loving this car! thank to my panel. have a great day. right to stuart varney we go. "varney & company" begins right now. over to you. stuart: my maserati does 185, i lost my license, now i can't drive. do you remember that? joe walsh, i believe. you didn't think i knew that. maria, thank you very much indeed. bang! it's 9:00, here we go. we've never seen anything like this before. donald trump all business. the hyperactive president-elect. good morning, everyone. look at this, under pressure from trump a new deal from boeing on air force one and a new deal from lockheed martin on the f-35. a new national trade council, varney regular peter navarro will run it, wrote the book "death by china". the deregulator in chief and a new policy on clean coal. trump will bring back incentives. all of that in one day.

this morning, already, kelly anne conway appointed to be counsellor to the president. this is why the dow remains close to 20,000. investors are betting that trump's pro business, pro growth team will deliver and deliver us to 20,000. we're 58 points away, yes, we have that graphic away. the 20k edition of "varney & company" is about to begin. ♪ ♪ hark the herald angels sing, glory to the newborn king ♪ >> now that's christmas music, okay? none of this classic holiday stuff. this is-- no, no, no, who is that? that's frank sinatra. [laughter]

>> i'm moving to hoboken, number, how about that. we're playing you christmas music and yes, of course, we're still on dow 20,000 watch. we are, i believe, 58 points away, i've got to tell you the futures are pointing a tad lower for the opening bell this morning. about a half hour from now, i'm going to call it dead flat, 58 points away. i'm going to get to germany now, they have still not found the christmas market terrorist, that's who he is. a tunisian migrant previously investigated for ties to terror. he wasn't allowed to come to america. germany couldn't deport him. they tried and he didn't have the proper paper work so he stayed. they're looking for this guy all over europe and he's still on loose. look at this, the christmas market, scene of the berlin terror attack, reopened today and they're calling this a sign of defiance. concrete barriers block the entrance where the truck came in other than that trying to

make it look like business as usual. president trump, i am a-- i'm going to call him the deal maker in chief. >> and china get the costs down and we had the chairman of boeing, ceo, and i think we're looking to cut a tremendous amount of money. stuart: i don't think we've seen a president-elect or anybody else strong arm major american corporations quite like that before. look who is he. washington examiner columnist lisa booth. >> hi, stuart. stuart: you've never seen anything like this before not just the strong arming of big business, but the cabinet assembled. >> this is the guy who wrote the art of the deal and he says he's going to be a deal maker and the lightning pace he's filled his cabinet choices and the fact that he's running-- or picking his cabinet choices from a business standpoint and the sense i think there's going to be a lot of delegation. he's picking a lot of people

who have either been successful in their own right as ceo's. generals who have obviously run the military capacity. stuart: the left hates this. >> or governors as well. they hate it because it's going to be fundamental. stuart: business people, generals. >> i think they hate it more for the fact based off the choices he's made the entire government the way the system has been running for the past eight years is going to fundamentally change. betsy devos will bring school of choice and fundamental changes to the education system. look at scott pruett, attached for epa chief, changes to the epa, rolling back the regulatory authority. stuart: the objective is reverse obama's policies and change the way that government does business. and he's doing it. >> yeah, absolutely he's doing that. i mean, and we're just going to see those big changes keep going through and i think that's why you've seen sort of the left, their heads are on fire is because they're seeing him pick all of these cabinet choices that really want to fundamentally change the way

that those agencies are run and also the way that washington works. so, we're going to have to get our popcorn out and watch the confirmation hearings because it's going to get interesting in washington d.c. stuart: who said, elections have consequences and you lost. i think president obama in '09. >> go back and watch that. stuart: and the editor, i want you to comment what donald trump is doing with lockheed martin and boeing. i say he's strong arming that. a lot don't like that. >> the stock price, boeing is up 11% since election day. a lot of people don't think it's bad for boeing. the presidential plane is a tiny part of their revenue. boeing has much more to gain from the reflation trade happening under trump. oil prices are rising and airlines around the world want to buy more fuel efficient mraenls.

stuart: do you have any objection to the president-elect of the united states calling in these guys and saying, hey, hey, hey-- >> i don't have any objection to him talking about bringing costs down. let's be honest here, if this was obama doing this, you would have defense officials all around the country saying he's trying to destroy the american military. trump is getting away with it. i'm not saying it's bad, it's a sign that trump may make changes that other presidents haven't made, and may be there's-- >> i thought you would say that's a terrible thing to do in a capitalist society. >> i'll wait for him to do something terrible, so far it's tweets and talks. stuart: and today he names the former campaign manager kelly anne conway as his presidential counsellor. i weighed in factors including my children and i know it's going to be a family friendly west wing and white house and

i've seen him with his children and grandchildren and decades in years of the trump corporation. i'm fine on that. stuart: a lot of people, feminists attacked kelly anne conway because she might prefer to spend more time with her family as opposed to take a job in d.c. lisa booth, what do you say to that. >> she's attacked because she's a republican. she's never going to get credit where credit is do, the first female presidential campaign manager to successfully run a campaign. if this was a democrat who successfully run the campaign that's all you would be hearing about. the republicans will never get their fair share. stuart: isn't she doing what she wants to do. she can and will spend time with her family, they're moving to d.c. and at the same time, she can and will be a counsellor to the president. that's having it all, really, isn't it? >> and she also has, i think, four children, a successful

business woman as well. stuart: under 12. >> and running a presidential campaign successfully ever the first time as a female, successfully as a mother as well, of four. so i think she'll be just fine and i think it's a positive decision for donald trump. stuart: shake your head, you've never seen anything like this before. >> we established that at the beginning of the show. we got that out of the way. stuart: you've got a front row seat on history and it's made in front of your eyes. this is fascinating. three days until christmas and i'm going to call amazon the stock of the year, the stock is up 14% in calendar year. they are the on-line kings. set that against this. foot traffic in the bricks and mortar stores, shopping malls, down compared to last year. some of the biggest names you know announced store closing, aeropostle, macy's, office depot, wal-mart, a long, long list of them closing bricks and mortar stores.

tom sullivan welcome to the show and great to have you with us. >> thank you. stuart: this is the amazon effect, isn't it? >> listen, my shopping is 99% amazon so i skew the results, but really is so much more convenient, so easy. it's now trustworthy. remember in the early days, you ordered something on-line and maybe it got there at christmas and maybe it was january 15th. now it's like clock work, they've got this down. stuart: and i think that a lot of the shopping malls are going to close. they'll lose their anchor store am i going too far? >> you're talking to the wrong guy because i'm not a shopper. i would prefer to do any-- i'd prefer to have a dentist appointment than go to the mall. stuart: me, too. financial analyst jack hough. >> a lot of stores are going to close and you could see retail bankruptcies in the next couple of years. america is vastly overretailed. all of these guys are adding stores and the chiefs i've

talked to it's about omni channel shopping, we're going to get them in the stores and on-line, it's not working, there are too many stores. stuart: i've got this for you from snap chat. this is a disappearing message app. they're going public next year. they've put disney's original content on snap chat, that could be big, especially for the ipo that's coming. we have this, dana white, a man who built a multi-million dollar sports business ufc is talking about challenging the nfl for your sports dollar. he's a big trump guy as well. the president-elect moving-- meeting with dozens of the nation's top military brass in the country, that was yesterday. what was that meeting all about? we'll get into that. and we couldn't resist showing you this. these are pagan losers. this is britain. they're gathering once again, this is stonehenge, how cute. they're parking the winter solstice, the shortest day of

the year and beginning of winter. we won't see them again until june. thank heavens. [vo] is it a force of nature? or a sales event? the season of audi sales event is here. audi will cover your first month's lease payment on select models during the season of audi sales event.

>> the political correctness worked for khalid shaikh mohammed, it allows them to work in our midst without challenge and sharia law without us pushing back on it. and we end up inadvertently imposing on ourselves the blasphemy laws of sharia because we cut back on the things that they find offensive. stuart: well, that was dr. james mitchell, the man who interrogated 9/11 master mind khalid shaikh mohammed. he appeared on the kelly file last night and talked about how the rise of our politically correct culture contributed to the spread of islamic terror. come in fox news military analyst thomas mcinnerney. i presume you would agree with mr. mitchell, but i want to

talk about president-elect trump meeting with a dozen admirals and generals. did that have to do with terror? >> it did, but with the air force one and f-35, stuart. plus, i think the president, he's a master, as you and lisa were saying, we've never seen anything like it. he is a master of judging people and i think he wanted to see the top military leaders. they are absolutely delighted that president trump is going to be in office the 20th of january. they have been through hell the last eight years, if you look at the south china sea, the ukraine, middle east, afghanistan, everything that this president has brought about and destabilized the world and they've had to sit and watch it. stuart: okay. now, i want to show a brief sound bite of president-elect trump talking to reporters about muslim immigration, roll

tape. >> has it caused to you rethink or reevaluate the plan-- you know my plan all along to be 100% correct. what's happening, an attack on humanity is what it is. it's an attack on humanity and it's got to be stopped. stuart: now, let me just add this, general. the trump team says they're going to stop federal funding to cities-- is that part of the terror drive? >> absolutely. we are protecting immigrants that we don't have any background, particularly travelling them out in l.a. right now, and in the airport, there are more immigrants travelling through there and you could see they were freshly arrived and they're being sent to states and people in the states, the governors don't even know they're coming in

