a man dedicated himself to the destruction of israel. why we're negotiating with him? i don't know. maria: sandra smith, always great. see you tomorrow on fbn. "varney & company" is next, have a great day. stuart, overto you. stuart: thank you social engineering on a grand scale. good morning he's working on his legacy. president obama will use taxpayer money to integrate wealthy neighborhoods. the department of the wants to end what they call deep-rooted segregation. and rich countries resume growth, perhaps we're right, the economy may be sprinkling receipt retail sales. and we told you about the dark net. jamie dimon lectures elizabeth

warren on banking. he says she doesn't understand it. >> and the drought is your fault "varney & company" is about to begin. ♪ >> >> baby you're a rich man. you live in a nice neighborhood and the president wants to engineer who your neighbors are. yes, social engineering on a grand scale, more in just a minute. several big names on the show today former senator evan bayh, what is the plan for obamacare. and a subsidized lien in a eflt

wealthy area. attention dog owners we have an app for you, think of air b and b for dogs. on the show 10:45 eastern. and cheryl casone of course monica crowley. let's get to the main headline of the day that we picked president obama wants to diversify wealthy neighborhoods. blake berman in d.c. explain it to us please. >> good morning to you. the administration administration is moving forward with a plan that's according to a one on the hill trying to maybe more neighborhoods more diverse. housing and urban development would determine where that housing would be constructed. the national council of la razza an action group saying it's about preventing discrimination and presenting housing rights. one senator from colorado say

it's a federal overreach, which is what rudy guiliani just pointed out to maria. and they shouldn't be holding hostage grand money. >> thanks very much as woo see-- we see. monica. >> i grew ro up in new jersey. there was the mount laurel ruling. it was challenged all the way up. it was about instituting low income housing in every community. there were at least some low income housing units no matter where you were in the state. it was implemented to some extent, didn't go so far. what president obama and the radical left wants to do here is to do it on a nationwide sis sis so you have low inmany could becauses in several

hills. >> all wealthy neighborhoods, monica. >> exactly. the cause of the recent recession, some would argue we're still in technically are not was caused by social engineering and here they go again. stuart: wealthy neighborhoods, assumed to be monochrome all white and then-- >> it's going to back fire on home values that's what's going to happen. it's going to backfire on the property. >> the left doesn't care about that. it's about getting lower income voters into the communities to spread the democratic votes around and make sure they get a permanent democrat majority. >> wealthy areas vote democrat anyway. >> a lot of them do. 79% say they believe it's more common to fall out of the mid

class than rise up into it. that's the american dream in reverse and that's going down rather than going up. >> yeah. >> and that's precisely the objective in the left. we talked about housing. this is the goal. get as many people dependent on government as possible, moving them out of the middle class and take out the aspire ration part of the american dream, through hard work and education you move up through the ladder. the left wants to throw that in reverse and are succeeding. high wages, people don't think they can start businesses or move up. >>. stuart: that's the opposite of what i felt and believed in when i came to america 40 years ago. >> they're succeeding. >> you'll have programs to support you if you're part of the lower class. stuart: the middle class are getting less--

>> adam. >> a taxi cabdriver informed police he picked up two men who might be the suspects they're looking for, richard matt and david sweat, and dropped them off at the 30th street station. which is the amtrak. in philadelphia they're trying to chase down this lead and police in philly are saying it's early on and they need to keep in mind the cabdriver didn't automatically call the police. >> the manhunt at this moment focused on vermont. yesterday we saw the authorities in vermont trying to secure the border because in the words of the governor there, stuart. new york was going to be too hot for these guys and vermont was going to be cooler. if the lead plans out, it appears they're heading south.

stuart: thank you, the personal information of 4 million workers were hacked. >> what is the dark net? >> it where the thieves and criminals and ne-er-do-wells trafficking, that's where they are communicating. stuart: it's a parallel universe. >> yes. stuart: you can't track it? >> some in this country monitor the dark net, a company out of colorado saying they're seeing willing-ins, sold on the darkness. this would give anyone access to computers. it's not just the office of personal management, but healthcare.gov and government websites that had nothing to do with that particular agency hacked into sold for money. stuart: what a story. got to take a look at the markets those who are open.

active. oil, down a little bit today, 59 cents, but close to 61. that's about the high for the year. price of gasoline up slightly you're looking at an average of 2.76%. jamie dimon joins me. he says senator elizabeth warrant does not understand the system. she's made a name of herself going after wall street. >> well i would disagree with jamie dimon to this extent. i think that elizabeth warren perfectly understands the banking system she just opposed it and tries to review it. she's a smart woman. she is expected aspect of capitalism, teaguing that's her area when she entered politics. she and president obama

understand the political system politically, economically, they need to undermine it if not right out destroy it. i've got two headlines. before the headlines, if you missed it. >> >>, a movie for disney could lose 140 million. and more than the flop that was john carter and the lone rangerer. george clooney takes on climate change. nike wins a right to outfit the nba. the deal starts in 2017 when the contract with adidias expires and the nba inking a contract reportedly worth more than a billion dollars. the first time the nike logo the swish mark will appear on the uniform.

nike was 90% chair. jerseys and shorts warm-up universe. a good deal from nike wonder if they get back about, like on a soccer ball? . stuart: that's going to happen. soccer balls all over. here is the question does russia's president vladimir putin have perfect judgment? look what he told an italian newspaper, before he met the pope. i can't think of anything at this moment. clearly god has built my life in anything i won't have to regret. monica. >> you have to add fire his great sense of confident. he came out on ktd. the world stage shows that his

actions and invadeing crimea. he would be stupid not to give those quotes given he's now in the driver's seat internationally. stuart: he's the guy who should be speaking to the pope. you talk about saving your sold, the put should-- >> i think i heard that god is going to have a different take putin? >> is that blasphemy? >> is that blasphemy? >> don't be offended. president obama authorizes 450 more ground troops in iraq trainers. here is the question what exactly are those advisors

actually doing? >> it's the case of you know after all of these years we don't have a strategy and we don't have a strategy ab the reason we don't is know the dell tory program. he doesn't want an islamic state, but he doesn't want to hurt anybody.

the real question that needs to be asked is "what is it that we can do that is impactful?" what the cloud enables is computing to empower cancer researchers. it used to take two weeks to sequence and analyze a genome; with the microsoft cloud we can analyze 100 per day. whatever i can do to help compute a cure for cancer, that's what i'd like to do.

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>> is it true that you can in fact in down state new york light the water? and you've always been able to light the water with a match. for hundreds of years. that's correct. that's true is it not? >> that's 100% true. >> all right. we've got more on fracking for you. in the 10:00 hour ohio congressman bill johnson represents a district that does indeed benefit from fracking widely done in his district gives him jobs energy revenue and tell us why we should keep fracking and what it means to his district.

that's at 10:30 eastern this morning. now this president obama is sending 450 more troops to iraq, calling them advisors helping train iraqi forces in fighting isis. the question for our guess, what exactly will the advisors be doing? army special forces officer, jim hanson he joins us from d.c. jim, there is a suspicion they're not just advisors they are forward observers, pointing the way where our bombs should fall. any truth to that suspiciousnsuspicion. >> stuart if that's true that would be fantastic. that doesn't seem to be the case. the mission thus far, doing training, stuck on the bases and unable to destroy with commissions. they need to get on case and do some coordination so we can

beat isis on the ground. stuart: and i've read a paper, this is back to iraq. if they're on the base and hardly near the combat zone that's hardly a return to iraq. >> anybody who says that is not paying attention to what president obama is saying. he's stuck in the mindset, we can defeat these people and then the arc any-- the danger is that the iranianses shias, and doegoing into shia areas. >> the idea of going in and trying to train the iraqi army is a lost cause. that you're saying that are you? >> i wouldn't say it's a lost cause.

i'm not going to saying deploying 450 americans over admitting he doesn't have a strategy. the military has given him a strategy and option. we don't have to roll tanks from baghdad to damascus. but we have to act like that. stuart: you're an army guy, you know what's going on here. what would it take for him to win marching with the flag in the air. we've had colonel allen west knows a thing or two on the program. he says 10,000 troops would do it. would it? >> i think it depends on what troops and where. he's training the sunni to fight against isis. the zune tri tribes know where

the bad guys of. i would employ a lot of units and root isis out where they live. if you do that and provide legitimate air support in the 10,000 troops that's what it's going to take. stuart: if it was you and going back in there in that kind of roll role you'd watch your back. can you trust your so-called iraqi allies? >> we've had the same problem in afghanistan. the green on blue and we have trouble vetting them. it a danger, but if we're going to allow the caliphate we lose credibility. the black flag has come down no

matter the risk. >> thank you for joining us sir appreciate it. stuart: apple's tim cook says he will not sell your data. turns out sandra smith was right though. they are still making money off your data. sandra is going to take a victory lap in a moment. >> whatever. [laughter]. stuart: inventory that's what i say to this they say they don't want to sell your data and not going to sell your data, doesn't mean they're not checking it for their own purposes? >> if they're using it for their purpose, they're making money. >> they're saying they're not selling the data. two very different things.

