economy with charles. president of the philadelphia federal reserve. join us on sunday for sunday morning futures. markets up about 50 points. have a great weekend. stuart, over to you. >> thank you very much indeed. if ever there was a divorce between the world and wall street, this is it. the world is on fire. the dow hits 18,000. good morning let's start with the town of al-baghdadi. isis just captured it. 300 marines are just a few miles away. yemen, a big military base just fell to al-qaeda. when the middle east explodes the president is clowning around. you'll see it again. bizarre and frankly disturbing. (?) wall street care. as long as the world is awash in cheap money, stocks go up. dow 18,000. yes, it's friday. varney & company is about to begin. ♪

stuart: we will start with the markets because the dow jones industrial average hit 18,000 for the first time in calendar year. look at it now. 18,019. by the way, there are five dow stocks making lifetime highs. look at them go. travelers, visa, disney, home depot boeing. early this morning lifetime highs. s&p 500 hitting a record earlier today. 2,092 is where it is now. so look at that. wall street on a tear as the world -- it's certainly blowing up. your money is looking good. our foreign policy, that is another story. here is your daily terror update. al-qaeda fighters have overrun an army base in yemen freeing 60 captured soldiers and government officials. isis has seized most of

a western iraqi town. that's a 13 minute drive from an air base where 300 us marines are training iraqis. fox news reports an attack by isis on that al-assad base it was repulsed. editorial board mary, is right here. now then, foreign policy. i'll call that in absolute shambles. i think president obama is taking an enormous political risk. because if that chaos that terror comes here, he has a political problem and a half. >> the reason we have this problem is because of politics, stuart. remember the retreat from iraq, the decision not to leave any ground forces in iraq was based on the political calculous. not on our national security. when the president took office he himself said and repeated it through the years in 2011, we're leaving behind, he said, a sovereign stable and self-reliant

iraq. that wasn't true. it was -- it was stable at the time. but we let it become unstable because we didn't keep troops there. >> i just don't get it, mary. i don't get it. the world is falling apart. one country after another dissolving into chaos. it does not have a strategy. he doesn't have a plan. >> even worse he's misleading the american people about the success of his strategy. remember last year he touted yemen as the great antiterrorist success story. well, guess what iran is effectively now in charge of yemen. he said we won't have troops in combat in iraq. now we have mission creep back into iraq. it would be better if we were up front with the american people about the threat that we face and take some real steps to push back this wave of terror that we see engulfing the middle east now. stuart: and just as the world appears to fall apart that sounds dramatic and extreme a general said the world is

exploding. just as that's going on, look at this, president obama literally hams it up for the cameras to promote obamacare. look a bit longer. [camera clicking] president obama: thanks, obama. stuart: i was really taken aback when i first saw that. that was a real shock to see the president of the united states of america doing that in front of a mirror. i've never seen any president do anything like that before. that was a shock. and it is reported that this video was filmed on the same day that the white house was dealing with the death of the american hostage kayla mueller at the hands of isis. washington's free

beacon, alison joins us today. we were told this video was designed to promote upgrade people to sign up for obamacare. it was directed towards young people. will that work? >> they did this last year. in between two firms youtube video. in terms of just website traffic, it seemed to be effective. it had millions of views like this video does rightright now. on facebook, 2.5 million views on facebook. not including other media outlets where it's talked about. website traffic in between the videos increased 40% in 20 hours. whether that translates to sign knew-ups is debatable. stuart: what's the reaction of young people? is this acceptable to young people? maybe it's a generational thing. i'm an older guy and flat-out shocked that a president would do that.

>> i saw chris christie do the dancing on jimmy fallon. maybe i'm just an old curmudgeon. and you look at social media and how everyone gets the news, it's not in traditional ways. so many people don't watch live tv. whether it's rand paul having a fight with marco rubio or something like this, perhaps this is the way politicians need to reach out to young people. i don't know it's necessarily effective. stuart: are you going to change the whole demeanor of the presidency so that we can sign up a few more young people for obamacare? >> this administration i think has taken an approach in the past particularly when it comes to this health care law that they're willing to bend normal images of what the office of the presidency is. >> doesn't that smack of desperation. >> they need young people to be enrolling. if young people aren't in it, they have a

bigger problem down the road in terms of financial stability for the law. stuart: when you first saw that video, the very first time you saw it on television. i saw it yesterday afternoon on the five, ten minutes to 6:00. what was your reaction? (?) >> apart from the selfie stick which i think no one uses. i thought it was cheeky and funny. stuart: did you really? >> i didn't think it was cringe worthy. they've done it before. i feel like this is expected. >> i feel like, can you degrade the office of the president anymore? you know what i thought of was bill clinton running out the lincoln bedroom. it started there. the march of civilization downward started with bill clinton. this is the result. stuart: if you're a foreign leader, i don't care a friend or foe, you're looking from over there and you see that from the president of the united states, what are you supposed to think? >> i don't have a good answer. it's probably not good.

i can look at i way the numbers are. this last state of the union had the lowest viewership. the last lowest state of the union viewership was bill clinton in 2000. a lot of politicians are facing a problem where they think the media landscape is changing. they're trying to address it. it's appropriate probably for some people to give pushback on it. because they can step over a line. maybe people feel this was that. this was a long video. and sticking out your tongue and winking doesn't look good for anybody. it may be a bit of a norm. >> this president is the most self-centered egotistical man that took over the white house approximate this this is the image of the presidency. >> thank you for joining us. interesting perspective, thank you. look at the price of oil, please. still going up. not a bad pop as we speak. we're at $53 per barrel.

maybe that's helping the stock market. maybe we've established a low for oil. low to mid-40s. now, we've bounce todd to 53. gas, up a fraction overnight. 2.23 still the national average. that is up a dime from a month ago. a dollar below where it was a year ago. then there were three. wyoming leaves the 1 dollar club. now it's just idaho montana, that's where the state average is below $2 a gallon. look at tesla's stock please, dead flat. no impact from this. a big announcement is reportedly coming on a new battery, not for the tesla car, but for your home. plenty of speculation that it could store enough juice to power your home during a black-out. maybe you wouldn't need a generator. mary, i know you're not a fan of elon musk. but new batteries.

put elon musk aside for a second. if it's a new battery and it can store that juice, that's a revolution. >> sure. it would be great. but can you take anything that elon musk says at face value? he think his company is worth $700 billion in the future. the same valuation of apple when it relies on taxpayer credits. stuart: can't get away from that, can you? >> to make his losses smaller. this guy is the showman of our generation. the media buys into it. it's absolutely beyond me why we don't see more media out there asking this guy tough questions about what his profitability is, what the real demand for his products are where this innovation really is in terms of the technology. stuart: i think investors sometimes fall in love with personalities. they fell in love with steve jobs. rightly so. the man was genius. >> steve jobs had real products. stuart: tesla has a good car.

