mcdowell, always a pleasure. "varney & company" begins right now and take it away. stuart: i certainly will. good morning everyone. look what we're presented with today, an ax attack by a migrant in germany. in baton rouge, a deliberate assassination. and the same accepts of unease, media attacks on making america great again, but no-- and stocks may pull back a little, but we've had five record highs in a row. the dow is above 18,500 and we'll be there at opening bell. things fall apart, but the market holds. netflix does have competition and customers are no longer signing up in droves. to that convention, the left is

in attack mode, desperate to throw cold water on the trump show. in fact, i think it was the most innovative and entertaining opening night of any time at the convention. you will see it all. but we have to tell you about the latest terror outrage in germany. a young migrant from afghanistan attacks train riders with an ax. four injured, three seriously, and isis flag is found in his room. terror, things spinning out of control, but no selloff. "varney & company" is about to begin. ♪ ♪ now, that's how you produce a convention. there's a man who knows television. >> a show like that every day. >> spielberg could not have done it better.

>> there you have it, donald trump makes his entrance. that's a break in tradition because he appeared himself on the first night, you've never seen that before. he came out of the mist and fired up the crowd and introduced his wife melania, you'll see a lot more of all of this throughout today's program. you've got it. first, your money. this is where the dow closed yesterday. read it and be surprised. 18,533. here are dow futures, we're going to be opening almost dead flat, ever so slightly lower. no selloff amid all of this turmoil. no big selloff. netflix may be the stock of the day. weak subscriber growth, that will be down big, the opening bell. one of our market watchers will explain why he is buying netflix on this dip. that's later. joining us now is the author of cocktail investing, market watcher lenore hawkins. look it, several days in a row

we've had chaos, confusion, anxiety, terror overseas and at home, but the market keeps going up. can you explain this for us? >> three things, the first one, we're kind of getting used to it, which is sad. we're getting used to this and getting out and seeing another horrible event and we're going to continue on with our life which is what we should be. the second thing, the economic news not as bad. it's not great, but early in the year, it was looking like a recession was much more likely than now. the third and most important thing is post brexit, every major central bank around the world, a heads up they're putting the foot on the accelerator. they said we're not going to do it, the bank of japan doing it, people think of china doing it, the ecb, and the fed while no longer accelerating, that seems to be pretty much off the table, which is in effect, that's another loose monetary policy. stuart: you've managed money for wealthy people in europe and wealthy people in the united states. you live in san diego and live in italy-- so you live on both sides of

the pond here. could you in good conscious put your clients more money into the stock market at these levels? >> i think these levels are insane. what we have-- >> answer the question. >> oh, no, we're very, very defensive right now. stuart: you wouldn't put fresh money in? you don't think it's going higher? >> i think it has a good possibility of going maybe 10% higher based solely on monetary policy. stuart: 10%? >> july 29th we have the stress test coming out of the italian banks and that could rock the world and no one is paying attention to that. stuart: so you've got us all intrigued. >> sorry. stuart: now-- >> it's a trading market and not a-- >> and an attack with an ax on a train. 14 or more now treated for shock. ashley: there were about 30

people on this train. a 17-year-old afghan refugee, he'd been in the country about a year. he came in with about 150,000 other afghans into germany when you had the large surge of my grab grabts-- migrants were coming into germany, angela merkel encouraged. he picked on four people, tourists from hong kong, three injured, one slightly injured. why? no rhyme or reason to it. witnesses say that he shouted allah akbar, and he was shot dead by police liz: just a month ago, there was a terror cell that german police disrupted, a paris style attack on dusseldorf they were planning, where 10 men thought would be with suicide bombs, they wanted a paris style attack. stuart: and they interrupted it.

>> and angela merkel admitted, yes, isis is mfugees. stuart: you've lived near nice and i take it europeans are anxious? >> the fear is really growing. after paris, the paris attacks, there was kind of a sense of we're going to stay strong, but this last one in nice seems to be pushing people over the edge, but it's a horrible situation in italy, we see the refugees coming across the sea there and you see the horrific condition that these people are in. stuart: it's a humanitarian problem on one hand and you're inviting in a terror problem on the other. no easy answer. >> nobody wants to turn the people escaping terror, trying to escape it, you don't want to harm them, but at the same time you don't want to die either. stuart: i'm going to stay on the theme of terror. that was the theme of the republican convention last night was make america safe again. listen to former new york city mayor rudy guiliani, roll that tape. >> for the purposes of the

media, i did not say all of isl islam. i did not say most of islam. i said islamic extremist terrorism. you know who you are. and we're coming to get you! . stuart: he meant what he said, i do declare. byron york is with us. have you ever seen him like this before? >> rudy was fired up and this was his sort of night. the theme was make america safe again, kind after two part make america safe. one. protect against international islamic terrorism and two, protect police and restore order in the united states itself. guiliani has a record of both, obviously, he campaigned a lot on 9/11 when he ran for president, but i think he'll be most remembered in the end for

cleaning up new york from a period of terrible crime and disorder. so this was exactly his night last night. stuart: it seemed like throughout the evening republicans were saying, you'd better support us, we're on the right side of history because if you don't support us, you get hillary. it was a constant barrage of watch out, if you don't like us, you get hillary. that was what it was all about last night, wasn't it? >> it absolutely was. remember, there's a couple of sides to try to unite the republican party. there's still, obviously, some republicans, there's some ted cruz dead ending in cleveland, and john kasich is essentially boycotting the convention so they're trying to bring some republicans together, the way to do that is to say hillary clinton would be a disaster and they're hoping that that message plays with the larger television audience and independents out there across the united states. you know, no matter what you think about donald trump, hillary clinton would be terrible.

stuart: we heard that loud and clear. byron, stay there. i've got some more for you coming up. melania trump, she gave a strong speech at the convention last night. the left already attacking her vigorously. they say she stole passages from a speech by michelle obama eight years ago. we'll get into that one for you. the mainstream media describing chaos at the convention. it was just a floor fight about rules, they call it chaos. it's a commonplace occurrence at a political convention, a rules fight. they call it chaos. we're on it. and a new poll from monmouth university, the gap was 7 points just in june. and hillary mentions multiple times last night, here is one of the heroes in benghazi, he joins us next. roll that tape. >> had she done her job that night, we wouldn't have had to compromise the annex.

ty, glenn, sean and ambassador stevens would be alive today.

>> some big name dow stocks we'll be watching at the opening bell. start with united health. better sales, its pharmacy services business. it's going to be pretty much unchanged. higher profits at goldman sachs, where is that going to open? a bit lower, actually. higher profit and sales at johnson & johnson, the company raised its outlook. the market does like that. the stock is higher. these are all dow stocks. and investigators like what they saw, opening a couple of bucks higher this morning, all of those are dow stocks, not all will be higher. we are probably going to have a pretty much un-- an even, a break even, what is the word i'm looking for. unchanged. >> clarity.

stuart: to the convention, please. [laughter] >> and one of the survives of the benghazi attack, a member of the security team at the annex. listen to this from last night. >> when hillary failed to protect her people on the grou ground, had she done her job that night, had she done her job that night, we wouldn't have had to compromise the annex. ty, glenn, sean and ambassador stevens to be alive today. stuart: he's the co-author of 13 hours, the inside account of what happened in benghazi and it was made into a movie. mark joins us this morning. good to see you. >> hey, good to see you. stuart: what did hillary clinton not do that she should have done that would have helped you in benghazi? >> well, she should have

provided an e-mails to end the request for security there at the consulate, you know, the consulate was about eight acres and guarded by five diplomatic security officers and anybody that has ever been around anything to do with security knows that is incompletely-- or completely inadequate. a lot of that boiled down to the ideology how they addressed her foreign policy to libya in the beginning. stuart: do you directly blame hillary clinton for what happened in benghazi? >> yeah, i do. i mean, you know, if you're in charge, you can delegate your authority, but you can't delegate responsibility. if you're the person in charge and choose to take that position as if she choses to be elected president, is she going to take responsibility for the things that go wrong? she has no problem taking responsibility for the things that go right. as a good leader you have to take responsibility for the

errors, as well as as the home runs. stuart: what the republicans are trying to do is unite the party behind donald trump in the run-up to the election in november. that's what they're trying to do. you are a part of that. do you think you've succeeded? >> you know, i think so. i think we're bringing more people every day because you know, the more they really look and scrutinize hillary clinton's not only her foreign policy, her ideology and her ethics and honor, it's just not there. she doesn't meet the mark. she doesn't rise up to that bar that our country has set for so long for the position of presidency and she doesn't even-- i mean, there's no way she can meet that mark. stuart: i want to change that subject for a second, mark. you were in the convention hall last night and i'm sure you saw the speech by mrs. trump, if i can call her that. >> yes. stuart: what did you think of it? there's some criticism this morning, i'm sure you know about it.

what did you think about it last night? >> i thought she did a wonderful job, she spoke from the heart and she spoke the truth of how she felt. and you know, they come back and criticize or compare because you're similar. i think it's nit-picking at something that doesn't matter. stuart: i think we agree with you on that one. ma mark, thank you for joining us. >> thank you very much. stuart: i want to take another look where the market is opening this morning. just 12 and a half minutes from now. we're down a tiny fraction and we'll be well above 18,500 when that market opens. down maybe six at the opening bell. no big deal. that's what i say. i'm going to update everything from turkey where president erdogan wants to bring back the death penalty for failed coup plotters, the death penalty.

next, the left attacking melania trump's speech because of a similarity to a speech michelle obama gave eight years ago. we will play you the tape. to folks out there whose diabetic nerve pain... shoots and burns its way into your day, i hear you. to everyone with this pain that makes ordinary tasks extraordinarily painful, i hear you. make sure your doctor hears you too! i hear you because i was there when my dad suffered with diabetic nerve pain. if you have diabetes and burning, shooting pain in your feet or hands, don't suffer in silence! step on up and ask your doctor out diabetic nerve pain. tell 'em cedric sent you.

