anymore. maria: always a pleasure, you're on vacation next week, enjoy it. dagen: thank you. maria: that's it for us, "varney & company" is next. i'll see you on sunday. sunday morning futures. stuart, take it away. stuart: and shushing up the crowd here. as a matter of fact. maria, thank you very much indeed. hillary clinton takes to israeli television and calls trump supporters racists ap haters. good morning, everyone. maybe she's desperate, besieged by scandal and confronted by matt lauer and losing her lead in the battle ground state polls and she's lashing out. she told israel's channel 2 that trump is sexist, his supporters are racist and she fears a violent attack on her and bill clinton says that trump's slogan, make america great again, is racist, too. calling for a revolution, school of choice on the mass scale.

and here is a switch. trump talks policy, hillary does not. and the media, nothing about education, they say the hillary clinton e-mail story is out of control. how about that? just as president obama leaves behind a very embarrassing asian tour, another humiliation, north korea detonates a nuke and says it could put a bomb on a mechaniis at will. and we'll wrap up this, "varney & company" is about to begin. ♪ >> well, well, well, friday morning, we're going to go down at the opening bell. about a half hour ago, a fed president said there's a case to be made to raise interest rates gradually.

is that why the market-- >> yes, boston fed president. we're going to hear a bunch of fed heads and most of them are going to be pretty hawkish, trying to let the market no, yes, there's going to be some kind of rate hike. the question, is it going to be later this month or the end of the year? the market reacts to this. the inflation numbers are going to start to heat up and the only way to combat that is start raising-- we're talking about a quarter of a percent and-- >> however, the markets don't like it. stuart: i got it. ashley: you love those fed heads. stuart: dear lord. [laughter]. another reason why the market is moving lower, oil is down, nearly 2% down, $46 per barrel on the way down from where we were about a week ago, certainly late yesterday. >> we're on the way down. stuart: here is a stock that we watch for good reason. amazon has a delivery station

from 20 miles from 44% of the population. nearly half the people have a warehouse 20 miles away. ashley, that's a push for same day delivery if ever i heard one. >> it makes same day delivery easier, and close, i calculated 141 million people based on 320 million population and they are hoping to expand that, of course. by the way, 26% back only two years ago, so, if you're bricks and mortar, this sends a shiver down your spine. it's already shivering because amazon continues to eat away at the customer track, who gets physically in the car and goes shopping. >> log on at 10:00 and delivered by 4:00 liz: what a time to be alive. stuart: i like that. apple, it will not announce opening weekend iphone sales numbers. oh, the market doesn't like that. what's the problem, we ask? they took a big hit yesterday and back down this morning, 104. there's a development with the iphone competitor, the samsung

galaxy, restrictions on taking it on planes, liz? >> yeah, you can't-- you can bring it on the plane, you can't turn it on and charge it and to tammy bruce's point, you can't put it in your luggage either. this comes -- a rare move by the f.a.a. to advise this, at nathan dornika, a man in florida saw his jeep totalled by an exploding samsung phone. he was charging it in his jeep and left it there and then saw it caught fire. so, this is-- and also, it should be worth pointing out qantas, singapore airline, and virgin australia have totally banned the use of samsung, of this product on their flight. stuart: i've got the video of the jeep burning a little later. three or four minutes from now. we'll show it to you and that was the result of a galaxy 7 battery explosion. okay, now, i'm going to call this a slap in america's face. north korea conducts its fifth

nuke test, the second in eight months just as president obama leaves after his very difficult asia tour story. ashley: the fifth and biggest nuke test yet out of the north korea, measuring 5.3 on the richter scale in north north korea. it's estimated at 10 kilotons and the first was under one kiloton. they're getting bigger and bigger and it's closer to being able to mount a warhead on a ballistic missile and they're ready to mount it and fire it a long ways. stuart: they can do it at will liz: comes on the conclusion of the president's trip. stuart: and back to the election. taking the media's protection of hillary clinton to a whole new level. look at this, from the papers editorial board, this is not just an article, this is the editorial board. the hillary clinton e-mail story is out of control. how about that? stop laughing, tammy bruce, because that appears -- my interpretation is they'll do

anything to distract from hillary's problems. >> i love the headline because, well, does that mean somebody was in control before? out of control of who? them? it's an interesting complaint. washington post was the newspaper that loved to get secret information for people and they would name the names like deep throat. when you have information that was maybe tried to be-- somebody is trying to keep secret, reporters normally want to have that out in the open. in this case it looks like an editorial written in a garage with everyone drinking beer and ranting. it's turned into what we remember as being air america, that awful radio station that had this mission, it was foaming the a -- at the mouth and political. it's a heartbreak, used to be an american institution, and i think they've exposed themselves of being something otherwise. stuart: distracting from hillary's trouble, the battle

ground states shows tightening. florida, we've got quinnipiac swng state polls and i'm trying to make out which one is which. tied in florida and ohio, looks like, i can't make it out. >> all within the margin of error. stuart: and within the margin of error on two battle ground states and i'll make it clear later. that's a tightening of the race. >> her dismal performance, they want to blame mart lauer to send a message to lester holt for the first debate, if you step out of line and don't at least try to help her you're coming under fire. i think everyone on that side was shocked at the level of her performance and you're seeing the panic play out in black and white. stuart: they're taking it out on matt lauer, much too harsh. >> the thing is he was fair. they're not used to watching a fair dynamic unfold and he was fair that evening. stuart: and hillary clinton talking with israeli tv calling trump supporters, racist and haters, and she's worried about

violence from them. i'm going to give you the direct quote. i would say you can take trump supporters and put them in two baskets. there are what i call the deploreables, the racists and the haters, just one part of her statement on israeli television. >> the american people. stuart: ed rollins is here, a trump supporter. >> good morning. stuart: what do you make of that. a group a month ago thought they were not only going to win the presidency with the record number of electoral votes, but the house of representatives and senate and it's coming back to her, i told you it's the way it is. if he wins the states up on the map and romney did and certaiy not romney states he has to worry about at this point in time he'll be the president and-- >> it's a race. >> the bottom line, she has had superior organization on the ground. she's had an onslaught of

advertising, he's getting stronger by the day and more disciplined by the day. stuart: i know you're a trump guy and i expect you to be critical. what do you make of the commander-in-chief forum and her performance there and press conference with six questions answered yesterday on the tarmac in westchester? >> it's, look it, the press conference was certainly desperation and she wouldn't have had it in we hit that well. here she is allegedly the foreign policy expert, secretary of state for four years, the first lady and most involvement in the white house for eight years and stumbled, didn't have any clear, concise-- i think, certainly did not shadow him. so, my sense is she's not doing well and they know she's not doing well and don't know how to fix it. their problem is the candidate. it's not their organization, they've got a superior organization, a good campaign, but she, as a candidate, is a terrible candidate. stuart: trump's problem is no longer him as a candidate and what he says. trump doesn't have that problem

any longer, his strength is now policy. >> well, his strength is now that he's going to be different than anybody else in washington. that's what the american public wants. this is a change election. they know if you elect her you'll get four more years of obama and he basically is the candidate. what hurt him early on as an experienced candidate he stumbled and stepped on his own story. discipline, he's giving substantive speeches, the one today is important. people say i can see this guy in the role. you don't have to hang your head. and in terms of the statement to the israeli press, half the country and racist and everything else, she is are good voting people and working people who want change. stuart: ed rollins, thank you for being with us. we appreciate it. >> thank you. stuart: what have we got? a big scandal at wells fargo, i mean big. they fired more than 5,000 people. they've been fined $185 million. here is what happened. employees secretly opened

accounts under customers' names to meet sales targets and get bonuses and didn't tell the customers about it. full details coming up. the stock will not suffer. it's pretty flat at 49 this morning. libertarian candidate, gary johnson, flubs a question about syria, didn't no what aleppo was. here is the question for our resident libertarian who is coming on the show shortly. if johnson voters jump ship, who benefits, hillary or trump? and yes, we're going to dwell on that storiment more trouble for samsung, the f.a.a. says travelers should not turn on or charge their record note 7 phones during flights because the phone could burst into flames. good reason to be concerned. here is the video. a florida man left his note 7 in the charger and the jeep went up in flames. no one injured, but that jeep is a goner. more varney after this.