>> steve jobs didn't pump up -- >> he controlled the buzz. >> but he had products that people actually wanted to buy and could afford to buy. elon musk doesn't have that. stuart: yet. still the skeptic. i think i'm in your camp too. hold a second. lauren is going to do the work. she has the headlines for us. >> uber wants to prove you don't need to own a car. folks that move into this one-bedroom condo get this updated condo, kitchen, dark wood floors. great views. no parking spot. instead, owners get a year of unlimited uber rides for free. you call that a perk. you can get it all for $799,000. what better way to get young people and women into best buy stores? let them set up a wedding registry. it already has a registry up online now.

couples can choose between cameras, tvs vacuums, even smart appliances. as for china, you'll have to shop somewhere else for those. best buy shares are down a half percent. make your dinner reservation at mcdonald's. at least one mcdonald's in australia is letting couples make reservations for a romantic dinner with a waiter music candles flowers, and the same items on the regular mcdonald's menu brought to you on china plates. i don't know if you get a second date after that. mcdonald's stock up half percent. >> that's in australia. let's not forget. >> they did it in tampa florida. >> well, similar. stuart: no, it's not. no relationship whatsoever. lauren, thank you so much. do we have something really, really cool for you? a real star making his way into the studio. heavyweight champ élan holyfield.

he's fighting mitt romney. we picked a special song for him just for valentine's day. ♪

stuart: see that number? 18,020. we hit that mark earlier this morning. the world is on fire. the dow is at 18,000. look at zinga. the company that makes farmville. posted a wider loss. disappointing forecast. animals, down she goes. 15% down for zinga. three stories. all over them today. number one, president obama's buzzfeed video unsettling in my

opinion. clowning around when we're threatened by radical islam. herman cain's take on that video next hour. the government takes in record revenue. more than a trillion dollars in just four months. doesn't matter. d.c. is still spending more. steve moore on obamanomics on the top of the hour. this video going viral on social media. a dog literally sniffing out its owner 20 blocks in the hospital. we'll play the full video. wonderful story. dogs rate 1225. it's true. now, wait for it. heavyweight champ of the world in the studio. taking on road rage. we're all guilty of it from time to time. you want to think twice of getting out of your car. watch this. (?) [horn honking] >> you cut me off. you son of a [bleep].

get back in that car. i'll tear you a new [bleep]. get out. [bleep]. voice: i >> i didn't know it was you. stuart: look at him. here he is. that was a public service announcement. this is the man who made it. four-time heavyweight champ of the world evander holyfield. you were terrific for that. the perfect guy not to have road rage against. moral of the story is don't get out of your car. is that right? >> it's very serious. you never know how the person may be. what he may -- stuart: he might have a gun. this is america. >> well, it is. but you have to think before you make decisions. stuart: why did you do that and make that particular commercial? >> it's important. it happened to me one day. sometimes, you know -- i was in the car my car stopped. someone blowing my horn at me. a lot of things go

through your mind. stuart: did the other person that was angry at you get out of the car and approach you saw you, and backed off? >> well, i was young then. i was 17 years old. stuart: more fierce in those days? >> well, you know, it was easy for me to do something because i didn't have no reputation. [laughter] stuart: well, you have a reputation now. you use it well. look at that. this is the end of it. he backs off. backed right off there. what's this about a fight with mitt romney? >> well, you know -- stuart: it's not real. >> in one sense if i can catch up to him. you know, i'm like, we're doing a charity thing. and the fight with mitt i just got to talk mitt into showing up. stuart: you're not going to hit him, are you? >> you can tap him. >> i won't say anything. it's a charity. it's a charity. i want him to stop hiding. because he will get the

whooping. stuart: he's not hiding. he's just not running. >> you can't run and you can't hide from me. stuart: what are your politics? i don't know. >> i'm for the person who acts and thinks for the people. we need people who make great decisions on which direction we should go. stuart: i'll ask a personal question. you make a lot of money. you certainly make a lot of money. how do you feel about paying more than half your income for the federal and state governments? >> don't feel good at all. stuart: can i put you down in the conservative column then? >> i don't know what you call it, but it just don't feel good. but you have to do things that are right. stuart: evander holyfield, you can come down on the show any time you like. i think it's wrong. i think it's flat-out wrong for any government to take more than half of anybody's income. don't care how much you make don't take more

than half. how much would you prefer to pay? what would you say is okay? >> i would say -- i would say 10%, you know. 10% is -- stuart: you're on this show. terrific. so i am interested, because i know that you're a man of faith. >> yes. stuart: and you were a man of faith when you were poor, when you were born. you held on to your faith. now you're older. i know you're richer. can you still hang on to your faith? before you answer, i want to quote from the first book of timothy. chapter six, verse nine. those who want to get rich are trapped into many foolish and harmful desires that plunge people into ruin destruction for the love of money is the root of all kinds of evil. response please? >> well, i feel that like you said, the love of money. if you don't let money get the best of you, get the best of money. you make money money

don't make you. so i do not let things change my mind to what i truly believe. i wouldn't let money be the reason i do something. stuart: you don't love money? >> no, i don't love money. stuart: you like it and you use it. >> it's a tool. i love god. stuart: it's a pleasure coming having you on the show. that public announcement has been viewed more than 3 million times. i think you've had real impact there. congratulations, sir. you want to come again? >> yes. stuart: you would actually come on the show again. after those personal questions about religious and money. >> yes. stuart: okay you're on. thank you so much indeed. billions of dollars will be spent this weekend on valentine's day all in the name of love. but cynics say, you get gouged especially on those roses. that's next. ♪

