morning. the dow jones industrial average is up 190 points. retail sales really set the tone today. much better than expected. thank you for being here on opening valve. stuart, over to you speak to tax big, spend bigger. good morning, everyone. perhaps they hoped you would not notice. record tax money flowing into the treasury. they spend it all and then some. you pay 400 billion in taxes. results, a massive deficit. the more you pay in, the more you spend. president obama wants you to pay even more and he will spend even more. we are watching oil slide again.

there is a big market rebound, two. we have it all. varney and company is about to begin. ♪ stuart: well, would you look at this. i go away for two days and the market goes down for two days. the retail sector there seeing its biggest gain in two and a half years because we had a report that retail sales were very strong recently. still a long ways to go. the other financial story is the price of oil. it has dropped to a fresh five-year low. oil is at $60 a barrel. gas, that was down almost $0.02 overnight. national average for regular,

262. ipay 241 in jersey yesterday morning. first, this. the government. they just cannot stop spending your money. look at these numbers. a record $404 billion in two months. at the same time, they spent a total of 582 billion. a deficit of 178 billion in two months. monica crowley is here on this one. he wants even more tax money. he is not retreating at all, is he? >> tax and spend liberals. now it is spend and tax liberals. there are a lot of republicans that go down this road, to.

they funded obamacare and they funded obama's illegal, unconstitutional amnesty move. in many ways, republicans are just as bad as the democrats. stuart: you do not want to jump in there with aipac to come move >> when are they supposed to stop? you report record amounts of money coming to the treasury. that still is not enough, stuart. they want to spend within their means. we are being taxed enough already. the republicans have been elected in the midterm elections. to stop this kind of spending and taxation.

they don't seem to have the courage to stand up and do it. >> it will give ammunition to president obama. 400 billion that caveman. only 12 billion came from corporations. why am ipay more? why am i paying less. a lot of people on both sides say we can get it done. stuart: i do not think you will be able to get the president to agree. if you had a lower tax rate, you would get more revenue.

>> let's see if both sides can get together and put the pressure on the president in order to do that. >> you can say that this is a rebound from yesterday's big loss. scott is going to join us from chicago. is it just that? >> number one, it surely is not for the faint of heart. retail sales look a little bit better. i say this, it is not something that retail investors should be getting involved with. you have to have a solid plan that is over the six or 12 month period. stuart: the yield on the 10 year treasury is 215. record lows in germany. there is something going on which i do not think is good.

what say you? >> we will go back to the lows that we saw on october 15. what is happening out there is not inspiring enough of an economic engine. those are the people that have benefited. that is the real problem. we are not growing. it is not good enough. we are not doing very well. i think those numbers tell you that. now you are saying that they feel close to 1.8%. if you get that right, that is big trouble for everybody, i suspect. [laughter] >> all right. 1.8%.

stuart: you heard it first right here. thank you very much. oil to a fresh low. maybe we will get a handle on it. we are very close. chris, welcome to the program. >> good to see you with us. stuart: you are a driller. >> we can make money. and lots of areas in the united states are still very profitable. a great example of where we can drill for oil. creating some trouble in this economy. infrastructure right now is key. we can drill for oil cheaper. stuart: am i right in saying that there has been a real pullback?

>> a real pullback here. >> billions of dollars. >> i think that it is coming. you cannot just stop drilling tomorrow. i think that if oil remains or drops below, i think the slowdown will occur. how long is the real key, though. gas around 270. still way down there. >> we are not getting back to 100 anytime soon. do you think that the saudi's are driving this? >> everyone asks me that. i am 100% that the saudis are looking at the united states as

collateral damage. we are the focus of what is going on. if you look at opec and you look at what the secretary general said, look, we have given you and answer. we cannot just say we will just shut down 10% of our production. the market is driving the economics. if it cannot make money, it slows down, stuart. i would like for it to be $8 billion. stuart: get off my set. [laughter] citigroup says it faces

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stuart: it is a rally. the dow is up very close to 200 points. exxon mobil. home depot, intel, chevron. by the way, home depot has hit an all-time high. the retailers are doing particularly well. we have all the big names moving very nicely.

urban outfitters. a 10% gain. $1200 an ounce. restoration hardware. that was a charles payne picked. nicole: it is a winner today. winner this year. pretty happy on this retailer. they raised their financial projections. they actually decreased their forecast. now, the profit has more than doubled. the stock is that a new high. continuing to do well. we have better than expected jobs numbers. the hiring has been the best. improving the housing market. stocks like this one.

