>> went up to 9.7. maria: thank you, everybody. on "sunday morning futures" i will talk to paul manifort from the trump campaign. we'll see what they are going to release. great show. have a great weekend. see you on sunday on fox news. stuart, over to you. stuart: maria, thank you very much. it is the worst recovery since 1949, virtually no growth in the economy but a jobs report today that the white house will really like. good morning, everyone. we're 94 days from a presidential election, so where is the discussion about getting this economy going again? where is the debate returning to prosperity? we're not hearing much of it. but look at this, new this morning, 255,000 new jobs last month. that is a solid number. and the market is going to go up significantly because of it. however, the proportion of people out of the job market is still stubbornly high. that real unemployment rate still about double the official rate. the real rate is at 9.%.

maybe this will change media's focus. right now the media is full of trump bashing. one story after another about how bad he is. not a word about the still weakening economy. and not a word from hillary clinton about growing the economy either. we have a report that hillary would raise taxes by well over a trillion dollars. but you have to look very hard to find that story. so here we are, friday morning, a new terror arrest, yes there is. trump plunging in the polls, yes he is. a solid jobs report, we will ask throughout the program when and how do we get back to prosperity for middle america. "varney & company" is about to begin. ♪ stuart: let's start with this, shall we? it is friday morning, off we go in what about 28 1/2 minutes we'll have a solid gain for the

stock market. up at least 100 points for the dow industrials. that is what i'm calling a solid jobs report. more about that in a moment. how about the price of oil, that is almost, 41.83, close to $42 a barrel. that helps the stock market. price of gasoline, i have to report this, i'm very sorry to say, it went up just a fraction overnight but it did go up, 2.12 is the national average. moving swiftly along. the jobs number, 255,000 new jobs created last month. to discuss this, andy puzder, mike huckabee, ashley webster and elizabeth macdonald. tell me how many were service sector jobs, very important? >> 9,000 manufacturing jobs. of the manufacturing still flat in terms of growth. service sector jobs are lower paying, restaurants, hotels. not that they're bad jobs but lower paying than manufacturing.

wage growth 0.13. 0.13. stuart: service sector, retail, hotel, hospitality, that kind of thing. >> that's right. stuart: andy puzder, i said the jobs report is solid. now we hear vast majority of were created you have in your restaurant chains, i hate to say it, not terribly well-paid. what do you say? >> you can say the jobs report is solid. look we added it 55,000 jobs. we -- 255,000 jobs. now the labor participation rate for 28th month in a row is under 63%. it hasn't been 63% since carter was president. look at it relative to other jobs report it looks better. stuart: the very low participation rate, i don't think a lot of people really understand the significance of it. what does it mean to you? >> the labor participation rate. when the labor participation

rate is low, it drives labor, drives unemployment rate, the official rate down, because you have fewer people in the labor force. you need fewer jobs to employ them. now the real unemployment rate, that youeferred to, the u 6 rate is 9.7% which i think is lot closer to reality. if labor participation were today when it was when president obama took office and or where it was when the recession ended in june of 2009, when it was at 65.7%, it was 65.7% today, the unemployment rate would be 9.2%. so i think people are really experiencing that 9% rate, not this 4.9%. stuart: that is why we feel a degree of misery on the ground floor, boots on the ground so to speak. >> exactly. stuart: governor, i come it a solid jobs report. it is just a one-month deal. i don't think we have a rebounding, vigorous economy. >> we still don't have any economic growth. without growth we don't have an

economy working for people. 4% economic growth means we fully fund social security and medicare, we start building labor force, we start bidding wages again. we're not doing that. we haven't done it really all the time obama has been in office. the jobs numbers are only good if you look at them in abstract. if you look at them in context of what we need to be doing to really help people in the middle class, get up to be on their feet, we're a long way from where that needs to be. stuart: look at the new report from a conservative group. called the american action forum. it says, its study says hillary clinton economic plan would raise taxes 1.3 trillion. that is over 10 years. and it would still have a $2.2 trillion short fall in paying for that policy agenda. >> plus 3.5 trillion in new spending. stuart: ah. 1.3 trillion new taxes. 3.5 trillion new spending. what do you make of all this, governor? >> the kind of budget a teenager would come up with.

i want a new car but i don't want to really have to pay for it. this is crazy, and what i don't understand is, why is the media letting her get away with it. stuart: exactly. no mention of this. >> nothing about this. this is huge. when you raise taxes, a lot of people will cut back on jobs. you will not have good jobs numbers. if you're in business, you have to pay more in tax, it has to come from somewhere. stuart: andy puzder, you're in business, if hillary is the president of the united states and you have to pay these taxes, what impact on your line of business? >> her whole economic plan is it going to have terrible impact on your business and every other business. she wants to increase taxes. she wants to punish companies that try to reduce their taxes. so all of that discourages investment, which we need as governor huckabee referred to, we need that for growth. then on jobs side, she wants to require that corporations share more profits with employees. that she artificially raise the wage to big minimum wage increase. increase work place benefits. which makes employing people more expensive.

if you're discouraging businesses from investing. discouraging them from hiring employees, you don't have economic growth and not create kind of jobs that working class and middle class people need. her whole plan is distasker. stuart: wish we heard more about it. andy puzder. we appreciate it. i want to get polls. they make terrible reading for donald trump. "wall street journal" poll, this is a national poll shows hillary clinton opening up a nine-point lead, 47-38. that poll taken after conventions. trump trails in the swank states big time. down by 6 in florida. down in michigan. 17 in new hampshire. 11 point down in pennsylvania. governor, you're laughing you but that is a self-inflicted wound. >> it is self-inflicted wound. look, here is the good news. only place he can go is up. you have to look at it in positive way. here is what donald trump has got to do. i hope he takes coaching from

people that run for office before. get off the cheese. here is what i mean by that. every time you stick your face in the cheese you need to know there is a trap behind the cheese. people are throwing the cheese out there. the democratic party. it is like chumming off the back of a boat. and he is just gobbling it up. he has got to forget about it. take on hillary. focus on her, jobs, economy, the reason people voted for him. forget about the hecklers in the stands. stuart: we've been, not we, but almost every republican i know has been saying this for the past week. for heaven's sake, donald, focus, don't go off on tangents. you're almost out of time. do you think that after all of these prods from all republican sides, that he will actually do it, stay on message, not go off on tangents? >> let's hope so. it is not about donald trump. stuart: do you think he will? >> i have to believe he will and here's why. it is about the future of america. all kidding aside, all politics

aside, the different trails that these two candidates will take this country are so different, so dramatically different, stuart, that if we elect hillary clinton with higher taxes, more regulation, imagine her in charge of the epa, the doj, osha, the trade -- just put all those alphabet agencies together and think of her appointments. think who she puts on the supreme court versus donald trump. think about how many countries she shakings down that her husband and clinton foundation gets more money. this is what the election has to be about. stuart: why the media is all for hillary clinton. the media wants all of that list. >> they want all of it, yes. stuart: got to wrap it. governor, will you stay there, please. >> i am strapped to the chair. stuart: andy, thank you very much for joining us this friday morning. we appreciate you being here. we do appreciate you being here. look at this, the olympic flame arrives in rio ahead of

tonight's opening ceremony, he did that just as workers took to the streets. they have not been paid, leave it to riot police, teargas, pepper spray to disperse the crowd. that is rio wednesday. this is video from new orleans. a tornado touchdown yesterday afternoon, buildings were damaged, some collapsed, two rescued and taken to the hospital, more on that throughout the show, dramatic video from the evening. the iran cash, president obama says no, it was not ransom. >> just take hours and hours, i

asked the police with us, told me we were waiting for another plane. if you're taking multiple medications, does your mouth often feel dry? a dry mouth can be a side effect of many medications. but it can also lead to tooth decay and bad breath. that's why there's biotene, available as an oral rinse, toothpaste, spray or gel. biotene can provide soothing relief and it helps keep your mouth healthy too. remember, while your medication is doing you good, a dry mouth isn't. biotene, for people who suffer from a dry mouth. .. ..

