ninety minutes into the trading session. s&p, nasdaq and russell 2000 have all gone negative. time for party and company. today, david asman is in for stuart. >> here is the big storr. the election wave is a big -@reality. they had nothing to do with the democrats catastrophic defeat. more attention to the folks that did not vote than the ones who did. exactly what voters do not like. will moderate democrats worry

about their own future? continue to support a lame-duck president? stocks do not seem to mind too much. they are in the green. "varney and company" is just about to begin. ♪ >> to everyone who voted, i want you to know i hear you. to the two thirds that chose not to participate yesterddy, i hear you to. >> president obama seeming to deflect the blame. hh was ssnging a very different to during the campaign. >> michelle is pretty happy about that.

make no mistake, these policies are on the ballot. >> charlie gasparino is here. >> even if people did not vote, they did not vote because they were not enthusiastic enough to vote. they do not like congress. i do not think it is good news for the president. the people who were active in this campaign gave a resounding no. >> it was not about my policy. >> you and i have been talking about this for a couple of days. >> he had a chance of doing a lot of good things and probably getting hillary clinton elect did. he does not have to reverse his

agenda. get rid of that medical advice tax. it will make this economy grow. that is -- the point made, the realization is community organizing. collectivism. it is embodied in president obama. >> -- >> when i was listening, he said both parties are appealing to compromise.

i heard that out of mitch mcconnell. i did not hear that out of it set the tone so negative. >> mcconnell said something very important. there is only one democrat who matters and that is the president. >> i do not think that that is the most important thing. he was ready to deal. >> he did not come out and say we will shut down the government. he did not go out there and say we will tear down obamacare. he said we will work to make

things better. president obama did not come out and say that. >> again, it takes two to tango. >> my opinion right now -- he should get some. sometimes having some bourbon works. nobody will take apart what he started. it is impossible. the smart thing to do would be to preserve and. if he goes the other way, forget about a landslide now. hillary clinton will not be

president. >> joon boehner and mitch mcconnell. here are just a few of their goals that they laid out today. build a pipeline, higher more vets, lower the national debt and appeal obamacare. >> maybe it is a right of passage when you assume the mantle of leadership. i think that they are doing all of this stuff out there. they are setting themselves up for failure. i think what they should do is play the long game. see what he comes out with and work with him. this became -- he is very toxic. >> they also played a wonderful ground game, by the way.

let me just ask about democrats here. take care a lot about their personal future. if they are worried about a lame-duck president, might they go with republicans to override some of the president vetoes? >> possibly. the democrat party just played real politics here. they have pressures on the left. the guy from west virginia, he is a moderate. is it possible that he may switch to republican? he may lose. >> even if he does not go republican, he may vote as republican. all right. great piece.

charlie gasparino's piece on the elections. we are back in record territory. three dow stocks hitting new highs today. let's look at the s&p 500. a new all-time high as well. it has come down a little bit. and to all oil. down again. we thought maybe it settled. not so. all of about one and a half% right now. gas still falling. about 1 penny per gallon per day. the national average is $2.95. wow. the cheapest gas in the u.s. is still at that phillips stationed in texas.

who needs cheap gas when you drive a tesla? last quarter they set a record for deliveries. a lot of analysts expected a loss. that stock is up about five and a half% right now. microsoft hitting a new high. $48.50. he has a little bit of microsoft saved away for his retirement. shares are now 48.45. whole foods, i am a winner today as well as other stock winners. a big win for whole foods. >> that is a big move. 11% to the upside. they had great profit numbers

that continue to rise. they have also been cutting numbers on perishable items and such. it is not cheap. you can see that the group is doing very well. it is bringing up the other names. doing really great. tryinn to build some loyalty as well. >> of course-- i am a little biased. let's stay on your money. we have been talking a lot about a market rally. if things and average 21% rally. joining us now from tampa.

harry, you are still sticking with your gloomy forecasts. do you still say dow 6000 by 2016? >> yes. yes, i do, david. it is hugely up with a republican congress. forget all about. we have the greatest bubble created by the government. they are going to crash. this recent rally is hitting 17,500. we have a broader trend i have been talking about on this show for over a year now. i think we arr probably seeing the top right here. >> if money goes out of stocks, it has to go somewhere. i just do not see anywhere else it can go to get a return. >> that is why this market has been going up.

we have been saying that germany will keep disappointing. china's growth will be fourr5% by the end of last year. car sales are peaking riggt now. cars will fall off the cliff like housing did. >> i kind of want to agree with you. you know, here is he thing. the prophets in the u.s. are pretty good. they are on the rise. >> they are always good. >> you are suggesting that we are somehow heading for a massive recession. >> the demographics in germany look worse than japan. >> there is not a single economist that i have spoke to.

not one. that is the only tting that makes your thing work. >> on the contrary, i do not listen to people that have never had sex and run a business. >> good point. go ahead, harry. i understand that you are a contrary in. usually there is a pool of contraries. you seem to be the only one. >> they see inflation. hyperinflation. >> that is true. all right. dow 6000 by 2016. by the end of 2016. >> to think that 2016 is a good

year? >> i do not think we will get through this year without a mini crash. 2015 looks to me to be probabby tte worst year we will see you for a while. it is hard to tell exactly how it plays out. you cannot fight the bubble in you cannot fight germany going down like japan. >> thank you very much. tax reform front and center after the election. the deal being discussed actually backfired. a middle-class revolt. grover norquist on that whole subject of tax reform. that is coming up next. double local hi, are sll ofor tomorrow?