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>> you've all seen the video.

no, no, wait a second. we've gotten nis for you first. serena williams last last night. an upset last night, i should say, in straight sets to this lady from the czech republic. that means serena will have a very, very hard time beating the record of of 222 grand slam events, which she currently holds along with steffi graf. she lost. tough to get back to record territory. what we're talking about this morning is football. it has arrived amid controversy. playing marshall, number 54, there he is, kneeled to protest the national anthem. he was a college roommate-- teammate, rather, with kaepernick back in college and he kneeled for the anthem. and a thriller, broncos held on to win, 21-20 and playing the panthers, this is the super bowl rematch from last season. they had a chance to win, but

he missed. he just missed. >> oh. stuart: the broncos won. i'd say that's an exciting start to the season, would you not? >> good start. stuart: the last time i do football. everybody's seen it, the video of gary johnson's aleppo gaffe. there's a blank look on his face. here is what he said about that blank look and the gaffe with neil cavuto yesterday afternoon. roll that tape. >> i'm going to try to make lemonade out of this is what i'm going to try and do, which is to talk about the policy in syria right now and aleppo is at the epicenter of that policy. >> you didn't seem to know that. >> well, you know, i was thinking acronym when he said aleppo, and guilty. no excuse whatsoever. stuart: fellow libertarian, jn stossel is here. john, i'm going to get into a subject which nobody else does. gary johnson is a life long pot smoker, he's been smoking too much.

he blanked because he had been smoking too much weed. >> i don't know that you can make that connection. a lot of people smoke weed and don't do that and a lot of people go blank who never take anything. stuart: there's nothing in this whatsoever? >> he's just a low key kind of guy. that's his style. i don't know. that's. [laughter] very upsetting to see that. look, all the media are playing the clip as if they were talking about syria. he was asking him about politics, who are you going to take votes from and suddenly, what would you do about aleppo. if i were there, maybe i would have said, a leopard? i'd rather have a president who doesn't know what aleppo is rather than one who wants to invade syria. stuart: that's the first time i've seen you get mildly hot under the collar. >> hillary would want to invade country after country and who

knows what donald trump would do. stuart: two quick points, i think that's a gaffe that will hurt him and i think it will keep him out of the debates. he needs 15% of the polls and he ain't going to get it. >> in the betting he was already not likely to get it and that won't help. stuart: if he's not exactly out, but look, he's losing support. who does his support now go to? i mean, does hillary benefit from this or trump? >> the polls show he's taking pretty much equally from both. so, i can't predict. he should take both, he should take all the votes from trump and all the votes from hillary 'cause he's a better candidate. stuart: okay. i like the guy. i really like the guy. we had him on the show and he was an entertaining, personable guy, really good. he seemed to know his stuff as well. >> a two term governor in a democratic state, vetoed lots of bill and understands limited government. stuart: he does, but he's not going to win. so, why on earth would anyone

vote for him who wants to keep clinton out of the white house? >> it's possible he might win. >> elections, not just polls. stuart: are you kidding? >> the betting now says that hillary 60% and trump 25%. why bother with the election. stuart: come on, stossel, crack that smile. you know he ain't gone a win. >> i'm desperate, but i ought to win. stuart: may i throw this open to the assembled experts around the table. on television or in the media i've not heard anybody speculate will johnson's life long use of marijuana liz: only on social media. >> i don't know if john had marijuana, i smoked marijuana in my early 20's and it makes you hungry and i knew nothing and i wanted doritos. i decided that that's not a way

live life. i know what aleppo is. most who want to legalize marijuana hasn't smoked it extensively. stuart: i'm going to take everyone to the floor of new york stock exchange. floor traders are going to have a moment of silence for 9/11, the 15th anniversary on sunday. the moment of silence begins now. [moment of silence pran pran [moment of silence]

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>> donald trump continues to frame the debates, rolling out a detailed plan for education. he is promoting school of choice and promising to direct $20 billion worth of federal grants for poor children to attend a school of their family's choice. stossel, the libertarian is here and you should be happy. >> he's going to give the states $20 billion they may use for school of choice, that's good, i'm glad's talking about school of choice. right now the feds take 90 billion so we'll give 20 billion back. stuart: which other presidential candidate would say the teacher's union is flat-out wrong and school of choice and i'll push for it. >> mitt romney and gary johnson. stuart: okay, what's your show tonight? >> we need school of choice.

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>> all right. just a few seconds for the opening bell. we're expecting maybe a triple-digit decline. i believe the fed governor has been talking about a rate hike. uh-oh, we're down quickly 84 points, and almost all the dow 30 stocks are in the red. that means they're down right from the get-go. we're going to get into this. how about the s&p 500. the dow is down 1/2%. that's down .6% and down a little more percentage-wise. how about the nasdaq? strong recently, down .7%, a bigger pullback there. stocks down this morning. why? in part because the price of crude oil is down another 2% almost, back to $46 a barrel. investors don't like that. there's also this thing about the fed which i'll get to in a moment.

look at amazon. they are everywhere, are they not? down this morning, but we've got news on them being everywhere. look at apple, it won't announce opening weekend iphone sales numbers. the market doesn't like that. 104 on apple right now. and listen to this, 5,300 wells fargo employees fired. they created over 2 million phony accounts. they were trying to boost the bottom line. i've got more from that. the stock barely touched. restoration hardware, look at this, they made more money than everybody was expecting and the stock goes up 12%. how about that? who is with us this friday morning? who comes in on a friday morning right after labor day? i'll tell you, we have with us, liz macdonald, scott shellady, ashley webster, john lonski and jeff sica. we are down 127 now for the dow industrials.

liz, what's the comment for the fed governor doing this liz: he's usually against rate heights, but he's saying because of inflation, boston's fed president, we've got he and three other fed officials talking before there's a blackout period that starts tuesday which you'll enjoy. which means the fed officials can't talk before the rates policy meeting they'll have september 20th. the market's not liking that and europe and asian markets rocked by the north korea missile tests. stuart: john lonski, keep it short, please, we don't spend a lot of time on the fed on this program. there a consistency emerging that there will be a rate hike later this year? >> yes, there is. okay, they see a possible rate hike, it's unlikely you get a rate hike in september or november because of the proximity of the presidential election and moreover, the u.s.

economy isn't do that great. we have ism indices from manufacturers and nonmanufacturers, worst performance. stuart: i heard a scream in my ear, sounded like scott shellady from chicago. >> now what? we started this year, eight or nine short months ago, and they were going to raise rates four times. and maybe they'll catch up to be where they told us they would be. ism numbers are horrible. and even though we had 4.9 employment rate. what are the people making? look at our gdp. i say this, it doesn't matter if they raise interest rates, go ahead and raise them a quarter, it's not going to help anything. might make people feel better, the economy is strong enough to raise rates. it doesn't mean anything. we need tax regulation and less government. that's the 100% the problem. stuart: that's worth a scream, scott, it was. [laughter] that's a good friday morning

rant and set us on the weekend well. amazon, got to talk about this stock, we always do. they've got a warehouse or a delivery station within 20 miles of nearly half the u.s. population. i say, that means same day delivery is about to descend on most of america. jeff sicca, what do you say? >> brick and mortar retailers should make other plans. what they're planning in the next ten years is to have a facility, a fulfillment center within 20 minutes of 80% of the population, same day, same hour delivery. that's their ultimate goal. if you have same hour delivery why would you get up in your car and get in your car and go to the store. stuart: same hour? >> they want same hour delivery, that's what they're striving for. stuart: with a company like amazon you could say they might do that. >> you know, like everything amazon has done, they put their plans out there and everybody laughs at them and then they execute it liz: they call it internally,

amazon magic. >> that makes them who they are. stuart: $780 a share. lonski, what do you say? >> retail with a zero sum game. amazon sucking business away from competitors, going to lose a lot of jobs in brick and mortar space. retail sales are going nowhere, supposed to be unchanged for the second straight month. in august, take out gasoline, less than 3% year over year. stuart: that's interesting, many a -- amazon sucks some of the money out of the retailer. the dow down 141 points. we're off and running to the down side this morning. how about wells fargo, listen to this. they've fired 5,300 employees because they created phony accounts to make the bottom line look tter at wells fargo. ashley: that 5,300 over five years, just 1% of their work force. they opened 2 million essentially fictitious accounts, credit and deposit

accounts and funded them with money from real accounts without the authorization of the customers, it's quite egregious what they did and the reason they say the reps were under tremendous pressure to reach incentive goals and the only way they could do it is to make up the accounts. stuart: sica-- scott, i'm sorry, i'll get to you in a second. but sica. >> they consider themselves above reproach. the fact is, the scale that this happened, people above the people that they fired have had to know that something was going on and just as ashley said, is that these incentives for opening accounts are-- when they're not monitored correctly by a big financial institution, they lead to abuse and that's what happened on a wide scale. stuart: shellady, i'm listening now. >> here comes the common sense, at the end of the day, this screams of that 90-day shelf life that these public

companies have to live their lives on and that's not a good thing because they're going to be pouncing, the only way to meet those 90 day expectations. you have to perform now on wall street and we need to have three or four years before we can build momentum and that's why you've seen more of people doing this, they don't want to be held to the standards. stuart: look at this. i've got two items on the smart phone business. apple is not going to release its weekend pre-order sales numbers for the new iphone 7, that's a departure from current practice. we also have the f.a.a. says, turn off and don't charge the galaxy note 7 phone if you're on a plane. and liz, didn't you say some airlines banned them altogether? liz: that's right, including virgin australia. apple is breaking with an eight-year tradition of disclosing their first weekend sales. they've got the holiday

quarter. stuart: but it's for the stock-- >> remember, they had their first down turn in quarterly sales since 2003. ashley: they said because supply will outstrip demand. what does that mean? >> the same-store sales reports from all of the retail chains and they start today disappear as retail sales accelerated. >> you have a company that's entirely dependent on the iphone and if they don't blow the cover off the ball, they're going to have a problem so they're opting not to show anybody because they know that they need innovation and they don't have it. stuart: investors don't like it. the big board shows a loss and another individual or two we have for you. the retailer zumiez lost less money, but gave a weak outlook. because it lost less money, it's up 10%. profit down on the supermarket chain kroger, listen to this,

hurt by pension obligations. the stock though is up. boeing reportedly thinking about stretching the 737 to compete with airbus groups' longest single aisle jet. boeing up 131. how about this one? ford's china sales up 22%. strong demand for the edge suv, the focus the escort. who care the stock is still at 12. down 11 cents. google is spending $625 million to buy an app maker. nicole, better tell me about this one. >> it's the biggest acquisition that google made in two years, why are they doing this, trying to expand in their enterprise area. what does this actually mean? have you been to the doctor lately where he doesn't call the pharmacy to get your prescription into the pharmacy? he actually uses an app. i mean, it happened to me, probably happened to you. and you sit there in awe. but this is what apigee does.