there. so that's got to be part of their strategy to defeat radical islam. the important things that those generals and admirals that you saw yesterday, on the 20th of january, they're going to call the threat radical islam, not violent extremism with this administration has. they will now know what the ideology they're fighting is. stuart: do you think that mr. trump as president, will use military assets to go and fight literally fight over there against isis? >> i think he will use military assets, but he's going to let the muslim nations, who must pick up the fight on the ground, they are the ones that must defeat radical islam, it's within their society. you don't want infidels doing that. we proved that didn't work when we moved out of iraq even though we put in effort, we didn't win their hearts and minds, they just wanted our money. now we will use our

intelligence, air power, the advantages that we have to defeat this ideology and to defeat this force, but we must defeat the ideology and define it, just like dr. mitchell was talking about. you cannot have sharia law in the united states. it directly violates our constitution and yet you have in these communities that they want sharia law. you have it in the united kingdom which you know very well. you cannot have it. stuart: i suspect, general, that you're a happy man with president-elect donald trump. i'll leave it at that. merry christmas, general. >> i am very happy. stuart: i know you are. >> thank you, stuart. stuart: i was looking for the smile and i've got it. boeing is looking at a deal to sell plans to iran. >> airbus is there with that pile of cash that they picked up, they're buying some expensive airplanes. airbus says they're selling to iran 40-- well, it's a total of 100 jets, 46 a320's, and a bigger yet and

16 a-350's, the brand new once they're coming up with, it's going to start deliveries in 2017 so iran, spending that money. stuart: yes, okay. i've got it. how about this? another frequent varney guest joins the trump team. peter navarro wrote a book "death by china", he's going to head mr. trump's new trade council. what does it mean for trade "death by china" written by that guy. and we're on 20k watch, 58 points away, three days until christmas. back in a moment. (vo) it's the holidays at verizon, and the best deals are on the best network. with no surprise overages, you can use your data worry free and even carry over the data you don't use. and right now get four lines and 20 gigs

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i've spent my life planting a size-six, non-slip shoe into that door. on this side, i want my customers to relax and enjoy themselves. but these days it's phones before forks.

they want wifi out here. but behind that door, i need a private connection for my business. wifi pro from comcast business. public wifi for your customers. private wifi for your business. strong and secure. good for a door. and a network. comcast business. built for security. built for business. >> what china has done to our country is the biggest theft and the greatest theft in the history of the world. this is the one i didn't want to hear. give me china. give me china. china. >> you ever see china's? >> china. >> china. >> china. >> we don't win anymore, when was the last time we won? we lose to china. stuart: well, on the subject of china, mr. trump has named

peter navarro hawas named, and e is no fan, he wrote a book "death from china", jack from barons'. the market is worried about a full scale trade war with china. >> we don't want a trade war. we want to stick it to china in places where they've been cheating. we've done it in steel. they overproduce at a loss in order to keep the jobs and then they take the steel and dump it in our market and drives our steel maker out of business. stuart: i wasn't expecting this from jack. >> we can't allow cheating. now, the problem with a broader trade war, if we get into all kinds of goods is, you look at the u.s. imports. a lot of these are intermediary goods, we buy things from china and turn them more expensive and is he will them overseas. let's not hurt our exports.

stuart: what do you think about having someone who wrote "death by china". >> i don't know what they did because we wound up with the other side getting the benefits. our trade imbalance keeps getting bigger and bigger. who were these negotiators? who were they? >> they're not on the scene anymore. >> no. stuart: and when we opened this market, it's going to be a fairly muted open. fairly flat, maybe down a couple of points. we've got that fancy graphic ready to go in we hit dow 20,000. i'd like to use it, we spent some money on it in the next two and a half hours. we will be back. and dana whyte recent sold ufc for 4 billion dollars.

the context, the nfl has annual revenues of 9 billion. that guy is on the show. you've never seen anything like this, the trump transition, you've never seen anything like that before. more on that in a moment and the opening bell.

>> okay. you know what we're doing here.

we're on 20,000 watch. we are hoping that we get to 20,000 this morning in the next two and a half hours during this program. we would like to see it. i don't know whether we will get there or not, we've tried for several days. we've come close, but we haven't quite made it. as of right now we're 58 points away. bang! 9:30, it's thursday morning, we're off and running, see a lot of red up there, we're down 19, 22 points, we're down at the opening bell. off a fraction in percentage terms, but down 16 points as we speak. the dow 30 shows a lot of red, means a lot of selling, a lot of down stocks there. how about the s&p 500? where is that, you may ask? down a teenie fraction. how about the nasdaq, what's up with that? tech heavy and that's down and virtually unchanged as we speak. the price of oil, $52 a barrel. the price of gold this morning is 1131. there you have it down $2.

i find it interesting, the price of gasoline keeps on going up. >> it's now $2.26 on average for regular across the country. who is with us on this thursday morning when we may hit 20,000? tom sullivan, jack hough howe, harry levin. are we going to hit it. >> we're a half percent away. we could get a wiggle in the market and head there. take note as we head toward that christmas date, if santa claus should fail to call, the bears may come to broad and wall. wall street. stuart: really? >> if we don't get a strong push to the end of the year and don't get 20,000 i'm looking for a small pullback that will be the best opportunity. stuart: larry levin, you're a trading kind of guy, you understand the market from the inside. would i be right in saying there are big time traders who don't want to--

don't want to get in too early. they don't want to buy now to push it to 20,000, they might get caught as being the first to jump in. what do you say? >> certainly traders don't want to get caught, stuart, that's true. at all times they don't want to get caught at the top and that's more true now. i would say i kind of agree with dr. if we don't do it in the next day or so, we've got today and tomorrow, christmas is on under, we've got another week in the year, but only a couple of days until christmas. i don't think it's going to happen, i think it will pull back today and a little more tomorrow and maybe next week, if not next week, i think that people will step in and start selling the market and a downdraft and that as dr said, it will be a good buying opportunity. stuart: tom sullivan is nodding his head. >> this is the deal every time we try to get to one of the odometer rollovers, we go at it and pull back. i think a lot of traders or out

today and tomorrow, volume is light. >> 2:45 today is happens. >> they will have a lot of starches, and christmas cookies and 2:45 they'll come back and everybody feels better at 20,000. stuart: not good enough. i want it before 12 noon. and donald trump met with look heed martin and boeing, and he got them, what does that say about a president and bends them to his will. larry levin, do you approve? >> yes, america and these companies have to get aligned. in the next year or couple of years, the companies and donald trump trying to figure out how to bring the money back. there's so much money overseas not here in the u.s. and this is the start of that so i'm totally for what donald trump is doing and i think you're

going to see a lot more of it. stuart: what about you, tom? >> this is more important than cutting taxes, cutting regulations. i'm thrilled that icahn will be the regulator in chief, if you will. and trade war, i know jack is worried about it. i'm not worried about it. it's about time somebody got tough in the negotiations. stuart: what do you say, dr, should the president go avid companies and make them bend to his will? >> if trump's the guy we hope he is, then he will do this early on, set the tone and then let other people do it, step back and not be taking these meetings, taking people head-on, but you've got to look at what's happening in boeing. you know me as a numbers guy, he's talking about a deal small potatoes for boeing, $4 billion over multiple years, they're $100 billion a year company. so it's not that big of a deal ♪ >> you know why we're playing the trumpets. microsoft has gone to 63.93,

all time high. >> you buy lunch? >> i bought yesterday. 63.92, the one big technology company that's done very well after the election, the others were pretty much stable to down, but microsoft is challenging brand new highs, 63.93 as we speak. see this smile? >> indeed. stuart: still on donald trump appointing carl icahn, the chief deregulator, i guess you call him. taking a non-paid role in the white house, an advisor to the president, not an employee. and he, by the way, is no fan of dodd-frank, the reform regulation pushed through by president obama. jack hough you should be pleased. >> icahn is a campaign contributor here and he has a big book of business a major

shareholder in aig. if we're talking deregulation, they've crumbled the american economy and they've been hit with some and we don't want carl icahn, it's time for insurers to make a lot more money. shares of his publicly traded investment vehicle are off 20% since election day. i'm not saying it's going to happen, but let's keep an eye on it. stuart: without saying it you implied conflict of interest. >> a huge conflict of interest, but haven't made it an official position so he can keep doing his thing while talking to the president. if he's talking about just onerous, if he's secretary of talking his own book, that's a problem. stuart: if he gets rid of dodd-frank i'm a very happy guy, okay? and the bank stocks are going to go straight up if he says dodd-frank-- >> the market loves icahn's investment vehicle right now. maybe it's worth a look. stuart: we better check our big board because we're not at this moment watching dow 20,000. we're down 30 points, that

means we're 70 odd points, 80 odd points almost away from dow 20,000. we're down 27. the lower sales at conagra, the stock is actually up this morning. they make slim jims, banquet frozen meals, peter pan peanut butter, a raft of products. they didn't look too good before the market opened, but now are up 3 1/2%. amazon 14% higher this calendar year. nicole, what do you have for us on amazon today. stuart: we're watching amazon, the holiday season is coming to an end and fedex and ups to shift things. amazon has prime and they're pushing that for the procrastinators. they have something called the procrastinators delight to get things one to two hours. if you're butting up against christmas on the 24th, you can shop. amazon has been the behemoth, right now it's off the annual high back in october of 847. still so competitive and also

the e-commerce overall versus when people go into the stores and the like, the national retail federation saying that e-commerce sales in november and december, expected to surge at 10%. i read another place, 17%, but the big picture is here, is that we know so well, is that mobile shopping, on-line shopping, that certainly has been growing and is expected to continue to grow in the years ahead and they're competing in everything from groceries and now working on delivering everything to you, too, with their own trucking and airlines and the like. stuart: nicole, let me give you the other side of the coin, bricks and mortar stores, i've got numbers on them and the foot traffic, the people who are actually going into bricks and mortar stores, down 10% through december 17th. some of the biggest names in retailing have all announced they're going to close stores, this year, next year, there's a whole slew of them that are actually closing down those bricks and mortar or part of their bricks and mortar operations.