>> they told us you are going to be there 20 minutes but it took hours and hours. when asked why let us go, everyone, waiting for another plane, that plane doesn't come. stuart: that was a former hostage telling foxbusiness the iranian regime would not leave without -- until the plane with the money arrive. president obama dismissed the notion that this was ransom. >> we do not pay ransom for hostages. we have got a number of americans being held around the

world, and those families know those families don't pay ransom. stuart: former state department official in the us embassy, welcome to the program. without getting bogged down in definitions of what is random and what is hostage or not, the world believes we pay ransom, that is the way it is this morning, do you disagree? >> us has a strong policy about not paying ransom and in most cases there is no question we haven't paid random. there are countries that do pay ransom together citizens back. in this case there were two separate transactions. one was the settlement of a legal case and the other a prisoner exchange. this looks bad for the us government should have done it in a better way and the timing,

we pay for the settlement of the case the same day we did the prisoner exchange. we did that because iran insisted on it. we were not going to do that, but the us did it to recover citizens who were held in iran illegally, improperly and that was an important success getting them back. stuart: do you think hostage takers will parse words and look at the timing, two separate transactions, will they do that? $100 million a pop. who else can we take? david clark. >> i don't think so. stuart: why did they see two more american iranians in iran since the cash payment was made, why did they do that? >> iran is constantly improperly arresting us citizens in iran. stuart: using that as bargaining

chips. they are bargaining chips, aren't they? sometimes you bargained for political points and sometimes cash. come on. >> very clear the us does notpa. it appears poorly which it does, optics could have been much better but that doesn't send a signal around the world the us will pay ransom and does not do that. stuart: we did hear him say, the debate will go on and on until such time as we pay ransom for the two guys in iran. i hate sarcasm and i was just sarcastic. update on a london knife attack, new video the attacker being

taken down. >> police responded in london and got to the suspect six minutes after the call went out and boarded down with tasers very quickly. the victim, the person killed in this, darlene horton was visiting london with her husband who is a professor at florida state university, one victim is in the hospital. they took him down quickly with a taser. stuart: we got a new story about tarrant an arrest in north carolina. ashley: 35-year-old eric hendrix charged with conspiring to support isis, the complaint against him, he tried to recruit supporters and carry out attacks in the us, eventually given to the fbi, but the critical story is connections to the two people accused of attacking texas and

he made claims brothers in texas and mexico and he was trying to get them together to form a terrorist cell, as many as 10 people, very disturbing, he is in custody. stuart: almost a daily event. more news on terror. the isis leader behind the october 2015 attack on a russian jetliner that left 224 dead, that person has been killed by egyptian forces, he was the leader of isis in the sinai peninsula. the obama administration likely to hit its goal of admitting 10,000 syrian refugees before the end of september. 7900 have come in so far with the vast majority being sunni muslims, not christians. here is what we have next. the hits keep coming, donald trump continues to get attacked big-time by the mainstream media. ♪

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stuart: friday morning, wake up and smile. we are going up 100 points for the dow industrials, 6 minutes from now. don't forget oil, $42 a barrel range, higher than it was a couple days ago. $41.82, it is a daily occurrence almost, the mainstream media attacking donald trump and the attacks come especially intense from the washington post look at this selection, as trump fails clinton broadened effort to recruit where he republicans. did paul ryan just predict that clinton will win in a landslide? why facts don't matter to trump supporters. more opinions, the unbearable stench of trump's bs, the washington post. governor mike huckabee is with us. have you ever seen such a concerted do down of a presidential candidate? >> every four years republicans get frustrated because the media piled on but not sure it has

never been this bad. jeff bezos of amazon has reached a new zenith in journalistic objectivity, what a gold standard they have become. stuart: hillary clinton raising taxes, where is that story? >> we don't talk about that in the washington post. stuart: trump has two opponents, primarily hillary clinton, just as important the establishment media. >> he has some people in the republican party who are scared to death not that he will lose but that he will win and they threaten the institutional control they have on government and that scares him more than hillary. stuart: i am told he will make a big economic policy speech monday and i think it will be in detroit. stuart: >> he will not be talking about $1.3 trillion in new taxes. of the one amazon unveiling a plane, they will use it for

prime delivery service and get a fleet of 40 of these things and amazon stock is going to open close to its all-time high, 764 is where it will open this morning, watch it go up on this program moments from now.

stuart: it is friday morning, we are 20 seconds from "the opening bell". how will we end? this friday we will go up maybe 100 points. we had a solid jobs report and the market goes up. maybe good news is good news, 9:30 and how high are we going? pretty good. 55 up in the opening second, 54, most dow stocks in the green, 57 points, this is something. i hear 60. how about the s&p 500? in percentage terms it is up 0.46, up 0.2. the nasdaq going up consistently, it is up again today 23 points on the nasdaq, gold retreating, still at 1351 but down $16 today.

oil, is it 42, 4172 down $.20, that is taking a little edge off the markets and the 10 year treasury yields 1.54%. a couple standout individual stocks, amazon, $764 a share, a couple bucks away from its all-time record high. priceline profits up 12% and the stock is up $73, summer travel is really like those discounted hotel rooms including european discounted rooms, priceline is up 5%, craft/heinz, sales down, profits helped by cost-cutting. stock goes up 5%. the ceo says when you remove artificial coloring from macaroni and cheese he will gain customers, that just in. >> put more cheese in it and

forget the color. stuart: bite down, you people. revenue flat, they and listed oprah winfrey to turn the business around, she has lost money down 10%, $10 a share on weight watchers. royal bank of scotland lost money, set aside a lot of money to cover legal issues, you got to pay the lawyers, down it goes, 7%. ashley: the dow is up 100. thank you very much indeed. ashley webster is with us, so is liz mcdonald, scott shellady in chicago, paul conway in dc, jeff zika and mike huckabee fresh from arkansas. first who am i going to go to first? jeff zika, why not, solid report on jobs, the stock market goes

up so good news for the job market is good news for the stock market, i am not used to that. >> it won't last long, here is where the market is. the market is the road in on whether the fed will raise rates this year or not and i believe they have had it themselves, they have been reluctant to talk about it. my question is what is with the erratic jobs report two months ago? we get this anemic report and this explosive report when we have an economy driven by service jobs. stuart: still bearish on the stock market. give me those numbers on the service sector. liz: 201,000. 601k is lower than last year,

2014 was 240,000. ashley: a chance of a fed rate hike has gone from 45% to 37% yesterday. stuart: you got to explain this. the chances of a rate hike have gone up, why is the stock market up 103 points? >> the market is looking at the job number like it is good news but i tell you one thing right now. it just doesn't matter. we don't have an interest rate problem. go from 10% unemployment to almost full employment, we have no wage inflation. the economy is shrinking, we are not making anything, 0% interest rates for 7 years, housing at a 51 year low. ownership is not adding up. we have a problem here. when they do raise rates for no good reason because we don't have that kind of economy it

will hurt the stock market. stuart: come on in, i characterize the jobs report as solid. you can usually find a black cloud in a silver lining. >> look at the number, an important dynamic is the number of people taking on part-time work to make ends these, that has increased and a number of people on the sidelines. if you stick with the top line number that is fine, that is below 2014-2015 averages. 50% of the jobs created are created by small business, most small businesses are created by women who we haven't gotten out of the death cycle of businesses failing, and i don't see this as being a good report to be honest with you. stuart: thanks very much.

i want to have the whole idea of taxes and what will hillary clinton do if elected president? a conservative group crunched hillary's numbers, they come up with this, she would raise taxes by $1.3 trillion over twee 10 years in extra taxes and that would leave 2.2 trillion short when it comes to paying for her policy agenda. what do you have to say about that? >> is that good for the economy? putting us further in debt? he spent more than all other 43 presidents combined. we are in such a bad situation with unfunded liability, almost mathematically have no way out, that is how bad it is. i don't know where this comes from, when things get bad we raise taxes. we will start losing constituents with their hair on fire leaving the country because there is no way to put that

burden on people that don't have jobs, it can't happen. stuart: we have to be realistic. if the election was taken today hillary clinton would win by a large margin. >> thank god the election is not being held today because we have got to let people know. you could be jethro bodine, just know a little ciphering to know the economics of this. you may not know jethro bodine, the beverly hillbillies. just telling you, you cannot raise taxes by that percentage, that money and do everything other than gut punch the economy and jobs and workers and employers. stuart: what effect on the jobs market if we did get a tax increase over twee 10 years? >> look at both tax increase and

increased regulation especially what would come out of the labor department, looking at the total package you are going to tell employers this is not an environment to invest money, reinvest in workers and has a negative impact. stuart: and reinforces your bearish outlook if we got hillary clinton. >> to reiterate what people said, small business tax, we have the highest corporate tax rate of all the developed world, for us to sustain any type of economic growth or achieve any economic growth i believe it is virtually impossible to do without cutting corporate taxes. stuart: we have a lower outlook and hundreds of job cuts at a security firm called fire i. give me the story. nicole: it was a hot topic, not

so much anymore. down 15% over the last 52 weeks 60%, sales missed, weaker outlook, weaker forecast, job cuts, 300 to 400 workers, just saying they are not seeing the demand for organization. the research, one interesting sentence you are going to like, cyberespionage attacks from china appear to have dropped this year and the chinese government made good on a pledge to the united states to stop supporting digital theft of trade secrets, china is not hacking at as much so they are not as busy? it seems a little -- stuart: seems contradictory but you have to take them at their word, stock dropping 14%. i find that fascinating, thanks for digging. you dug deep and got it.

microsoft, i do own it. look at that. a good mood on a friday morning. not much. 52-week high, buying linkedin for $26 billion, that deal is supposed to close by the end of the year. posted its deepest loss as a public company in one of its final quarterly reports but membership was up 18% and they report a rise in user engagement. we use it more, like it more, use it more. microsoft 57, adidas, i am an american, they own tailor-made golf equipment which is number one in that category and growing, nike growing out of it,

adidas is down one dollar, nike stock is down 12% but struggling at 55 as of right now. thank you for a good performance, the governor stays with us a little longer but thanks to everybody else, up for the weekend. look at this. 141 points, smile on your face. you got to carry me out. look at this, secret service agents rushed to hillary clinton after protesters storm her podium but hillary used the opportunity to attack donald trump and his family. speaking of trump we are less then 100 days from the election and he is taking more hits in the polls big time. is it too late to turn it around?

