we should point out, we went all over tax reform, dagen. dagen: you guys in the house better get something done, three months, hurry up. maria: and they did. not yet, but president trump is promising us tax reform package in an um couple of weeks. charles payne is filling in for stuart this morning. over to you. >> thank you very much. stuart will be back on monday, for now, the big story, it's a day of rage in iran. hundreds of thousands pack the streets on anniversary of that country's revolution and they are chanting, "death to america", this is only 12 hours after a federal appeals court upheld the suspension of president trump's travel order. iran one of those where travel was halted. he tweeted see you in court, the security of our nation is at stake.

and tax cuts coming from president trump and the top tax writer is in congress. and "varney & company," we're going to start right now. ♪ ♪ >> that's right. we're playing that in honor of stuart varney on a rare vacation. var-lago. liz: isn't that weekend with bernie's? >> president trump meets with senator majority leader mitch mcconnell and japan's prime minister abe at noon. tom price was confirmed, and

looking at obamacare. the travel restrictions-- >> we have a situation where the security of our country is at stake and it's a very, very serious situation, so we look forward, as i just said to see them in court. >> joining us now is judge jani janine, you probably thought 3-zip threw people off and when you go into the details of this it sort of gets scary. >> you know, i wasn't surprised at all and i believe that the genesis of this whole case starting in the state of washington, they knew it would go to the 9th circuit, laughed ott, overturned, liberal in the country. overturned by the supreme court.

and i never thought that the standing would be to sue. t important for youriewers to remember this, no one, no one has the right to enter the united states of america. especially a foreigner. let me say that again, the only people that have the right to come here are the citizens and the people who want it come here, we don't know exactly who they are. there is no vetting in their countries and the president has plenary power as comes to i am gra i gos-- immigration, and with the united states code. >> we've become familiar with and even failing high school students know how to interpret, but this court did not. among other things, the court citing other cases, stations by decision maker motivated by discriminatory purposes.

i don't know how it will go into the next legal decision or the ramifications, if the bar is higher or tougher, but you start to play this out in the public appeal. the american public is overwhelmingly for the temporary stay. it's a common sense measure. this court seems to have added a lot of political fuel to the idea it was a muslim ban, and it was designed to hurt people and had nothing to do with security. >> you know, the shame of that, charles, is that number one, it is a ban on anyone coming from those countries who is not a citizen and the white house counsel made it very clear that this is not about anyone with a green card. that was resolved early on. so, this is about people coming from a country who don't have a vetting system, one of those countries, as you just played in your earlier clip, i mean, they're yelling death to america. they live to kill us, if you don't know that, you're stupid. you know, what we've got is a group of people where even isis

has said we're going to send killers in these people, in these groups of people. so, to claim that due process is even relevant here is absurd. it is not relevant. they do not have due process rights, they're not even on american-- on our country grounds. >> the involvement of 130 of the biggest companies in this country with the amicus brief, did that sway this at all and does it say to the american public that the needs of the elites still come before the constitution? >> i think that the needs of the elite come before anything that donald trump is in favor of, and make no mistake, charles, whenever a judge makes an assessment, you know you've got the scales of justice in front of you. i want you to think about how important and how wavy our national security is, as opposed to the interest of some foreign national whose background we don't know whose fbi director james comey said

we don't have a way to vet them, we don't know who they are, and yet, these companies as well as the 9th circuit, these three judges, one appointed by carter, one by obama and one by bush and then, of course, as a circuit court, i should say, made the decision to add its impremator to this. >> and come on. >> the judicial branch maybe has not the same footing, but the right to be involved in security matters as muches a the executive branch? >> that's what's happening here. they are conflating issues, they say there are three co-equal branches of government and that's where they're getting messed up here the constitution is clear on issues of immigration, national security, there are plenary powers that the president has and to ask him to prove his reasoning is not relevant to a

temporary restraining order. i've issued them myself as a judge. is there irreparable harm? you irreparable harm for a student at a university? no, it's the plaintiff who has to show the harm. this is all convoluted and, charles, i believe that what donald trump needs to do is you go for that nuclear option, you get gorsuch on the supreme court, but even if you don't, i truly believe, this is the supreme court and-- >> the way it's structured now. >> 4-4 and even though i'm an idealist, i believe in the law, i still believe that they understand that there is a constitutional power that this president has. >> judge, please stay right there. in the meanwhile, i want to bring up kellyanne conway, kellyanne conway and hillary clinton having it out on twitter. ashley: we talk about the twitter presidency, it goes on after that 9th circuit court

decision, hillary clinton put t this tweet, just simply 3- that's a reference to legal battles that president trump lost. pawmi, for kellyanne conway. referring to the states that flipped. >> what they focused was the unanimous part of this. hey, even the judge picked by a republican saw that somehow this was harmful to america. >> okay, and doesn't that-- isn't the whole point that they politicize the court. you shouldn't even be pointing to that now it's a political football game. look it, your team came on our side. that's absurd, what you've got to focus on the argument that was not based on the decision,

which has to do with immediate damage to individuals who have no due process rights. >> thank you very much. of course, you don't want to forget to watch because you never do forget to watch justin -- justice with judge janine. >> thank you. >> let's check the futures, another record, it's been phenomenal. speaking of phenomenal. we all gave up on sears. well, check this one out. up 42% at the open. i mean, so, if sears is up, there's hope for everyone. of course, remember though the market got the big pop during this show when president trump said a tax cut announcement was coming. neil cavuto spoke to the chair of the house writing committee and take a listen to this. >> i'm pretty positive about where this is going and for businesses that want to know, this is going to happen this year, this is really important.

>> but it is fair to say that corporate and then the individual rates are done concurrently? >> i sure hope so. i think that's the best way to go. >> and the president is of that mindset? >> he's looking at it all. >> joining us is university of maryland economics professor peter maurie morici, was that t magic cue? >> i think so. there was some concern that personal rates would be booted into next year. the important thing is that this tax reform is really well conceived. it hits the right buttons, all of them really well. it's going to be a pro growth reform and i like it a lot. >> should the white house and republicans focus initially not something broad and massive reform, because we know that's cumbersome and difficult, but just getting the rates lowered, you know, we've got the quote, unquote, phenomenal

announcement. for me that would be phenomenal enough. you can't lower the corporate rate without reforming as well because simply you don't have enough money to simply cut the taxes, so my feeling it's all at once. that's one thing. and the other thing is, we don't get many opportunities like this where we have a republican house, a republican senate, a brand new republican president in an odd numbered year, if there ever was a time, now is the time. if not now when. if not them, who? >> the reason i asked, we just had brady on, he's pushing for a border adjustment tax. republicans, paul ryan and hers want some sort of tax to offset revenue from lower taxes so this is why the markets have been concerned. it's great that we hear president trump stepping up because we've got politicians who always fumble the ball, but it's not necessarily-- the idea is a slam-dunk, the implementtation may not be so. >> yes, but it's really silly. for example, wal-mart, target and so forth. it'd be one thing if they had

to pay a border tax on what they imported, but not. everybody will pay the same tax as a consequence, and there's no consequence between the firms and they will be at the same situation. the other thing, we're subsidizing the rest of the world. everyone has a value added tax similar to our corporate tax, they tax our imports, but we don't tax theirs. we're paying for the tax bills in europe, that's silly. >> peter, stay right there. president trump telling china's president that the united states will honor that one china policy. peter morici coming back for more on that and also the day of rage in iran. hundreds of thousands taking to the scenes. they're protesting president trump burning american and israeli fans. and that's one of the countries where the executive order was. and syria's president assad,

make no mistake, there are definitely terrorists among the refugees fleeing in country. we're all over it, more varney after this. why pause a spontaneous moment? cialis for daily use treats ed and the urinary symptoms of bph. tell your doctor about your medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, or adempas® for pulmonary hypertension, as this may cause an unsafe drop in blood pressure. do not drink alcohol in excess. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have a sudden decrease or loss of hearing or vision, or an allergic reaction, stop taking cialis and get medical help right away. ask your doctor about cialis.

