>> i'm back with just enough time to say thanks, guys. up next, "varney & company," back to you. stuart: thanks, indeed. mitt romney telling there may be a bombshell in donald trump's taxes. we have good reason to believe that trump isn't as wealthy as he says he is or pays low taxes. mitt romney threw that out there. it was reminiscent of harry reid four years ago who said that mitt romney doesn't pay his taxes. that hurt romney in the election. now, romney goes after trump in exactly the same way, surely romney should come could clean and tell us what the challenge is based on. he said we have good reason to believe. stuart: okay, what reason? what's your evidence? what do you know that we don't

know? if you don't tell us, you're the same as senator reid throwing out unsubstantiated charges. trump said he's not sure when or if he'll show his tax returns. but romney's charge may bring back memories of an election he did not win. ♪ all right, more on the romney v trump fight in a moment. happening right now on capitol hill, a hearing on worldwide terror threats, the apple-fbi fight will come up. fbi director james comey and cia director john brennan and mike rogers are all expected to testify. apple's tim cook will not be there. if there are any fireworks, we'll bring them to you and let you know. in a televised interview, cook

did expand on apple's decision not to unlock the shooter's iphone. >> it would be bad for america and set a precedent i believe many people in america would be offended by. it's in our viewer the software equivalent of cancer. i will talk to the president. stuart: now, this morning, there's a new report in the new york times that says apple is working on a phone that even apple cannot hack into. liz, they're saying nobody can get into this phone, the fbi, the government, the cia, apple itself. nobody gets in. am i accurate in saying that? >> yes, this is what the new york times is reporting, it would be impossible to get into this phone. apparently on the press conference call with reporters last week, it was-- an apple official said, yes, we've been working on digital security upgrades to our phones

and apparently company engineers did old meetings with other staffers to do just that and those efforts started before the san bernardino attacks according to the media reports. if they came up with a phone that nobody could unlock, then that satisfies the privacy people because they've got absolute privacy, but what does it do for security? it guarantees absolutely privacy for terrorists, does it not? >> yes, today with those hearings on capitol hill, it's already been disclosed five dozen isis connected fighters were arrested here in the united states last year. so the fbi continues to be concerned about bigger terrorist plots happening now in the united states. >> the fight continues, thanks very much. good stuff. look at dow futures, let's go to the markets, where are we going to open today? my answer is fairly flat. at one stage we were down 250, closed the day up 50. this morning, maybe a modest bounce on the opening bell, 20,

30 points up. the price of oil is down just a little today. 31.86. all right, moving on. let's get back to that, the mitt romney, donald trump tax bombshell. in his own words, here is what mitt romney said. >> we have good reason to believe that there's a bombshell in donald trump's taxes. what do you mean? >> i think there's something there, either not as near as wealthy as he says he is or he hasn't been paying the kind of taxes we would expect him to pay or perhaps he hasn't been giving money to the vets or to the disabled like he's been telling us he's been doing. stuart: i'm going digress for a moment because that reminds me when harry reid, in the middle of an election four years ago did essentially the same thing to mitt romney. watch that again. >> let him prove that he has paid taxes because he hasn't. stuart: because he hasn't. that's all of that. look at this, this is trump, who tweeted this out after mitt

romney made his charge. he says, mitt romney was one of the dumbest and worst candidates in the history of republican politics. he's now pushing me on tax returns, dope. okay. and that's donald trump. georgette is here. it occurs to me that even if donald trump reveals his taxes and there's something in there, his supporters won't walk away from him, will they? >> no, they probably won't, and it shows you how desperate the republican establishment is to trot out a romney. and this is out of character for him to make it attack like him and has no substance to it because who knows what's in the taxes, no one has seen them. if they did have it, believe me, it would be all over. they would have put it all over the place, they would have released it everywhere. stuart: but he said we have reason to believe. >> yes, but-- >> is there evidence? >> if you had evidence it'd be

out there. i'll say one thing on the other side of this argument. in life, if you look at the history of politics, there's always sometimes that moment, whether it was howard dean's euphoria that became demonic or whether it was the bobbing head with the-- that dukakis, the bobbing head, with the helmet. you never know what that one thing will be that the american people will be just go off a candidate. stuart: surely, you don't think that's the moment where donald trump is skewered by mitt romney, do you? >> no, i don't think this is the moment, but who knows what's in those tax returns? and i don't know. why should donald put them out anyway, nobody is asking outside of mitt romney. i wouldn't put them out if i were donald. he's winning, why would you do that? >> i never think of you as establishment republican, but i do know you are republican. so are you ready for a trump candidacy because it looks like he's going to sweep the table.

>> stuart, i am an optimist and i do believe that history proves that there are people that can raise to the occasion that you would never guess could do that so that, yes, i will support him and i believe that maybe he will be one of those. stuart: all right, georgette, good stuff. are you going to stay there? i've got more for you. now this, marco rubio, ted cruz, they're both going after trump on the kelly file last night. have a look at this. >> we're not going to allow the conservative movement to be defined by a nominee who isn't a conservative. i can win, i can unify this party, i can grow this party and i will win this election, the democrats desperately do not want to run against me, that's why they attack me more than anyone else in the race. >> the only campaign that can beat donald and has beaten donald is our campaign and in my view, you know, you look nationally, and anywhere from 65 to 70% of republicans don't think donald is the right candidate for us to nominate to

go up against hillary clinton. stuart: all right, well, they're trying to establish themselves as the one candidate that can rally the whole base to go after trump. one-on-one. lisa is with us. >> hi, stuart. stuart: i'm not sure how that can actually work, knocking each other out of the race so there's just one emerges to go after trump. do you approve of that strategy? >> you had a he think that they would focus some attention on donald trump. that we've seen in new hampshire, south carolina and nevada would be substantial wins, and he's obviously the candidate to beat right now and he's headed into super tuesday with significant momentum and also leading in many of the polls in the 11 states that are going to have the primary caucus contests on tuesday. you'd think that they would focus some attention there. but i think a lot of people don't know what to make of this election cycle. this has truly been an incredibly unique primary process. here is something like marco rubio, what he's looking at

things like a score. 94% rating from heritage action, the same as representative jim jordan, who is the chairman of the house freedom caucus who held out john boehner. stuart: if the strategy is to reduce it to just one non-trump candidate, i don't see how that works because if, for example, cruz is knocked out of the race, you can't assume that all of his votes go to somebody else, you've got to assume a lot of his votes go to trump which strengthens trump more. >> and some of them very well could. i think what they're saying, their best case or chance in defeating donald trump is to get some of the other candidates out of the way, but i don't see anyone else dropping out anytime soon on their own accord. what may happen after tuesday, for instance, someone like ted cruz, if he can't carry his home state of texas, which has 155 delegates, how is he making the case that he has a viable path to the nomination, so and

marco rubio as well. marco rubio keeps trying to paint himself as the alternative to donald trump and he may well could be shall the reality is, he has to start winning some of the contests to make the case. stuart: just look to the future, can you see this happening, cruz does not do well in texas, doesn't win, he's out the next day. rubio does not do real well in florida, might not win, he's out the day after the primary. john kasich does not win hands down ohio where he's the governor he's out the next day, would that be the process of elimination, if you can't win your home state, you're out. >> i think if you can't win your home state, it's difficult to make your case for the nomination, i agree with you, i think that's going to be really tough, but a lot of these guys, for instance, john kasich, i don't see him dropping out until after michigan on march 8th, the next state where he thinks-- >> that's two weeks away. but it's a long time in politics, but, no, it's true. stuart, when you see after each

of the contests that we have, there has been a winnowing of the field. if that's going to happen on tuesday that's to be scene, but that may be a real possibility with someone like ted cruz, if you can't carry home state of texas it's difficult to make a case for candidacy. stuart: that's true, lisa. >> thanks, stuart. stuart: i have dramatic video for you from the south, the aftermath of a storm that slammed virginia last night. four people were killed and governor has declared a state of emergency. look at devastation, this is the same weather system that hit the gulf earlier with a series of tornados, it moved across and is now sweeping up to the mid atlantic states. virginia took it hard last night. president obama is vetting the republican governor of nevada as a possible replacement for justice scalia. how about that? we'll deal with that in a moment. and you know who might not be ready for trump to be the nominee? china.