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stuart: listen to this, mark teixeira expected to announce his retirement, yankees holding a news conference this afternoon. he will retire at the end of the season. he signed a eight year, $180 million contract in 2009. he could have become a free agent this winter. instead the man is retiring. we are 95 days from the election and new polls show donald trump really dropping sharply.

both nationally and in important swing states. the washington times, kelly, we will be running these polls so the audience can see them. trump is way down. i put it to you it is -- he has run out of time. it is too late, he can't fix it. >> i don't think it is too late, polls are a snapshot in time. of the election were held today donald trump would be in a tough position but they are not. he has until november to turn things around. if you look at michael dukakis out of his convention he had a 70 point lead and i don't remember there being a president dukakis. there is time to change things and one thing out of the wall street journal nbc poll today donald trump is winning on his message, winning when it comes to dealing with isis, being a change agent, he should stick to them.

stuart: he should go with them. he is hardly stuck to them so far. i believe he will announce his economic plan which includes a lot of taxcutting monday of next weekend i think he will do it in detroit. maybe he can get back to the message grow the economy, return to prosperity. no more tangents. no more tangents please. >> i wrote an article about, cozzi trump. he dominated the news cycle in so many negative ways it was mind blowing and he needs to stick with what works for him. stuart: look at the poll that is on-screen now. who would best handle nuclear weapons? 56% say hillary, 34% that donald trump. that goes to his temperance, difficult to turn around the public's to view of the man's

temperament. >> i disagree with you. i feel hillary clinton is a pathological liar and is an trustworthy and that is a temperament issue, she is winning the messaging war partly because when he gets off message enter these tangents but her numbers are baked in. he has been in the public eye for a quarter-century. i'll americans know her and nobody likes her. half of them don't like her. with trump there is room to change because he is winning on the messaging. he is winning when it comes to the economy and immigration. 57% of americans want change, they don't want the continuation of the status quo. the american public wants to stay behind donald trump it needs to give the belief he is a plausible candidate who really wants to win this office. stuart: see how many viewers you have turned around.

gun stocks, we are going up. the fbi says the july 15th straight month for record gun background checks. >> more than 2.2 million in july alone. these are background checks. to a sale, we don't know how many guns are sold. look at the number from january through july, 16 million. this comes as the ceo, a rare move for the wall street earnings conference call, looking at the november elections, we hope customers and all freedom loving americans will take action in support of the second amendment leading us to the presidential election saying for the first time we

have a nominee with reasonable likelihood of overturning or overstating the supreme court got it wrong. stuart: barack obama, guest gun salesman in the world. >> way lapierre otter have a big banquet in washington and give it to the person to help nra membership send give it to barack obama. record-breaking event. a lot of other people did too. stuart: look at this, we will call this unexplained lights over the gateway arch. some call it a ufo. it was shot by security camera in a park nearby. >> it moves around weirdly. the special olympics puts thousands of plastic toy rubber

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stuart: taser international, you think of them as stun gun people, their sales were up 26% because they have become i believe a police body camera company. police agencies are encouraging officers to wear these things. joining us is luke larson, president of taser international, welcome to the program. i said something some people would find outrageous, you're not so much of taser company is a police body camera company. is that correct? >> we do digital evidence software as well, the camera is the tip of the iceberg, what happens after the recorded

video, evidence from captured to court room. stuart: if your software program capturing the video as part of the police body camera operation, the stun gun effects. to tell me how fast the police body camera business in its entirety is growing. >> we have seen incredible growth, $72 million, a record quarter for us, and the taser revenue weapons business, showed the business about video is larger than existing taser business. stuart: how many police departments have ordered body cameras? >> 6000 police agencies on our

platform includes any of the software suites we provide with mobile apps, body cameras come recently launched a new fleet product as well. stuart: luke larson, congratulations on your stock performance, you are up 70% this year. thanks for joining us, appreciate it. dramatic video from hillary clinton's latest rally, secret service agents jumped in, protesters, wait until you hear what hillary said. the historic don't tread on me flag dates from 1775, being called racist and there is a lawsuit that could get it banned in the workplace. welcome to america. our two two minutes away.

stuart: 7:00, big day for your money and politics. donald trump is flat out

crashing in the polls. i know that is a strong word but it is justified. pennsylvania, michigan, new hampshire, hillary clinton has a double-digit lead. in the latest wall street journal national poll hillary leads by 9 points. two things are in play, self-inflicted wounds, and in his favor, in the economy, counterpunching is no longer working. second, trump faces an exceptionally hostile media. they are eager to pounce on anything and trump gives them plenty of ammunition. added up, trump is beating himself and the media is enjoying the ride. there is a weekend of campaigning just ahead, see if donald trump can focus on the political gift, the jobs report may have given him and see if anybody asks hillary clinton

about $1.3 trillion tax hike, the second hour of "varney and company" is about to begin. let's start with this. 255,000 jobs created last month, i call that a solid report. the s&p 500 is up 7%, looking at a lifetime high, it is 2016 high or close to it at least. amazon stock unveiled prime air, the prime delivery service, and the stock are very close to a

record all-time high, 767. to the jobs report, 10 year economics professor, peter morici is joining us. i call it a solid report, 250,000 new jobs. >> it is used on clinton very effectively. if he pivots on the economy he has to focus on giveaway programs but is important the taxes she must raise on the middle class to finance. stuart: listen to hillary clinton talking on taxes. watch this for a minute. >> trump wants to cut taxes for the superrich. we are not going there, my friends. i am telling you right now we are going to write fairer rules for the middle-class and we are going to raise taxes on the middle-class.

[cheers and applause] stuart: she did not correct herself. go ahead. >> 84% of taxes collected are in the top 20%. rich americans are already paying quite richly for a government that doesn't do much for them. if she is going to finance her $1.3 trillion in giveaways she has to tax people who make between 50 to $250,000 a year. that is the message i would be driving home if i were donald trump. that is where the money is because obama and clinton would not go after the middle-class. stuart: we have this new report showing hillary clinton would raise taxes by $1.3 trillion, that is a 10-year period, that is $1.3 trillion in extra taxes,

that surely is good ammunition for donald trump but you don't hear it anymore. we had to dig to find that. none of the media are reporting this. >> the $1.3 trillion i was aware of and was reported in the media, that is where i got it from. it will not be reported by the new york times, that is a propaganda rag but it is on the wall street journal, the real problem is trump is not well advised when it comes to economics and tax policy any more than he is on foreign policies, not getting the talking points he needs and have a consequence not making -- stuart: he has to have a discussion of economic program monday next week into it in detroit. that is an opportunity. >> yes it is and he is looking for help on that but can he stay on message? hillary says something like that

and he doesn't hit her on it. instead he talked about a gold star mother. if he is asked about abortion he should talk about the economy, in fact about the ukraine he should talk about the economy. he should not bothero answer questions off of his message. stuart: you have got to gone and his team but you are on to something. we appreciate, see you soon. the political headline of the day, donald trump dropping, i will say crashing in latest polls. i know that is a strong word, nationally and in battleground states he is way down. ebony williams is with us. we are going to run those polls to show you how bad it is. i say it is a self-inflicted wound. >> i concur. crashing is exactly what it is, crashing relatively fast. in may or early june, statistically a dead he tie and we are not even two months down

the road and this is not the time donald trump once hillary clinton to open a double-digit lead and it is concerning, battleground states, pennsylvanias, these are states that donald trump was positioned as a gop nominee to change the mask. stuart: he was leading a couple weeks ago. >> these are middle american workers who do well for trump and he is losing them. it is what peter spoke to perfectly. he is not seizing opportunities, economy economy economy jobs jobs jobs, he should be talking about it all day long. don't have to go to every fight you are invited to and he is taking up opportunity and facing the world that doesn't know favor. stuart: i hope you don't mind my bringing you into this discussion. up your anecdote, your mom was a strong supporter of donald trump.

not quite so strong in her support now? >> still voting for donald trump but like a lot of trump supporters, her candate is making it more difficult to maintain the enthusiasm. stuart: >> it is wanting to be the outsider, he is very much that, that is where it is today but it is harder to defend him for the issues he is getting into especially goldstar parents. stuart: hillary clinton responded to animal rights protesters who interrupted one of her rallies. >> these people are here to protest trump because trump and his kids have killed a lot of animals, thank you for making that point. stuart: that was a bit of a stretch. >> it was hypocritical because this is one of the few issues that during the primaries she was further left on than bernie sanders. for her to manipulate it that way i didn't appreciate but this -- he is not the best politician

but good at the pivot. liz: what is she bringing up? they went on an exotic animal killing, pretty horrific and grisly photos killing an elephant, killing a cheater. of the one hillary clinton tapped into a vein here, increasingly strong feeling, don't go out and shoot animals. deer hunting for example. >> i am from the south, this is a thing that is very real and not fair to demonize certain cultural norms. it is not for everybody, every american. >> they shot a cheater. and posted pictures of it. stuart: she hit a nerve. now this. extreme weather in louisiana. a tornado rips through walls, you are looking live at a funnel

cloud, left a path of destruction, some houses reduced rubble, more storms are expected today. forward recalling mustangs and suvs, faulty door latch could cause it to swing over when driving, 830,000 vehicles are involved. we talk about this and honor killing in pakistan. a british woman goes to see relatives and ends up strangled. 1000 of these killings in pakistan every year. more on this next. if you suffer from a dry mouth, then you'll know how uncomfortable it can be. but did you know that the lack of saliva can also lead to tooth decay and bad breath? well, there is biotene,

