again. sandra: one viewer when i tweeted out it's a major possibility, he responded l-o-l. i don't know if the market believes they'll do that. dagen, jon hilsenrath and kirsten, thank you for joining us. that does it for "mornings with maria". stuart varney are you there. >> trump stays on message and sticks with the script. looks like he's making a big effort again to rein himself in. good morning, everyone. a record high for stock and a tran attack in europe and another big hit. we'll start with politics. trump plows on. he's taking on the issues and using the prompter and taking a presidential approach. and democrat rules brings

failing schools and trump goes after it today. another record for stocks, 18,636, that's the all-time closing high. if you've got a pension plan, 401(k), ira, inheritance any money in stocks, you're doing remarkably well. good news, olympians are running away with medals and bad news, they get money for winning and it's taxable. "varney & company" is about to begin. yes, it is. ♪ all right. look at your money. this is how we're going to open up on wall street about a half hour from now. down for most of the indicators, but that's not a big seller. remember the dow did close at its umpteenth record high of

the year. oil, 45, $46 a barrel. they're talking production freeze to limit supply. oil up, print money and stocks go up. that's the general rule. and we're sitting on a string of records. i don't know how many people actually saw it coming, it's a surprise to most people. >> it's a surprise that corporate earnings aren't that exciting and i have to say that the economy is not booming and stocks are expensive. why is this market going up? are you going to tell us, peter? >> the bond market, first of all. yields are the seller there and the average yield on s&p is 2.1%. there's great stuff in the tech market. they're earning the old-fashioned way and they're beating their expectations. >> i'm interested in that. the companies where the stock

has gone to the moon. that will hold off, not a big selloff there. >> they're trying to compare it to the 2000-- the 2000-- . this is different microsoft is earning money, netflix is beating expectations, amazon is beating expectations and a different set of affairs and i think these are strong bellwether companies. stuart: stay with us, we want your analysis of the opening bell. stay there, please. thanks, peter. now, take a look at apple in particular. big hillary fan, warren buffett, he's buying more apple stock. we're, of course, three weeks away from the expected release of the iphone 7 coming up. what's the details on the buffett-- >> berkshire hathaway boosting the stake in apple 55%, from 9.81 million shares all the way up to 15 1/4 million shares, carl icahn, george soros, are getting out, concerned about a

lack of growth for the stock, but warren buffett, look, he loves slow growth companies, that's his kind of thing, a big pile of cash and nice dividend payout. as the others are running away screaming, he likes to buy liz: he bought when it's headed to 90. stuart: i've got it as a low 90, 96, 97 and 109, a 10, 12% gain. >> warren buffett, it's classic. it's a firm company. he's got 50 billion every year of cash flow and lots of way to reward investors. they're sitting on 250 billion in cash more or less, sounds like something-- apple, call it varney, people would be buying it. stuart: do you think? [laughter] >> 13 times p.e., microsoft is 20, it's cheap. stuart: want to get to trump. can we have a week where we don't say why did he say that,

can we have a week? lee carter, you've got the focus study and the last two weeks, trump lost the independents. >> he did. stuart: can he get them back by staying on message on prompter? >> i think he can. and i think, you know, there are so many facts and statistics going around how he's never had a candidate that's been doing this poorly, this far before the election and win, but i think 2016 is a year anything can happen. so, i think what we're seeing is independents are saying i'd rather vote for no one than vote for either one of these. the most unlikable and untrustworthy candidates in the history of polling, more or less. stuart: are you saying that the independents just pulled back? >> they're pulling back. stuart: they've pulled away from hillary, pulled away from donald trump. at the moment they're home. >> about 20% of votes are going to jill stein or gary johnson right now. stuart: that's a lot. >> at the end of the day, i don't think we are going to see those numbers.

people are going to decide i'm not going to throw away my vote if i go to the polls. i think we'll see a lot stay home, but donald trump can bring them back because people are looking for something different, looking for answers, looking to feel safe, looking for an economy growth, looking for jobs and if he's able to convince them he is that guy and keep discipline now, he has to-- >> just stay on it. >> stay on it. if he wants to take down mainstream media, wants to take down hillary clinton and say all of these things, have your surrogate say it. have other people say it for you. he needs to rise above it. he needs to focus on making america great again and jobs, security. stuart: you've said that before. by the way, donald trump clearly laid out his foreign policy, here is the headline, extreme vetting, i mean, extreme vetting. a test for all immigrants. >> you should only admit those to the country those who share

our values and respect our people. in the cold war we had an ideological screening test. the time is overdue to develop a new screening test for the threats we face today. i call it extreme vetting. i call it extreme, extreme vetting. stuart: as i said, extreme vetting. joining us now, governor mike huckabee. governor, welcome to the program. >> thank you, stuart, great to be back. stuart: an ideological test was applied to me when i became an american citizen and to ashley webster my colleague right here. ashley: no communist groups. stuart: are you a member of the communist party, have you ever been? i said no. ashley said-- well, i don't know what he said. [laughter] this is not new an ideological test is not new. i don't know what's wrong with it. >> no, and first of all, let me

say the fact that you and ashley got through shows just how open our borders really are. [laughter] now, let me take you back even further. let me go back further than the cold war. we like to talk about ellis island and how wonderful that people game here. have we forgotten the truth at ellis island, they were screened for disease and if they had communicable diseases and couldn't be cured they were sent back and two witnesses to testify they were of good moral character? what donald trump proposed yesterday was not extreme vetting, it was traditional, historical vetting that we used to have until we got stupid and started opening our borders and not caring who came and why they were coming. stuart: now, the criticism is how can you actually do that? people will lie about their connections. so there is an efficiency question attached to donald trump's suggestion as well.

how do you deal with that? >> we deal with it-- let me take you back to ellis island. if you couldn't find people who could verify who you were, didn't have a sponsor or people who could attest to your moral character, you got sent back, i mean, we did not have this open border where anyone and everyone who wanted to come here got to come. it was a privilege to come to america and immigrate here, it was not some divine right. i know it sounds harsh, but that's who we always were. we had immigrants who wanted to come and assimilate to this country and borrow a phrase, make america great. people who wanted to come out any understanding that they might want to come here and shoot a bunch of people in san bernardino. we had the good sense at one point in our history to say no thanks. stuart: governor, he always cut it short and you're one of the

most articulate guys. >> thank you, my pleasure. stuart: watch this photo finish, watch. watch the end there. that was the bohemian sprinter, whether she was diving or fell, i don't know, but she beat out the american runner. and that won her. nothing illegal for diving or stumbling across and she did. other action, simone biles favored to win five gold medals in gymnastics, she stumbled on the balance beam and her hands touched. and her teammate laura hernandez won the silver and ms. biles won the bronze. she's got another shot at the gold later today. from las vegas, the tower of

the riviera, watch this, a huge crowd of people holding up their phones and they closed it in may last year. it was the back drop for several movies, "oceans 11 is", diamonds are forever. and don't say that. aetna, the stock more than tripled and now aetna is pulling out of states. too many sick customers, too expensive they're out of obamacare. what does it mean for obamacare? slow decline. george soros doubling down on his bet against the stock market in america. we'll explain. and trump as a law and order candidate, a round table with officials in wisconsin. he'll be a few miles from riot-torn milwaukee and we will be back.

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. stuart: home depot is going to be up-- well, it will be flat. the futures for home depot is brighter, they say. and dick's sporting goods, the future is brighter. that stock will be up significant significantly. donald trump will go to milwaukee after a officn officet a suspect who reportedly was pointing a gun. and trump appears to be doing the opposite, joining us now is the chairperson of the tea party forward. nigel, as always, welcome to the program. >> good morning, stuart. stuart: president obama hosts black lives matter at the white house and singles them out for praise and donald trump goes to wisconsin and meets with law

enforcement officials presumably to back them up, law and order. they're coming at this from opposite directions, it seems. what do you say? >> well, he's not only meeting with law enforcement and heroes like david clark, but he's having a down hall with the people of the community, law enforcement, rank and file citizens of milwaukee in wisconsin generally and i think it's a brilliant move. stuart, i think on your show last week, i actually said that donald trump needs to take his message of economic revitalization into inner cities across this country, not just milwaukee, but cleveland, cincinnati, philadelphia, that if he's going to make a miraculous comeback in this election, actually contrary to conventional wisdom, i think it's going to come in those cities where there's opportunity. one of the things-- >> hold on a second, nigel. hold on a second. >> yeah, go ahead. stuart: i've got to straighten this out.

>> yeah. stuart: he's doing a town hall with local community people. does that mean there's an opportunity here for people in the black community in milwaukee to confront donald trump about what's been going on there and how they feel about it? can we expect a confrontation today? >> i don't think so. i think trump's security team has been extraordinarily careful about preventing that from happening. i think it's going to be a cross-section, not just blacks, but blacks, latinos, asians, whites, in this town hall and i think it's an extraordinary opportunity when in this tragedy and i say it's a tragedy because it's tragic whenever a life is loss and obviously we have to investigate and find out exactly what happened with this black officer that apparently, apparently was defending himself from this suspect who had a gun, but his sister, interestingly enough and obviously, she is emotionally wrought and very frustrated,

but she said a very interesting thing during the riot, she said don't bring that stuff here. she used a little more profane word, she said don't bring that stuff here and we need our we-- we need our small businesses, we need economic activity. yesterday on the sister network i saw a young man saying we need entrepreneurship, we need business opportunity, we need capital investment. these are really pro capitalists and not pro capitalists from a crony capitalist or, you know, a printing money for the federal reserve, which protects the investor class and upper 1%, but a bottom up capitalism that promotes entrepreneurship, that promotes economic opportunity and the sad thing that we're going to learn from the obama years when historians look at this era, is that economically, this has been an extraordinary

era for the top 1%, but for those small and medium sized businesses that want to climb the economic ladder and get into the game, it's been a disaster, more small businesses have closed during this era. stuart: i'm out of time, nigel. >> that's not a part of the american success story. that's contrary to the american dream. stuart: nigel, i'm out of time. thank you for joining us. see you soon. thank you. a big surprise at a zoo in vienna. a giant panda gives birth last week. zookeepers thought originally thought she gave birth to one cub, but she gave birth to twins. why did they miss it, the newborn pandas are tiny about four inches long. >> oh. >> they grow fast. [laughter] a town banning so-called burkini's, full body swimsuits that women wear. banned.