tomorrow. quick look at the weher. ni day, beauful tomo.

an ce backomorrrow. omise. and we promise to keep it that way. driveno preserve t an ce baenvironment,omise. csx moves a ton of freight arly 450 miles . on one gn of fuel. what aay.n't it tilomo so i can reach ally bank 24/7, but there are no branches? 's just'm a little reluctant. so a's ong withally bank 24/7, buttryingewhings?branches? try a new way to bank, whereo brches equals grearates. >> the market is not perffoming. sales come in better than expect it. noodles and company doing

better. fedex union and pacific and landstar. the house of representatives. after the 2008 election. after tuesday's election, wow. this was a middle-class revolt. a tax revolt. grover norquist joining us. i do not think that the president is going to get the message. >> no. he is not listening. he did not really change much after he got whacked in 2010. that has not shifted. people talk about tax reform.

they are not even on the same page or the same planet. >> one things that republicans and democrats could agree on is a corporate tax increase. the middle-class voters, they want something for them. they do not want to see another break for the rich guys. they want something for themselves. >> they are seen talking only about the corporate income tax. they are job creating.

>> they are worried about the money in their pocket. >> simply reduce taxes across the board. this is exactly what obama does not want to do. it would be healthy to have that conversation. >> what would be wrong with them agreeing to just a corporate tax cut? why would that be a problem? that is a job creator. we have very weak job creation. very high-end and very low end. >> outside of washington, d.c.,

everyone agrees that the corporate rate should be down. they have added something. >> if they deal with, barring anything crazy, why should they not just jump for it? >> if he is willing to do thatt you may just have a deal. that is not where he has been for six years. some people have a fantasy that maybe the president ill be reasonable. why would he start now? >> bringing all of that cash back to america. >> that would be good for business. it would be populous. it would flow back to the united

states. all sorts of good stuff would go on. i think that would be a wonderful thing to put on the president desk. versions, he is not telling the truth. he will never fix our problems. >> i have argued with some of those white house economists. >> they thought that an imaginary $800 billion could be borrowed frrm the chinese. how about their real $2 trillion that does not have to be stolen from anybody. >> thank you very much. president obama, as usual, was late for his news conference. we will reveal the winner after the break. first, this from last night's country music awards. a really fun evening.

take a look. >> this song goes out to a feisty little nurse in maine that is probably riding her bike right now. >> quarantines. quarantines. quarantines. don't ride your bike. ♪ there are twreasons whi ed kp.

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>> they make the backup generators. fewer than usual power outages means less money coming in. they could have used global warming. shares also add a new low. down 36% today. governor sarah palin made anotter outstanding appearance on the show yesterday. >> balls to the wall opposite of what the american people want. he will continue with his amnesty push that americans do not want. he will continue to fight any kind of an amendment. what has happened to me in the last six years, that begins your skin. you think this is just a feedback?

no, this is thick skin. it is growing all the time. >> we posted that save men on our facebook and twitter pages. you go, sarah palin. keep standing up for americans. obama has no respect for our election process. he will do what he wants. blame the republicans for not working with him. thank you all for your comments. we ask you to guess what time the president would start speaking yesterday. he is habitually late. we had a little fun with it. we had tons of guesses. take a look. 2:57 p.m. eastern time.

2:56 p.m. he is from williamstown new jersey. since stuart is not here today, we will make sure she gets on when he is here. we get his take on the economic% reality. that is coming next. >> it gave me a second chance at life. that's okay. we will give yoo a second chance. ♪

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>> check the third board. we are back in record territory. three dow stocks hitting highs. gas is still falling. about one pennies per day. president obama and mitch mcconnell have pledged to work together going forward. will the president still really work with republicans?

>> the president says he plans to issue some kind of a executive order that would limit or temporarily halt the deportations of potentially millions of undocumented, illegal immigrants. republicans say that would not be a good way to kick things off >> i think the president choosing to do a lot of things unilaterally on immigration with the a big mistake. an issue most of our members want to address. legislatively. it is like waving a red flag in front of a ball. if you guys don't do what i want, i will do it on my own. >> on the other hand, david, he also said that the election results renewed their commitment to appeal obamacare.

the president said it is a nonstarter for him. >> not exactly a good way to begin. a new battle cry to the left. the headline sound nice. are these a result of the president's policies or in spite of the president's policies? senator tim scott is on the phone with us. congratulations on your win. let me just ask you what the left is now claiming. it is not the president's policies that voters reject it, but the color of his skin. do you think that that will fly at all? >> by policies. people are voting for my policies or against my policies.

people reject it his policies. when you are living in middle america, if you are living in poverty, that outlook has been bleak. think about it. we have also seen money that has sent money to the stock markets. not creating jobs. we have also seen obamacare, tax and spend and have more fees on small businesses to the tune of nearly $1 trillion. we have short term funding. only in congress. that is not a recipe for long-term. >> senator, you are absolutely right. now, he is saying that it was not his policies that the voters voted on.

i wonder if he will take up the charge? maybe in a more discreet way. it is absurd to say that. you become the first senator elected in the south. black senator elected in the house since the civil war and yet you are a republican. >> david, there is no doubt. i am not sure how many black voters there are in utah. look in texas. new lieutenant governor of maryland. a blue state. then you add me on top of that. look at louisiana where the voters have been very happy with the success of charter schools in louisiana. for south carolina's governor.