>> new video from tehran where hundreds of thousands rally against donald trump and chant "death to america" all while burning u.s. and israeli flags. the country is marking the anniversary of the islamic revolution. joining us is zuhdi jasser with americans for foreign democracy. this is one of the seven countries from which president trump said we should have a temporary stay to review the vetting. according to the judges last night, maybe they're not the problem. we can plainly see there are serious threats for americans in that crowd. >> well, absolutely. but charles, before we get too

concerned about the mobs, they do this every year, it's the 38th year anniversary of their islamist revolution since 1979. we somehow thought the apiecement e apiecement-- appeasement era of president obama, they still have missile testing and war exercises every time of this year they're doing it today. so it hasn't changed. all that's happened is the agitation propaganda increased and appeasement end so they're basically trying to flex their muscles and scare us, at the end of the day the lack of appeasement actually forced them to take an is missile off. we're starting to see them squirm and yes, isis threat increased, but we're finally confronting the ideology and seeing it displayed. charles: are we seeing history repeat itself.

president reagan is inaugurated and they return our hostages. does iran get this is a new sheriff in town? when you're feckless and belligerent to eight straight years it's hard to turn on a dime. >> sure it. they'll try the same old message of agitation propaganda domestically and they're afraid of the green revolution. if we want an anti-nuclear program i hope we help the green revolution and isolate iran which is really what needs to happen and i'm concerned about russia helping them bypass sanctions, but we've seen in the past, tyrants respond to sanctions and strength and that's the only thing that's going to contain them and what they're doing in the region, syria, yemen or across the world, as general mattis is concerned. charles: president assad telling yahoo! news there are definitely terrorists among the refugees, what do you think about that? >> listen, i hope we don't get

information on isis out of assad. our homeland security commission released a report talking how the threat is very high. we already know that since we haven't been fighting the ideology we know that jihadist threat is very significant, but assad created these monsters and he is the jihadist site of the isis threat. i'm not looking to look to assad about the genetic cleansing. and as mattis and others begin to push and finally seek victory against isis and defeat them, we're probably going to see bigger threats against isis as they try to squirm and create attacks in the last ditch efforts. charles: zuhdi jasser, thank you as always. >> anytime. charles: miranda carr, fiancee,

blasting for stealing her ideas, telling that it's a disgrace. and question, is the president softening his approach on china? did he blink? more on that next. >> what china has done to our country is the biggest theft and the greatest theft in the history in the world. this is the one i didn't want to hear, give me china. give me china. china. you ever see china's tone? >> china. >> china, china, we don't win anymore. when was the last time we won? we lose to china.

>> president trump tells china's xi he will honor the china one policy. economics professor peter morici is here. what does it say to you and global trade and other issues. >> i don't know it would be possible to sit down with china and not make that concession to start with, so my feeling is, to do the things we need to do to break china on trade, to break through and put pressure on a lot of points, he had to say that or they certainly wouldn't sit down with us, and the american people wouldn't put up with a tariff and the south china sea without first sitting down. charles: having said that, we

know that peter navarro wrote books on punishing china and others saying tariffs out the gate. the entire trump seems to be th right? >> i don't know that they're the ones that are going to count. i don't know that navarro will have anything to say. i think it's cohen with the national cand i don't know that as committed. if there's an area i think they're going to climb back down, it's on trade. i don't like that, but i see them pushing ahead on regulation and taxes and education. charles: you prefer a trade war? >> excuse me? >> you prefer a trade war. >> we're in one. they're trying to get the deficits out of them. they're not geniuses, we're not little shrimps. charles: a check off the futures, it looks like we're going to open your another

record level, trump valley continues. more corporate opposition to president trump's policy. you're not going to believe what the ceo of expedia, who happens to be an iranian refugee said in a call this morning. we'll tell you. the opening bell is next. hey nicole. hey! i just wanted to think your support team for walking me through my first options trade. well, we're all about educating people on options strategies. i won't let this accomplishment go to my head. get help on options trading with thinkorswim, only at td ameritrade. you may sometimes suffer from a dry mouth. that's why there's biotene. and biotene also comes in a handy spray. so you can moisturize your mouth anytime, anywhere. biotene, for people who suffer from dry mouth symptoms.

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>> the opening bell is ringing

right now. there's a tremendous amount-- well, 14 seconds, a tremendous amount of excitement, guys. we closed at a record high across the board for every major indices. there are major story lines that go along with this, this is not just empty excitement, empty sentiment. we're seeing reality meet that sentiment. let's check the big board. as the bill rings, the dow 30, you can see the majority of them have opened higher. meanwhil twitter shares, which took a beating yesterday, well, here they are right now, a lot of people giving up on them. gave up on them a long time ago. give me a new ceo and i'll reconsider. we've been talking politics and look at this. expedia, you know, company, the travel booking site and up and more money coming in. the great news for them. wait until you hear what the ceo has to say, more on that in a minute. ammunition maker, this took a huge hit. nobody is worried that their

second amendment is going away under president trump and that's hitting the gun makers and ammo makers, remember, some were up 1,000% under barack obama. the big story, sears, talk about giving up on something. you see on the board up big time. bring in ashley webster, liz macdonald, listen, we saw the good violations and president donald trump talked about a phenomenal thing, but heard from james bullard saying only one rate hike this year, scott. i think that donald trump bought us three weeks and i think bullard bought us all year. what do you think? >> this is what i love, we can't really trust the fed. last year we were going to have four rate hikes, we had one. we can't read too much into what they are saying. this u.s. economy is like aircraft carrier, we're not

going to turn it around like pt-109. i think he's closer than janet yellen with the three. we'll see what donald trump does with the economy. it's not going to happen right away, three, maybe six months, two quarters. what he said was spot on and the word phenomenal caught these guys eye and that got us going as well. liz: can traders and investors put their faith in policy setting and forecasting all over the map? last year they said four rate hikes and it feels like a careening ferris wheel to the ocean. charles: the fed has turned talk talking three hikes. you have bullard, a voting member of the fomc and at the close evans echoing the same sentiments. the fomc, the meeting said more or less they're going to get out of the way. this is what we need as a back stop to know one thing that could derail is a trump economy is an overzealous fed. >> i think what bullard is

referring to is the cross-currents, as much as tax cuts help we have the infrastructure spending and also the potential of a trade war. so if we do have that there's not going to be this euphoric rally. charles: he mentioned the trade war having impact further down the road meantime, 2018, 2019 could be phenomenal. speaking of phenomenal. facebook had a heck of a run. news hoding them back, ashley. ashley: they've announce they will have a series of audits how their ads are consumed by consumers. in other words, when i'm an advertiser, i advertise with facebook, how do i know what i'm getting? so independent arbiter is coming in, called the media rating council and see the facebook makes, the number of eyeballs on the ads, whether it's true or not. so in other words, advertisers will have more faith in facebook, who let's face it, had some embarrassing data

mishaps. charles: last night it tomorrow, tom price confirmed health and human services secretary and obamacare, closer. liz: this is the thing, phenomenal tax cuts, that's what the president said yesterday. the markets cleared all indices are up. and obamacare, both of those reforms are a mystery. charles: there's some frustration even in the republican party, the game plan, what comes first, taxes, obamacare, how do you do it? it's a monstrosity. should they tackle it first and are you confident that tom price has the plan? >> i'm not confident that tom price has the plan because it comes down to replacing obamacare with another series of subsidies, which are equally expensive unless they do something about the price of health care in america. we spend 50% more than the germans do for private insurance systems that are comparable. and quite simply the difference

is the prices we pay for drugs, medical device, inefficiencies in the hospitals. something needs to be done about that and republicans don't like to do things about things like that. they don't like to get into the regulating businesses on prices and costs. charles: one thing they can do, jeff, is rewrite the laws concerning what's full employment. not, you know, bring in some competition. some tort reform. there's some low-hanging fruit that could affect the economy. >> and all of these companies aren'trowing because they don't want to take on full-time employees and a surge in part-time employees. once you address that, you're going to start to see a lot greater momentum because i think what it comes down to is that the replacing obamacare has to be intricate to what helps small businesses. if it doesn't, it's going to have a negative--

>> what should come first, tax reform, lower taxes, the wall, dodd-frank. >> i don't know that we have a choice. i think it will run through two different committees and we'll see who makes the compromises faster and who gets there first. they can both happen at once. it's not like we're sending up eight major pieces of legislation. this congress can deal with two or three. charles: let's hope. all right. hey, guys, check this out. the expedia ceo ended a routine conference call saying hopefully we will all be alive to see the end of next year. of course, we all know that was a direct shot at the president. >> talk about uncertainty issues. >> that's silly, that's a silly thing for a ceo to say. charles: okay, i mean, we know-- scott, it does underscore the notion that the corporate world is-- at a sort of loggerheads with the president of the united states, despite the fact they love lower taxes and lower regulations. >> wait a minute, wait a

minute. charles: and let's go to scott and i'll bring you in. >> here is what con found me, the intellectual inconsistencies of those type of folks astound me. i was going to go right to that point. they want the tax cuts and want less regulation, but the same time they're allowed to say whatever they want about them. yet, if somebody says that they really like him, all of a sudden they want to boycott things. it doesn't make sense to me. you've got a silent majority once again staying quiet doing their jobs and making money and we have to listen to these babies talking about the h1b visas, and the people bringing in here and we have an unemployment rate huge for our own kids here. it drives me crazy. charles: peter, isn't that the situation here. >> hit the nail on the head, scott. charles: and their cheap labor source. >> they're hipocrits on this, this he want cheap labor, they want deregulation where it suits them and socialism for everybody else, it's not the whole corporate sector it's the

baby in the i-tech sector who have been pampered and coddled. go to the ford motor company, and ask mark fields if he likes donald trump or the other auto companies. nothis is silly. we give too much credence to those stars at you know, on the west coast. charles: mark fields came out on the last white house meeting and talked about a renaissance in american manufacturing. >> there you go. charles: let's take a quick check of the big boards, we're off stronger than anticipated. we're up 50 points out of the gate and now, 20,223. i'm going to have to find a frank sinatra song. liz: are you going to sing again. >> did it my way. charles: and not great for everyone, yelp is one of the names not participating today, and last night they came a little short. a name that got some rebound recently, but can't get its act together. on the other hand, activision, blizzard, doing well, and not only are earnings well, but buying back stock and hiking

dividends. and the two ways you reward shareholders, buy back stock and hike dividends. and now we're learning tell log may lay off people. all right. another big news item for you, big sector, all right, the company. they're buying mead johnson nutrition, i'm so sad because i sold mead johnson a week before the announcement. ashley: oh. charles: i'm crying. and finally taken over. >> they are finally getting taken over. and they make infant formula, in the premarket action they continue to gain. 89 details 16.6 billion if you include the debt up to 7.9 billion in value that's 90

bucks a share cash. and they have opinion-- been desperate for a sales bump. that was the worst performance in a decade. they make lysol, fatware, condoms. charles: condoms and a baby food maker. >> counter intuitive. and the company makes big money there and china has pushed back recently. >> focusing on the emerging markets, yes, charles. charles: ammunition maker took a huge hit yesterday. no one is afraid that the second amendment is going away under president trump and that's hurting these gun makers big, big time. reuters reporting that the border wall will cost $21 billion and take 3.5 years to build. what do you think on that, liz.