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> >> act responsely, it sounds like a thinly veiled warning. that's what china is saying to the united states. this veiled warning came after trump's win in nevada. is this all about currency manipulation liz: essentially donald trump is saying that china is purposely cheapening-- >> that's what donald trump is saying liz: to make it cheaper to u.s. goods. stuart: china, china, china,

they don't like it. >> china says they're following the u.s. presidential election closely and saying that the u.s. and china have major responsibility to safeguard world peace and development. so, you know, we'll be waiting for trump's tweets on this one. stuart: there wasn't an or else, was there? there was act responsibly, but wasn't an or else. >> there wasn't a "or else", just that they're following this election closely. stuart: bet they are. to the supreme court, the white house reportedly vetting brian sandoval, the republican govern governor, who are the supreme court. and joining us from the senator judiciary committee, what will you do if the president does put up this republican? will you block it no matter what? >> yes, i've said clearly, stuart, i think we should put it in the hands of the american people through the election process and that's irrespective of who president obama's nominee might bement and so

that's not going to changeme changement-- change, i want the american people in charge and we have a unique opportunity to do that in this election year and-- >> it's a very smart move by the president to put a republican, governor of nevada, that's a smart move. >> well, first of all, he's not nominated yet. so this is something being floated out there. i'm sure whoever president obama's choice is, it's someone who on paper looks more acceptable than not, doesn't have a crazy left sort of proven history. i'm sure one way or the other that's part of his strategy. >> you are going to catch heat for this. if governor sandoval is the nominee, he would catch political heat for saying, no,

not even going to think about it? >> well, i obviously don't think i would in louisiana. i think that people of louisiana, the great majority of folks, and i just came from there, had four town hall meetings last week and we talked about this a lot, want it in their hands through the election process. stuart: okay. senator david vitter, thank you for joining us, sir. >> thanks, sir. stuart: got it. and now this, hillary clinton's e-mails are not going away. top spies confirming to congress that many of them were indeed top secret. more on that in a moment. ♪ ♪ my future lies beyond the yellow brick road ♪ choose world.

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and this savings applies to every vehicle on your policy. call to learn more. switch to liberty mutual and you could save up to $509. call liberty mutual for a free quote today at see car insurance in a whole new light. liberty mutual insurance. >> a live look now at the house intelligence committee hearing on worldwide terror threats. the fbi versus apple fight is going to come up. what you're looking at now is director of national intelligence, james clapper, he's making his opening statement. any fireworks, any news on the apple-fbi fight, you will hear about it rapido. let's get the latest of the hillary clinton e-mail scandal. u.s. spy agencies told that

hillary's home server contained some e-mails that should have been treated as top secret. judge napolitano on this program said that's a endietable offense. i want to get to hillary clinton as a candidate. george is with us. she hasn't fired up the electorate. mo more-- bernie sanders to so many degree, but hillary has not. where is the fire? >> she's been around a long time, i hope she doesn't found that insulting, but she has. it's like a warmed over pizza in the morning because you don't have anything else to eat. stuart: that's terrible. >> it is, it's true. so, you know, you have it, you take it, but it's kind of, that's what she is, she's been around for so long and who cares, and we know everything, we keep hearing it over and over and over again, there's the drip, drip, drip of the water torture of her server and that's about it. i mean-- >> look at the turnout for the

democrats in the caucuses and primaries so far. it's down from where it was in 2012 and 2008. the democrat turnout is down, but the republican turnout is astronomical. it's broken records in virtually every caucus and primary held thus far and that's trump. >> absolutely. i mean, it is a reality show on the republican side, but again, back to my pizza, i mean, the truth is, they'd rather be home eating the pizza than going to the polls. i mean, who cares about hillary clinton anymore? >> really? >> yeah. stuart: doesn't your generation, forgive me for referring to whose generation-- >> i know, that's why i can say this about her because we're about the same age. stuart: but she's not fired up younger people. is she firing up your generation, my generation? >> you know what? she just-- that's even her personality. she isn't a very interesting person anyway. what is it about her that gets

anyone truly excited? we've heard it all and we've heard it all over and over and over again. and she's been overexposed. she's been on that tv for how many years and secretary of the state and the senator. i mean, do we want to hear anymore? >> okay, i guess you don't liz: i guess that would be a no. >> sorry. stuart: georgette, you light up. and thanks indeed. what a rebound on the stock market yesterday. you know, at one stage when we were on the air, we were down 250 points. we closed up 50. this morning, we're going to go up just a little bit more at opening bell around 16-5 is where we're going to be. super tuesday, that's next tuesday, march 1st, texas votes next tuesday. cruz, ted cruz, he's got to win his home state. >> the time for the clowns and acrobats and the dancing bears has passed.

you are implying we will go up from here. >> overnight use thought china dropped 6.4%. a few weeks ago that would have been disaster yet today the market shrugged it off and you get a market that is relatively flat, what that tells you is the investing community realizes there's a lot of volatility

globally but we want to look at u.s.-based companies. stuart: are we beyond the china threat? >> i don't know the we are beyond the threat, but we spoke in the last year about relax, don't overcommit based on day-to-day headlines. terrible headlines out of china, taking it in stride. stuart: relax, everybody. it is not a horse race. i am beginning to think $30 a barrel is the bottom for oil. if that is the case that is pretty good news for stocks. what say you? >> hi think that is good news for stocks. if you are looking at a chart, there is good resistance in oil at $32.5. we touch the couple points and they come back down. the balance from 30 to $32, you will shake out a lot more and get a lot more longs. stuart: if you have that kind of

stability, that will be good news for the stock market i suspect, a little stability. i want to look at apple, tim cook is depending his decision, not to unlock the san bernardino shooters's iphone saying it will be bad for america. we got news this morning from the new york times. apple might be working on a phone that is totally unlocka will to anybody. >> executive from apple, a safe bet security will improve. stuart: they are not going to do this. jo lin: he is increasing security because they want to help consumers to a step ahead of the bad guy. that is why you see the

operating system become more secure over the past five generations. stuart: if there's a new phone they cannot crack that does not solve the underlying problem, it gives privacy to individuals and customers guaranteed. it gives primacy to terrorists. if nobody can unlock it, you haven't sold the basic problem of security versus privacy. liz: he to second-guess journalists, and they did a great job, one question i asked him quote is what it 14 apple workers were massacred in a terrorist attack or what his family was under threat from terrorists? stuart: that would make it personal. >> i think it is personal, becomes an emotional issue when you bring it to that level. stuart: three people in front of me. i want a poll of the three people. said apple unlock of iphone and put security of the people ahead

of his customer base? yes or no? >> i am staying out of that part of it. stuart: in or out? liz: the court of public opinion is saying yes, access it. stuart: whose side are you on? whose side are you and? liz: trying to be journalists, stick to reporting it. >> apple should figure out a way to unlock the phone where they try to keep hackers or bad guys out, there has to be some way geniuses working there can figure it out, someone can figure out. jo lin: they did say, if congress passes a law, a law-abiding company this entire time, what that looks like, they don't want it litigated in court, and tim cook was asked, we can do anything because software doesn't exist and we cannot write it.

liz: the software does exist, people close to the matter of the software can be written. she didn't specifically directly answer the question of someone was under threat close to him. stuart: i personally say unlock the thing. in the age of nuclear terror unlock it. look at best buy, sales fall, there is weak demand for the product line. sales down, stock at nearly 2%. is that best buy, economic indicator? >> that is why people going there spending some money, not as much as wall street anticipated a lot of financial engineering, they are giving a special dividend so it gives them a little credibility with the street so use the stock moving up. stuart: nice bounce, 77 points lower, three points yesterday, 16564. citigroup now says the risk of a global recession is rising. what do you say to that?