a fabulous job of answering the question. the answer in south carolina is unequivocally, yes. >> by the way, senatorial, it is not only the left wing. the mainstream media also cannot seem to get off the racecar. a tremendous thiik three in utah. let me just play a clip and get your reactioo. >> this had nothing to do with raae. they are not interested in dividing americans based on race and gender. i was not elected because of the color of my skin. i was not elected because of the color of my gender. >> is it possible that we can

now very the racecar? >> it created a divide among folks in north carolina based on race. they were all full. the lowest common denominator. we have to work on things that are optimistic and looking into the future. i have an opportunity agenda. skills in the workforce. the physic principle will actually move america forward. it gives everyone annopportunity to achieve the american dream. we have all said consistently, our race is about the future. >> senator tim scott.

really historic win in south carolina foo you. thank you so much for coming on. best of luck for you. sounds ambitious, but i think >> pushing president obama. fracking, coal, all on the agenda. that is all coming up next..3 ♪

♪

nicole: i am nicole petallides with your fox business brief. another day. another record here on wall street. 17,519. the s&p 500 clocked in a record as well. the nasdaq up fractionally. some of the names on the dow that hit all-time highs include nike, travelers and united health. the index up 20% this year. southwest airlines and fedex are hitting highs. kate spade shares have been on the rise. doing very well in north america. amc, the revenue jumped over 30%. much more "varney & company." ♪

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asiadebt that recognizesthe shi. u know, the kind that capitalizes on diversity acss the credit spectrum and ge exposure to frontier if you convert 4-quarter p/e d eofhe s&p 500,ts. its s yield is doing a lot better... if y've had to be your inve, mae it's time r y mellon, a different kind of wealth maner ...and bla swa are unpredtable. >> big names you know leaving the s&p 500. whole foods of about 5%. fracking is an economic boom that needs to be capitalized upon. quinn called a halt. all drilling in the state. jeff flock is joining us live in illinois.

>> the wind has changed. that refinery back there. they would love to be refining illinois brood, but they commit. a legislative committee meeting today. one day after the guy says economic boom could be coming. how big of a boom could it be? take a look at the numbers. 47,000 jobs. $9 trillion worth of economic impact. this is a state that needs revenue. 47,000 more people. that raises some tax revenue right there. >> absolutely. jeff flock. good to see you. then there is called.

will cool make a comeback? >> we certainly hope so. the president said yesterday that he plans to sign legislation that works for all americans. we need a national conversation. when you stop and consider how cool is used to provide power in 45 states, according to the u.s. chamber of commerre, it is the most affordable, reliable energy on the planet. we have a wealth of it. we have lots more. >> let's talk is -- let's talk about the president. he does not like it. he has the epa. the epa is under executive control. how do you deal with that?

how does congress that the epa from doing what the president wants? >> the president will find out where he soon. we tried multiple times to stop. many of which have no scientific basis. i think, now that we have a majority leader from kentucky, which is a heavy coal state, and the speaker oo he house from ohio which is also a bit coal producing state, i think you will see a new day and how congress deals with it. >> you have the power. are you suggesting that you would find a way to defund the epa? >> we will do whatever we need to do to do what is right by thh american people. >> does that include the funding that epa?

>> what we will do is develop a strategy. who knows what the president we will see if we really hear him say what he means. >> if you put on his desk a pill that can defund, you know he will defund that bill. supporters?nough democratic have you done the number crunching? >> much of the legislation that -@we have already passed, stop e war on cold. i do believe. >> is it vetoed?

>> we can suspect that the president will veto. i do not know if we can deal with a hypothetical. we now have control of the senate. are they going to be willing to continue to saddle up ith this president's war on cold? i am not sure we can count on that. i think we may find some help. >> interesting. a lot of work for the republicans. in. >> you either love it or you hate it. now mcdonald revealing exactly

how it makes that sandwich. is that good or not? that is next. >> we have a boneless pork which is the main ingredient. >> this is a lot different than a picture i saw on twitter. ♪ ur customeoufinancing. your goa, our technology.nics. introding syncony finaial, bringing neaning to the wd panership. banking. loyal. analytics. nchry nancial. enagage withs.

feedback take a look at shares of big donald's. up markedly. store sales have been hit hard. the one saving grace for mcdonald's could be the return of the mc rib. she can barely look at the thhngs let alone eat it. i have never had one. i am told i am missing a great sandwich. there is a mc rib locator. right now they have been spotted. mcdonald's says starting on monday they started putting the mc rib and 75 of its u.s. stores. the new campaign -- there is an old expression.

nobody wants to see how sausage is made. is this the same with the mc rib? >> we will show you a picture of a frozen patty. this picture was so popular. people said i will not look at that. there is the video now. this is what goes into a mc rib. it is real pork. then we freeze it and hape it. it was invented by the executive chef of mcdonald's. >> former mayor bloomberg and the chief would hate this. over the past three weeks,

mcdonald stock has been going up. is it their relationship or is it just coincidental? >> mc rib remains to be seen. it is making people eat that. >> it seems to be working. it is the way food is made. >> i think that goes for many other restaurants and fast food restaurants as well. mcdonald's is fighting the big battles. >> 500 calories, you say. i think i can deal with that.

thank you very much. president obama does not sound like a man who wants to compromise. his economic pooicies are why they lost so baa in the midterms. the second hour is two minutes% away. stay tuned. ♪ cme grp can help you nate sks and capture oprtunities. we enable u to rea gl markets and drive forward with broader possibities. cme group: w thworld advances.