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fast in tom's office. fast in other tom's office. fast in the foyer [pronounced foy-yer] or is it foyer [pronounced foy-yay]? fast in the hallway. i feel like i've been here before. switch now and get the fastest wifi everywhere. comcast business. built for business. >> last week tim cook said he's not going to collect your personal information and he's not going to sell it. now, the new york times is saying, hold on not so fast because apple does collect private data in many ways and uses it to build and market its products. sandra was right. cheryl. >> no actually i saw sandra say that on your show. i was watching from my office and i completely agree with her. apple, they're very open about collection of data with their customers. i have many apple products and i'm kind of in the apple walled

garden, if you will as a consumer, but they're very clear about we are collecting this data. look, i think it's buyer beware, of course tim cook wants my data and market and sell it to advertisers, i don't care it. there's nothing that interesting about me apple can know all they want. stuart: he was looking for good pr on the privacy front. he probably got it. but no question all of these companies collect the data massage the data they know what to do with it they make money out of it. >> they have to. stuart: it's priceless information and that's how they do their business. >> i agree with you and sandra. if they want to use my data and market it and the stock goes up 10, 15%, fine. i have absolute faith that apple stock is in my 401(k) go ahead. stuart: and they've got to profile us. let's talk about netflix, that stock is it on a tear hitting a series of all-time highs. next, a goest who says sell it.

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stuart: you know, it is june 11th and they're still playing hockey.

the blackhawks that even the stanley cup finals. they beat tampa bay to do one last night. the opening bell, 10 seconds away. they started to ring the bell before the trading actually begins. they are clapping and cheering and ringing the bell now and in two seconds they'll start training. here we go at exactly 9:30. update points, 10 points. here we go. he's up 11. this is the triple crown of financial broadcasting. away we go, ladies and gentlemen. the markets are indeed open. look who was here. sandra smith, cheryl casone, sasha liddy in chicago. the first question on netflix. i cite you are going to say cell that they did >> i think netflix is a monster. we broke out after earnings after major resistance. we had targets above 70712 to be

exact. stuart: can we say where it is at now? it's way up there. hold onto it. get the extra $20 or $30. you have a strong stomach? >> if you are in it. we are not in it. stuart: there are people out there who are in it. do they sell at 675 or take your advice and get it over 700. >> to be clear i don't give advice and make recommendations. me personally i would be selling it for shura $712. tree do we hear you. 673 up another $2. nike will pay roughly $125 million a year to outfit the nba. sandra is that a loss leader? sandra: this is huge. they have 93% of the basketball footwear market.

they gained their stronghold in the basketball arena. the adidas contract in 2017-2018 season. a billion dollars it is estimated this is worth. stuart: nike is paying a billion dollars. sandra: it is estimated the contract is worth a billion dollars for nightly. bring in a billion dollars. stuart: but they are paying a billion dollars. to get into the market. it is even steven. sandra: a very good deal for nike. stuart: they will have like soccer players with the logos all over. sandra: nike sponsored me in college. i'm not advocating. stuart: us who shun your four head.

sandra: -- stuart: did they pay you? sandra: of course not. college athletes are not professionals. stuart: scott, do you want to explain this to me? what is going on with interest rates? >> obviously you've heard about the cuts heard about because heard about the cuts we've had in disneyland and korea today. what the bond market is doing what the feds are not doing. i don't think we should be raising interest rates. 1990 are manufacturing jobs were 20% of our gdp. now they are 10%. i'm not going to get into believing the numbers even though they might come better than expect dead are some that we could raise rates for. we raise rates to cool off and economy. the last thing on the last big leap with with his face. the site has got everybody thinking upside down and they think people will be convinced

raising rates will be a stimulus for the economy which is absolutely ridiculous. stuart: you got it out at the end. new zealand raised interest rates today. is that correct? there is a company called talks works in the cloud. nicole explains. >> i will start with how big of a winner. how about over 10%. now it's 13%. what do they do? first of all analysts said they have enterprise traction. what is that? who cares. it keeps your data safe. they use the internet come story business data. all of our entrepreneurs that are watching back in the day that i was worried about that staff, they do it for ge

chevron, astra seneca. they continue to gain big names of clients. hewlett-packard halliburton and some others. that is why they continue to grow. they gain in revenue, sales, customers and raised around the period and ipo in january is nowhere near closing 23 that day. stuart: there we have it. it is hot today but it's got a history. look at disney for a moment. tomorrowland moment. tomorrow land and its worst-performing movie ever. it was a preaching to the same climate change climate change climate change. >> george clooney normally sells that that didn't turn out to be the case. up until earlier this week until my post $171 million worldwide. that would be okay if they hadn't spent $330 million to make the film. right now it's on pace to be one of the worst-performing film

suburb. >> george clooney really as far as a hollywood star and not so sure he's got six studios behind him. disney will be okay. they've got lucas film, animation. torch clearly not so much at this point. stuart: good retail numbers up 142% in may flat in april, up in may. maybe i was right. maybe the economy is a bit stronger. i'm prepared to say that. if you want to count back in your graces i in your grace this is a good performance for the u.s. economy you can certainly do that. other metrics are not so good. weak job participation. stuart: i say there is a glimmer of hope. "the wall street journal" says optimism in the economy. rich countries are growing.

>> still a lot of people in the country who don't have jobs. i'm just saying. stuart: you sound like my teenage daughter. moving swiftly on. the share price of amgen biotech company got approval for its cholesterol drug. not bad. 1.5%. >> amgen has a similar drug in the biotech space for cholesterol. this advisory panel says people who have super high levels of cholesterol go ahead and use this drug. that is what they recommend to the fda for approval. this could be a big boost for amgen. regeneron also has a similar drug with restrictions. amgen getting a better nod from the fda advisory panel. it's all about the cholesterol. you've got to watch it. >> there's no way he has high cholesterol. have you seen what he eats? stuart: two slices of whole

wheat toast no butter. one or two grapefruit, nonfat yogurt with various, cnn. that is my diet. two cups of coffee black. i want to get back to jc. you are like one energy stocks. explain so. >> i really think the perfect storm could be brewing here for a company well known out there chesapeake energy. we are starting to see momentum. it is not just oil. a ton of exposure in the natural gas space with smart money if you love really loading up natural gas right now. from a risk management standpoint is the most important thing. it's a stock not just a company. 13.5 yesterday's high those were the large boat. if we can get above those those

which are this weeks high we get a monster shortage squeeze. this is one of the most heavily shorted names in the s&p 500. it starts going, they have to cover and that can be extremely powerful. stuart: you almost got the buzzer with all that stuff about shorts. you can get squeezed into a situation where you've got to buy it. do you think that is happening with chesapeake? >> the potential is there. about 13.5 you may want to about 13.5. the claim as is their national state berger something. stuart: it is thursday late breakfast, early breakfast in california and were up 67-point. for millions of government workers with information out

there. that information is for sale. it is for sale in the darkness. we've got it. be smart you probably know xerox as the company that's all about printing. but did you know we also support hospitals using electronic health records for more than 30 million patients? or that our software helps over 20 million smartphone users remotely configure e-mail every month? or how about processing nearly $5 billion in electronic toll payments a year?

in fact, today's xerox is working in surprising ways to help companies simplify the way work gets done and life gets lived. with xerox, you're ready for real business.

stuart: you get the opening pop in the market opens up and then it settles down to a narrow trading range. that is what is happening. we been up 60 points for a couple minutes. let's see where we go. two big names. whole foods new cheaper stores coming next year. forty dollars a share. lulu landman, the founder chip will send may sell his entire stake in the company. he's had disagreements with everybody. lululemon down 2%. california governor jerry brown on the historic drought putting the blame on global warming and

overpopulation. too many people. that's the problem. >> no the problem is he doesn't have a true grip. you've got water been stolen. stuart: no, you are wrong. you are flat out wrong. they've got a drought crisis in california because for 30 odd years they haven't built a single reservoir. there's an enormous amount of water follows southern california, flows into california. they will collect it and now they've got to ration it. >> you actually agree with jerry brown? true to the people who run california have never taken the steps required to account for the increased population in california. they knew they were all these people coming. why did they prepare more reservoirs? >> do you think brown is doing a

good job managing the crisis? this happened last year. stuart: i don't think he's doing a good job at all. sorry, go back to your point. >> i lost my point at this point. the stuart: why are they running trillions of gallons of water into the pacific ocean every year to save a small fish? why are they doing now? >> that is california for you. stuart: they are doing a rotten job. you buy trillions in the ocean because you want to say the fish which is about one and a quarter inches long which is not that threatened anyway. >> were as big business in california? this is a state not just about l.a. in northern california. stuart: big business in california. hollywood entertainment in the south is totally over the cliff for global warming. in the north is the technology

companies and they are all libertarians doing so well. stuart: wherever they get the water from? you don't think there's a little bit to deal with? >> maybe they are the ones that sold the water. stuart: i jumped all over it. i'm sorry. i really am sorry. i've been nasty to you today. look at this. the information on 4 million government workers. yes it has been hacked. now it may be on sale on the dark web. here is how the dark web was explained last week. roll the tape. >> it is still very popularly used. it is easier to use now than a few years ago. fairly easy to get into the darkness. the markets are not going away either. many more copycat brackets appeared and they grow and grow