>> it has risen for sure. we no longer see the growth globally so this report is not giving any earth shattering news but i look at this typically the u.s. has led the world into recession if we go there and i don't see the u.s. going into recession so therefore all the risk may be higher i think we avoid a global recession. stuart: can we get into the hearings on capitol hill? fbi director james comey talking about apple. >> it is possible. >> i am sure you will get more questions from this committee and you are testifying next week for the judiciary committee. this is an ongoing debate. to director stuart, february 15th, 2016, the daily beast ran a long report. stuart: i wish we could have caught what director comey was

saying. we will find it for you. i don't think it was revelatory but they walked right into the apple versus fbi debate. that is what this is all about. it is supposed to be tariff threats but it is apple versus the fbi. we're 71 points for the dow jones industrial average and have restoration hardware. i know that store in my local mall. the dow huge, what has happened? >> it is at lows we haven't seen in years, stock is down 24%. they noted market volatility and currency fluctuations. their revenue and profit numbers, they have seen weaker demand. they have talked about shipping delays and did did deep discounts. this is a six months chart that shows whether it was in november. right now at $39. $106 in november and now is less

than 45. stuart: sometimes you have to show a charge to get some understanding about what has happened to the stock recently. that chart told what the story in six months. thank you very much, there it is again, a rotten chart. >> it is company specific. if you look at home depot or lows they're putting a solid reports. stuart: how about salesforce.com? hi your sales, that stock is up this morning. we bring to your attention a couple individual stocks moving up 9%. campbell's soup higher profits, a new high on campbell's soup and sears which we have put on deathwatch. we had put it on deathwatch, losing some more money. it is up 1%. how about the gunmaker, we

called president obama the best gun salesman in the world. stock hitting a new high. jo lin: revenue up 2%, pretty strong, full year revenue up 1.2%. overall firearm sales up half point. you see the company issuing a new fourth quarter dividend of $0.35 a share. you see stock reacting positively. stuart: basically that is an outside moving stock because of the president's attitude. july not warning america after donald trump when the nevada caucus act responsibly. from wants to punish china for currency manipulation with a tax on chinese products coming here. that was the veiled threat. liz: they are saying we are following the u.s. election, the u.s. and china have major roles to play in safeguarding world security and development so

development is the tag too, donald trump saying quit cheating or currency, to cheapen your goods and undercut u.s. manufacturing. jo lin: the chinese government always get asked about the state of the release every four years which i covered china five years and you see this is standard rhetoric. stuart: i am breaking again, more questions for fbi director comey on the apple story. >> by that i mean if that argument is in the court in this case won't indeed district attorneys and other prosecutors around the country to make the same argument in their cases and some of those may be compelling, you point to a pregnant woman who is murdered in arkansas and the only key to her who killer is the application may be good in a misdemeanor involving nonviolent offenses. the result may only affect this phone the president will be

there for many others. what i would like to ask is is there a limiting principle here? is there a way through negotiation that we can arrive at keys is wearing is appropriate to seek this relief to cases where it is not, do you acknowledge the broader policy implications of a uniform application, i realize this may be moot by the next generation of operating system which may not allow this kind of relieved but nonetheless it is technologically feasible even the next-generation operating system for apple to help with the opening of the phone it seems to me the argument you are making will apply to those new operations as well. is there a limiting principle here and is there any way to resolve this negotiation? the initial position of the

parties are we in the excess indeed legal warrant and the other side is saying we can never provide access because we have to do it everywhere. >> i very much agree with the way you frame it in your opening statement. this case and all cases are very important but there's a broader policy question that is far larger than any individual case we have to grapple with but to the case i think the answer would best come from a technical expert and a good lawyer. i am neither of those but i will take a shot at it. it is potentially, whatever the judge's decision in california, a am sure it will be appealed in a matter of how it ends up will be instructive for other courts and there may be other cases that involve the same kind of loan and operating system, experts have told me the combination, i will get out of my depth but 5 see at this particular operating system is sufficiently unusual that it is unlikely to be a trailblazer

because technology being the limiting principal, a decision by the judge, the judge weighing a decision in brooklyn, all those decisions will guide how other courts handle similar requests. i use this tool as a young prosecutor for hundreds of years so courts can have their orders given and how judges interpret that in any particular jurisdiction is not binding on others that will be important so that is fair to say but the larger question is not going to be answered in the courts and shouldn't be because it is about who do we want to be as a country and how we want to govern ourselves? stuart: the exchange you just saw goes to the heart of the argument. the gentleman there asking the question basically saying you unlock that one of iphone and there will be other requests to unlock other iphones and pandora's box is opened. fbi director comey responded that is true and they will respond according to which court

wants what. that is the nature of the argument. jo lin: there was a moment comey agree with tim cook had said i agreed the larger question is not going to be answered in a court and shouldn't be. it should be a congressional debate. stuart: that was the freeing of the argument. we are running out of time and we will return in a moment. choose world.

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stuart: a lot happening today. i want to move this along quickly. next tuesday's supertuesday, both in texas and if ted cruz loses in his home state or doesn't do well in his home state, a lot of people say that is the end of the road is that it again. karl rove knows a thing or two about it again. if he doesn't win in texas he is out, you say what? >> i agree. i also think your earlier point

that he needs to win convincingly otherwise his candidacy will be damaged, there was a report yesterday, leaders of national conservative groups engineer endorsements have scheduled a phone call for wednesday morning after supertuesday in order to reconsider their support of senator ted cruz. he has to win and i think he will win in texas but also has to win convincingly, otherwise there will be questions about it nationally. stuart: i would say the same about marco rubio in florida. he is probably out. polls suggest he is not going to win his home state. is that accurate? >> i will be careful about that. we don't have a lot of recent polling and things are changing rapidly. we basically have less than three weeks in this environment, three weeks is a lifetime.

stuart: how about john kasich in ohio? another win it or walk away from it, isn't it? >> i agree and john kasich's strategy is unusual. he is basically saying i am focused on march 8th, michigan, i am focused on march 15th ohio, and everything else is far less important. he is not making a big play for much, did any event in georgia and focused on michigan and ohio and this sort of is like rudy guiliani in 2008 saying i am going to ignore the four earlier primaries and pay attention to florida only a this time there will essentially being 23 primaries between march 1st, and march 12th that he doesn't pay attention to. stuart: the whole thing is speeding up. time is so compressed. in the next two weeks, it is pretty much wrapped up.

>> it depends. might view it is because all these 24 contests we face from now to march 4th are proportional we will see lots of winners and losers in the headlines but when you look at the delegate count my sense is it will be relatively compressed. no one will have a majority of delegates when we get to the twelfth of march. someone will have a plurality but won't be anywhere near 50% plus one of the votes but than march 15th, the ides of march primaries, florida 99, ohio 66, all winner-take-all, at the statewide level, vote for your candidate in the congressional district, missouri 52, winner-take-all, statewide level, and whoever wins the majority of those delegates that they particularly if they win for and ohio is likely to be the nominee. stuart: out of time, really is speeding up, fascinating. karl rove right in the middle of it, thanks for being here. tim cook came out again, said it

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ever since apple. should apple unlock the i phone? joining me is jason beardsley, former special ops guy who has a different perspective on this issue. you fought the bad guys, you fought terrorists. whose side are you on in this apple fbi debate. apple unlock the i phone? >> this is a tough debate and it places the argument on the wrong side of light. we talk about interrupting terrorist attacks before it happens. this happened in san bernardine of end of the intelligence of of this iphone will be dated. when we do this overseas combating terrorism we hit hard after a target after target in a short time frame because once that phone gets turned over to us the bad guys know to shift the table, they are burning -- stuart: we got the terrorists,

if we unlock the phone now, we could find out who he was in league with. find out his contract after the fact. and mop up a lot of intelligence. the question stands should we unlock that i phone from your perspective. >> to create a lock picking mechanism, to get inside the phone. the battle is on a room front. when we get that intelligence the fbi is phenomenal at investigation. let's get a visa entry places where terrorists apply for a white's visa that is where we do the work. stuart: i want to know your answer. you have to have an opinion on this. unlock it or not? >> if they can unlock an era and i am for it. i am suggesting if we compel apple to do this we are using coercion from u.s. government to

take a company and placed them in the investigation roll. let the fbi do their work and remember this is not the only place investigating the terrorist background. we have families, the workers, an entire network of people out there. human intelligence all the long be electronic the everyday. stuart: i will put you down a no, don't unlock it. we do appreciate your perspective, thanks for being with us. you saw indeed yesterday, google's new human like robot. we are talking to someone who says robots like this are in a column for the american worker and listen to this. a convicted after murder plays a big role in the future of europe, yes he does. stay tuned, the second hour of varney, two minutes away.