liz: of course, they had a 10, 12-- then it went to 15 billion and then property rights and congressmen out of texas, this is clyde bundy get off my ranch fights. the price is going up and i don't think that mexico is going to pay for it. charles: taxpayers will pay for it out the gate and the administration will find a way for mexico to pay for it. >> what is going to stop people from doing what the drug cartels have been doing, tunnel underneath. charles: when i was in the air force, law enforcement, we learned you can't stop anything, the more you deter it the better. and at the wall, you can curb this a lot. go ahead, peter. >> you raise the costs. if they have to tunnel through, then you have that many fewer people. right now it's been pretty easy with president obama, if you get in, they buy you a hot meal and let you live with your relatives and never see them again. why not when we catch them send them back, no hearing, just

accepted them back, and if the 9th circuit wants to complain, they're not here general more. liz: peter great case. when our folks came through ellis island they got a new name. they didn't get a fresh hot meal. charles: quick, jeff. because you've been too quiet. is there a way to make money on this wall? >> yeah, i think there is. the infrastructure, the amount of infrastructure spending that needs to go into building this project is unprecedented. so, yes, i think focusing on these companies, you can in fact. charles: thank you, very, very much. scott, jeff, peter, you guys were absolutely fantastic. one last quick check of the big board. the dow -- all the major indices not only a new high, but running like crazy. remember the old addage, new highs beget new highs. and it's official, president trump expects to cut taxes ahead of schedule and we could get a formal announcement the end of this month. the daily dose of outrage, the principal at a new york city

private school says the trump administration is worse than 9/11 and you want to know where varney is, telling a principle the real deal. we'll be right back.

>> let's check on that big ford once again. the dow up 60 points and this is approximately a high of the session, of course, the highest the market has been ever. it's a huge rally. remember, the stock began rallyi tax plan. joining us know now is former congressman ron paul, ve ublican from texas.

adopted in washington, mange instigated by liberals, but conservatives are starting to accept it, you have to pay for it. which is absurd. if you and i get $100 back, we've taken something from the government and we owe it to the government they have to take it from someplace else and that's bad. my argument is that all spending is a tax, one way or the other, a direct taxes, inflation taxes, borrowing taxes. and has to cut spending eventually. but obviously, the market is agreeing and they love it. i would certainly vote for it. i'd want the biggest tax cut ever, but believe me, i would keep emphasizing, it won't work unless you cut some spending. you just can't spend endlessly and think you can print the money and let the fed run wi along well. congress do well when they spend money and the fed

accommodate and monetize the debt. charles: we have this ticking time bomb and folks like you, know you that you're people think you're blowing ske. i'm not disagreeing with you. but not getting the spending cuts you want, the president said he's not going often titlements and increase defense spending. even though we're going to get better deals like the lockheed martin situation. so there's not going to be a solution, could it be supply side orthodoxy, could that come velocity of money in society? >> maybe, all the conditions. but you know, the money that they take from us is going to damage the economy and that is the problem. and right now, the plan is to spend more and cut the taxes. we should cut the taxes, but

i started preaching it in 1971 when gold was $35 an ounce. i said you print too much money you'll have problem ap we've had recessions and depressions and nasdaq bubbles and housing bubbles burst and right now look at p.e. ratios, nobody talks about the p.e. ratios and i'm not a trader in stock. it looks like p.e. ratios are getting pretty big, but you don't hear that, yes, it comes to an end. people say, well, you know you can't say you being just have honest money like gold. if they've been buying at $100 and-- >> we agree that it's a great store value, but some say despite the things you talk about here we are at an all-time high across the board. i want to ask you one thing, your the libertarian, you know, that everyone looks up to. and i want your idea of the president trump saying, hey, we'll kill two regulations for every new one because i think

that could be sort of a gimmick by congress and use of executive orders right now, is that a big government thing? >> oh, that's great. the thing of it is, if you were a strict constitutionalist y has no right to write laws, and regulations are laws, you should cut regulation and congress never seems to get to that. if you can't have the whole pie, you can say if you have one, cut two. every time the congress solves a problem, they create a problem. that would he reversing that trend, you cut one, and you give one new regulation and cut two, it would be in the right direction. i certainly would support that. charles: make sure they don't game the system and give us a $10 billion regulation and take away two $10 million regulations. >> there you go. charles: ron paul, thank you very much. appreciate it as always. i want a quick market scan,

folks, that's your dow 30. the majority of stocks are up, it's not across the board. many are saying it's to a degree a stock picker market. the fiancee of eve van spiegel, miranda ker, she says they're stealing owl of her boyfriends ideas. and reduce symptom severity by 45%. shorten your cold with a snap, with zicam. or keeping a hotel's guests cuttinconnected.i to 35,000 fans... businesses count on communication, and communication counts on centurylink.

>> activism blizzard leading the s&p 500, hiking their dividends and buying back shares. that's the ultimate one-two punch if you're a shareholder. snap supermodel fiancee is tired of facebook stealing his ideas. ashley: the supermodel, fiancee of evan spiegel, one of the co-founders. she says, look, i cannot stand facebook, can they not be innovative, you can read that on the screen. when you copy someone, it's a disgrace. and how do they sleep at night? someone pointed out probably on a pile of cash. charles: and i'm saying

welcome, everything is stolen. and why snap is having three classes of stock when they go public and people who buy it public won't have any voting rights. i'm route raged about that, miranda, come on the show and tell us what's going on. the new york post reporting that the principal and progressive manhattan private school sent parents an unbelievable e-mail. . liz: yeah, calhoun which has been around since 1896 basically the guy said, this is trump's victory is worse than 9/11. basically the worst thing he's ever seen. so what is happening here, he's saying we are for open, you know, discussion and debate at our progressive school, but talks to the parents of the student, are you kidding me? if we tried to we'd be treated like a leper. and it's one of those intolerant liberal left stories. charles: i bet you need three pieces of i.d. in the school. i doubt if any illegal immigrants are--

>> and what an insult to those associated with 9/11. charles: outrageous. liz: by the way, more troubling than vietnam, the assassination of dr. martin luther king, 9/11 and watergate. >> oh. charles: hopefully an apology is coming soon. back to the big board. the market is recording new highs. president trump says he's got a plan and we'll know about it in a few weeks. the dow loves it. it's up 55 points right now. meanwhile, it's death to america day in iran. thousands and thousands taking to the streets burning american flags and this, of course, the same country that signed that nuclear deal with the obama administration and one of the countries named in president trump's immigration order. hour two of varney just three minutes away. kes sense. now on the next page you'll see a breakdown of costs. what?

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promise of a tax cut, cuts, rather. the fed also hinting perhaps only one rate hike this year, sending us into record territory yet again. president trump, keeping his foot on the gas, three weeks in, frenetic pace to start his presidency. and today meeting with japan es prime minister pledgedhundred how jobs to the united states -- 700,000 jobs. then there is iran, day of rage, hundred of thousands in the street chanting death to america. hours after appeals court upheld suspension of president trump's travel order. do not adjust your tv sets. i'm charles payne in for stuart varney. he will be back on monday but hour two of "varney & company" starts right now. ♪ ♪

charles: that the ode the market singing to the white house this morning. happening right now, president trump meeting with senate majority leader mitch mcconnell. another day of action. then in a couple hours the president meets with japan's prime minister shinzo abe. they will have a joint news conference. then off to mar-a-lago for the weekend. to this. the ninth circuit court of appeals rules against president trump's travel order and upholds the travel order suspension. president trump responds. listen to this. >> do you believe the judge -- >> we have the situation where the security of our country is at stake. and it's a very, very serious situation. so we look forward, as i just said, to seeing them in court. charles: all rise. judge andrew nap he joins us by phone. judge, the handicapping said that the white house would lose this, but thinking was 2-1.