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we will have a fractional loss on stocks at the opening bell. apple, warren buffett increasing his stake. we'll get the apple 7. and flat at 109. joe biden at scranton hugged hillary for 17 straight seconds, we timed it, but that didn't stop them from staying on message. ashley: let her go, joe. stuart: attacking trump's temperament, almost, 12, 13, 14, it's almost over and then you'll see them attacking temperament, roll tape. >> i said in philadelphia, a man that you can bait with a tweet is not a man you can trust with nuclear weapons. >> there's a guy that follows me right back here, has the nuclear codes, so, god forbid anything happens the president and i had to make a decision, the codes are with me. he is not qualified to know the code. stuart: now, let's suppose that

trump said that guy over there has the nuclear codes. can you imagine what they would say. >> terrified. stuart: a nuclear war. >> it's threatening. ashley: and good to know where the codes are liz: who is the biden aide who has the codes? >> that's a good question. i know that the president is followed with the man they call the football. ashley: trump said that, the headlines would have been trump threatens nuclear war. stuart: but with joe biden it's kind of cute, kind of funny. [laughter] take a look at volkswagen, please. the department of justice is launching a criminal, that's the important word, criminal investigation into the emissions cheating scandal. more on that in a moment. another big day for your money. here it is, the dow closed yesterday another all-time high. will you look at that, 18,636. if you've got your 401(k), open it up, have a look, you should be smiling. next question, is it time to sell?

we'll deal with that and the opening bell, which is moments away. ♪

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>> tuesday morning, 30 seconds we will be off and running. please remember that yesterday we reached the umpteenth record

high, 18, 636, that was the closing high. we'll probably open lower this morning, about ten seconds from now. we have the price of oil up a little, close to $46 a barrel. that usually puts something of a floor underneath the stock market. let's see how we go. we're now one, two, three, open for business, off we go. where are we in the early going? i'll tell you now we're down, it's not a huge selloff by any means. it's not tumbling down. we're off about 30 points with a large number of dow stocks in the red. it's a pretty broad-based pullback, but not a dramatic pullback. how about the s&p 500? where is that in percentage terms? about the same as the dow, down about 1/4%. how about the nasdaq is this technology heavy, of course. it's down about the same amount about 1/4%. so individual stocks are moving from the get-go this morning. apple has gone to 109.80. incs

stake in apple. home depot raises the futures for the future. and volkswagen reportedly in talks with justice to settle criminal charges. none of the less, it's down below $30 a share. aetna, losing money, dropping out of some obamacare exchanges. dead flat this morning. big tech names, we check them every time. facebook down a fraction 123. how about alphabet. had been at record highs pulling back two bucks today, 803. how about microsoft, all-time highs very close pulling back to $57 a share. amazon, where is it? 766, very close to the all-time high. they're all at or near record levels. so, we'll be asking, should we sell them? should we sell the whole market? here is ashley webster, liz,

shah galani. >> i'm going around the block here, should we start selling now? shah galani. >> no, it's into the time to sell, it's cautious, and hedges in terms of your positions. the market has too much momentum going higher and no, selling out right now, no. getting defensive, absolutely. >> all right, todd for you on stocks. all-time high yesterday. >> if you're a trading sell with both hands, if you're a hedger, hedge in and close your eyes. stuart: what's that mean. ashley: hedge in there. >> hedge your position. as an investor you should not be getting out of the market. hold onto it and find a way to protect. if you're a trader, you want to

sell them with both of our hands. stuart: most of our viewers are not hedgers, they buy and sell. >> i would look at the volatility index, that's a look at the fear factor. last year, a high of 153 and to a low of 11, it's a 12 today. the market is very calm. we're looking at a very calm situation that's bearing watching. stuart: you would suggest, no, don't sell across the board. don't do that, don't get nervous, don't react to the background noise here? >> when you hear bubble and talks like that, look at the earnings. the earnings are growing, the companies are doing what they said they're going to do. when companies do that, you stay with it as an investment. stuart: i'm going to get to the big four or five companies, i think that's a separate case. right now the dow industrials are down 61 points, that's a pullback. quite a drop there, not huge by any means, but this guy on the screen is a billionaire, a lefty, george soros and by the way, he's doubling down his

bearish bet on stocks across the board. he thinks the stocks are going down liz: he's nearly doubling his beari isish bet. he's joining mega bears who moved to short the s&p and other stocks as well. so, what is he talking about? he's going negative on the global economic picture, it's not just china, but he says brexit rocked the markets. and he's looking the bond bubble and looking at a crash similar to 2007. stuart: should investors take their cue from billionaire traders? >> absolutely not. they're in a totally different business. and i would ask him how is the bearish business. he's doubling down because he wants to be right and doubling to be right. if you're out of the market in the last 50 years fyou're out on the wrong 30 days, you lose

your investments. don't worry about people on the sidelines. stuart: that brings me to this group of stocks that we cover all the time. the huge big name technology companies which have done so well and atacted so much money. alphabet, otherwise known as google, all of these are close to their all-time record highs, so, i'll repeat the question. if they're this high, is it time to hell any of them? i'll go around the black. shah galani, first of all. >> no, it's not time to sell them. all we spoke of are big investors and traders. when the market is popping and turning, they'll place negative bets. if you're an average investor and you own the stocks they've been doing well for you. the pursuant to notice thing to do is put in stops, maybe a

level of discomfort and then you get out when you can. there's no timing when to get out. this bull market could continue and investors need to stay with it as long as it's going forward. >> earlier we asked you the question, peter, you don't sell those. >> the s&p, the biggest slice is the tech sector, the defining one for the market. maybe you what do, you do covered calls to protect yourself, but i would not be selling here. where else are you going to put your money. stuart: i agree with you. where else do you put your money liz: it's so different from '99 when you did have other options, but with the central banks in there, it means it's a melt up. stuart: tom, i hear you in the background, where else do you put your money? >> maybe your buy commodities, you buy gold. stuart: what?

>> you buy the tlt's. you have to go somewhere that's a depressed area and we've been watching the commodity pace getting smashed down and those are probably pretty good areas. you have to liquidate these in high prices except for microsoft, microsoft is different animal than others. it's a more stable company than the amazons and facebook, they're much more volatile and the average investor will end up if they hold will end up selling out as a much lower price. it's better to take the money sometimes and look for a better investment. stuart: fast, peter, where do we go? >> i think regional banks, acquiring one a week. if interest rates go up, they're going to make more money. >> that's interesting. >> how about the price of oil? it was way up yesterday. there's hope for a production freeze. today it's unchanged at the $45 level. todd, come back in again, please. what chance of a real freeze in production?

>> i think there's no chance that it will effect our business. i think you sell oil here, we had a great bounce off the 40, here 46, 47 is a great chance to take some profit. we'll stay most likely between 40 and 50 for an extended period of time no matter what owe poke does. they have no effect on automatic. we've got 100 years supply of our own liz: iran will probably not join, and remember in april will went down by 10%. >> i think this is the lower, 18, 564. always remember that, 18,565. gopro stock higher. there's some buzz-- well, it was higher. i guess the buzz drifted away. there's supposed to be buzz about new products, where is that gone? >> it's down 15.

and advanced auto parts, $4 lower. tjx, parents of marshall's and tj maxx, mshth it down. dick's sporting good is at a 52-week high with a 7 1/2% gain. the worse ever loss at the mining company bhp billiton. this is all about the drop in commodities prices, surely? >> it is, but it's an investment in 2011, the full year report and the earnings, revenue was down, 31 billion. took a write down, on the u.s. and gas investments. here is why i mentioned in about investors when the profits were 20 bill, not a lost, but 20 billion, went around buying gas here in north america and that's been a problem for them because that

was the peek of the market and of course, it's been selling off-- that's the peak of the market. and stuart, it's a bitter vegimite sandwich to swallow. stuart: look at home depot. >> it's something of a stock that's immune from what we call the retail ice age, on-line selling, for example. shah, would you buy home depot at 136? >> it's pricey here. i do like the stock, if you own it hold onto it. this is the kind of stock i'd put a stop underneath and be comfortable with. would i buy at this level? no, it's a little toppy for me. i'd look for decent move on it. as an investment i'd stick with it, put a stop on it and be happy. >> look at aetna losing money with barack obama care and

dropping out of more markets. >> aetna is pulling out of 11 states right now and it's lost 430 million and 200 million in the second quarter alone. and shows united pulling back, humana, blue cross/blue shield pulling out so this is a big blow. by the way, taxpayers are subsidizing these exchanges, too, and 32 billion dollars a year. if that wasn't in there, these things would crash. ashley: united health care, by the way, to e-mack's point, they expect to lose $1 billion on obamacare policies last year and this year. $1 billion in losses. stuart: did you say tapes put in 32 billion. >> annually, yes, that's what the cbo is projecting. according to the u.s. government. the u.s. taxpayers didn't back these up they would have crashed. stuart: and hillary wants to expand it? >> here, aetna wants to merge with humana and they need a scale to--

>> they will not let them. they're in mediation, they're not getting it from anybody in dc. stuart: good coverage, all of you, thanks a lot. good coverage as i say on this tuesday morning. it's retreating from yesterday's all-time high. donald trump lays out his plan to defeat radical islam. and hillary clinton, the fbi notes will be handed over to congress this week. is her campaign worried about another e-mail leak? another seaside town in france bans the burkini, a full body style suit. find out why. ♪