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it's going to be way, way down, 13, 14%. a big drop for a stock of that size. we're on it and bring you that. the mainstream media feigning outrage for melania's speech at rnc and they say she plagueized some of it. >> my parents impressed on me the value that you work hard for what you want in life, that your word is your bond and do what you say. >> and barack and i were raised with so many of the same values like you work hard for what you want in life, that your board is your bond, you say-- you do what you say you're to go. >> the only limits to your achievement is the strength of your dreams.

>> we want our children and all the children is the only limits is the reach of your judgment. stuart: time to make a judgment call. liz, was that plagiarism liz: no, these are nit-picking. the these are ideals. what are they going to plagiarize next? . >> your word is your bond, how many times has it been said in a daily basis. if that's the best they can come up with, it's a pathetic attack on mrs. trump, she did a good job. stuart:ing this, that's the word i used earlier with maria, pathetic. byron new york, i know you're there. that was a speech. you're still there. english is not her first language, there she is in front of tens of millions of people,

poised glamorous and i think powerful. i think it's nit-picking in extreme by the left to go after her on this issue, what do you say? >> well, it was a touching and a personal speech and i think in many ways it got across what the trump campaign wanted to get across. ere's no doubt lis the words and reading them that that section seemed to be lifted from an earlier speech by mrs. obama. it seems to me that the campaign could say, made a mistake, these are common sentiments, everybody feels this way. stuart: hold on a second. >> it was a mistake, sorry about it. stuart: paul manafort, he runs the campaign and he said she used her own words, that's what he said. can you really say she-- >> i know that's what he said. i don't think-- well, we're guessing here, but i think a reasonable idea would be that someone who helped work on the speech did that and no, i don't think that melania

trump sat down there with a pen and paper and did that, you know, this trump campaign would say somebody on the staff messed up and it was a mistake and sorry and move on. and i think that would probably be the best way to do it because, as you are saying, this is not the biggest story in the world. stuart: i'm inclined to disagree with you, byron. i do at my own personal peril, but, come on, they are out to get her and get anything on her. that's high personal opinion. >> obviously, a lot of liberal journalists are out to portray everything the trump campaign does in a negative light. no doubt about that. i was watching television this morning and fox news was reporting this and the other networks were obsessing over it for an hour, too much. stuart: we're not going to do that so we're going to move on the byron york, you're all right and come back anytime you like. >> thank you, stuart. stuart: quickly to the market. how are we going to open up, in

four minutes' time open up flat. hillary clinton under fire at the convention, the message was this, vote trump or you end up with hillary. kirsten powers on the left will react to that. the council of slammic relations known as care protesting in cleveland, handing out this, a fake cure for islamophoba, she gave that to katie hopkins and more varney after this.

stuart: we always ask this question as we run up to 9:30 what will the market do today baring in mind chaos around the world. 9:30 here's what's going on. we are down more than we expect ed actually. we thought it was going to be looking at the futures. we thought it was going to be a five or six point loss. we're down 30 in the very early. >> reducing global outlook a global growth could be playing into this a little bit. >> recession. stuart: silence on the left please. [laughter] what you're log at on the left-hand side of the screen is dow stocks are down . this is the stock to watch today. this is netflix. i'm not sure i understand that from this screen. i think that's the wrong screen. can we put up the right one? it is down $13 as we spook get

rid of that please. netflix is down $13.10 an ounce at 8564 four big problems. they didn't get as many as they subscribed a lot of competition. high cost of buying new content, and they're having great difficulty get into china. down it goes. who's here to discuss all of this? i'll tell you ashley webster liz mcdonald and start with netflix mike murphy you say buy that thing at 85 make your case. >> absolutely. netflix is a growth company so subscriber growth wasn't what market wanted to stock sells 13 on the news but they raised prices stuart and they can still pull that lever e again if they need to. people who are using netflix won't leave it but stay there so netflix can increase revenue, increase earnings per share as they have that great buying opportunity. >> buy on the dip.

>> tom, are you buying on this dip in netflix? >> i won't be accused of plagiarism, will i? i won't be, i think that as i've said all along netflix is really the blockbuster of 2016 but taken over by an apple or something like that. if somebody wants to come after them, they will get drilled. >> one guy who says don't touch it with a ten foot pole. you going to break the tie? which way you go? >> not touching it. liz and i talk about it. thing that concerns me is low switching cost you were saying their content. there's a fight for content it doesn't take much to switch to another guy who provides me compelling content as netflix can give me. >> their own content like -- >> they've got it. in the studio that's not cheap

to do. >> it's not cheap at all the but a lot of -- no one is switching from netflix you talk about competition amazon has competition but netflix is gain new subscribers. >> but the balance sheet. they have 12 billion in debt against 1.5 billion in cash. >> you can say the same thing about any biotech company out there there's teat because of the growth -- >> richly. >> evaluation off the charts. >> when you look out to number they gave us from 2017, 18 the argument is 2014 argument. a different company right now. this is a price difference. [inaudible] [laughter] check the big board, where are we now? we were down 30 odds point for the open left-hand side of the screen mostly in the red that implies that i'm trying to do the math here about 20 more than

20 of the dow 30 in the red they are down. how about the s&p 500? that is down a fraction $5 or five point i should say down, and goldman sachs better profits down 1% that's quite a drop there. you have to look inside the numbers to see what's really going on. ibm reported after the bell yesterday investors like what they saw up a buck at $1.61. yahoo! reports in walkup to earnings report they're down slightly higher profits, raised market up 70174. united health pharmacy service business dead flat at 141 i want to get back to big board. a record high despite all the of the negatives out there. this is a question we've posed to everybody on the show for the past week. why is the market so strong when all around the world you've got

chaos and confusion and anxiety. todd you answer that one. >> because the money doesn't care. people are searching to get yield on their money, and they're going to go to strongest buck they can. and right now it's the united states of america that's where -- you want to reinvest your money you come here because everything we do here is better than anywhere else in the world. j heard that a lot and by the way dow has gone positive. we were down 37 of the opening bell. >> the stocks are down. a look now, we're up three points gaining grouped 18,537. >> mike murphy. stuart, why is market going u up when all around the world you've got anxiety, chaos, con potion and terror and heaven knows what. >> but you have the global central banks not just here but global central banks that are getting floor under market because they've all said in whatever language they chose that they're going to do whatever is necessary to support their local markets. that's why there's money -- >> all of the negative yield we

have astowpgding level of soarch trading at negative yield. we have jpmorgan telling clients i'm sorry i can't take your deposit anymore because it cost them money to hold that cash. >> thanks for lending. >> so question discuss why this market is going up with chaos and confusion on left-hand side of the screen we have various group was stocks right now is financials all of them are down. but on balance, overall stock prices holding at or near record levels. i've got -- over individual stocks for you. how about lockheed marte hadden they've raised their outlook up $2 almost 1% of 258. phillip morris in the tobacco business by the way, 9 a share. big drop there. that's down almost 4%. united continental airline 47 dollarses share down a fraction that's had 1% as of today. i think they report after closing bell. disney, by the way, finding dory now highest grossing animated movie in u.s. history.

why are you laughing? i've not taken the grandchildren to see that yet. >> a great movie apparently according to -- justin -- >> this is, okay. [laughter] mattel they won a right to make toys from -- they're all laughing away. "jurassic world" films up not much, half percent. look at this one. it's a one-month charge of the gun maker smith & wesson now getting into the business of knives. you want to tell us about that? >> wonder why do they get into the knives, use is up 36 million u.s. householding own sporting knife. >> it is hunt hadding, fishing -- >> how many hunt with a knife? >>a lot of people do with fishi, cutting so unit here's what's happening -- buying smith & wesson is buying tailor brands --

like uncle henry and old-timer so -- ever seen movie crocodile dundee you know that line? >> this is a knife! [laughter] >> that was a great movie. some would be offended because we're laughing joking about knives. >> not funny. >> had a huge runup up u 30%. >> up 70% year over year. >> unbelievable. >> every time there's a call for gun control gun stocks go u up. all of the time but you wouldn't touch it now? >> i would not. it has gone from 20 to 30 not one you want to jump in. like overall market if you're watching rally don't jump many today. pullback will come inevitably. market has never -- >> to netflix. >> new father of six, you keep interrupting the poor guy. >> i'm not. what he's saying -- >> disagreeing with him. >> big nails that you know i'll start with guest, retail

operation, obviously. they've got to downgrade. nicole i'm pretty sure stock is down. does this play into the ice age story? >> to a certain extent it must. because, i mean, i personally love it. put stores fluent me if i would go inside of guess. however, they've had 22 consecutive convert was negative comparisons to buy for quarters and year quarters not good. you have one pessimistic analyst who dropped price target don to 12 from 15 to piper, average price is 18. but concerns are that the comparison going forward will be even worse. take a look at twitter another name that we follow closely, and twitter is down about 1% today that is a naked deal here making a deal in the exclusive original programming pregame to the nba game. so it will be on twitter and vine, and this goes with their -- they've done nfl, wimbledon so

why not nba too? >> thanks nicole i'm not sure i understand this. nba games a who else new way to consume content. they already have the nfl so you can go on twitter you can watch convention nfl games on twitter. >> so look they're doing all of this. why can't twitter make money? >> twitter has enough cash on hand right now to run the business for 90 years without making a penny so they don't necessarily need to make money. back to the netflix argument styles companies go -- >> when you're talking about a growth company you don't value the way you would a valley company so growth companies spend money. a lot of times great company with great returns with a huge amount of debt. debt isn't necessarily a bad thing. it's the company that is growing if it is showing to be growing. and you grow because at some point you're going to generate cash. i mean, you don't grow because you consume cash. >> netflix is growing -- [inaudible]