it does not necessarily opening pandora's box. they've gone and possibly work on an iphone that could not be cracked by anybody. >> quoting an executive sandy will likely likely be more security upgrades. could be possible that apple has been working on the phone or

security systems prior to the san bernardino attack to make it impossible to crack into devices. fbi director moments ago is downplaying the outcome of the california san bernardino iphone case. he is saying it is unlikely to be a legal precedent trailblazer. so it is than in the age for a possible, maybe the fbi loses this one that is instructed to other courts. he is laying the groundwork right now, softening a possible hit to the fbi and negative ruling against it. stuart: so he is softening the territory cometh a neighbor we won't win and get into the san bernardino terrorist iphone. that is what he saying? >> the implications if they do get and won't have the same wide effect that cook is trying to argue it would have. stuart: don't open pandora's box. i want to move on to general jackie. he is with us this morning.

i want to ask you about this possible iphone development where you cannot crack it no matter who you are, apple can't do it. it seems to me that would give absolute security to terrorists as well as everybody else. is this a development you'd like to see? >> we have a major problem with the terrorist using encryption devices that these companies provide. we have great difficulty penetrating the system. to further and close the system will make it very challenging for intelligence services. that is for sure. i think we are going to need some legislation here, stuart. we've got legislation that deals with cable phone systems. we don't have anything doing with wireless phone systems. you can search the property of a private citizen when necessary in the interest of the public. one author writes by a judge. we've got to get the congress

here. the administration has such a strong view backing the fbi director, why don't they propose legislation and let's get on with the debate in the congress where we should be having this debate, not just in the media. stuart: well said. the congress could unlock the entire debate and satellite. general, i want to bring up a couple other things to your attention. the u.s. and south korea are going to conduct a huge joint military exercise. 15,000 american soldiers, 300,000 south korean troops. is this all about china and north korea? is this america beginning to push back a little at the pretty sure that the chinese are doing? >> well, there's a lot of things going on obviously in the pacific. this is specifically dealing with the growing concern that the united states and allies have over the kim jong un regime

and what is displayed recently with multiple nuclear test from a multiple ballistic tests, trained to recognize ballistic intercontinental missiles that could reach the entirety of the united states with nuclear weapons. that is his intent. he is also trying to do the same capability with submarines, which would be very difficult to detect obviously. so we want to send a message to him that there is a price paid for his adventurism and this exercise as you describe, this is the largest they've had in a generation to be frank about it. there's an entire barrier group that is participating not in those numbers. those are the numbers of u.s. troops on the ground to include two brigades that aren't in korea. stuart: as a pushback? >> yeah, a step in the right direction. nobody is inside this guy's mind. obviously, stuart. the commander is out there and the national leaders to the best they can to push back.

the other thing is the south korean population has some real concerns about this later. they been expressing those concerns. they've got strong leadership in south korea and another reason for this exercise is to also help study the south korean population. stuart: got it. general jack keane. >> attacking you as always. stuart: check the big board. still pretty much flat for 36 minutes into the trading session we are down 12 pints. the price of oil is down now. that is why the stock market is turned around. we were up 70 odd points after the opening bell. now we are down 12 and that is the reason for it. the price of oil is down with those stocks. hp moving off its timetable for thousands of job cuts. i don't like that. investors don't. hewlett-packard at $10 a share down 7%. how about this.

mitt romney says there could be a bombshell in donald trump's tax returns. maybe he is not as rich as he says he is. all right, you better get into this one. liz: donald trump last october tweeted a message that looks like it was three feet high. donald trump is responding famous and, i've got a tax situation i regularly get audited with numerous businesses. i'm not sure why romney is speaking out now. he was not to be paying 14.5%. stuart: to neil cavuto last night, may we have good reason to believe. we have good reason to believe. if you've got good reason to believe, you better tell us about it. >> there is no indication that romney has any evidence. >> and i'm substantiated attack

on donald trump. >> it's unclear why he's making claims that is not yet justify them. establishment among the republican to get him involved. jo: has a preference. stuart: of an extraordinary thing to do. a lot of talk about taxes. pay your fair share. in the race to the white house bid look at this number from the tax policy center. in 2015, 45% of american households, that is accurate, households paid no federal income tax at all. dr barton is here. as the stock market on the taxation rates forward. what is your point? >> stuart, i have the pleasure and blessing of teaching a lot of kids about economics. we have a great economics competition here in delaware. we talk about these types of

things all the time and economics 101 is you get less of what you tax and you get more of what you incentivize. one of the big options we talk about patterns in the news all the time, the clintons and the sanders and their tax programs than they are trying to tilt this board more to that side of making the 45% growth, putting a bigger burden on the people that are really making the money, and increasing the wheels of capitalism. stuart: the youngsters that you teach, today know how much some people really do pay a tax or are they under the impression that the rich don't pay anything at all or they don't pay their fair share. is that their impression? >> i live in a university town, stuart. we are a left-leaning community well enough with them. i think a lot of the kids to hear that message.

that messages coming through that corporation in particular and the rich people. also we are not paying their fair share. we've gotten a decent balance of what is going on right now and we can tip it any further. stuart: we hear you. get out and teach those youngsters. thank you very much good show them how it really is. some of the country's top spies confirming to congress that many e-mails found on her server are indeed top-secret. more of that in a moment. >> when families are strong, america is strong. >> i did not have relations with that woman. >> i want them out as soon as they can get out. they are not mine. >> what difference at this point does it make. thanks for doing this, dad.

so i thought it might be time to talk about a financial strategy. you mean pay him back? so let's start talking about your long term goals. knowing your future is about more than just you. it's how edward jones makes sense of investing. then your eyes may see it, differently.ave allergies. only flonase is approved to relieve both your itchy, watery eyes and congestion. no other nasal allergy spray can say that. complete allergy relief or incomplete. let your eyes decide. flonase changes everything.

stuart: we are donald little on the big word. we were up 70, now we are down 10. the price of oil has moved out of it. a 56 cents, but still holing 3159. storon hdwarcom a ste w allknowandome us loe. ey ma a dappoting reca. 25%. jo: record in the market value in monday. >> a forecast like that. look at this video. a refugee camp in belgium. they brought arrested between syrian and iraqi migrants. it's all about a young girl -- >> it refugees. 100 people involved, seven and shared, basically about and people arrested. we have seen riots like this. the rioters were throwing anything they could find.

you will see it on the video right here. >> these people have been welcomed into europe by the million i might add. if they walk down the street, a young growth no-caps scarfing europe. there's a riot? >> as of the belgian secretary of state is sagging. come here, they are a guest here. they have to adapt to our rules, the issue across europe. they are not adapt and, not assimilating. women and children are particularly vulnerable because there's not enough law enforcement. we have seen that in germany, sweden and france to take care of the issue of refugees not assimilating, not adapt income and not adhering to local rules and getting upset when a woman is not wearing a headscarf. >> that's really unbelievable. >> let's get the latest on hillary clinton's e-mail scandal. spy agencies telling congress that some of her e-mails closely

matched some of the government's most highly top-secret documents. that is the news on hillary and the e-mails. fox news contributor leslie marshall is with me in new york today. welcome to the show. >> thank you for having me. stuart: i don't think this will affect turkey and the one way or the other, but it surely is not helping the democrats. i raise the issue because the turnouts for the democrats and caucuses and primaries so far has been abysmal. it is down about 30% from where it was in 2012 and 2008. >> first of all, in the republican field you have a lot more choices than the democratic side good second of all, turnout for democrats did receive in the past, we have a republican elected and i was george daddy bush when he was elected, they have record number turnouts.

it's not an indicator that we will see in the general election. in addition, when we look at the demographics of the republican party come you have the older voters and people at jobs you've got to be there all day a lot of blue-collar workers for six day weeks. as a democrat, i am not worried that the turnout has been higher in the primaries for the republicans. stuart: the republic inspired to people. the democrats have not. >> i don't agree they haven't fired up. even though i am a of april and senator sanders has brought out a lot of views that would not come out. we see great numbers for him. >> i believe the turnout will stay home. my fellow democrats stop staying home in the midterm elections.