>> all right. let's get through this quickly. the dow industrial is down 70 points as we speak and we've got this news, china has just launched the world's first quantum communications satellite into orbit. the world's first. ashley: using quantum physics for communication. what's important about that? it's basically unhackable. many, including the u.s., are hot on this technology. but the chinese are first. an orbits once every 90 minutes and ironically, the chinese behind much of the hacking

going on, it makes theirs unhackable. stuart: big deal? >> yes, if you're engaged in cyber warfare, you have to have this capability and china has stolen the marks. we have technology and people are working on it. it's not a trivial matter. there's reason they didn't announce until the last minute. it's big news. stuart: thank you, peter. i want more details on the burkini ban in france. i'm sorry, i was going to that. going to this. donald trump detailing his foreign policy plans, including extreme vetting of anyone trying to enter the u.s. zuhdi jasser is with us from the islam ic core democracy. will muslims support that plan, zuhdi? >> well, i think, stuart, any muslim who is anti-islamist who believes in the primacy of western principles, of universal human rights are for it. a lot of those who are

islamists, for in iran, islamist movements are going to hate it. this is the way to protect american security. we've been calling for this for years, it's not about banning muslims, it's about banning anybody who doesn't share our ideals. and our muslim reform movement i've talked to you many times, has a two page declaration that states we sand stand for equality of men and women and could anyone lie? they could lie on any questionnairement it's not just muslims, are they for russian principles, i mean, russia today launched missiles from iran into syria. so, bottom line, it's not just about muslims, it's those who share western principles of universal human rights. stuart: it surely would be a tiny sliver of america's muslim population that would accept

this kind of test, a tiny sliver? >> well, it's not a test, it's about accepting the principles of the country that wants to give you refuge and give you safe haven, so i think the majority of the silent muslim t apologetic leadership that lead with victimization that leads with a sense of what they call islamophobia, iran, et cetera, they're going to hate it. they're the problem. they're the reason we are where we are, part of the radicalization problem. stuart: i don't know of any muslim who is for donald trump and will vote for him. i don't know any outside of you and your group, i don't know any. >> the trump candidacy is one thing, the vision of a candidate, the doctrine that they would present in protecting muslims as part of

tough love for being part of america, i'd like to see more of that. we don't take positions in campaigns, but unfortunately some of the campaign rhett ric ricks-- and a speech at a republican convention, unfortunately today at the politics, the left hijacked the idea so i think there's a lot of progress yet we have to make. stuart: thank you for joining us, we appreciate it. thanks so much, sir. >> anytime, thank you. stuart: check the dow, we're off 60 odd points and the dow 30 shows 27 of them in the red. scandal after scandal. the clintons survive. this week, the fbi hands over hillary's interview notes to congress and there's talk of an october e-mail leak and a surprise. here is the question, does any of this matter? ...one of many pieces in my life. so when my asthma symptoms kept coming back on my long-term control medicine. i talked to my doctor and found a missing piece in my asthma treatment with breo.

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>> oh, politics, more trouble for hillary. fears of yet more leaks for the dnc e-mail hack and now congress will see the notes from hillary's fbi interview. doug schoen former pollster is with us. i don't believe any of this makes any difference whatsoever. it goes completely over the head of most voters. >> i couldn't agree more, stuart. the focus has been on donald

trump and his gaffes. because the secretary of state was not indicted by the fbi and the justice department in her e-mail scandal of her own, all of this to me is noise that makes no real difference. stuart: not just to you. i think to most voters. >> i think that's right, stuart. stuart: same old-same old, another scandal, we've heard it before. it's technical in detail in what she's supposed to have done and very confusing. i don't think it matters. >> i think that's right. stuart: the campaign is, don't focus on me, focus on how bad he is. and he's giving them plenty of ammunition. >> all true. if you look at his gaffes last week, obama invented isis, the second amendment people might well want to go after someone who causes problems on the bench. this is what's been the focus. the clintons are also running millions and millions of ads against donald trump and he's

not replying. stuart: do you think it would make a difference if hillary were indictment or if the fbi comes out and says, that flat-out was a lie. >> i think that jim comey was careful to say there weren't any lies, using that word. he said she was extremely careless. he said her assertions didn't necessarily match the facts, but didn't use the l-word. these are going to be raw notes so it's unlikely that raw notes will use that word lie in the way that you're suggesting and i don't think she's going to be indicted. stuart: you're not a big hillary supporter and certainly not a trump supporter, but at this point do you see any way that trump can come back? >> look, i do see a way trump can come back, very difficult, almost impossible. stuart: how does he do it? >> what he's got to do is make the case that she has failed, that the president has failed that we need a new direction on the economy, economic growth and the war on terror, but so

far, he's mired in gaffe after gaffe and yesterday's foreign policy speech was stepped on by the revelations about the alleged secret account paying paul manafort. stuart: and most voters never heard about that and don't care about the campaign official maybe having trouble. >> well, it was on the front page of the new york times. the media was preoccupied with it. my point is there was not undivided attention for donald trump. stuart: i know you're still a democrat. >> i am and i'm for hillary. stuart: okay. i didn't know that. >> yeah, i'm for her. stuart: i didn't know that, that silenced me briefly. >> anything that silences stuart is a rare event. stuart: it's a terrible thing. schoen, you're all right. you can come back. >> thank you, appreciate it. stuart: coming back on the market, too. we were up 70-odd points and now we're down 50. riots in milwaukee, donald trump heads there right into it today. he's promising to be the law and order candidate.

will he stay on message? the trump campaign joins us at the top of the hour. :

. stuart: milwaukee was relatively quiet last night. it's about time. the riots over the weekend brought ruin to the black community there. the video shown worldwide was an embarrassment to america. president obama was playing golf. he went to a $10,000 per plate fund-raiser last night. he said nothing about milwaukee, but he should have. earlier this year, he welcomed black lives matter to the white house. he singled out its leader for praise. he's a better community organizer than i was said the president of the united states. it was black lives matter that provoked attacks on police officers, and yet with parts of milwaukee in flames, the president said nothing. this is an opportunity for donald trump. he's in wisconsin today. he's addressing a law enforcement forum. law and order will surely be the topic.

if ever there was a time for a change candidate, this is it. for two generations our cities have been showered with programs and ruined by leftist policies. hillary clinton would continue the blitz of programs. they failed in the past. why should they be any more successful in the future? at least it's time for an honest and open debate. trump could kickstart that today. the second hour of "varney & co." is about to begin. yeah, we're coming back a little. record high yesterday, down did 50 points. better off than ten minutes ago when we were down 75. look at home depot. it's raised outlook, the future looks a bit brighter. the home improvement business is strong, the stock is beginning to move up.

dicks sporting goods hits a new high. it raised outlook as well. the future's going to be bright, it says, encouraging sign that will benefit from sports authority going out of business. that stock is up 8%. tjx, the home company of home goods and marshalls, t.j. maxx, i should say. apple is around 110. going up. warren buffett increases his stake in that company and the iphone 7 comes in early september. off we go, 110 on apple. oil moving up. $46 a barrel. that has helped the stock market mitigate its losses. let's get to politics. donald trump is in milwaukee today, addressing law enforcement. come on in, jeff dewit. jeff, you are a trump guy. you run his campaign in arizona, is that you? >> that's me. [ laughter ] >> just want to make sure. >> the same jeff dewit. stuart: are we going to have a

week where we say why did he say that? what was he thinking? is he going to stay on mess snaj. >> we've seen him on message right now. if you watched yesterday and today. it's going well. we have the message, just about the failed immigration policies of obama and what hillary is going to do. if you look at just syrian refugees and what she's proposing to do, 10,000 is going to turn into 55,000, when you add into it 85,000. unvetted syrian refugees in the first term. that's a study that could be total 650,000 syrian refugees at a cost to american taxpayers of $400 billion. keep in mind, that clinton keeps poking holes in what we say on our side what we're going to do, which is strong vetting and protect america, and trying to do it to distract from her policies which is going to cost taxpayers half a trillion dollars and put 650,000 unvetted people on our streets. stuart: you said it before, and

you're saying it again, yes, he can stay on message. >> well, he is. look, the media can take the little snapshots of phrases out and make the message look different. we talk about the bias media and what they do. they'll clip a sentence, won't sell the entire sentence. something you learn in politics, you have to watch how you say things, even when you say you quote someone else because they'll take out what you are quoting. the message very simply is we have better policies and donald trump has better policies than hillary clinton. stuart: today in wisconsin it will be a town hall forma. i know they will vet the people coming in, there is a possibility of a clash here to african-americans who live in the area and don't see things the same as donald trump and donald trump himself. you could have a clash right there? >> donald trump is the law and order candidate. for the people that don't want law and order brought, in i can see them upset at.

this hillary doesn't seem by her own practices of hiding e-mails and twisting facts to be a law and order president. >> it's jobs, that's it? >> that's it. it's the lack of income, lack of doing something productive. what does everybody want for our kids? a good education and solid job. hillary will do nothing different than obama who hasn't fixed the problem. it's become worse under his presidency. that is something where we need a businessman with a different approach to fix it. donald trump's policies will fix that. stuart: okay, do you think he will go straight at african-americans. address them directly and say i got this, this, this, and you don't want any more of that. will he say that? >> i can't predict what he's going to say but we should. absolutely what he proposes to do will help that community over any community.

it really will. stuart: they're going to jump all over that. if there's a confrontation between a black person and donald trump, that is a racial confrontation, that's what the media will be talking about? >> i don't see how it would be. he's here to help the african-american community a lot with every other inner city community because our policies will rebuild the jobs in those communities. stuart: you're from arizona. you often come to new york. are you heading up the street 300 yards to trump to youer? >> i will be headed by there in a little bit. stuart: thank you very much for jeff dewit for being here. >> thank you. stuart: new this morning, two stories of violence in austria. a stabbing rampage on a train, and nine iraqis arrested for allegedly raping a woman. ash, you start with the stabbing, please? >> a stabbing on a train in western austria. two people seriously injured. three days before another attack on the train on the

swiss train with knife and burning liquid in that particular one. and then you mentioned the nine iraqi asylum-seekers were also arrested. they're accused of raping a 28-year-old german woman in vienna for new year's eve celebrations. one believes she was drunk, police say she was drunk. either way she was taken advantage of by the asylum-seekers, they have been arrested. stuart: before we come to you for comment, louise, i want more for out ban, a third french town has banned the burkinis. you have to give me the background. >> this happened just this past weekend. stuart: i want to hear. >> a woman wearing a burkini was on the beach and a tourist started taking photographs of her in her burkini. stuart: this is not the woman, this is a picture of the burkini.