it was three zip, unanimous. does that change anything. >> good morning recalls cha, always a pleasure to be with you and no one should adjust the television set. i'm laughing at that line. [laughter] i don't think there is much significance in the fact that it was 2-1 versus 3-0. the oral argument was highly politicized. look, one of these judges is boyhood friend of mine, know hill for many years. judge clifton. he sits in honolulu. i thought he would be on the president's side because of idealogical pretty dell -- ideas are towards the robust national defense and narrow reading of the constitution. we have an area of the constitution given exclusively to the president, foreign policy even the congress has a secondary role. all it does is fund the state department, confirm ambassadors and ratify treaties.

everything else the president makes those decisions. congress to enhance that gives the president tools. one of the tools it gave him the right to ban any immigrant or any groups of immigrants for reason he wishes consistent with national security. for some reasons these judges felt the president needed to justify by demonstrating evidence proving in urt the reasonableness of s immigration ban. that's absolutely inconsistent with the statute and the history of the statute. but if the white house is listening, they care what i think, i would say this. rescind the executive order, and issue a new one. issue one that is more bullet-proof. issue one that addresses the concerns of those who have caused him all this consternation and get back in the business of defending the nation's borders rather than engaging in litigation.

charles: yet, judge, there are more lawsuits coming including one from virginia that focuses more directly on so-called muslim ban, last night this particular court said states have offered evidence of statements by the president about his intent to implement a quote muslim ban. >> those statements were made when he was candidate donald trump. charles: right. >> i never heard in the modern era of a court taking as evidence something a person said before they were in office in the heat of the campaign. it is interesting you say, another lawsuit is coming. the last time i checked, which i did for chris wallace last night, at a about 6:45, there were 47 lawsuits. there is now apparently 48. don't be surprised if the chief justice consolidate all of them so that they all are tried in one place at one time and before one judge. otherwise the justice department, which just got its attorney general yesterday, is

really going to be spread too thin, and the president's opponents will have a field day by challenging him before 48 different judicial minds. charles: judge, last night the court, this particular court ruling suggested that this order would lose in any future legal disputes, that they said the states offered evidence that temporary reinstatement of this ban would cause harm, irreparable harm, to degree they were talking about students. we know 130 businesses also chimed in with the amicus brief as well. has this changed the dynamics of the next legal hurdle? does it make it more difficult for the white house than it might have been a week ago? >> yes, yes it does. if this case is going to be tried in the ninth circuit, if the seattle case is one of paradigm of 48, as opposed to case in brklyn where there is natiwide temporary restraining order, or boston where the judge

said, this is the president's bailey week. i'm not going to substitute my judgment. if the rules laid down last night bit ninth circuit are going to govern litigation of this case, then the justice department must come in with hardcore, solid evidence supporting the wisdom of president trump's executive order. that is really not anything contemplated by the constitution, that judges can statute -- scrutinize the president's evidence when he made a foreign policy determination like this. charles: judge andrew napolitano. thank you very much. we really appreciate it as always. >> a pleasure, guys. charles: check this out. white house senior advisor kellyanne conway, having it out on twitter. started with this tweet from hillary, quote, 3-0. tell us all about it. >> that is in reference to legal battles donald trump lost, hillary clinton saying you're down 3-0.

kellyanne, conway, goes around and tweets this back, which is very amazes. pa, pennsylvania, wisconsin, michigan, those are states that flipped for donald trump but also making a point. charles: how amaze something kellyanne conway as fighter? doesn't matter what side of the political aisle you're on, what our ideology, she is like mma you don't want to tussle with her. ashley: she was brought in when donald trump going off the rails, got him on message and which know to the outcome. liz: she is saying to the democrat party, you are leading edge of irrelevancy. kellyanne conway what is your growth plan, what is your jobs plan? a number of democrats waking up. not all of them. charles: considering who they may pick for the next dnc leader i think they're in deeper slumber. yelp is bigger disappointments this morning, reporting terrible

earnings after the bell. that stock is plummeting there. activism blizzard looking buying back shares, hiking dividends. those are two-ways you rewarded your shareholders. look at zynga, the farm company, you guys remember them, farmville? the stock is down a ton. be careful with some hot ipos out of silicon valley. > now this. consumer sentiment at the highest point in 13 years, liz? liz: it dropped, for the first time since the election. up at highest point in january. new university of michigan read comes in 95.7 from the 12-year high. first time since the election we've seen a drop like this. charles: how big of a drop is it? liz: pretty big. it was a miss. supposed to come in at 98, 95.7. last month, 98.

that was 12-year high. democrats pessimistic. more republicans optimistic. university of michigan picking up that split in the market. charles: it reflected pause in the market rally we have first time since the election bearishness among investors was 30% he three weeks in a row. i bet the next one is a new record. liz: good point. charles: president trump, tax reform is coming next few weeks. congressman kevin brady, the man in charge of writing the code says tax cuts will happen this year. listen to this. >> i'm pretty positive about where this is going. for businesses that want to know, this is going to happen this year, this is really important. charles: david webb with us, sirius xm patriot talk show host. david, here is the problem. we know president trump will get it all done but wall street and a lot of republicans have been anxious about the idea what is going to come first and the establishment. >> right. charles: you have different republicans want different things out of tax package.

>> but what we need who are people who have economic brain, not political brain leading what needs to be done here. this is who came first the chicken or egg argument when it comes to tax cuts. they have to work in concert. you have individual tax rates, corporate tax rates, they have overlaps with c-corps, s corps and the like. you have to do something about personal taxation. that is something they hopefully work with the states on where federal taxes, state taxes don't become a combined burden or reduce the combined burden on citizens. charles: speak of that, kevin brady who is pitching the border adjustment tax. senator purdue, ceo of two major companies, dollar general, reebok, sent a letter this is nuts. this is regressive tax. it will hurt people but by the same tech ken people say if we go with tax cuts across the board it will send the deficit

through the roof. >> which regression do you want to pick? we have regressive reverse tax with mexico comes to the border tax. so we need to level the playing field there. we can't -- charles: on back of american consumers. >> i don't think we are, because if you increase growth, if you have a supply side economic growth to the economy and you grow it, your tax will go up. cost of goods goes down. the ability to have consumer spending go up because they have more money. why it is necessary to have combined tax policy and don't have it written by politicians with ideology or what they want to get for their carveouts. take an economic approach to this, look at effect on the economy t will not be perfect. some will be messy for a while. charles: right. >> you will not fix this problem with immediate wave of a political wand. charles: we know barack obama hiked rates right away. that really hurt our economy. we couldn't get any growth going. i want to ask you about the obstructionism going on with the democrats. i think it got to the point

where it was so ugly with warren reading coretta scott king's letter from 30 years ago, and then when she, when they finally rebuke her, she tried to turn it into the racial issue. they have tried every single thing since the election to nullify or to at very least smear this administration. >> yeah, they have. and you know, i've got to say it for what it is. the use of the letter by elizabeth warren, by senator warren, she was actually lying. if you actually go to review the public record what was going on in perry county where it was a black versus black predominantly, 70% black county, this was not about race. this was not about race but potential criminality. jeff sessions wanted it resolved at lower level if possible. something we want to do in america, let the courts and our political civil work. democrats will obstruct because they have nothing to offer, to emac's earlier point.

they are becoming the party of irrelevance. to your point look who they are looking to for leadership? charles: david webb, thank you very much. there is this. images after plane at jfk airport a plane on fire. it was argentina airlines flight. it was about to take off for buenos aires, the good news that is scary scene. ashley: wow, no injuries of that. charles: speaking of scarery, iran. one of seven countries on president trump's travel order, now free to come to america where at this very moment hundreds of thousands in the streets chanting death to america. more "varney" next. >> they have total disregard for their country. they are the number one terrorist state. they're sending money all over the place and weapons. and can't do that.

charles: guys check out the big board here. that is the overall move on the market. we dipped on the confidence number. the street coming to the same conclusion as me. people are really excited. that is still a really high number historically. meantime though, ammunition maker vista outdoors, let's face it, president barack obama was the best salesman for guns in history. some of those stocks went up 1000%. they have given a lot of that back. that stock got hammered yesterday. finding a little equalibrium today. we know president trump will not take away your gun rights. pandora, gave a disappointing forecast. the stock is hanging in there a little bit. we've got to look at apple. it finally did it. i think it was 2015. it is new all-time high. it was there earlier today. 132.94. that was the high. a day of rage in iran. iran of course one of those countries president trump's executive order was restricting

travel from, temporarily vetting them. if you check them out. check out the video of from tehran, shows hundreds of thousands rallying against president donald trump and chanting, death to america. all while burning u.s. and israeli flags. joining us now, ambassador john bolton, american enterprise institute scholar. ambassador. thanks for joining the show. >> great to be with you. charles: what an illustration right in front of us, motion folks thought was common sense, temporary travel ban but now the courts have emersed themselves so deeply into this that many are wondering if ultimately it leads to some sort of constitutional crisis and rewriting of the constitution? >> well i think this decision does amount to a constitutional crisis. it's the worst intrusion on the power of the president in national security that i can think of in a long, long time. now it may have been that the justice department didn't provide the best arguments but, maybe they could show that clip,

that you just played moment ago show that to the ninth circuit. among other things, the government of iran is still, even after the obama administration, still on america's list of state sponsors of terrorism. and, if the judges of the ninth circuit need a fact or two, here's one. iranian government has provided more financing to terrorists around the world since 1979 than anybody else, probably more combined than every other state sponsor of terrorism. so this is, this is the kind of second-guessing by judges and a fundamentally political area where they have no competences let's be very clear. this is intended for political branches of the government and they have intruded. charles: next one, ambassador, ninth circuit court of appeals upholds that president trump travel restrictions. you have assad in interview with yahoo! saying there are terrorists among refugees who are freeing his country. take a listen to this.