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stuart: i think this is the highest today, down to sales up 150 points regaining 18,500. if you look at all the stocks together it is not necessarily a sea of green but most of them are going up as in the dow 30. look at weight watchers, 28 on

the dow 30, two are down. weight watchers enlisted the help of oprah winfrey to turn the company around, she took a stake in the company but revenue is flat and it is %. i don't know whether oprah is a bubble underwater. look at craft/heinz. they merged last summer, profits held by cost-cutting and that is helping stock become 5%. priceline's profit was up 12%. look at that go. 5% by this morning on priceline. the obama administration says it is on track to make the president's goal of 10,000 syrian refugees by next month. ashley: a few months ago, they were behind to get 10,000 refugees in syria into the united states by the end of the year but the pace of those refugees coming and has picked

up. how are they vetted? still not getting clear answers on that. stuart: why are very few christians coming and? >> we are digging into the state department definition, someone who is persecuted by the government and they can't or unwilling to control, all about foreign government so it doesn't seem -- exulted by government. it is all about foreign governments whether they can control the group, the definition is pretty strict. only 35 christian so far. stuart: that is outrageous. the president speaking at the un. >> our next guest is prime minister of pakistan, welcome to the program. you must be horrified at the thought of a donald trump presidency. >> i am a great believer in

democracy. let the people of the united states decide. stuart: the government of pakistan would be apoplectic. >> generically what people say and a campaign, what happens after they take over our two different things. the people of the united states have to decide who would be the next president, that is what democracy is about. before tell us what the pakistan people want. >> people of pakistan -- stuart: don't tell me they want america to decide for themselves, they have an opinion. you don't want to scare the issue. the people of pakistan once hillary clinton as the next president of the united states, right or wrong? >> the people of pakistan do not watch every day what is happening in the united states

although they have local issues, secondly both candidates have come to a process, the leading parties, and this is a good lesson to the world. stuart: you know where i am going. cut through the diplomatic stuff, hard to do. >> allow me to answer. stuart: you want more of the same, don't you? >> for hillary clinton, her name recognition in pakistan will be more than donald trump. donald trump is not a public figure in the context of the pakistani mind. here he is very popular, hillary clinton is known, secretary of state of the united states, when

you are secretary of state people relate to that, publicly spoken on platforms about various issues, she is better known. i am talking the delete, take this seriously and in pakistan, they want a good relationship for the united states, they see challenges in the relationship and the united states has to see its perspective. stuart: i have to raise a difficult issue. another honor killing. a british woman killed while visiting relatives, her family disapproved of her marriage, she was strangled. this follows the killing of a social media star, she was strangled by her brother for bringing shame on her family.

this -- when westerners look at this they are horrified. terrible image. >> let me clarify this. anytime, no matter who you are, man or woman, if your life is taken for reasons of personal behavior etc. this is wrong. pakistan has laws, the laws protect everybody's rights. however, as you know. stuart: 1000 a year in pakistan. how many killers are brought to justice? >> i am sure the authorities would know how many they are. the system goes after all of them. i know that because the law provides for that, the constitution provides for that. the issue of honor killings has been there for a long time. pakistan legal code is very

clear anytime you even attempt to take the life of anybody, the system will come after you. stuart: it is appalling. >> we have gone after many, this happened several times. it relates in the minds of people, cannot take the law in your own hands. a crime is a crime. stuart: thank you for joining us. it is hard on you. >> not at all. stuart: thank you so much. check the big board, we have 151, the mainstream media dismissing claims ransom to the

american hostages, we will figure that out. you pay your car insurance premium like clockwork.

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liberty stands with you™. liberty mutual insurance. >> it was interesting because the tape was made with the airplane coming in, nice plane, the airplane coming in, the money coming off, that has to be by the iranians. do you know why the tape was given to us? they want to embarrass our country. stuart: that was donald trump. this is the hostages getting off the plane in geneva, the $400 million cash was paid to iran simultaneously as those hostages were getting off the plane so that is what he is referring to. the mainstream media reacted to

all this with these headlines. cbs, trump sticks to his depiction of debunked iran video. this from abc news, false claim on iran video, the us did not a $400 million ransom to iran, goes on to say this dumb controversy is everything wrong with our iran debate. ashley: two the british is because donald trump referred to video he thought was money being exchanged that was actually hostages getting out of geneva. fair enough but this is not a dumb issue, this is a huge issue that speaks to how week the administration is in dealing with iran, first the nuclear deal and paying them $400 million in swiss francs, we are not supposed to be dealing with iran. never gets any traction in the mainstream media. charles: goes back to the question the young lady asked three times, and those hostages

had been released if that cash had not been paid. liz: the media focuses on the petty, he blundered, made a mistake but the broader issue needs to be aired and the american government and other governments have frozen to billion dollars assets at iran. that is at play. would go to welfare for people? or nuclear arms? that is what should be the debate, not trump's gaffe. stuart: how is your blood pressure? liz: not as high as yours. stuart: more money coming into lions gate entertainment, tv operations strong, box office good for its movie now you see me ii going the other way, they lost a lot of money, had to put it aside to cover lawyers costs.

legal issue down. ashley: 17% owned -- stuart: it is, bailout. james harrison, the linebacker for the steelers throwing into the whole, a strong guy shot 10 feet into the air, big splash, very strong man. another one of google's self driving cars in a traffic accident in los angeles, waiting at a junction, mitsubishi bumped into it, it's rear centers were damaged, president obama, isis is losing on the battlefield the defense secretary carter tells a different story, he called isis a cancer metastasizing. we will be back.

stuart: well observe this please

amazon launching its own dedicated cargo planes they call these. air amazon wants to create its own air transportation network. well how about that?dy leasing e plane. look at stock. almost at an all time record high 756 up there close to 185. 4137 and down 56 cents. despite is the rise in a tax recently, president obama says we are winning the battle against isis. watch this. >> we've continued to be reare lentless in our fight against isil, and on the ground in syria and iraq isil continues to lose territory. okay. slighted different point of view from a defense secretary. roll that tape. >> they have to be destroyed and defeated in iraq are and syria

because that's where this whole cancer started but you say it is not enough because it's spread to afghanistan, it is spread to libya, you noticed it in recent day, we have begun air strikeses in support of local ground forces in libya who were fighting isil there. we're, obviously, doing the same in afghanistan and we're going to need to do that anywhere cancer metastasizes. >> outer of a great book in the arena that's the name of the book and guy is with us his name is pete. pete welcome to the program. j thanks for having me. stuart: stses is it a contradiction? >> it is going to until you get rid of the tor in iraq and syria we have gains on the ground but enemy doesn't believe we're willing to go hard or far enough to take raqaa their capitol and out in libya

elsewhere around the world they look to the holy in syria as source of their legitimacy until you get the root out you don't get the branches. stuart: but if you get root out you kill them there. don't they just -- spread out and go more of them to europe, more to north america and where else. >> they truly believe in reestablishment of this -- of a kingdom of a state. you get rid of that and this idea, this dream that they have of a new world order phases away with it. so we think of them as fighters they're an ideology hell bent on expanding that state you get rid of that now they're regional sources but structure they thought they had caliphate and state they had was able to be defeated by the west and any time enemy is losing especially in their backyard and headquarters it is demoralizing not to get rid of the threats but that is key. >> fast do question of to send

in 10,000 really good american soldiers or do we carpet bomb iraq and elsewhere? how would you do it? >> probably a combination of both we need the leadership to say we're going to -- country prepared to do that. >> probably not but with a new president you could create the leverage point where you force krpghts in the region to invest nor substantially than they have. then americans come in with assistance and you've far nor firepower from the air especially. there's a way to build a campaign to expedite isis president obama not in a placed to do it after seven years. stuart: you have good fortunate to do an interview with governor mike pence i believe you spoke to him it be unity in trump campaign. roll that tape please. >> can you speak to these rumors and speculation that there's divide inside the trurp camp or there's divide inside republican party that is dividing campaign? >> yiepghted and in our determination to carry his vision to make america great again to four corners of this country.