you use your mobile phone, you order a pair of jeans, that goes through an app such as apigee uses. there will be overlap, but trying to make the world easier for you. the days of trying to listen to customer service on the phone, there's an app for that, too, you don't have to wait. stuart: thank you, nicole, that's the best explanation what apigee does. thank you, nicole, good stuff. don't forget about oil. big drop in supply yesterday. the price is going down again today. scott shellady, what gives? $46 a barrel. >> well, rallying from the news, obviously, and again today. we still have a supply issue and we're going to pump a lot ourselves. at the end of the day, getting to that $50 level, we're probably between 35 and $55 for a longer time than we think. oil lower longer and interest rates lower longer.

stuart: look, i think we've got the stock for you, two days ago they announced an extraordinary huge find of natural gas and $3 billion gallons of oil. i can hear you, scott, isn't that extraordinary, what a huge find in america. how about that? >> look it on the map is ginormous. stuart: i want to thank, scott, john, jeff, great performance this morning, thank you, one and all. let me show you the big board. now we're down 150 points, straight down since the opening bell this morning. 15th anniversary of 9/11 comes up and the man who was police chief on that terrible day.

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>> and we are down 143 points this friday morning, a fed governor has hinted at a rate hike. that's what set off the downside move for stocks. and now this, the obama administration shut down one prison camp at guantanamo bay. now, what does that mean? >> camp five. 100 cell maximum security prisons where the worst of the worst, the war criminals and those they called problematic prisoners put. that's being shut down, part of it being turned into a medical clinic, part of the gradual, but slowly moving prisoners out. we've had transferred. there are 61 prisoner detainees now at guantanamo bay. that will be reduced now to people working there, 2000, will be dropped by 400 by the end of the year. of course, president obama said it costs too much. stuart: will they be all gone by the end of year? that's what the president

wants, but not going to get it. >> no, he's not going to get it. reduced, but not gone liz: that's the recitivism race. stuart: pick a number. a lot get back into the fight liz: yeah. ashley: yes. stuart: great picture for you. sunlight reflecting off the freedom tower at ground zero in lower manhattan. don't you love that picture? got it. we're showing you this because sunday is the 15th anniversary of 9/11. former police commissioner bernard kerik, you were the prison commissioner, 15 years ago. >> yeah, i was. stuart: i remember right after 9/11, i was in manhattan and i saw the people of new york line the streets and applaud as players raced down there to get to the destruction. they were standing several deep, cheering police officers. >> not only cheering police officers, stuart, they were cheering the president. they were cheering the country.

they were cheering the flag. democrats, republicans, you name it, you know, there's this story, i was driving down the west side highway with the president, mayor guiliani, governor pataki all in the same vehicle and the governor and president looked up and when the president said, look at these people, look at how great they are and guiliani looked over at him and he said, mr. president, i hate to tell you this, not one of those people voted for you. it was a true statement, but it talked about the resilience of the city and about the people coming together and uniting. stuart: and look at us now, bernard. look at us now. police officers are ambushed and the flag is not respected. we've got people kneeling, they won't stand for the flag. >> well, listen, i'm going to tell you the whole not standing for the flag, i think the

members of the nfl, the nfl specifically, they need to remember, there's a player, one of their players, pat tillman in 2002, after 9/11 gave up his cushy game job making enormous amounts of money like these guys make, went into combat to fight the enemy that attacked us, and it took his life. if you're not going to stand for anything else, stand for him. you know, i think this is nonsense, it's garbage. stuart: now, i read your material and you have said that the terror threat today is bigger than the terror threat 15 years ago when they took out the twin towers. justify that. how do you mean a bigger threat now? >> i think it's far more substantial because i have isis, you have al qaeda, you have the internet, you have recruitment of this radical islamic movement that we never had before. we didn't even know existed. and all of that stuff has grown

over the last 15 years. we don't have a real global strategy how to take out this threat abroad. our intelligence capabilities have gotten better here, but they have to get better internationally. we don't have an educational process to teach young muslims that the way of jihad is not the way of your religion. there's all of these things that should be taking place, should be done, they're just not happening. stuart: there's a different terror threat. i mean, that was a threat that killed 3000-- almost 3000 people, knocked out virtually knocked out our great city. >> the most substantial terror attack in world history. stuart: the threat today is more diffuse, smaller scale, is it? >> it is, but it's global. it's like, it's like having millions of chameleons, you know, you don't know who these people are, where they are. stuart: we are going to have to live with this no matter who is the president, and who does what?

>> you're going to have to fight the enemy abroad and take out isis and al qaeda and these major groups, but there's a long-term process we have to go through to change this. stuart: bernard kerik, police commissioner on 9/11, 15 years ago, thank you very much for joining us. >> stuart, thank you. stuart: much obliged to you sir. >> thank you. stuart: where are we now? the market opened sharply lower and we're still sharply lower, the dow is off 140 points and 29 of the 30 dow stocks are in the red. hillary clinton grilled by a navy vet at the commander-in-chief forum. the man who asked the question next. . >> communicate this information on prescribed protocols, i would have been prosecuted and imprisoned. secretary clinton, how do you expect those like myself entrusted with america's most trusted information, to be feel--

>> the lows of the day thus far, down 146 as we speak, that's 18,300, that's where we are. a big winner, restoration hardware, they made more money than wall street thought and up 10% at 38. how about that? here is one for the books. clark university we've dealt with this before and we'll deal with it again.

clark university hired a chief diversity officer to help students combat microaggressions. the university urges students to avoid phrases like "hey, you guys", don't say it. it's offensive. ashley: i don't get it. stuart: this is carly shimkus fox news radio. and everybody can succeed in this society if you work hard. you can't say it. >> you can't. stuart: what's behind this? >> there's a growing culture especially among young people who always feel they're the victims. here is an idea. why don't those same people complaining about the microaggressions why don't they spend time doing something positive, doing charity work, go into the community instead of focusing on a narrative that actually divides us, that's what really what the microaggressions actually do. instead, they're focused on that and, you know, i really

don't think that "you guys" really offends anybody. that's taught in many college campuses across the country. stuart: there was a yoga class canceled at a university in canada because yoga is practiced by a culture which has been the-- which has experienced colonialism, violence and repression. so no yoga. >> no yoga. stuart: this is entering the realms of the utter ridiculousness. >> and the clark professor, she talks about environmentalal microaggressions around us and the example she gives is walking into a science classroom and seeing pictures of only white male scientists on the walls. and she says that that actually creates a negative culture that could offend. stuart: it's nonsense. >> it's absolute nonaccepts. stuart: rubbish. >> one could say it really starts at the top. stuart: youngsters like yourself are not in favor of this nonsense? >> i can speak for myself and i

am not in favor of it whatsoever. stuart: carly. it's not the last time you'll be on this program. that's a fact. >> carly, thank you. >> thank you. stuart: i find it hard not to lose my temper because i'm the parent and grandparent paying for this. ashley: that's a microaggression right there, stuart, you better calm down. that's a macroaggression. >> you guys, stop fighting. >> do you need a safe space? [laughter] >> everybody has a safe space on "varney & company." shimkus, come again. stuart: and second hour of "varney & company," north korea detonates a nuke and they say they could put a bomb on a missile and launch it at will they say just as president obama wraps up his disastrous trip to asia. you'll get my take on this episode. hillary clinton says donald trump supporters are racists and haters and she's fearful on a violent attack against her. we will deal with that next as well. ♪ music

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stuart: president obama's foreign policy has crashed. failure, in every area. good morning, everyone. just as the president returned from his embarrassing asia tour, came troubling news from north korea. they have detonated their fifth nuclear device. it created a 5.3 scale earthquake, and this dangerous regime says it can put a nuke on a rocket at will. during his trip our president was insulted on his arrival in china. lost a face-off with putin. hes was asking for russia's help in the middle east and they turned him town and china continued provocative naval activity in the south china sea. america has lost influence and prestige in asia. kicked out of the middle east by russia and gotten on the wrong side of history in europe. hillary clinton must take a share of the blame. she was secretary of state

while america's retreat got under way. remember the apology tour, the reset with russia, benghazi, earlier nuclear test, the likely hacking of hostile server all through her years as secretary of state. what is remarkable is the media's continued undying support for failure. trump has three opponents, hillary, the president and the media. exactly 60 days to the election.. almost the low of the day, down about 160 points now. the dow is in danger of dropping below 18,300. comments from the federal reserve president about higher interest rates may be coming, give the details. >> in a nutshell, boston fed

chair eric rosen gren says the u.s. economy is resilient, if the fed licy remains unchanged, there's a chance and growing possibility it will overheat, in other words, inflation will be an issue. stuart: just that hint, and we're down 150? >> yes. stuart: oil is down as well which doesn't help. >> yes. stuart: got to move onto apple, they're not going to release initial sales numbers for the new iphone 7. what's this all about emac? >> breaking with eight year tradition of doing that. and apple is saying we're not going to disclose it. it is a departure, they sold 13 million iphone 6's in three days last year. what's happening now? there is concern, apple posted firefighter quarterly loss since 2003, and the holiday quarter is coming up. if they have embarrassing first weekend, not good for apple. majority of sales come from the iphone. >> that tells the story. and the stock is down at $105 this morning.