>> so how many terrorists do you believe are among the 4.8 million syrian refugees? >> no one has any number. nobody knows. >> do you believe it's a significant number. >> because nobody you always the terrorists to give a percentage. no one. >> do you believe it's a significant number. >> it is not about significant. you don't need significant number to commit atrocities. charles: all right, ambassador, that is assad. we should consider who the source is but is there some validity to what he is saying. >> even a stopped alarm clock is right twice a day. that is assad's one opportunity for today. the fact in the middle east governments that oppose assad as well fully understand that terrorists have tried to embed themselves in these refugee flows. and there have been significant estimates by the government of lebanon and jordan and others

warning united states against exactly this. demonstration why the nineth circuit has it wrong. this is not a legal question. this is assessment about threats to the united states and really your tolerance for the risk of terrorism. charles: yeah. >> and that is not something that judges have the legal competence to decide. les: well three them thought d lt night. ambassador bolton, thank you very much. >> appreciate it, charles. charles: another day of action at the white house. president trump about to meet with japan's shinzo abe. japan we're told promising hundreds of thousands for americans. he tells his investors we'll all be alive by end of next year. more "varney" next. ♪

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♪ charles: that is stuart varney, mar-a-lago. we know he doesn't fish. he is posing there. don't worry, he will be back on monday. he takes those one-day vacations. liz: getting ready for the state visit with the queen. charles: trying to get a tan together. meantime, ash, shinzo abe could be bringing 700,000 jobs to america. ashley: well, he could. this is to do with sharp television or sharp electronics company. they make televisions among other things, building a huge facility here in the united states. the are parent company, foxconn, the tie waa niece company, all of this put together, i stress could. those type of words. certainly the japanese prime minister comes here to meet mr. trump.

he wants to obviously grease the wheels a little bit. the united states is the number one market for japanese-made products. can he deliver on these jobs? charles: i think he can. also what he is talking about is essentiall saying i will invest in infrastructure like high speed trains, but i would like them to be japanese. he will finance all of it. we have investments into the wall and other parts of infrastructure. ashley: trains in the northeast and texas, california. liz: goldman sachs guys own that, right? charles: yes. of course the market now, we're still hanging in there, around 55, 54. big-time move. we're at all-time high. market is looking for some direction here, the next spark. we may get it before the day is over. never know what the president is going to say. we have protests over the deportation of an illegal immigrant but wasn't president obama one of the biggest

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charles: taking a big board, trying to reload here. we came out of the gate with gus stow. hit a little bit of a bump with the consumer confidence number but regaining some energy here. we just got this. ratings agency fitch missed whole housing bubble thing and commenting on the president trump and world economy. emac. liz: risk to international economy. they were about government borrowing and focusing on government debt. saying essentially that donald trump's policies are aggressive in tone. he will introduced unanticipated changes to policies that could harm global growth, disrupt

foreign trade, reduce capital trade flows and provoke confrontation. so this is big warning from fitch about donald trump. charles: meantime the u.s. stock market is up over $2 trillion in value. ashley: yes. charles: the world markets are up big. interesting that japan's abe is here. since november 8th, their market is up 19%. it was struggling. it was down huge. the markets are not acting like there is great trade war or any other kind of war. sometimes sabre-rattling moves the needle in a good way. liz: good point. we've been talking about the dollar. traders are having a hard time how do you trade the dollar. they're talking about big emerging debt crisis. that is the black juan. charles: that is always out there. big announcement of tax cuts will come being in a few weeks. take a listen to this. >> overall lowering american tax burden is big league.

we're way ahead of schedule i believe. we will be announcing something over the next two or three weeks that will be phenomenal. charles: now listen to congressman kevin brady. he is the man in charge of writing the tax code. he says tax cuts are indeed coming this year. take a listen. >> i'm pretty positive where this is going. for businesses that want to know that this is going to happen this year, this is very important. charles: which have a author of taxifornia. james, this is a big deal. everybody wants it. everybody is excited about. people on main street keeping more of what they earn. people in corporate america not being punished. instead of putting it into buybacks can actually build new plants and factories. >> absolutely. it should come as no surprise president trump since january 20th has been

delivering on his campaign promises and certainly he will deliver on these tax cuts. we can look back to the reagan era, i had the opportunity to serve in that administration in the 1980s. you can see that economic recovery act of 1981 really grew the economy. in the first 2 1/2 years after reagan's tax cuts, there was something 15% in increase in gdp, seven 1/2 million new jobs. disposable income went up something like 6%. this is something we need in the united states because of the terrible job obama has done. charles: yay. >> we have hardly any growth. dold tmp promises to simplify the tax code, reduce taxes across the board for everyone. what that will end up doing funding 3 to 4% growth which i will expand the economy. it is going to transform the economy and keep pace with the stock market going up. charles: we've seen the supply side miracle. we know it does work. james, i do have to ask you

this, what is going on with your state? you have protesters. they blocked this highway yesterday of course after i.c.e. deported an illegal alien felon. your state hires eric holder to battle the trump administration. >> $25,000 a month, that's right. charles: now they want to become a sanctuary state. what is going on? >> well you know, we just had a i.c.e. raid this week where over 100 criminal illegal aliens were rounded up, but this has become a political issue now. it is becoming an advocacy issue where the liberal politicians are saying oh, this is donald trump enforcing some sort of a terrible immigration policy where he wants to deport people. there is nothing of the kind. what we're, the problem that we have with illegal immigrant in california is gangs. it is child prostitution. it is human trafficking, and there is, i.c.e. is doing its job.

last july they rounded up 112 criminal illegal aliens and deported them without the help of the federal, the state government. so with the sanctuary state, what the state wants in california which is taker state, they want the federal government to give grants for law enforcement but don't want to have to enforce any of federal laws that deal with immigration. this is california's war on donald trump and it is all political. it is the spectacle of it, is because hillary clinton defied the odds only in california. hillary clinton got -- charles: to add what you were saying last year. i.c.e. also arrested 2,000 people for human trafficking. thank you very much. really appreciate it. look who is here. cheryl casone, we want to stay on immigration. >> yeah. charles: president obama was the biggest deporting president in history, wasn't he? >> he was called the deporter in chief. barack obama deported more illegal immigrants during his

presidency, up to 2015. we don't have the '16 numbers. government data shows you he depoed more migrants than all the presidents of the in this count in the 20th century combined. believe it or not "the new york times" has to numbers. if anyone wants to dispute me, "new york times" has these numbers. charles: republicans used to bring this up, what progressive said there are two types of deportations. there are returns and removals. >> right. charles: when it comes to removals, someone been here for 20 years, he went down. he was turning them away. was returning them at bordered fiscal year 2008. 369. fiscal year 2015, 240,000. that was their replay to progressives. >> sharp deportation decline down 43%, from 2012 to 2015. there was decline in that number. that is correct. but at same time republicans are

saying, not just the fact he was going after deportations, most of the people he sent out of this country were petty criminals. the reason i'm bringing this up, donald trump is getting attacked in the protests but barack obama was targeting in some cases mothers and fathers and you know caregivers. i'm sorry. charles: right. >> so i think donald trump is taking a lot of unfair blame on this issue right now, when it comes to the issue of illegal immigration. i.c.e. guys are thrilled about this they -- charles: david, if you're watching a mainstream media and there is someone, say this woman has been here for 20 years. never committed a crime -- >> she did. charles: she -- >> she did. okay. charles: this is hypothetical, any person, not guadalupe, any person i'm saying is that the hombre you want as poster person, is that the person you keep you up at night, david?

>> either you have laws and enforcement or you do not. the scales are balance what she committed a crime, maybe civil and others of the a state representative in california openly admit half of his family are some number of family committing crimes, committing felony with identity theft. they're commit in some cases, dumb republicans in california, stand up, watch a legislator on this channel not be able to talk about the law. the system is broken. you enforce the law. i'm sorry no time for sympathy. if you committed crimes, you need to go including minor crimes. ashley: she was here illegally. charles: being here illegally is crime. >> faking documents. liz: will you deport millions of people? that will be a shock to the system. i guess that is what i'm saying, cheryl, right now i think, listen, no one, drug cartels, gangs. >> criminals. charles: real hard-core criminals.

do you sway, do you help progressives when the ones that we're not seeing them, it is early on, we want to see those guys do the perp walk. >> liberal media will pick up on guadalupes in this world. she is back with her kids last night. they met at the border. they met at the border last night. she saw her kids last night. the liberal media will pick up on the sad stories. there is going to be, this is going to happen, okay? liz: better move with compassion. better move with compassion. >> but if you go to a state like arizona which i spend a lot of my lifetime in, when i grew up, drunk driving, gun violence, you name it, child trafficking, rape all of that, the good people in arizona were frustrated because, there were good mexican-americans and there are bad. you have to fight this. charles: ironically you have a series of cities want to become sanctuary cities right now.

ashley: they're encouraging it. charles: they want to become sanctuary city. what do you think of that? >> you're either lawfully present in the united states or you're not. that is fact. with the criminal illegals, their countries don't take them backs. ashley: right. charles: they don't want them. >> the taxpayer is paying to keep criminals shouldn't be in this country in jail. ashley: how many are deported come straight back? that is a huge problem. charles: we are rolling out red carpet. it is busy day at the white house. we'll be right back. aretha franklin queen of soul announcing retirement after 56 years in the "spotlight." saw her three years ago. she sin deed an american icon. more "varney" after this. ♪ why pause a spontaneous moment?

