? >> i didn't buy any on friday. they started out of the gate a little too hot. and monday's action and

yesterday actions scared me it sold off so rapidly. i thought it would hold. i was hoping it would hold. am i a buyer? yes. stuart: what's the point it get in? >> i like to see i think it's going to trade 85, possibly could break 80. i would be all over it. i want to acquire and hold it and get more of it. it's going to be the go to stock for the next decade. stuart: thank you for joining us on the sector report. appreciate it. grover norquist on two topics, the middle class squeeze, why the average person isn't doing well in the recovery, and for grover, he's going to smile in a minute. the burning manifest val. what was he doing there? he did attend, by the way. norquist explains next.

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that's a gain of half of 1%. the s&p 500 is up 8. the nasdaq is up 27, and the s&p sitting at 1990. jpmorgan came out and talked about the banks. turns out that they prefer ubs, they prefer european banks, they think morgan stanley has run up since 2012 in restructuring, it's done a great job. that's the upside with limited and picking ubs. ubs gaining and morgan stanley pulling back. mcdonald's, jpmorgan raising, but does see potential going forward. and starbucks plans to take full ownership of the japanese operations, and that will bring them more money and more stores, up 1.25%.

. stuart: trouble for america's middle class, if you look purely at the top line numbers, unemployment is down, and the stock market's at record levels. however, most people just don't feel the benefits. according to the commerce department, median household income, 51.9 in 2013. that is down 8% since the recession. look at this. 108 million full-time jobs in 07 down to 105 million full-time jobs in 2013. here is grover norquist. hi, grover. let's suppose by a miracle we

got lower corporate tax rates and lower individual tax rates, would that end quickly the shrinking of the middle class? >> i think it would be a big step in the right direction. when reagan did is exactly that. cut taxes, cut marginal tax rates. we saw strong economic growth about 20 million people got hired over the years. today, if we've grown with the strength of reagan's recovery rather than the weakness of obama's recovery, there would be 12 million more americans at work today. stuart: yeah. >> that's the cost of raising taxes rather than lowering them. that's what's hurting the economy and those unemployment numbers that you mentioned, they're only better because more people are leaving the job force. stuart: but let's suppose that we did lower personal income tax rates and lower corporate tax rates. the initial beneficiaries would be corporations and relatively wealthy individuals, they would

take a chunk of the benefits do that. you would be demagogued to death by the left. it's a giveaway for the rich. that's a powerful political line, grover. >> it's certainly been used over time. the challenge is more and more americans have 401(k)s, iras, have defined contribution pensions, so they are directly benefitting from a stronger stock market, if your pension is in a defined contribution rather than defined benefit. yes the left says every tax cut is just for the rich. they cut the top marginal tax rate in kansas is for people who make more than $30,000 and the republicans are attacking the liberals who brought taxes down for every single person in kansas and attack it as a giveaway to the rich. it doesn't need to be attached to reality. stuart: do you think we'll get it, though? if the republicans sweep the

senate and the republicans get to the white house in 16, then presumably we would geter tax rates? >> absolutely. look, if we get a republican house, senate and government, the republicans in the house of representatives have four times voted for the ryan budget plan, which in outlined form explains we take the top rate to 25, the corporate rate to 25. go full expensing, have a territorial tax system. these would pass in a heart beat if obama wasn't playing the politics of envy and division, he gave a speech about not dividing people along sectarian lines and comes to the united states and divides people. i like his speeches to the u.n. better than speeches to the united states. stuart: what were you doing at burning man? a lot of buzz about you going there, whats oft direct alternative, the exact opposite of davos? >> what they do at burning man,

it started with 20 people who got together and it's now 70,000. it is a good-sized small city that comes together for a week, people from all over the planet and people from many different countries and states. there are very few rules. it's actually what i would have called spontaneous order, people do whatever they want to do. stay out of roads. don't punch anybody else. it's great fun, an arts festival. there's a lot of music. i gave a series of talk, lecture series to all sorts of people. stuart: grover, is it true there is no money, that it's all trading. you want a bottle of water, you trade for it? >> not so much trading as you bring it yourself. the only thing you can buy for money there is ice, and there's a coffee shop. one coffee shop for 70,000 people. big coffee shop, but you bring your own stuff, camp setup shop, 20 or 10 or more people