♪ ♪ i'm almost done. [ male announcer ] now you can pay your bill... ♪ ♪ ...manage your appointments... [ dog barks ] ...and check your connection status... ♪ ♪ ...anytime,

anywhere. ♪ ♪ [ dog growls ] ♪ ♪ oh. so you're protesting? ♪ ♪ okay. [ male announcer ] introducing xfinity my account. available on any device. ♪ stuart: hey, look at kraft foods. your tastes are changing. that is hitting the bottom line of these big conglomerate food

companies. fewer people are buying processed foods. they want natural and healthy. kraft is not alone. other companies are struggling with changing public taste. kraft is down nearly 3%. it's really, really cold out there. this weekend, it will get even worse. reality check, this is february -- >> february. stuart: that's how the president did it. >> february. stuart: right. still some cities on the east coast in for a big chill. wind chills feels like temperatures. boston and new york will be way below zero this week. >> yeah, another reason to move to florida. stuart: move to florida. i'll give you two reasons. no estate tax. >> no state income tax. and the weather three reasons. stuart: paradise. florists working overtime. more than $2 billion will be spent on flowers alone this valentine's day. $2 billion. jeff flock at the

shaifer greenhouses in montgomery illinois. what's the price of a dozen roses today versus the price of a dozen roses three months ago? >> that's a wonderful question. you always surprise me with something. i have to get mary ann on this. what's the price of a dozen roses today compared to three months ago? >> we keep our rose prices consistent. they do go up because of supply and demand. but our premium bouquet is always -- >> stuart varney wants to buy his wife a valentine's day bouquet at the grocery store. tell me why he shouldn't do this. >> there's nothing that compares with a beautiful hand-designed bouquet. >> and when the spray paint comes off in his wife's hand. that will be sort of a problem, right? stuart: jeff beautiful bouquets of roses. how much if i'm going to shell out, how much do i shell out?

>> how much if stuart were to decide that buy bouquet right there what would that cost? >> when it's complete. it will be the 79 79.99 and the 5-dollar balloon. >> i feel a feeling it won't hop for the 5-dollar balloon. that's my sense of it. >> you always do well when you're live on camera in an unusual situation. 79.99 plus $5 fort balloon. you got it eventually. will you buy one of those things? >> happy valentine's day. i was thinking of gathering up these discarded petals and sending them to you because they'll be free. you can scatter them on the way to your wife's bath this evening. stuart: times up. that was pretty good. >> tmi. stuart: next case, president obama's amnesty plan for illegals might have implications in the 2016 election.

might. the judge on that coming up next. first, more of president obama's viral video clowning around to promote obamacare. you call this leadership? president obama: signing -- the deadline for signing up for health insurance is february -- february -- >> like any other wednesday. president obama: that's not right. >> wednesday. wednesday. president obama: february 15th. february 15th. in many cases you can get health insurance for less than $100 a month.

stuart: yes, you don't need glasses. we are at 18,000. 18,014 to be precise. that's a 41-point gain. look at the s&p 500 in record territory. i think the record for the dow is 18,053. that's a record. 2,093 for the s&p 500. now, the price of oil is up. maybe that's a factor in the stock market's gains. at $53 a barrel. maybe the rise in the price of oil is helping equities. not sure about that, but we'll see. gas up just a fraction overnight. up nonetheless. 2.23 remains the national average for regular. here's my favorite bit. the cheapest gas is at costco in idaho a buck

.21. cyber security stocks up again as president obama holds a cyber security conference. look who will not be at that summit. a lot of the president's friends in silicon valley. facebook's mark zuckerberg. yahoo's marissa mayer. all sending proxies instead. mary, these are the biggest supporters of the president, i thought, and cyber security is a very important subject. why aren't they there? >> it's an important topic. but these companies have positioned themselves against the kind of metacollection that -- you remember that scandal? we're against snooping and spying. which, of course, it isn't. instead of educating the public about that. they took a position sort of against the white house on this. now, look, they won't become republicans overnight. silicon valley overwhelmingly gives money on the democratic

party. increasingly to my mind, that looks very shortsighted. a lot of the big regulatory things this president has done will be harmful for companies like google. >> that's asking a california techie to be a conservative. >> look what happened when the white house came out with a so-called plan to let bureaucrats set prices and run the pipes that make the internet. all of a sudden, google which had remained very very quiet about that, came out against that. why did they come out against that? because they want to compete. and these big bureaucratic policies won't let them compete. stuart: interesting split. i mean, these guys -- >> it is. they gave a lotthey give a lot of money to democrats. they don't perceive in the long run what the democratic party is doing to their ability to invest is very bad. stuart: i'll move on to this. the president's temporary amnesty for

illegal immigrants. it may, we are told, create a loophole for them to vote in elections. here's judge andrew napolitano joining us from washington. judge, i want to get this real clear here. even if you've got a driver's license and a social security number, you still cannot vote illegally. so what's this loophole that someone is talking about? >> well, some states -- first of all, good morning, stuart. good to be with you. some states are stricter than others when requiring proof of citizenship. in indiana absolute proof. texas requires absolute proof, and the supreme court upheld it. but some states notably where you and i live in new jersey, if you show up with a driver's license, a social security number, a utility bill, and some other proof that you lived at the residence where you say you've lived for 30 days, they

will accept that as sufficient for you to register. they may ask you if you're a citizen and you may lie. but that won't stop you from voting. stuart: yes, but you have to break the law to vote if you're not a citizen. >> yes. i'm glad you said that -- stuart: tick a box that said, yes, i'm a citizen. or answer a question yes, i'm a citizen. at that moment if you lie, you're breaking the law. >> and you're committing a felony. but that felony might not be discovered until after you and many similarly situated folks have voted in an election and changed an outcome of an election. it might be impossible mathematically to reverse-engineer the election and find out who voted for whom. so the damage could be irrepairable. and the linchpin is the president not rewriting the law that he promised to uphold faithfully.