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ashley: now this, ninth circuit court of appeals ruling for president trump, upholding his executive order on travel restrictions. judge jeanine pirro had this to say about it. roll tape. >> this is about people coming from a country who don't have a vetting system.

one of those countries you played in your earlier clip, they are yelling death to america. they are living to kill us. if you don't know that you're stupid. what we've got is a group of people where even isis said, we'll send killers in these people, in these groups of people. so to claim that due process is even relevant here is absurd. it is not relevant. they do not have due process right. they are not even on american, on our country's ground. 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 educing 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,

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charles: this news out of france. a terror plot foiled. liz, what do you be. >> imminent attack was plotted for paris t was expected to take place in paris. four people arrested including a 16-year-old girl. they are connected to radical islam. the police found it. atp explosives and other bomb-making materials in one of terrorists homes. france is about to hold the first round of a presidential election in just over 10 weeks time. this will put voters on high alert. more than 230 people have died in a series of terror attacks since beginning of 2016. charles: le pen is looking better and better every single day. doesn't hurt her opponent destroyed himself as socialists do by stealing. anyway, you're looking live at the white house, remember the

ninth circuit court of appeals rud against president trump's executive order on travel restrictions. upholds the travel ord suspension. tim paxton, joins us attorney general of texas. ken, what are the ramifications of this, real life on the ground ramifications because of this decision. >> we're thankful for the president doing this. we're concerned about this issue in texas and lack of vetting and refugees from terrorist countries coming into our state and i think the court got it wrong. i think the president has clear statutory authority to do. i think in the end we'll see that is accurate. i'm hopeful we'll get it reinstated and we'll protect our citizens. charles: next one for you, ken, the department of homeland security projecting now that the border wall is going to cost $21 billion, take over three years to finish. does that sound right to you? are there other obstacles? people complaining about land

rights and things that could slow the project? >> there is a lot of ways to do this. may not be all wall. it can be technology, more border agents. reality i've seen studies showing cost of illegal immigration cost the state of texas around 12 billion a year. one-time cost, whatever it is, 15, 20 billion. we need to do it efficiently but one-time cost will reduce costs for border states in the united states forever. charles: i want to ask you about controversy in your state over forfeitures, civil forfeitures. the police departments say it's a great tool. also helps to fund several police departments, but there are some conservatives say it is too much. it is government overreach and hurts regular folks. what are your thoughts. >> we'll definitely have debate on this. the legislature is going to debate several different bills. i think there will changes to it to rein it in because there are definitely due process considerations to take into account.

there is issues with law enforcement to take into account. we'll see what happens. i'm pretty sure you see legislation coming out of the state in the few month rein in some degree asset forfeiture. charles: we had a pretty heated conversation if you will about the arrest after this woman guadalupe, becoming something of a poster-child for the wrong way to implement our immigration laws. obviously anyone who is here illegally, already committed a crime. are you concerned about the public relations aspect of this if, she is the doing perp walk, rather than some gang member? >> i always have concerns about public relations issues but the reality we're not going to do this perfectly but we need to continue to improve our processes and make sure enforcing immigration laws the way they were meant to be enforced by congress. there will be mistakes made as we go along. we need to make sure as we make mistakes we correct them. charles: real quick on the sanctuary cities, starving them

from the executive level, do you, the governor there, taking a hard stand. will you continue to do that as well? >> yeah. i think you will see the legislature pass what the governor requested as emergency -- as a matter of fact the state senate this week passed sanctuary cities bill. it is over to the house. feel certain we'll get the legislation passed. you will see any city, any municipality that decides they want to be sanctuary city, they will lose state funding. charles: no more rogue justice as are sheriffses. attorney general paxton, thank you very much. appreciate it. >> you too. charles: david webb, last word on some issues. it is complicated. i know it is talk about cut and dry, when you get down to the granular life level, talk doing cheryl, if you go to beauty salon new york ci, women do nails, maybe be woman doing your nail20 yearsame here illegally, what do you do with that? >> you can work on a path to lawful presence, remember that

term. charles: instead of citizenship. >> lawful presence, are you lawfully present in the night. there is a way to work that through. the problem we keep saying it is not a crime to come here illegally because it is a civil crime to cross or overstay a visa. the fact the minute you buy an i.d., the minute you purchase somebody's social security card, the minute you go through those forms of identity fraud, you have gone to the level of felony most likely. so this, this is not a victimless crime situation. and at some point we have to draw the line, look, i'm all for compassion. i believe it is part of the picture but we have to be realistic. we can not become a nation without laws. charles: real quick, the decision bit ninth circuit last night, a lot of legal scholars believe ultimately the president will be vindicated, by the same token we have new precedents established by may come into play in the future. >> look, they're going to lose in the long run, whether he writes a new order, goes back to

the circuit court. you i don't believe the tactic should be to go to the supreme court. what they have done, inserted themselves into policy. that is not the role of the judiciary. charles: thank you very much. david webb, appreciate it. well it is another action-packed day folks at the white house. we know president trump doesn't sleep, but he takes a lot of action. hundreds of thousands by the way, for new jobs will be announced today because we've got premier of japan coming here. he wants to invest in our infrastructure. history in the making. it is right in front of you. you have got a front row seat. so stay right there. ♪ ♪

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on rip her a new one, not make any news for the sake of trying to get cozy with our peers, say awful things with her and go on about it. you chose, let's do a substantive interview, get into issues that matter and you moved the markets. and that, my friend is what it is all about. charles: but all everyone is talking about is kellyanne telling people to buy ivanka's clothes, liz. liz: no kidding. she shouldn't have done that. that was a mistake. kellyanne made a big mistakesay. now shoe is under review. the whole "gotcha" questions stiff. by the way personal attacks would work ever really worked, donald trump shouldn't do it. the other side shouldn't do it. why hillary lost. that is what dan henninger said on show. electorate wants jobs and growth. ashley: niece is right. that moved markets.

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♪ charles: marred did i grawe every day -- mardi gras every day, isn't it? you remember fitch? they say president trump is a risk to the global economy. doesn't look like it right there. caterpillar one of the stocks leading the dow. this is a key donald trump proxy, doing very well. then there is activation which is leading the s&p 500. buying back stocks and people hiking dividends and people playing videogames. president donald trump announcing a big tax announcement. neil cavuto spoke to congressman brady. he is the lawmaker responsible for writing tax code. roll the tape.

>> i'm know that the for businesses want to know this will happen this year. it is very important. >> fair to say corporate and individual rates are done concurrently? >> i sure hope so. that is the best way to go. >> the president of that mind-set? >> he is looking at it all. charles: joining us congressman vern buchanan a member of the ways and means committee. congressman, this is the frustrating part for people on outside looking in, you have competing ideas going on. yesterday david perdue circulating a letter, kevin brady can's notion of ad justment border tax is ridiculous. great to have president trump chimed in on this but what about the gop itself? what is the gameplan? >> well i can just tell you we've been working on this for six 1/2 years but we're very focused in the last three or four months. some of this gets out more to the communities and individuals you will get feedback.

i'm very pro-growth. this will be a very pro-growth tax policy i'm confident will get done ideally by august. that is the gameplan. i had the opportunity to work closely with speaker ryan as well the last six years. i have a lot of confidence that we'll get this done. charles: are you confident that it will be retroactive? >> i do. i think it is going to be retroactive first of the year. that is my opinion. i chaired pass-through entities. my background, i've been in business for 30 years but i'm very confident, more than i have ever been, and especially with the new administration. we're going to get this done. >> what are the loudest voices? you have competing interests, right? you have the folks who really believe, hey, we can not pile anymore debt on to this country. you have those saying, subside economics will give velocity of money into the economy. we'll take care of debt later, first let's awaken the sleeping giant? >> i think if we can grow the economy from 1 1/2 to 3 1/2%,

that is the mind set. the interests and enthusiasm i'm hearing in the business community they're very excited about the potential cut, tax cuts. not just for big corporations but for pass-throughs. then t idea of fulexpensin instead of max you can write off is 119 expensing, it is 500,000. the idea you can write off asset, piece of equipment, five million, the first year is big, creates a lot of excitement for a lot of people in business. it really does. charles: we should let audience know, while the consumer is 2/3 of the economy, business investment which is missing for the last eight years. so you make a great point there. you talked earlier though about being prepared for this, getting ready for it for six years. feels like it, mr. demille, you're ready for your close up, we're ready to see it. whether it is tax cuts, whether obamacare. a lot of folks are saying what is going on? feels like you guys are a little flat-footed right now. >> when i say the last six

years, i've been on the committee six years. we do a lot of things in ways and means, has a broad jurisdiction but tax reform is at the tent r center of it, we worked with our last chairman, dave camp. i think the stars lined up, i think we'll get this done. i'm very confident about that we have meetings two or three a week, we focus on tax reform. so we're in a very good position. with a new administration, new administration, we'll make this thing happen. as you know we haven't had tax reform in 30 years. charles: right. >> but it is going to happen this year. charles: representative buchanan. you're right the stars are align and ad we appreciate your time this morning. >> thank you, charles, for the opportunity, see you soon. president trump meeting with japan's prime minister shinzo abe at the white house this afternoon. then they go to mar-a-lago over the weekend. martha maccallum home. of the first 100 days here.