>> as that was happening, people nearby, a young man of north african origin came over and were upset they were taking pictures of the woman in the burkini. they started to get rowdy. locals in coarsica came into defend the tourists and a big beach brawl ensued. bottles and bricks were thrown. 40 people. that's why the mayor of that town said i'm banning the burkini because of people's personal safety. >> this is in corsica, right? >> yes. stuart: seems communal fighting has arrived. >> her garment is offensive. she is wearing something that is publicly insightful to hatred against women. tourists have a right to be photoed. if you don't want to be photographed, don't wear something so offensive on a public beach. stuart: seems europe is on a

knivage, all over the place. >> you might say stabbings on trains again and again and again, this instant in austria is only the latest and all comes from angela merkel's open door policy and we have chaos that trump is fighting to avoid in this country. stuart: i don't think we in america understand, the knife edge of social tension rippling through europe. what's this i hear about the mayor of london talking about a hate crime? a subdivision for hate crimes? is mr. khan a mayor of london, he's a muslim. >> that's right. most people do not know this in defending the 9/11 attackers in previous life as a lawyer. there's a subspecious that says all crimes are hate crimes. let's talk about the misogyny that the kinds of full facial

garments and burkas expose women, too. we've got to say enough with the cultural acceptance of violence against women expressed in these offensive garments. >> what do we allow 100,000 north african migrants to come to the united states. what is it 10,000? >> you have to integrate. the issue is integration and the hillary campaign won't talk about the need to integrate it. that's what donald trump is addressing, they need to swear allegiance to the bill of rights and the constitution when they come in as refugees or migrants. >> we have a test, we already have tests. i'm a legal immigrant, i had to go through a range of tests it is perfectly fair. not talking about u.s. citizens, people who would like to come into the country, they should accept american values. hillary clinton should get up and say donald trump is right. he's right. stuart: when you emigrated to this country, ashley and i were

both citizens, when we took our citizenship test, we had to say we're not part of the communist party, never have been. that is an ideological test. >> on planes now they give you the outdated thing that says have you ever been a member of the nazi party. maybe it's time for the update. maybe the enemies aren't the nazis but radical islamic terrorism and support for russia and iran. stuart: louise, thank you very much. the dow industrials coming back, i'm going to show you something else at the moment. look at this. the controlled implosion in las vegas. last tower of the riviera hotel reduced to rubble. that was the first high-rise on the las vegas strip. i didn't know that. >> 61 years ago. stuart: look at all the people with cameras. there must be 100,000 videos of that. and this too, elevated camera at the rio olympics fell through the air into the crowd at the olympic park.

seven injured. the camera went crashing down, a cable snapped. hillary clinton caught in awkward lingering hug with joe biden. 17 seconds. mr. biden says hillary has forgotten more about foreign policy than trump's team will ever know. more varney after this. >> let me go, joe, please!

♪. stuart: you can tell that's elvis singing hound dog. by the way he died 39 years ago today. do you know where you were? >> yes, i was very upset. i was in bed, my mom came in and said guess what? elvis died. >> i was playing in the street and we were devastated.

he ranks near the top as the top-earning dead celebrities according to forbes. stuart: you were kids when this happened. i was in a car on my way to candlestick park, san francisco. that was the day when i last saw o.j. simpson play for the 49ers, candlestick park, that day. came on the radio, elvis has passed. check out the big board, we're coming back, now down only 35 points, maybe because the price of oil moved above $46 per barrel. when you get oil up, you get stocks coming back a bit. that's what we've got. hillary clinton says if elected she will not send ground troops to fight isis. watch this. >> in comparison, donald's been all over the place in isis. he talked about letting syria become a free zone for isis, a major country in the middle east that could launch attacks against us and others. he's talked about sending ground troops. american ground troops. well, that is off the table as

far as i am concerned. [cheers] >> all right, hillary clinton supporter retired rear admiral jamie barnett is with us now. admiral, welcome to the program. >> thank you, stuart. stuart: hillary clinton saying you don't tell the enemy what you're going to do and when you're going to do it. you don't take things off the table. you're a military guy, what say you? >> if you commit troops, you have to inform congress. there's no way donald trump is going to commit tens or hundreds of thousands of troops to the middle east and syria without informing both the american public and congress. stuart: this is not about donald trump, this is what hillary clinton says, it's off the table. she's just told the world that come what may, if she's the president, there will be no ground troops in syria or wherever she's talking about. that's not something you would normally do, is it? remember, president obama told everyone we're out of iraq,

we're leaving. lock stock and barrel, we're gone and in came isis? >> she told us exactly what she's going to do. she's told us she's going to continue the successes she's had without putting troops on the ground to defeat isis. mr. trump has not mentioned that. she has a plan to defeat isis to disrupt and destroy terrorist networks throughout the world and make sure we have strong alliances and we're strong at home. so that's the main thing we're telegraphing to the entire world. and the opposite side on it, mr. trump is undermining the alliances, indicating he's putting troops on the ground there when they're not needed when we need to have allies, partners including muslim allies and partners provide the boots on the ground. stuart: i think we've got boots on the ground already, don't we? >> we have a handful of people there as advisers, trainers and

special forces. they are not front line troops which he seems to be indicating. stuart: we don't know, we don't know, we don't know that. i want to bring this to your attention, admiral. i want you to hear what joe biden said yesterday. listen to the brief clip. roll tape. [applause] >> hillary has forgotten more about american foreign policy than trump and his entire, not exaggerating, his entire team will ever understand. stuart: hillary has forgotten more about foreign policy than trump's entire team. do you think that's justified after some of the problems that hillary clinton faced as secretary of state with russia, with libya, et cetera? >> and did a great job with it, she brought our allies and russian adversaries and chinese to the table. stuart: did a great job?

>> great job inflicting sanctions on syria and iran. stuart: what about the ukraine? >> ask mr. trump about that. stuart: no, no, no, hillary clinton was secretary of state and threatened ukraine and you're saying she did a wonderful job with the russians? >> mr. trump is doing a very good job. stuart: no, it's not about trump. this is hillary clinton. you're a supporter of hillary clinton, supporter. explain to us how the russians can invade crimea, threaten ukraine and now -- >> look at how she strained nato allies to challenge them. what we're doing in poland. all of the things now while donald trump continues to weaken allies, says he's going to abandon nato, makes us more dangerous. he really does not know what he's doing, and with regard to your question about the vice president's talk about

advisers, he has no advisers, 50 republican national security experts have said he would make the most dangerous president in the world. i'm concerned for our troops that someone like that as commander in chief would put us more at risk, not less. stuart: i just wanted a more vigorous support of hillary clinton as opposed to a vigorous attack on donald trump. >> hillary clinton will strengthen our allies, she reached out, she has the respect of them. the thing i was trying to tell you when you interrupted me, look what she was able to do by bringing allies and adversaries together to bring iran to its knees and then to the negotiating table, and now there is concrete in the nuclear reactor, that's the type of person she can be. she has the respect of our international allies. stuart: i find it interesting iran was brought to its knees by hillary clinton and that the russians were dealt with after they innovated crimea and threaten ukraine.

i find that interesting. admiral, please come again, we've got a good debate going here, love to have it, keep it going. >> thank you, stuart. stuart: now this for you, a kidnapping in puerto vallarta, a resort town in mexico, popular with tourists. 16 people abducted at gunpoint from an upscale restaurant. "el chapo" guzman 's son is believed to be among those abducted. it's not official. you win gold, you get taxed on that. we'll tell you in a moment. you can run an errand. (music playing) ♪ push it real good... (announcer vo) or you can take a joyride. bye bye, errands, we sing out loud here.

siriusxm. road happy.

(announcer vo) you can sit in traffic. or you can crack up. (man on radio) but if it isn't refreshing... (announcer vo) sorry traffic, we laugh 'til it hurts. siriusxm. road happy. (ee-e-e-oh-mum-oh-weh) (hush my darling...) (don't fear my darling...) (the lion sleeps tonight.)

(hush my darling...) man snoring (don't fear my darling...) (the lion sleeps tonight.) woman snoring take the roar out of snore. yet another innovation only at a sleep number store. won't replace the full value of your totaled new car. the guy says you picked the wrong insurance plan. no, i picked the wrong insurance company. with liberty mutual new car replacement™, you won't have to worry about replacing your car because you'll get the full value back including depreciation. and if you have more than one liberty mutual policy, you qualify for a multi-policy discount, saving you money on your car and home coverage. call for a free quote today. liberty stands with you™. liberty mutual insurance. . stuart: will you look at nike? a new ad featuring an

86-year-old nun who is also an athlete. >> the iron nun. this is a great spot. i watched it. loved it. 86-year-old sister madonna, part of the youth campaign. there she is. by the way, in the course of the ad she says that the person doing the talkover, the voice-over says you should stop right there, sister. >> and she says this is my 46th triathlon, and he finishes by saying do your thing, sister, do your thing. very effective. unlimited youth. stuart: good. how about this one? the medals awarded at the olympics are considered taxable income. straighten us out, liz. >> the winners get cash for each gold or silver medal. stuart: 25,000. >> michael phelps has 5 golds and a silver. his bill is about 55,000. tax bill. let me finish, he can deduct training costs. >> exactly!

he's not going to pay whatever it is. look, the tax is 25, you get $25,000 cash for winning a gold. >> each gold. stuart: that is taxable income. however, that income is going to be offset by the deductible costs of training. >> of course. stuart: the actuality is they're not going to pay any taxes. >> probably nothing. stuart: probably none of them will pay a dime in tax. >> you would have to pay taxes on the value of the gold itself. he is worth an estimated 55 million dollars. this is a drop in the bucket. stuart: really? impressive. should get a gold medal for that. our next guest has an article on hillary clinton. she says hillary either lied to the fbi or she lied to congress and that doing so in either case is a federal crime. we'll have that story for you in a moment. but first this. a monkey and a diaper escapes from a vehicle at a walmart parking lot in ohio.

this is our kind of story. a walmart employee tries to capture it. a woman ran up to the employee and says leave that monkey alone. she drove away with the monkey and officials are trying to find her. that's a "varney & co." story for you. >> you see everything in a walmart parking lot.