you just don't see the numbers except in those record years and it was in a guaranteed win for a democratic president. regarding the e-mail, it does come down to did she send them or receive them in what is a person sending them using a private server like national security adviser mcdonough. this level investigation is necessary to look at phone records and interview it. >> i don't think you'll see an indictment. stuart: go back to the original sin, which is judgment. on what grounds does the former first lady and secretary of state decides she's going to have a private server at her home on which to receive all kinds of secret information. at his terrible judgment. >> terrible judgment is a criminal. what kind of judgment is that. >> i'm very confident the american people will put it in proper perspective of november turns around.

stuart: i'm going to update a poll i just received i will bring it to your attention. trump 44, rubio 28. you're a democrat. i shouldn't be talking to about this. he is finished. not yet. he has a real road to home. trump is going to get it. >> must be a little more optimistic first of all for the gop if nothing else. i think donald trump is not good for the country. even though i'm not a republican, i think marco rubio was more of a proper candidate

for the gop in the country. marco rubio needs to get powers can cruise supporters. at the exit polls that show/fighters do not go for trump and he and his work cut out to figure out how do i get those people in that 11th hour. i don't know what that kind of a spread between him and trump if he can. stuart: if there was sanders versus rubio, could you vote for rubio? >> no. you would vote for sanders, a socialist? >> yes, as a democrat we have some more of the same ideology. more than i would've marco rubio. stuart: got me ask you this. several democrats on the program. what should be the top rate of tax? >> we talked about this before the raid. this is how i feel.

stuart: give me a number. >> i don't feel -- i do feel that warren buffett should be paying more tax is. stuart: that's not the question. can you not tell me what you think should be the top rate of tax? >> i really don't know. one of the problems that you said you'd pay a lot more. >> that's because i live in new york city. the top rate of tax at the federal level is 43%. what should it be? >> i don't have a problem with that. stuart: the people you vote for will have more. >> i do believe -- other countries and education providers. stuart: you have no problem taking half of someone's income? >> we are doing that right now. >> no. i feel we are very blessed and have no problem sharing. i like driving on roads that

don't have potholes and bridges that don't collapse. i like feeling a live in a free and safe nation and that costs money. stuart: you want more than not. >> not that i want more. it's different if somebody wants to pay 43%, 50% and have all those deductions and very expensive accountants paid in taxes. >> a narrow down all of the 1970s. if you have a big income on the books from an employer, you have really messed up. you will pay more than half. >> seriously. i'm sorry. stuart: nine grandchildren. about 12 hours a day, five, six days a week. i get out of bed at 3:30 every day in the morning. i paid 61% of my income in income taxes and you want more. >> it is not personal.

it's not about you. stuart: thank you so much, leslie marshall. free speech under attack at ucla. a conservative speaker banned over fears that he may offend some of the student. we've got the story for you and i'm not going to get all of it.

stuart: you will hear this a lot. if marco rubio cannot win his home state, he is in bad shape in the election. a poll in florida. trump 44, rubio 28. the bottom line here is donald trump and marco rubio's home state of florida has a huge

advantage over that candidate. let's go to california. a taxpayer-funded university. it banned a conservative speaker after protests from liberal groups. >> the university of proved this by ben shapiro, no relation to me. talking about anti-free speech and anti-capitalism on university campuses. here is what he said about the mindset. >> when you have an entire generation of people that grew up without the hero of -- any of the countries. instead what they look at is

denmark and sweden. they do not even bother to look at what the tax rates are like. instead, they tend to look at all the wonderful things they have in their life. things will always be like this. hammering away at the foundations. >> he was going to deliver that speech today at 2:00 o'clock. liberals protested. the president of the university and the speech. we will have to reschedule this and bring in opposing viewpoints. yesterday, that lecture, there was no other side of her discussion. mr. schapiro will speak at 2:00 o'clock. he said that he is going there with his supporters. if they throw him off campus, he is going to sue. previous case law has upheld the

right. saying what they want to say. this could be headed to court. >> good for him. no relation. no relation. adam shapiro. thank you very much. df eei is falling way behind isis when it comes to technology. china making threats against the united states right after donald trump's big victory in nevada. more varney in a moment. >> the biggest theft and greatest theft in the history of the world. give me china. give me china. did you ever see china's tone? china. we do not win any more. we lose to china. ♪

thanks. ♪ [ male announcer ] fedex® has solutions to enable global commerce that can help your company grow steadily and quickly. great job. (mandarin) ♪ cut it out. >>see you tomorrow. ♪

>> we have a pretty flat trading session. whale is actually down $0.66. it is in that range. talk about a big move. look at this. a parent of the personal website. it is down 46%. why? they came out with a disappointing outlook. total change of subjects. the enemy of radical islam. many death thrch of his life in hiding. welcome, everyone. the investigative project, steve

emerson. >> good to be with you, stuart. a bold statement i read from you. isis is ahead of us in technology. that seems incredible to me. >> there is a cat and mouse game. the now seems to be winning at this point. being able to exploit western technology to the point of basically encrypting its communications, using western technology to avoid being hit by drones. using technology and building to avoid being shut down by twitter. shutting down 15,000 accounts. isis continues to send out tens of thousands of twitter feeds. i have with me these manuals

that we obtain from isis. i will not publicly revealed them. they reveal, for example, twitter accounts connected with isis. begin treating technical information. advising how to foil attacks by american drones. >> the document is pretty incredible. >> muslims that were raised in a western technology culture. is that how they are doing this? >> they are recruiting all types. they are recruiting soldiers. they have a territory. they are becoming a self-contained state. they have weapons. territory. they have their own currency. now they are beginning to develop. technology.

they are recruiting. social engineering recruits in the west. in fact, it has not been known publicly. they managed to get a senior it over show of the western law enforcement agency. >> that is a big win for the other side. stuart: i am sorry it was so short. we appreciate you being with us, sir. thank you, sir. china says, act responsibly. trump does want to put tariffs on chinese goods coming into america. there you have that chinese warning. act responsibly. gordon, that sounded very much like a threat. act responsibly.

>> it certainly was. clearly direct did that donald trump. they use the phrase, the relevant candidate. talking the most about china. donald trump. they are very concerned that trump is going to win. trump understands the fundamental group. willing to use american leverage to accomplish american goals. that can actually be catastrophic for the very distressed economy. accurate? >> it is definitely accurate. the access to the u.s. market in order to keep their factories going. the united states has an economy that is about 60-70% larger than china's.

we can do better without beijing. we would continue. china is an economy growing. maybe one or two. it is falling fast. a currency which is dropping. $1 trillion of capital outflow. they are in trouble. >> does china hold a whole lot of treasury securities? that gives them leverage over us. >> no, it does not. they have been dumping them at a very fast pace. $100 billion. that shows that it is not affect the big u.s. they may hold $2 trillion of u.s. debt right now. that is an ac of liquid assets around the world. that will hold all sorts of

implications. our debt will be held by our friends. not a potential adversary. talking about dumping our debt. they do not do it because they know that it will not work. >> they need us more than they need them. san diego. 72 degrees and sunny. >> nevada's republican governor as a possible supreme court nominee. >> coming from senate minority leader harry reid. you know, senator mitch mcconnell saying he has said time and again lately that the judiciary committee has unanimously recommended no hearing on any nominee coming from the white house. stuart: that is what david said.

he said that this morning. i do not care who it is that the president puts forward. not going to be accepted. >> a contentious nasty election-year, you are going to introducing other nasty fight into congress over a supreme court justice. stuart: he is right. it is not going to happen. we bring you the sector report. >> we are watching oil prices as they continue to fall. you see exxon mobil down one and a 3%. conoco phillips. a nice exception here. you have this concern about oversupply. plus we see those inventories coming in higher than expected. stuart: we got it. thank you very much. i call this a flat day. google has a new robot.

we have a guest to his calling it, the robot, the american worker. that is next. ♪

nicole: i am nicole petallides. the dow industrials and s&p all have up arrows for this week.

up 41. the s&p is up for. the nasdaq up three. some of your dow have winners and losers. finances and health care are gaining. chevron and ibm pulling back. we are also seeing names with new highs and new lows. better than expected sales. new highs. 26%. one of the energy names down 6%. we want you to start your everyday on the fox business that work. lauren and i will get you ready. breaking news.ust drop fbn a.m. 5:00 a.m. ♪ risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities.

cme group: how the world advances.