>> now this everybody is talking about this. stuart: is the trump camp divided? and is trump inflicting wounds upon himself and republicans saying knock it off please donald you know we're story background here. >> pens saying they have different styles in the way they articulate it on i was on grownld watching a rally and got to speak with them and it was clear there was no space between here and donald trump he fully sports vision of donald trump and reign in on issues. but believes that you know, they set issues they're running on are what american people want but focus in on right issue and pence is a great job he's articulate hengdz it is issues well and explains well he's a great asset. >> so rally that you attended with governor pence you were there, for a huge crowd? >> no damp at all and in backing away of pence of support of trump he was all in saying we need donald trump, leadership, and vets and military families

responded amazingly to that. in light of the khan comments hasn't affected a lot of trump supporters. >> great book by the way. in the arena. thanks very much pete. now, this -- the equal employment opportunity commission. their they're debating whether shirts with the flag symbol of course that was made famous by slogan don't tread on me is that flag race cyst there's a lawsuit about this. look who is here one of our favorite attorneys but we have one good one here named emily she's defense attorney. what was this all about? is it a wsuit or is it a complaint about the flag don't tread on me. what's going on here? right so these were two employees in a work plains one employee qoar this hat to work multiple times. another employee filed a suit that went to equal employment commission that says look this is creating a racially charged

environment this is a racial message. now, with the e.o.c. dlifortd recently they said look there's not enough here to know. so that was a procedural stage and e.o.c. said we acknowledge this message and this flag arose out of revolutionary were and not pinged, however, since used them to convey messages nonracial are and racial insentiment. here's important note here is that law says unlaifl harassment is when conduct is so severe and picture vasive a reasonable person finds the work place environment hostile, intimidating or abusive. and note that law specifically says isolated incidents or annoyance or petty place is not enough to create this abusive work place environment. also important to remember that this is a federal government being held liable here for this. >> what is end result do we know is there a judgment on this, is it judged to be introducing something like creating a

hostile work force work place? >> the decision is that it has to move forward so now if they will investigate the circumstances, to determine whether the wearing of this hat created a work place harassment and abusive environment. and here's parking the other imt take away here commission is made up of five commissioners presidentially appointed four of the five appointed by president barack obama so this is a consideration for our next president. because it has a tremendous impact on the work place and right now this commission lean it is toward saverring those of employee rights so it is really important consideration. for voters -- >> so possible emily going forward that flag don't tread are on me could be jot lawed in the work place. that is a possibility, correct? >> that is an extreme possibility, and to get there, the e.o.c. would drm that in that particular context it was used in messaging that was racially tinged and a created harassment. >> when do we get a judgment on this from this commission?

>> we can expect it within next six months but the fact finding stage will actually take quite some time. so e.o.c. tends to take its time with things like this for now procedural ruling is out of the way so they'll proceed with a fact finding investigation. >> emily you can be relied upon to do her homework on every assignment that question ever did. that was fantastic thank you very much emily come see us soon. thank you got you. i'm not going to ask to comment on that. [laughter] >> wouldn't be pretty. >> we've got to get our blood pressure down somehow or another on this program to do that let's go back to your money. wow you like this if you spold stockses back in may, you missed it a nice rally. nicole what's this all about? >>we know the saying. saying is sell in may and go away. right? but you shouldn't have done that this round especially involved in technology in particular. take a look at the gains that we saw and some of the favorites in technology, and what they've done for may up to this point.

take a look now, you can see facebook gained 6%. amazon 15%. microsoft 15%. you can also see apple u up 13%. this on day that nasdaq hitting highest levels of 2016. so all up arrows we saw them surging quarterly profits. mobile ads street, cloud, and this is everybody just continuing to go on their shop -- on their phone for shopping, and they do -- save their pictures. they do business. they connect with the outside world. they socialize and so technolo clearly has outpaid especially while oil was in bear market 20 off ties technology holding on nicely. >> those that you quoted those dominated the entire market for at least the last year. and have they done well. nicole thanks for sharing that with us we appreciate it. thank you. and now this, a french town telling a muslim supermarket hey, sell pork. sell alcohol or get shutdown.

we'll bring you that story for you. attorney general loretta lynch top prosecutor in the land telling black journalists that police need to do better. more varney in a moment. if legalzoom has your back.s, over the last 10 years we've helped one million business owners get started. visit legalzoom today for the legal help you need to start and run your business. legalzoom. legal help is here.

♪ >> "varney & company" starts at 9 a.m. eastern here is what you missed last hour. >> you can say that job is report is solid but we added 255,000 jobs we also added

225,000 people to the employable population why the labor parption rate now for the 28th month in a row has been under 63% and hasn't been 63% since carter was president. >> so if you look at relative to other job reports -- better. >> of that very low participation rate i don't think a lot of people really understand the significance of it. what does it mean to you? >> well labor parption participation rate is low it drives labor, unemployment rate officially down.

>> well all right more details on that story we brought you moments ago a town in france which is telling a muslim supermarket, hey you must sell pork. you must sell alcohol, or we'll shut you down. what's that about? >> it's in the northwest of ferris is in suburb called calom muslim run store, and housing authority saying if hey, wit a second we're renting you the store. rental agreement says you have to sell a dwrsty of products that means pork and alcohol and local resident particularly senior citizens complained an now town is moving to evict

store owners because they're violating lease agreement. >> i wonder how that turns out very interested to see. pressure on the muslim community quite a lot of it. now look at this. here is the top prosecutor in the land loretta lynch speaking to black journalists about police community relations. watch this. we have to see law enforcement entities, officers saying to me all of the time we don't accept bad police behavior. we get rid of people who cross the line, and you know i would say to them that's great, and i've seen that because i work with law enforcement but the general public does not see that. you know, you need to understand that people do not have that perception of you because they do not see that. >> okay. cleveland police association detected steve joins us again on "varney & company" this morning. all right detectives trying to read between license and understand what was going on

there. let's see if you agree with me. seems to me that lirette that thrinch saying in court of public opinion you police officers are guilty. and that's what she was saying if to black journalist. now have i got it right? >> yeah. that's what it appears like in that. she couldn't be further from the truth. she's absolutely wrong are and leadership like that that divides this country, and makes things very difficult for police officers out here. you know, we have -- we come in contact nationwide as police officers come in contact with 1.1 million people every single day. less than one eighth in encounter nend violence do math on that. a ridiculous notion and should be ashamed of herself. >> perception is that police community relations are deteriorating that is the perception i think of most people in this country. and that accounts for this

racial divide that seems to be getting more extreme. what should loretta lynch be doing as o posessed to what she did actually do? should be talking about the officer, the goods stories we don't do a very good job of getting stories out there. we're proposing right now that we have a bunch of 15 and 16-year-old kids that want to be drivers. put something in the drivers manual and test them how to react and react when police officers pull them over not just to the side of the road when a siren is beside you but what they need to keep themselves safe and keep the police officers safe. you know, there's positive things that we can do in this country to -- advance that and she's not doing that and neither is the president. >> after dallas ambush police chief in dallas as i recall stood up and say, hey look you guys protesting put on a badge.

come and join us. we're hiring. you can be part of the solution. i think that was greeted across the country where people saying yeah, that's the way to go. that's what we want. >> you with that? >> absolutely. >> don't sit there and complaining everything but fix it if you think it needs fixing. i guarantee people that come out and become police officers are going to see things from a different perspective very, very quickly.know, there's a lot of positive things that we can do in this country to changing the perception and i'm not a big fan of perceived notion especially advantagessed by political figures and media and there's a lot more good done by police officers across this country than there is bad things. >> one last question from where you are now in your everyday police activity life, are things getting worse or better in terms of your relationship between the police force and black people?

>> you know, i don't know that it's black people. we're greeted constantly. i've never in 23 years had more positive interaction with -- with the public than we do right now. it's a very, very small portion of the community and a very large world that are streaming getting attention of the yeedz and everybody else. but vast majority of the citizens and every single neighborhood in this country are law-abiding citizens, that respect the police that want the police in their neighborhoods and they know that we have a very tough job and they're very supportive. they're just the silent majority and i think you're starting to hear a little bit more from them right now, and hoe that continues. >> that's good news because that has been dominated by activists saying things are getting worse and bad guys. >> well activist supported by you know loretta lynch and president obama, and you know movie stars, and everybody else. you know, it's a false narrative we've proven beyond a shadow of a doubt it's a false narrative. ferguson was absolutely worst

thing that happened to law enforcement in my adult lifetime. and that was a lie that was promoted by then -- attorney general holder. the president of the united states, and it was allowed to continue and fester in to what it is now, and nobody ever came back and took that back, and that's not fair to law enforcement. we do a good job out there every day. >> steve loomis thank you for joining us appreciate you sir. stuart: ceo of the country largest gun maker that's ruger says hillary clinton is a threat to gun rights. now, ash what exactly has she just ?aid >> well it's very interesting, yes going to say he mike fell pfeiffer talking about hillary clinton and what she would mean to the seconds amendment. there's a couple of quotes let's give you one for the very first time ever he says, we have the nominee of a major political party actively campaign against lawful commerce in arms. he goes on to say, we hope this

inspires our customers to take action in support of the second amendment. he also says this is interesting stern ruger says they cannot make enough guns to keep up with demand in this political climate. that just shows you -- stuart: you brought us the story earlier was it 16 million? >> yes. stuart: gun permit application this is year. >> michael pfeiffer quoting hillary clinton saying that supreme court got it wrong. hillary clinton says the supreme court got it wrong in a gun rights case called dc versus heller. >> following on our interview with steve loomis listen to this black lives matter protesting in britain. blocking roads for example, the heathrow airport massive traffic jams because of this and parts of the country as well. katy hop skins back with 141 terror attacks in past month. katy says people in the west are sitting ducks waiting to be shot. she's on the show. meanwhile hillary clinton she's planning whopping 1.3 trillion

tax hike and she says she is coming for the middle-class. >> i'm telling you right now, we're going to write rules for the middle-class and we're going to raise taxes on the middle-class. [applause]