>> they grow here. [inaudible] i have to go but i have to finish with this. [laughter] you like netflix and you said buy it. at 85 -- our viewers are not taking your advice because it is still down $12.86. >> moving in the right direction. [laughter] stuart: let me tell ya. mike murphy, and lenore thank you very much for joining us great start to the day today. we appreciate it. back to the big board now down again up 23 points, still at 18,005. this will be bad news for "game of thrones" fans, new season of the show pushed back to next summer. a production delay. new season will only have seven episodes instead of the old ten, and the left looking to attack the republicans actor stephen baldwin not happy about that. he's a big trump supporter. he joins us from cleveland. more varney in a moment.

stuart: donald trump ears wife melania facing controversy after some say she plagiarized part of a speech from michelle obama's 2008 speech. you be the judge. watch this. >> work hard, for your life. you work hard for what you want in life. >> your work is your bond, and you do what you say. >> your word is your are bond. >> only way to your achievement is the strength of your dreams. >> the only limit to the height of your achievement is the reach of your dreams.

>> well there were similarities. judge andrew napolitano is here. [laughter] this is not the legal issue, but i want your legalistic mind to work. >> you want a l legalistic answer on a nonlegal issue. >> get on with it. [laughter] you are correct she's not sold a document -- not attempting to make money off of somebody else -- >> was that plagiarism? >> relatively common phrases odd they were used precisely the same way in a very, very similar venue by a similar person becoming first lady at the time. but such common phrases that could have been taken from almost anywhere. look, you and i read and write and speak a lot, and ideas get into our brains. we don't always know where the phrases come from. we just emote them. >> yes.

>> but so here's my view. if you like donald trump, this doesn't resonate at all if you don't like donald trump you'll phoned every excuse to attack him, his wife, his wife's speech writers. >> find it credible that that's the mainstream media. >> i don't credible but rational because mainstream media can't stand donald trump and looking for every silly little thing to jump on him. >> far more important things to talk about that happened yesterday at the convention than this. >> i'll tell you what i'm concerned about and doing this in the 11th is secret service who are moving fox from the floor of the convention that's the use of the government's power for political purposes. that's a very serious issue. and very few people are discussing it today. >> that's what you want to talk about at 11:00 this morning. >> if you're willing. stuart: media approach to melania speech is pathetic she's an immigrant.

english is not her first language, there she is looking poised and sophisticated in front of tens of millions of people. a potential first lady of the united states and all they can pick on is her frequent -- her use of three common expressions your word is your bond. do what you say you're going to do. treat people with respect. >> so if i say you your word is your bond as michelle obama -- >> or that's good. if you remember neil, british politician. > hard lefty a few phrases tt drove them, senator biden from the democratic primaries. >> that's correct. stuart: but this is not going to drive melania trump away from the convention or the election. >> i really don't think so. there are few imraints to the

united states that have a fine demand that happen to be seated next -- [inaudible] had that advantage. lenore before we go what was your impression? >> did a fantastic job. in the best i can come up with it is liken paris hilton wanting to liken that . but you have to do better if they're going to attack her for that. she was incredibly strong woman defending her husband and praising his strength. his focus. that's what she's supposed to do. >> spend more time in america instead of -- walking around europe. check big board we're down 22 points i chaos around the world but no sell you have on wall street. netflix down 13 dollars per share. weak subscriber growth. how about this? a secret document on the iran deal. leaked to the press, reveal with iran could start developing

nukes much quicker than we were told. we're on that one for you and hillary clinton big focus at the republican convention is last night. the crowd is chant hadding lock her up. you will hear that. and with us in a moment -- >> lock her up. yeah, that's right. lock her up. ♪

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the republican party because if you don't unite, you get hillary. do you think it worked? >> uh-huh. yeah, why i thinks that's going to be one of the strongest arguments for trump buzz there are republicans not behind trump

and pugh poll showing that 44, 45% are not happy with either of their choices, though, that these were of evangelical reporters who were normally be right behind the republican candidate. but, they don't like hillary clinton and so that's why they're going to back donald trump. so i think for them to drive home the fact that we may not completely love donald trump but let's remember what we don't want and we don't want hillary clinton. >> i'm sure that will be reversed next week when it will all be about how bad donald trump is. you don't want him. you want pups but you know, i know what you really want to talk about kirsten. i know you want to talk about my describing the conventional media as being pathetic in suggesting that mrs. trump was plagiarizing michelle obama. i think it was papa thetic i don't think it was at all but net picking and desperate to find something wrong with

melania trump even though it was a fine speak in english not her native tongue immigrant, with she was poised if i'm allowed to say that she was terrific last night . but the media is picking on this couple of phrases which will also use by michelle. go ahead, speak your piece. >> well, look, i think melania does seem like a lovely person and i don't see any reason to attack her but it seems to be similar to what michelle obama said and you know, i don't know why you think it's pathetic to point that out. and fact that michelle obama is -- stuart: shocked? >> coincidentallal that she would be -- >> shocked? i don't know about the best shots but similar and people point that out. look if it happened to be similar to a speech that john kerry had made then maybe not so strange but thinks they probably were reading michelle obama's

speeches in prepares a potential first lady speech, and they may have listed this and that's pretty problematic. >> but on left-hand side of the street on good morning america saying to use her own words. she -- she used her own words. >> coincidentally same words that michelle obama used. i mean, i don't think it's the end of the world even if it somehow got into her speech. they should just apologize for it. but of course we know that's never going to happen because donald trump never apologizes really for anything. >> u you've got it -- stuart: you got it in there a snip and powers i tell you what. a shame we're out of time and coming up on the break you know how it is. [laughter] thanks for being with us it is appreciated. thank you very much indeed. we'll be back in just a moment.

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>> good morning, everyone. 10:00 on the east coast, seven in california. welcome to hour two of the program. talk about media bias. melania trump makes an impressive debut, an immigrant, english not her first language, but she wows the crowd with her poise and message. and one paragraph resembles michelle obama's speech in '08, and she's a plagiarist, says the media. that's all they've got. the theme in cleveland was make prosperity, something wrong with that. the latest poll from monmouth, clinton 43, trump 40. the edge in that poll has been cut in half.

the back drop, there's everything wrong with europe. another terror attack, one of 2 million migrants that angela merkel invited into germany hacked people on a train and three treated and others in shock. no selloff on wall street, the best rally in a long time is holding, even though the news backdrop is so grim. how about that? the second hour of "varney & company" about to begin. ♪ >> it's 31 minutes in. where are we? down 17 points for the dow. most of the dow stocks are in the red this morning. netflix, that's the stock. it is down really big this morning. a $14 drop at the moment. what's the problem?

>> they've disappointed with the new subscribers, added 1.7 million, just 160,000 was in the united states. there was a monthly price increase, bummed up to $9.99 a month. the big deal with netflix is they need to have new exciting fun things to watch and they have to pay a lot of money to get that content. the they only had 1 1/2 billion on the cash balance sheet and 12 billion in debt and they have to possibly dip back in the secondary diluted stock offering. ashley: they missed their own, in april, that was a sand bag number. that was not good. stuart: that's the stock of the day, i believe. market watcher steve cortez is with us. i want to go back to the big picture for a moment. there's a sea of nervous and terror and assassinations all

over the place and yet, this market is still at 18,500 on the dow. you've got to explain this for us. >> right, no, stuart, sometimes it seems like the market is teflon, nothing sticks when it comes to bad news. part of what to connect the stock market in cleveland and washington d.c., actually it's almost problematic the market is this high and i say that, because what are american companies doing with their profits. they're not reinvesting in new workers, not investing in new plants and technology. instead they're reinvesting in their own stocks. that's worked out very well and sent the s&p to all-time highs. however, the snake can only eat its tail for so long. to make america truly work again, we have to convince companies they should be doing capital expenditures which they have not done in years. enough with the financial engineering and with the cfo driving the train. we need the ceo to drive the train.