stuart: the astonishing news we received just the other day that if these amnestied illegals get a social security number, they can then claim the earned income tax credit for previous years which would be a check in the mail for previously illegal people. many people aren't happy about. >> that's an outrage that congress could correct if congress had the knowledge and fortitude to do so by simply saying the earned income tax credit is not available to someone who didn't earn income. stuart: right. >> you can't just turn it into a welfare check, which is what it will be. as a result of what president obama has done by rewriting the law as he sees fit, an incentive for people to come here and vote without them ever becoming citizens. stuart: judge, it's friday. we're not used to have you on the show on a friday. you're in washington, d.c. may i pry and ask

why you're there and what you're up to? >> there are about 2,000 college students here at a gathering called students for liberty. and my good friend, congressman ron paul and i are the co-keynoters. do you think they'll appreciate what i'm about to say? stuart: oh, yeah. yes, they will. good luck, judge. great to have you with us this friday. >> just as cold as it is in new york. stuart: getting colder still. classic movie cocoon. the senior citizens found the path to the fountain of youth. miss that movie. one of the major drug companies is trying to create a real-life fountain of youth. will it be a pill or what? great picture of that on your scenes right now. doug sealing is next. he's not one of those guys. ♪

>> i'm nicole petallides with your fox business brief. the dow jones industrial average above 18,000 for

the first time in 2015. worth noting also that the s&p 500 has hit record lifetime highs, and the nasdaq at the highest levels we've seen since the year 2000. take a look at the dow leaders. watching caterpillar ge, united technologies, chevron, and ibm. those are some of the best performers. caterpillar up 2.3%. earning season, take a look. candy crush maker has a good game that did well for them. king digits up 10%. zynga, farmville down 16%. last, but not least yahoo will be cutting 100 and 200 employees mostly in canada. we have much more. varney & company coming up on the fox network.

stuart: really want to show you this video. this amputee veteran is rock climbing thanks to a robotic arm. it's the deka arm system fund by the department of defense. recommend necessaryreminiscent of the arm that luke skywalker received in star wars. the nickname is luke. check the share price of johnson & johnson. they're developing a

product who is likely to get a disease. can you call this a real life product of youth? johnson & johnson. trying to identify something that identifies a disease before you get it and then kill it before you get it. (?) that's what they're doing. >> absolutely. stuart: how far along are we? >> let me give you a preamble. 16 million in profits last year. credibly successful. new hearing techniques will replace hearing aids. big pharma was getting involved. what i said to my producer, if big pharma is getting involved, it's actually going to happen. or it's about to happen. they won't spend this kind of money on a product like this j and j unless the science is there. once we sequenced the geno, we used that information to predict hey, you have that

mutation. hey, you have that gene and not this gene. which genes are the ones that lead to disease? (?) we're getting smarter and smarter. stuart: i see an ethical problem more than anything else. are you going to mess around -- i'm not sure the terminology here but the fertilized egg, the genetic structure of an unborn child? is that what we're trying to do? >> that's not what i'm talking about. that's a natural extension of thinking. i'm talking about adults that i know will have a gene that will cause lung cancer. here's an example. we actually know a couple of genes that cause lung cancer. there's been revolutionary treatments for lung cancer. once you manifest that mutation, they can reverse it. take it one step forward. let's reverse it before it causes the lung step cancer. that's one step further. not in the if you are the liesed egg.

you map stuart varney's geno. you have that week geno. let's correct that ten years in advance of the diabetes. stuart: is this viable? this isn't a pie-in-the-sky dreaming. this is reality. this is happening. >> diabetes is possible because diabetes is autoimmune. that attacks itself. they're talking about alzheimer's. i think they're way away with alzheimer's. we don't even know the cause of alzheimer's. when you talk about alzheimer's disease. stuart: cancer? >> i say yes to cancer. the cancer gene we're getting better at identifying. in the future i'm going to be able to say, you know dr. siegel, you're at risk for that cancer, let's reverse it now. i see it. >> do you think we'll look at chemotherapy and say, wow those people were dealing in the stone age. cutting off body parts. it's a miserable way to treat someone.

>> we're already there with cancer. immunotherapy with cancer where we're using mean zero immunotherapies. we're already moving away from cheem zero chemotherapy. it's poisoning the tumor more. talk about stone age. in other words, kill that cancer, in doing so you cause tremendous side effects. if we can use genetic therapy and say hey this cancer has a mutation. and this mutation, if we can prevent it or reverse it, we're going to be able to make the person better. but i think we'll be able to do it now in advance of them -- >> can i get my entire genome mapped now? >> you might have themoney for it. stuart: can you do it? >> yes, we have the technology. you can do it. the problem is. and this is what johnson & johnson will run into. we have the information. we know stuart varney's

geno but what will we do with it? in some cases like diabetes and cancer. >> and also, does the fda like this? i mean, they don't approve drugs unless they help lots of people. is the fda going to approve drugs that helps only one person? >> that's a fantastic question. that's why they pay you big bucks. they're getting more receptive to that. there's a drug for lung cancer that they're about to approve fast tracking because they see it helping some people. they have to change their mind-set on that. stuart: we've said it before your taste in food really is shifting. you want fresh. you want organic. got it. moving away from processed food. that doesn't help the kraft foods. very wellvelveeta. moving away from that stuff. we'll tell you all about in a moment. ♪

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stuart: colorado is really cashing in on legal pot. it's pulled it n more than $53 million in additional tax from cannabis sales. it's been legalizing pot since last january. look at kraft foods. they make a lot of processed stuff like velveeta cheese. oscar mayer meat. it has not moved fast enough to adopt to shifting consumer taste. kraft down nearly 3%. this is affecting a lot of the big companies. even mcdonald's kellogg, conagra, am i right, is the premise of this story correct are we indeed shifting away from processed and going to fresh and organic? >> yes. absolutely. and it's -- if you look at special k from kellogg. right? not a lot of calories in that cereal. healthy cereal but people are picking up the greek yogurt. they want protein to

fill them up. they're doing the same at lunchtime. >> there's a shift in taste. we're all shifting. not just youngsters. >> it's going beyond millennials, yes. >> i wouldn't put mcdonald's in that category. people aren't buying mcdonald's because they got into businesses they don't understand. you don't go there for healthy foods. the market works. these companies are adjusting to consumer taste. yet another reason why we don't need public health authorities and government to tell us we're going to ban trans fats and you can't have big sandwiches. look, the market is adjusting. as people get wealthier and we are after all the wealthiest nation on earth, they want to live better. and this is just a manifestation of that. stuart: it worries me when standards change like for cholesterol labels. suddenly we'll change that. two generations cholesterol is bad. don't touch it. >> who told you that? stuart: the government exactly. good point.