atest of nuclear bomb, basically. it's said to be the most powerful nuclear device exploded by them yet. gordon chang is the author of nuclear showdown, north korea takes on the world. where is china in all of this? they have been title. that's not the title of the book. that's the first question. where is china in all of this? north korea is client state? >> i think china is complicit. one of the senior nuclear envoys arrived in beijing tuesday. the north koreans set this off friday. the north koreans wouldn't have done that unless they thought the chinese would give them a pass, if they thought the chinese imposed real costs on them, they wouldn't have set off the detonation today. stuart: china is tweeking all neighbors and the united states by allowing north korea to do this? >> absolutely, and the china-north korea trade is back

to presanction levels which means that china is busting sanctions across the border and the united states hasn't done anything about. this if we want to stop north korea, we have a china problem and got to start imposing sanctions on chinese entities that do business with north korea in violation of the sanctions. some of the trade is uranium hexofluoride for the nuclear weapons program and we haven't said anything about that. stuart: we just received response to the nuclear test. ashley, go to that? >> saying in part this, today's nuclear test a flagrant violation of unsecurity resolutions disregard for standards and behavior, demonstrated has no interest being in a responsible member of the international community. and to gordon's point, it says we have to do a better job of imposing current sanctions and impose new ones. >> we have the power to do

that. on june 1st, the treasury department declared north korea a primary laundering concern. we need to put sanctions on chinese institutions that engage in violative conduct. stuart: just to talk about the technological ability, at will, they can put a nuke on the top of a rocket. a couple of weeks ago, they launched a missile from a submarine under the water. they appear to be gaining ground technically? >> they don't have a nuclear warhead for those missiles yet, but they probably until two to three years, and they also have a nuclear warhead that can fit on a medium range missile that can hit u.s. forces in for instance, japan and south korea. stuart: have we put up a missile shield? we have the technology? have we done that? around north korea? >> we started to do that with the thad missile defense system

in south korea. that's why north korea thinks it has a free pass, beijing is so upset at seoul. stuart: what a mess, we retreated, we have no influence at all. >> yeah, and look, north korea is a villain, china is a villain, we've allowed them to be villainous on this. stuart: gordon chang, appreciate you being with us. back to politics and hillary clinton. she is attacking donald trump and his supporters at a rally. she said they're all racist. roll tape. >> if i were to be grossly generalistic, i'd say you can take trump supporters and put them in two big baskets. there are the deplorables, the racists and the haters and the people who are drawn because they think somehow he's going to restore an america that no longer exists. stuart: i'm sorry, that was not a rally, that was israeli

television that hillary clinton called trump supporters haters and racists. congressman sean duffy is with us, republican from wisconsin. she pretty strong stuff to be putting on a foreigntv station, calling people haters and racists. that's a pretty extreme statement, isn't it? >> stuart, incredibly extreme. from my perspective, i'm a trump supporter, and i have a mexican-american wife with eight little kids. this is offensive stuff. americans want america to be great again in the sense that we want our economy to grow. we want upward mobility. we want better paying jobs. we want to defeat isis. we want to push back against the last story about north korea and china. we're sick of a president who bows to foreign leaders. and so that's the frustration that americans are feeling. hillary clinton goes to the lowest common denominator and calls out racism. let me tell you what, stuart, there is racism in america

when. hillary clinton throws out this blanket charge, it undermines the call for those who have racist tendencies and racist views. shame on her for the communities who are affected by racism and doing it for political services to help her campaign. >> i want to move on, quickly, you had a hearing on the iran ransom deal yesterday where, the obama administration said they can't guarantee that the money is not funding terrorism. hold on a second, congressman, going to roll tape on that. role it. >> today's hearing will examine the obama administration's $1.7 billion cash payment to iran to settle longstanding claims, predating the iran revolution. despite vigorous denials there was link between payment and the release of american prisoners, the evidence presented by the administration makes it difficult to believe. iran officials certainly believe that this was a ransom payment. stuart: of all this money that

was flown over there in cash, it was my money? our money? taxpayer money? >> so the payment that we know of, the $1.7 billion. 400 million of it was iran's money, and $1.3 billion of it, stuart, was your money. taxpayer money that went to iran, the lead sponsor of terrorism, who is continually out there funding terror. this is what's frustrating about what the administration did. we can make a payment to iran, it would be wired to offshore account probably in europe somewhere, and they could use that money to buy normal things that countries buy, whether it's equipment to build roads and bridges, or buy airplanes if sanctions are lifted and they're allowed to do that. but when they get cash, and no bank in europe would let them transfer that money to cash in the form of a billion dollars and send it back to iran because they'd be sanctioned for it, but when we say you can

take the cash to iran, this is the currency of the underworld. that's why whether you are a drug dealer or a mobster, you use cash because it can't be traced. we've given them the ability to use this cash to fund terrorism, maybe give this money to north korea to buy nuclear technology? this was -- i can't believe the administration did this. we haven't found this out yet, stuart, but you know we've unfrozen iranian assets. stuart: okay. >> it's possible they could have transitioned the frozen assets also into cash and got it into iran. these are euros and francs, i'm sure you'll find out. stuart: our best to your wife who is a frequent guest on the program and your eight children who have not yet been guests on the program. >> thank you. stuart: later this hour, the navy veteran who confronted hillary clinton about her e-mail scandal, saying if he did the same, he would be in

prison. also coming up, hillary clinton says she's fearful of trump supporters. but what about all the leftest protesters who disrupt trump rallies in a very violent fashion? we are on it. remember here at ally, nothing stops us from doing right by our customers. who's with me? i'm in. i'm in. i'm in. i'm in. ♪ ♪ one, two, - wait, wait. wait - where's tina? doing the hand thing? yep! we are all in for our customers. ally. do it right. we are all in for our customers. it's scary when the lights go out.

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. stuart: one fed governor hints at a rate hike later this year, and down goes the stock market. we're off 152 points right now. not helped by a dollar drop in the price of crude oil. >> the dollar is a lot stronger which hurts oil, too. you know what? [ buzzer ] >> friday buzzer crash. stuart: more on national anthem protests during sporting events. university of texas, the chancellor there, a former admiral, is asking athletes, hey, stand, is he asking or telling it?

>> he's asks, he led the navy 6 s.e.a.l. team that killed osama bin laden. he's saying those who believe in the flag know that the soldiers who fought under it fought oppression, they fought eliminating bigotry, communism, terrorism, the flag march for martin luther king said the flag is for everyone, every color, race and creed. it's a privilege living under the flag, doesn't come without cost nor should it come without respect. he sent the memo to campus officials saying you know what? you stand when the flag is shown. stuart: that man playing for the broncos knelt last night. he did not stand. hillary clinton says she fears violence at hands of donald trump supporters. she told israeli tv she's worried about violence from trump supporters. what you're looking at now is violence from liberal supporters. visited on trump supporters.

liz peek is with us, fiscal times columnist. forget the financial side for a second, i find this extraordinary. >> a central pillar of her campaign, to make trump out to be scary, violent, unsteady, and it's working. a lot of people i talked to say i kind of like trump but i'm worried about him having access to the nuclear codes, and i say wait a minute. here's a 70-year-old man, never been arrested. never had any charge of domestic violence or anything of this sort. never had any violent encounter himself. his supporters, by the way, during the gop convention week were supposed to be very alarmed about them, not one was arrested. in fact, was the other group problematic, people protesting him. and these pictures tell the story. it's basically -- in minneapolis, for example, hillary clinton and bernie sanders supporters spat on trump. people going a trump fund-raiser. kicked them, demeaned them, et cetera.

this is such a false narrative and infuriates me, as you can probably tell. stuart: yes, i can. it's like president obama criticizing trump from laos or where else he's been. >> un-american. stuart: yes, up next, amazon's dominance online. 44% of the people in the country live 20 miles from an amazon shipping center. one of our market watchers earlier said they are shooting for same hour delivery. have we got time on that for a comment from you, liz? that's next hour. [ laughter ] the navy veteran who confronted hillary clinton said he would be in prison if he sent sensitive e-mails using a private server. >> had i communicated this information on following prcribed protocols, i would have been prosecuted and imprisoned.