this president never stops he is the energizer bunny president. >> interesting taking him to mar-a-lago. a lot of people and some presidents do business and wash their hands and head off for the own private time. this man clearly likes to integrate his personal life and social life and professional life. it is all some form of work i think for president trump. charles: by the same token it will not be all hugs and kisses. we have a $62 billion deficit with japan, bigger than ours in mexico. you can sell products easier in mexico than japan. they will have a maybe a tough conversation. maybe that is why abe came bearing gifts. >> they have the tpp issue between them. obviously president trump wants to minimize deficits with countries like japan and mexico. that will be on the plate no doubt. charles: it was great a second visit. mattis went to north -- south korea and japan. we have a belligerent actor in china.

japan kind of wants to know we have their book. >> i do. i think it is interesting the president had a long chat with the president of china as well. charles: right. >> said he was onboard with the one china policy which is complete 180 where he was when he took the phone call from leader of taiwan. president trump told us when he was just donald trump on the campaign trail, that you know he wanted to negotiate. that he was a great negotiator. he wanted to redo deals. this is where he feels most comfortable really. we see him in areas where he doesn't feel so comfortable this is area where he feels eminently comfortable. charles: you give a little, take a little, that is how you make deals. talk to you about kellyanne conway, advisor to president trump, under attacks for promoting ivanka trump's clothing line. let's listen. >> we're reviewing letter.

i spent awful lot of time for president of the united states this afternoon and that he supports me 100%. we spoke about your asia matters and i spoke to me and supports me 100%. all i say to america's women, at some point in your life who has a boss the way the president of the united states treated me day, mainstream media have been taking hits at her over and over again. in this particular case, when you asked her about sean spicer saying she had been councilled, that was a tough one for her. >> we all saw the moment in wife house briefing room yesterday. he said she had been counseled on that matter. makes it seem like she was seated down and scolded. she had a very different take. i was surprised she did not want to comment on it last night. it says a couple things. it says they're taking matter seriously. this letter came out from congressman cummings and congressman chaffetz. they believe it is very serious matter. she could have said when i spoke

with her last night, i was half joking. it was inappropriate i would not do it again given the opportunity. she chose not to say that for whatever reason. we'll find out. charles: she didn't say anything. >> she said i have no comment on that initially. charles: you kept, nudged her a little bit. then it felt like the part about being counseled from what i'm hearing spicer was a, shouldn't have said that. >> reports are that the president wasn't happy about the word that he used because he made it sound if she had been scolded. charles: why she came back she let you know feels she is working for president trump, amazing empathetic understanding employer possible. feels like that is essentially what she was trying to say. sean was wrong. >> i wanted to establish a couple things. that she acknowledged she received that letter. that the white house had received the letter from chaffetz and cummings. she had spoken to the president bit, and what was his reaction? it is not surprising given what we know about president trump

that she was glad he supported ivanka trump. however they do need to thin about the language they use with gard to these business relationships. they all need to be on the same page. perhaps the answer needs to be those entities are separate. she stepped away from the managerial role in that company. so we don't have any comment -- charles: i don't think for the president it is about economics or anything. it was just personal battle, the personal animus towards members of his family. they should be off limit. >> but, charles, if the separation has happened, they need to make that clear. they need to say, sure we wish that hadn't happened. it affects people who work in the business. she is not in that role anymore. i think they need to sort of all be on the same page about that. we'll see if that is what they decide. charles: don't miss your show "the first 100 days" with martha martha maccallum. thank you, martha.

charles: today is the first anniversary of the iranian anniversary. what do you do to celebrate? you get american flags and chant death to america. up next, president trump is the action president. i have a question for former fbi assistant director james kallstrom. has the mood of the nation shifted? next. >> stuart, our culture is going down the tubes. the things that are basis of united states of america we all love is going down the tubes. the education system, we were number one in math for what, decades? now we're what, 27, 2th. it is crazy. the kids don't know a thing how the cotry was formed. i interview them. i know they don't know. they don't know about the constitution, declaration of independence. how can you maintain a country when you have a media, majority of the media, and you have an education system that doesn't teach the kids anything? just like the people who own them, every business is different.

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charles: well, check this out, it's death to america today in iran. that's right, it's the anniversary of iran's islamic revolution. joining us now, jim call strom, former fbi director. this is, of course, the same iran that got this great deal from president obama, and right now temporarily even phaps a gift from the ninth circuit court. what do you make of this? i mean, we bent over backwards, the last administration, to a nation that was belligerent throughout the negotiating process, that lied throughout the process, that humiliated us before and since then. what -- >> iran is the biggest supporter and engager in terrorism in the world and has been since 1979. they're throughout south america. they blew up the israeli and the jewish facilities down there. they blew up a couple of towers,

they killed 299 marines in lebanon. they've killed well over a thousand military personnel in afghanistan and iraq through their ieds that they manufacture and bring on site. they are the worst of the worst of the worst. and the obama administration, to do what they did, i think the historians down the road, hopefully -- if our country stays true to its cause -- will look at this, and some will say possibly even a treacherous act, to support iran and give them those types of funds so they can geometrickingly send more money to kill americans and jews and christians throughout the world. it's an absolute, total, unbelievable outrage. i mean, the clinton administration let our guidance technology go to china. when china was back in the stone age -- charles: right. >> -- they went from the stone age to the 21st century

overnight because of the outrageous act to let motorola and the lorrell corporation pass that technology on to china. and they now have warheads with ten warheads on each missile. it's just an unbelievable outreach. charles: have we crossed the rubicon with respect to being able to roll any of these bad actors back? >> charles, i hope not. charles: what can we do to iran? we announced 25 sanctions, but realistically, what can we do that will stop this nation that has been emboldened and enriched by the previous administration? >> well, i think the president would say there's nothing off the table. and unfortunately, there a some things where we're a little bit short. we have fewer ships now than 50 years ago. our military, you know, half the planes in the marine corps can't fly because of spare parts. same with the air force. the army's down to, like, five or six brigades that can actually show up somewhere to fight. and this has all happened, you

know, not -- it started with the bush administration, but into the obama administration. and the congress sits by and, you know, twiddle dee and twiddle dumb down there that just absolutely have no future vision for what's going on in this country. all they really care about, 90% of them, is, you know, their own bank account and their own next two years for election. it's just pathetic, what's happened -- charles: i mean, they're perpetually running for re-election, and every now and then bring a bridge to nowhere with back home and say i accomplished something. i do want to ask you on in this line because before the election, you were very worried about the future of the country. we do have president trump in. are you more optimistic despite the nonstop complaints and anger from the left? do you feel that we might be on the right path at least to becoming a united states of america again? >> i'm very, very optimistic, and i'll tell you why, charles. donald trump's not going to roll

over hike a cheap camera -- like a cheap camera. heot going to give in to all this bs. you know, he's going to see it through, and the american people are going to get more aroused, i think, over time when they see this cabal that's going on. and and believe me, it is a cabal. some would say a conspiracy. i mean, to pick a particular judge in a particular state, you know, that's just so far out to lunch that it doesn't even take into consideration the constitutional issues and the legislation that's passed that gives the president of the united states total, total power to do what he wants when it comes to immigration. of course, that circuit had no problem saying that arizona had no standing, of course, but they just jumped at the fact of saying a couple of other states -- charles: president trump has known, do you think the key, though, is sort of tough love that we haven't necessarily had in this country? >> yeah. chars: to sortf counter the p.c. revolution, if you will? and if that's the case, we do have to show returns. you know, the economy's got to come on.