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stuart: pull back on the dow industrial. we are up 40 points. 18592. the price of oil is begin to go move higher. 45 bucks on oil. i think it's townhall.com, our next guest writes this. the bottom line, question mark, clinton either lied to the fbi or lie today congress. doing so in either case, it's a

federal case. katie, you know what i'm going to say. i don't know what your article says, all of it goes right over the head of all voters. it will make no difference whatsoever. >> well, here is the thing, i think you're right about the fact that the clinton e-mail scandal won't necessarily have a further effect on the election. we've seen that it's hurt trust worthy numbers and integrity numbers, however, sending a letter to the u.s. attorney in washington, d.c. saying, look, hillary clinton told two stories different one to the fbi and one to congress. she was under oath when he spoke to congress. they have notes. she lied to one of them because the story is inconsistent. the historical is important to understand that they are doing their job pursuing this story. stuart: how many people follow this chain that you're talking

about, was it recorded, was it not recorded? what are they going to do about it? how many times have we seen exactly the same thing in the last year or so? >> i think that there's probably more people paying attention that you would think. i think leon, of course, former cia director who is now a campaign surrogate for hillary clinton, trying to urge the american people to move on. it's something that people are still paying attention to and something that's still hurting them on the campaign trail. yes, perjury is something that's very difficult to prove and i doubt that the u.s. attorney in washington, d.c. is going to pursue maybe the investigation. but again we sure hear about congress not doing the job, the oversight committee. i think it's important to give them credit for pursuing that despite it not having political implications. stuart: katie, you're right.

answer me this question, if hillary clinton gets 50% support in any given poll and then those people are told about this what you just told about this thing with congress and lying on the emails. how much support do you think she's got, she still gets 49%, 48% or she moves to 03%? >> right. stuart: no impact on that electorate whatsoever. >> unfortunately both democrat nominee and the republican nominee are highly unpopular. the majority of the american electorate do not believe any of them are trust worthy and capable of telling the truth. people are a choice here, unfortunately. nobody across the political spectrum are not happy with their choice. i think that they're very upset that they have to vote somebody who they don't find trust worthy. stuart: here is another story that has come and gone, on her

website hillary clinton initially said that women victims of sexual harassment or rape -- >> sexual assault. stuart: cannot be silenced. they must always be believed. >> right. stuart: that statement was taken off the website because of hillary had done to bill's women. >> i don't know. i think millennial women support hillary at this point. they say, that's not something we accept in the year 2016 and clearly they thought it was an issue to have on the campaign website. i think that they didn't expect the pushback. i remember when hillary clinton tweeted about this. she said every women who is a victim of sexual assault deserves to be believed and got mocked as a result because not only did bill clinton do a number of things that were highly questionable against women but a lot of people allege hillary clinton helped to drag them through the mud and silence

them herself in order to hold onto political power. and so she set herself up for that and i'm not surprise that had they would take it off the website, delete it, so to speak, wipe the website with that term. stuart: no impact? >> you never know. i think it has a little impact. stuart: you're the keeper. >> keeper of historical record now. stuart: townhall.com. thank you so much. >> thanks for having me. stuart: right now we are right at 18,600. that's where we are. small losses for the s&p, for the nasdaq and the dow. very small losses at this point. meanwhile our next guest writes this, american business needs ethics, it needs integrity, it needs a commitment to excellence, it needs a purpose prurp greater than profit, that is from the economickist jerry who is with us. welcome to the program, i believe that the headline in

your article was does god belong in the board room and your answer is yes. >> yes, he does. our system doesn't really run on selfishness. our system runs on honesty. before adam smith wrote the wealth of nations which talked about the freedom market economy, he wrote a theory of moral sentiments. our system does not work properly if we don't have a firm ethical base. you have to have honesty and accounting system that is are honest, you have to have people in positions of authority in order for this to work properly who are servant leaders rather than the imperial leaders and when you violate principles it breaks down. it works best when you have the morality. stuart: do you think that the system, capitalist system with the system of ethics has broken down at this point? >> i think it's showing signs of breaking down.

i think ethics and integrity is broken down more in government, but to the degree that government and the private sector, big corporations begin to merge with one another, to that degree you see corruption levels rise. for instance, the toyota was reaction to overregulation. corruption and government overregulation they live with one another. there's honest business people. what we have to do is get rid of political correctness and let them talk about moral beliefs and make it part of the conversation and that will help renew american business. stuart: which candidate hillary clinton or donald trump do you think best represents the ethical values that you're talking about and which you want to see in our system? [laughter] >> i don't think either of them represent a high standard of ethical value t. now you want me to grave on a

curve, i don't know, but i mean, i think that our lack of ethical culture, rather than chose between them, i want to step back and say, how have we gotten to this point? nobody is really happy. we have two people who have severe in my opinion ethical problems, now, his largely is a matter of how he talks and her a matter of what she does. anybody who look at presidential candidates, no matter what side they're on has to at least say america has an ethical, moral, even a cultural and spiritual problem. stuart: interesting. come back, please. come and see us again, please. >> my pleasure, thank you, stuart. stuart: bad news for vw, now an alleged criminal, i repeat criminal wrong-doing related to the emissions rigging scandal.

jeff flock in illinois with more details. it's a criminal probe; is that correct, jeff? jeff: that's correct. vw admitting to what happened already. it didn't happen by accident. the question is, of course, how is the government going to pursue this. the wall street journal saying that the -- their sources have indicated that they found evidence of criminal activity, will it be specific people charged, exceo be charged or would there be a deferred prosecution agreement. either way, i tell you, vw dealership here, you're hearing crickets out here. it hasn't helped the sale of vw. stuart: 15% down this year. a highlight from major league baseball. san francisco giants right

fielder pence catching a fly ball. he tripped over right-field bullpen. he stumbles. >> nice. stuart: i think we can get that again. stumbles and he still -- he still -- he got it and made the out. what a guy. we have another serious story for you now. riots in milwaukee after another police shooting. the antiwhite, anticop mind set has been building there for months. we will discus that and get into it in one moment

ashley: remember varney&company starts at 9:00 a.m. eastern. >> we are looking for growth. some acceleration in the growth outlook. the market continues to generate reasonable job gains with 190,000 in the last three months. i think we are edging closer towards, you know, the point in time where it will be appropriate to raise interest rates further. the fact that the unemployment rate has been sort of flat this year despite job gains, suggesting that people are reentering the labor force. people -- discouraged workers who left the labor force are coming back to the labor force.

>> everything that i had is gone. everything. everything. stuart: just a terrible thing. that was a victim of the louisiana flooding.

on your screen you can see aerial footage across southern louisiana, flooding has left 20,000 residents stranded, flood warnings continue. that is a terrible situation. riots erupted over the weekend in milwaukee. 23-year-old black man killed by police saturday night. this is the man's sister calling for violence, watch this. >> burning down ain't going to help down. don't bring the violence here and the ignorance here. stuart: that was the black man's sister. listen to someone from the mob, the mob scene calling out. watch this. >> they are beating up every white person. [shouting] >> he white. stuart: cleveland police

association steven is with us again. i have to call it what it looks like an outsider antipolice, antiwhite, race riot, is that what it is? >> absolutely. there's no truth to the narrative here. look what we are talking about that triggered this thing an africa-american police officer in the performance of his duties chasing an african-american male that turned on him. i have two words for america. body cameras, you wanted them, we have them and yet we still rise to this level of violence. it's incredible to me. stuart: i was looking at this and i thought that it was an em basment to america and i think it was the ruin of the black community. i want to know what's the next step? what do you think is going to happen now? >> it's absolutely heartbreaking because it does not represent the black community. i can tell you that from working here in cleveland very closely with the black community, with all communities here.

it does not represent the heart and soul of the african-community, it's a small group of thug that is are out to do -- press their agenda on and very clearly they are doing it based on a false narrative once again. the silence from the president obama is deafening on this. the silence from the attorney general is deafening. we are absence leadership, leadership from the black community to sit down and say, hey, stop. this is wrong. we cannot -- we cannot behave like this as adults. stuart: do you think that any black community in america will vote strongly for donald trump and his law and order platform? >> yeah, absolutely i believe that. and i'm not going to get into, you know, whether -- where i stand on it, but at the end of the day, president obama has

clearly divided this country on racial grounds and grounds of law and order. he's placed people against the police here and i promise you on my kids' lives and it does not get more important to me than that, that if you comply with the orders of a police officer, you will never ever, ever be hurt, ever be hurt. if you are told to pull over, pull over. if you're told the drop the gun, for god sakes drop the gun. nothing good is going to happen if you don't and, you know, we have to -- we have to get by this, the media has a responsibility on this as well. stop, you know, the cameraman that can make the angle like there's 5,000 people in milwaukee when there's 500. sheriff clark is mobilizing or requested for the mobilization of the national guard and president obama doesn't have a word to say about it. i mean, we need leadership. we are begging for leadership. stuart: steven lewis, we always

appreciate you being with us specially in a difficult time like this. we appreciate it. come again soon. thank you, sir. >> thank you. stuart: third town in france has banned this the burkini, a third town has band it. ashley, tell me why. ashley: a woman was having taken pictures by tourist. some people nearby of north africa origin came over and got in a fight with the terrorist saying they can't be doing that, that prompted other locals to step in and turned into a very ugly brawl. people involved and led to to the mayor ban burkinis. next day hundreds marched on another city which has a large north african community, this is our home. so the tensions are very high. liz: the french government officials, though, are saying

this is a beach version of the burka, hiding women's bodies to control when the french government is saying we are about diversity and women's freedom and this is about secularism and they're saying -- it has nothing to do with terrorism. stuart: all right. i've got to get to this. health insurance etna is getting out from most obama healthcare. extreme vetting for immigrant. anybody who wants to come here, extreme vetting, more on this coming up. >> the time is overdue to develop a new screening test for the threats we face today. i call it extreme vetting. i call it extreme, extreme vettg

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ashley: let's look at the dow for you, three in the green. the dow itself off nearly 50 points. now let's take a look at this.

that's where we see our producer filling stuart in. there she is. she's filling him on what's coming up on top of the hour. here is what we have. hillary clinton will not send troops to fight isis taking it, quote, off the table. why would she say that? a former cia operation officer answers for us. obamacare is unraveling, etna pulling out exchanges because they are simply too expensive. premiums are about to skyrocket, the author of beating obamacare is here and she saw this coming. plus two days of riots in milwaukee, donald trump now going there to address law enforcement. he is the law and order candidate if only he can stay on message. stuart: you said it before and you're saying it again, yes, he can stay on message. >> well, he is -- look the media takes snapshots of phrases out. we always talk about the bias media and what they do, they'll clip a sentence.