so, jack hough. >> yeah. >> does that mean the retailers are going to basically become real estate companies? >> what are you going to do with the real estate. stuart: good question. >> if they're not in these kind of businesses, what are you doing with the space? this group is to me, there's not much to like here. there are a few niche players maybe. there are too many stores and amazon is hurting a lot of these guys. i think you'll see a bump in some of the stocks because the business is done in the u.s., have very high tax rate. if you see a tax rate going forward, you probably will, probably chief among the companies that get the benefit. if there's a short-term bounce, maybe take a profit. stuart: you're a manager, you wouldn't touch them with a ten foot pole. >> most of them avoid, avoid and short. >> a technology play, look what amazon is doing, going brick and mortar with the go grocery store and eliminate a lot of

jobs and technology and macy's and all the others, they're not keeping up with it. they're doing on-line, but need to take care of their brick and mortar technology revolution. >> i think that mr. trump might give amazon an anti-trust problem because of the jeff bezos' washington post. stuart: look at share price of disney, they're going to create programming for snap chat, that's the app where your messages disappear after a few seconds. snapchat goes public so you can buy stock as of next year. do you think that disney's move to put original content on snapchat makes snapchat a more important stock? >> i think it's a great branding move for them and i think that snapchat as a name is coming right at their peak. facebook had not peaked when they came out and their stock's been going up so their ipo, i had a dozen kids in my church youth group and every one of

them said the favorite single app is snapchat. stuart: did you make money out of it? >> and i think they will as opposed to twitter a way to monetize the eyeballs. stuart: it's not a passing fad? >> it will have the sunsetting and then the grandmas will start using it so they've got a lot of passing on to do. stuart: and the transition, considering a 5% tariff on imports. are they asking for a trade war? larry levin, that sounds ominous to me, a 5% tariff on everything that comes across the border? what do you say? >> i think you're going to see more of this. i think that donald trump is looking for a trade war and get america to be competitive again and do a lot of things i think are going to annoy a lot of people and work through those things. remember, trump is a negotiator, so he's going to put a high offer out and work back to the middle ground that's going to work and always work for america, i'm a big fan much that. stuart: all right, he

negotiates, what he does. comes out in a strong position-- >> got to keep them on the trump discount, hear what he says and keep in mind you might get something more in the middle. stuart: we're down 35 points now, at 19,906. that's where we are. dana whyte built the usc and sold it for 4 billion. he's a big star in the business world. he's on the way into the studio. the russians say their relationship with the americans have frozen. the question, wouldn't better relations with russia under mr. trump be good for america? we will ask that question next hour. ♪

>> well, we were on 20,000 watch. right now we're watching to see if it goes below 19,900. we're off 35, 19,906. listen to this. bed, bath and beyond they've got lower foot traffic at the stores. that fits the narrative. food traffic is generally down in bricks and mortar stores. it's down at bed bath & beyond and that stock takes it on the chin, down 5%. will you look at twitter? that stock is now down at $16 a share and it's down 25% this year. dr, what-- president-elect trump uses twitter every single day, the whole world knows the name and the stock is at 16. >> yeah, it's one of those things lots of people use. if i want to know what's happening, i go to twitter first, it's the fastest. they have not find a legitimate

model for those eyeballs. every time they throw advertising in, it's a rollercoaster ride. somebody's going to buy it and jump 2 bucks again and then drop back down like it did. it's a tough, tough, row to hoe. stuart: it's now down 28% this year. look at this one, groupon. some users have had their accounts hacked and the hackers went shopping with the users money that they'd hacked. what's with that? >> you know, the thing about this is how criminals are stupid. they're ordering things for themselves. they're taking european vacations on somebody else's dime. don't you think that somebody might be able to figure out who stole the money? >> yeah, you'd think. >> yeah. stuart: you would think that. very, very smart. look at that chart, that's a rotten chart. i want to deal quickly with dine equity, they own applebee's and i-hop and combining the two restaurants into one, just in detroit, i think that is.

why are they doing that, tom? >> i-hop bought applebee's so a franchisee in detroit is saying i want to have like a good court. a 12,000 square foot restaurant and serve pancakes, breakfast lunch or dinner, across the street from the renaissance center in detroit. >> dine equity-- >> if you you have to talk to franchis franchisee, it's better to have a corporate owned chain if you want drastic changes. stuart: you don't like it, i've got that. thanks very much indeed. have i got a star for you? our next guest sold the usc-- ufc, i'm sorry, ufc, that's the ultimately fighting championship, he sold it for $4 billion in july. essentially, this guest, who is now on his cell phone. no, he's not, he's off his cell phone, you made a huge success

out of a sport that's relatively new. >> thank you. stuart: dana white, welcome to the show. >> i wasn't alone, we bought it back in 2001 and sold it for 4.025 billion. stuart: are you a billionaire? >> i am not. stuart: are you close? welcome to the show. >> i had a good piece of it, you know? i made a couple of bucks on the deal. stuart: for the sports dollar, seems to me that you're kind of challenging the nfl. they've got revenues of $9 billion a year you don't have revenues like that, but you're growing by leaps and bounds. >> we're finally getting the respect and how big the sport it and what we're capable of. the nfl how big it is, biggest in the united states. other countries don't care about it. we've been in russia and every country in the world.

stuart: you're cashing in if i say the demise of boxing, i think that's what you're doing, you're placing boxing with real fighting. there's blood on the floor. >> thank you, sir. >> that's why you're popular, there's blood on the floor. >> one thing, i don't care what color you are, what country, what language you speak we're human beings, fighting is in our dna, it's fighting and we like it everywhere. stuart: you're not supposed to say that. >> i've been saying that since 2001 and thank god it was right. cricket is the biggest thing in the world somewhere. we doesn't care about cricket here and we never will. american football is the biggest thing here and people don't care about it in the other parts of the world. fighting? everybody likes fighting. stuart: did you introduce the cage. >> realistically, i didn't. because it's mixed martial arts, you can punch, quick, wrestle, it's a safety thing. guys don't fall out. even in boxing, this weekend, bernard hopkins got knocked out

and fell out of the ring, so it's a safety thing. stuart: would you just stay there for a second? complete a little more business and i want to talk about your backing for mr. trump and his skill as a negotiator. are you up for that? sure. stuart: don't beat me up too much. the dow is down 31 points. i think you could say safely the march to 20,000 has stalled this thursday morning. weight watchers, oprah winfrey launching a campaign revealing she lost more than 40 pounds since she joined weight watchers. a 12% gain. stay with us, dana white will be back with us and we'll be back after this. p, and reduce symptom severity by 45%. shorten your cold with a snap, with zicam. i'm stressed trying to figure out this complex trade what's with the dog-sized horse? so i brought in my comfort pony. well, you could get support from thinkorswim's in-app chat. so you don't need a comfort pony. so what about my motivational meerkat?

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>> dana white remains with us, the man who built ufc with some help and who sold it for $4 billion bucks a few months ago. a wealthy man and a great guy. welcome back. >> thank you, sir. stuart: you know donald trump. you know him very well and you spoke at the republican national convention. >> right. stuart: he's a deal maker, isn't he? >> he is, a deal maker and he's not a bad guy. he's a very good guy. stuart: a tough guy. >> there are a lot of misconceptions about donald trump. donald trump is a guy who has always been when he didn't have to be supportive of me and when good things have happened to me in my life he's been there and

i have a lot of respect for the man. stuart: a rough and tough guy. >> he is. listen, he's a guy who i believe will get things done. you know. i think he's going to be a much better president than people are giving him credit for. stuart: were you in the room on election night, november the 8th, were you in the room with him when he won? >> i wasn't in the room with him. i was actually at the peninsula hotel. stuart: that's where hillary clinton was. >> that's right. hillary was-- >> stop laughing. >> no, it's true, it's true, it's weird. she was there and they called me and told me we're going to win, meet us at there. stuart: you did see him. >> yes. stuart: were you one of the first to say mr. president? is that the moment? the moment to that guy? >> every time i talk to him i call him mr. president now. stuart: of course, you should.