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nick hurt his necc. connell: the ellction was a middle-class revolt. the vast ajority of americans see everybody in something nick set them. and green energy guys have billions in stimulus money and wall street and corporations, what did a middle-class get? less money in their pocket and obama care. who will deliver for them. all they want is a strong

economy and gooo jobs even if it takes a political revolution. ♪ let's check the big board, down briefly earlier this session. it is up now, solidly in record territory, not outlandish ties. nike travelers and united health each hit a new highs yesterday as well. the s&p in record territory but just barely so. on 2 oil t is down again. looked like it was coming off the bottom, 20% of this year. pants and national gallon is $2.20. market share gains getting whole

food profits of boost. is leading the s&p up solidly over 10% all morning. from a fox exit polll45% of voters say the economy was the most import tissue our country is facing today but that is not what we are hearing from the left. they are saying our economy is just great. yes is cheap, unemployment is low, stock market is booming and it is all thanks to president obama but here's the reality. gas is cheap because we are ramping up domestic oil production. unemployment is down. the participation rate is a generational lows. most of the jobs that were created are low paying entry-level positions. the easy money printing policies for that one. dan henninger air from awa street journal editorial page is here for more on this one. the president said yesterday voters did this because washington d.c. wasn't working. they want that to work well to which you say? >> washington d.c. may not be

working but what really isn't working is the u.s. economy. it is not working as you said for middle-class voters and lower middle class voters. the party of economic despair always loses, always loses. despair and desolation is what is felt by many voters in this country. we have had less interest low growth rates in this country for five straight years. historic growth rate in the united states 3.3%. it has been 2% at best across five years. dave: in 2012 the economy didn't look great and the president won reelection. >> he won reelection, had great turnout among blacks and young people. black turnout was down this time and you know what the black unemployment rate is for young blacks? 24%. it is like that across this period. for blacks generally it is 11%, plus the general rate. why should they show up and vote for democrats?

blue collar workers, obama's policies locked in keystone, shutdown power plants, these are the jobs young unionized workers could expect to normally have. those have been taken away and -- dave: a lot of them are living at home. as nice as if it is to have a 20 something-year-old living at home for parents and kids, they want independence and are not getting it. >> middle-class people making money off the stock market send their kids to school for four years, worked hard and either don't have a job or are underemployed. they don't measure of to education, just the $200,000 to get. dave: there is discontent against obama for not providing a strong economy but republicans have to deliver on a promise to increase growth and how do they do it? >> they have to start unlocking all of the valves on the economy the democratic party -- dave: like what? >> dodd-frank.

dodd-frank regulations, the banks, the big city, the big money banks in new york to more or less deal with this are having a hard time. out there in the country, small countries -- small businesses have been strangled by a new reporting requirements and community banks are having a very difficult time. we are talking about mean street, they supply jobs in the middle of the country. dodd-frank has got to be -- dave: when you have lobbyists fiddling with dodd-frank is usually the big banks that get the deals and small banks are let out in the cold. >> in this case the big banks are willing to do some revisions on dodd-frank. regulation, energy egulation, has to be deregulated and quickly. keystone, the power plants have been closing. republicans with huge majorities can use the power of the purse to start writing in blocks on epa continuing the shutdown.

dave: i have been hearing karl rove, will be about the keystone. what does he do with the keystone. will be signed on to that with the opening gesture, and stonewalling throughout? >> this is the big question, whether this president is able to recognize an earthquake has happened. dave: did he mention the democrats or the democratic party once in a press conference? it was all about him. >> it is unusual. it will be very difficult to do business with the president, though there is a possibility of some progress on the corporate tax rate, bringing that down. the administration is interested. dave: i don't know if you heard me talking to grover norquist, but they have a problem because this is a middle-class revolt, what we saw last weekend if we see another benefit going just

to the corporations who have been getting record profits they want something for themselves, they want to pay less taxes, not just the corporations. >> i am optimistic, very impressed by this class of republicans coming in to the senate. corey, nick, joni ernst, a these are serious republicans, they're not coming down to washington , these are serious republicans, they're not coming down to washington to create more handouts and they understaad the economy has to be unlocked. i am fairly optimistic about the direction. dave: that says a lot coming from dan henninger air. i want to stay on the delusional democrat thing and bring in scott from chicago. we are calling it the new battle cry fro the numbers don't back up.

>> no they don't. even in five days if you are an incumbenn wouldn't you have love to go into an election with what the government was telling us, jobs are back, zero to no inflation, gas prices at four year lows, those would be a great thing and to add more fuel to the fire of would say this. was absolutely and only about the economy and that is why the revolt we had tuesday with the voters voting with their pocketbook saying it is not good enough. q e 1, q e 2 and q e 3 got 2% growth, that is not good enough. we need some major innovation. a won't just be the republicans to get us out of this. we need major renovation to get us out of this mess and that is the worry. dave: if for example as dan just said there is real progress made on tax reform do you think that is going to affect the traders and get the more optimistic about things? >> bottom line is this. the perception of that will be

good but then that will deliver. the perception is better than the difference. ultimately at the end of the date of the reason we have q e any thing is we can see around the corner. until we can see the gross coming, more measures from central banks not just here but around the world will falsely--keep gas prices levitating until we see real movement and it is something you and i can't imagine right now. health care, technological innovation, and -- dave: i got to ask quickly, you are a farmer. how is your farm doing with commodity prices? >> it hasn't been good. of contracts having to be redone. and the farmer is starting to feel the last five years, and they are part of the misery. dave: thanks. later this afternoon at 4 be an