>> no doubt about it we have a solid rally on our hands the jobs report leading the dow that is higher for the week as of now 27 of the dow 30 in the green that tells a story. meanwhile s&p 500 also hitting new lifetime high up 14 points at 2179. nasdaq the tech heavy index hitting new high as well for calendar year of 53 points at 5220. all right, now let's check this out. stuart getting filled in what's coming up at the top of the hour serious with a cup of tea so all is good. general mike fell flynn on isis several arrests here in the u.s. last week. but the president says it's all under control. stuart is going to fight with a socialist professor about hillary 1.3 trillion dollar tax plan get ready for fireworks should be fun. and check this out hackers stealing jeeps and vehicle using a laptop and story but first

governor mike huckabee talking about trump and hillary. >> it's about the future of america. you know, all kidding aside all politics aside the different trails that these two candidates will take this country are so different. so dramatically different stuart. ♪ what powers the digital world? communication. like centurylink's broadband network that gives 35,000 fans a cutting edge game experience. or the network that keeps a leading hotel chain's guests connected at work, and at play. or the it platform that powers millions of ecards every day

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stuart: terror and the anxiety that comes with it is back on center stage. it is the frequency of incidence that's really getting to people. today it's a man from north carolina arrested in ohio. he tried to help isis, and he had contact with the garland, texas, killer too. we have the case of the d.c. transit police officer, yes, an active-duty guy ryed to send money -- tried to send money to isis. in london, an american woman stabbed to death, others slashed. the killer was of somali descent. police say he was mentally deranged. in france they broke up a terror cell that was planning a bloody attack in paris.

all this in the last few days. are we supposed to become be numb to all of this, get used to it because we can't stop it? if that's what our leaders think, let's hear them say it. so far virtual silence from the president and from hillary clinton. donald trump has a plan, but he's been dismissed as a bigot. three months to the election with every incident be terror moves up the list of voter concerns. and with every report of weakening, so too does the economy. if in late october the electorate is discussing security and prosperity, the result of the election may be very different from what the polls are showing now. the third hour of "varney & company" is about to begin. ♪ ♪ stuart: yes, we will get to the terror material if i can put it like that in a moment, but look at this, this is your money going up.

the dow industrials, 27 of the 30 are up, three are down, and the dow is at this virtual high for the day, up 156 points. as we said, there are the dow 30. 27 of them are up as we speak. all right. what do we have now? we've got the s&p 500 up .7%, 16 points. that's a record high set today on that index. the nasdaq up another 56 points, that's a 1% gain. that's another 2016 high. be stock of the day could well be amazon. that's very -- within a few cents of its all-time record high, very close to 768. priceline, profit up 12%. the stock is up $63. ashley, liz, solid jobs report morning. i'm going to call it a solid jobs report. there's something wrong here. when you get good news on the economy, you're supposed to see the stock market go down because the fed will raise rates. >> in fact, the possibility of a

fed rate hike now up to 45% according to traders, up from just yesterday, which which was. it's a bit counterintuitive because you think higher rates are bad for equities, but they're taking it on face value. stuart: and it's going up. now we're up 162 points. >> yeah, listen -- stuart: why is it up? [laughter] >> i think people are finding out finally our 401(k) accounts are feeling really good. some of big shares that are moving that we're watching the reaction right now -- action right now as you pointed outs, amazon, taser moving nicely and facebook has room to run. that's the word of the street. stuart: okay. i'm still surprised. i would have thought -- >> to quote from the 9:00 hour, it ain't gonna last. [laughter] stuart: on that happy note, it's friday morning. [laughter] i do have to get to the terror item, several of them actually. a man named eric jamal hendrick was arrested in ohio. he was trying to create an isis

sleeper cell. investigators say he told them there are members of isis waiting in texas and in mexico. joining us now, lieutenant general michael flynn. he's the author of "field of fight." this man was in charge of defense intelligence, i believe, for a number of years. general, welcome to the program. good to see you. >> thanks for having me, stuart. stuart: you're a man who knows the answer to this question: how are we supposed to protect ourselves whether we're in europe or north america? we're soft targets. >> yeah. so let me give you a real quick stat. in the last 45 days, there have been almost 150 isis-inspired or directed attacks in 22 countries with over 4,000 casualties, and the split there is dead and wounded are about even. about split dead even. so national security, which donald trump is the national security president, you know, homeland security has everything to do with that. what we need to be able to do, so the solution to this is to,

for our leadership to clearly define how dangerous this problem is, exactly what it is that we are facing, the rise of radical islamism and then to allow our law enforcement professionals to get out there and do the job that they're able to do. and that's from the fbi on down to state and local level law enforcement. you see the assault on our law enforcement professionals, and they frankly feel hindered to be able to do their job because of the politically correct environment we are in. stuart: well, donald trump should be gaining ground because of this terror threat. and until recently, he was. but now on the issue of security and terrorism, he is tied with hillary clinton. how do you explain this? >> yeah, i think that one of the things around hillary clinton is her just incredibly poor judgment that she has demonstrated on a range of issues. and i'm telling you that the judgment that hillary clinton has demonstrated in places like libya, iraq, syria, yemen, you know, the asia-pacific theater,

russia reset, all those kinds of things, she's got no judgment as far as i'm concerned, or it's poor judgment. and i think what you're finding and what donald trump has done is he's put his finger on the pulse of some really serious issues that we are facing going forward. and, frankly, it will take -- this threat is going to take more than the next four years. it's going to take much longer, and we have to be honest with the american people. stuart: yeah, ought to be honest. should our leaders say, look, get used to this, because we cannot eradicate it in the immediate future? would you like to see that from the president on down? >> that's kind of what we saw from the president yesterday,tht of this, you know, out of the camp that is sort of the defeatist attitude. there's no enemy in the world that's unbeatable, we can beat this enemy, and i describe in my book how to win. there's a whole chapter on it. when we throw up our hands like the president said yesterday and just said, hey, this is always going to happen to us, boy, that is such a defeatist attitude,

and that's not the attitude the american lick want to hear out of their -- public want to hear out of their leader. yes, this is going to be a bit of a long-term problem, but we have to get others involved and namely the arab world, the muslim -- the greater muslim world who wants to see these guys beaten as well. stuart: you were in charge of the defense intelligence department, i believe. you were the guy, you were there -- >> the defense intelligence agency, that's right. stuart: so when that cash, $400 million, was transferred to iran and simultaneously the hostages were released, was that the payment of ransom or not? >> yeah. so think about this. $400 million given to the leading state sponsor of terrorism, and we were their, we are their number one targets. and we gave them, i mean, we had the judgment, the poor decision making to -- just look how messy this whole situation is. regardless of whatever is the

truth, and we'll never know it, the perception is so ugly for us in america to think that, oh, my god, is our government this incompetent, and do we have -- are we common sating this bad of judgment to have something like this happen? i mean, there's so many bad things on this particular transfer of all this cash. and doing it in other currencies too, stuart, which you know a lot of, a lot about, i mean, it just smells really bad. stuart: it sure does. general, thank you as always. we appreciate you being with us. general flip. >> thanks, stuart. stuart: a different subject but one that's been very much in the news, and it's in the news again. honor killing. there is another honor killing in pakistan. a british pack scanny woman killed while visiting family in pakistan. now, i asked the former prime minister of pakistan about this in our last hour. watch this. a thousand a year in pakistan, how many of the killers are brought to justice? >> yeah.

i'm sure the authorities would know how many are -- stuart: it's not many, is it? >> the system goes after all of them. i know that because the law provides for that. the constitution provides for that. stuart: all right. i want to bring in the american islamic forum for democracy president. you heard my interview with the former prime minister of pack stand. we were talking -- pakistan. we were talking honor killings. he says it's against the constitution, everything's going to go before the judicial process, and you say what? >> i say thank you, stuart, for having him on, and thank you for asking those questions. many of us have been trying to ask the pakistanny government why they turn a blind eye. and you can see from his nonchalant attitude that it's, oh, this is rule of law, these are criminals. this is the islamic republic of pakistan. this is a government that used sharia to treat women as second-class citizens. so you could see and demonstrate his dodging, his lack of attention, his complete denial.

and this is why there's an epidemic of honor killings in pakistan. they ignore it. the social media star that was killed last week that you and i spoke about last week, the imam that basically she embarrassed and said gave the eulogy at her funeral. i mean, talk about bizarre, sick society. they need to fix that, and the criminals get impunity. and he denied it, but the bottom line is they need to have a convening of imams and clerics to end the laws that contribute to that. stuart: just to be clear. an honor killing -- let me see if i can define it. an honor killing is the killing of a woman who is thought thought to have brought dishonor in some way on her family. and a family member does the killing. that's what we call honor killing. and i believe there are 1,000 a year honor killings in pakistan and two a month in america. now, that's the shocking statistic. >> it's the tip of the iceberg too. those are the ones that we know.

and below the honor killings is a much larger pathology of honor abuse, honor violence, domestic destruction of women who don't have rights to property. this is the problem that people like that that prime minister ignore and are continuing to societies that are still in the stone ages and do not treat women as equals. until they start to engage the clerics and demand that the imams speak out that it's not only dishonorable, they need to fix and modernize the laws that are in the 12th century. stuart: we appreciate you being on the program, openly and honestly discussing a difficult subject. thank you, sir. >> anytime. thanks, stuart. stuart: to the markets. we're up this friday morning, nice gain up 153 points. most of the dow 30 stocks are up. wild weather in new orleans, a tornado touching down in the in the city. two people taken to the hospital, minor injuries, but look at that video. that is a funnel cloud, anticipate it?

sturm ruger weighing in on politics, urging shareholders and customers to vote for trump in november. they say hillary's campaigning against the second amendment, the stock is up $1.24. trump falling way behind clinton in the conventional polls. we have the numbers for you next. if you're taking multiple medications, does your mouth often feel dry? a dry mouth can be a side effect of many medications. but it can also lead to tooth decay and bad breath. that's why there's biotene, available as an oral rinse, toothpaste, spray or gel. biotene can provide soothing relief and it helps keep your mouth healthy too. remember, while your medication is doing you good, a dry mouth isn't.