all the time. stuart: okay, okay. what is it. i need it. i need someone to tell me exactly what is the darkness. shayna is going to tell me. can you explain it to me what is the dark knight. >> i will try my very best. there's three things to know about the dark knight or the deep web. contrary it is not easy for in person to get on the dark web. a series of ip addresses. you have to have special tools and software to get in. basically a series of numbers often changes. once you get in there's a series that e-commerce for a tech term, e-commerce sites where people are buying and selling goods that they do it anonymously and their alternating points to do it. it is a form of payment also anonymous in the very thing is

there are certainly felt in the fbi and other agencies on the darkweb. it is hard to find anybody because when they use ip addresses they bounce around from different computers. if you shut one down another one pops up in a different ip address. it is hard to understand. you need to know there's information out there then maybe being sold that we should be concerned about. stuart: you are a techie. you know what you're doing with computers. could you in a half-hour get on that of darknet. >> i could not. however i know people who could. so i would call them up and they could get on the darkweb in a half-hour. someone who had some sort of tech will not be able to quickly hack it. the issue you're able to talk about today's information out

there on the darkweb being sold. it is secondary on this marketplace in the primary issue is the government and companies need more attention to security in the first place the database store. stuart: if you spend the time and you've got on the darknet, you would he anonymous. nobody could really track you. is that accurate? >> is very hard. there is a .1% a year could be found. because the ip address is bouncing around from different computers all over the world and not to mention the actual sites themselves change ip addresses is very, very hard to nail down who is doing what. stuart: can i make the assumption the darknet is used by drug dealers people who want to launder money, people engaged in criminal activity. it is called the darknet.

can i assume it is indeed an operation. >> you can assume those things are happening. not everything is nefarious. there's a hidden wikipedia on there where people share information that might not be on the open wikipedia page. who go in and buying and selling drugs or data or other sensitive information is more likely to happen on the dark web than anywhere else. stuart: would you do it just out of interest? would you ever want to figure out how to get on it? >> i am curious. what we were reading about today and the new data out about what is available for sale. i am curious to understand it more. i would never do anything on it but i am curious and i might need to sit down for a few minutes. stuart: is there a single person

or thing organization which has put darknet together? >> nasa makes it a powerful tool that a series of people around the world are contributing to and moving sites around. first it was a way to get data out that wasn't available or people fell should be available for west end on the public web browser and because of that community has formed and it's a strong community and it's global. stuart: scena, thank you very much indeed. a difficult subject but a good one. we appreciate it. moving on, i've got this for you. rupert murdoch is giving the ceo position to james murdoch his son. he will remain an active and become executive chairman. lockwood will become executive cochair.

chase kerry will become executive vice-chairman but no longer be president and ceo. he will stay on to work with rupert. this is a matter of succession. this cooperation has been working for some time. well thought out plan according to a company source. the parent company of the network. >> this is the parent company of fox business network and fox news channel. these plans have been in place a long time and rupert in my personal view has relied heavily on his sons ended is the necessary transition for the comp me. rupert still very active. it always depresses me rupert murdoch to this day. stuart: the man who runs a company is moving into the publicly traded company. you have to have a succession plan on this is that.

it's formalized and published in this instead. >> as you were sharing the breaking news, it's been a very crucial member and trusted advisor. he's out in los angeles a lot because this is news corp. and 20th century fox. the units companies. these are small in a gigantic global will strictly an empire that rupert has built. it makes sense to as several people run the various businesses. stuart: by the way, no impact on the stock at 30 299 of 3 cents. no impact whatsoever. twenty-first century fox. no impact. the succession plan announced and it is in place. it takes effect is the next board meeting. we do not know whether the next board meeting will take place. the succession plan there it is

on the next board needed when the board meeting occurs. no impact on the stock. that is big news for us here at news corporation. the big board is. nice game. 86 points, 18,087. there you have it. let me make a quick comment on what's going on today. at 87 points. the dow is back 18000. i think there are some glimmers of hope the economy is a little stronger than we thought. we arrived 92 points. maybe something is going on in greece. i'm not sure about that. maybe that is a factor too. >> i was looking a retail sales this morning than it wrote. vehicle sales are improving not mean the economy is picking up. you could make that comparison. cars especially during her session with a lot of americans did not buy new vehicles. they couldn't even keep their homes at this time. i have to say i digress back to

the theater told you earlier. we have to be very -- because the economy is doing better we have to be careful. stuart: one more detail tomorrow reported to give the leadership role to james murdoch is fun. the succession plan is in place. i want to tell you about roger ailes who runs fox tv networks across the board. people still reported to rupert murdoch. roger ailes founder of fox news will still report to rupert murdoch. quickly with asp.or seagull. no we don't. hold on a second. the dow industrials up 81 points. i want to repeat the succession plan for news corp. at the top has now been revealed. rupert murdoch will give a leadership position, the leadership position to his son james murdoch. i want to repeat the main point

for myself. that is roger ailes will continue to report to rupert murdoch. roger ailes is the founder of fox news. he is the man who hired me and brought me into the fox company the fox family. i formerly worked for cnn and "the wall street journal" and it is roger ailes who brought me personally into this network. he will still report to rupert murdoch. >> oversees fox business network, as well as the affiliate stations of fox news affiliates across the country and oversees fox news radio. we are part of a broader called of fox news that covers all parts of media whether it's digital, radio television. i think that is wonderful. he brought me in as well from cnn whereas working at the time. it will be my ninth year of fox this year. >> it was about the same time.

roger brought me in. >> you know where they first ran in the first person who welcomed me to fox news channel before fox business network. and i still like you. it's strange. stuart: i've got to repeat the succession plan is dead at news corporation. then waited for some time. it will be voted on the next board meeting. no impact thus far the two stocks. we will be back in just a moment.

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fresher dentures, for those breathless moments. hug loud, live loud, polident. ♪ ♪ . stuart: we are following a breaking news story rupert is giving the ceo position to james murdoch his son rupert will remain active in the company, very active and become executive chair. andand and he will become vice chair, and james will no longer be suppressant cochief

operating officer. he will stay on the company to work with rupert. this is a matter of succession news corporations has been working on it for a long time now. it is a well thought out succession plan. liz macdonald is here. quick comment, please. >> well, you know, this is a company that has been built into a multibillion dollar asset that is widely tracked around the world and it has been in the place for sometime. stuart: i want to move on to the manhunt of the escaped prisoners. authorities are looking into a possible lead in authority. they believe a cab driver picked up the two men at 4:00 a.m. took them to the third street amtrak station and they are looking for video recordings surrounding the cab ride. more developments coming in about the female prison worker joyce mitchell, she's believed to play a role in the escape. now it's reported that she may have been in love with one of

the killers. right now the state is offering $100,000 reward, i think that's -- >> i do want to add something else, we began tracking this on mornings with maria and there are reports out of philadelphia that we cannot confirm yet, but they're talking to that cab driver that he picked up two suspects at 4:00 this morning in downtown philadelphia and matched the suspects descriptions and then he dropped them off at a station picked up another fair and then called the police, we do have fox right now en route to philadelphia the follow-up from philadelphia, they are talking to that cab driver and they're also looking for the root of the cab and they're going to pull surveillance video along that route to see if they can identify on a camera these two suspects . stuart: was it this them? >> we don't know . stuart: all looking in new york state. >> one of the suspects, though is very familiar with mexico and there was early

speculation that these two were going to head south head of opposite way of we know we were going to be looking for them, which is canada . stuart: a long way. >> that's a long way to mexico from new york, but these guys are very smart stuart. very very smart criminals . stuart: okay. isis no longer the jbt. two of al-qaedas spiritual leaders say they're barrel functioning because of isis. last hour former special arm forces said this. >> the iraqi arm is not capable of doing this, and that's because the iranians are helping them. they're going into sunni areas and they going to be atrocityities, that's the problem for the larger areas . stuart: remember it was president obama who referred to isis as the jd team. now president obama is sending 450 more military people to

iraq to help in the fight to train iraqi enforces in the defensive baghdad. check that big board. we have good retail sales. it was a good number this morning for the month of may up 1.2%, stock markets reflecting the economy we're up 19 points close to 18,091, and then there's netflix a tear all year, a whole series of new highs pulling away this morning down $2. but still at 668. the price of oil is down right now but still pretty clote to its high for the year, 6162, that's the high, and the real moves are taking place in the bond market bond price is down, the yields are up 245 look at that on the yield on the ten-year treasury. here's one of the big stories of the day. president obama wants to diversify wealthy neighbors jason riley is with us.