it's something you learn in politics, you have to watch how you say things

>> what causes riots are failed liberal urban policies in these ghettos like milwaukee. milwaukee has inescapable poverty. we're, like, the sixth poorest city in america. they have failing public schools. the k-12 public school system here, there's only two school systems that are worse, cleveland and detroit. you have massive black unemployment. i think the black unemployment rate in milwaukee is 32%. you have dysfunctional families, father-absent homes, questionable lifestyle choices. those are the ingredients for a riot. stuart: well, that was sheriff david clark on this program yesterday, summing up two generations of failed leftist policies that have brought ruin and riot to so many american cities. he outlined a litany of tragedy;

fatherless families, hopeless schools run by the teachers' union, grinding poverty, mass unemployment. oh, what a dreadful list. so where's the demand for real change? it's not coming from the president or from democrats. why should it? the left has been in charge of our cities for decades, always pushing the same failed programs. well, donald trump will be in milwaukee today. the media will be picking over every word he says. they're looking for racism or bigotry. odds are they will invent some slight to encourage voters to pick the same safe, same old-same old, hillary clinton. i hope mr. trump goes for american values, respect for the law and private enterprise jobs. after 50 years of gross failure, that would be a real message of hope and change. stay tuned, this is what's coming your way in the third hour of "varney & company." ♪ ♪

stuart: stocks are off their, wr of a percentage point. we'll get to your money in a moment, because i want to get right at it. i want to bring in larry elder, nationally syndicated tv host as well. you just -- what i can't work out in black communities all around america is this insistence on voting democrat for generation after generation. the same old failed policies. i don't get it. why does it persist? >> well, because the democratic party has succeeded in, a, masking their racist past. as you know, they opposed the andth amendment, the 14th amendment, the 15th amendment, democrats founded the ku klux klan. more republicans voted for the civil rights act of 1964 than did democrats. most black people don't know that. and the second reason is that black people have been taught that the issue today in 2016, despite the election and re-election of a black president, is racism.

and by the way, we democrats wear the white hat, and those dastardly republicans wear the black hat. you are quite right what you said about the welfare state, as was sheriff clark. the welfare state has done what slavery and jim crow could not do. according to census reports, according to economists like walter williams, a black couple was slightly more likely to get married than a white couple. fast forward, the percentage of blacks born outside of wedlock now, it's 73%. and i didn't say it, obama said it. a kid raised without a dad is five times more likely to be poor, twenty times more likely to go to jail. the welfare state has destabilized families, values, and we need to rethink the welfare state. stuart: so when are we going to get a real change here? at the moment i'm told that more than 90% of african-american voters will vote democrat. they'll vote for hillary clinton in this election. when is that going to change?

>> as soon as people start or telling the truth, as soon as republicans start telling the truth, as soon as people are unafraid to say what needs to be said for fear of being called racist or uncle tom. that's what shuts down debate. the fact is that the welfare state has done a great deal of damage to the black community and often with the best of intentions. but people are afraid to say it because they're afraid they're going to be called bigoted or an uncle tom. tell the truth. stuart: well, it would be nice if we could, but i don't see it happening in this election cycle. i think this is gone. i think an -- another to generation of young black folks is now consigned to a welfare mentality, if you like. i think that's what they're consigned to, and that's a terrible thing. >> it is a terrible thing. and when you look at the pew research data on the 2008 election, stuart, when you ask black voters why they voted for obama, 65% of them voted for him

because they thought he would improve the economy. that's more than the percentage of non-blacks who said the same thing. the second highest reason was the war in iraq at 10%. look what's happened. fast forward. black poverty rate is up, the so-called wealth gap between black households and white households hasn't been this wide in 25 years. black home ownership down, the labor force participation rate, the percentage of blacks working or looking for work for black males hasn't been this low since they've been keeping the stats. this economy's stupid. i urge black people to look at the economy, look at schools, look at crime and vote that way as opposed to assuming that the democratic party is going to rescue from so-called institutional racism. racism is no longer a major problem in america anymore. it's about the destabilization of families, it's about schools, it's about education. vote for the party that's going to deliver those kinds of things. stuart: that's why you're popular on this program, larry elder. [laughter] hold on for a second, i want your reaction to this other story.

we've got a record number of young adults moving home to live with their parents. even their grandparents. give me details. >> so it's, basically, 60.6 million people are living in homes, one in five people, are living in homes with multigenerations meaning parents and grandparents. that's young adults living at home. that's up from 51.5 million. that's nine million more people living at home with their parents or grandparents. and watch this stunning shift at pew. we're talking about generational changes here. pew is now saying for the first time in 130 years people who are between the ages of 184 are living with their parents. they're not living with spouse or partners, their parents or grandparents. it's a big deal for the u.s. economy. they're not out buying homes, spending things for their homes, you know? this is a real economic impact story. stuart: larry elder still with us there in california. i say the cure for this or part of the cure is rapid economic growth, private enterprise growth, and what say you? >> absolutely.

this has been the worst economic recovery since the '40s. obama will be the first president to preside over a recovery where not one year has been 3%. and the difference between 2% and 3% is one million jobs per year for the time of the recovery. and also it's about this massive, massive spending. in 1900 government at all three levels took less than 10% of the american people's money. right now government takes in the mid 30s. and when you put a value on so-called mandates, things that you're telling people to do and buy whether they want to do them or not, government takes almost 50% of what people produce. that is why our economy is growing so sluggishly. stuart: you know, larry, i think you stay up late at night to watch the olympics and study up for what you're going to say on "varney & company" the next day. [laughter] very good. very good. usain bolt right there. [laughter] thanks very much, larry. we'll see you real soon. >> my pleasure. stuart: thank you. let's get back to your money. where are we on the dow industrials? down to 43 points.

price of oil sitting around $46 per barrel. still talk of a production freeze to limit supply, oil at i think it's $46.03 as we speak. there you go, $46.03. all right, liz, the markets close to all-time record highs, and george soros and some of the other big hedge fund guys, they're betting against the markets. they're saying, hey, going to go tumbling down. >> yeah. soros is doubling down on his bet against the s&p 500, betting the s&p will crash. you know, ash and i were talking about this, carl icahn has said this, david tepper, these are the big billionaire guys betting the market will crash. and they're essentially saying global economic growth going down, whatever. here's the thing, this is not like a dot.com crash. it won't happen that way. 1999 people got out of tech stocks, and they moved into other assets. now with the central banks so full on and into the markets, what are you going to do, you going to go into a controlled bond market where there's little

yield? the only game -- and this is why we're in a melt-up situation. stuart: yes. >> investors are pouring in and, you know, because the markets have nowhere else to go but up because the governments, central banks around the world are so controlling the bond market. stuart: you're right. it's been a melt-up summer. that's what it's been. >> yeah. stuart: nobody really predicted the dow industrials would hit 18,600 -- >> nobody saw that. stuart: and there it is. >> we were predicting correction, bear market. remember january, we were reporting that markets went down bigtime in this february. >> an average of 14% amongst fears of a global recession. stuart: what was it in february or january we were down to 15,000 on the dow and now we're 18,6 just since february? >> correct. >> thanks to the fed, the ecb. print the money, baby. >> look at this one quickly. excuse me, the central bank of japan owns a third of the government bond market in japan right now. stuart they own it. they bought it up. >> they bought it. it's a big deal. stuart: two items on foreign

policy. one, donald trump lays out his plan to defeat radical islam, extreme vetting he calls it. tests for muslims or anybody entering the country. on the other side, hillary clinton says sending troops to defeat isis will be, it is off the table if she were president. we'll deal with both of those items in a moment. now take a look at this, or you're looking at las vegas. wait for it, the big banker here it comes. down she dose. that is the riviera row tell, demolished overnight. closed for business last year, it was the backdrop to several movies. do you remember it appearing in oceans 11, the james bond movie diamonds are forever, robert deniro's casino. big cloud of dust now. i've got one more for you, this sure to make you smile. that's dick van dyke giving a surprise performance at a denny's restaurant.

remember, that man is 92. listen. ♪ ♪

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>> in comparison, donald's been all over the place on isis. he talked about letting syria become a free zone for isis. a major country in the middle east that could launch attacks against us and others. he's talked about sending ground troops, american ground troops. well, that is off the table as far as i am concerned. [cheers and applause] stuart: well, you heard it, that was hillary clinton at a rally. she was slamming donald trump's foreign policy. she said she would take sending boots on the ground off the table if she were the president. mike baker is here. he's a former cia covert operations officer. always intriguing sort of guy. [laughter]

can't talk about that. >> big introduction, thank you. i should leave now so i don't disappoint people. [laughter] stuart: i want to know what you think of of a presidential candidate who says i'm telling the enemy exactly what i'm going to do. there'll be no american boots on the ground. relax, boys, everything's okay. i think that's a classic mistake. >> apparently surprise is never a good thing in a military operation. [laughter] it's pandering on her part. she already knows that we've got boots on the ground and that that is going to increase. one thing i think we can be assured of during the course of the next, say, 60 days as we get closer to november is that this current administration is going to do everything possible, expend all resources they think they can get away with to try to turn the tide, to try to show aggressiveness and acceleration against the fight against isis, to try to continue that narrative and take away sort of the fodder that the republicans may have about it. stuart: but it is working. >> it is working, no, and that's right. you're absolutely right. we have to be pragmatic,

realistic, we have to understand -- and we should be happy about that. we are having some success in libya, syria and iraq. we should have been doing this two, two and a half years ago, and we need to do it more aggressively. but for her to get up there and completely pander and say no boots on the ground, you know, is ridiculous. stuart: but she's caught the american mood. i don't think americans really want 20, 30,000g.i.'s over there storming the beach. >> right. stuart: i don't think america wants that. >> no, agreed, and we don't need that sort of strategy. we don't need those sort of numbers. to be honest, if we are going to defeat them on the ground out there, we need to do that while at the same time understanding the problem's not going to go away. we can beat isis, we're not beating muslim extremism at the same time. we're beating isis in this short-term battle that stretches out over years, but there's this 30,000-foot problem. while we are winning in syria, iraq and libya, the general public may feel like the problem is worse. and both those things are actually correct. stuart: now, donald trump, he

says that his, in his foreign policy speech he says he will use, and i quote, extreme vetting. he repeated it, extreme vetting, on anybody who wants to come to the united states. his opponents are saying you can't do that, and it won't work. you say? >> well, you know, we vet people now, we've vetted people in the past, we've, you know, we've always asked for that pledge of allegiance to our country when you come in as a citizen. how it would work -- and i think this is why he was short on specifics which the dems are pointing out from his speech yesterday -- how it works is another question. you're trying to talk about an ideological belief, a terrorist sympathizer is not going to tell you that he believes in sharia law. if he's a bad guy, he's not going to tell you that question. so there's aspects to this that the direct questioning won't help. we have to, we do have to look at the vetting process that we're engaged in. can we do it better? of course we can do it better. does that mean we're going to be in a lockdown situation?