>> gluten is trendy. no modified ingredients that's trendy. these companies are getting in on that trend. >> gmo is great. stuart: it's a -- >> it's awful. stuart: i'm outspoken. hall of famer basketball player karl malone, strong words about the black community and handouts. he'll join us to respond to that. here's what he said. and the video we just can't get enough of even though it's a little disturbing. president goofing off. >> down by one. he gets it.

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or a moment walk-in the shoes of any foreign leader looking at our president, whether you are friend or foe you will form an impression you will pass judgment based on what you see mr. obama doing. you are over there looking over here at him. you see this? the president making faces in the mirror sticking his tongue out, fooled around with a selfy stick i don't remember any president clowning around like this. is worth noting that the day this video was shot isis was sending pictures of the body of a slain american hostage to her parents. what else have you seen recently to give the president interviewed by someone famous for bathing in fruit loops. the attorney general being asked to quack like a duck. the list of silliness is oh so horribly long. to foreigners think it is just silly? no.

they are worried sick if they are our friends and gleeful if they are our enemies. they know weakness when they see it. every day there is news of another advance by the terrorists or another barbarian out rage and every day it seems there is more silliness to put it mildly from mr. obama and his team. it is just not good enough. when i see that tape i get worried. we will get back to that cape and its impact but first the markets, looking at 18,018 on the dow jones industrial average. first time we have seen that this calendar year and there are five dow stocks that made lifetime highs earlier today travelers, home depot, boeing never been higher. this s&p 500 also setting a record earlier now at 2,094.

new high earlier today. oil gaining ground up 3% at $52.82 and gas above fraction of night holding at $2.23 national average up a dime from a month ago, $1 below year ago. president obama clowning around for buzz feed an attempt to be funny to promote obamacare to young people. he is doing this just as the middle east explodes. listen to this al qaeda fighters have overrun an army base in yemen freeing more than 60 captured soldiers and government officials. isis has reportedly seized most the western iraqi town which is a 13 minute drive from an airbase where hundreds 300 u.s. marines are training iraqis. we are joined by the chairman of the house committee on foreign affairs, congressman ed royce. i wonder if you would tell us what was your first reaction

when you saw that video we just ran for our viewers? what did you think when you saw it with the middle east exploding as a backdrop? >> the first thing i thought about was the contrast between how the administration is using social media as opposed to how isis is using social media. isis has effectively used social media not only to drive their message in the middle east but now worldwide and of course the problem with using social media is other people see it besides those in the united states so we are sending a very and serious message but the message isis is sending is deadly serious and it has turned than tens of thousands of new recruits. in the meantime -- stuart: when i ferrous saw that and i thought frankly it was disturbing because this is the president of the united states of america. i have never seen any president act like that before ever not even close. how did it strike you when you first saw it? >> as it struck you.

we are not used to seeing the commander-in-chief of the united states at a time when we are at war although he might not acknowledge that war, i guarantee you isis believes we are at war and although he may call sends the junior varsity team and might dismiss this the reality is had he given the order to bomb isis from the ground as it was leaving syria to begin to take over town by town in iraq, those cities, we could have hid them on the open road. his own ambassador in iraq asked him to take it seriously at that time and to strike those columns out on the desert, he refused to do so. we went eight months with isis on the attack without any response from the united states and still i am told by the kurds they cannot get the armament they need. the antitank missiles, the artillery, they are fighting with small arms fire against

artillery on the part of isis. the king was just here complaining about not being able to purchase or get the ordnance he needs in his fight against isis. we have got to take this seriously because the middle east is coming apart at the seams. stuart: why does the president act in this way? why is he so reticent to get a plan, to name islamic terror and go after them? because he is running a grave political risk. devices comes here and committed terrorist atrocity in the united states of america this president has a real problem on his hands and so do we all. >> this president is focused on his domestic agenda. an irritant for him is what is happening overseas. as he focuses more and more on selling his domestic agenda and presuming that we can ignore what is going on in the middle east situation spirals out of

control where yesterday yemen fell. another ally to the united states and today we find that we have abandoned our and the sea, we find al qaeda has taken over a strong hold their overnight , and it is one more reminder to us of just how bad things are going. as our allies become increasingly nervous and as more and more territory falls. stuart: what can you do about this? is not congress's job to run military and foreign policy. it is not your job. but you are chair of a foreign affairs committee. what can you do? >> one of the things we do and we just had a hearing yesterday in order to get this information out in front of the public one of the things we do is bring in witnesses including former military, former ambassadors, when you have the former ambassador from iraq say that he

repeatedly urged the president of the united states to take air power and use air strikes before mozilla for example was overtaken by isis that one defeat alone allowed isis to get their hands on the treasury, the central bank of the country they are the richest terrorist organization in history, all of its unnecessary. we are passing legislation using this as a forum, we are in the petter meeting with our allies such as israel and the king of jordan meeting with the ambassadors from the gulf states and hearing the same message from all of them, you are not taking this seriously, the wheels are coming off, isis is on the march and so is iran and your influence is waning and the barbers and that is replacing the stability that existed in these communities, that is the

message we're hearing. stuart: thank you for being with us today. thank you, sir. let's get to the economy. the government collected a record $1 trillion in tax revenue from october to january. that is $1 trillion collected in four months but we are still spending more than what is coming in. we ran a deficit of number $94 billion in the same four months. joining us from washington, steve more chief economist with heritage. this is a obamanomics red large, tax and bring in a kind of money and spend even more. absolutely no change at all despite last november's election. >> there is a change in these numbers. i looked through the report, this covers the first four months of fiscal year 2015 and the numbers leap out on the page. you know, when you talk about why the budget deficit is not coming down you know what the number one reason is? when you look at that report?