as i understand it, jason the president wants to use taxpayer money grants, community grants to open the door into wealthy white communities for people of color. have i got it right? >> yeah. that's what it -- the administration wants to do. there's a long history. an ugly history of trying to to sort of social engineering. and let's be clear of what's not going on here. this is not about wealthy suburbs discriminating against people black hispanic, other people who want to live in those neighbors. this is about some bureaucrats in washington wanting to color coat these neighborhoods for esthetic. and what history shows stuart, is that when someone can afford to live in a neighborhood of a different race the residents of that neighborhood don't have much of a problem with that. it's when the government tries to shoe horn into people who otherwise would not be able to live there. that causes all kinds of

racial tension, and i fear that this will do the same. stuart: why do you object to it so much? >> because a people should be able to live where they want to live. and that's the first reason. but the history that is trouble so many, again it's created all kinds of racial tension where this has been tried all parts of the country over years. and someone should and hillary clinton about this too. and i say that because she has "she" any of his a suburb suburb of new york city and it's on hud for not being duress enough and there's trying to put more in traffic law. and i'm sure she didn't move there for the diversity. so i would be very curious to know what she thinks of this plan . stuart: there's no vote in this at all. >> no. stuart: this is an administrative action, is it an executive order. >> in a way and again it's very important here. this is not in response to discrimination going on,

there's no about housing discrimination, there's no stacks of people saying, oh, i tried to move and the realtor wouldn't show me a house. that is not what's going on. this is done for a esthetic reasons, we want to sprinkle black and brown people because it will make us feel better . stuart: but it's the white people that have the money that's why they live in these wealthy enclaves, that's a -- >> well, jay-z and beyoncé don't live in the hood. i mean it's not just wealthy white people who move out of bad neighborhoods and into better neighborhoods who have the means to do so. and, again, this is not about racism. this is not about discrimination. back in the 60s fair housing act, and it worked. if you feel discriminated against, you have legal recourse now. that is not what's going on here. this is about social engineering . stuart: jason, hold on for a second. i've got to before a break out for breaking news. you're looking at a live shot

in virginia, a counterterrorism case. a virginia team pleading guilty to helping isis. the hearing happening just moments ago. it's believed the first time a american teenager has been convicted of assisting the terrorism group. he was 17 years old arrested in his home, and he used the internet to find isis contact overseas, made travel arrangements with a 18-year-old class made. they also say that isis problem go ahead and alikely influenced it. that's what's going on right now in virginia. and we've got this for you. he's not sure elizabeth warren understands how global banking works. that it's ayou a statement. >> neither did jamie or john mac or dick followed or just

any baker in 2008, they had no idea what was going on. with elizabeth warren says a lot of stupid things, but one of the things she's right about is that banks are too big. that they're on the taxpayer dime and at some point when we have another implosion in the markets those banks are going to blow up and the taxpayers are going to be bailing them out again. now, her prescriptions are all socialist, i mean it's not fair. just listen to what jamie does -- and i love jame would he be and i've had the conversation in the past. she runs a commercial and investment bank. the commercial bank is essentially taxpayer guarantee because there's fdic on any deposit up to $250,000, which is every deposit. the taxpayer on the hook then is $3 trillion worth of deposits at j jp morgan if they go under and this bond

market and all the crazy stuff and blows up the bank, which is almost what happened in 2008, they have to bail out -- the taxpayers are going to have to put up $3 trillion that's more than three times the package in 2009 . stuart: yeah. >> this is a serious issue. her prescriptions are crazy but what she's drawn attention to is a real problem. now, the question i had is why isn't paul ryan and all these republicans coming up with free market solutions to this insane problem that we have? there are concerns that are doing it. i've read about this. people at aei have written about it, and heritage. this is a real problem. they're going back on their morals saying going back on their word. it's not a free market, when you insure the deposits, it's not a free market . stuart: now, there are accusations of sexism against jamie because it was man explained to a woman about banking is that --

>> i mean it's defined as a man talking in condescending terms to a woman to explain something. i think women just basically ignore when men do that. but, you know, to charlie's point, sandy in city group also said break up the banks . stuart: yeah, but he said put them all together. >> let me finish. also federal reverse officials like james said break up the banks and elizabeth warren brought it up time and time again, also a feud and said he's resigned and being paid too much as a banker . stuart: that is wall street money going to democrats. wall street wants to support winners. they do not want elizabeth warren to win. >> well, they think hillary clinton will, you know, appease warren, and we should say something else. you know, elizabeth warren, jamie talks down to everybody. i mean i love jamie, but

that's what he says. for him to take a feminist attitude, this is the way the guy works. a brilliant banker. but where she is on the strongest grounds is that these blanks too big because we're on the hook for these things . stuart: here we are. dow jones still up 93 points, everybody, closing in on 18,100, not bad performance thus far this thursday. and then we have this. putin and the pope, the russian president showing up to the vatican about an hour and 20 minutes late actually. yes also says he has absolutely no regrets in his life. we'll be back

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stuart: putin showed up over an hour late with the meeting with the pope. he said he has no regrets of the course of his life, none

whatsoever, and he said he's got no regrets because god organized his life. first, liz. >> no, -- no regrets. one of the most human rights records in the world, you know an economy where apple shareholders can buy the entire russia, that's how the market capitalization is in russia. it is worth less than one stock in apple. so for putin to say this, this is at a time where we that he's trying to -- he's basically waging war in ukraine, and it's very little human rights in the country -- stuart: so why is he meeting with the pope? he's got no regrets? god organized his life? >> i'm surprised that the pope actually taking a meeting of this sort. i mean if you look at the human rights record of putin this is a former kgb official, and i don't want to say too much on the topic we've covered this before but --

well, you're catholic, why would the pope take a meeting with putin? . stuart: wait a second, judge told us that putin travels everywhere with a priest who celebrates mass every day. >> that's according to -- stuart: i don't know. but there is some talk about the reunification of the catholic church in the west with the east orthodox church in the east, maybe the conversation was reunification, nothing to do with ukraine or anything else. >> catcatholic pope have reached out to change their minds in how they basically approach humanity. and, you know, with the pope doing this, it's totally in line with what the catholic . stuart: it's exactly what should be doing. >> right. stuart: what's wrong with if you're bad guys, save your soul. >> that's right. stuart: and change the soul . stuart: and change. show a few regrets.

[laughter] let's go to obamacare. there is no plan b. if the court votes against the supreme court against subsidies, there there is no plan b. you know, that could be a problem for republicans. let's bring in former senator he is a republican. senator, you know this really is a problem for republicans if the court says "no" to subsidies because those subsidies are paid out in republican states. if they're withdrawn then republican governors have a problem. what's the plan? >> well, stuart, i think you're correct in your analysis, i happen to be a democrat a more modern democrat . stuart: that's okay. >> i've been called a lot worse, trust me . stuart: i thought you were a republican because you are so much of a moderate democrat. i was confused. >> i'm free market kind of guy. stuart: excellent. >> but i do think my friends in the republican side do have a problem because 6.5 will lose health care, they're

overwhelming in republican states and if congress doesn't act, which congress is having a lot of trouble acting these days to do something about it, there's going to be a lot of chase. so what i think what the president is doing is dealing with the rub relations battle to blame with the republicans if the court does strike down the subsidies . stuart: there is some feeling that this is what the president and his administration intended. that mass chaos would push us to a single pair payer system. do you believe that. >> well, there are in the democrat party whom the a single pay system. there is no question for that that was going to get to the united states congress. so my own guess that that's giving them way too much credit for planning ahead, but they would create a certain amount have pressure for that sort of thing. but this congress, as you know with the republican majorities and the house and the senate, no way they're going to go single payer . stuart: okay. but do you think we're going to get this chaos? what do you think is going to

happen? >> i think there's going to be a real intense debate within the republican party. there are going to be some on the right who are going to say kill the whole thing just let it play itself out. some more practical republicans who will realize wait a minute that could really cost us the senate, probably not the house, but the senate and the presidency, we can't do that. my guess is what they're going to try to be of, they'll bury obamacare but thenress recollect temporarily some subsidies so that these people don't get kicked off. they'll redefine the definition of a small business because not as much knowledge businesses are affected, they'll spanned the full work week to 40 hours you'll have insurance reform to create a national market for insurance. they'll do some of those things but at the end of the day they're not going to allow 6.5 millions to lose health insurance . stuart: obamacare is not going to go away completely no matter what happens with subsidies or no matter what happens in the future?

you agree with me? you're nodding your head. it's never going away. it's here. it's going to stay some form or other. that's true? >> in substance, a lot of it will remain, they'll try to repackage it to make look like it's not the same, but, for example, preexisting conditions, if you've had you can answer or heart disease they're never going to go back to the old days where you could be uninsurable because of that. age up to 26 to remain the have on their policies, i don't think they're going to remain those things. but how could you get people to get insurance who can't afford insurance again, they will say we've killed obamacare, it doesn't exist but big chunks of it will be repackaged and in essence in substance will remain in place. stuart: real fast, there was some talk that you would run to the presidency. as you look at what -- you're laughing. >> you don't want to scare your viewers like that, but i appreciate the comment .

stuart: first i called you a republican very sorry about that. >> not a problem . stuart: give me 20 seconds. do you think president obama has changed america for the better? >> well, he herniated a very tough hand, the economy was terrible, we had two wars going on, so i think he's made some progress in some areas it wasn't always exactly what i would have done. i think right now we have to focus like a laser how do we get this economy growing? how do we get real wages rising in a competitive . stuart: correct. i've got to stretch this. one more second. are you a democrat who believes in individual tax rate cuts? >> yes. we cut taxes when i was -- not individual rates but other taxes when i was the governor of my state. so sure i think it's a good thing in a country founded on freedom if people can keep more of their hard earned more. stuart: you're a republican. i don't care what you say. you're a republican. >> no, i'm a practical sensible democrat. we need people like that on both sides i hope . stuart: all of the above.