we have work force participation is near record lows, for men it is at record lows, we need to change that. stuart: steve, i'm going to get back to that, the theme of the republican convention, make america work again, we'll get back to that in a second. i want to give the viewers more of the terror attack in germany, four injured and three seriously. a muslim refugees from afghanistan armed with an ax and a knife, he went on a slashing spree on the train. 14 other people treated for shock, by the way. ashley, what else have we got here. ashley: an interesting development, isis put out a video that shows in particular attacker, 17 years old. vowing to carry out a suicide attack prior to this incident in germany. he says it's on the video, he's shown as saying islamic state soldiers will target infidels in their homes, villages and airports. he said that he's calling on

all muslims who cannot reach the islamic state to kill, as he said, the armies in their own countries. he wields a knife in the video which he says he will use to slaughter the infidels. this was prior to the attack. stuart: he was a migrant who came. >> been in germany a year and came in with a flood of migrants, yes. stuart: a former member of the british parliament, a conservative by the way, this is why the brits, this is part of the reason why the brits said we want out of the european union? >> that's absolutely right. angela merkel invited them in. i don't know why we're calling him a refugee. he's a migrant terrorist. the british would have been stuck taking these people in if germany gave them citizenship and asylum. and if he was bet with his ax,

many more people would have died. stuart: it's the frequency of these attacks. and these, you know, i can't remember the data-- >> the attacks in paris and in brussels. there have almost been too many to list. i'm afraid there's no sign that they will slow down. and the market ignores them because terror is the new normal. we've talked about this before, it seems to me that the migrant crisis is the straw that breaks the european union's back. i don't see how you can continue like this in the current form with this kind of thing going on on a daily basis. i hate to interrupt, but that will be a long-term problem for the financial markets. if the eu breaks up, you've got a problem. we've all got a problem then. >> that's right, by the way brexit was the first. the austrians may be electing a president who may want to take austria out of the eu if the migra migrant crisis doesn't stop.

stuart: and the hungarians are having a vote, yesterday or this week? >> it's quickly falling apart liz: and germany and france have elections next year. stuart: they do indeedment i want to get back to the republican convention. tonight, it's going to be all about jobs and the economy. the theme is actually called make america work again. steve cortez, you were talking about this just a moment ago. you are a trump surrogate. you're a trump supporter, i know that. >> i am, yes. stuart: the theme tonight, economy and jobs. this would take the place of security and terror. is it going to stand out the way security and terror did last night? >> you know, maybe not quite as starkly, but i think it will resonate. national security and economic security to me, those two forces are conjoined and americans are looking for both. they want peace and prosperity. last night at the convention we talked and i think forcefully how we're going to make america

safer again. and tonight we'll talk about how we'll make america grow again. the present administration is the first administration in american history to never register a single year of 3% plus gdp growth and that's a tragedy and we cannot allow a third term effectively of the obama administration and its failed slow growth policy. i'm confident that donald trump and his surrogates and his message will resonate with the american people and the stock is at all-time highs and the wages sure aren't. and main street is languishing. stuart: part of the republican platform, as i understand it is, break up the big banks. now, that's a very big deal. lots of people are not financial specialists, but when you say break up the big banks, the opposite of dodd frank, that legislation, that's a very big deal. i think that will resonate with bernie sanders' supporters, he

wanted to break up the big bank. i think that donald trump is taking a leaf out of bernie's book. >> you know, stuart, you're right. and bernie is a socialist, he gets a lot wrong, he gets some things right and one thing he's right about is that washington in a large sense is a rigged crony capitalist system, it is and the taxpayer is still on the hook to defend big banks. and so, i think that the trump message is resonating, that some of the sanders' supporters are hearing this. i think in many ways the race, i'm a life long republicans, in many ways it's not democrats against republicans, but americans against washington. and washington is on the growth and right and not keeping us safe and i think all of that can be reversed with donald trump to go to washington, not to tinker around the edges, national security, immigration, but to blow up the washington establishment and the american people are calling for it. stuart: we hear you, steve cortez, thanks for joining us.

check the big board, we've just turned positive again. yep, the world is in turmoil, but we're running higher for the dow industrials, and protests at the convention, anti-trump and pro trump people, openly carrying guns and firearms in the streets. and also an honor killing in pakistan, a brother strainingles his sister because he said she had dishonored the family name. yes, that ax attack in germany by a teenager. angela merkel has a problem in germany, 2 million came to germany at her invitation alone.

>> monsanto rejects buyers sweetened 65 billion takeover. monsanto says that's financially inadequate. 65 billion dollars. yahoo! reported after the bell

last night, the stock is dead flat. $38 a share on yahoo!. now this, a secret document obtained by the associated press that shows under the iranian nuke deal, tehran has the ability to start developing nuclear weapons much quicker than we were told. how much quicker. ashley: well, there's a 15-year deal with iran, after ten years, if you believe they're going to stick to that timetable, after ten years, they'll start to expand their uranium enrichment program in which they can make the weapons. they're boastful of it and prideful of it, no one has seen the stuff and how did that get in there. it's like an added addendum. as part of this, they added a note in saying after ten years we'll expand our nuclear program so within that time we'll be back on track the way we were. we can quickly get back on track the way we were liz: and now the u.s. secretary-general says, wait a second.

he's criticizing what iran is now doing, violating the spirit of the deal and pointing out iran has shipped weaponry to yemen and iraq. this is a serious issue right now. ashley: it was submitted to the international atomic agency the ones over seeing that. stuart: we didn't know that. congress didn't know that. >> i think the united nations is criticizing iran because they've been slightly honest and showing it to the people when the u.n. wanted to keep it under wraps. what does president obama have to say for himself about this disgrace, he didn't level with the american people. stuart: now we found out, we've done the deal with iran, but they can start developing nuclear weapons much quicker than we thought they could and were told. >> the administration had the deal to make the world a safer place and now the u.n. is saying that's not so. stuart: i don't know what to do about this it? >> donald trump said he would

support the iran deal and it's a great opportunity for him to say, based on the iran deal, i would nix that the first day in office. stuart: and we have congressman from montana and a former navy seal. i'm sure you know about this story, the secret deal that will allow iran to get weapons quicker than we thought. >> what are we going to do about this? what would trump do about this? >> you know, it should be no surprise. we watched iran launch icbm's, it would destroy israel on the side and we've watched that administration buy heavy water and vee late the treaty. we're funding billions of dollars. yet another secret document? i'm not surprised. congress has to act, it's nam security. stuart: you're a congressman, what could congress do?

>> well, the house no doubt about put something through. i think we can get up to a veto proof majority in the hope that the senate responds. the senate-- the house passed the safe act, which is simply to suspend the refugee program until we vet. and passed out of the house, veto proof majority and languished in the senate. congress has to do our part. stuart: now, some of the things which donald trump came out with a year ago when he first deal qaeda for the-- came out for the presidency, build a wall and now are more mainstream. you're a trump supporter, are you behind build the wall and ban immigration. >> build the wall we built the panama canal in the 1900's, we can build a wall, as was pointed out. legal immigration should be

accepted. on muslims, i have an issue with that, as a military commander, i never asked the religious or political affiliation of the person beside me, that's not important to me, what's important to me, you're an american-- >> donald trump has refined that a little, instead of ban muslims, he says ban immigration from terror hot spots. terror hot spots, you don't get in here. that gets around the religious test, doesn't it? >> i think we need to vet that, same thing from refugees from wherever, syria or hot spot. we need to vet them and i would imagine the immigration issue with syria, these people need to be vetted to make sure they're here for the right reasons and not here to do us harm. when isis openfully pro claims they're going to intill trait refugees and others in europe,

it it's a threat. stuart: timely appearance with the iran news breaking. we appreciate it very much indeed. thank you. >> my pleasure. stuart: okay, up next, the left promising to disrupt the convention in cleveland. we'll take you there. and that migrant crisis in europe gets worse. another terror attack, this time it's an afghan teen using an ax to hack up people on a train. this is not going away. angela merkel's got to deal with the problem she created. you do all this research on a perfect car,

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for a free quote today. liberty stands with you™. liberty mutual insurance. >> well, this is a fascinating development from cleveland, the convention. some anti-trump protests have been canceled. jeff flock is in cleveland and jeff, i want to know why they canceled.

>> one protester told me with the republicans fighting amongst themselves and with melania trump reading michelle obama reading the speech, they're going to let them wreck their own convention. speakers are to be here and who is here, nobody. there was a march set for this afternoon and it has been canceled. stuart: hold on, hold on, wait a second. >> tuesday and-- >> did they have enough protesters in the first place to mount a significant protest? or are they saying not enough people are showing up, so they would cancel anyway. >> they had a thousand yesterday which would make a decent market. one protester told me you don't want to get arrested on tuesday when you've got three more days. thursday is the day i'd watch for. stuart: you've got a comment on

what's going on with the cancellation. >> absolutely. there's an old political saying, you never interrupt your enemy if they make a mistake. maybe it wasn't a mistake, maybe it's a clever piece of positioning. and maybe they stick it in there and they compare melania and michelle obama as rival first ladies. stuart: you think that the trump people deliberately put that in. >> absolutely. it is the age of the internet. there's no way that a professional politicidn't know this paragraph wouldn't be connected to the former first lady's. stuart: so you think that the trump people wanted michelle obama in the news today to compare. >> very house of cards. it's very house of cards. >> that's right, that's right. who is the more attractive first lady, the trump campaign is saying?

it's a whistle, melania versus michelle. stuart: that's a conspiracy. >> that's a fight they want to have. stuart: the british house of parliament. >> i have enough, i recognize when i see one. stuart: i want to check it, where are we now? for the umpteenth day in a row, we're up 18,548. i repeat, no big selloff. all right. and a so-called honor killing in pakistan, we're talking about this. we'll have more on this. a brother strainingles his sister because he says she appeared on the internet and shamed the family. >> an honor killing? this is the exact opposite of honor, to dishonor your family, to kill your family. this is not a senseless act. why do i say this? because there's sense to it within the jihadi ideology.