obamacare. the expenditures are exploding for this health care program. i looked at the expenditures for medicaid. obamacare is a massive extension of medicaid and exchange subsidies. do you know how much they're up? 30%, 30%. if it hadn't been for the massive increase in spending on obamacare we would be seeing this deficit coming down. military spending has been declining. obamacare is a disaster fiscally so even with record amounts of revenue as you just said spending and the deficit going up because of the health care program. don: stuart: previously on this program you said we are making a nice gain for the economy moving towards a 3% growth rate, but are you going to backtrack on that all little bit? >> no, no, no. i think the economy is looking pretty healthy right now. there are things that are unhealthy.

obamacare is a major negative no question, but when i say the economy is on a 3% growth path that is good but not where we should be. we should be going at 4% we should be creating 400 or 500,000 jobs a month so we are still underperforming but thanks to lower oil and gas prices, low interest rates and low inflation and the productivity of american companies which president obama goes around country bashing that is the reason the economy is picking up. stuart: i want to play a clip from evander holyfield from the last hour. listen to what he says about what is the fair tax rate. >> i would say i would say 10%. 10%. stuart: you want to comment on that? >> i love it. i have said for years i have known you for years, if it is

good enough for got it should be good enough for the federal government. we ought to have a 10% tax rate and it goes back to herman cain he had 999, we should have 10-10-10. the president proposed in his budget, 28% capital gains tax, he wants of 55% to 60% estate tax. of those rates would go up at a time when we have record revenue and define a i listened to your previous conversation. i have to get this off my chest. i watched that youtube video of the president clowning around about obamacare and here is the thing. he is making this goofy add all the problems with obamacare are becoming manifest people losing health insurance, we are not reducing the deficit we are increasing it so i wouldn't have a problem with climbing around if we didn't have spectacular problems with the program itself which the program simply ignores. stuart: i have a problem with the president of the united states climbing around and making faces in front of a

mirror. i am an old-fashioned kind of guy. >> you are not in millennial. we got to admit this president is good at reaching out to those 20 something and thirtysomething voters. that is what they get their news. they are not watching fox business. they are watching the comedy channel. stuart: those demographics are wrong. >> i stand corrected. stuart: see you soon. after the break and be a star karl malone making controversial comments about minorities and government handouts. what he said will be dealt with next.

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stuart: look at the cybersecurity stocks, doing well as president obama holds a cyber security summit in california later today. some of his best friends in silicon valley will not be there. peter barnes at the white house more details on this, who is not

going and why? peter: executives like tim clark of apple are going to be there but cyberspace is a twitter with the names of the executives who are not going to be attending reportedly because they are upset about lack of reforms in government surveillance programs that were revealed by ed snowden. people like marissa meyer of yahoo! mark zuckerberg of facebook, erik schmitz of google and larry page of google also i should point out their top deputies in security will be attending the conference. stuart: what is the reason for this? the people of facebook and google disagree with what the president wants to do in terms of surveillance? >> they feel he hasn't done enough to reform the surveillance programs ed snowden talked about and they are fighting him hard here in washington to make changes and fighting hard on capitol hill to

get congress to reform these programs and while they tend to favor president obama in their campaign donations in 2012-2014, you saw plenty of donations from these companies going to republicans on capitol hill who control the house and senate. stuart: thank you very much indeed. and be a legend carl malone making some headlines for comment that he made about government handout. i will give you the direct quote. here it is. we need to look in the mirror ourselves and stop waiting on someone to come march on our behalf. take ownership ourselves, make our community better and stopped looking for a handout. do something about it yourself that you can control land look at who is here. former nba player jonathan bender, a businessman in his own wife with us on the set, basically saying take care of

yourself, click looking for government help. what do you say? >> got to pull yourself by your own bootstraps totally agree. we got to look at ourselves in the mirror and got to be accountable for your own actions. stuart: does represent a big chunk of the african-american community or an increasingly important element within the community? >> it is a uncertain aspect and uncertain group that is not just african-americans but other groups as well that want to rely on the government but -- stuart: don't do this, come on, stand up, don't do this. is this the new voice in the african-american community? >> i don't know. if he continues to can be that voice. stuart: you have done something about it yourself.

you started on medical device company. you have some good news. it was a device for it joint pain. you were bought out. >> my sport model that i came on here. i created a new one leopard for sport for athletes and highly active individuals and that got bought out by i s gb. stuart: they made you a stock deal? >> yes and appointed me president of i s g health to coming and create these joint products that are out debased. stuart: did you do this? >> startup product out there. >> other than the one king -- this is always something a wanted to do. i said if i came back on the show would tell you in front of america that you chickened out. stuart: you won't get away with that. we offered you several

opportunities to play me at soccer on 48th street, we had the goals set up but you didn't show. >> i am here today. is not my fault. we got to go get it. stuart: how tall are you? >> i am 7 feet. they put this chair down to try to make me look small and i don't like it. stuart: you better come out. thank you very much for being with us. we are pleased your enrichment, selling a part of your own business. it did make you rich. >> we will see. stuart: always a pleasure to have you with us. check out this video. it is a dog sniffing out its owner from 20 blocks away, valentine's day love story you will hear all day. full details next.