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meeting. media buzz host, he joins us in the next hour about 30 minutes away. actually 40 minutes away to be precise. a police officer shutting down a little girl's lemonade stand because she didn't have a permit. listen to this. >> it is a lemonade stand but we also have to have -- we have a permit, they required. we have to follow by the health -- state health guidelines. . stuart: her mom was on fox and friends this morning. now watch this. >> i think that's ridiculous. i think they're 7 and # just trying to make money for their own cause. >> we were trying to raise the money so we could -- stuart: see this is where government just puts its heavy hand -- >> yeah. stuart: even on little children in a let me nature stand. i think it's pathetic. >> so we've seen this in georgia, iowa, wisconsin, they

are now going to give out the lemonade for free, it's a real lesson for children to see how the government is heavy handed in dealing with things like a lemonade stand . stuart: if you give it out for free, did that mean you don't have to qualify for the local health donations. >> possibly, yes. they're asking for donations. >> to be fair, yes to liz's point, you know, asking the mother of these children for a permit was a little -- a bit of an . stuart: to go and get a permit? are there -- don't these people have any idea what it takes? >> obviously the police officer thought that she was doing the surprising following her duty by . stuart: what did she in the same of safety, you put little kids that jump through hoops to get a permit? >> yeah, we've got real criminals refusing the border every day. . stuart: we should be outraged

at this. >> if anything there should be children trying to figure out how to fight dackback . stuart: is there no reamed that america will give up in the name of safety? that's a great question. is there nothing they won't give up? >> i can't answer that . stuart: right. let me move on bring explode. what do we do when almost 80% of us say you've got a better chanhe middle class than rising into it. how about that middle dream? and to frack or to not frack? ohio has an interest in this. congressman bill johnson is here. they frack in his district. is it true that you can, in fact in down the state new york light the water? and you've always been able to light the water with a match for hundreds of years? that is correct. that is true is it not? >> that is 100% true

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stuart: up 56 points now. we have been up a little bit more than that, but now we're up 56. this is 20th century fox. that is the parent company the stock of the parent company of fox business network. here's the news. richard is giving the ceo to

james, his son. rupert will remain active in the company. this is the succession plan within the family at news corporation. listen to this. 79% say they believe it's more common for people to fall out of the middle class than to rise up into it. sherrill that's the reverse. >> uh-huh. stuart: of the american dream. >> right. stuart: , which i understood 40 years ago when i came to america. >> uh-huh. stuart: this is the exact opposite. >> well, if you look at what's happened to the middle class and the shrinking middle class, one of the problems is if you slip down into the lower class, you have government programs that will happily give you everything, every subsidy that you can imagine . stuart: now we're going to have the democrats president obama is going to exploit this. >> yes. stuart: he's going to say it's because of the nature of capitalism, it's income inequality we've got to fix that we've got to tax the rich and give to the poor. this is how we're going to fix it. it's on his watch that the

american dream is falling to pieces. >> yeah. it's because of the identity crisis has happened on his watch the american dream -- income inequality is not really the issue. it's the fact that entrepreneurs like steve jobs, michael dell have risen out to go to the upper brackets of the income stratosphere. so it should be remembered time and again that throughout the history of this country income inequality is not the issue. it's the entrepreneurial spirt and middle class drop down and move up . stuart: encourage to move up. not encourage to stay where they are. >> that's right. stuart: that's the point. >> or there's no permanent rich mans club, there's no permanent middle mans club, no permanent poor peoples club . stuart: thanks liz. i want to get back to the ipa study, which says fracking, you know, when you dig deep under ground and bring out the natural gas the epa says it does not cause widespread damage to drinking water. no arm.

yesterday we had fracking organizer on the show. listen to what he is. >> that is 100% true, there's a documentary where you see someone on camera lighting their top water in new york, there's no fracking in new york as we know, so lighting your tap water has nothing to do with fracking. george washington lit his water, it's in his diary . stuart: believe me, ladies and gentlemen, you can light the water and it has nothing to do with fracking. join us now bill johnson he represents the 6th district of ohio. of course welcome to the program. there's a lot of fracking going on in your district i believe. >> absolutely, stuart, we've had over $28 billion of investment from all the gas companies and some of the most poverty regions of our country going after the abundance of

oil and natural gas, and i can tell you there are has been no evidence whatsoever that hydraulic fracturing has contaminated the water in our district . stuart: there's a good deal of drilling, fracking in your district i believe. >> absolutely . stuart: and there's no cases where the drinking water has been contaminated is that accurate? >> there are has been -- there have been no instances no evidence that hydraulic fracturing has contaminated the water in my district, that's right . stuart: how many jobs has it brought to your district? >> oh, my goodness, the number of jobs are countless in the counties that are going after this natural gas the unemployment rate has fallen so fast that that's largely responsible for driving down the unemployment rate cardio ohio. and now we've got the promises like ethane plants that are

coming into our region that are looking to create 10,000 construction jobs and 1,000 permanent jobs. and, stuart, we've seen reports that if we were to get into the liquid natural gas export market globally, you're talking about 45,000 new jobs in over a billion dollars in new wages for american workers. this is changing the face of ohio. . stuart: now, if the epa says there's no evidence of widespread systemic damage to drinking water, why wouldn't we open up liquified drinking water, it's, like, here it is, let's make some money. are they saying that. >> well, they are not saying that, but it's not the epa holding us up, it's the department of energy, and it's the president. i've got a piece of legislation called the lng permitting certainty and transparency act it's already past the house with large

support from our democrat colleagues on the other side of the i'll. it's working its way through the senate right now. we're hopeful -- and the want it has indicated he might likely sign this because it has geopolitical indications in job creating here at home, it could hold vladimir putin in check in europe . stuart: i hope you come visit new york state. i can show you people -- neighbors of mine who are going to lose their land because they're not allowed to frack in new york state. >> yeah. stuart: congressman, great to have you on the program. come again soon, please. >> thank you . stuart: let's get to apple, do you remember when tim cook said oh, he's not going to collect ask sell your data. hold on a second. new york times says apple protectors private did the in many ways and uses it to build and market its products. liz, what douse? >> they also have an advertising program saying we

have all sorts of information to target your business toward customers. let me just give you the information apple dialogue collect because it is pretty astonishing it's not just names or e-mail addresses or your phone number, it's also things like, your occupation, where you are and what time zone you're in, what area code you're in, your credit card information, the language you speak, your zip code. and if you give an apple gift certificate or you talk to somebody in a forum, bring up a friend or family member, apple will collect that information as well. . stuart: i don't have a problem with this. i think tim cook was looking for good pr when he said we're going to respect your privacy we won't sell this data. but i think he was being a little disingenuous. >> yes. stuart: because as you say apple is collecting that data and uses it for financial purposes in the company. >> yeah. stuart: and i have no problem with that. >> yeah. that's what happens when you interact with the business, they will do that, he was being disingenuous,

wing a fastball saying he doesn't monetize the data, but they do have i ad, they want to help out, they want to have free apps, have advertising revenue off of your information. they also share information with law enforcement and other entities overseas. so apple's privacy policy, pretty extensive, a lot of information there, a lot of data they collect on you . stuart: got it, liz. thank you. >> sure. stuart: time for a sector report. come on, sherrill, what are you watching today? >> this is the favorite part of the day i get to look over stuart varney, but retail sales, we're talking about it with the market today. is the consumer getting better? the wall street journal says yeah the economy is getting better, well retail sales up 1.2% walmart target, macy's kholz, consumer a little bit out there . stuart: all right. we've got it sherrill. thank you. new sign of the time.