eastern time, i go head to head with the former vice chair at goldman sachs formerll of the obama administration. after the bell, 4:00 p.m. eastern time. shares of tesla, we will talk about his leg jumping today. they had a profit. >> stocks are 5%, $243 and change. they came out with their numbers can be in the third quarter. they're moving it forward, the north american demand is stellar. they know that and see it growing. the sale of the model s next year are likely to rise 50%. deemphasizing china which is interesting. and these oh ses, you can see the stock showing stellar demand. the model s which is the crossover they are pushing back. that will be delayed until autumn of 2015 because elon musk says they want to get the

details right. the winner of 60% this year and gaining. dave: they were expecting a loss of any profit was good news from tesla. never one to take the blame for problems with toys want to take credit for good, listen to this, from the president that his first press conference since the gop win. >> to evvryone who voted by want you to know that i hear you. the two series of voters who chose not to participate in the process yesterday, i hear you too. as acquiescence in a little sarcasm from president obama. congressman mike kelly joining us on the phone. what is love one thing that you would like to see the president sign onto that comes from this new congress? p> more than anything else we are looking at the great next emerging economy and it is right here in this country and will be energy. in a country that cannot produce anybody in the world with energy and i'm talking low-cost energy and includes not only all of the pbove but all below. the cost of fuel, the gifts we

have from god are waiting to be extracted and be put to use. we have an opportunity and again not just to rebuild our country but geopolitical relationships around the world. our friends will no longer depend on people that are bugs for their energy. dave: you see these fuels come from god. the president is saying they come from the devil. doess't think much of fossil fuels that all. he wants to phase out coal. how do you think you will get anything signed by him? >> i think we look right now especially at yesterday, tuesday. that was a referendum on incompetence, not incumbents. if this president doesn't get anything we know he doesn't get the true deal with the people think. he says you ports to the folks, you just don't get it. you eed me to weigh in on more different things. the country now knows that the emperor has no clothes. the code is off. we know who we have and we have to work with. we have strong people n the

house and senate with mcconnell, we did a piece called coal country protection, it matches up with the peace in the house and we can move forward on coal. all these communities that we are losing because we're shutting down mines and using it to make electricity, and the president told us that the core got into office, you went to continueeto make electricity using coal,,go ahead but we will bankrupt the. this is the guy who has on blinders. talks -- just vails his threats but he is a soft talking cultured thug who says this is the way i know how to do it. davee he may be as you define in a cultured fug but he is the president of the allied states and has to sign off on any building you want unless you have enough votes to override the veto. >> don't you think that little mystery, that little shroud hanover the senate, the senate is now open for business, the american people going to see legislation that has been sittiig on a table for years because harry reid wouldn't bring it forward, they will see

debate, amendments, legislation that lifts all america not just republicans. dave: i have to ask you to be specific. what o you think the president could sign that you could put on his table? >> why wouldn't he sign the keystone pipeline? it has gone through every trap we can put it through. show people we will put people back to work and rely on american resources. you will put on his table? >> that is the easiest one to put out that he american people live behind. we look at things like tax reform that the american people overwhelmingly think need to be done. chairman cam did a great job getting forward. he is going to be in the spotlight. it will be on his desk and he won't be able to hide behind any more. when the people see what has been sitting there, they see the model that has been kept under cover for so many years, working marvelously in everybody's driveway, what were you waiting for?

the market was there? dave: you should turn on that car sales and charm and walking to the president's office but you say the keystone pipeline will e the first thing that arrives on the president's table. it will be fascinating couple of years, thank you for joining us, appreciate it. here is the lineup for the rest of the hour. john stossel, mr. libertarian, the party that spoils elections for a lot of mainstream republicans defends his party and his issues at 12:50. colonel ralph peters, sound byte machine, never afraid to speak his mind. he weighs in on president obama's record on isis at 12:30. also immigration will be a top issue moving ahead with the president and the new congress but how much will amnesty cost everyday americans? nfl games, you see this alongside ads like this. ♪

dave: shares of apple are trading up a little bit despite problems they have had. palo alto's network says they have discovered a new piece of malware that could compromise the security in as many as 18 million apple devices all around the world. jo lin kent has more on this, you don't think it has been affected by the news. >> a lot of these don't affect apple stock until something of more magnitude happens. and computers, this devvce, this malware called wire worker essentially is accessing computers through unauthorized apps stores that are popular in china. if you are downnoading apps, 3 buying these things, the reason brought your iphone with your u u.s. be cabled into your

computer to sink everything up and down load some music and the malware you may have downloaded from your computer is put on to your phone sell apple is saying they are working on this and aware of it and blocked those apps. we do not know where wire mercker is from but what we do know according to a palo alto networks, this is an elite team of researchers, the person or people who are creating at hard preparing for a larger cyberattack, this is important to get ahead of these things. apple telling us they blocked all the apps and don't download things from things that are not the itunes. dave: how does it feel to be picked on by stuart varney all the time? >> no, no, that is not what it is about. we get along great. i missed him today as much as i enjoy your company. dave: take that, she can take it.