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stuart: this is london, john kerry, secretary of state walking to 10 downing st.. he wants to walk inside, approaches the door, waves to the crowd, waits for it and gets in the door. the door is open, waves again. oh man. tough moment. lewis men's, former member of parliament. a minor -- one more time. >> here we go. stuart: that is the last time we are going to show you.

that could hurt. stock alert, that is what we are talking about, 14 points hire, we turn negative, look at the health insurers. there are reports regulators may block the end some/cigna merger and the aetna/humana merger, that is why they are down big time. a shocking story, pakistani model, an internet star, strangled to death in her sleep by her brother. it is being called an honor killing, she appeared on the internet, not fully clothed, killed by her brother. this is another disaster for the image of muslims, the image of islam worldwide, a disaster and you know it. >> beyond the image, this is another time we should pay attention as muslims to the

horrific treatment of women among muslim minority -- majority culture than she was the kim kardashian of pakistan but was much more than that, she was a courageous women who -- she actually went and took pictures, exposed that. she pushed the button of the patriarchal misogynistic neanderthal community in which women don't have bodily rights, they are abused, tortured and killed a few days after this picture and her brother drugged her, strangulated her and the fact that -- when are muslims going to wake up and stop caring about the image, all the other nonsense, there were 1000 women

killed in honor killings in pakistan. stuart: there were 1000 in pakistan similar to what we put on screen, 1000? >> a pandemic, a well-known star, hundreds of thousands of followers, 1 million on facebook, she was courageous, trying to expose the underbelly of the medieval nature of the patriarchal culture and what they get for thousands of killings is the suppression of millions of voices, where are the moderate voices of reform, reform movements put together honor diaries, and muslim wisdom, put together and talked about many women over the last decades that have been ignored and to stop ignoring this, and the islamic law, to abuse and destroy the freedom of women all over the world. stuart: you are a voice in the wilderness, very brave voice coming out publicly to say what

you say. >> thank you for covering. stuart: several people, four injured, three seriously, afghan refugee, inspired by isis, armed with an ax and a knife going on a slashing spree on a train in germany, eventually shot dead by police. joining us from cleveland, katie hopkins. you just heard the story about the afghan refugee migrants, injured people with an ax. angela merkel invited 2 million migrants into her country. did ask any other european leaders about it? just invited 2 million in. surely angela merkel, politically is finished.

's and she? >> you would think. certainly unaccompanied minors or ask murderers as i am calling them, 100,000 of them have come into europe in 2015 alone. you would think this would be the end of angela merkel but not at all. some people in coming out saying why did we shoot the ask guy? why didn't we just enter him? certainly the mood in europe is a sense of frustration of our reaction to terror. that truck in nice, we get a hashtag, a kind of thing in a public square, and pray for niece, pray for germany, and stand united, shoulder to shoulder, and we do nothing, we got reports of a mother with three daughters stabbed in france because they were

scantily clad by a man named mohammed. we are out of control in europe. stuart: what you are suggesting is europe is close to real civil strife. you say you are sick of these terror incidents and thick of our muted response to them. it is dangerous stuff. you get a serious response, reaction to local muslim populations and talking serious civil strife. are we on the verge of that in europe? >> we are on the verge of civil war in europe, and by the back end of 2016, the front end of 2017, we will see civil war in europe and what we notice in cleveland, being in a secure area is the strength of your resistance to people challenging and attacking and bringing terrorists to your country, we don't have that in europe, we are opening our arms and

embracing them. when a guy attacks people with an ask on a train, why did we not just shoot them in the leg? europe is absolutely pathetic on this issue. stuart: in america we have a very soft reaction to the terror incidents here not on the part of the people themselves but on the part of the authorities, we can't call it islamic terror, not allowed to say going to keep some muslims out. on the part of authorities we have a soft response to terrorism and muslims and you know what? i don't want to see civil strife in this country. i don't want to see that, nobody does. >> you don't want civil strife, nobody wants civil strife but the difference in america is you don't need to create a climate of fear because we are ready have one. we have project fear. in america people get it and trump stands for everything that isn't about fear. i went to one of the protest

rallies yesterday for islamphobia. i wanted to face up to the people i talk about and people that have islamohphobia. i don't have that, i have a rational fear of a religion that inspires hate and i will stand up and say i am islamohphobic because it is a rational fear. stuart: always getting straight to the point and that was straight to the point. we appreciate it. used to live in britain, that was strong stuff, civil war is what katie said. >> i don't think we will see civil war but you will see enormous civil strife, kicked out over this issue, french prime minister manual was whoed at a memorial because must learn to live with terror and --

>> there are 27 honor killings a year according to the department of justice in america. >> according to the reporter year. stuart: that is a shock. a federal watchdog report accuses housing secretary julian castro, reportedly on hillary clinton's vice presidential short list, violating federal law. express support for hillary clinton in an interview was a big no no? >> the report comes from the office of special counsel saying he crossed a line during an april 4th interview with yahoo news, only supposed to talk about his job, only supposed to talk about advancing the internet for children. he touted hillary clinton as the most experienced candidate. stuart: i don't think that is a

huge deal. liz: the administration says he cannot speak as a democrat in the national convention even though he is a vice presidential contender reportedly. stuart: some trouble in that particular area. let's go back to your money. netflix got of the day still way down, down $13 a share. what is the story behind all this? >> it had its weakest subscriber growth in three years, came in at 1.7 million subscribers in the second quarter, fewer than forecast, $2.5 million and what happened is they had unexpectedly some cancellations because they were raising prices and that hurt and caused a sharp slowdown, people are not getting into netflix as much. some analysts think it is a long-term by but it is the number one loser, the s&p 500 selling off 14%. stuart: i am going to break into

you, details on the latest incident. ashley: a woman in three daughters aged between 8 and 11 attacked by a knife wielding suspect that a holiday park in southern france, taken to the hospital and one of them in critical condition. the most -- very vague but they were, quote, lightly dressed or too lightly dressed and that could have been behind the attack. stuart: another may be. we won't jump to conclusions but if someone is scantily clad, women, attacked and knifed, i assume that was done by an islamicist who does not approve of the dress code. ashley: we will continue to follow it. stuart: highlights from what we call the donald trump show in cleveland. watch this. ♪

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stuart: remember. "varney and company" start at 9:00 am eastern. byron york on rudy giuliani's speech last night. >> rudy was really fired up. this was his sort of night. the theme was make america safe

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>> we need leaders to lead by example, show the american public, should be family. treated accordingly. >> if hillary clinton can't give us the truth, white not give her the presidency? >> i would like to make something very clear. blue lives matter in america. >> thank you to every police officer and law enforcement agent who is out tonight protecting us, black, white, latino, of every race, color,

creed, sexual orientation, they don't ask if you are black or white, they just come to save you. stuart: this is called making an entrance. that was quite the entrance. donald trump's first celebrity supporter, stephen baldwin. welcome to the program. you were the first celebrity, what did you see early on that inspired you? >> had an opportunity to

interview my buddy, don lemon, the week before the first republican debate, don called me and said if i say i like mister trump it is an endorsement, we will have some fun so i got on there and he said do you like mister trump? i said i love mister trump. you think a good president? no. i think he would make a great president because he is not a politician and that is what we see this surge of voters gathering around in support of him, he is telling it like it is, he is not perfect but he is real and honest and what america is looking for. stuart: you are not interested in the republican establishment, the old guys. you want somebody new outside the realm of conventional politics and that is why you are going for trump. part of your support for donald trump, you don't want hillary clinton. that is the seam of the convention, trump is trying to unite the party around

opposition to hillary. >> that is not the only reason although that is a pretty important reason. i think mister trump is a very smart man, cannot achieve the level of success he has without being smart and surrounding yourself with people who can support that, he would do the very same thing, i have fun debating people, mister trump's this or that made a couple billion bucks. stuart: do you debate your brother alec? >> not alec but somewhere around here today, got a little scoop producing my first feature film. i was in los angeles, came in for this to support mister trump, my brother william and

his wife were doing a cameo, i flew in to be as quick as i could and my brother billy is voicing his opinion about all of these things. i am in here for trump. he is out there and wish him all the best. stuart: why are you different politically from your brothers? >> i just turned 50 this year. i think a little credit to the good lord above, i am the youngest baldwin brother but married the longest so to answer your question i would have to say i may not be the smartest but i may be the one with the most common sense. stuart: stephen baldwin, i know you are busy but you pack the senate you appreciate that.

thanks. it is one of the bigger questions of the week. can donald trump unify the republican party? the theme tonight is make america work again, the economy is going to be in focus all day today and in cleveland. president obama asked the supreme court for a do over on his immigration plan. what is at stake? the status of 4 million immigrants that are already here illegally. ♪