>> from that night on i call him mr. president. stuart: a typical varney question, what are you going to do with the money you made selling ufc. >> i'm still working. nothing i need, i'm good, i'm good. stuart: dana white, a pleasure. remarkable success. >> happy holidays. stuart: thank you very much. all right, new at 10:00 just moments away they're searching for this guy, searching all over europe. he is the suspect in the berlin christmas market terror attack. 72 hours later, they still haven't got him. russia says its relationship with the u.s. is quote, frozen. does that give president-elect trump an opening? we'll deal with it. two minutes away.

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men. the illegal who welcome them are being swept aside. in america, the issue of terrorism was swept into the immigration debate. trump said, limit muslim immigration. clinton said, open borders. trump won. a few hundred yards from where i'm sitting right now couple of hundred yards from this building large concrete barrier occupy on the streets. we are adjusting, no terror trucks here, please. or in d.c. for the inauguration our open, free, way of life is threatened. the christian world is under attack. and now the counterattack, in europe, the authorities are stopping up deportations. and they've called a halt to the migrant surge. in america, donald trump promises tougher surveillance and much tougher vetting of anyone who cools here. after the berlin attack he was asked what he would do here. quote, you've known my plans all along he said.

and then he held a meeting with group of generals, seems like a turn from defense to offense. from absorbing terror to challenging it. this is good. radical islam has taken aim at western civilization but we have woken up to the threat of more muscular response is underway. the second hour of "varney & company" is about to begin. ♪ ♪ what do we have now? we've got weekly read on mortgage rates give me the number. >> every thursday they cool out with it and it has spiked up to 4.3%. that's still relatively low compared to history. but still it is much more than where it was last week. >> that's extrordz extraordinary just before the election 3.4, 3.5%.

six weeks later at 4.3%. isn't this all about the expectation of growth in the future? >> the future, the fed going with saying we're going to raise interest rates three times next year all of this is addings to where mortgage brokers are just bidding number up. stuart: the ten year treasury yield is actually on track for first downside move weekly downside move in some thyme which means that maybe mortgage rates could edge back down again a little bit in the future. but bottom line is as of now, it is 4.3% that is historically speaking low, but for the past couple of years concern >> buying a home or refinancing i would get on it. i would get on it. ismght a lot of people on our team are on it. trying to get through the paper work. >> yes, sir. update this one for you search is on for the terror suspect. david is with us today. by the way welcome to the program. >> thank you very much. great to have you with us.

>> what do you know about the per on the screen, the suspect what do we know about him? >> what you were saying the response to terrorism is right on, this guy is kick the a about how terribly ill prepared the europeans are in germany specifically is to deal request terrorism. this guy -- arrived in europe seven years ago from tunisia, he traveled to europe as an illegal immigrant settled in italy, then for some reason burnt down a school in italy. we "don't ask, don't don't knows activated by terrorism but he spent four years in jail according to his father and italian prison for burning dun a school and then in july of 2015 he went to germany and he was denied the right to asylum because they have papers they knew he spent four years in jail in italy for burning down a school but under a peculiarity of the system they were unable to kick him out. they knew he burnt down a school

and spent four years in jail illegal immigrants and couldn't kick him out. and that's why he was still there. that is -- >> incredible. absolutely amazing -- incredible what a mess, and then they arrested the wrong guy, and le >> that's a disaster for angela merkel, and i think it has slit europe. and i don't think they're going to recover. that's my opinion -- strong stuff. we'll have more on this later. david great report there. russia says relations with the u.s. have hit rock bottom. spokesman says this, almost every level of dialogue with the united states is frozen, we don't communicate with one another or we do so minimally. and then we have a russian studies professors at nyu saying that the russians are anxious. watch this. >> russias say that never has western power been a mass on russia western board borders as it is today germany invasion so

russians are in high anxiety. their nuclear weapons are on high alert. we are going crazy defaming anybody who says shouldn't we debate or think this over? and it is really dangerous. stuart: so do we open a u new relationship with russia under a president trump? byron york is with us, this is an opening is it not to a new relationship with russia? i'm not so p saying whether i'm in favor of it or not but saying that the situation suggest an opening. >> it does. actually if you were to listen to some democrats speak you would think that russians were partying and happy over the arrival of their new puppet, donald trump that give use an idea of some of the kind of neocold war are the rick we've been hearing lately. i do think don't use the word reset but any new era in relation will have to wait to find out what happened in the election as you know president

obama has ordered an intelligence review of russian attempts to influence the election. to be finished by the time he leaves office on january 20th, i've tacked to republicans who are very skeptical of those results before we even know what they are. i think there's going to be a continued debate over just what russia did, and perhaps more importantly what it was intending to do. so i think that's kind of got to get cleared up before any new age -- relation with russia began. stuart: as you're aware byron, the president-elect has been filling his cabinet, negotiating with various heads of large corporations. listen to what he said and what the boeing ceo said after a meeting with donald trump. roll tape. >> well, folks on the same thing here, make sure that we give the best capability in the world and that we do it in a way that is supportable for our taxpayers and business around that is

excellent. been a terrific conversation got a lot of respect for him. a good man and doing the right thing. >> now there's an example of a corporate chief bending to the will of the future president of the united states. in principle bioron, do you approve of that is that what donald trump should be doing? >> well, i think this is going to be a very popular thing from donald trump because remember, he met not just with the ceo of boeing at marlago but lockheed and the combat jet program just billions and billions in cost overrun. this is precisely what donald trump said he was going to do in the the campaign. if you listen to his spoach, he would say time after time wherever there's some sort of corporate outrage like ford sending jobs and a plant down to mexico, he would say -- i'm going to call up the ceo, i'll be president. i'll really enjoy doing this.

he's done this with carrier and lockheeding and he's not even president yet but i guess he'll continue to do it when he is president. >> never seen anything like it before. thank you so much for joining us david new to our program this morning, and good -- >> wonderful to be here. can i say one thing about f35 two years ago it was 163 billion dollars overbudget seven years behind schedule, and it is going to cost taxpayers twice as much as sending man to the moon. this is the program that donald trump got lkheed martin to bend on yesterday two years ago and hearing from liberal democrats about how military complex cost too much. president obama had eight years face and he didn't. >> address the principle real fast. do you think that the president-elect of the united states should be jawboning ceos like this? >> absolutely. absolutely. liberals have been saying that should happen to the pent begun they haven't done it. he will.

>> i agree and jack earlier on the program and health department worry about the ability that, you know, president obama had done this. president obama did not do this all he did was issue executive orders and get -- try to get laws changed. this is a guy doing business teals. negotiating. >> conservative guys here onboard with jaw is boning ceos i never thought i would see the big day. down 25 points look at market scan, more losers than winners on the big board. yeah we're still waiting for dow 20,000. still waiting. and any day now, market watcher scott martin is with us who id by the way on videotape, 20,000 by new years. well -- that's not a very tough forecast to make, is it? scott martin. >> i have time left stuart. not to be con fusees requested christmas because that's probably not going to happen but i do think next week there's going to be some low volume trade which means that market can be easily moved arranged and i just think that overall enthusiasm into the end of the

new year will take 20,000. what happens in january is? maybe new tax proposal on the board, and investors come in to sell things they're reluctant to sell had year because of better tax situation. >> what do you think is going to happen? stuart: i want to know, what do you think because we've got virus who are saying well shall i get in or shall i sell now? tell them. what do you think is going to happen? >> i would wait for a pullback especially if you're looking at some areas that are really hot which i still do like long-term and specifically those are financials, industrials and material stocks so me myself if i have new money that i'm looking to put in that area i would wait for a five or six or 7 prkt pullback because i think we're going to get one. market is overdone here and ahead of its and go up long-term. but i think there's a short-term pullback looming. >> got you. mr. martin thank you very much for joining us we'll see you probably before new year, see if you have it right. good stuff is, thank you. klly ann conway taking a white house job in the trump administration her role

counselor to the president. conway said she took the job because the trump administration is friendly to women and families. businessman stalling this 85 foot christmas tree in the middle of baghdad. it cost about $25,000 that is meant as a symbol of solidarity with the iraqi christians. i like that. more varney in a moment. every dr with a healthy smile. start yours with philips sonicare, the no.1 choice of dentists. compared to oral-b 7000, philips sonicare flexcare platinum removes significantly more plaque. this is the sound of sonic technology cleaning deep between teeth. hear the difference?