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stuart: bristol-myers' lung cancer drug failed in late stage study, that stock's really big, 16%, however, the failure of that drug may benefit merck's rival drug, and merck's stock is up 6%. that's the drug business for you. hundt getting major donations from some of the country's well known billionaires. how much and from whom? >> $42.5 million. okay, meg whitman for one, which we know she was a prominent republican leader.

she's worth $2.2 billion, by the way, according to "forbes." stuart: and she's giving a ton of money to hillary. >> she is, indeed. george soros to, warren buffett, tom story, j.b -- [inaudible] who's the heir of the hyatt hotel chain. we've got slimfast founder, daniel abram, these are all very rich people donating an awful lot of money to hillary clinton. stuart: yeah. because hillary clinton does not tax wealth, she would tax income, and there's a huge difference. >> right. huge difference. stuart: speaking of which, there is a huge difference in the polls. it's not going donald trump's way. some very bad news for him. "wall street journal" national poll, clinton 47, trump 38. and look at this, four key battleground states, clinton leads bigtime in all of them. ed rollins is here, trump supporter. >> thank you. stuart: he's running out of time, is it too late? >> it's getting late.

he thought he didn't have to run a conventional campaign, he could go on fox and cnn and what have you and do what he did in the primary. that doesn't work in a general election, and she now has the money and organizational advantage. there are 12 states that are competitive, he's leading in all of hem -- she's leading in all of them. all of them. and there's three or four that are our states, states like arizona and missouri, she's now competitive. she's now ahead in georgia. georgia's one of our states. so you've got a big task to catch up here. he's got to regroup. by labor day he has to get money, he has to get a campaign structure built and start getting on television. stuart: that sounds like he's starting from scratch. >> well, he is, and he better cut out all the names and at stuff -- she's still a vulnerable incumbent because of the honesty issues, but she's beating him with white voters, killing him with women, beating with men now. he's getting zero and one percent in polls among african-american supporters and

among mexican supporters, record low coming in. so he has to basically rethink how he's going to run a campaign and get into it. she still has very high negatives, as he does, so there's still issues you can make, but it's going to take a real regrouping, and he's not quite there yet. stuart: this is nothing the republican party can do. >> no. the republican party is now on cusp of basically saying let's abandon him two weeks after he's the nominee -- i've never seen this in my be 50 years of game -- go save the senate and the house. stuart: they're close to that, aren't they? >> very close to that. and big money people, the billionaires, they're now saying aisle not giving him a penny, let's go get the senate. stuart: he did raise $82 million, but that was largely small donors. >> he doesn't get much from the big donors. you know, i'm running a super pac so i, obviously, know what the the big donors are going. they're not enthused about him, and he's got to go say there's two or three super pacs out

there, go give big chunks of money, it's the only chance he has at point in time. stuart: i get the feeling the republican party is absolutely exasperated. everybody says to me. >> two weeks ago last night he gave this good speech, he accepted the nomination, and every single day since he's been attacking republicans. he started the next day attacking cruz, kasich in his home state. he basically has been having this stupid fight with ryan all week long. he needs to forget republicans. he's the leader of our team. he now needs to focus on her, focus on obama and make the premise if you want four more years of obama, then vote for her. you want change, i'm the change agent. stuart: i can tell you're exasperated. >> i am. [laughter] stuart: it's obvious. >> well, you know, there's so much at stake here, and a good campaign could win. a good campaign could win. stuart: better get out there and run it. >> i'm going to stick right here with you. [laughter] stuart: ed rollins, everyone. thank you very much, sir. where's the price of oil

right mow? $41.45, and the dow's up 155. what a day. a house flat out exploded in connecticut. four children under the age of 16 taken to the hospital, serious injuries. investigators are trying to figure out -- >> gas explosion. stuart: that's what is expected to be the result there. okay. high-tech car thefts in houston, texas. did i just say hooston on the airsome. >> you did. stuart: a couple of hackers arrested for stealing more than 30 jeeps. they hacked into the electronics and drove away. >> wow. stuart: details in a moment. if you have medicare

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call that's liberty stands with you™. liberty mutual insurance. stuart: rack space, they're a company that works in the cloud. you know that big server in the sky? they're nearing a deal to go private, and investors like that. the thing is up 11%. hackers stole jeeps and dodge vehicles, and they used a laptop. i want to though how they did this, and adam shapiro is going to explain. they drove away? >> reporter: that's it in a nutshell. you can download the software that you need, you can pay for the mechanical software, $1650 roughly, or you can use spyware which you get illegally, you download that.

once you've broken into the car, it's just a matter of minutes. the houston police busted these two men who were going around stealing jeep vehicles as well as dodge vehicles, the dodge pickup trucks. they would use their laptop. within a few minutes, they were able to compromise the software, start the vehicle and be drive off. these vehicles were being sent to mexico. i've reached out to homeland security, because department of homeland security helps houston stop this. they notified them in july through customs enforcement about the vehicles going to mexico. they set up this sting in areas where these cars were mostly being stolen, and they caught the two men. stuart: real fast question. you're a technical kind of guy. if we asked you to, could you do it? >> reporter: no, i could not do it. fiat chrysler recalled 1.4 million vehicles last year, and they put out a statement, look, this is an ongoing investigation, we try to keep our vehicles protected -- stuart: you couldn't do it. >> i could not do it, but if you've got the right software and you know how to hook up to

the car, you're in. stuart: that's a $30,000 vehicle. adam, good stuff. now we've got antonio sabato jr., actor, he says he's being blacklisted by hollywood directors. why? because he gave a speech at the republican convention last month. >> yeah, so he basically gave a speech saying, you know, i'm an immigrant, i immigrated to the united states 11 years ago, and he's saying immigrants should follow the rules. at the convention he gave a speech that donald trump is about unity, donald trump is about following the rules, but since he made that, he's being attacked on social media, and he's saying directors won't hire him, liberal hollywood is blacklisting him. stuart: everybody's going to be attacked on social media, but the idea you should not be getting jobs because you appeared at the rnc, that's out of bounds in my opinion. >> yeah. stuart: all right. check a stock for you, here we go. kraft heinz, they make ketchup and a lot of other things.

the ceo says removing artificial coloring from mac and cheese helped gain customers, the stock is up nearly 5%. president obama likely to hit his goal of admitting 10,000 syrian ref due gees by the -- refugees by the end of september. 7,900 admitted so far, another couple thousand still to come. the vast majority are sunni muslims, very -- just a handful of christians. a new report says hillary's economic plan raise taxes $1.3 trillion in the next ten years. maybe she didn't misspeak when she said this: >> i'm telling you right now, we're going to write fairer rules for the middle class, and we are going to raise taxes on the middle class! [cheers and applause]

stuart: i got to say a solid gain. the dow up nearly 160, the same story with tech stocks. all of them up. all of them. sharply higher again today at as the dow goes straight up. >> we have new details on the tax plan allegedly it raises taxes $1.3 trillion, that is

over 10 years. now listen to what she said about taxes this week. >> trump wants to cut taxes for the super rich. well we're not going there, my friends. i'm telling you right now, we're going to write fairer rules for the middle class, and we're going to raise taxes on the middle class. stuart: that was clear, we're going to raise taxes on the middle class, she did not retreat from that, she did not correct herself. i will aus -- always have a fight with you, i am going to try to calm down, keep my bullpebp -- blood pressure down today. >> me too. stuart: he said we're going to raise taxes on the middle class. bernie sanders said that earlier.