i don't think there's any way in the world he would accomplish that. stuart: when i became an american citizen, i had to say, look, i've never been a member of the communist party. if it was 100 years ago and i arrived at ellis ellis island, i've got to find two people to stand up and say, he's okay, let him in. >> but you did, and now you're here. [laughter] stuart: this is historical precedent for this, and it could work. i mean, there's a mechanism that could be found to make it work, and i think it's popular with the american people. >> it's very popular and, of course, nobody wants to allow a hostile into this country. there's no doubt about that, that's just common sense. but i think we need to back it up a little bit. it would make more sense maybe to the general public if we had a conversation from the beginning and say here's what we currently do. now let's look at the gaps, and let's talk about the actual measures we can engage in. we're not having that discussion right now, you know? both sides, obviously, campaign season throwing these hand grenades at each other. this is what we currently do for the various categories of people that come into this country,

where can we improve it, that's a good conversation to have. stuart: mike baker, former cia guy, wearing a delightful suit -- >> thank you very much. stuart: next week off to alaska. >> yeah. a couple of days off, tremendous fishing and climbing. stuart: phone in, will you? >> i will. from the mountaintop. stuart: mike baker, thank you. [laughter] where's that market? we're off about 20-odd points at the moment. we've got about half -- two-thirds of the dow industrials, the 30 stocks are in the red, that means they're down, but we're only down 27 points, and it's 18,6, that's the level. check this out, this is the san francisco giants' right fielder, hunter pence. there he goes. he trips over the bullpen mound. watch him closely. oh! he still makes the catch. he focuses, he focuses, he's lying on his back, he makes the catch, he makes the out. we like to bring you the sports stuff other than the olympics. he's got it. [laughter] i regret to say, historic

flooding in louisiana responsible now for eight deaths. state officials just updating that number. listen to this one, 11,000 people are homeless because of what you're seeing right there. and listen to this, air bnb, terrific program to help those victims. we'll tell you all about it, a great story.sands of elvis fans making their annual pilgrimage to memphis marking the 39th anniversary of the singer's death. of details next on the protests from just down the street of where you're looking at now. let's listen to "don't be cruel." ♪ ♪ don't be cruel to a heart that's true. ♪ baby, if i made you mad with something i might have said -- ♪ you can run an errand. (music playing) ♪ push it real good...

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♪ ♪ stuart: oh, i remember that one. my older brother loved it. [laughter] "jailhouse rock." today marks the 39th anniversary of elvis' death. thousands of fans are going to honor him, and here's a number for you: elvis' estate makes $32 million a year right now. huge money. more than the king ever made during his lifetime, okay? >> thank you very much. thank you very much. stuart: thank you very much. in louisiana, oh, terrible story.

officials now say up to 15,000 homes and businesses have been flooded. historic rainfall levels all across the weekend. now, liz, given that story about airbnb and how they're helping. >> what they're saying, if you are a member and you have rented out your home via airbnb, we're going to allow you to do it for free. so if you're a host and you want to help out and you're an airbnb member, you won't have to kick back a service fee. and if you want to charge, do it for free, it's up to the host. airbnb is saying we still will give customer support to you for helping out people hurt by the flood. stuart: that sounds to me like a practical plan that's a real help to people in genuine need. >> and they've done this before, for example, during hurricane sandy. stuart: good. check that market scan. where are we on this market? it's a tuesday morning, coming up on lunchtime. not much movement, down 34 points. most of the dow socks are in the red.

it's game on, trump versus hillary. but our next guest says republicans who don't support trump are paving the way to hillary's presidency. he will be joining us in a moment. another blow to obamacare, it's a big blow. aetna, the latest insurer losing money and dropping out of 11 state exchanges. details on that. remember when nancy pelosi -- [laughter] we always do this. remember when nancy pelosi said this? >> affordable. affordable. there's a reason. affordable. affordable. affordable. affordable. affordable.

stuart: our next guest is really upset about this. he says never trump people are just paving the way for hillary clinton. deroy murdock is with us now, he is a national review writer. hold on a second, you've got a problem here, haven't you? [laughter] pause the national review does not like donald trump at all. they are the foundation, if you like, of the never trump people. you're with the national review, and you're saying you guys are out of bounds, you're opening the door for hillary. >> absolutely. stuart: better explain yourself. >> yeah. a couple problems here, and they're huge problems. one is that the never trump folks won't take yes for an answer.

the idea is that trump's this big liberal and a democrat in dissurprise, and yet he picks mike pence, he has a 99% american conservative rating. that's pretty conservative. and then you've got the judges, the justices, potential justices to the supreme court who trump announced a few months ago. they were, i think, five were recommended by the heritage foundation, they're all associate with the the federalist society which is a very conservative jurisprudential kind of group, and then a week ago wonderful tax plan, cutting the corporate rate from 35 down to 15, widespread deregulation, getting rid of obamacare, these are the kinds of things that people at national review and people on the right have been begging for. and he had this wonderful speech on terrorism just yesterday where he talked about demolishing isis, having extreme vetting of people, making sure they're not pro-sharia and at the end talked about assimilation of american itch. these are conservative goals. there's nothing he can say that will get the never trump people

to say, well, maybe he's come far enough, let's back him. they're saying let's put hillary in- stuart: no, they're not saying that. >> some people are, in fact, meg whitman is an example, a number of republican congressmen from upstate, actually have endorsed hillary clinton. but the other ones say, well, i'm not going to vote. the effect is to put hillary clinton in the white house, and that would be absolutely disastrous for conservative ideas. stuart: they don't have a policy problem with donald trump so much as a personality and temperament problem. they are the elites, and they look at donald trump, and they think i just can't have this guy representing america in the white house. it's a reaction to him personally. >> look, i think it would be nice if he were more smooth and elegant. i think we'd all love to see cary grant in the white house, but hillary clinton represents not middle of the road democratic ideas. she is far, far left. she's to the left of mcgovern, and if she gets in, i think it'll be obama with a work ethic, number one. and number two, she's very

vindictive, and she's going to take the epa, the fda, the sec, all these agencies and sic them on anybody who's successful in this country and say go get 'em. stuart: what happens when you argue this line with people who are never trump people? what do they say? oh, he's not a conservative? that's it? >> generally speaking, bounces off their heads. oh, he's terrible, blah, blah, blah. what is the sociopath agenda? where is sociopathic proposals? stuart: are you -- no. are you pro-trump or are you just anti-hillary? >> it's both. i'm anti-hillary. trump is my fifth choice. i backed walker, fiorina, rubio and cruz in that recorder in the primaries. trump is my fifth choice, but he is the gop nominee. it's either going to be donald trump or hillary clinton in the white house. it's going to be one of those two people. it's a binary choice, as paul ryan has said, either hillary clinton or donald trump. and given that choice, i'm with donald trump.

stuart: do you still have a job at the national review? >> i'll check when i go home after this segment. [laughter] stuart: deroy, thanks for joining us. another blow to obamacare, and it's a big blow. aetna dropping obamacare plans in most states. it's only going to stay in about four states, i believe. look at the health insurers, all of them down but not much. down a fraction as of this morning. betsy mccoy is with us, a trump supporter, former lieutenant governor of new york, and she's the author of the book "beating obamacare." got that. it's been on the shelves for a long, long time now. so i say that obamacare is spiraling down. it's a relatively slow spiral, but i think it's finished, and you saysome. >> that's right, you are correct. and americans will realize that when open enrollment begins on november 1st, just eight days before the election, and they find very few choices of plans

and skyrocketing premiums, up 20% some of the big plans in new york, 40% in tennessee. very big premium hikes. and for that they'll be getting less of everything. less access to doctors and hospitals, less access to prescription drugs. stuart: "the new york times" had this story a couple of days ago, and they were astonished to find that people operate in their own economic self-interests. [laughter] they did. they were surprised at. they were surprised to find that young, healthy people or just healthy people in general don't want these expensive plans with massive deductibles. >> that's right. stuart: they'd rather stay outside of it. >> massive deductibles and crammed with, quote, benefits that they don't want. how many 30-year-old men want a routine, free colonoscopy or pediatric dental care if they don't have kids, right? [laughter] stuart okay. you got me right there.

>> remember when nancy pelosi said affordable, affordable -- stuart: we just ran it. >> it's going to be affordable. that was a ruse from day one. 80% of the people who enrolled were getting big subsidies up front, so they never saw the true cost. and on the back end, the insurers were getting lump sum payments at the end of the year to incentivize them to price the plans below what they actually needed to cover their costs. well, those lump sum payments end in 2016. when obama leaves office, that corporate welfare is over, and that's one of the reasons the premiums are going way up -- stuart: now, wait a second. they're supposed to announce these new premiums in the enrollment period starting november 1st. >> well, they're already announcing them. the state health insurance commissioners are rolling out that information now which is why we know how high the premiums are going to be in many states already. stuart: i thought the administration was trying to shift it past the election. >> they were. >> oh, they were. they tried very hard but, in fact, open enrollment begins november 1st, and the news is

coming out right now state by state on how exorbitant -- let me tell you a a couple that isn't eligible for a subsidy because between the two of them they earn $64, $65,000 a year, they could be paying 20% or more of their income just for the health plan. and they've still got a $12,000 deductible. stuart: good lord. that's extraordinary. wait a minute, we've been running charts of the health insurer stocks throughout your interview are, and all of them -- look at that. there's cigna, okay? it's going straight up -- >> well, these companies are very profitable except for obamacare, and they're doing what they have to do to protect their shareholders. stuart: so if they pull out, it's good for the company? >> of course it's good for the company. they're making billions of dollars of losses per year on these plans. stuart: and the taxpayer subsidy -- >> oh, taxpayers are really getting -- stuart: it stops this year? >> no. the taxpayer subsidies to the companies stop. the taxpayer subsidies to the

purchasers, the individual consumers, they don't stop. >> they go on. >> they go. stuart: okay. >> 32 billion a year. >> yeah. the fact was these plans were made to look affordable on both ends. they were paying the insurers to underprice, and they were paying the consumers so they didn't feel the total cost. there was nothing affordable about this from day one. stuart: i honestly think the deductibles under obamacare really kept a lid on this economy -- >> consumer spending, absolutely. stuart: you got a boost from more gas money in your pocket -e thing. when i hear people say, oh, well, this is the beginning of single-payer, just remember there are only 11 million people enrolled in these plans out of a population of 320 million. we can fix this quickly with literally a band-aid. put the -- stuart: okay. >> under a million of them have pre-existing conditions. revive the high-risk pools for them, eliminate the individual mandate and let people go buy what they want, affordable health insurance. >> right.