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. stuart: stocks are down, you know what it means for the drillers, like transocean and diamond offshore, two of the worst performers of all the ke launching a mission to bring samples back from an asteroid. why would they do that? >> they want to study things that make life on earth. and this happened 5 after 7:00, cape canaveral, it's going to hang out two years, send out a robotic arm to collect space dust, analyze it and come back

in 2021. stuart: $800 million, i'm infused about this. fascinating. >> and they nailed the launch. stuart: they'll bring that thing -- >> with bruce willis on board. stuart: like a plastic baggy of dust, from an asteroid in the year 2021, drop it off? what are you laughing at, liz? >> i'm not laughing. oh, that liz. >> there's going to be a conspiracy theorist saying it's just dust, folks. [ laughter ] >> i will spend my tax money on that. i like this kind of stuff. it's technology, we run this. we own it. >> they're going to map it out. this is one of the most dangerous asteroids. one in 2500 chance of hitting the earth. >> like the movie. n' stop talking about it.

stuart: now very serious stuff, amazon, you've seen it hit lifetime highs early this week, new data on it. amazon has a warehouse or delivery station within 20 miles of half the u.s. population. now, liz, earlier today on the program, one of our market watchers said amazon is aiming for same-hour delivery. >> well, look, they're going into restaurant delivery in major cities such as new york, they have to have an hour delivery or you'll be eating last night's dinner. they have invested enormously in this capacity of doing one and two-hour deliveries in major cities and very fast deliveries everywhere else. stuart: i'm not aware of this. two-hour delivery. >> in the spring they started launching two-hour delivery. but how impressive is this, right? they are basically -- they've made the investment, they're becoming more profitable off that investment because all of us have become amazon enableers.

there is nothing you can't get -- in ten years, there's going to be one company left, that will be amazon. stuart: socked all the money out of the retail sector and bricks and mortar stores. walmart is trying fight back. >> last year 60% of the growth of sales were to amazon. >> and i think they're getting into car sales as well. >> there's nothing they're not doing. it's cars, restaurant deliveries. >> they're showing classic cars right now. stuart: who's going to give an antitrust problem? >> good question, the european union. they're already giving everybody problems. >> and demand backtaxes. aggressive group. stuart: we're done with the asteroid and done with that, i think amazon is a fantastic company. jeff bezos owns the "washington post" which is rabidly antitrust i'm sorry, not keen on that, as a company, it has no equal.

>> he could buy the "new york times." >> and they keep coming out with new products. think about the new things they're doing like fantastic alexa that we talked about on the program, where you say good morning alexa, a dozen eggs and she does it. stuart: i say good morning to alexa and she says what do you mean by that? [laughter] >> facebook co-founder pledges $20 million to hillary clinton, the mission here is defeat trump. that's the fb guy. bill clinton says if you're a white southerner, you really know what trump means when he uses the line make america great again. wait until you hear what he's thinking. more "varney" in a moment.

. stuart: still down triple digits, the market still reacting to hints from a federal reserve governor that we'll get a rate hike later this year. down 155 to be precise. look at lexicon pharmaceuticals, a drugmaker, obviously, it's up bigtime, 21%. it has encouraging test results for diabetes drug. that's why it's up so much. nissan recalling more than 120,000 vehicles, maybe with a brake fluid leak, that risk leading to fires, the stock barely budging, nissan down 9 cents. facebook co-founder pledging $20 million to hillary clinton. he just wants to defeat donald trump. >> he does, democratic groups back him saying he's never been involved in politics before but has reservations about anyone using large amounts of money to

influence elections. what does he do? contributes 20 million bucks. says he hopes it makes it likely that secretary clinton is able to pursue her agenda. he says my message to the gop is you cannot run a campaign based on fear and hostility. stuart: isn't hillary clinton already one of the richest democrats ever to run for the presidency? >> i imagine so. stuart: got to be, worth 100, $150 million. >> after being broke getting out of the white house. >> i like how you said fear, you sounded like margaret thatcher. stuart: more on the clintons, listen to this. bill clinton attacking trump's make america great again slogan. he says white southerners know it means something else. roll tape. >> somebody promises to you make america great again, if you are my age and you celebrated north carolina's victory in the voting rights case, you know -- i want you all with me, you know what make

america great again means, it means the economy i gave you 50 years ago and move you back on the social totem pole and push somebody else back down. stuart: okay. so we the people author, that's the name of the book, the writer, the author is juan williams is here, he's also famously the co-host of "the five," a great show, juan. >> you guys are number one. i appreciate your having me, stuart. stuart: you are really cool. bill clinton says make america great again, code for racism. nonsense, right? >> not in my book. i think this is an example of gotcha politics, clinton used that phrase in 08 when hillary was running. context is everything, what you see is trump is playing on anxiety, on fierce of people saying, hey, gee -- stuart: he says it in the black audience, in the church in detroit. make america great again.

>> when you understand him demeaning women, attacking immigrants saying you know what? we had trouble in this country, we're going backwards. stuart: you buy the nonsense? >> i don't think it's nonsense at all. i'm being straight with you. i don't like the idea that people would play on racial fears in the way that trump does. stuart: so trump should abandon that slogan, get rid of it, it's code for racism, right? >> i don't think it's code for racism. i think it's a code for people who i think are polarized in this country. there's no question trump's candidacy has racially polarized the country. i don't think there are many blacks or hispanics or asians supporting trump. it is white, uneducated people who are the base of trump's electorate. stuart: juan, i'm shocked. >> shocked. stuart: i'm shocked, shocked. i'm going come back. >> i know you're going to get me. >> you know i'm going. [ laughter ] >> donald trump laid out his

plan for education reform, directly tackling the teacher's union, she promoting school choice. he suggests $20 billion worth of block grants to the states to go to children to attend the schools of their family's choice. school choice on a mass scale. roll tape. >> the democratic party has strapped millions of african-american and hispanic youth in failing government schools that deny them the opportunity to join the ladder of american success. it's time to break up that monopoly. stuart: i want to bring in kevin chavez, the american federation for children guy and activist and education reform activist, and kevin, you are a hillary supporter, but in this instance on, this education reform plan from trump, you are with trump. would you like to explain yourself? >> well, when i first heard of trump's proposal, i said finally, someone is talking about education in a meaningful

way. we can h i think the biggest threat to our democracy in the long-term is not isis, al qaeda or russia or north korea, frankly it's the education of our young, and the status quo is unacceptable. millions of kids trapped in bad schools, falling behind compared to other nations around the globe, and i think what trump did in terms of talking about shaking up the system and engaging in more school choice, i think that's a good thing. and frankly, i would like to see more democrats do the same. stuart: i don't think you can see it, on our screen viewers were watching moments ago, we have shots of literally hundreds of minority people lining up to try to get into a charter school. the school of their choice. you seyounte in tears because they haven't gotten in. they want free choice, and who's stopping them? it is democrats, sir, democrats. it's the teacher's union. it's hillary clinton.

will you vote for hillary clinton with this kind of thing going on? >> well, let me correct. that first of all, it's the education elite. you know the biggest barrier to school choice is not just democrats, it's real republicans who are part of the status quo and educational elite. we would have -- we need to rise above the politics of the day and start talking about this stuff in a realistic manner. stuart: you can't, it's a political issue. >> teaching is a political issue. stuart: rock solid behind the solid schools, rock solid behind an educational stalinist bureaucracy, it is a political issue. >> yes, let me tell you this. because we have a lot of urban democrats who have jumped out there on faith, folks like me and cory booker who believe in school choice, all forms of school choice and made inroads in terms of forming alliances among urban democrats and

republicans in florida and louisiana and alabama even when we have a school choice program. we are making inroads but need to focus on the kids. i agree with you about the union, they have been bad about this. i think having this discussion is important. stuart: wait, trump is the only presidential candidate i can remember who comes out full scale school choice. that's the way to improve schools for a minority community. will you vote for him? >> no, let me tell you why. stuart: why? >> messengers matter. stuart: it is the worst problem we're facing, it's not isis, it's schools. and along with the plan that you like, but you won't vote for him? >> let me tell you why. you know why charter schools were elevated? the democrats behind obama, obama supported charter schools. that's why they gained traction. trump for the first time has come out with this stuff in the midst of the other things that are challenging just as previous guests talked about. so the messengers do matter. what we need to have is people to talk about this in a

cohesive way and folks can get a voice, now that trump put the agenda on the table. stuart: kevin, we have a complete disagreement. trump is the guy with the educational choice program, and i don't know how on earth you can't vote on that if that's the most serious problem we face. kevin, appreciate you being with us, a serious issue and we'll have more debate. i promise you that. juan williams, once you get him on the set, you can't get him off and he's still with us. >> i have nothing else to do. hang around the number one show in america. stuart: thank you. flattery is the mother's milk of television. i thought that was interesting. >> interesting. stuart: intelligent guy who agrees trump has a plan that he likes that is tackling the question america thinks it faces, but he won't go for him. what's going? >> in terms of what trump stands for and the messenger

he's become. stuart: the kids are at stake here! >> let's go to the kids, to the plan, trump says he's going to pass $20 billion in terms of block grant to aid the development of more charter schools. you and i would say because i'm a big charter school supporter as is kevin, yes, he doesn't say where the money is comin from. we have no idea how it affects things. stuart: i'll tell you. >> go ahead. stuart: at the moment, the federal government has $90 billion a year, which it farms out to the schools. >> yes? stuart: he proposed it to take 20 billion of that, give it in block grants to the states to encourage school choice. >> wait a second. that's not new money. it's money that's already committed. some of it committed to title 1 to help poor children and the rest. stuart: someplace else. >> he has not said, stuart. if he said, that would give him added credibility. >> the important detail is school choice is a must for

minority communities. it's the only way out of these lousy schools. >> stuart, let me allow me to play stuart varney. i would say to juan williams, juan williams, what's going with hillary clinton, who was a school choice advocate but once the unions got in her head, suddenly said, well, you know what? i'm worried about school choice and cherry picking, that's what i would say to juan williams. stuart: all right, i just said it. >> guilty. that's a good argument. stuart: that's a fine point, guilty. i like that. thank you very muching are indeed. we appreciate it. >> thank you for having me. stuart: time for the sector report about oil. the weekly oil report showed the biggest weekly drop in oil in storage since january of 1999. boy, did we draw down a lot of it. jeff flock live in chicago. this caused oil prices to do what? because we're down now. >> reporter: down now, but i tell you, we had a huge run-up.