stuart: charles payne saw it coming. that that. thank you, nicole. at war with cyber criminals. they get hit with 10 million hacks every month. jason glassberg, cofounder. all right, jason, the government will spend $50 million to fight cyber crime. it does not sound like a great deal of money. >> you can and you cannot. it is a very difficult problem. essentially, you are playing a cat and mouse game. you always want to stay one step ahead of the attackers. how many of them got through on

how many locations with money being taken out of their account by criminals? >> i do not have the exact figures, however, it does happen. you have two kinds of attacks in this game. someone is basically looking for anyone that left their keys in the ignition. you are specifically going after the target in question. the ones where you are specifically targeting a company is the one where they usually meet success. stuart: suppose my bank account is hacked. somebody get into it and take the money out. who is responsible for that loss? >> well, of course, these things are under a certain limit. they are insured by the

government. you, yourself, are never responsible for any action on the bank account. the bank itself will make good on that. >> 10 million hacks a month for citigroup. that sounds like an awful loss. how did you feel when you heard that number? >> i am not really surprised. any percentage of that population will be of no good. that number may sound high, but many of those attacks are unsophisticated attempts. knocks on the door to see if the door is unlocked. if the parties is looking for any car with the car open or the keys in the ignition -- they

will have a much bigger success at getting what they are looking for. stuart: thank you very much for joining us. mcdonald's finally seen the light. doing what they have been saying the whole time. cutting down the menu. the changes after this. ♪ ♪ a change would do you good ♪ i think a change would do you good ♪ ♪ ♪

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♪ stuart: tell it how it is. that is a rally this thursday morning. retail numbers excellent. they are driving the day. oil, that is helping, too. look at this. another five year low. monica crowley is with us. 200 plus. the republicans take congress next year. that should be good for the

market. >> yeah. absolutely. i think you are already starting to see it respond to the two things. the republicans will come in and put a stop. stopping some of this overspending. they do not credit the republican congress with any share of the credit for this rally. >> i think the perception is that the republicans will stop the overreach of the obama administration. the taxing. the overspending. they will bring their own proactive, progrowth agenda. again, we hope. i want them all to stop spending. stuart: republican and democrat.

>> exactly. stuart: big names. you know them. hitting new highs. they bought a 6% stake in staples. they have raised their stake to 10%. investors like it. both stocks are up. look at mcdonald's. holding at $90 a share. they are revamping the menu items. gone. lauren simonetti is here. >> hello. stuart: are they cutting down the number of items for sale so it is faster service? >> their menu is located. there is 120 items on that debut. you are waiting for your fast food. we do not know which items they are taking off.

we do know that that eight items will stay. for instance, extra value meals, they have 16, now there will be 11. there used to be four different quarter pounders, now there will be one quarter pounder. stuart: extra value items. they are cutting that down a little bit. >> they are. there is too much of a price differentiation. it is confusing for our customers. stuart: look at the menu board. >> how do you feel about the build your own burger bar? >> not interested. i want to walk in and order a burger. i want it in five seconds flat. i walk out in 10.

>> i was in a mcdonald's a few weeks ago. i was completely overwhelmed. i just wanted a burger and fries. where are they? you want your basic meal. basic burger. a shake maybe. soda. stuart: i am surprised to hear you go to mcdonald's. >> i crave the french fries and i crave the shakes. stuart: how much do you go? >> once a month. is that not enough for you? it is usually for the coffees, though. not the food. stuart: all right, everybody. let's move on. we will have to judge on this after the break.

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stuart: i said it before and i will say it again, up 2 and the

points constitutes a rally, 17,700 is where we are. exxon, home depot, disney and jpmorgan leading this market up. here is david asman making a welcome return to the program. retail stocks doing very well clearly. is that why we have this rally? dave: i think so but the more serious investors are not the quick in quick out investors, looking at stocks that have been beaten down because of the oil going down so low much. i look at a stock like halliburton which is worth half as much as was 12 months ago, half the value. if you think unless you think there's a recession coming up, look at a stock like halliburton, it is been down to the point that people like testing waters, the retail stocks drive the market right now but it is such a fickle market, we could get figures in december it that could

disappoint investors where a stock like halliburton, all of these oil related stocks that depend on a certain amount of growth, not overwhelming growth but a certain amount of growth in the economy of the buys right now. stuart: can we still say the collapse of oil prices is still a big positive for the economy? dave: i think you can. i don't think it is necessarily going to lead the market down in any way. it is beneficial to retail stocks but one thing is doing is putting more pressure on the fed to say there are so many elements in this economy leading to growth it will be hard to justify zero rates any longer. next week is the big fish meeting, it is hard to justify not putting in some language indicating they may raise rates sooner rather than later. stuart: are you worried at all about the sharp decline in interest rates all over the

world? i hate getting technical but the yield on germany's ten year treasury. dave: i tell you what i am worried about. i am not worried about the germans or the italians voted japanese. i'm worried about the u.s. savor who represents average middle america that is losing money because for the past three years as low as inflation has been, if you are holding money in a bank you are losing money. that is the overwhelming majority of americans. wall street love these zero rates, mean street hates command for good reason. stuart: lending club starting trading on the new york stock exchange. jo lin kent is there with a special guest. stock is up 51%. >> it is refuge move.