stuart: higher sales at salesforce.com. i am not quite sure what that means. they are down 9%. >> they are up. everyone uses them. my next guest has two dramatic headlines. we first saw these google robots just yesterday. robots are -- for american

workers. let's welcome eric schaeffer. that is strong. what do you mean? >> well, you have donald trump that is railing against china and mexico. i want you to imagine the economy. you have robots within the next 10 years. robots that can handle almost any kind of industrial item. robots that have the emotional intelligence to sell things. the platform. to be able to do things that you would normally never think that robots could do. it is coming. it is the death of the paycheck for the american worker. we really need to begin to think about these things. it is coming sooner than you think. many people know about him. talking about the positives and the negatives.

he thinks that everyone should have a robot. it should provide such great luxury. i guess he wants to call them bernie. i think that, look, we need a plan. protecting the american worker. it is not just china and mexico. it is our own intelligence. it is our own technology. stuart: i do hear you. you have a second headline. the fbi wants apple to unlock that terrorist iphone. you have a strong opinion on this. what is it? tell us what you think. >> i have said this for months. i believe that apple is ripping off the security of americans. in this case, frankly, it is largely about branding. it is about profit.

they want to look to the american public into the global market that they really protect the consumer. they do not care about the actual security of the american public. i love privacy. who does not love privacy. privacy should not trump the security of your family. it does not equate. there needs to be a balance. the american people are agreeing. >> it is some kind of legislative fix. where the law is changed and apple has to comply with that wild. you know, it will be an awful long time before you come up with that legislative fix. that iphone remains locked in san bernardino. two very good headlines.

you gave us an opportunity to show those robots all over again. eric, thank you very much for joining us. come again. isis taking aim at silicon family. that threat with zuckerberg. >> a new video. twenty-five minutes long. it shows a graphic of jack dorsey and zuckerberg with bullet holes through their head. they are retaliating taking down the username and profile. what you see here is washington placing pressure on the technology company. twitter taking down more than 125,000. now, those that are sympathetic with it are saying we will push back. >> what is a reaction with that?

>> you look at the studies that are done by george washington university. actually declining over the past few months. stuart: okay. >> way for it. >> in the future of europe. yes, he is. my take, next. ♪ thousands of hours of painstaking craftsmanship. and an infinite reserve of patience... ...to create a vehicle that looks, drives and thinks like nothing else on the road. the all-new glc. the suv the world has been waiting for. starting at $38,950.

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and start gathering the information you need to help you keep rolling with confidence. go long™. ♪ >> here is what else we are following. abercrombie and finch being called the most hated country in america. it looks at companies across the retail site there. the entire retail or. elon musk. spacex. another launch due to weather. spacex has yet to successfully land a rocket. it does not have high hopes it will pull this one off either. starting next week in new york city. it will be forced to put a new

warning label on all menu items with high levels of sodium. restaurants that have failed to comply, it is a $200 fine for violations. stuart, take it away. >> who would have thought that an ax murderer would have played a role. >> john hirst killed his landlady with xanax. he served 35 years in a british prison. he wants to vote. mr. hirst took his case to a cure p.m. court of human rights. since britain is a member of the european union, they were old they were abusing the ax murderers writes. he must be allowed to vote. bridgend making its own laws must now submit and a foreign courts authority.

the issue, of course, is sovereignty. the timing is perfect. britain holds a referendum. whether to stay in europe. if the breadth leave, it is a huge blow to europe. it is bitterly divided over muslim migration. if the breadth leave, it is over. when he heard a european court had ruled in his favor, he got a hold of a bottle of champagne and celebrated. who knew that a man like that would play a role in the future of europe. ♪

>> marco rubio. of the egg pig in rubio's home state of florida.

we have the numbers for you. trump fires back. kind of reminds you of harry reid four years ago. does it not. tim cook says on cracking the iphone will be bad for america. a cancer he says. you are going to require all the employees to carry a gun while on the job. third hour. it starts right now. ♪ stuart: look at this. a bombshell. out about a half hour ago. donald trump. forty-four. casey can carson single digits. this is a florida poll. monica crowley is running us for

this hour. rubio must win in florida. pretty much all over. >> donald trump. he has one in three vastly different regions of the country. new hampshire, south carolina and nevada. recumbent on the remaining two. winning their home states. stuart: that is a huge leap for trump to have right now. >> it is stunning. we have seen marco rubio leaving the state or at least making it competitive. >> there are two polls. they showed trump and bruce

knecht to neck in texas. >> absolutely. it speaks to the viability of their candidacies. ted cruz still has 36, $38 million on hand. they do not win their home states, then the resources will dry up. >> a straight forward shop. monica, stay there, please. mitt romney says there may be a bombshell to reveal in trump's tax records. roll tape. >> there is a bombshell in donald trump's taxes. i think that there is something there. he has not been paying that kind of taxes we would expect him to pay. perhaps he has not been giving money to the vets are to the disabled.

>> romney says we have good reason to believe. i would like to hear that reason, please. mitt romney. one of the dumbest and worse candidates in the history of republicans. now pushing me on tax returns. let's get back to romney for a second. i want to know what that reason is. he is withholding evidence. >> sort of a reversal. harry reid attacked him. we do not know if he has ever paid any taxes without any kind of proof to substantiate that claim. it is putting pressure on donald trump. he has said he will do it. it is very complicated. it will take a long time to do it. what may be in the tax returns.

maybe he is paid eight to 10%. maybe no federal -- >> what reason you have to say it. even if all of those things may be true about donald trump, will it matter? will anyone care? >> and my opinion, no. china is warning america to act responsibly. after seeing comes victory and nevada. a veiled reference from china there. do you read much into it? >> could be nervous about this and they should be. i think that this is a good thing. i do not know if trump will be the nominee. what he is doing is rattling the cages of our adversaries. this is a very important thing.

they have ran over the united states. i think that this is a positive thing. stuart: welcome to the show, liz. [laughter] still politics. we love it. how about voter turnout. this year compared to 2008. republican participation has surged. i do not have a percentage number for you. the democrats are down roughly 30%. >> this is largely due to one donald trump. we will vote for him. he has really energized the base and brought in new voters. especially young people. jazzed by him and jazzed by his message. if trump is not the republican candidate, his voters will not just go away to rubio or cruz. they just will not vote. >> maybe, maybe not.

nobody particularly like serve. that does not mean that they will not vote for her. she has a huge enthusiasm gap as well. >> is trump really bringing out the reagan democrats like never before? >> that is true. there have been democrats that have been allowed to vote in some of these contests. he is attacking them. >> it is really on today. apple trying to make a phone that even apple cannot hack into. nobody could hack into it. new developments on this one. >> edward snowden favorite app. it is a messaging app that he uses to talk and communicate with. one of the developers of it is

being hired as an intern at apple to help bolster the encryption of iphones. this is what apple has been wanting to do. this app, by the way, it is popular on google's android system. they hired this guy that does this encrypted app. they hire this guy so that he can work on the next generation of iphone software which would not allow anyone to get into it. >> that is the story. already criticizing iphones for not being strong and secure enough. >> what about that guy's security? he is pivotal. >> now, this. hillary clinton. spy agencies. they say that e-mails on her private server closely matched top secret documents.

>> almost every day now we get a new report. a possible mishandling of materials. possibly more. now, for the first time, you have the spy agencies. the intelligence community now confirming that language that is used to classify shows up in her documents. there is no way that this secretary of state that has been around government for a long time could not have known that these documents were classified. even if they lacked. she had to have known. >> that is a good explanation. if florida is do or die for rubio, then taxes is to or die for ted cruz. here is what karl rove said earlier on this program. >> he needs to win convincingly.

otherwise, it will be disadvantaged. some leaders of groups who had engineered endorsement of them. has scheduled a phone call for wednesday morning after super tuesday and ordered to reconsider their support of senator cruz. he absolutely has to win. >> this is dan, by the way. his article today is about donald trump killing off the candidacy of ted cruz. i would have thought that ted cruz hurt himself with the dirty tricks. people do not actually like the guy. >> i think that ted cruz has created the conditions of his own demise. he gave 21 hour-long speech on the senate floor. this was a political strategy,

stuart. creating himself as mister outsider. >> he spent two years with the support of a lot of other groups. the establishments could not be trusted. only he, ted cruz, establishment conservatives. evangelical voters. isolating all the other mainstream candidates like rubio, bush and kay said. donald trump stole the entire strategy. the only group that ted cruz still carries is very conservative. there are not enough very conservatives to win these primaries. trump has 33% of all the rest. he has taken the cruz strategy away. he has nowhere to go at this point. >> are you jumping on board?