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♪ stuart: that doesn't make any spine tingle it is christmas

music but it doesn't uplift. it's kind of smug and don't like it. >> doesn't offend anybody. sleigh ride. >> get it off my air. merry christmas everyone. i don't have got three days to christmas day. come on. [laughter] check our big board actually it is market scan where are we? more losers than winners, dow at many moment down about 20 points. how about lower profits at bed bath and beyond, why? well, they've got less foot traffic. very important point here. online selling is killing the brick-and-mortar people that stock is it down 5%. con agra up but stock sup a nice 2% if you don't know they make slim jims loaded with fat banquet frozen meal and peanut butter from pert pan they make it up 2%. go pro what a loser this year, down 50% pop this morning, 4% up

go pro at $9 a share. just moments ago, angela merkel germany chancellor held a press conference, obviously, about the berlin terror attack what did she say? >> minister was there and say they have additional information that the suspect in berlin is, in fact, the perpetrator because there were some question about that. he said, they have evidence that was in the trk cab because he left his wallet there. that makes you wonder was he a typed crook or did somebody plant naftion as one or the other question being asked but angela merkel said they hope for the ace soon. there's $100,000 bounty on his head. >> i believe his family, has asked for him please, give yourself up. i believe the family -- >> father is talking to authorities right now. so at least, at least the families involved. >> but the fact that he's still in europe and not caught is incredible. >> the question that we have to

answer did he get welfare money? remember the terrorist -- they received over 50,000 of welfare checks over their time in europe. >> but you said something stuart, he could be anywhere in european because of the open borders. >> i think angela merkel lost big time with this incident. absolutely next case. president-elect trump speaking about christmas terror attack he call it is an attack on humanity. watch this. [inaudible] 100% -- >> with us trump foreign policy advisory welcome back to the program. i've been saying for stiement and i've said it again today that in my opinion and it is an opinion muslim terror has ended,

broken, the european union. am i gong too far? >> you're not. let me say first and foremost that i served advisory of the campaign not in transition today but let me address this ise is that -- the jihadist will have penetrated basically the imraints or migrant or speakers are now a problem. i mean changes color chancellor merkel appeared on tv right now and far hope is to catch him. far hope of this operation is to catch him not even to look fat dismantling this network of jihadist across europe so i agree with with you, you're not farfetched here. stuart: okay, what about sanctuary cities in the united states? president-elect trump is talking about withholding federal funds to those cities which insist that they are sanctuary cities, is that part maybe of the anti-terror move? >> part of it is. but then you have a much greater point been made during the campaign, of course, now

transition into the next administration this is serious component there will be resistance by those who support it so along line of what we can see, this will be one of the headlines in next month to come. >> i'm sorry to cut this short and i do apologize for that. but thanks so much for being on the program today. we do appreciate it. i want to get to the big board because we're coming back towards a breaking situation. we're down just 12 points. okay we're still 70 odd points away from dow 20,000. but hope springs eternal may be we'll get to the point where i can use the fancy graphic we're somewhat away but close. dangerous smog in china unprecedented levels. 460 million people live with that. schools closed hundreds of flights canceled mog is so bad in some cities chips could not come into dock an can't see where they're going.

that is smog. president-elect trump said to be considering a 5% tax on goods coming into the country. that is trump's opening bid in what is, obviously, a very different approach to trade, is it not? ♪

>> new video from the deadly fireworks blast that occurred in mexico on the right hand side of your screen you can see the explosion as is it happened on the left hand side of your screen you can see the aftermath. it was an open ire fireworks

market very popular place. boom went off 32 people died. many more injured. the cause we do not know but be terrorism has been ruled out. but drama there in mexico. look at the stock price weight watchers, up on otherwise down day. look 15% up. oprah winfrey launched an ad campaign a reveal that she lost more than 40 pounds. joining weight watchers and she's got a piece of the action the stock is up 15% just like her. she's up, down -- that is cruel i know. but that's true. >> i'll laugh at you when you put it back on. president-elect trump said he's considering paris on import what cools into the country he's kiering top 5%. >> on everything comes into the country, and the only thing about this is that the market could trade on the rumor -- but yoang that's going to be the news. i think this is as you said

earlier this is his opening bid art of the deal this is where he's starting. j if we really thought that he was going to put a 5 tariff that would go down. >> what a perfection is i would hark back to ronald reagan we remember the years there's a piece saying ronald reagan protectionist. he had a 100% tariff he aflood to electronic goods from japan. japan was back then what china is today. i was working editorial page and try to defend this tariff saying it didn't last long and got exactly the intended effect and ronald reagan turns the to be right. so protectionist tariff selectively applied can be very effective -- stuart: wait a minute i have conservative guy on the show both of you say well it is an

opening bid and not a trade war. it is okay. >> remember you have peter he's a protectionist but wilbur ross commerce secretary you're going to have a good cop bad cop situation. bad cop peter, good cop wilbert. >> people that are successful negotiating our trade deal invent a bureaucrat that live it is in the wing waiting in some foreign capitol. >> you do like trump as well. face it. >> in this regard, yeah. >> you're to be see a weather map of all of the cities in america which are expecting a white christmas. now, if you're listening on radio i know we have satellite listeners these cities include boys boise, chicago, flagstaff, arizona, and that's pretty much across the northern portion of the country. good stuff. more varney in a moment.

>>

stuart: this is stonehenge, this is england, my birth place. thousands gather every year on this day to celebrate winter solstice. there is the sound it makes.

we are still trying to get to 20k. not there yet. another all-time high for microsoft. bank of america said it is going to maybe 75, morgan stanley, maybe 72. yes, i own a tiny fraction of microsoft. what a company, ladies and gentlemen. this is interesting. the obama administration is officially ending a post-911era registration system for up grant men mostly from muslim country. >> it was started after 9/11 and it's designed to register mostly immigrant men from muslim countries. and the obama administration hasn't used this since 2011.

it scrapped the whole thing. now they are officially ending this national entry-exit system. stuart: is it donald trump or barack obama doing it? >> obama. david: he did use it up until 2011. tom: obama used it and there was a similar one jimmy carter used in the 1970s. >> president obama gets rid of that registry? stuart: pastor, you just heard this, ending the registration days before president obama leaves office. your take on this, please. >> it's absolutely foolish.

it's not grandmothers yelling jesus christ is great creating these atrocities. it's young muslim men yelling allah is great committing these atrocities. stuart: you are a christian pastor and you are saying there should be a religious test. if we have a region industry of muslims, you are comfortable with this as a christian? >> we are talking about people entering our country who pose a threat to this country. there is no religious test for running for office according to article 6 of the constitution. but there is nothing unconstitutional about this. we need to do whatever is necessary to protect tour country. i believe we have an incoming president who is determined to keep this country safe.

stuart: i want to talk to you about the berlin terror attack. i said christianity and the judeo-christian world is under attack. some people take me to task for that. what say you? >> we are in danger from without and from within. an isis-inspired group has called for targeting u.s. churches during the holidays. we are under attack as christians. then you have a pennsylvania school that cancels a presentation of dickens "a christmas carol" because it says "god bless you everyone." stuart: i favor a more muscular response from christian leadership. i want you to listen to what

cardinal timothy dolan said about this. >> jewish leaders are powerful. they are saying when are you christians going to start speak up? we jews learned the hard way. you have got to be forceful. you can't let up. they are reminding us that we have to be much more aggressive in defending the rights of christians. >> i think you said about the same thing. i believe that the department of homeland security said there is no specific threat tied to the holidays this year. that's what they just came out and said. your comment? >> well, again, i'm reacting to what came in the news today. our church we are always secure and have armed security guard there. but having said that, the bible said to god has not given us the

spirit of fear, but love and a sound mind. and do not surrender to fear. stuart stuart: merry christmas to you, sir. stuart: if you have been watching cnn recently. i was a founder of cnn before it became the clinton news network. you know they have been very focused on one particular new study. this is the headline from cnn about the study. black men nearly three times as likely to die from police use of force. that was the headline on cnn repeated frequently. our next guest sharply critical of the study and cnn.

she is the author of "the war on cops." what's wrong with the study? >> it's dangerous and irresponsible nonsense. cnn has contribute to the climate of hatred the cops are experiencing in the streets that led to a 68% increase in gun murders this year. you have to understand crime rates if you are going to look at police activity. cnn just looks at cops and compares the shootings to population ratios. they say cops shoot blacks three times the rate of whites. blacks commit homicide at 8 times the rate of whites and hispanics combined and 11 times the rates of whites alone. blacks die of homicide at six times the rate of whites and hispanics. but when you have those times of

violent crime disparities, they mean cops will be called almost exclusively to minority neighborhoods when there is a senseless driveby shooting confronting senseless, armed suspects who are almost exclusively in america's cities, minorities. stuart: technically it's across rat. mathematically accurate. but they miss the whole context and therefore blurred what's going on. >> there is no excuse for cnn to be promoting a study that ignores the most basic element of police activity. there was no need to pull this study from a relatively obscure

medical journal. we have seen the largest one-year increase in homicides in nearly half a century. why? because cops are backing off of proactive policing in high-crime areas because they are encountering so much hatred and violent resistance. stuart: do you get hate mail. >> i do, sure, of course. stuart: what you are saying is so diametrically oppose to the narrative in our media. i imagine you take hell from this. >> it supports the many law-biding residents in high-crime areas to beg the police to clear the corners and restore public order and get the drug dealers off the streets. black lives matter, that's what you put up with with this level of animosity.