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stuart: american express down for the second day in a row. costas as they won't takes annex cards. may be a problem if other retailers do the same thing. look at this, american express last two days down $8 billion in market volume. that hurts. different kind of love stories this valentine's day. i want to show you sissy, miniature schnauzer. her owner battling cancer in cedar rapids iowa. saturday night she ran away, she made a 20 block trek to the hospital sniffed out the owner. see showed up in the lobby, listen to this. >> woke me up saturday morning at 5:30 and said i got something to show you and came over the squirming dog, she was all

excited. all excited to see me. you just need this guy in here. stuart: that is a very nice valentine's day kind of store. how the dog sniffed out her own ears very much a mystery, 20 blocks to a hospital, extraordinary. a story for dog lovers. accompanied called cuddle clones will make a stuffed animal identical to your dog. send a picture and back, look alike dog stuff to. their web site has received so much traffic recently it crashed, reach out to the company, the will be on a program later this month. cheryl casone will not make any comment on that. if you are single and ready to mingle, realty track found the perfect city for you, ranked the best and worst cities for single people. cheryl casone the, start with the best. cheryl: a percentage of the population, number one,

gainesville, fla.. if you are single, gainesville fla.. whether you are widowed, divorced. stuart: people living alone. cheryl: 67% of the population of gainesville, florida is single. stuart: a college town. cheryl: some of the law but boston, massachusetts 62% of the population of boston. did you see? washington d.c. number 4 on the list. i am going back on this 62% as well. texas made the list as well but the joy, columbia, south carolina, berkeley, this is all singles. we are talking in berkeley, 62% of the population is single. that is what they're looking at but it is also just about a college kid, think about it you are widowed, divorced, never married, old, whatever it will be everybody.

stuart: any age. what a place. the worst please. cheryl: the worst places if you are single, number one frisco, texas, don't go to frisco, texas of your single. stuart: what is the proportion? >> 24% of the population is single. stuart: you don't do it by gender. is not bad for men but okay for women. cheryl: if you look at places like texas, highlands ranch, colorado mckinney, texas, just don't live in texas. and surprise arizona 30% of the population is in the land surprise arizona. stuart: would you like to be a single young woman in north dakota where there is lots of oil and gas drilling and a lot of jobs go to men so you are in

a tiny minority? >> made the best man win. stuart: would you like that? >> one of my going to do in dakota? stuart: it is cold. herman cain former ceo and presidential candidate unsettling buzz feed video. >> pretty good. >> that is pretty good. ♪ hi, tom. hey, how's the college visit? you remembered. it's good. does it make the short list? you remembered that too. yea, i'm afraid so. knowing our clients personally is what we do. it's okay.

this is what we've been planning for. thanks, bye. and with over 13,000 financial advisors we do it a lot. it's why edward jones is the big company that doesn't act that way. if you take multiple medications, a dry mouth can be a common side effect. that's why there's biotene. it comes in oral rinse spray or gel so there's moisturizing relief for everyone. biotene, for people who suffer from a dry mouth.

stuart: we are ready and thousand. a few minutes ago we dropped below, 18,000 is where we are right now first time this year. stocks making lifetime highs, travelers, visa, home depot boeing, lifetime highs earlier today. look at tesla. at stock is down, dead flat. big an announcement we hear supposed to be coming about a new battery, not for the tens lockhart but for your home. speculation that it is so powerful you wouldn't even need a generator, you can store all disparages unique in times of blackouts. david nelson knows a thing or

two about stock-picking. would you buy tesla after that very speculative report about an announcement that may be coming about a battery? >> noaa wouldn't especially if you look at the last quarter, you can see these are great visions and this is a wonderful company and elon musk is a visionary. he makes statements like we are going to reach a $700 billion valuation like apple that is like me standing on home plate pointing to center field and going to hit a home run lead you don't have to swing the bat, won't be judged for at least a decade on this. may be this will bear fruit bats and point i have to deal with reality and if i look at the earnings right now will they won't earn money this year and if you believe the estimates next year's trading expensive. stuart: he is looking like a bubble because he keeps promoting this thing in the future, the great thing he is going to do. >> he is a tremendous promoter. very good at it but look at the last quarter.

without a tax credit, which makes a big part of this story, $7,500 per vehicle that is wonderful for them, they turn around and sell tax credits, to $16 million last year, to the bottom line off of the backs of u.s. taxpayers. >> he didn't sell the cars. he is not selling the cars he is promising to sell. the numbers are not coming into his invented. >> the elephant in the room we are not even talking about is oil. oil has come down dramatically. these are elected cars. >> other companies coming out with electric cars to compete. did that compete? >> apple cart, and -- stuart: move on to change in the public taste for food we are moving away from processed food for its fresh organic but away from processed battery food we don't seem to like it, kraft

foods for example. down 3%. would you buy a company like kraft? >> i wouldn't buy the company? it is close to a high. they are not alone in this dynamic. no secret consumer tastes have changed. we are moving to a better life style. i don't think mack and cheese fits the dynamic. stuart: two stories those dealing with beings and mobile devices, start with zynga they are closing their office in beijing stock is down huge, 58%, that is one story. a similar story from another mobile game company, king, they make candy crush. they make a ton of money, totally different from farmville. >> at stock peaked in 2012 when farmville peaked. they have not come up with anything that is delivered and

the spending money and say we will spend money aren't stick with it or perform for two years, people -- out of time. no more patience with them. it is by far looking at the numbers 356 million monthly unique users for candy crush saga. that is a big number and i will say this. one caution on this game is they are starting to lose, people spend money on candy crush. but here is the thing. the revenue is there, if we are falling quarter to quarter. the story is people are losing interest in mobile gaming. stuart: we have been showing you the video all day long, the middle east is exploding and president obama is giving around on the video made to promote

obamacare. i will give you another click. watch this. >> the deadline for signing up for health insurance is february -- >> like any other wednesday. >> that is not right. february, february 15th. february 15th. in many cases you can't get health insurance, less than $100 a month. go to healthcare.gov. stuart: i got to tell you what shocked me was when i saw the president goofing in front of a miracle in faces and putting his tongue out. glad you are with us today. what do you think when you firsts on that video? you probably saw yesterday afternoon that it exploded. my first take was i am shocked that the president is doing this on camera what did you think? >> i am embarrassed the president is doing this on

camera. his timing is way off. if he's doing it to appeal to a new audience, an audience he doesn'teach he is turning off another larger audience. my definition of leadership has not changed over the last several years and this president is doing everything but those three principles, working on the right problems, working on the wrong problems, obamacare is an abysmal failure, asking the right questions, the president isn't asking the right questions, not even listening to the american people and prevent people from succeeding, obamacare is the biggest barrier this administration, and business expenses -- business success and personal success and he is embarrassing the american people by making this call of video. stuart: i don't want to change the tone but you did make, didn't using imaginary snow

pizza when you were running godfather pizza? you did a funky video. >> yes. stuart: you were the president of the united states. >> i don't have a problem with somebody having fun and doing light hearted stuff but not when you have got the president of france and the chancellor of germany negotiating a peace deal with russia the king of jordan taking it to isis, an effective foreign policy or strategy toward isis that is the problem. his timing of doing things like that couldn't be worse. it comes across quite frankly as an american, embarrassing to me as a citizen of this country when our president doesn't have it on the ball. stuart: herman cain, thanks for

joining us. i have a lot on my plate but we will see you again next week. >> next time i will sing imagine for you. bernard: when you really want to do that? we are running it now. ♪ stuart: put me back you have a good voice. that was good. >> thank you. that was a time when i actually could sound pretty good thank you. stuart: thank you, a lesson in obamanomics, take $1 trillion and get a deficit. congressman marcia blackburn on that next. ♪