jo lin kent, thank you very much. look at microsoft, stuart varney years a lot about that. it is actually traded up a bit. their new surface tablets making a splash on the nfl sidelines. the league is using them as digital playbooks, james bergstrom is microsoft director of private marketing. he is here as two service tablets with him and i am holding one in my hand. this is a fascinating project. you say every nfl team has one of these on the sidelines. >> during game, it talks to the unique technology partnership we have with the league. the surface tablet has some unique characteristics that allow it to be the one to be used in the rigors of the stadium. dave: you save the rigors of a stadium. this is not when that advertises itself, this is really heavy-duty, something you would expect a marine to be carrying around. this is due to take some calls and banks and bumps. >> we engineers them to do a few

things, surface tablet inherently could work with water. none of our competitors could do that. if you get water on it touch screen is reduced list. we do a system where you can touch and a pen could be used. dave: remember the famous football game, vince lombardi? is this complete be weatherproof even if you are 10 or 20 below? >> we tested them to 10 below 0 to 120 degrees. dave: i could be less than 10 below, it is 30 below. >> in that situation we have units from the sidelines that are heated and cooled so these can go at any time and be exchanged for additional -- dave: you guys deal with it in your commercials, can this kilby ipad? >> i will tell you is this. this is changing the game of football forever. we work that began to points -- dave: nobody in the nfl uses an ipad instead of one of these? >> nobody's using anything but a surface tablet during games. that is the system they use it

is phenomenal. we are getting great feedback. dave: you are not getting to go with you can kill the ipad or not? >> we are talking to all teams to find different ways to help them in their football operations. dave: the surface is more versatile. the ipad could not do what this does. >> is the most productive tablet on the planet. i don't just say that. is really changing the game. dave: thank you for coming in. coming up, new development in the irs targeting scandal, they didn't even bother looking for lois lerner's e-mails. the ridiculous reason coming next. >> this is megan trainer. i got to tell you i think you belong in country music. i am getting you ready not now. is real easy to do. we change this on to all about that back. i am all about that back. sheila! you see this ball control?

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dave: breaking news for star wars fans. disney announcing the name of the seventh installment of the series is star wars:the force awakens. a lot of the original cast is ii it. marc hamel, harrison ford, kerri

fisher, december 18th, 2015, is of release date. it is coming out. check disney shares, they are trading up $1. the irs, you might not get through. the commissioner warning phone service could plummet to 53% with an average wait time projection, 34 minutes. do you have the patience for that? attorneys for the agency told a federal court they are not searching for lois lerner's doing so would, quote, not ed result in the recovering of any information. they are just not doing it. would get this video. is taken from a camera attached to an eagle flying over the city of lights, the city of paris. it flew from the top of the eiffel tower with sound over the seine and down, amazing shot. this is from a sony action cam

neely. it is not a go pro. you get a real genuine bird's eye view of the city of paris. isis, is still a threat and president obama's leadership not up to snuff according to colonel ralph peters. he is up next. so i can reach allbank 24/7, but there are no branches? 247 it's just i'm little reluctant try new things. what's wrong withtrng new t? 247 it's just i'm little fe that in yr muscles?ngs. yeah... i do... try a new y to bank, whe nobrane

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dave: the dow is off of session highs but still in record territory and general electric is the biggest winner of the dow, generallelectric stock is up 1-3/4% of $26.28. now that the republicans have control of congress will that be good news for the energy sector? been talking a lot about that this morning. will we see more drilling? maybe even the building of the keystone pipeline little one person is standing in the way of that happening and here is what he had to say yesterday. >> our energy sector is booming. i am happy to engage republicans with additional ideas for how we can enhance that. i should note that our clean well.y production is booming as

so keystone i just consider as one small aspect of a broader trend that is really positive for the american people. dave: let's bring in rich edson. the president doesn't sound enthusiastic about keystone, does he? >> he showed neither enthusiasm or commitment to alter his position on energy or keystone or other agenda items. as for comments on keystone particularly in the earlier in the press conference energy analysts were listening. >> the president's response was not just i have my parameters for which all approve keystone, the economic benefits, environmental limits to the environmental impact but then he started talking canadian oil versus american oil. started talking how much american oil they had and we don't need to talk about canadian oil so much. is a very strange thing to say in the face of an integrated american energy system. >> he believes the president will approve keystone perhaps to rob republicans of a potential

legislative victory, maybe offer an olive branch, the president is looking to play the environmentalist's he can point to forthcoming regulations on existing coal power plants which would reduce carbon much more in keystone would add to it. dave: we have been talking to congressman today, it will probably be the first thing that hits the president's table, will be a bill to get keystone going. >> it could be. as nick thank you very much. president obama in denial about foreign policy as well? he is refusing to take responsibility for the results of his failed airstrikes on isis and growing terrorist groups. lieutenant-colonel ralph peters is year. good to talk to you. president obama's denials that air strikes haveefailed to stop isis, what did you make of that? >> first of all it is great to speak to you again. we go way back. what do i make of it? the president lives in a fantasy

world. it is stunning to me. you saw it with his response to domestic election debacle his party suffered a you see and overseas. our airstrikes, even though they have been little love taps, they have made a local difference in certain cases but overall they are not making a strategic difference. i am afraid it might soon be too late, isis has slowed down that they slowed down because they conquered so much so fast. they reached what the military called a culminating point, like you have driven your car so far it is about out of gas and you find it is fine but does need to top it off. isis is topping off. is not just the islamic state a caliphate but other jihadis groups are booming.