>> trump is looking increasingly inevitable. there is still the midwestern primaries. there may not be as much support for trump. if crews were to drop out, rubio with play his hand. trump has a lot of momentum. >> are you accepting of the idea? it may be trump. maybe the president of the united states. >> not particularly. we criticize the policies just as they are. it would not be good for the country. >> we have now argued about this. i do not take anything that trump says at face value. >> he does not either. he is simply establishing a negotiating position. i will give them terrorists or i will build a law.

that will change. no? >> possibly. he is trying to act tough no matter which way he turns. it is hard to predict exactly where he is going. people may say that a like that. china is not some contractor in new york city. this is a big country. selling this with radars. you want to go toe to toe at that level with them, you are running some risks. >> they may not like the results. i wish that there was more evidence. backing presidential when the time is appropriate. i will keep my fingers crossed. stuart: didn't donald trump called to the wall street journal. >> he said that i was killing

him. he may get the last laugh. [laughter] stuart: thank you for joining us. how about this one. requiring his employees to get concealed carry permits. workers armed in the office. that business owner joins us in just a moment. ♪ [bassist] two late nights in tucson.

blew an amp.but good nights. sure,music's why we do this,but it's still our business. we spend days booking gigs, then we've gotta put in the miles to get there. but it's not without its perks. like seeing our album sales go through the roof enough to finally start paying meg's little brother- i mean,our new tour manager-with real,actual money. we run on quickbooks.that's how we own it.

>> here is an update for you. on the senate judiciary committee. president obama is looking for a very moderate supreme court nominee. we are told that the president is looking at this. a republican. looking for a candidate that would be very acceptable. we do not need you to look at him. lose publicly. >> they put themselves in a box.

they assume they will nominate a far left wing nominee to the supreme court. we are not going to consider doing this. what obama is doing is calling their bluff. putting up someone who is moderately and be very acceptable. >> all said it does not matter. >> it does not matter who. >> well, they will pay a political price, maybe. >> it will be energizing to both bases. you have a swing on the seat now. much a flat eight. we do not have that today. we are up eight. how about the price of oil. down 2%.

in that range of 30-$32 a barrel. that is where we are. the furniture people. you see them in the balls all the time. they have a disappointing forecast. it was down 25%. it was down 26. how about this. a new rule to its employees. they must be armed while on the job. he is even supplying the gun. welcome to the program. this insurance company. >> yes. why do you have this rule for all employees? >> i live in georgia. my office and griffin georgia. south of the atlanta airport. one at saint simons island. they are all the top 10 in the state of georgia. that is a little bit of it.

>> do you have any personal experience with gun violence? >> while attending night law school, i received a call that mile goal was dead. i was an orphan. this uncle of mine took me in as an orphan. he was murdered on the streets by three thugs. this is a world war ii veteran that lied about his age the day after pearl harbor. when on this service and became a decorated war hero and came back and raised a family. he was gunned down in his own hometown. the ladies in my office embrace this.

opening a gap in our security, so to speak. always packing heat in the office. always assume that she would take care of things. >> do they carry in an obvious open carry. they all ran out and got their casino weapon. a4 10 shotgun and a pistol. >> look at that ain't. all right. okay. lance, i am sorry i am out of time. that is a fascinating story. >> second amendment right.

the state does the background check for potential employers. think about that. stuart: fascinating. we appreciate it. we have a new poll. it said this is about a texas republican race. would you look at that. ted cruz 38. trump 33. rubio 21. so one down the line. ted cruz out front in his home state with a reputable poll. should he win his home state? making the argument. rubio is weighed behind. they have a lot to say about donald trump.

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nearly 40% of millennial's do not eat cereal because it is too hard to clean the bowl. we will deal with it later this hour. ♪ there is an analysis about trumps run. pundits are having a field day. i think a lot of them have missed the point. so many voters have really had it with president obama. it is the president at the center. the pond and tiptoe around this. they named the president after the support. usually some vague anger or exclusion. that is all true. many everyday churchgoing americans are outraged at the

president's failure. persecuting them around the world. he does not lift a finger. they are not happy with the tilt away. they do not like a president that goes around the constitution that make illegals legal. oh, the list goes on and on. of course, people are angry. it is burning anger at what president obama has done and what he has done in our name. donald trump that has given voice. they will not say it. if they say it, they admit the failures. donald trump has turned the political world upside down. running against the president and his failures. that is why he is winning. ♪

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stuart: domino's pizza higher profit, higher sales and a steady growth in the mayor and the new height of 9%. domino's pizza. back to politics, five days to supertuesday. let's bring in steel and -- senator steve gaines of montana. you have back marco rubio but i think you may have seen that poll earlier from quinnipiac in

florida showing from 16 points ahead of marco rubio in his home state. not good news for marco rubio's supporters. >> it is us step back. no matter how important this election is this is a 3 for 1 election determining not only the white house but whoever wins the white house probably maintains control of the senate and to ever controlled the white house and u.s. senate will dictate what happens in the united states supreme court. looking at the national will head to head donald trump versus marco rubio, wall street journal poll last week had marco rubio up 57-41 over donald trump so it is a 1-on-1 race, he is winning by 16 points. we need to get behind one candidate because marco rubio is the candidate that can be hillary clinton and donald trump. stuart: if you get behind one

candidate that implies one of the candidates drops out his votes will go to another establishment candidate. a lot of his votes will go to donald trump. if john kasich is the go to donald trump, they would. you might not end up with a mathematical been using to are going to get. >> there was a 57-41 head to head marco rubio versus donald trump. stuart: not many -- i don't know of any other pole as extreme as the one you are referencing. >> not many folks polling head to head from an rubio eager but who beats hillary clinton in the fall? consistently marco rubio of all the candidates consistently beat hillary better than anyone else. stuart: you want to win more than anything else. >> on the democratic side they are divided between bernie and hillary and republicans are divided as well and the nation is divided. marco rubio is the candidate

that can bring the republican party together in the fall and importantly brings the nation back together with this optimistic 21st century vision for this country and marco rubio can hit reset on the conservative movement and get this next generation of conservatives behind marco rubio and that is why you see these endorsements behind marco rubio. you don't see that with the candidates. stuart: back to the original poll, the quinnipiac poll trump is 16 points in front of marco rubio. you would agree if marco rubio does not win his home state he is in deep trouble. >> ted cruz has got to win texas, marco rubio needs to win florida. we need to win know this down, marco rubio vs. donald trump, marco rubio wins. stuart: thanks for joining us, just fascinating. thanks very much. now this. president obama heading to cuba next month.

monica crowley calls this nixon goes to china moment but for all the wrong reasons. explain yourself. >> my column points out barack obama has long wanted a legacy building moment on the international stage and (a nixon goes to china moment, flipping an adversary to something of the alliance with the united states. she wants to walk through the streets of havana of the way richard nixon walked through the streets of beijing in 1972. nixon actually got something for the opening to shine at. he got something to serve u.s. interests, got china to serve as a counterweight against growing soviet power and chinese help with the war in vietnam. barack obama got nothing in exchange for normalizing or getting on the path to normalizing relations with cuba. this is what donald trump means when he says obama is the worst negotiator ever. stuart: he will be asked to give us back guantanamo bay. will be doing?