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stuart: mark, one of the survivors of the benghazi attack, member of the security team at the cia annex. >> to protect her people on the ground, had she done her job that night, had she done her job that night we wouldn't have had to compromise the annex. sean, ambassador stevens, would be alive today. stuart: mark is co-author of 13 hours, the inside account of what really happened in benghazi, it was made into a movie. what did hillary clinton not do that she should have done that would have helped you in

benghazi? >> it have answered the email to end the request for security, they are at the consulate. the consulate was eight acres guarded by 5 diplomatic security officers and anybody who has ever been around anything to do with security, completely inadequate. a lot boils down to the ideology of how they address her foreign policy to libya from the beginning. stuart: do you directly blame hillary clinton for what happened in benghazi. >> if you are in charge you can delegate your authority but can't delegate responsibility. if you choose to take that position as she is elected president, to take responsibility for -- no problem

taking responsibility for the things that go right but as a good leader you have to take responsibility for errors as well as home runs. stuart: see you again real soon. ashley: debbie wasserman schultz defending hillary clinton, says hillary cooperated with the fbi investigation. if you don't agree, that is a difference of opinion. president obama defeated in courts, but the president wants a do over, pushing for amnesty for 4 million illegal immigrants, more varney three minutes away.

stuart: i will guarantee the audience was huge. the media found some similarities in one paragraph to

a speech by michelle obama eight years ago. he is a plagiarist. you have to shake your head a little at that there is a contrast, day 2 of an innovative entertaining convention in cleveland. a new poll from monmouth university, 40 to 40, a 7 point lead. the market going their own way. and actually up again. the world over, and our 3 of "varney and company" but about to begin. ♪

stuart: why we start the third hour with a positive, the dow industrial average up 7 points, the s&p 500 pretty much flat. it is down 3 points. the nasdaq down, way above 5000. stock of the day, netflix, week subscriber growth pulling it way down somewhat at 13%. yahoo reported after the bill last night, lost some money, so what, at 38 at $38 a share up $.32 this morning, johnson & johnson, the company raised its outlook, investors liked that one, $1.67, at 124, lockheed martin did the same thing, raised its outlook, it is up $6, 2.5% to 63, phillip morris still a tobacco company, down $3,

lower sales for tobacco. despite the global anxiety markets shrugging everything off. former goldman sachs partner peter again and ashley webster and elizabeth mcdonald, i am asking everybody the same question, the world is in turmoil, nervousness, anxiety, and the dow goes up 5 consecutive records. >> they like what with the have got and it is more a market of stocks in the stock market. if you disappoint you get crushed. if you have good forward-looking momentum you get invested and that will be popular. a combination that is driving the market up. stuart: what about the big banks around the world we are told are pumping money into the system like there is no tomorrow? >> it left the investor with no alternative, negative numbers, 10 trillion examples i can think of you have to look at where there is growth.

the outlook is so important. how people do in the second quarter is interesting. how they do in the third and fourth quarter crucial. that is what you should be looking at. stuart: would you say people fresh to the market who have money to invest put money into stocks, 18,547 on the dow? >> you have to look at places with special stories that can carry on no matter what happens in the environment. there are many companies that go through thick and thin. they are good for banking for the long-term. >> netflix, if you negatives, it is falling out of bed today, 13, 14 percentage points. we had a buyer and a seller earlier on the program. mike murphy said to buy that, it is a bargain you don't touch it with a 10 foot pole. what does peter kinnon say? >> if you look what they did in

the last quarter, they missed their own targets with more telling to me as they narrowed the vision of the next quarter as well. fewer than the street forecast for the coming three months. the way to look at the supervolatile stock, if you look at all the volatility characteristics they are all there.

and like okay thank you they have to borrow more to weaken the stock price. they are not at 2014 levels. stuart: i can't read a balance sheet but an accounting friend told me they have, netflix has $12 billion worth of content they only pay for when they use it. that is a liability. liz: the quality of that content whether that content will drop in new subscribers. phil: it has been there just about all morning. stuart: i wouldn't touch it with a 10 foot pole camp seems to be winning at this point. let's get to politics, at the convention, make america work again. the gop economic platform, break up the big banks, that is on the platform, that is radical stuff. >> it is word for word from the speech elizabeth warren gave, i

think they plagiarized. stuart: if you look at it. >> elizabeth moran and bernie sanders are for bringing back glass-steagall. hillary clinton in the debates was not for it. we will see what it turned out to be. stuart: a radical idea to break up the big banks from a republican. i am surprised at that. >> if you look at the ones that burned up, fannie and freddie for the acquisition of countrywide by bank of america, none of those, bear stearns, none of those had anything to do with glass-steagall, bringing back in 80-year-old act for something that may have worked after the 1933 era, won't work, technology has moved. stuart: taking commercial banks, not allowing them to get involved in the investment banking business, is that part of this? >> people have this wonderful notion that lending money is not risky.

the notion that taking deposit and lending money is not risky that is where a lot of risk -- liz: this appeal to voters. stuart: what is wrong with putting a bank's trading activities on that side of the ledger and if i want to invest in high risk i can invest in high risk but on the other side of the coin a bank takes deposits from individuals and make home loans and other small business loans and you can invest in that with less risk. what is wrong with that? >> people using fdic protected money in a risky business. however you are condemning that residual bank to death. all the technology moved to trading so if you look at a bank lending floor it look like a trading floor today. stuart: it could move online to deposit banking. >> the extraordinary thing is the deposittaking is the easy part, lending of money is the tough part. if you look how that has moved

in the last 10 years, much new investment banking business. stuart: this is the first, we don't normally get into confidence breaking up the big banks and depositing them. what they are going to do. and -- yes he did breaking pretty quickly. he did call you. that was quite a thing to hear out. a piece of the tv that your do you think it works. yes is right -- the donald trump once to unify the republican

party but i didn't see a great deal of unity yesterday in that convention. did you? >> yes. i am here and there is unity in the party. i'm talking to the delegates. i am in the arena. we are unifying the party every minute of every day, only on day 2. and -- >> enthusiastic unity. there is a pro forma, and and it is not at the moment. >> i'm an enthusiastic person. i would never lie to you. the reality is people are so emotionally invested in their

candidate and mister trump defeated them not easily but terribly. they are no longer in the game. there is that emotion. it is like a breakup, a divorce, i am over you. they don't have a choice, their choice is donald j trump will make america great again, safe again and rich again, a proven liar, don't need to get into that. it is very simple. >> and is that as gripping a theme. and the security aspect of anti-terror feeling last night. >> absolutely. who better than mister trump and governor pens than talk about growing the economy, making us

richer, the american people have been in this rigged system where nobody cares about us, we will put america first and people first. we will put more money in your pocket. i could not be -- i was so excited about last night. we have tiffany, donald junior up there speaking, growing the economy, talking about working and who better than donald trump's children. i know his children, his children worked for everything they have got. some say seriously, they are trump kids, i know them and they worked superhard and they know the value of donald trump. stuart: i will be watching with 30 million other people. thanks very much, we will be there. breaking news happening right now. john kerry meeting with newly appointed british foreign secretary boris johnson, that is boris in london, holding a news

conference. the obama administration is now rooting for britain after its exit vote. how times change. back of the queue. president obama said the brits will get to the back of the queue if you leave the european union. liz: fiat decides trade deals. stuart: no impact on the market whatsoever. that was as flat as you can get because we are down point. 15 dow stocks down, 20 down and 10 up. look at facebook. last night's convention, 8.5 million people in america generated 28.6 million likes, post, comments and shares related to the republican convention, a lot of people

talking about the gop. day 2 of the republican convention, protesters out in force, we are taking you to them live, another horrific attack in europe, 17-year-old migrants on a rampage in germany attacking people with an ax and a

♪

. stuart: the software maker which works in the cloud called vm software, they've made a lot more money, better profits, and the stock is up 9%. now this. secret documents reveal that iran could build a nuclear weapon much sooner than anyone expected and much sooner under the terms of the iran nuke deal. fox news terrorism analyst is a foreign policy adviser to donald trump. this news came out yesterday, mid-afternoon. we're realing from it. would donald trump be able to tear up the iran nuclear agreement. key do that? >> are we surprised, first of

all, that this is happening? no. we have discussed it many times many months we have discussed it with you on the show. what to do about it about it, we have a signed document from the government. the trump administration could ask them to change course, if we don't, we could send it to congress, take action at the end of it i don't see good news out of this. the iran leadership has fooled the u.s. administration. stuart: so you want to get out of the agreement whether you tear it up or go a different way around it in some way but that agreement will not fly in a trump administration, can we say that? >> you know, the evidence -- we need to wait until february. the intention of the iranian regime with that document is to continue to expand to get to the nuclear iran, to basically get the missiles, to continue their adventures in iraq and syria and lebanon and against our partners. so it's clear they don't want

to amend this agreement. how to get out of it, we have to have a different course than the obama clinton course that has been not successful so far. stuart: i want to move on to a couple of terror incidents in europe. first off in germany, a teenage afghan migrant attacked passengers on a train with a knife and axe four injured, three seriously. we also have news coming in from france. what you're seeing there is germany, the german train attack. other news from france, a woman and her three daughters stabbed by a moroccoian boardman and they were two scantedly dressed. these are two highly personal terror attacks on individuals in europe coming back-to-back. what's europe going to do about this? >> first of all, stuart, forget about what this jihadist is saying because in every case they say, well, this was a divorce, this was a job and this was because of the way women are dressing in the west, which is not their business, by the way.