last wednesday when we break the numbers some days, i would have looked at 14 million in the drawdown and would have said i think the numbers must be wrong. they were right. the market thinks it's a one-off. we accelerated farther to the downside. we gained about 4 1/2 dollars, now down buck and a quarter. it's no big thing. the drawdown had a huge impact on the market. stuart: jeff, thank you very much indeed. directly to the stock markets where the price of oil down so much, that's pushed the dow down a little bit more. now we're up 185 points. i'm not going to use the expression webster ratio, but i think you might be right. >> you can hint of a rate increase from the federal reserve. stuart: that's hurting stocks and the price of oil also. >> and a stronger dollar. stuart: north korea detonates a nuke as president obama returns from his very difficult trip to asia. north korea also says they can put the bomb on a missile.

next, the navy vet who confronted hillary clinton to her e-mail scandal. watch this. >> had i communicated this information on following proscribed protocols i would have been prosecuted and imprisoned. secretary clinton, how can you expect those such as myself who are and were trusted with america's most sensitive information to have confidence in your leadership as president when you clearly corrupted our national security? hold, because my dentures fit well. before those little pieces would get in between my dentures and my gum and it was uncomfortable. even well fitting dentures let in food particles. just a few dabs of super poligrip free is clinically proven to seal out more food particles so you're more comfortable and confident while you eat. so it's not about keeping my dentures in, it's about keeping the food particles out. try super poligrip free.

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. stuart: remember "varney & co." starts at 9:00 a.m., here's what you missed last hour, john stossel on gary johnson. >> all the media are playing the clip as if they were talking about syria. asking about politics, who are you going to take votes from and suddenly what are you doing about aleppo? if i were there, i would have said a leopard? it came out of nowhere. he knows what aleppo is. >> i'd rather have a president who doesn't know what aleppo is rather than one that wants to invade syria. stuart: that's the first time i've seen you hot under the collar. >> hillary would want to invade country after country.

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. stuart: now at the low of the day, off 18 6, 187 points, more on the reasons nar in just a second. we are down triple digits. how about data network equipment maker called finisar,

the stock is up 13%. here's the story, the 10-year treasury yield is going up. it's now at 1.67%. why is it going up? and why are stocks going down? because the chair of the federal reserve of boston, he's hinting that the central bank may raise or may be ready to raise interest rates. so they're selling treasury securities. that means the price goes down and that means the yield, which you're looking at now goes up, yield's up and stock's down, that's what's happening in large part because the fed's hinting at a rate increase. that's what's going on. get to hillary's e-mail scandal, please. the man on the screen is lieutenant general jon lester, he questioned hillary clinton about her scandal during the commander in chief forum. >> i held compartmentalized information clearance and that

provided access to materials and information highly sensitive. had i communicated this communication i would have been prosecuted and imprisoned. secretary clinton, how can you expect those such as myself who were and are entrusted with america's most sensitive information to have any confidence in your leadership as president when you clearly corrupted our national security? stuart: and she responded to that by saying she'd never seen a marking on any of the, mails. confidential, top secret, et cetera, that's what she said. this morning following that, here's the editorial board of the "washington post" saying that hillary clinton e-mail story is out of control. lieutenant jon lester, the man who asked the question is with us right now. jon, welcome to the program, good to see you. >> thank you, stuart, thank you for inviting me to the show this morning. >> in hindsight, how do you feel about hillary's response, i never saw a marking of confidential or top secret and

the "washington post" headline, the e-mail scandal blown out of control. what say you now? >> stuart, i'm angry and imagine every veteran who stood in the stadium with me is angry as well. we were yet again lied to. and the interesting thing is that it's one thing to lie to the american public who in some cases probably doesn't understand the ramifications, but for myself and fellow vets, it's deceitful and awful from my perspective. stuart: we've had on the program the mother of a young navy man who took a picture, a selfie on board a nuclear submarine, he stored the picture in the pc, destroyed the pc, didn't send the picture to anybody. he's in prison for a year. his mother says he did exactly what hillary clinton did. she's running for the presidency. he's in prison. i think that's what you're talking about, isn't it? >> no, what he did was trivial compared to what hillary did.

the fact she destroyed 30,000 e-mails. with the content of the e-mails alone would be enough to hurt us. i think when she lies, our people die. she did this in benghazi. i saw this in other instances. my last two years, i flew very sensitive operations, i can't discussed them. i actually signed a statement i wouldn't discuss these in the next 50 years to give you an idea how sensitive these are. it doesn't take intent at the end of the day, it's her casual dissemination of our information that can be captured and used against us. wars have been -- major battles have been lost on less information than most likely she provided to her comrades and people she communicated with. stuart: john, take me back a little, how were you recruited to appear in the commander in chief forum? and i take it the question was prescripted. you knew what you were going to ask.

did you know you were going to be one of the questions? >> that's a great question. i was sitting in my office and my wife walked in, she'd seen this online. my wife is a very strong supporter of the military and said would you like to ask a question? and i said, sure, why not? it's something you post online. never expecting to get selected. but the question i presented to secretary clinton was essentially verbatim the question we had submitted online and apparently msnbc really liked the question, and so i was very surprised they called me up and allowed me to ask that. stuart: what didouhink? you gave no response, your face showed no response to her reaction when she said i never saw a header, i never saw c, classification. what was your response? i don't think we saw it all on camera? >> i tried my best to maintain my composure.

but you have to pardon me, stuart. three weeks earlier and no disrespect to director comey. he had stated to congress that she clearly had transmitted messages with a c in parentheses, classified information, and stands there and clearly says to myself and to every veteran there that she did not. stuart: well, you restrained yourself well, john, we are glad you appeared on our program with a smile on your face. john, thank you, sir? >> thank you very much, stuart. stuart: we'll be back in a moment. ♪

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the president looked out the window and the president said look at these people. look how great they are and giuliani looked over at him and said, mr. president, i hate to be the one to tell you this, but not one of those people voted for you. and it was a very true statement, but it talked about the resilience of the city. it talked about the people coming together, uniting. stuart: that was former nyc police commissioner bernard kerik from the last hour. take a look at this, our producer alex filling in stuart and here's what we have including this. hillary clinton is concerned for her safety. why? because she says donald trump insights violence. and the uk building a wall to keep out migrants. liberal groups say the uk is cruel, they should be building a bridge to europe instead. hmmm. hour three, three minutes away. who's with me? i'm in. i'm in. i'm in. i'm in.

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stuart: donald trump plans revolution in education. his plan upends the established order. you would think such a dramatic plan for a key part of our lives would get publicity. as we ignored, barely mentioned thestlishment media, the plan is simple and doable, school choice on a mass scale, money now spent by the federal government would be handed to the state as a block grant. that gives educational power back to the states. disadvantaged youngsters would be allowed to choose which school they wish to attend. charter schools, parochial schools, a ticket is a math about to the teachers union, they hate it. it takes away their monopoly control. they are huge supporters of

hillary clinton because she opposes school choice. what is the media to do? ignore trump of course. ignore his plan. call him a racist. anything to distract the serious policy proposal. the left and the media are quite prepared to dump america's youngsters into failing union run schools and keep them there. in my opinion that is a disgrace. we will get to trump's education proposal. let's look at the market. almost the low of the day, we are down 184 points, below 1830 on the dow. oil is down 2.5%, $46 a barrel. as for the 10 year treasury yield, higher since the british exit vote, 1.67%. wrap up the factors, the dow

goes up and down. ashley: eric rosenkranz says there can be a case made, it adds a lot more weight to what he says but i think a case can be made for a rate increase to stop overheating the economy. that in turn has investors dumping treasuries meaning treasury prices are down, interest rates go up, the dollar is stronger which in turn the price of oil is down. there is a link between all these events. the market is up 185 points. stuart: that is a fine explanation. let's get back to donald trump's education plan. trump says it will help millions of poor children, trump also says the democrats have trapped minorities in failing schools. listen to this. still you just >> millions of african-americans in inner-city are trapped in

poverty, joblessness and failing schools. these are the worst schools you will ever see. the democratic party has run inner-city for 60, 70, even 100 years. stuart: joining me, fox contributor, what do you think of trump's plan? >> i think trump will do for education what he will do for america which is upends all the federal government bogus policies that do not work. education in america is a manufacturing plant. don't know why people don't see it this way. it is a business, manufacturing business. the unfortunate thing is democrats know that 70% of the product makes it off of the line, 30% of the product doesn't make it off of manufacturing,