can get together and pool resources, you bring the water, i'll bring the food. i'll do the cooking. >> is it a free market kind of place? >> free market in the following sense, nobody tells you what to do. the number of rules are very limited. the state of nevada, it's up in northern nevada, they have a few rules, and the federal government has a few rules but that's about it, and it's really a great experience, people get together. it's not woodstock where people forgot to bring their own water and food and the national guard and local cops and the farmers helped a bunch of hippies get through things. people plan ahead of time. they bring their own stuff. they bring their own water, they dress proper for the desert, warm during the day and can't get cool at night. it's great fun, come next year. stuart: were you at woodstock? were you? >> no, i was not at woodstock. i'm a little too young for

that. i watched the movie and talked to people who were. they had real problems. it wasn't planning and wasn't participatory in the tame way burning man is. people went to watch somebody else before. stuart: gotta go. maybe i will see you next year. >> it will be fun. stuart: go to walmart, you can get anything, get your oil changed, do grocery shopping, fill a prescription. now you got to be able to work a bank account. details next. (vo) rush hour around here

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. stuart: would you bank with walmart? lauren simonetti is here to tell us whether she would and what they're doing. i remember they tried to get a federal charter to be a bank, walmart bank, they failed. >> they failed. the traditional bank said absolutely not. it's doing everything they can to provide them with some sort of banking. stuart: this is go bank within a walmart store, it's a real bank. >> a real bank, they teamed up with green dot, the prepaid card company. they have go bank at the start of next month, anybody with an id at least 18 years old can sign up in minutes and have a checking account.

this is a mobile checking account. no minimum balance, no overdraft fees. citicharges $34 in overdraft. no bounced check fees. citi charges for that. maybe weak credit and doesn't have access to traditional banking. stuart: that's right. low income people, maybe not good credit, who would normally sometime go to the peay payday loans around the corner and get charged. >> they have fortune-teller, if you cannot afford what you are about to buy, they'll tell you, and they use the most nontraditional bank language there is. i wrote one of the quotes down because i loved it. it will pop up saying, remember the time you won the lottery? i don't either. meaning put the purchase down, you can't afford that, don't buy it. they are almost turning

customers away. stuart: the end of next month, i walk into walmart, id in hand, you get a checking account. you have to give social security, other than id and social security, you are in. >> there's a starter kit that costs $2.95, and $8.95 monthly fee which you can get out of if you have enough money in the account. that's 100 bucks a year, half of what you pay for traditional banks. stuart: more varney in just a moment.

sfx: opening chimes sfx: ambient park noise, crane engine, music begins. we asked people a question, how much money do you have in your pocket right now? i have $40, $53, $21, do you think the money in your pocket could make an impact on something as big as your retirement? not a chance. i don't think so. it's hard to imagine how something so small

can help with something so big. but if you start putting that towards your retirement every week and let it grow over time, for twenty to thirty years, that retirement challenge sfx: crowd cheering might not seem so big after all. ♪ . stuart: we may see these things unfolding, these episodes or anecdotes written the president seems to be at war not just with our enemies but at war with himself, because after all, this is a newcomer, the president, to the notion of patriotism, that america sometimes has to lead and go first, and change the world for the better. stuart: in case you were

wondering that was dr. keith ablow's take on the president's coffee cup salute. my time's up, here's deirdre bolton. >> stuart, thank you very much. here the alternative investment stories we're following for you. one of the world's largest bond funds facing sec probe. at issue, whether or not pimco, artificially boosted the returns of popular fund, one aimed at small investors. dartmouth and the university of pennsylvania are beating harvard, why endowment is the worst performing in the ivy league right now. from endowments to pensions, the cio of new mexico retirement association why, its strategy including investing in hedge funds is working. speaking of hedge funds, the five month fight for the takeover of allergan is one of the most contentious battles. bill ackman says he will sue allergan if it is,quires another company. our activist expert david benoit is here, he's