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>> i'm nicole with your fox business brief the dow up and some of the traders talking about the fact that they think the idea of getting a great deal begins to wein and it's weaning and right now we see the dow cisco boeing, home depot, looking good on the day where we've got retail sales up 1.2%. speaking of retail, take a look at some of these realitiesers. well, men's warehouse came out with expected profit, and then the founder lulu lemon selling his shares, could be more than 20 million shares, and then crispy criminal up 10% today actually better than first quarter profit. the real winner on wall street. much more "varney & company" coming up after the break

. stuart: consider this. you have your beloved dog at home, you want to go on vacation, you don't want to drop the dog off at kennel? what do you do? you bring in dog vacay, it is an app, sounds like a great idea it's an app if i've got

a dog i'm going on vacation, get onto the app, and you -- your company arranges a dog sitter to come to my house. is that it? >> almost. we're a network of over 20,000 dog sitters across the country who watch your dog in their own home instead of a kennel. so instead of being in a cage while you travel, they're in a loving home . stuart: okay. now the camera just went right out of off you there, and down she goes. however, i know you're still there, so i'll ask you a couple of questions. now, this is in your own home, the dog sitter comes to your home; is that correct? >> primarily the dog comes to the -- so you'll drop your dog off in the loving home of somebody else, you know, we have stay-at-home parents work from home professionals so really it's an opportunity to have your dog with one or two other playmates in a loving environment . stuart: we also offer the service for the dog sitter to come to your house as well .

stuart: can the dog stay in the sitters house overnight? can you give them to the dog sitter for the week? >> exactly it's alternative to the kennel. so we've booked millions and millions of nights in the dog sitters staying in homes . stuart: okay. we have ellie with us, ellie is part of the dog vacay now that's a beautiful dog and she's very calm right now with liz macdonald right there be that's a wonderful thing. now i have to ask the important question. how much aaron? >> well, this is a marketplace, so our host set their own prices. it tends to be half the price of a kennel, the average is less than $30, but you can pay as much as 15 and 60 or 70 depending on the home and what the host wants to charge. our host get complete control over the dogs they watch . stuart: okay. how long have you been up and running? >> we've been and up running for for just over three years and i said over 20,000 hosts and millions of dog nights

booked on our app . stuart: did you say millions of. >> millions, yeah. stuart: okay. that's -- i'm trying to do the math here. >> second largest kennel in the world. yeah it's a lot . stuart: you're bringing in a lot of money. congratulations. >> thank you . stuart: good stuff and we appreciate you being with us. sorry about the courtroom tilted down there but we'll fix that, and we did fix it. aaron, everybody. dog vacay, it is an app and we like it. thank you very much. >> thank you . stuart: and now this. it is called text neck. a 14-year-old girl in colorado has been diagnosed with it. >> i wasn't paying to anything that just happened . stuart: liz is holding ellie. >> i don't know what happened. . stuart: can you respond to text neck? >> yes actually because i have text neck, it is a real thing because when you're on your phone so much as i am all of the time, this is a bad position for your neck because doctors are very concerned now with text neck along with the

eye sight of individuals that are constantly on their smartphones. doctors say this is the two things they're preachers about right now . stuart: it is a new condition. >> it's a -- yeah, because -- >> develop a bone -- neurosurgeons jokingly call it the walter because he had a forward head . stuart: is this a serious thing. >> it is a serious thing. >> the neck and the eyes are the two things that doctors concerned about with smartphones. having, you know, the lights in the eyes -- especially because we're so close to the phone and then again -- this is not -- this is a bad position for your neck. look at teenagers . stuart: well, i'm not a physician, and i'm looking at what look like x-rays normal on the left of your screen, text neck and i can't see a difference except a curvature there. >> you can develop bone experts in your neck from text neck . stuart: do you remember when

carpal tunnel syndrome arrived. >> again, a real condition . stuart: it's a real condition. seems like text ncaa real condition because of our addiction to these things. >> to our phones and again they're especially worried about the younger generation and then doing long term damage to their neck. and i do want to go back, i have to harp on that . stuart: posture, everyone. sit up straight. governor jerry brown, he thinks he knows because of the real cause on drought nothing to do with government apostles. no he puts the blame on people. plus milk on the menu, some people compare it to so he had auto a. and now they want it off school lunch trays

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>> more americans may be looking to milk alternatives, like soy and jeff flock joining us now from a dairy farm. >> hello to you. that's -- yeah, exactly that's hillary actually, she's a feisty little calf, and i tell you speaking of feisty, a lot of people say right now some nutritionists that milk ought to come off the nation's lunch trays, and the dairy farmers i don't know. left knee an has been in the business for 30 plus years now? >> 32 years. >> when they say milk kids fat, what douse? >> i think milk kids strong, we've been doing it for 32

years and as a dairy farmer, we take a lot of care into making sure that we provide excellent quality milk to everyone. this is what we do. our family is here and this is what our life is. if you look at the numbers lauren milk consumption in this country has been down and, you know, some people say ought to be soy based milk. >> well, you know, soybeans are okay. i have a different opinion, and i definitely thank dairy products are a very good way to go. there's lots of options of dairy products, but i'm a big milk drinker. >> the family dairy farm out there relevant out here, what's that one on the end? these are all named h calves; right? >> honor. >> okay. and i've got hillary over here who is -- i don't know. >> they're so adorable. [laughter] they're so little, jeff. >> they're very young. they're what? a couple weeks old; right?

>> they were born the end of may. >> hi, hillary. thank you jeff flock. thank you. >> well, we have had a jam pack busy morning a full two hours of varney in the books here's the highlights more varney just two minutes after the break. stay with us. >> . stuart: they ring the bell before the trading begins, and in two seconds now we're going to start trading. and it is up 11 points. >> it's not a horse race . stuart: this is the triple crown of financial broadcasting. you're a techie. you know what you're doing with computers, you know what you're doing obviously so, could you in, say a half hour get to the dark net? >> i could not. however, i know people who could. so that's what i would do. i would call them up and they could probably get on the dark web in a half hour.

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stuart: the latest example of the climate give away. starting in 2020, g-7 nations will give $100 billion each and every year to poor countries. they are supposed to use it to adjust to the changing climate. a big chunk of that will come out of your pocket. president obama leads this giveaway, china is in line to get some of that money so we are already deeply in debt, but we will give even more to china. let's not forget president obama has also pledged to cut our carbon emissions even more in the next few years but he has agreed to let china keep on polluting without any check until 2013. that is when china has agreed to try to start cutting. there is a giveaway. you will be hearing a lot about climate change this year. in december the world gets together in paris to work out a global system for limiting

carbon emissions. you know we are going to have to pay the. i hope this becomes an issue in next year's election because we the people should have a say in this. are you prepared to give your money away and pay higher prices for energy? i don't think the great climate giveaway will fly if we the people get to vote. we will get a great climate give away in just a moment but first we have been reporting rupert murdoch, ceo of 21st century fox handing fancy e l position to his son james. this is a matter of succession in the 21st century fox family. they have been working on this for son time. howard kurtz host of media buzz on fox news channel.

to meet this retains control within the family of 21st century fox, your take? >> no question. it is obama shall report. in the public mind rupert murdoch's 21st century fox, a legendary controversial figure, the guy who came out of australia and build a global media empire but because rupert will take on the title of executive chairman and not going off to by a desert island and retire some where he will be a force within the company so i don't expect at this stage were to have any financial impact on the operation. stuart: exactly correct. the stock market did not react with a buy or sell. it was pretty much flat. 21st century fox shares pretty much flat. the market approves of this. rupert murdoch is one of the great figures in the media industry of the last century, is he not? >> his biggest detractors would

say he looms very large on that stage, when you look at all the things he has built or acquired ranging from publishing to the wall street journal to movies studios to fox broadcast tv and fox business at fox news channel. interesting fox news channel chairman, fox news chairman roger ailes's company making clear reporting to rupert murdoch, you will not see much impact on fox news and the fact two of his sons will have high positions in the company makes for a steady course. rupert is 84 and this was going to happen sometime. stuart: it is important to reiterate roger ailes reports to rupert murdoch stays very much in control of fox's tv operations. and his reassurance to the marketplace, reassurance to the media industry. >> sometimes when the founder aging founder of a big company completely retires and somebody from the outside comes in the markets get nervous and people who work there get nervous but

this seems like a succession plan that while we didn't know the timing has been in place for some time, james murdock spending time on different properties, so it doesn't seem like it is a dramatic change and rupert is not leaving the building. stuart: precisely. howard kurtz thank you very much. check the big board coming down a little bit. we were up 60, 70, 80 points, now we're 41 good retail sales numbers maybe the economy is doing a little better than we thought. you got to look at netflix. on a tear in the past week down 10 bucks at 660 but it was 692 the all-time high earlier today and yesterday. look at that stock go, down today look at it go. the company the works in the cloud making a lot of money giving an upbeat forecast makes

them a winner. nearly 7% of today. as for the price of oil it was up now it is down a buck, $60 per barrel. as to the price of gasoline the national average $2.76 per gallon. let's get back to my take on the great climate give away as i am calling it. joining me the wall street journal's dan henninger. i think what i said there is very much up your street because i am saying it is a giveaway on climate change and the president is going around congress going around the american people to present everybody we're going to spend everybody, spend this money and you don't get to vote. >> we do get to vote in 2016 and i think you put your finger on this should be an issue in the presidential election. bringing it to presidential politics four years ago barack obama tried to push a cap and trade bill through the congress it passed in the house, failed

in the senate failed in the senate because many democratic senators from carbon producing or car been using states would not support it. one of those states was the ohio. us swing state in the presidential election. i think when the voters understand the some of these policies of his such as forcing airlines to reduce their emissions trucks to reduce their emissions is going to hit their pocketbook it will become an important issue in the election. stuart: we have to ask what is hillary clinton's position on this? she is going to be the democrat nominee, not much doubt about that. >> is going to be one of those issues where she will try to be on both sides she cannot be against climate change negation. they would run her over. on the other hand she understands what i just said, that in the midwest, in some of these swing states there are

people who once they understand the cost of the policies that would mitigate climate change will step back from it and may vote against her so she is going to sell wishy washy. stuart: the big climate change harley comes up in paris, the whole world gets together to get a new treaty. is it a tree or an agreement? >> it is an agreement. stuart: if it was the treaty and we signed it a test to get two thirds of the senate. >> we will get a supreme court decision in july and epa efforts to regulate mercury emissions. in the oral arguments justin steven briar liberal noted specifically that the cost of that was going to impact the average person in a way that might be more than they can afford. if even liberal justices are becoming sensitive to the cost of this sort of thing. stuart: if you present to the american people you prepared to pay x number of dollars more for