stuart: thanks very much, indeed, betsy mccoy. you know what you're talking about. now, hillary clinton says she will make college free for families making $125,000 a year or less. she hasn't given details on how she will afford to do this. now, liz, trump says his plan -- no, he's going to unveil his plan for college costs in, what is it, september, i think? >> yeah. and what he's essentially saying is that the federal government should not be in the business of student loans. remember the obama administration in the dead of night in 2010 in the middle of the collapse nationalized student ans. he's saying get more of the banks back into it so they can, basically, rein in college costs to get the colleges to rein in the costs and make colleges have more skin in the game. stuart: yes. >> what hillary's saying, have the rich pay for free tuition. stuart: it's like obamacare. [laughter] it is just like obamacare -- >> because, you know, it's going to be -- stuart: the cost of health care keeps going up. that's the problem. >> that's the problem. [inaudible conversations]

>> the new york fed did a study, and they found that every time the government steps in and subsidizes, you know, tuition increases, for every dollar that tuition goes up, the colleges pocket 60 cents out of that. 60 cents, two-thirds of the increases go back to the college. so the colleges have no incentive to stop gouging middle class families, stop acting like fat cat academics and stop acting like donald trump mini-me real estate moguls. stuart: identify got to thank -- i've got to thank everybody around the set. thank you for joining us, one and all. check that market, we're down 50 points for the dow industrials, more than half the dow 30 -- most of the dow 30 are in the red, i regret to tell you. look at vw, the justice department launching a criminal investigation into the emission-cheating scandal. the stock's way, 1.5%, under $30 a share. that's what you've got to watch. a new report says the

military was asked to give misleading information to the president about isis. how about that? we have a general with exclusive information on it, and he's next. >> there's chaos all over the middle east. you've got the syrian civil war happening, you've got president obama's timeline. you know, he campaigned on getting out of iraq, so he doesn't want anything counter to that narrative. and what you have is mostly good, hard working people, majors, lieutenant colonels, civilians and central command saying, houston, we have a problem. i don't want to live with the uncertainties of hep c. or wonder whether i should seek treatment. i am ready. because today there's harvoni. a revolutionary treatment for the most common type of chronic hepatitis c. harvoni is proven to cure up to 99% of patients... ...who've had no prior treatment. it transformed treatment as the first cure that's... ...one pill, once a day for 12 weeks. certain patients... ...can be cured with just 8 weeks of harvoni.

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♪ ♪ >> i'm adam shapiro live on the floor of the new york stock exchange with this fox business brief. the dow, s&p 500 and nasdaq are off this morning, although they're off their morning lows. we can see why on the dow, big stocks pulling them down. johnson & johnson is falling. they got some approval from the fda for a breakthrough prevent for depression, but a that's not lifting the stock which is the big loser right now on the dow. verizon also off about half a percent, although year to date it's up 18%. united health care is down today, the aetna news clearly with obamacare a problem. home depot's one of the big winners today, they pleased wall street with their earnings report. that stock is performing well. some of the home builders, a bit mixed there after we got the housing start data today. hovnanian is down 1% but poultry group up 1 -- pulte group up 1%.

more "varney & company" after this.

stuart: serious stuff. a new report says the military was asked to give misleading information to the president about isis. general anthony tater, author of the book "three minutes to midnight," is with us, and he has this story exclusively. take me through it in a way that everybody can understand. who said what to who about isis?

>> well, first, the backdrop, stuart, is we're leaving iraq in december of '11. right around that time, a few months later, the intelligence is still saying that things are getting worse and worse in the middle east. and as the president's briefer goes in to brief the president, he comes out and has a meeting with a source of mine and says quit giving me this intelligence that says that things are getting worse. don't give me products of record, as it's called in the intelligence community, that indicate that things are not consistent with the president's narrative. stuart: so this is the president's briefer, the man who goes to him every day -- >> every morning. stuart: -- and says this is how it is here, here and here overseas. >> right. stuart: and the president's briefer says to people beneath him, don't give me news about isis gaining strength or the situation deteriorating, give me good news. >> yeah.

even worse than that he says if you have bad news that's not consistent with the narrative, call me on a secure line where there's no trace, there's no record of the call. if you have news that's consistent, then produce products of record and deliver that to me. stuart: now, does this come from the president? did the president on say give me good news? >> well, you can see one of two ways that's going. you can say the president's saying, wait a minute, you just told me we just left iraq and we're trying to high-five and get out of there, why are you telling me this, or the guy has a rough meeting with the president and goes back and says, hey, look, don't give me anymore of this stuff. i wasn't in that meeting, but i do know from my source that this individual was told quit producing products of record. and so what the house report that came out last week, the interim report that the house did shows the whistleblowers in central command, the ones who have really brought all this to the surface, these are lieutenant colonels, majors,

civilians just really putting their country ahead of their careers here by saying, look, this is wrong. this is not the right way to do business, and they're being reprised against by people in the central command, the military intelligence community senior officials. and, you know, one young lady spent $140,000 defending herself. she won, and, you know, nobody's covering this story. stuart: so military professionals -- >> yes. stuart -- who spent a career, a lifetime in the military -- >> that's right. stuart: because they exposed what had happened -- >> right. stuart: -- that the right information was not going to the president -- >> right. stuart: -- they're being, as you say, fired? >> well, they're being recriminated against. their careers are being cut short. they have families, they have careers, and so by trying to do the right thing and then by exposing that they were trying to do the right thing, there are people that are attacking them. and thankfully, we've got good leadership now in central command that is trying to right this ship. stuart: is this in your book? >> no.

my book is "three minutes to midnight" is a different story. stuart: okay. general, you're a trump supporter? >> i support the republican nominee for president, yeah. stuart: that's different from being a trump supporter. [laughter] okay. general, we appreciate you being with us. it's an extraordinary story, and we appreciate it. >> thank you, stuart. stuart: sir. i -- now this, a third town in france has banned the burr kinney, it's worn by muslim women. the ban occurred after a massive brawl on a beach. ashley? >> yeah. happened this past weekend in upper corsica. what happened was there was a lady in a burkini, some tourists start taking photographs. some people nearby took objection tohose photographs, got in the way, got into an argument with the tourists. the next thing you know, some french locals got involved trying to protect the tourist. this snowballed into a big old brawl on the beach. there were bricks thrown, and it was a real mess. six injuries, six people taken

to the hospital. as a result of that, the mayor of this town in corsica said no more. it's not racist, he said, it's simply for people's personal security. the very next day, a huge mob descended on another french town in corsica, charging at the local north african population there, it's our home. stuart: civil strife. tension rising. >> this could be civil strife meaning that this is about shaming women. it's about controlling women and their bodies. in fact, germany's considering a ban on wearing burkas in public. so, basically, the people of germany, officials there, say we reject the burka. it's not in keeping with our values in our country and who we are as a nation. stuart: what a story. >> it's about integrating and the failure to integrate. stuart: all right. everybody, look at this. this is a tesla model s. burst into flames in france. oh, dear.

it happened during a promotional test drive, even worse. [laughter] details on that coming up. the stock is only down a fraction. it's not hurting the stock at all. >> apparently not. stuart: hurt the car. look at this one, too, this is from vienna, austria. zookeepers thought there was one cub, a couple of days later out comes the twin. there were two. i newborn pandas are, they're absolutely tiny. >> aww -- [laughter] stuart: four inches long. we will be back. you both have a

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stuart: we're going to show you this again. that is a tesla model s bursting into flames in france. >> oh, my gosh. stuart: nobody hurt. was this a battery fire? >> well, we don't know. tesla says they're, you know, cooperating with the french authorities. we do know those lithium ion batteries are very vulnerable to fire if they're damaged in any way. thankfully, the people inside this car that were going for a test drive, they got out safely. a major pr black eye, let's be honest. stuart: if it had happened to another automaker, anybody from anywhere, i think the stock would have taken a hit. but somehow tesla -- >> teflon musk. stuart: teflon tesla. let's go to volkswagen.

they're trying to settle what is called a criminal investigation, criminal charges from the justice department. the word "criminal" strikes out to me. >> yeah. it's about rigging their cars to, basically, cheat on the emissions tests that the epa puts in place. so, you know, what's going to happen here? they'll pay more money. they'll get -- possibly, this is what analysts are saying -- deferred criminal prosecution, and then they'll pay a he hefty fine. they already paid nearly $15 billion. volkswagen has set aside $21 billion in expectation of finings. stuart: that's just in america, i believe. they've set aside $21 billion in america. >> their legal troubles going on because individual states are suing them now. they're piling on as well, so this i very expensive one. stuart: yeah. i mean, how long before this thing -- >> it could be a long time. stuart: -- goes away? i don't see it going away. >> right. stuart: i think we'll be doing stories like this. oh, another, new charges in the volkswagen case. >> yeah.

stuart: i doubt whether the stock will drop significantly below where it is now. not forecasting the stock market, but, you know, it's so consistent. it goes on for so long -- >> yeah, that's true. stuart: that's it. i wonder how many people will buy vw at 29 on the theory that it will bounce? at some point it will bounce? >> look at apple bouncing up above -- we were saying apple could break below 90, now it's at 110. that was just about a month ago. stuart: you know what? we're out of time, so there will be more "varney" after this.

stuart: ashley. ashley: i was in the uk.

stuart: i was driving to san francisco to see oj simpson play football, one of the last games. liz: you heard it on the radio. [laughter] stuart stater charles: i'm charles payne filling in for niel cavuto. right now donald trump behind closed doors in the battle state of wisconsin. he's selling isis strategy to donors but trump critics are calling on extreme vetting on immigrant. but trump foreign policy adviser walid said it's much needed. i'm pretty sure donald trump knew the media would jump all over that extreme vetting. what exactly does it mean and walid, how is it different than what we do already? >> let me begin by asking the question back to secretary