50% of the product doesn't make it off the manufacturing line, that is just high school. then you get into the real manufacturing center of college and they say look to your left, look to your right, a percentage of you are not going to make it off of the manufacturing line. ask yourself what a manufacturing person would do if 30% of his product didn't make it off the line at one point, 50% are black and 30 or 40% didn't make it off of the line, he would be fired. we would be limiting statistical process control, manufacturing techniques, manufacturing from a business perspective, 98% throughput and you put your 2% focus on what doesn't come off of the product 9. we don't think like that and that is what trump is doing and his policies will work. stuart: is there a vote among black folks, simply, you want school choice or don't want school choice and no party labels attached, no democrat, republican, nothing like that, you want school choice you don't want school choice, what would the vote be? >> overwhelmingly want school

choice. there is a case, a lady named tonya mcdowell, a homeless black lady wanted her daughter in a better school, she put her in another school system, she got arrested on felony because she wasn't paying taxes theoretically in the school system. this happens all the time with a couple in baltimore put their kids in better schools in dc, hard to believe and they are charged $100,000. school choice is the only thing we should have, you have a choice where you grocery shop, what movie theater you go to but not when it comes to one of the most important things in your child's life. stuart: thank you very much. spell it out clearly, we like that. next case, steve core, donald trump's senior economic advisor. how will donald trump fund this education plan? >> great question. thanks for having me back as usual. reallocation of the existing

dollars, this bright, brilliant plan will do what kevin highlighted, it will change the wife of 11 million of our fellow citizens that are living in poverty. if we want to change the direction of this country, get back and become great again, what better thing can we do to invest in than our own children? stuart: does it require new taxes or a new source of revenue to pay for this? it simply reallocate existing dollars, specifically $20 billion which would now be made into block grants for the state, that is the story? >> exactly correct. the idea, let's put the power, put the money back into the hands of the states, into the hands of the people, let's empower the american people to make great decisions. the same stands true for spending and defense, reallocation of waste. stuart: that is what i am getting too. we have reports that donald

trump's military proposals would add $150 billion to cover more people, more equipment, more navy ships, etc.. that is the new report, create a deficit of $150 billion. what is your answer to that? >> it is so appropriate we are talking about this on memorial weekend when 3000 americans were murdered going about their daily life on american soil. i want to thank them and my fellow veterans for their hard work, fighting this battle. if you look at waste, last year alone, payment by the federal government in excess of $135 billion, just creating a system by which we correct the inefficiencies and errors in our own government, we can remove the sequester, reinvigorate our military. pay for the changes that are necessary. of the one how many politicians have said we will eliminate all

this waste, it never happens. >> that is a very good point. if you look at what the american government spent last year alone, $320 billion on laws that expired. combine those two alone, those two minor areas alone that is $450 billion of new found money that could be reallocated in what this government's first priority is, to provide for the public defense. stuart: change the education system please. appreciate you being with us. i got some videotape. look at that, a florida man left his samsung smart phone charging in his jeep. the battery exploded, the jeep went up in flames, nobody injured. there is a better shot. liz: the family dog spotted

this. stuart: nobody injured. but the jeep is gone. bad pr for samsung. the faa is warning travelers don't bring your samsung phones on flights. ashley: some airlines, the virgin flights said can't bring them on board, can't put them in stowed baggage, don't want anything to do, lithium batteries, a problem with these and other devices, there is enough that if you have them don't turn them on or try to charge them on a plane. the faa warning against that. of the one i would think that is good news for apple, apple stock is down today, and a response to the samsung bad news. liz: the iphone uses lithium-ion batteries too. what is interesting about this apple is not going to disclose its first weekend sales number

and it is not doing this. stuart: you can preorder this weekend but won't tell you how many reorder. liz: they have been struggling with iphones. stuart: news alert, the vw emission scandal, one executive just pled guilty to charges. ashley: at german national basically lead volkswagen's diesel engine unit, 33 years, believed to be the lead engineer among the crew that developed this device that was put inside the vehicle and would enable these cars to pass any missions test when they were not in test mode, 40 times epa standards. stuart: any idea what it will bring? ashley: doesn't say. yet to be decided. stuart: will the germans was at her for in this instant? ashley: hopefully. stuart: market scan, the overall market, the dow down 180.

only one of the dow 30 stocks is up. what is that? can't read it. thank you very much. the only winner of the dow 30. the mainstream media wishing hillary's email scandal would go away. the washington post says the scandal is out of control. benghazi hero, an outspoken trick of hillary clinton, will join us in a minute. the uk slammed building a wall to keep out migrants, liberal groups say it is cruel, dangerous, bad for migrants. we will be back.

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stuart: a deadly train derailment in northwestern spain, the train was headed to portugal, the drivers among the dead. we are seeing one of the trained cars completely off the track slamming into the wall in northwestern spain. french authorities arrest three women in connection with a foiled terror plot outside notre dame cathedral. there were women that were radicalized. ashley: 19 am a 23, 39, one of them found the car, yards from notre dame cathedral with those gas cylinders inside, no detonators or anything. that is the link. counterterrorism authorities believe these women in the course of launching an attack on a train station. they got to him before that happened. >> do you know their cultural background? stuart: we don't have names or pictures. they arrested them.

ashley: exactly. stuart: the mainstream media clearly just once the hillary email scandal to go away. they say there are more important issues to discuss was how about this headline from the washington post editorial board, hillary clinton email story is out of control. enough already is what they are saying. joining me, the american legacy center, you fight in benghazi. i have a feeling the mainstream media will have its way, we will move on beyond all the email scandals, the benghazi scandal, we will get on with the election, it is going to happen. >> i am not going to let it happen. veterans won't let it happen. not just the email scandal, she violated national security and continuously lied. by the washington post, the new

york times or msnbc saying this is a nonissue, it is not. i am not letting it go away. stuart: the commentary is donald trump doesn't have the right temperament to be the president of the united states and you are saying hillary clinton lied to the face of one of the victims of benghazi. what do you make of this storyline that is being encouraged that trump doesn't have the character to be president. >> it is smoke and mirrors, difficult left-wing, trying to direct people's attention away from the real problem which is hillary clinton is delusional as she is. by saying we didn't lose anybody in libya that proves to me she is completely out of her mind or lies so much. stuart: i am going to roll that

soundbite, nobody died in the toppling of qaddafi. role that tape. >> i put together a coalition that included nato, the arab league, we were able to save lives. we did not lose a single american in that action. stuart: not lose a single american in that action. he is referring to the toppling of qaddafi. in all fairness i don't think she is referring to what happened in benghazi. >> that is a play on words. it is a typical political move. it is what the left does well, the way they rationalize what they are trying to say, we did lose people. i saw them get blown up. i had to break glenn's on when rigor mortis got into get him into the sheet so we could fly home from benghazi to tripoli. i saw the death. i saw the ambassador from a foot away when i inspected his body.

i don't care what she is trying to say or what she meant to try to say i am tried of her trying to rationalize this. she failed, libya is a failed state. stuart: to the benefit of our viewers who did not see you on this program before, give us 30 seconds on what you did in benghazi that terrible night. >> myself and my team tried to get over -- we were told to wait and sound down. we were defined orders, got over there, thought our way on foot, it took 30 minutes to go 400 m. it would have been overrun, we proceeded to save as many lives as we could. we found the ambassador's body, he was dead and we could not find the ambassador, we got to the annex, got three more firefights, one was pretty heavy, we were hit by 81 mm mortars and proceeded to utilize qaddafi's loyalists, people the administration and hillary were getting out, those are the

militias that saved us which is ironic and we got to the airfield in benghazi and proceeded to wait until the libyan air force got us out of there and rented a plane. no us assets came to support. stuart: four years ago this weekend and i bet you live with it every single day. do you not? >> every day. stuart: thank you for coming on the show. always a pleasure, appreciate it. back to the market, where are we? we are down dow 30 stock in the red. that tells the story. football has arrived but not without controversy, brandon marshall, number 54, he kneeled to protest the national and them, he was a teammate with colin kaepernick in college. defeating serena williams, in

straight sets at the u.s. open. carolina of the czech republic, the winner, still tied with 22 grand slam events, becoming hard for her to break the all-time record. the uk building a wall to keep migrants out. liberal groups say the wall is not the answer, the uk should be building a bridge. ashley has something to say about that. (announcer vo) who says your desk phone

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stuart: we have been telling you for a couple days about a wall being built in france to keep migrants out of britain. they have their own wall. that is not going down well with liberal groups was one group, doctors without borders, says it is outrageous as it is ludicrous. of the groups say it is cruel and goes on and on. ashley: outraged at the outrage. it is ridiculous. these critics say it hurts the already fragile mental health of the traumatized people. the same traumatized people who are threatening the lives of truck drivers trying to get through calais on their way to the uk, pelted with rocks and

shopping carts and in some cases tree trunks to get those trucks to stop so others can jump on the back. they are going to build this wall and make it smooth concrete to make it very difficult to climb. these liberal groups, refugee groups say it is unkind and not going to work. liz: it is illegal and dangerous for migrants, i understand they are fleeing oppression. it is illegal and dangerous for them to make the crossing like they are and throwing rocks at trucks. stuart: you are all headline. leprosy in california, east of los angeles, disinfecting classrooms and hallways, leprosy is a severe skin disease, extremely rare in the united

states between 2 cases in california. hillary clinton gives an interview on israeli television, she says she is concerned about her safety because trump encourages violence. believe it or not, the new richest man in the world is not bill gates or warren buffett, all will be revealed momentarily.