but it's mendacious. that's what i have to insist on. merry christmas. stuart: christmas is just three days away. lots of online ordering. adam shapiro live at an amazon fulfillment center. >> in one hour, if you pay $7.99, guaranteed one-hour delivery. if you are a member of prime. when the stuff comes in it's pue this device to find everything from soup to sugar-free juice. i mean, it's everywhere. tens of thousands of items from

all over the place. but they actually agree gait what shopping patterns are inner area. you can order just about anything from ice cream to plasma tvs. and, stuart, this is for you. lovely. you with a tiara. it would be great. stuart: one-hour delivery for $7.99. adam: you can order up to 11:30 christmas eve and it will be delivered by 1:00 p.m. >> we have the latest in a long list of hoaxes like this coming up. because it's christmas we are

about to show you a video of a panda who lives in the toronto zoo. here he is playing with a snowman. he climbs on top. look at that. he's flying the snow. we'll be back. [♪]

tom: dana white sold ufc. stuart: you know donald trump. you know him very well, and you spoke at the republican national convention. he's a deal maker, isn't he? >> he is. he's a deal maker and he's not a bad guy. there are a lot of misconceptions about donald trump. he's a guy at a time when he didn't have to be. he's been supportive of me. when good things have happened to me in my life he has been there and i have a lot of respect for the man.

stuart: a rough and tough guy. he's a guy whom i believe will get things done.

stuart: please, please, this "last christmas" by wham. get this off.

play me some veal christian music now. ♪ hallelujah stuart: yes. [♪] ♪ hallelujah hallelujah stuart: doesn't that bring tingles to your spine tom: the house was packed and nobody left forward 2 1/2 hours until they heard "hallelujah." stuart: i think we better move on. eating up precious time here. check out the big board. we are down 24 points. reports of hoaxes related to trump. look at this. mississippi, a fire at a

predominantly black church, words "vote trump" found stray painted on what was left of it. one of the parishioners has been charged with arson. in michigan a muslim student claimed a trump supporters tried to burn her hijab. she made it up. what are the penalties for this kind of hoax, saying this kinds of thing? >> starting in michigan, that university of michigan student is looking at up to four years in state prison for reporting a false felony crime. if it's a felonynd you falsely report it, then it's a felony. and it's disgusting because the common denominator is it was quote trump-related and we know

that was a big fat lie stuart: that youngster in mitch gains not going to go to prison for four years. that's just the threat hat hangs over that person. >> that's the maximum incarceration. somebody has to actually enforce these laws and have penalties. think about how much time, energy and sentiment went into trying to find and prosecute the people who allegedly did these hoax crimes. stuart: but there is something such as a hate crime and people are assaulted for whatever reason. these mosquitoe -- these hoaxesy make the real thing more difficult to prosecute. >> it diminishes from the true victims of these hate crimes. there is something called ethnic intimidation.

unfortunately it ends up making everybody be colored under this concern. stuart: president-elect trump has named kellyanne conway as his presidential counselor. >> i would say to everyone, i don't want him to be creamed. but i don't play golf and i don't have a miss stress, so i have a lot of time that a lot of other men don't. i think men on the weekend spend a lot of time with their golf games. but the kids will be with me. we live in the same house and they come first. stuart: katie one heard that, would you care to respond? >> i have less time than kellyanne conway. i do play golf but i don't have a miss stress. good for her for saying what's

on her mind. strur i'm glad you are on this program. thank you very much indeed. merry christmas. dave, you have something to add on this? david: it will go down in history as one of the classic lines. stuart: am i going to get a classic line from you at 4:00? >> we have a great show lined up for you. thank you for allowing me to promote it here. >> the march to dow 20,000 stalled. our coverage of that event extensive. our viewers have something to say about it next. hey nicole. hey! i just wanted to thank your support team for walking me through my first options trade. we only do it for everyone gary. well, i feel pretty smart. well, we're all about educating people on options strategies. well, don't worry, i won't let this accomplishment go to my head.

i'm still the same old gary. wait, you forgot your french dictionary. oh, mucho gracias. get help on options trading with thinkorswim, only at td ameritrade.

stuart: the dow at 20,000 within reach. we had viewer reaction. please let the dow hit 20k during varney's show so he can use his fancy graphic and he can't wait to share it with us. paul says have you ever thought

of work for sotheby as an auctioneer? any buyers? i wanted it to hit 20k and it didn't. the last one is from timothy. i hope and pray one day you will come to understand that money isn't everything. and a temporary bump in the economy does nothing whatsoever to start building long-term strengths. i know that money is not anything. money is the source of all forms of evil? isn't that from 1 timothy? money is the root cause of all forms of evil. and money is not everything, but we'll be back.

stuart: at the risk of sounding like a broken record. you have never seen anything like this beforei'm talking abot president-elect trump and how he's handling the transition to the presidency. this is the most conservative cabinet in a generation. it's jammed with successful people used to managing on a grand scale. you don't see any academics. trump is conducting business. he negotiated jobs with carrier, softbank, the cost of the f-35. the point is he's doing it now. lastly. energy has changed the nation's mood. this is a can-do country. we can do tax cuts and cut regulations and investors believe we will grow the

economy, that's why the stock market has soared. you have never seen anything like this. the third hour of "varney and company" is about to begin. > [♪] ♪ joy to the world the lord has come ♪ stuart: i accept that as christmas music on "varney and company. will we get any joy on the dow industrials? it's an irrelevant question. will we get it now, today or tomorrow? that's not relevance.

is this rally going to continue? that's my real question. your answer is? >> i don't think so. but i don't think it will be a bear market. i think it's comparable to what happened with ronald reagan. you had the market rally almost the same exact amount. november 28, it was 8.5 percent of rise. it took 18 nos for the market to hit that again. i think president-elect trump has a congress that's easier to work with. the fed ease yesterda -- fed ea. stuart: if we see real signs of growth and extra profits, then we might resume the rally later on? that's what you are saying? >> yes, sir.

i don't see a big dip. but i think the market got ahead of itself. i'm still 85% invested in the stock market. i think we have to see some type of pullback until those structural forms start taking place. but if you make it taxes retroactive to january 1 of 2017, i think we'll see that. stuart: i know you are not buying stocks yourself at the moment. but if someone did want to get into the market. go through it briefly. which ones first? >> i love verizon. i think it's a little bit too small. when you look at what at&t is doing, trying to buy a huge media con grom rat. that's how you plate broadband and the content play because you

are buying the train tracks. also with the corporate tax reform coming. companies make most of their money in the united states going to see 0 cents out of every dollar they earn going back into the company. >> verizon you like. i see home depot? >> verizon has a 5% wield. home depot is another one it's not taken off with this rally. i don't think you will see a lot of homebuilding but you will see infrastructure spending. president-elect trump has mentioned that's one of the first things he's going to do and that will benefit home depot. stuart: flow tech, i know you like the. tell me what it does. >> this is the most risky out of the three. it has an environmental fracking fluid. if you look at what fracking can do.

the monterey shell in california alone would wipe out the california debt if they were to allow fracking. we have an environmentally friendly president. but you want to see environmentally friendly fluid. stuart: flotek, a fracking stock. president-elect trump named pete for navarro to lead the white house counsel. douglas, mr. navarro wrote the book "death by china." there it is. and he's the guy who is going to take a big role in our trade policy. does that worry you? trade war? here it comes?

>> i think this is a work in progress from two perspectives. he's a very bright guy, and he's saying we don't like china's conduct. and then i have a different set of tactics that will be effective in getting china to live up to its international obligations. >> a guy who wrote that title, it's provocative indeed. >> he's been given a title, but he doesn't have yet any real responsibility. it's not like the department of commercial which has the responsibility for certifying exports. things like that. so with the title comes the obligation and the work has sort of generating the ability to execute. that's something we need to keep an eye on. stuart: the president has tapped

billionaire investor carl icahn. my impression is icahn doesn't like dodd-frank. >> every white house needs someone in the west wing who wakes up every day worried about the regulatory state. the agencies exist to regulate. you have to keep an eye on it. no matter how dedicated the white house is to deregulation. someone has to make sure the execution takes place. it won't be just dodd-frank. it will be across the board. there is a lot of underbrush that needs to be cleared out. >> do you feel incoming administration can do it? you and i have known countless presidents who say we are going to cut that red tape and make government really work for the people, and it never happens.

is this really a different time? >> so there are three things that you can do. the first is executive orders, and presidents do that. the second and hard were one is new rule making to replace or eliminate bad rules. that's where you need someone staying on top of the process because that takes years. and the third and interesting opportunity now is you can do legislative reforms that change the regulatory state. things like the regulatory accountability act. make the rules different so you can't get a regulation out so easily. >> you were not always a trump guy are you warming to him? >> there is a lot of controversy about some of those positions. 80% of what donald trump is proposing is in the mainstream of conservative economic policy and the regulatory reform is long overdue. there is a lot of reason why people are excited about it and

as you point out optimism has increased. stuart: you know washington from the inside. am i going to get a tax cut back dated to january 1? >> i don't know about backdating. the tax code that encourages production in the united states and growth in the united states, and that's what's going to happen. douglas, again thank you very much for joining us. merry christmas. low-flying military planes and helicopters spot over mid-town manhattan. it worried a lot of people. turns out they were part of a training exercise on how to safely airlift president-elect trump out of new york city if there was an emergency. the aircraft looped hour mid-town manhattan for 40 minutes. a training exercise in case they needed to get there trump out in

a hurry. the christmas market in berlin where the horrific attack occurred. concrete barriers are blocking the entrance where the truck came in. they call it a sign of defines where they reopened it. a very important guest, van hip basically used to run the army. he says he has six ways trump can keep us safe against terror.