>> he is inclined to give the military facility to the castro regime. they could turn around and say russia or iran meaning now you have cuba as a renewed security threat to the united states. stuart: that would be devastating. back on those terms. >> security threat. stuart: thank you. i am going to switch gears. how about this? news survey shows nearly 40% of millennials don't eat see real anymore because it takes too much time to clean up. come on in, you are a millennial, you are a writer. why did you respond to a survey like that? >> i just thought the idea that millennials too lazy to eat

cereal was such a hilarious statistic that i had to write about it. stuart: i take it you eat cereal and clean up afterwards. >> when i have time i do but usually i have to get to work so early i eat at work. stuart: we should take this seriously because it is a dumb survey but it fits the mold of millennials are lazy, millennials are entitled, millennials don't work very hard, millennials don't have the right values. that is what it fits into and why i think he responded because none of it is true as far as you are concerned. >> i think people really like to put these labels on millennials but it is a difficult thing to try to do just because the age range is so broad, that are in college and some that are inert earlier 30s of it is hard to pin down characteristics that describe the millennial generation. stuart: you are harsh in your

response to the survey? >> no. i wanted to approach it with a little humor because it is funny how ridiculous this is and there may be some truth to it but i don't think it can apply to the hole millennial generation. stuart: thank you very much. the millennials who work on this program work like you wouldn't believe and we are proud of each and every one of them. thank you very much. we are up 37 points. not exactly a rally. in the absence of a big sell-off come on in andrew arons from strategy advisory group. known then, let's suppose that we trade oil in an hour range, stability in oil, $32 a barrel. let's suppose the banking problem in europe subsides a little bit and the world does not go into a deep correction. 's and all of those worries

these think we might get a solid rally from here? >> there's a good chance the market may bounce. stuart: regardless what else happens. >> i look at cyclical patterns in the market, the market typically pretty strong of from november to may and market is up 75% of the time from november to may. stuart: the market is up three times out of four. every year since 1950. then it goes back again. >> the last 35 years the s&p interview dropping 14.2% on average and manage to be a 75% of the time. stuart: the early ear sell-off we have this year, the january sell-off. >> only in the first and second inning this year. stuart: giving hope to all those viewers in fighting their nails.

if i were with you on this i would play an index. i am playing across the board and playing an index on the isn't p 500. a piece of all the action. >> the s&p average in 2.2%, 12.7, 50 basis points. stuart: the dividend yield, 2.2%. at ten year treasury, 50 points, basis point difference, the market may rally. stuart: very interesting. thanks for joining us. it was short and sweet. apple versus the fbi, the feds want to break into iphones. tim cook standing firm. this is security versus privacy debate some. judge andrew napolitano is next. pet moments are beautiful, unless you have allergies.

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stuart: another development on president obama's possible

supreme court nominee, nancy pelosi says she would be open to republican supreme court justice is so what? >> she has no power. she is not in the senate. this looks like they are trying to surround the republicans with this idea that the president may in fact nominate a moderate and it looks like they are ramping up their efforts to call their bluff. stuart: the reasonableness of the president. >> not just the president and nominee and how dare he turned down somebody on your side. stuart: eminently qualified. >> barack obama has had a lot of issues with him as the audience knows but he is a brilliant politician and a brilliant tactician and now i think he is playing with the republicans. stuart: i think he is. >> whether or not he does is another issue. pmi just be playing with and now nominating a left-wing paris nina's won't get a hearing. stuart: he is doing exactly that but i am not him.

elon musk's space x rocket launch scrubbed the last night. this is the rocket that is supposed to land, reusable, it will be another attempt scheduled for tonight. to date we have to tell you the tests have not been a success. witness what you see on the screen. the fight between apple and the fbi lied, apple ceo tim cook says letting the government acting too and i phone would be bad for america. >> this would be bad for america. it would set a process, many people in america, it is in our view the equivalent of cancer. this is something that should be created. i have not talked to the president. i will talk to the president. stuart: there is a development on this. apple says it could make a phone that nobody could break into,

not apple, the fbi, the cia, nobody, it would be absolutely locked, period. judge andrew napolitano joins us from washington d.c.. you know what is coming. i take it this would be perfect for you. a phone that could not be unlocked. absolute guarantee, constitutional privacy. you would love it. judge napolitano: i would love the system in which the government doesn't conscript people to work against their will, that is called involuntary servitude. none other than general michael hayden, former director of the cia, former director of the n s a, architect of the we shall spy on everybody in the united states of america, and a dear friend of mine, agrees with me on this that if apple is forced to create a key and if that key is used so much as a once, the imprint of the key on the internet would be made known to

professional hackers worldwide and no one including the government's security will be safe. stuart: brilliant avoidance of the question which i repeat. if there is indeed an iphone which cannot be unlocked, nobody but nobody can ever get into it, you would welcome that because -- judge napolitano: i would welcome as a believer in the capitalist system whenever apple can sell that the consumers want to buy. you can still get a search warrant from a judge if you have probable cause and you can still reverse engineer and higher avalanche in years from apple. you cannot force apple to work for you. that is what the federal government is about to learn. stuart: the other side of the coin would be a few have a phone which is absolutely not to -- you can't get into it. absolute privacy for the terrorists as well.

i won't be pejorative because i don't think you consider that side of the argument so strongly as the absolute primacy. judge napolitano: the issue in this case is beyond privacy, can the government force you to work for it. tim cook's argument that the key would be a cancer is an argument shared by general hayden and many people who ideologically are on the federal government's side. my argument is the constitutional one that since the thirteenth amendment which prohibits involuntary servitude the government can't come to you, stuart varney or tim cook and say you will work for us whether you want to or not. it simply doesn't have the authority to do that but philosophically, how could apple make a phone that apple can't break into? that is like saying can god make a rock so heavy he can't live it? how can apple make a device that it doesn't understand? stuart: you know what i would really like? i would like the authorities to lie, to say we can't get into this iphone, no way we can

figure out and yet they can. lie through their back tees, confuse the enemy, ruin the enemy. judge napolitano: you will be happy to know under prevailing supreme court opinions the authorities are permitted to live with it they are integra getting a common cook, hillary clinton or a terrorist. stuart: now he has gone off on a tangent. it would be constitutionally protected lying. that is okay with judge andrew napolitano. judge napolitano: i didn't say was okay with me. that is what the supreme court has said the stuart: you -- judge napolitano: you like pushing me when i am a 300 miles away. "cavuto coast to coast" when you are a long way away. we will see you tonight on special report. judge napolitano: absolutely.

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stuart: a new report claiming sleep apnea may have played a part in the death of supreme court justice antonin scalia.

dr. we understand antonin scalia had sleep apnea, he had one of those masks that are sometimes worn overnight, he does not wearing the mask the night of his dad. i get no sleep apnea was dangerous and could be fatal. >> absolutely it is. we don't know exactly the cause of death. the purpose of this segment is not to say for sure that he died from sleep apnea but you are a 100% right "cavuto" the 9-year-old man, white obesity, diabetes, you have sleep apnea and that could be the reason this happened. stuart: how do you know? >> 12 million people have this. more than half of people who have or may have sleep apnea don't even know about it. if your girlfriend or wife constantly kicking you in bed because you are snoring, you are joking in bed and gasping for air, that is probably sleep apnea. you have air away extraction, don't get enough oxygen so you

go in and out of this breeding pattern, your brain says i need oxygen so it wakes you up. getting a four five times to go to the batter may be a prostate problem or it could be sleep apnea. when you don't get enough oxygen and have some diabetes, vascular issue is. those and lead to cardiac arrhythmia and push you to have a heart attack. stuart: first time i ever heard of this was a 60 minutes peace maybe 30 years ago, a guy falling flat on the floor in the middle of the day. >> they have gone 7 hours, they are more tired than when they went to bed. they are always tired, the guys sleeping like this, in the classroom, very dangerous. it could lead to metabolic syndrome and heart disease. goat to sleep apps, they monitor unc your oxygen level end this machine is a positive airwave pressure or you can put a device

in your mouth to get air to go in. there is a treatment for it and -- stuart: before we close, there are not many 40 or 50-year-olds who die from sleep apnea in the middle of the night? >> nobody can increase the risk of death by twofold. between 40 to 70 if you have sleep apnea we can save your life. it is an easy problem to fix and we can do it. stuart: you are all right. thank you very much. there will be more varney after this. on the floor! everybody down! nobody move! on the floor!

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received this one, shows ted cruz in front of donald trump, 15 points. must win texas ted cruz. >> much better news for ted cruz, commanding lead in his home state going forward. stuart: neil cavuto, it is yours. neil: sort of confirm the desperation to find any way to take down donald trump. that is proving easier said than done. the fallout today from the former republican mitt romney who thinks there's something there, something potentially explosive when it comes to donald trump. >> we have good reason to believe there is a bombshell in donald trump's taxes. neil: what do you mean? si jeter he is not anywhere near as well be as he says he is or he hasn't been paying the kind of taxes we would expect