and the khorasan front, various fringe groups, the one growth industry in the middle east today is terrorism. dave: the colonel, the president may not be bernard: to handle that but his military knows this. i want to know if we are going to find this fight again, not a leading up to the election between he military which happened on the ground and the president refusee to admit what is happening on the ground. >> is interesting that obama has done his best to stack the senorita ship of the military with yes men but they are noo saying yes anymore. the senior leadership of the pentagon now realizes the men in uniform, how grave this threat is, how serious it is and are watching our advantages being frittered away. dave: are we in danger of seeing a breakdown in the chain of command from the commander-in-chief? >> our military will always obey the orders of the commander-in-chief as long as they are lawful orders.

the problem is the commander-in-chief. even with the change in congress, that can put the brakes on some of obama's worst policies that congress cannot forge new security policy. congress doesn't have the power in overseas matters. the president is our senior diplomat in senior general if you will. he really sets the tone in fat and so congress can make a difference but not as big as some people think. one hopeful thing i heard yesterday in his press conference was he talked about going back to congress for a new authorization for use of military force. he is not doing that because you wants to, he's doing it because you wants to push the burden for doing that on congress and shoulders and congress with john mccain heading the armed services committee but he tries to shift the blame onto other

shoulders. dave: and -- >> he has -- dave: if you do that you have to deny some of what is happening. finally on iran, another area in which the president or some people would say about the president that he is in denial he is very happy with the progress he made in preventing iranians from getting new to which you say what? >> where is the progress? iran is on the road to nuclear-weapons. its slowed down a little bit bu i am worried about this. john kerry said recently, quote, i want to deal referencing your can. the iranians are much more saavy about our political system than we are about theirs. they know a new republican congress coming in after the first of the year will be tougher to deal with overall, tougher to get treaties ratified. they are at in coming week to show us a little bit of leg, carrying just enough to get us to agree to a really bad deal. the president wants a piece of

paper in his hand guaranteeinn peace in our time. when you want it you get it that. dave: when thing that is hurting the iranians is the saudis pumping more oil and they know what they are doing. they want to hurt iran. they hate iran and are afraid of iran for good reasons. do you think they are hurting economically hurt because of the drop in the price of oil that we may be illegal to squeeze some kind of deal out of them? >> i am glad to hear you preachings that sermon. you are exactly right. they dropped the price of oil, really driven by the saudis wanted us to drive prices down, they got plenty of buffer and if the saudis are forging their own foreign policies a figure we won't take care of iran so they're going to end the iranian economy is in bad shape. by the way, so is the russian economy. and other strategic thing, a huge strategic development no one has talked about is yesterday immediately after her

election, the russians read the tea leaves, the central-bank announced would no llnger prop up the ruble so elections have consequences but see if the president can figure them out. dave: what a pleasure to see you again. thanks for coming in. we have an update on the market. it looks like it is up a little bit. perhaps the gop win is good for your money but according to one stock picker that is not the reason the market is up. he explains coming up next. portunities aren't always obv.

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nicole: i am nicole petallides with your fox business brief on record-setting day on wall street, a 36 point sitting at 17,520 , the s&p 500 and two points at 2,025 also set a record today. the nasdaq pulling back fractionally and that is at $46.19. looking at the dow winners general electric, home depot, dupont and microsoft aaong the best performers. keeping a close eye on noodles and co. the casual restaurant chain operator coming out with better than expected sales, stock is up 15.5%. qualcomm is under pressure facing china issues and also antitrust investigation going on as well. both of these under pressure. u.s. europe, don't know what the

more "varney and company" coming up.

emnly swear that i willupport a dend me thconstitution of the united states ainsl enemies foreign and dosticic... ♪ ♪ dave: breaking news from the wall street journal on the heels of the interview with colonel ralph peters, get news from the wall street journal that barack obama last month wrote a letter, a secret letter he wrote to iran's supreme leader asking for help in dealing with isis. as ralph peters and i were talking moments ago, iran does

not like -- from a different muslim group van isis is. how leverrge it is a contrary -- controversial thing for a president to write a secret letter to a letter to another country, particularly one that is an adversary like iran. not the first time this has happened. this is the fourth time % president obama has written to iran's supreme leader ince 2009 since taking office in 2009 but undoubtedly ttis will add fuel to the fire of ttose suggesting that his policies with iran are now where we should be going. back to your money we are talking about a market rally at the gop takes the senate and there are numbers historically to back that up after an election when there is a democrat in the white house and republicans control congress it brings an average 21% rally on the s&p 500 over the next six months but listen to what harry dent told us in the last hour. roll it. >> the biggest trend, the market

is usually opinions the end in 5, with the republican congress and democratic president. forget all that. we had the greatest bubble created by the government in the last five or six user, stocks that bubbled up and ongoing to crash. dave: let's bring in ed butowksi. what do you think of what gary said? >> i have known him for a ong time and i like him but what he is saying has no resemblance to the truth. we talk all the time about the fed ppinting money and boosting the stock market. i don't know any evidence that that happened. what the fed does is they print money, they bide that debt off the books and move it over to the fed's books. the idea that somehow that money got into the system is just factually incorrect and he needs to stop saying that so stop saying it. it isn't true. dave: you will not get through to him. he believes it in his score. the world is aboot to end kind of guys, the we don't have that