>> we want to make sure we do pour work in way that's affordable for our taxpayers. report that's the boeing chief who met with mr. trump earlier. boeing promised to cut the cost on at least one military project, the air force one

plane. boeing and lockheed martin are down just a bit this morning. we have never seen anything like this before, at least to my knowledge. we have never seen a president-elect or a president strong arming the ceos of major corporations and telling them, come on, shape up. i have never seen this before. do you approve? >> it doesn't matter if i approve. the voters love this. but indianapolis direct conflict with the thinking within mr. trump's party, the republican party it's not conservative for the government to intervene in the market. i mow the president-elect has been trying to get to other companies as well who have not respond. i call this donald's deal of the day where he likes to come out and have a victory.

he likes to negotiate contracts, we know that. and i think he will be good at bilateral trade agreements. he's making republicans very nervous of by strong arming private companies and the general approach which is not an economic policy codified by statute that applies to everyone across the board. stuart: if you ask a republican what is republican economic policy, the answer today is very different from what it would have been six weeks ago. because trump has changed the economic baseline of the republican party. >> this is why it's causing them so much tension. as you know, i spoke to them about this, and they are being awfully quite. there have been some hints these numbers might add up. military spending, a deep tax cut. these are all spenders.

no immediate care reforms. the hawks within the conservative fiscal hawks in the house and senate are nervous about having a clash with him as they approach tax reform. they will come together on regulatory relief. but where do you find the money for the tax cut while you pay for infrastructure, and really this tariff policy emerging is making them nervous. in the interest of a honeymoon they are keeping their lips closed. stuart: mr. trump has gone over the heads of conventional have you cans. look what i have done, i have got jobs from carrier and softbank, i got a lower price for air force one. that's carrying the day. i have got to get one more thing in, a.b. this a headline from the a.p.,

the headline reads "economy healed under obama, but unhappy voters chose trump."what do you? >> i think it's understandable. americans don't feel better. obama can be credited with a much better economy than he arrived with. unemployment is low, stocks are high, consumer spending is good. these variables can make people feel good. and that's what hillary clinton was trying to run on. and you heard obama try to take credit for in these final days. but people don't feel better. they have stagnant wages that don't pay for college or healthcare. stuart: this will go on for four years. the media does not like mr. trump and will poke holes in him at every opportunity. that's not going to change, is it? >> tino everyone has problems with the media. i know in trump has problems

with the media. i was tough on obama, i will be tough on mr. trump if he doesn't fulfill his promises. the media is heard on republicans. but he's going to be expected to run an earth cal and transparent government. stuart: you just don't have to take him literally. >> i disagree with that. i think presidents should be taken literally. that's a serious obligation of his. stuart: do you think we'll get to 20,000 on the dow industrials? >> yes, i do stuart: are you a financial type? >> no, i have just watched way it's doing. investor class loves trump. they are making him a little nervous and markets are nervous the night before a tweet might be coming. but so far the numbers are looking great.

stuart: a.b., merry christmas. i want to show you this weather map. all the cities on the map are expecting a white christmas. boy see, chicago, denver, reno, nevada, flagstaff, arizona. snow is on the way up there. in geneva, wisconsin, jeff flock on skis. watch out, world. see me. see me. don't stare at me. see me. see me. see me to know that psoriasis is just something that i have. i'm not contagious.

see me to know that... ...i won't stop until i find what works. discover cosentyx, a different kind of medicine for moderate to severe plaque psoriasis. proven to help the majority of people find clear or almost clear skin. 8 out of 10 people saw 75% skin cleance at 3 months. while the majority saw 90% clearance. do not use if you are allergic to cosentyx. before starting, you should be tested for tuberculosis. an increased risk of infections and lowered ability to fight them may occur... ...tell your doctor if you have an infection or symptoms... ...such as fever, sweats, chills, muscle aches or cough. or if you have received a vaccine or plan to. if you have inflammatory bowel disease, tell your doctor if symptoms develop or worsen. serious allergic reactions may occur. see me. see me. see me. on my way. find clear skin... and a clearer path forward. for a different kind of medicine, ask your dermatologist about cosentyx.

stuart: a long winter last year. the ski resorts had a tough time. i believe it's a better year this year, jeff, right? >> this is incredible. this year we have had snow, cold, they have a huge base out here. this is amazing. i'm skiing with an expert in case is crash and burn. last year you said you were mowing grass this time of year? >> this year we are in better shape.

>> i skied three times in my life. the numbers have been down but that's largely weather related, right? >> we are weather dependent, but when it's good conditions, everyone comes out. reporter: that is dutch behind the camera. be careful. i just sent him into a tree, oh, man. stuart: i do believe the cameraman had a small accident. i hope he's okay. >> you try to ski backwards with a camera on your shoulder. as you said, tom, you try skiing backwards with a camera. not easy. we'll be back. the gentleman who momentarily will be walking count hallway

coming into our studios, senator pat toomey, republican from pennsylvania, recently re-elected. he's leading the charge to save us taxpayers billions of dollars. he's a welcome guest. he will join us momentarily. [♪]

.. feature into zero dear, we

have slipped below 19,900. i guess the run up to 20,000 is down 43. the price of oil still hovering around 52. nearly $53 a barrel. john hofmeister, former shell oil president. i sense the market is about to move below 50 bucks a barrel. convince me that i'm wrong. >> if it does, stuart, it won't be for a month because all of the capital investment cuts that have been happening over the last couple of years are going to make themselves well known is beginning to 2017 and even if demand stalls further, i think we are still going to see production reductions. they can't continue at this low price. stuart: what about american

crackers and american producers? are they gearing up in ramping up about 50 bucks a barrel? they will bring new product on stream, aren't there? >> yes, other parts of the u.s. in other words, the recovery is not happening all across the oil patch. it's only happening in a select few areas of texas right now. a little bit of north dakota. pennsylvania, ohio, et cetera, not a major expansion. other locations in the gulf of mexico is simply the status quo. the recovery is much more slowly fellow. stuart: president-elect trump says he will restore the incentives for clean coal. you know about this.

there is no such thing as clean coal, is there? >> they go back to the fundamental molecule of a fossil fuel and they are constantly opposed to it because it represents a fossil fuel. they see it as needing to de-carbonized the earth by eliminating fossil fuels. in that regard they don't like natural gas or oil either. they are more tolerant because people need it to live their life. it is very possible to clean up. you can clean up my name more than we have. clean up our use coal. you can actually change the molecular structure of how coal is used to make energy, buy gas to find coal instead of burning coal. stuart: at the comparative price. can he do a competitive price? >> it depends what time. you are looking not appeared in my book, i've written a whole

mechanism as to how you can actually increase the technology deployed while reducing the net cost to the user's of electricity. but it takes a 30 year period to think through it and it takes the changes and yes it is possible to do it at a competitive price. stuart: just don't count any fossil fuel out of her energy makeup in the united states. john hofmeister, thank you for joining us. we will see you soon. the dow industrial hovering right around the 10,900. yes we are on the 20,000 watch. i doubt we will get there in the next 20 minutes, so we're not going to use that fancy graphic we paid a lot of money for. our next guest is leading the charge. to cut government regulation. pat to me, republican pennsylvania is with us. you are going right after doc frank, aren't you? >> it's doing a lot of damage.

this is a legislation very badly can need in the first place. it codifies this category of financial and additions as too big to fail, creates a mechanism to require taxpayers to bail them out if there is another failure. cf. pb is a completely unaccountable out of control agency deciding what kinds of services customers are permitted to engage in. it's a disaster. by the way it's been devastating for small banks. trade to small banks, community banks. >> america and a launcher country longer lunches start a community banks. stuart: since donald trump was elected, bank stocks and i know viewers know this very well, have gone up very shortly on the expectation dodd-frank would be amended or repealed. do you want to sleep the whole thing away and replace it with something else? can you do that in a time frame?