electricity and energy and are you prepared to pay $100 billion a year to other countries for climate change you presented it in those terms and the answer is no, we don't want it that is a losing political issue. >> along with it you accept low growth rates we have had the last six years which means fewer jobs than we should be having over the last period which is what this will contribute to it adds up to difficult issue for democrats. stuart: suppose i am wrong completely misread the electorate and in fact climate change, the religion thereof is a powerful force in this country and we are worried about it. could go that way? any chance? >> of the rea strategy is to reassemble the obama coalition, minority voters, ascendant coalition college students will complete by into it because they're not paying these costs right now. enabled threat that needle and i don't care about older voters to

understand cost of climate change and that will be the strategy. it will be a close election she may try to simply appealed to people who at this point either aren't paying the cost or don't is that the cost. i don't think that includes minority voters, they do pay utility costs. and if they spend $30 a month on climate change they will think twice. >> how far will the republicans go in opposing climate change legislation because they have to worry about alienating young voters and the greens, they got to worry about that though they have alienated some already. >> the key is as you are suggesting you have to level with voters you have to explain what is going on you can't just say i am for or against climate change you have to explain to them the consequences, prices, costs of implementing these

policies. stuart: thank you very much appreciate it. president obama wants to bring diversity to wealthy neighborhoods. otherwise known in my opinion as social engineering. joining us for the locker the author of the book end of discussion guide than some. what do you make of this? the president proposes is about to propose using more taxpayer money in the form of grants to shoe worn people of color into supposedly wealthy white communities, social engineering in my book and you say? >> it is social engineering. there is a value to have people interact on a daily basis with people not exactly like them. diversity at its core, in its best sense is a good thing for society. what i object to end it is so very early we are not sure how this will work out infected move forward but the idea of the federal government intervening to socially engineer neighborhoods i am not sure that is something i'm going for.

>> we won't know because we are not going to get a final ruling until the end of the month from the department of housing and urban development but i actually disagree. you are looking at a weight that potentially could destroy neighborhoods. and also destroy home values. we see time and time again we have governments coming and make these decisions hurting neighborhoods crime goes up that is the truth and we have seen it in new york city. >> presented in those terms presented as these people are kept out by act of discrimination by these people who are in. presented in those terms that is a different moral system. >> they have to prove that as well. i can't see the administration having a way to prove that is happening. stuart: they have the power and the money economy is not a vote. >> is it legal? can the fed's legally do something like this in cities across this country? this is going to be in violation

of state and local law. i am not a lawyer but -- >> to be clear i am not a fan of this proposal just so -- i hope i didn't miss state that. in general i think it benefits all of us to have interactions with people are not the way we are to grow in the same circumstances but having the government shoehorn having the government be pulling the strings is carrier, political angle to this you know who's the secretary of health and human services or housing and urban development secretary is? julien castro ruiz widely rumored to be hillary clinton's top choice for a running mate. this is his cabinet department. stuart: that is very important. this is all about politics. julien castro. remember that name. more on this with judge andrew napolitano comes up at 11:3 eastern this morning. here is what is next. a new survey shows the vast majority of americans say the american dream is slipping away.

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stuart: this video is making the rounds has everybody talking megan crosby, a cataract softball championship game in texas caught on video album mr. change the opposing team knocking them to the ground. several times. why are you laughing? >> don't mess with texas. stuart: no penalties imposed, the opposing king went on to win 6-4. are pillows. >> it looks worse in real-time and slow-motion. stuart: and a new survey from the macarthur foundation, 79% say it is easier to fall out of the middle class than to rise up into with. the guy says the author of a new book end of discussion, still

with us 79%, is easy to drop out than it is to move up. that is the reverse of the american dream. we have been talking about this all morning. >> reading the story the numbers are disheartening. i am a political died. my brain jumps to how might this play for both parties. these numbers impact both parties in different ways and present challenges. if you are republican you look at the statistics in this data from the pole and think americans are less convinced that they can be upwardly mobile in america that opportunity is slipping through their fingers and the middle class is dying. that presents the left with an opportunity to make the case for redistribution. if you don't think you can improve your lot in life you are more open to arguments about big government top down state is in. republicans, this is a threat to the conservative message, a free-market message. on democratic side it is hard for hillary clinton to run

around talking about how awful it is for the middle class and how the middle class is dying when president obama has been in charge for eight years. the democrats have been running the show in this country and to talk about the spiraling middle-class is a bad reflection on their own policies. stuart: when i came to america is about opportunity to rise up climb the food chain. that is the american dream and it is still there but these numbers are so sad. is the opposite direction. >> it was all ages all political party affiliations there was no skewing whatsoever in this research that was done and that makes it so disheartening that this is how people feel. stuart: that is how they feel but is it true in reality? is it more difficult to move up the food chain? >> you knows this better than anyone else. in economics in politics in people's perception, perception becomes reality especially when it comes to this type of story.

the obama administration can be the drum and a low calgary the economy is doing and these improvements, republicans say look at these other factors is not getting better casting of it matters how people feel and this shows that people do not feel the economy is where it needs to be and serving of the american people well. "cavuto coast to coast" when you brought up the point that may be is very comfortable to be lowered down the food chain. cheryl: sure. stuart: more comfortable in the obama years to stay and lose incentive to go up the food chain. that is objectively true. >> plenty of programs were put out there in the financial crisis and recession to help americans get back on their feet. we end up with a society of dependency where many americans say why go back to work? i have my unemployment benefits extended, food stamps, all these programs taxpayer funded programs to help americans and created a society of dependency. is easy to go lower class.

stuart: last word. >> it is easier to shake the bonds of dependency and few believe there's a path forward to better yourself and improve your lot in life if you don't believe that is available to you, then you are more likely to stick where you are in that havoc which is not whether the country needs people to be. stuart: give me 6% economic growth and i will give you opportunity. how is that? >> i am for it. remember this. you may have seen this. the real life hunter board uses a magnetic field to float above metal surfaces. now its creators want to use however technology to build a floating earthquake resistant buildings. that is interesting. we will show you how it works. ignored that video.

>> reporter: senator rand paul on fight in the nsa, a great discussion 8:00 p.m. eastern, 5:00 pacific. it needs to be earned... every day... using wellness to keep away illness... and believing that a single life can be made better by millions of others. healthier takes somebody who can power modern health care... by connecting every single part of it. for as the world keeps on searching for healthier... we're here to make healthier happen. optum. healthier is here.

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british actor christopher be best known for his roles in star wars and board of the rings has died after being hospitalized for respiratory problems and heart failure. lisa in the royal air force in world war ii began acting in 1947, knighted in 2009, he was 93 years old. a hovering home seems like something out of the jensens' but one california company hopes to make homes that can hover a reality. they say it would be the key to earthquake protection. cheryl casone hovering houses. >> back to the future they say it is, they are developing and working on patented technologies that would actually if a quake is coming it would use seismic data and lift the home often

ground. patented system, they are calling it shake colors. this is the truth king. stuart: i do this all the time. this system relies upon some kind of warning that an earthquake is coming. are we in a position yet to say that we know when an earthquake is coming? >> if an earthquake is coming sometimes it is seconds before. stuart: in a time to elevate the house? >> they seem to think that can work. i don't think it does. i will be honest i have severe doubts about this technology. stuart: did you know if the house actually is elevated? >> that is what the technology is supposed to do lift the home, a hovering house for lack of a better term. stuart: like a maglev train. magnetic levitation. those trains but i am wondering if they can do this in time

before the quake hits. what do you think? you are not a california guy. >> i am looking at this, it is cool the technology seems interesting, the hover board video but this is -- don't we have building codes? build a house to withstand an earthquake. don't worry we got discovered. event earthquake comes we will literally lived your house off the ground. what could go wrong? >> you asked it is called shake alert and is debatable technology. i went through several earthquakes in california. basically shake alert harnesses data from seismic networks in california, washington, they have been testing these dollars since 2012. are they effective? no. they are not effective but they want to use the shake of their technology, the computer will tell the home is coming and the whole list of. just reporting what this company is saying it is going to do.

stuart: thank you. listen to this the long hand of government reaching into your backyard literally. president obama has a plan to diversify wealth in neighborhoods. congressman paul goydos our calls it an unrealistic utopian idea. she is here after the break.

>> stuart: 52 points for the dow jones industrial average. whole foods the new stores coming next year we will spend less money. so much change in the stock is down $0.3. lululemon founder is selling the family estate he is having disagreements lifted right and left the board earlier this year for a lot of trouble and he is leaving. the stock is down. president obama making a pledge to diversify wealthy neighborhoods and was used taxpayer money to do its. congressmen, it looks like this is the attempt to shoehorn people of color using taxpayer money into housing within the wealthy white neighborhoods. do you approve? >> i doubt that is my offer

the amendment it is micro engineering at the floating level. this is about the fabric of america what they want to look like. stuart: with those financial mechanisms within congress? >> and to define that mechanism that is why congress has the power of the upper said the rule of law behind it. is a big issue because of the government can supersaver -- supercede zoning than they can do anything. stuart: the argument could be made it is good to interactive people of all religion and faith and color and ethnicity and it is good to interact with america. and this enhances that meeting of the minds is there is something wrong with that?