fox business, he is a serious guy. he does do is fact checking. >> he does his fact checking tte facts are is if you put a chip on the money granted by the fed doesn't necessarily make it into the system but if it did how does that translate into stocks going higher? credit belongs to the ceos of companies working their tails off to help earnings grow. that is where the credit belongs. dave: we want to talk about the president's going ahead with amnesty for 5 million illegals. the didn't spell it out but hinted at it. how many jobs do we have to create to offset the cost of doing that? >> i have dooe the math. bottom line, when you look at one of these people might get amnesty it costs the federal government $24,000 a year and they pay on average according to the heritage organization $10,000 of income tax so it is

country, that is the equivalent of one full time, $50,000 paying job in terms of revenue so the answer is if there are 5 million people granted aanesty we need to create 5 million full-time jobs, paying basically $50,000 to offset the amount of money we are going to be paying, that is a lot of jobs, that would be an entire year in terms of creating jobs to offset what the president will give amnesty to these people. that is not right for this country. dave: no such thing as a free lunch. we heard that quite a few times over the last few yeers but a booming economy could take care of those problems and that is counting for a lot. good to see you. look at tesla shares. and results were much better than expected, and as a factory

hall, and the model x crossover would be delayed again by several months. and much worse number than that is why the stock is up 5% now. this will make you mad, people living in their homes for free that stopped paying their mortgage and the bank is not foreclosing. home ownership is that a 19 year low. joining me is real-estate attorney chris cabbaneas. >> they are not moving forward on these properties, many of % them have shoddy paperwork so they cannt mooe it forward. on the other hand they don't want to overwhelm the market dave: i don't understand why they don't pay off? >> these mortgages have for the most part been securitized already and ttose assets, those bonds have been written off a long time ago so that is already there. if they were to foreclose quickly would have millions of homes that would come to the

market and the property market recovery that has been going on would cease to exist. dave: here is the bottom-line question. does it pay to be a did be? there have been so many negative implications of a lot of policies over the past ten years. this goes before president obama got into office. >> these people aree't did beat. the banks can move forward. dave: they are making a business decision not to go forward. -pthe bottom line is it does pa to be a deadbeat. >> the majority of them -- dave: terrible message. >> nobody wantt bad credit. dave: a lot of these people don't care about their credit. >> i tell you what, as they do. i have offices in three states and i am seeing everyday people that want to stay in their homes, they want a fair mortgage modification, the bailout is helping them and that money is supposed to come into the market to help with modifications and it didn't. dave: and intended consequences of bad policies very often lead to things like that. is there anything we can do to

turnaround? >> one mortgage modification, the administration needs to encourage fannie mae and freddde mac allow for principal reductions in the modifications which hasn't been happening for a long time and that will go a long way to solve this mess. dave: thank you very much. john stossel, libertarian in his party, prevent republicans from taking more seats in the senate? he is next. (vo) y are a busin. maestro of project management. baron of the build-o. you need a permit... to be th awesome. and you...rent from national. because only national lets you chse any carn the aisle... and go. u can even take a fullize or abe, and still pay the mid-size price. (aaron) purrrfect. (vo) meee-ow, business pro. meee-ow. go national. go like a pro.

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dave: libertarians blowing the 4 republicans. louisiana senate race, libertarian candidate splitting the republican vote forcing a runoff election for the seat giving democrat incumbent mary landrieu another shot at keeping their seats this jeanette and make a. john stossel is here. some people call libertarians a spoiler. john: you are as bad as varney blaming us. dave: as good as varney, you mean. john: we vote for the liberty, republicans often want to take our libertyy and won't say it is terrible to run. dave: as i mentioned what will happen is libertarians will get together with republicans and mary landrieu will lose. john: this guy in louisiana doesn't call himself a

libertarian. anti-gay marriage -- dave: leading up to 2016, we have a very important election for this republican and there was a spoiler once named ross perot who cost bush i the election that clinton came in in 92, so it could be a libertarian would emerge who could spoil it for republicans in the presidential race. john: or win the election? dave: like who? it is possible. could rand paul win? john: if he runs as a republican he could win. dave: to you, libertarian? is more of a libertarian that republican? john: more than the other guys and look at this. in north carolina, florida, kansas, illinois, libertarian got 4% or 5% of the vote and was 2% but the exit polls show we took equally from democrats. dave: do you think libertarians are happy with the results of

the election because the republican establishment -- john: we are more happy, we never win. dave: mcconnell in the senate, john boehner is staying in the house, he is an establishment, chris christie sort of a liberal republican was responsible for 32 governors taking over the state houses. the establishment wonn the libertarians, a new group of republicans as we are going to cut. john: we are optimistic. dave: what you doing tonight? focusing on libertarian -- john: what it means for freedom. dave: watch stossel at 9:00 p.m.. i have known this guy for years and i love him to death. more "varney and company" coming up next. can you start tomorrow?

yes sir. let's share the news tomorr.ight. we closen the house y. tomorrtomorr.ed solid. i want o of these open upbecause tomorow we go live... 's a d full of promise. i want o of these open and ofn, that day arri gby train. big day today? en bigger one tomorrow. when csxs move forward so doee rest othe economy. ecsx. how tomorrow move

>> i went to north carolina. the ads ran by harry reid trying to create a divide.

thee were awful. the fact is that the lowest common denominator and politics is ignorance. >> that was senator tim scott. that is it for me. adam shapiro is in for deirdre bolton. adam: apple faces a real threat. cyber crooks trying to take a bite out of the forces like apple operating system. we will put you in the front seat of a sale that includes corporate espionage and theft. there is no place like home. short or long term. we have the cofounder coming up in just a couple of minutes.