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it's almost the low of the day. eighteen to 96 that's where we are. doyle is -- oil is down. interest rates are going up. there might be a rate hike later this year. down we go on oil. donald trump will speak later today. in washington dc. they will be social conservatives. it won't be long before he

gets to another podium. i am calling this a slap in america's face. the nuclear device yet. they did this just as president obama left asia after his near disastrous to her. the administration has responded to the test and says this today's test of multiple security council resolutions makes clear the disregard and demonstrates no interest in being a responsible member of the community. joining us now. the republican from texas. i say this is a slap in the face in america and you say what. >> i could not agree more. this is more of the same. weakness on the part of our

president. serious consequences. this is the same president that drew a line in the sand. actually $1.7 billion ransoms to the government of iran. i think we have come to the point now. they no longer respect or fear us we need to have some serious coequences here they dismiss the threat and dismiss donald trump as having anything to do with fixing this problem for example, a couple of days ago donald trump >> reporter: recommended a missile defense system. for as i say to deal with this kind of threat. that is lost in the establishment media.

>> you are so right. the congress passed a very strong sanctions bill that was signed into law by this president. against north korea. all he has to do is enforce the law and some serious put the squeeze an economic hurt on this regime. it endangers millions of people the testing of nuclear devices something needs to be done. it has to be hurtful. their leader we all know is about a bubble off that's what we always a down in texas. something has to be done. i want to go to ashley webster my colleague here. we've we mystery about an illegal immigrant accused of serial rape and deported five

times. it was a sad story. you are seen him right here. he has been arrested numerous times he has been deported five times but he's keeps coming back now accused of serial rape. they tried to set her on fire. he's now in jail this is a classic example of this. they won't be able to come back. what do you make of this. this is a horror story. this occurred in austin let me tell you i am a proud texan but austin is a democratic control city and county they are a sanctuary city. this is not the first nor will it be the last time that we see this going on. until we take some effective

action cut off federal funds across this country including this crazy lack of turning these people over and then when they come back in the have the revolving door where is mexico we have extradited these people across the border. we need to enforce this. this man should've been in jail and mexico. when he comes back here for the fifth time it just tells you our broken immigration system and the lack of this administration of border laws is out-of-control. i would like to see hillary clinton ask about that. thank you sir we appreciate it. >> hillary clinton in an interview with israeli tv

called trump supporters racists and heaters. they fear for their own safety because of violence from those trumpet supporters. >> are you concerned that this violent matter rhetoric might translate into violent action. >> i am certainly concerned because of the very explicit incitement to violence that i had been a part of the trump campaign from the very begin. a lot of his rallies during his primary campaign there was encouragement of violence. >> joining us now is leslie marshall. welcome back to the program. it's good to see everyone. i don't think a presidential candidate in the unit states united states of america should go on foreign television and label the supporters as haters capable of doing violence against her.

i think that is using extreme language which is highly unjustified. and you say what. >> i disagree. strongly. trump's oaks person and try to clarify any kind of violence towards hillary clinton and basically said that they only meant that donald trump that they would be shot if she wanted and that's very dangerous rhetoric. in response to what you said and saying that supporters of him a racist or violent we have seen violence and i do think. >> the violence that we have seen in this campaign so far has largely almost entirely come from liberals who were spitting on trump supporters and beating them.

i won't disagree with you there but i have never heard secretary clinton talk about pain paying for a lawyer to defend somebody who assaulted an individual who happened to be african-american and was not a trump supporter i don't hear secretary clinton wanting to be in an entire religion i have not heard secretary clinton say the rhetoric that donald trump has with regard to them coming into the nation of mexico. the list goes on. i do think it's fair that that that is her opinion i also think it's very fair that she made that remark especially when we heard the trump spokes person say they were shooting a potential president. if she wins the election. we clearly disagree. thank you for being with us. we clearly disagree.

thank you for being with us. the polls are tightening in key swing states. trump is catching up with hillary clinton and overtaking her and some of the states. that is a story there. and while the navy has a brand-new ship it's called the self destroyer. it is a largest most technically sophisticated ship yet. i guess that wlde missile 70 miles away. we are back in a moment. remember here at ally, nothing stops us from doing right by our customers. who's with me? i'm in. i'm in. i'm in. i'm in. ♪ ♪

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next meeting is on the 20th and 21st. also the dow components and were seen that. (announcer vo) that's right, keep rockin'. siriusxm's free listening event might be over, but now you can turn us back on with packages starting at $5.99 a month, plus fees. just call 855-874-7746

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all read all stocks down. that's why it's down. attention virginia tech students. alphabet that will be google interpol they are bringing burrito delivery to your campus. if you would like to know that. they have fired more than 5,000 people tell me what they were up to. >> what it was it was sales reps tried to meet quotas. they took deposit and credit card accounts is and not only that. then they would take money from authorized accounts without the permission without this. they were wanting to boost their sales numbers. it is just 1% of the company also paid hundred

85 million-dollar fine. it's absolutely outrageous. wells fargo does not admit or deny any wrongdoing. >> losing her lead in the battleground state hillary clinton is now on the campaign trail and attacking trump. joining us now is fred barnes. he is with the weekly standard. she has been forced out of her corner to some degree and she is just attacking trump. i think it is a real race. the battleground states show it. initially there was a clear trump gain in national polls.

and he is a little behind in north carolina but i say that as a state romney won. the key state is pennsylvania. is the closest trump has been certainly since the convention and going back much earlier than that. he has momentum. i think hillary might have a hard time rehab stab us in her own momentum. one she is attacking trump and now she said i'm getting give some very subsidence speeches over the next couple of weeks. that is what trump has been doing. pennsylvania is so important and it is clear where the votes are the trumpet have to get. they are in the suburbs outside of philadelphia. some are in the north and the more middle-class.

trump is getting killed there. this is an educated voters a lot of them were republicans but they haven't bought the trump candidacy yet. >> they are all suddenly democrat. what the devil happened i think it was social issues that drove them over to the liberal democratic side. they don't get upset about pornography. they hate and control they hate guns but trump is can have to make some inroads there. i don't think they help to much on the non- debate. there are votes to be gained there. the libertarian candidate got 9% in pennsylvania.

his can have to get a majority of that. it is possible 5% behind in pennsylvania is one of them. it is a real race. thank you very much indeed sir. it's all down. north korea is facing more sanctions from the u.s. because of a nuclear test but there is another story coming out of that country today. he just came out with a new band he's going to impose this on all of his people. this could be a hard begin to enforce. and the world's new richest men. as a european. back in a moment.

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joing now by phe. with the american enterprise they told us it was china which okayed the blast. it is china that ran president obama out of town. do you agree with that i think china has been less than honest ithe itedtate although they y venethserisl china is winking and not. they have brought us into this extremely to this extremely dangerous point. this blast based on the seismic result puts it in the range of the atomic bomb that destroyed hiroshima. whether they put on the top of

the missile or sells it to a terrorist organization. this threat level is very high for the united states. shouldn't we be mounting a missile defense around north korea. i think the south koreans in the japanese are aware of their need to do that and indeed south korea and japan our both taking steps to the end. they can't mount it. it is not under barack obama. it is the united states who is taking the program that they launched after the treaty. it's a very significant campaign issue. they actually think their government should defend them against a rogue missile attacks.

thank you very much for joining us. it is a serious subject. i wish we have more time. stuart: one other small item on north korea they are trained to be in something. >> you can no longer offer the sarcastic gibes. i was just looking at things you cannot say. you can't say this is all america's fault. he also can't say someone who cannot see the eye side ruled. they can have sarcasm police going around. just shut up. it would be a sign of desperation. they have. it's not funny. that's the way it is. thank you very much indeed. the low of the day down 223 points.

just the hit hint of the rate.

the very pinnacle has changed. there is a new guy up there. he's an 18-year-old spaniard. he is the founder the very popular and profitable clothing store in europe and around the world. close to $80 billion. he just went past bill gates. his start went up too and half percent on thursday and that gave him a nice bump. he must have a gigantic proportion in stock and he must have i can't believe it's worth much more than that. that is the biggest question.

i know that's what neil caputo would ask. the incisive question. i think he's there. so who do you think he supports. i find it interesting that you immediately seized on his age why because i am approaching that age. the first i thought it was 18. >> thank you very much. i enjoy kicking off the week with you as well. it is what he is up to but the house has gone ahead and okayed that september 11 bill there can be looking at the 15th anniversary on sunday it might have bn