this is all about one ideology. there is a thought, a network which in europe across the atlantic around the world is pushing these individuals to become part of an army, a jihadi army. now, they use different weapons, knives, explosives, machine guns, that's i different story. but we are dealing with a international network of jihadist and as long as we have isis for iraq and libya as long as we have not deannounced the ideology, this is unfortunate and continuing become a daily happening. . stuart: now, you're a foreign policy adviser for mr. trump. can you summarize, put it in a nutshell, what would his policy be towards the migrant crisis in europe and these frequent attacks by individuals in europe on westerners? >> first the bad news is between now and when he's going to be elected, and he's going to be in the white house many months, many things would happen. this is an urban jihadism that is involving, the worst is yet to come. but there are three things that needs to be done.

defeating isis in the region. no doubt about that has to be done with coalitions, with all the means necessary. second, we need to have joined western strategy. that's why he want with nato. hey, guys, you need to put some resources against the jihadist. trump administration led an ideology and then work with those who work with us and then isolate this who are radicals. stuart: all right. i'm short of time today but we thank you very much for joining us. it's always a big day in the news business. it's always a big deal. shake your head on this one. thank you very much. we appreciate it. check the big board, dead flat. dead flat with all the stuff going on in the world, we are dead flat at record high levels. 18,533. back to netflix, still the big loser of the day. $13 down, 13% down. now, remember when the supreme court shut down president obama's plan? to let 4 million illegals stay

here illegally? well, the administration wants a do over. judge napolitano on that in a mt ♪ music

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have been reported in ancor, the capitol of turkey. peter, turkey's in bad shape. this makes it worse. >> this definitely makes it worse. since sunday, they have literally purged 20,000 people. we're talking about 6,000 people from the army. 9,000 police, 3,000 judges, he's purged a third of his admirals and generals. this is either the great cleansing to get rid of all opposition or something far worse than he's letting on. stuart: we just heard a residential building is on fire. this is in turkey i believe, the fire is under control but nonetheless a residential building. you believe that turkey's on the verge of becoming like iran when i told took over in '79. >> this is the same sort of moment, he has a chance to either unite his country or to get rid of secular turkey as we know it and turn it into an islamist state. that appears to be the direction he's going in. stuart: that's a disaster for the world. >> very complicated because he -- it's a prickly ally that

we need in order to fight isis. we have a base in southern turkey that is crucial to whatever we're doing in syria and iraq. we need to have some sort of rapport with this guy or he's going to be very difficult to deal with. stuart: now, i'm going to go straight to the cleveland convention right outside the convention hall jeff flock is there. i think he's surrounded by a group of extreme radicals. what have you got, jeff? >> i think it is a great country, stuart, it can be said that the revolutionary communist party can come and be heard just outside the republican convention. there you see -- the founding member of the revolutionary communist party here in the u.s. they do advocate revolution. in fact, they were just chanting revolution, nothing less. you know, there are two i think fair to say two strains of opposition to donald trump. one is a mainstream that's pro hillary clinton opposition and

then there are these folks who are advocating a revolution in this country thank nothing less is acceptable. they're both having their voices heard out here as well as well as some trump supporters off to the other side. it's a fun day at the republican national conventio c. stuart: and i think i saw cornell west over there on the side there. >> cornell west is here. in fact, hey, yeah, go ahead and show stuart cornell. stuart: there you have it. revolutional communist party demonstrating in the freedom of america. all right. we'll have more varney for you after this

. stuart: quick stock news for you, monsanto rejects buyers 65 billion-dollar take over offer. it says it's financially inadequate. mon is an tow goes up on that. the stock is up 1.5% at 38. next case, the department of justice has asked the supreme court to please review the executive order case that was shot down by i think the supreme court. it was the supreme court right, judge stuart: so the supreme court wants a redo come back and come up with a different decision. what's that all about? >> well, it's a second bite of the apple but the only basis

for a redo as you call it, which is nearly unheard of from the supreme court but permitted in the rules is that the supreme court makes a fundamental blunder like two plus two equals 22. there's no opinion in this case. there's no blunder. it was a one-line statement. an equally divided court affirms the decision below. so there's no basis for claiming there was an error and there's no basis for the redo. if a private litigant had done this, the litigant would be fined for filing a piece of frivolous litigation. but because the justice department has -- the government's not going to define itself. stuart: it's not going to go anywhere, is it? >> not going anywhere and completely silly, i don't know where the president would do it. stuart: it's not silly. it's the way the democrats say we wanted to make good on these four or five million illegals. it's the supreme court that wouldn't let us do it we're pressing hard. we want to help you guys. >> you're right. i take that back that it's silly. it gives them a political argument next week at their convention in philadelphia.

now, legally, it's frivolous. stuart: you're all bent out of shape -- >> i'm bent out of shape on of a lot of things. stuart: i know that. the secret service yesterday on the floor of the convention manhandled some reporters and stopped them getting to mike lee, who was protesting the rules of the convention. now, you say that the secret service has no right to do that? >> absolutely not. the secret service's job is to protect donald trump and mike pence. that is their only legal charge. they cannot get involved in politics. so if the campaign says get the press off the floor, the secret service should say that's not our job. unless the press is a threat to trump and pence. stuart: so who told the secret service stop those guys? >> it's a great question and i don't know the answer but the effect of what the secret service did was to protect carl cameron and chad and our other colleagues on the floor from putting microphones and

cameras in the face of senator lee and former virginia attorney general saying what are you going to do now? they won't recognize you. they won't even let you speak from the floor, and they won't give you your roll call vote. they stifled speech and debate and that's unconstitutional. stuart: you're building up. >> now, are you as bent out of shape as i am? . stuart: no. >> british tradition, it's still in your veins. stuart: there's other things that are annoying this morning. >> i know what you're annoyed about. loss of money. stuart: i haven't lost any money today. i'm doing okay. are we done? >> yes. stuart: i think so. it's your show. you have to tell me. stuart: we're done. and the dow is up three points. you see that number on your screen? not -- i'm talking to our viewers, judge. stay out of this. 67,186, that's how many coal

mining jobs have been lost in five years in the obama administration, and hillary clinton made it clear she'll continue that policy. roll tape. >> i'm the only candidate which has a policy about how to bring economic opportunity using clean renewable energy as the key in the coal country because we're going to put a lot of coal miners and coal companies out of business. stuart: that was a mistake, i do suspect. now, donald trump has vowed he'll help bring those coal mining jobs back to america. roll that tape. >> see, i'm going to put the miners back to work, and she said i'm going to put the miners and the mines out of business. and then she comes over, and she tried to explain her statement. that's a tough one to explain, wouldn't you say? . stuart: okay. senator shelly moore, west virginia republican is with us now. your state lost a lot of those jobs, and you'll be speaking tonight at the convention.

but i have to ask you, how would donald trump actually bring coal mining jobs back to america? can you be specific and tulsa how he would do it? >> well, i think, first of all, with less specificity we have to realize that donald trump is listening. west virginiaians feel that he understands, he's been a job creator, grown his businesses, so i feel he has a lot of credibility in that we west virginiaans feel that way. you have to look at the regulatory environment that the obama administration has created and secretary clinton said she will continue. those are executive orders without congressional approval and lifting that regulatory burden will put miners back to work, absolutely. stuart: who's going to buy the coal that they mine? i'm not being pejorative here, i'm not trying to oppose you. i just think that the claim will bring back those coal mining jobs. it's really tough to get your arms around because i think that will be extremely difficult. you would have to change the

rules at the epa, and you would have to find a market for the coal which the coal miners actually dig out of the ground. that's not easy. >> you know what? a revived economy is going to create those jobs because there's going to be a greater need for cheaper, more affordable, more accessible energy and coal provides that. i do believe that moving forward on research and development is the key to the future longevity of coal, absolutely. i've supported that in the senate, and i think donald trump would be supportive of that as well. but, you know, to get the economic engines moving where there's confidence, where there's manufacturing, small manufacturing, more demand is going to create and keep those coal miners back to work and take them back to work. will it go back to where it was? no, it can't go back to where it was, but certainly we need to reach a stable point and let's quit putting regulations onto our companies and our workers that really do cause them to lose their job. and that's absolutely what has happened where i live. and i see it every day.

stuart: it's a central theme today at the convention is make it -- putting america back to work. making america work again. if it's growth and prosperity, is the centerpiece of that economic plan cutting taxes? i've got -- i wonder if you do too. >> well, absolutely. i mean i do think that cutting taxes is critical to unleashing the american economic might. absolutely. but predictability is one of the things that we've been missing for eight years. we see the president come forward with regulatory and executive orders that throw small businesses and large businesses off, creating that uncertainty. we have the lowest workforce participation in the history of our country for decades and there's a reason for that. . stuart: okay. shelly moore, thank you approach joining us. we'll be watching tonight. >> thank you. stuart: get some tax cuts for us. thank you very much. >> looking forward to it. thanks. stuart: see, that's what i want, judge.