>> that is not the case. since the late '60s and has been the law of the land and with people of color to put them into a community but this is a step further. and not whether it is right or wrong but the federal government doing it superseding though local jurisdictions micro engineering and the large-scale. stuart: the left will argue that people in this community are keeping out people of color not allow bring them in and that is a form of discrimination? >> they will have to prove that on a case by case basis because we have to challenge the left of this one everytime they try to utilize this. they make exceptions to the rule but what you do is follow the rule of law.

you cannot have differential aspects based on religion but from a standpoint it is a total overreach to change the fabric of this country. stuart: thank you for joining us. now we have a judge napolitano. what is the legal aspect? >> i think there are profound constitutional implications and can the president spend discretionary funds in a manner never even contemplated by the congress when they gave him the money. number two kid he used -- can he used the pen and the phone to regulate an area of government totally exclusively historically and indisputably local and not federal. and what to do about a

president that can respect that confines of the constitution and who can build what building on what city block? but the way they will do this is to offer money to the local municipalities to change the zoning laws. if we walked into a government office to say change the rules and will pay you we will be arrested for bribery but when the federal government does that the supreme court says it is acceptable to get the laws changed in an area they are have authority over under the constitution for it is repaired -- reprehensible i hope congress will stop it. it is sent racial it is the orwellian overreach from the central government into the area exclusively under control since 1791 when they

spoke with british accents. [laughter] stuart: a fast question. let's take the political angle. is social engineering generally frowned upon? as the constitution allows the government to engineer a our society? >> it is a very good question. the first part of course, it is frowned upon by small government people that believe the constitution means what it says there and they could only regulate in the areas delegated to it but the supreme court has allowed the federal government to spend money in areas outside the 16 areas to attach strings to the money and to comply with those is a regulation. that is what terrifies me that we should have rejected

those dollars but now they have to except the strings that come with it. stuart: now we have the political and though. >> when it comes to the obama administration it does follow the politics. the secretary of housing and urban development is the young man named castro former mayor of texas he is called the clinton short list for vice presidential running mate. if you are the democrats democrats what better way to stick it to the republicans to put the attractive young hispanic official but as the front man? while throwing the republicans back god their heels so it appears they protect their rich white friends it is identity politics. if this is what they're doing it is brilliant politically it is horribly cynical but it is brilliant.

stuart: the department of justice using subpoenas to identify our mind people who comment on recent.com. they discussed them killing the federal judge so it was the illegal drug marketplace. >> so full disclosure the thursday column also appears on reason.com. so with this particular instance the justice department should read the supreme court opinion if they've ruled two weeks ago that the threats on the internet are protected speech unless the following three requirements are met. a president and apparent ability to carry out the threat. the obvious intent to carry out the threat. no additional time for more

speech to take a bath reddening speech. this is the non-specific or emotional type of talk for a public official. when i was on the bench are was threatened to lot and they were of the different sorts but this is a highly protected speech and the government will never prevail. stuart: would you were on the bench with this type of threat sure the authorities would try to track down who made that threat and that is what they try to do in this case. >> is a political statement about the severity of what the entity received without naming the they are threatening or suggesting how they can do it or to be in a position to do it it is absolutely protected

speech the first amendment was written to protect that speech that we hate. stuart: i don't like what you say but i will defend to the death your right to say it. >> that was full terror. stuart: i believe he was a french rail. [laughter] -- the of french man -- voltaire. jerry brown says it isn't the epa regulations but overpopulation of humans in california causing the drop. more after the break. hey honey. huh. the good news is my hypertension is gone. so why would you invest without checking brokercheck? check your broker with brokercheck.

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your business. >> if fox business briefs stocks up over 100 points off the dow jones industrial average before pulling off with talks from the imf said bellotto's not going well. the nasdaq and s&p have the up perrault's. a formal investigation has been opened into the amazon distribution arrangement coming off of 2.$6 billion worth of equities. energy and telecom industrials are doing well but energy is of loser. we'll is pulling back including transocean and

rick -- rigg. more is coming up. you are looking at two airplane fuel gauges. can you spot the difference? no? you can't see that? alright, let's take a look. the one on the right just used 1% less fuel than the one on the left. now, to an airline a 1% difference could save enough fuel to power hundreds of flights around the world. hey, look at that. pyramids.

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here is neil cavuto. what do you think? i expect that of jaime dimon to oppose senator warren who hates the banks and bankers. >> they actually paid to each other. goes back a long ways. remember with the paperback version is out now so with a fighting chance she talks about how jaime diamond came to her office and she was first put in charge of the consumer financial protection mbira about over regulating the banks. he leaned back to slowly smiled and replied said he was hit with a fine for public he denies that ever happened. she stands by its. they have never seen eye-to-eye and the addition doesn't understand finance

are breaking the she has recorded many times before. i do not drink their kool-aid. now is out in the open. stuart: is a good one. >> it is nasty. stuart: coming up neil cavuto has of big interview with charlie rangel. it's neil cavuto coast to coast of fox business network. we have an interesting take on the state's drought and the governor is worried over population is the issue. we have john phillips. he says there is too many humans with the overpopulation problem. what do you say? >> in order to mitigate the effects jerry brown has done everything except kidnap pregnant woman's right

before their water breaks. sometimes he thinks out loud. that is when he was doing and it is funny because when he ran for governor this year he is the new jerry brown but he is sounding like the old jerry brown but his father was a great builder who built the water system made universities in jerry brown ran as the anti-to that. was all about living in the era of limits. he did not bill that they still came and it is bursting at the seams so now he goes back to the position of the '70s. stuart: as far as i know the enormous amount of rain falls on california and the rivers flow into california but it is trapped in reservoirs for to reduce the though believe it has built a new reservoir is in a three or four decades to me that is the problem for what to people in california

think? >> right. talk to farmers and the central valley they pull out their hair because we bend over backwards to protect that the delta smelt and taking the water that could easily be is for humans to shifting it to the smaltite a fish even though there is only a few still remaining it is insanity we put these tidy little fish ahead of human beings all your bitterly suffering. stuart: what do people think? you have drastic reductions of water used to jog your hands. what do people actually think? are they blaming governor brown -- brown? overpopulation? >> if overpopulation is the issue he isn't doing much to solve it. 27% are foreign born yet the

state has opted to allow illegal aliens to purchase health care through the health care exchange. so doing what they're doing in sacramento is a strange way to put out the word. stuart: we hear you. k abc los angeles. we have a video for you tearing up the internet. we showed it to you yesterday. the owner of the drone is suing he wants the guy to pay up he is a play a pandora's box of litigation. after this. orn. after all, healthier doesn't happen

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stuart: and lucky seven drones is a company that says they were on the street making a movie when it was smacked down. we will show it to you again. is that legal? you cannot do that.

now we have the owner of the drone. you will get a lot of this the people who don't like them flying around in their ability this to you. >> in this case river in front of our own property to feed off the ground and a river near his property he came across the street just to do that because he was paranoid. stuart: i suspect this will happen a lot. it isn't nice when you have they drawn flying near you and people don't like that. it is not safe and people do not like it. >> our goal is to educate the public obviously as operators to have to be responsible not to fly in your people or over their property and we were respectful of that but there are ways to go about handling situations like

this to damage somebody's property is vandalism and it is a felony vandalism and it is not the proper way to handle this. he could have talked to us. stuart: i understand there is no need to break it but i thank you take my point that rules are required where and when you can use these in a public space. >> absolutely we checked with huntington beach police said we were within our rights. stuart: but those may change because i thank you are opening a pandora's box of litigation with what happened to your drone. to agree? >> yes. sure. stuart. charles: $1,300? to mcfadyen the cost to replace i have a right your view would like to see the damage.

stuart: what did he say? >> he said i am not paying. for the last week he has not wanted to pay for it but we have a meeting this afternoon to resolve this without pursuing litigation. stuart: every chance we get more rules i think they're coming. i will table we have tomorrow. the u.s. open just around the corner with golf legend player. right here our fox business network.

>> i think you put your finger on this should be an issue in the presidential election. i think when the voters understand that some of these policies his such as forcing truck and airlines to reduce emissions will hit their pocketbook if becomes an important issue in the election. >> come on everybody can't we

vote on all of this climate change stuff? we should be, you know, should be voting on it. my time is up. now here is neil cavuto. neil. >> a great discussion it was a discussion you had about affordable housing and administration now putting republicans on the defense about diversifying wealthy neighborhoods i've been watching coverage elsewhere. it is like republicans have to worry because if they oppose this they sound racist or they're not trying to have various elements in their neighborhood and i'm thinking to myself everybody thank god, finally finally we're going to get racial equality in the hamptons, and beverly hills. you know, the score you know what they're up to and talking about. incentive on part of the administration to and i quote to build affordable housing in areas a push to break down barriers to access opportunity. so if you're in all rich