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nicole: i am nicole petallides with your fox business brief.

the thursday wake up in 2015, the psychological number of 18,000. 36% for that dow jones industrial average, the s&p sitting at an all-time high and the nasdaq at the highest level since 2000. and record highs and black and decker. he wasn't 1.3%. revenue on the rise, revenue rose 20%. it is up 8.5%. alternately, a loss that says there cfo, stocks down 2.5%.

>> i think j.c. penney is the worst investment i have made known as a percentage of capital, underestimating what is required in terms of some combination of borderline and ron johnson creative genius. >> maybe out of context and the j.c. penney story. >> too hard and called strategic or otherwise. >> your idea was too big for what the situation -- >> you need to have the stars aligned and it would need to be

a private company to get that done. stuart: hedge fund manager bill ackman, a billionaire sat down for a 1-on-1 interview, the full interview at the top of the next hour, 15 minutes from now on risk and reward. do i have a number for you the government collected the record $1 trillion in tax revenue from october through january but we are running a deficit of $194 billion in that precise four months period. from capitol hill tennessee republican marcia blackburn, we are going to pick a fight with you but you have run congress. republicans running congress and i see no change whatsoever. we are taxed spending a ton of money, i see no change in any policy whatsoever. >> the house is changing those policies and i have my legislation cutting a penny out of the dollar, on the right

track. the budgets in the house this year is going to balance in ten years, at least we are turning this thing around on the right track. stuart: this president is telling you what to do. he is setting the agenda. he is making the running, you are not. >> i agree with you. republicans should be more aggressive in the house and senate. we should be setting the agenda. i totally agree with you. the american people are ready for bold ideas. they want us to lay out what we are going to do. they want us to go do some things with this budget like how do we divest ourselves of federal property we do not need? what are the steps that are going to be taken to reshape entitlements? how we are going to stabilize

social security and whenever we going to repatriate the $700 billion obama bar code from medicare in order to send up obamacare? stuart: what do you think will be your first victory for the republicans in congress? the first reversal of an obama policy? what will it be? >> the first victory is going to be a budget framework that is going to balance within ten years. stuart: is that of victory? >> that is of victory. if we can do that and move to reconciliation you are going to see us begin to defund some of these programs components and obamacare we want to get rid of like the employer mandate and cross state lines insurance policies that are going to allow 12 million americans, 12 million americans into the insurance

marketplace, defunding the operations of the epa, first thing, department of the epa and department of energy into one single agency. those are all things we are going to be doing. stuart: we want you to tell us when you win. what marcia just told us is she has lost the sound coming into her ear says she cannot tell what i am saying to her. i said come on back when you have got a victory in your pocket. >> maybe she doesn't want you to know. stuart: real fast, what does it stand for? >> i don't know. internal -- i don't know. stuart: interrupt and feedback, the thing we where in our ears. >> we do that anyway. stuart: you don't know what it stands for. a true american success story, woman who sells $65,000 worth of headbands and scarfs handmade per month. all on line. she is next. es equals great rates.

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top sellers and she joins us now. welcome to the program. let me get this right. people who want to sell handmade stuff goes through etsy , the online marketplace and you are on how much do you sell per month? >> 65 to $70,000 per month. stuart: it is not you making all that stuff, you have knitters who work for you. >> i have a whole team of people from shipping customer service, it is a business. stuart: it is fantastic because people who make good stuff handmade, homemade good stuff, there's a marketplace. a terrific idea. >> shoppers go there knowing what they're looking for. the don't have the cost of

traffic to your web site. we have our own web site as well ended is fantastic because they have search engines built in, credit card processing it is a turnkey way to start a business. stuart: that internet i tell you. change its something? did you start out making stuff yourself? >> yes. gradually as we have grown we have grown our stuff accordingly to meet the demand for production. stuart: you are one of the top sellers at $65,000 a month? >> that is correct, absolutely. it is in sane. stuart: don't ever say you are lucky. take credit. i am sorry i am out of time but thanks for coming on the show.

more from evander holyfield is next.

>> what are your politics? on. >> you know, i'm a for person who acts and thinks for the people. we need people who make great decisions with which direction we should go. stuart: all right. i'll ask you a personal question. you make a lot of money. you certainly have made a lot of money. how do you feel about paying more than half your income in taxes to the federal and state governments? >> don't feel good at all. stuart: oh. can i put you down in the conservative column then? >> well, i don't know what you call it, but it just don't feel good. but, you know, you have to do the things that are right. >> evander holyfield you can come on this show any time you like. i asked him, what do you think is a fairtax rate? he said he could live with 10%. couldn't we all. it will be up on our website if you want to watch the whole thing. my time is up. now time for -- what did

they say? what's that? excellent interview with evander holyfield. he's a conservative at heart. yes, he is. thanks for sending that in. now, here is dierdre bolton. dierdre: i'll be going to that website after my show. bill ackman. me guest. his fund returned 40% last year. we'll be speaking about strategy, his biggest mistake, and future investments. the white house holding a cyber security summit in silicon valley. some of the best known leaders there. others notably absent. we'll give the list. google and mattel trying to get younger kids interested in tech gadgets. pershing square was the top hedge fund in the world last year. founder bill ackman manages more than $18 million. his track record includes wins such as air products and chemicals, burger king