tax cuts. >> yes. i'm glad that senator is in agreement with you. stuart: and peter, don't disappoint me. we need tax cuts, don't we? >> yes, we do. and they're coming. stuart: ashley webster don't put your face in the computer. >> well, i was just looking at turkey, there's a residential fire in ancor right now. that just shows you. stuart: the alert is off. ashley: the alert is off according to turkish authorities, it was a residential fire where people saw smoke coming up and they thought the worst. stuart: we do need a tax cut, don't we? liz: absolutely. stuart: check the big board, 18 -- ashley: free speech. >> no. secret service here. [laughter] . stuart: you think they would be on my side? >> no. taxes pay their salary. stuart: so, no, government worker wants tax cuts? >> well, they pay the same rates as everybody else i

guess. . stuart: you're on dangerous ground, and you know it. what have we done? the dow, the s&p 500 market down a merely four points. down .2%. now this. a pakistani internet celebrity that lady right there strained to death by her own brother. he says she dishonored the family name. she was an internet star, so he strangled her

>> i'm nicole petallides with your fox business brief. well, the dow's not too far off the change line, down just three points, has a chance to make it eight days in a row of gains, it would be the longest winning streak since as early as 2013. right now the dow down four, s&p 500 down four, downgrade concerns about michael kors overly optimistic concern, still reeling from the pr issue switched out of lesser value by some of the employees. watching anyone tinned owe versus sony and some of us are concerned about the issues and the country and the globe, we are seeing gamers enjoy nintendo pokémon and look at that. that market cap also surpassing that of sony. we even apparently take a look at this full screen here on the floor of the new york stock exchange. but, again, let's keep our focus global.

. stuart: dnc chair debbie wasserman schultz on mornings with maria today defending hillary. she says hillary did not lie to congress about her e-mails. listen to this. >> did she lie to their face? >> she did not lie to congress. she released 55,000 pages of e-mails and has been utterly transparent. >> comey says she didn't release them all. >> well, there's certainly a difference of opinion and that certainly doesn't lead to the clearing as you just did that

there was a pattern of factual inaccuracies. stuart: well, maria did put some pressure on there. what do you say? did she lie to congress? >> anyone who watched the tray gowdy interaction with director comey time after time after time, the question was that's not what it turned out. that was not the truth, that's not what happened. i leave that -- the facts speak for themselves. it's an orgy of evidence. she was not as transparent as ms. wasserman schultz would have us all believe. stuart: well, this week at the republican convention, hillary is clearly not the target so much as the person that you've got to beat because we don't want hillary as the president. that's the overriding theme at the convention. ashley: of course. stuart: has to be. ashley: of course to be. stuart: and next week will be you don't want trump. liz: the poll shows that the gap is shrinking. stuart: yeah. liz: between trump and hill. and, in fact, trump is leading with independence in that pol p. stuart: the latest poll that you're talking about, is 43-40

hillary over trump, a three-point gap but in june a seven-point gap. so that's what you're talking about. closing that gap. liz: two things hillary does lead in the swing states. however, trump leads with independence. stuart: if you look over all the polls, no matter which one, you put them all together, and you will see trump is actually catching hillary clinton over the past few weeks. >> the only thing i would say is he has had a double bump. first of all, the e-mail scandal did not go well for her, followed by the convention, there are a couple of things. and mike pence. there are a whole bunch of things that have given him momentum. let's see how he is. stuart: but he didn't put his foot in it, did he? he didn't go about a tangent about the judge in his trump university case. he didn't do anything about that. liz: man ford got on him for that. mike pence hasn't added to the polls at all. he has to keep moving above 4 4. stuart: now, i regret to do this to some degree, but i think everybody should know about this.

i'm going to go back to the shocking story the pakistani model and singer killed by her own brother described as an honor killing. the brother said that lady had brought shame and dishonor to the family because she appeared not fully clothed on the internet. saba is with us, republican coalition president. good to have you on the air with us again. what's your thoughts on this horrific story? >> it's absolutely horrifying to hear about this tragedy. i was glad to hear that he was arrested and will be charged with murder. the concept of honor killing is completely forbidden in this when islam came in the 6th century, arabs used to bury their daughters alive. it came to stop such barbaric practices and therefore any sort of -- stuart: but islam, it just makes islam look terrible, doesn't it?

and i don't mean that in a pejorative fashion but, look. people hear this kind of story and there are 1,000 honor killings in pakistan in one year last year. you hear these kinds of stories, it's a disaster for islam. it is. it's a disaster. >> it is. but these are cultural practices. we are trying our best -- women's rights, human rights are very important. sadly these are cultural practices and parts of the world where there's patriarchy and patriarchal culture, which condemns, you know, women's -- and i'm from pakistan originally as well. i know the concept of honor killing very well. there is that honor of the woman, which should be protected by the brothers and the father, and i hope he's not, like, let go of forgive inby the family because islam has that concept of forgiveness by the killer and i hope he will be prosecuted to the full extent of the law stuart: now, you run -- it's

the muslim republican coalition. >> republican muslim coalitio c. stuart: republican muslim coalition. i've got it. are you going to vote for trump? >> yes. i'm here at the convention, i'm really excite e. stuart: but the last time you were on the show, you said you've got serious trouble with donald trump because he proposed a ban, temporary ban on muslims. now he's refined that to a temporary ban on people coming to america from terror hot spots. is that enough for you to reverse, and you now support trump? >> well, i support trump. i know what he was suggesting a muslim ban is unconstitutional and illegal. i know it will never be enacted. i'm more interested in his economic policies, his business background, and how he will help america turn around. i want to see strong national security and defense, and i think he is the right scanty for republicans this election year. stuart: okay. thanks for coming back on the show sabah ahmed. >> thank you for having me. stuart: any comment?

>> this darkest thing is what they call honor killing.it's ab. it's the opposite. liz: it's a tragedy. it's an outrage. stuart: it is a flat out outrage. check the markets, please. down a little bit more. not much. 20 points lower. the dow isal 18,513. let's go to london. i'll take you there. earlier this morning, secretary john kerry is walking up toward 10 downing street, the official residence of the prime minister of britain. he walks up the door, acknowledges the media, walking up to the door which at this moment in time is open. he stands, he waves again, he turns, wait for it. a bump on the head. not a diplomatic incident, but we'll be back. ♪

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your attitude. >> i have no attitude other than -- >> no. no. no. stuart: as we said, megan set him straight. now, we reported earlier smoke and explosions an anchor of capitol turkey turns out to be what? ashley: a residential building that was caught on fire, smoke was seen from many miles around, stu, and it caused the situation as it is fears that something else was happening, turns out to be a residential fire. stuart: now, early we were talking about turkey and you said not something inflammatory but explosive. turkey reminds you today of iran in 1979. that is a very dangerous situation. >> it is and as they let go of the secular government and move toward a religious government, there's lots to worry about. now, literally in matter of days, over 20,000 people have been arrested and purged. you don't get to make that list up overnight. that list had to exist in part already. and so the problem is how do we as people who need to have that ally right on the brink of syria, how do we engage

with them? . stuart: i believe there are three million migrants in turkey. >> that's their trump card. stuart: if he opens the door to europe, that's 3 million -- if he kicks them out, they go to europe. >> i'll give you one more thing to be concerned about. at our base in the southwest part of turkey, which is our broadcast point and our taking off point for syria, we have ballistic and nuclear weapons there. stuart: we do? >> america does. we need that base, we need to protect that base. this is a crucial ally. this is not a trivial matter. watching what's going on in turkey is going to be very key to what happens in the middle east. . stuart: well, that move the markets? i know that's a highly speculative question but nothing else seems to move this market. >> we were talking earlier about venezuela. what kind of -- it's like punching the elephant. something may cause the there was not lift its leg but

neither turkey nor venezuela nor brazil, either of those seem to be moving the market much. the chaos and volatility should be higher than the volatility index in the market now. stuart: he wants to bring back the death penalty. ashley: he does. he says that's up to parliament but i will support their decision. of course he's f he's pulling all the strings he does, the european says. stuart: what did she i think that's out of the question anyway. not going to happen. liz: got the death penalty in 2004. ashley's right, they want to reinstate it. stuart: turkey will not be part of the european union. >> and both have said if you do it, the eu talks are off. it's going to be a fill or kill. you either don't do that or if you do it, we won't have a conversation. liz: and all of that money. stuart: what did she, everyone, more varney after this

. >> for seven straight trading sessions, we begun the program by saying there's nervousness, anxiety, terror all around the world, we're all feeling anxious.

and for seven days in a row, the market has not reacted to what's going on around the world. for seven days in a row, come 12:00 noon i've pitched my colleague charles payne and said no big sell off today. and i'm doing exactly the same thing. no big sell off, charles. it's yours. charles: i'll take it from here. thanks a lot, stuart, varney antitrump delegates. well, let's say they're about to get real quiet because in just hours donald trump will officially become the republican nominee. this is "cavuto: coast to coast" i'm your host today charles payne filling in for for neil cavuto. on a day devoted to the economy and making america work again. the stock market of course a record levels but at the same time millions of people are out of work. real estate titan and trump in new york on how republicans will make that pitch tonight. carl, thanks for joining the show. >> hi, charlie. thank you very much for inviting me. charles: i watched last night.