going to raise taxes on the middle class, how do you feel about that. >> well, it is obvious she meant to say i'm not going to raise taxes, we weren't going to raise taxes. you are right she did say we are. she has not change her tax policy, the tax plan only involves the top 1%. she has been clear about that, there has been no policy change that was the dropping off of a syllable. stuart: okay. not jumping in on you. i'm going to let have you your say, okay? so what is her tax plan for the top 1%. who pay what is it? 38% of all income taxes. what would she did with top 1%. >> top 1% they would see there are taxes go up in terms of higher capital gains rate, she has not specified yet. and inheritance tax that would go up, restored to pregeorge w. bush cuts, she wants to

raise the rate above funds earned over about $400,000. and in addition she wants to raise close corporate loopholes, she is talking about an exit tax for those who try to investor seas, and avoid their tax burden in u.s. stuart: now, conventional economics, says, you raise taxes at a time when the economy is struggling, and you make the economy worse. that is a position that i hold. i take it you disagree? >> well, it depends on who you are taxes, i would say the case with middle class or lower working class people. but the fact is, democrats, since world war ii, have seen about twice the growth that republicans have seen while in office. real wages go up urge democrats -- under democrats, these arfolks tacking wealthy more than republicans. i am confidence most middle class earnings in america will

earn -- stuart: what is it? >> a big hug. stuart: if you take a ton of money away from any group of people. and you force it, give it to the government, they just take it off you. that usually doesn't work well for the economy. it doesn't you know. you have an economy right now, which is spiraly down, you have 1% growth that is really bad. you know. do you really' to take money out of the private sector at a time like this? do you really want to do that? >> absolutely. it is not taking it out of private sector, hillary clinton has adopted one of bernie sanders' proposals to raise minimum wage to $15 an hour. in the cities that have adopted this, we have seen it has not led to any or a small

increase in prices it has not affected employment rates. but it has put a lot of money in people's pockets, so they can purchase more, it a win, win if you tax people at the top. to redistribute that wealth, that nonmerremerit orous. >> really you think? i think i don't care how much money you make, if you take more than half of my income in income taxes that is imor more -- immoral -- that is what i say. >> i respond a lot of folks are making money off their money just investing it. stuart: you just hate that, hate that. >> the people who are working

hardest, the people who are working hardest are janitors with two or three jobs. i would like to see a system of merit in place, where amount of work you put in. stuart: what a shame we're out of time, pay i point out, i am 68 years old, i work 12 hours a day, i often wor workweeks, i rarely get a break, and i pay 60% of my income in taxes. >> that is your actual rate. stuart: that is. >> you are not hiding wages. stuart: hiding it? you believe it is moral, a guy like me, 68 years of age, and 12 grand charge, tha grandchildren. >> you are fine with that. >> i find it impossible to

believe. wealthy don't pay 60% of taxes. stuart: you will never understand there is a huge income between income and wealth, that is why so many of your billion ai air friends, they are not going to tax wealth, they only fa tax income people like me. all that wealth, like your mom and dad, the wealth is not taxed it is income. that is why you never understand why strivers like me, feel so passionate please about -- >> strivers. stuart: are you taking issue with that? are you saying. >> you are acting as though people in top 1% have not already gotten such a leg up economically from probably inheritance, a majority -- >> you are so wrong, you are so wrong.

you don't know what you are talking about. excuse me. >> i'm looking at data. stuart: i know what is going on. if you look at europe. and you look at wealthy people in europe. most of them, most of them have actually inherited it, just like you. in america if you look at very wealthy people, most of them have made it themselves, that is the difference. capitalism end of the lean socialism out of town, come to new york and i will show you my paycheck, you can have a look at it, you can see what striving is about. next up. >> ac act amazon with a delivery plane. painted with a logo in the air. watch out ups and fedex, the stock 7.67, big news from sports, yankee first baseman

mark teixeira very likely to announce his retirement this afternoon. and how about this, 141 islamic terror a attacks in the lest 30 days alone. more varney after this.

>> right now stocks soaring. eraceing our losses for the

week in dow jones industrial up 162. positive for the week, s&p 500, lifetime high today. up 17, and nasdaq, looking at a possible record close. here are names pushing s&p 500 to higher levels, financials and tech lead the way, merck and lincoln national, priceline, many analyst coming to raise target on priceline, and merck also a winner. wait watchers -- weight watchers to the down side though. and volkswagen stock up to .6 .

stuart: president obama wants to bring 10,000 syrian refugees into this country by the end of september, i think he has almost met that. >> he has just last month 2 430 brought in on this schedule he will hit 10,000 mark before the end of the year. almost all of these refugees are sunni muslims, just a handful of christian refugees are included. stuart: because in this

program, they take from certain refugee camps, but those camps are almost entirely muslim. because they persecuted the christians who are out of those camps. >> they said they picked most desperate most need for medical care and more vulnerable. >> from those camps. >> right. stuart: who is not desperate if you are not christian about okay. >> gary johnson is close to breaking into the debates. look at this fox poll. gary johnson has 12% in that poll, if he gets 15% in average of polls right before the debate. he is in the debates, coming in mark. he is close to that 15% number. if he gets into the debates, i think he changes the nature of

this election campaign, what say you? >> that is right. gary johnson could be the deciding factor. the big x-factor is how he will be that deciding factor, the libertarian candidate usually poll more votes from the republican, about a month or go so we saw in utah gary johnson polling 16%. it is possible that johnson could win utah, if he takes even one state off of the election or -- electoral college map for donald trump, that is the end for donald trump. stuart: i get impression that gary johnson is more anti-trump and pro-hillary, than straight in the middle. you have interviewed him, what is your opinion? >> that is right, as far as

his campaign rhetoric, like i said, he is very targeting disaffected democrats. he keeps saying he agrees with bernie sanders 75% of the time. libertarian is supposed to be opposite of socialism, but he thinks he has a better shot. and donald trump agrees, there has been a lot of speculation that one reasons why trump is dragging hisdebate schedule for fall because he wants gary johnson on stage. he feels if gary johnson gets a higher profile that will take some votes from hillary. stuart: give me the odds of gary johnson getting into the debate. >> that is tough. i would say about you know, 35%. >> okay. that is still a good chance, thank you, mark we appreciate you coming on today, we'll see you soon. >> okay.

stuart: new video today, of a man who went on a stabbing rampage in london, leaving an american woman dead. i believe this is the video of the take down, they tasered him, and under east, they say he is penalty ill. stuart: 141 islamic terror attacks in the past month. that is it. there were 1100 deaths with those 141 isis related terror attacks. look who is there, kay hopkins joining us from london, i would imagine that tention level in london is sky-high given what is happened. tell us. >> it is shocking, biggest story is that outside of london, people are really frightened, my mum rang me this morning said becareful in london, there is a strange

disconnect between how london is reporting these, not related to terror. and then how the rest of the country is seeing them, saying this is terror. this attacker was a muslim, he was the from somalia. did read religious particular, his sister became very religious employee don't tend to believe when we're hearing. stuart: that is bad news katy hopkins, if people lose confidence in authorities, they are not being told the truth, that is not a good way of dealing with the situation, have you a somewhat similar situation here. authorities are very reluctant to say that was a terror attack. now, what is this i hear today about black lives matter demonstration in britain, stopping traffic? i do not know that black lives matter was active there? >> well you know they will do anything -- they love to protest these people, they

protest about anything, if it not fracking, i made a list they tick off each month, fracking or black lives matter, if not black lives matter it is brexit, then labor leader and which of leader, you -- whic you know next week it is renewable energy. this week at heathrow, stopping holiday makers accessing the wea airport, i am all in favor of a water cannon, they could do with a good wash anyway, someone needs to do something, i have threatened if they are not gone by tomorrow i am going out myself. stuart: have you ever thought of coming to america. >> you are offering, you are trying to get me out to scare you. you earlier against that female, she was ridiculous, you have every right to stand your ground, and if i do come, i want to work with her as

well. >> fantastic television. i love it. >> yes. stuart: katie, you can come see us any time us like. >> thank you very much. stuart: look at this. this is the royal bank of scotland. rbs, they have to put aside a ton of money to come up with lawyers, legal issues with that money going to lawyers down goes stock 7% lower. that is largely owned by british taxpayers. >> owned by taxpayers. stuart: good lord. >> what a mess. stuart: trouble ar angela merkel, 2/3 of germans, more than, are unhappy with her refugee policy. we told you, back in a moment. ♪

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say they would recommend their plan to a friend. remember, medicare doesn't cover everything. the rest is up to you. call now, request your free decision guide and start gathering the information you need to help you keep rolling with confidence. go long™. ♪ stuart: now it was a solid jobs report today. if you dig deep, the labor participation rate is close to all-time low, meaning morell i thinkable -- eligible employees are giving up, jeff flock is with us. in gary, indiana, i see a lot of boarded up businesses. reporter: a lot of people have given up here. this is gary. that was a prominent bank at one point.

can you see there? not a lot of people working in a lot of places here. looking at labor force participation rate it ticked up .1 of 1%. a lot of baby boomers like me that are retired los angeles. maybe i will soon, a lot people just given up on finding a job, in places like this. i leave you with four store fronts you can buy that reason able come town and invest. stuart: it is a sad story. a sad picture to be presented of a downtown area like that. i know you will be on show for the day. we'll see you on the network, more varney after this.

stuart: controversy in france

after a water park is going to host what they call a burkeini day, to be covered from chest to knees, causing a huge outcry among the french. the mayor of the town wants to block it. all of this in -- this is in marseilles, a huge muslim population there, they rented an entire swimming facility, weaponly. stuart: that i-- women only. stuart: that is a problem, they can use it on certain days. and rest of people say what is going on here. >> that is what is going on. stuart: pushing back on local muslim population because of the terror incident. >> of course, not far away in nice.

stuart: all right, friday, we're almost to end of show we have 10 seconds left, hand it over to connel. >> not yet. stuart: is it your birthday. >> yesterday. stuart: did ashley know that? >> i did, i got it wrong, my wife's birthday is today, i hope i didn't get that wrong. >> you should know that, not mine. stuart: good luck. >> jobs spark today. they have been talking about it sparked a rally in our stock market, dow up triple digits, more than 150, s&p 500 with a new lifetime high today, plit -- politically democrats love that but donald trump getting an economic push ready to go. polls tell us he needs to get something. i am connel mcshane feelin