>> actually asked, i would get rid of the whole thing. you could argue the part that deals with derivative clearing is probably fine. the fundamental problem here is what we should've done is make the the changes in the bankruptcy code so when there's a failure of a financial institutiinstituti on is resolved in bankruptcy rather than through a bailout. that would be a fundamental thing i would do differently and having done not, as long as we are convinced we can resolve these firms in the bankruptcy context, then you don't need the massive overregulation prohibiting activities including profitable ones. the micromanagement of these firms by the government to very bad idea. you're just writing no-space monstrous banks run right all over america again. >> the fact is all kind of financial institutions are cut up under the dragnet of dodd-frank. i want to change that. i want to have a competition and

creditors provide discipline but historically they have provided and that works in other industries. i think there's going to be some democrats interested in working with us. i think we are going to get a lot of it done. >> the first six months of the administration? >> are disabling. stuart: one last one. the president-elect donald trump is strong-arming the ceos of some big corporations at boeing, lockheed martin. do you approve of that? mainstream republicans don't like the idea that a president going after corporations. >> i'm not sure strong-arming is the best way to characterize it. i do believe this. i'm pretty sure president-elect trump understands the way we are going to change this economy and create opportunity and growth is not one company at a time. it will be creating an environment where people want to invest and expand business. stuart: senator, thanks for joining us. it is thursday.

that means it's dan henning thursday. "wall street journal" deputy editorial page editor has got a piece as he does every thursday. i will read the headline. you wrote the headline. >> yes, indeed. michelle's trump despair. sub headlined, trump out hoped liberals who got it on the idea of political hope. explain yourself. >> this is the christmas season so i thought we needed a column on hope and as it turns out, michelle obama and donald trump got introduced this week over the idea of hope in america politics. michelle obama was interviewed by oprah winfrey and says we feel as though there isn't any hope any longer in the country. hope is very important to people. everyone took this as a shot at donald trump who himself said she didn't really mean it. that aside raises the question of what about hope in american politics.

every politician runs on the idea of bringing hope to people into the population. there's a difference between the rhetoric of hope and reality of hope. democrats are good about promising things. as hillary clinton did this is supposed to lift people up. we have listened to liberals and progressives on this program that will give us hope, but don't deliver on the reality of a prosperous economy or life. switch over to donald trump, a businessman offering a different kind of hope in a very alternative, radical sort of way. that is the hope donald trump stole from the progressives. trained to do you like the idea of president trump going after the bowlines of this world, lockheed martin, just jawboning

that, hey, knock it off, get the price down. >> is senator to me said they had that these companies we have to come to grips with donald trump standard operating procedures which is to say things like this, bringing people on the side of the head, get everyone's attention and i think in private conversations are much different, much more sensitive about the details of the fighter or the white house. >> the opening bid is the final end of the deal. >> it's very unusual and for a president, saying things in public you doesn't mean in private is tricky. can you figure out a way to negotiate a way through donald trump's world. >> totally different from anything we've ever seen before. breaking news on someone trump.

>> someone trump is getting on a flight with her three children and a man on the fly started harassing and yelling at her. her father is ruining the country. why is she on her flight pushing her she should be flying private. so ivanka according to the passengers totally ignored him. jetblue apparently escorted this man off of the flight. an hour before this, the husband of this guy treated that ivanka and chariot at jfk flying commercial my husband chasing them down to harass them. merry christmas. stuart: did that just happen? interesting breaking us interesting breaking as the got to say. tanks are bringing that to us. i can't help but show me this again. i've labeled these folks paid to messieurs.

they are great gathering at stonehenge to celebrate the winter souls to come in the shortest day of the year and beginning of winter. i'm being very pejorative. pagan losers is what they are. president-elect trump met with a dozen other top military brass yesterday to discuss ways to reduce costs, particularly the f-35 fighter jet. up next, the man who basically ran the army. the nuts and bolts of it. we will get his take on mr. trump's meeting. also has advice on what he can do to keep americans safe from terror. first, here is that mr. trump said about the berlin attack. [inaudible] >> it's an attack against humanity. that's what it is.

>> i am nicole petallides with your fox business brief. narrow trading range moving 48.57 volume year on wall street. growth of 3.5%. that was higher for gdp. keeping the dow on the downside down arrows would include wal-mart, american express and apple and gnocchi and now a number of lawsuits against the apple maker, iphone maker to the downside. but the representative looking at alibaba market and putting

this one on a worried list about their credibility for that one. at&t has an app called protect in the robocalls no doubt 20,000 today. at td ameritrade we believe the best investments are the ones that matter most to you.

stuart: holiday travelers may be helping set a new record. 103 million others will travel

from christmas to new year's. the highest number ever about 1.5 million more than last year. germany, video of the suspect a terrorist, they still have not found him by the way. a migrant who was previously investigated for ties to terror. he is still on the loose. the christmas market, the scene of a terrorist attack has reopened today. new this morning, the obama administration is officially ending a post-9/11 era registration system for immigrant men from mostly muslim countries. but this all about? >> it is called the national security entry exit registration. it's been years from 9/11 up until 2011 and that's been the obama administration did not use this anymore. before he goes out the door, before he hands out the keys to

donald trump, he is scrapping this registration system that has been in place but not used since 2011. train to the top of the muslim registration and as mr. trump will do it. it's been on the books throughout the obama administration in the use day. >> he has the presidential power. stuart: fascinating development right before the change. inc. cindy. i want to bring in someone who knows about this. former deputy assistant secretary of the army, then. welcome to the program. the muslim registry i didn't know was on the books. president obama just ended it just ended a period when do you make of this? >> we have seen in germany we were reminded of the hard lesson when he put out a welcome mat. refugees from every known terrorist hotspot. stuart: it's a disaster in europe. >> we need to secure the borders.

trained to do you want a muslim registry reimposed end-use? >> absolutely. here's what i would do. i say muslims, whether, if it's a known terrorist hotspot company should not be coming into this country. we've got to do that. are you going to -- look at the moscow washington d.c. they went on to have al qaeda in yemen. the forte terrorist went there. one person had come forward with actual intelligence, we could've saved some lives. i called for a rewards program for moderate reformed muslims. if you encourage them to come forward, with we can save a lot of lives. >> you've got two things here. a registry of people coming into the country from terrorist hotspot mostly more strong

surveillance of mosques. or taking a very hard line. >> i am calling for a reform of moderate muslims who see something going on to come forward. i'm a big fan. i first met him 20 years ago with the checking and special forces. king abdullah has called this world war iii and he has called it a war within islam and kenya doll is right. we need to work more closely. stuart: hold on come the left says by saying what you are saying, you play into the hands of a fifth because you are victimizing them. they can recruit on that basis. >> to 9000 people were taught illegally coming into this country in 2012. many had middle eastern names have changed into hispanic names yet they know how to get them

there. >> that is a tough guy. >> i want to protect american people appear that's why we have the federal government. stuart: look at the lockheed martin. i'm not quite sure how to put this. this is the interview president-elect trump. do you approve of that? >> i do. you can't do this every time. we've got to have the tree without bankruptcy. we need to reform the procurement of loss and the pentagon were contractors are encouraged to come in under budget and ahead of schedule and we can do that. i would take the previous service secretaries and the director office of management and budget. let's look at a perspective contract system for the pentagon. we can save lives and save money and improve the readiness, which is at an all-time low. >> as i i understand it, president-elect trump wants to bring an e-business oriented

manager at the number two defense department, for example. homeland security or a business person has knowledge of how to get the cost down and make it more efficient. >> i like that. the person has got to be careful not to be co-opted by the federal bureaucrats. i've seen this movie before. they know how to do it. stuart: we are federal bureaucrat? >> i didn't have white hair whenever the mobilization. stuart: thanks for joining us. merry christmas to you. now this. we had jeff flock on earlier. he was skiing the slopes of the grand geneva ski resort. the cameraman took quite a spill. we are going to check back with him. see how they are doing in a moment. yes, we will be back.

>> believe it or not, that touch behind the camera, be careful, buddy. i just took him into a tree. stuart: ladies and gentlemen, i do believe the cameraman had a small accident there. i do hope he's okay. let's see, shall we? jeff flock, tell us, please. >> you know, we always try to push the envelope a little bit.

sometimes you crush through the envelope. he is very proficient upper talk of the empty backwards at the same time, that he put a piece of gunmen before the broadcast and i think that was one over the line. can you show them your all right there? areas. very proficient fellow and still living to tell about it. over this cliff is where he might, by the way. he went right down over that side into these trees. okay. he was going backwards. smart enough to go forward. trades are interesting enough. that was quite something. jeff flock, everyone is well. earlier we told you about ivanka traub harassed on a jetblue flight. the passenger was removed.

jetblue has issued a statement. >> this is on the ground at jfk. jetblue said the decision to remove the customer is not taken lightly if they cause conflict, the customer will deplane if the crew feels the situation runs the risk of escalating during flight. off that person goes. the husband of this guy earlier has been identified as professor there you go. the edge indicated people out there. >> apparently the man on the plane was screaming at her. >> ivanka and her children were there and did everything she could to try to ignore them but it was impossible. when you start screaming and yelling, you're going to be taken off. >> quite rightly so. they created the mass about

being escorted off the plane. you can see the background and the passengers all get rid of them. train to nowhere near 20,000 on the dow. we tried, we failed. we will be back. ♪

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stuart: the president-elect communicates via two, twitter, he sent out a new tweet and it is a big deal. >> it is getting reaction. he says the united states must greatly strengthen and expand its nuclear capability until such time as the world comes to its senses regarding nukes. stuart: united states must greatly expand its nuclear capabilities. that is quite a statement on a tweet. >> usually we are negotiating getting rid of nukes, donald trump is suggesting we have more

nukes until the rest of the world comes to its senses. stuart: i'm having a hard time keeping pace with the daily development, yesterday there were several developers, today we have this one just coming out moment ago. really an extraordinary thing. we started by saying we have never seen anything like this before and that is true. it is yours, neil. neil: i am thinking of this we say we get to doubt 20,000, but donald trump promises more nukes so we are all alone up as we are counting our money. stuart: have you become a leftist all of a sudden? neil: just worried. you don't seem to be. stuart: you are not a worrying kind, get out of here. neil: a lot more we are following, i am thinking about that. in the meantime, i don't know if you got your christmas shopping done. i am always late at these things