but if the same tide lifts all ships, to your point, i think the avage person may come around. >> no, i think they will come around. it's going to take time, he's going to have to fight them every day. [laughter] he's going to have to fight them, as was said in korea, you know, we're surrounded, you know? the bastards have us surrounded. too bad for them. you know, they'll attack in every direction. and i think we're going to see this through. more and more people are going to get totally frustrated as to what the democrats are doing. i shouldn't even call them democrats. the far, far left party is doing at every, every instance. but i think he's going to have good tax policy that comes on board, i think jobs are going to come back, money's going to come back to the united states. we need to do something about education, particularly in the inner cities, you know? when the democrats lose 30% of the black vote, they'll never get elected again, and i pray for that day. charles: yeah. well, you know, we have betsy devos who was, you know, she's

got the nod, and she's for charter schools. i've been involved with charter schools, i kw it's a godsend for these neighborhoods where watered-down curriculums have been offered, and i think parents are starting to get hip to that as well. little johnny got an a, but look at the test. >> i would hope to. >> good point. >> the days of everybody getting a trophy has to end. charles: you don't know how to fill out a college application, there's a problem there. >> that's a great point. and what leads to income inequality, right? it's what's happening in the inner cities. >> absolutely. and the day will come when more and more people are going to say, yeah, that's right. what have they done for us for the last five decades -- >> right. >> -- zero, nothing, nada. charles: yeah. i think, though, to your -- it's gonna take some time because not only are they embedded feelingsing, but you've got the mainstream media that is running a campaign against this administration.

and he won't ever -- president trump won't ever get credit when there's obvious to, decisive victories for the american public, and certainly he will get blamed whenever -- >> yeah. and you've got a vast majority of the colleges and the universities in the united states that just have no tolerance for the first amendment. you know, they're just teaching blather to our youngsters. and the parents are going to have to, you know, get involved with this brainwashing that's going on with their kidss they send them off to $50,000 a year, you know, crazy operations that are just going to give them all this blather and propaganda. charles: it's tough to overcome. >> it is. charles: thank you very much. we appreciate it. >> we'll make it through. god bless. charles: at the top of the hour, congressman vern buchanan on the show, he said tax reform will be retroactive. roll tape. >> i think it's going to be retroactive the first of the year, that's my opinion. i chaired pass-through entities, i've been -- my background, identify been in business for 30 years, but i'm very confident,

more than i've ever byrne, and especially with the new administration. we're going to get this done. charles: that's music to our ears, right, ashley? >> absolutely. not only do we need them, we need them relate9 proactive, put money in the pockets of consumers to crank this economy up. get businesses back on on track where they're going to put money into expanding, hiring, research and development, all of those things that will get this economy cooking and which a lot of the market is -- charles: right. >> -- i can feel the expectations building, put it that way. charles: yeah. traditionally, the market is supposed to be a harbinger over the next six month toss a year. this market is going to tell us we are going to unlock our potential which has been dormant. >> yeah, and i keep saying it, we fell through the looking glass. we were on the other side of the mirror for eight years. it wasn't normal. charles: i think what kept us alive was just sort of muscle memory, the dna of americans. i do want to also talk about

this, a private new york city high school principal compared president trump's presidency to 9/11, e. mac. >> yes, and his presidency's more troubling than vietnam, the assassination of dr. martin luther king and watergate. this is teacher steve nelson, he's at the calhoun school where it costs 46k a year estimated for your kids to go there. you know, one interesting part of this story is when parents -- you know, he also said we are inclusive, we are about debate, we are about dissent and dialogue. parents are saying, really? if you try that, we're treated like lepers. >> yeah. unless it's donald trump speaking, then all bets are off. charles: yeah, yeah. >> that's an outrageous comment. charles: took a lot of heat when he talked about new york, the new york thing -- >> yes. charles: remember the new york comment? he wasn't talking about firefighters, he was talking about people like this, the real manhattan elites who distance themselves from these folks in new york city who have to take the train to work every day.

>> by the way, this teacher also teaches journalism. [laughter] >> oh, boy. charles: all right, guys. well, the big question now, is this now the beginning of the end for obamacare? tom price has been confirmed as health and human services secretary, but when does he get to work, and what will they replace it with? and so far the democrats only plan is to block president trump. object and on to instruct. remember this one from senator schumer. >> was mean-spirited and un-american. and i, as your senator from new york, will claw, scrap and fight with every fiber of my being.

why pause a spontaneous moment? cialis for daily use treats ed and the urinary symptomsf bph.

tell your doctor about your medicines, and k if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, or adempas® for pulmonary hypertension, as this may cause an unsafe drop in blood pressure. do not drink alcohol in excess. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have a sudden decrease or loss of hearing or vision, or an allergic reaction, stop taking cialis and get medical help right away. ask your doctor about cialis. charles: all right, this is tom

price now being confirmed as health and human services secretary. vice president pence. >> to administer the oath of office to america's new secretary of health and human services, dr. tom price. [applause] we're grateful to be joined by colleagues and friends to mark this important occasion in the life of our administration and no less in the life of this nation. and the american people can be proud of having the finest health care in the world. but we all have known the challenges in recent years since the passage of the affordable care act. president trump has made it top priority of this new congress to repeal and replace the affordable care act with health care reform that'll lower the cost of health insurance without growing the size of government.

and finding someone to lead a health and human services who brings a background in medicine, a background in health care, a background in budgetary issues in the congress of the united states, who understands the unique challenges of state officials in the programs like medicaid was easily met when he made the decision to name dr. tom price as the new secretary of health and human services. and dr. price is uniquely qualified to accept into this leading role during this time of reform in the life of health care in america. for nearly 20 years, tom price worked in private practice as an orthopedic surgeon in the atlanta area mending broken bones, giving people the hope and health to lead lives to the fullest. you passed on your wisdom by training rising generations of physicians at a local college and hospital. an impressive career in health care.

but your patients weren't the only ones that benefited by your leadership and by your example. you would carry your leadership qualities into the georgia state senate where you served for eight years, becoming the majority leader of the georgia state senate and helping to steer a time of real reform and renewal in the state of georgia. then it was on to congress where i first met dr. price. he would serve in the congress now for more than 12 years, chairman of the budget committee. but without question, emerging as the most principled expert on health care policy in the house of representatives, if not the entire congress. and now president trump has transformed you with leading the d. of health and human services -- the department of health and human services on behalf of the american people. and as secretary, we're both confident thatou will bring that experience as a physician,

that experience at the state level and that singular experience at the national level to insure that president trump's vision for a health care system in this country that works for every american will become a reality in the years ahead. so with that, on behalf of president trump, it is my great privilege to administer to you the oath of office. please place your left hand on the bible, raise your right hand and repeat after me. i, thomas price, do solemnly swear -- >> i, thomas price, do solemnly swear -- >> that i will support and defend the constitution of the united states -- >> that i will support and defend the constitution of the united states -- >> against all enemies, foreign and domestic -- >> against all enemies, foreign and domestic -- >> that i will bear true faith and allegiance to the same -- >> that i will bear true faith and allegiance to the same -- >> that i take this obligation freely -- >> that i take this obligation freely -- >> without any mental

reservation or purpose of evasion -- >> or purpose of evasion -- >> and that i will well and faithfully discharge the duties -- >> and that i will well and faithfully discharge the duties -- >> of the office upon which i am about to enter -- >> of the office upon which i am about to enter -- >> so help me god. >> so help me god. >> congratulations. [applause] >> we're going to sign some official documents, but would you join me in welcoming betty price. [applause] [inaudible conversations] charles: there you have it. tom price now officially becomes

human services. mission number one, we all know, repeal and replace obamacare. no one has been on it more than dr. price except perhaps our next guest, betsy mccoy. all right, betsy -- >> thank you. this definitely will jump-start the effort in congress and in the executive branch to repeal and replace obamacare. don't forget, on the first day of the president in office, his very first executive action was to instruct the incoming secretary to lift the economic burden on americans. and there are some 1,400 places in that big obamacare law that say the secretary shall or the secretary may. so now there's a secretary who can actually tweak those regulation ares and provide relief. for example, for many people -- millions of people incurring a penalty for not being able to afford obamacare. and in some instances, change the rules for insurance companies enough to avert a

collapse of the market in 2018. charles: so we keep it on life support, but the big question is, this is a big, ugly piece of legislation that had no bipartisan support, was written by insurance companies and is it going to be as easy to replace it as advertised? >> well, it's not going to be replaced. all those very costly mandates that take people's freedom away, we're not replacing those. in other words, people will have the freedom to buy a much wider variety of insurance, much of it more affordable in many cases the mandates will be gone, states can make up their own -- the citizens of each state will have a role in deciding what kind of health insurance they want. but it's not replacing it, it's relieving meshes of the tremendous -- americans of the tremendous cost and burden of a washington-knows-best system. charles: we had peter morici on in the 9:00 hour, and he

expressed reservations about a plan, any -- a plan that involves a lot of subsidies replacing this plan that involves a lot of sub subsidiesd ultimately, i guess, people are going to ask how do you actually bend the cost curve? we were told they would curb costs, it never happened. is it even possible? >> of course it's possible. first of all, this law requires that people buy a plan that is crammed full of so many things they don't want. pediatric dental care even if you don't have children. one of the reasons the pro-choice groups really battled tom price is these plans currently are required to provide contraception with no co-pay. that means that everybody who signs up for an insurance plan has to pay for contraception even if you're 60 years old, even if you're a man because the insurance companies aren't allowed to charge a co-pay. president obama said that made contraception free. only if you believe in the tooth fairy. you're just being forced to pay

for it the minute you sign up for insurance. charles: it feels like, betsy, that the insurance industry wrote a lot of this, and they built in support for themselves where when they lost money initially, taxpayers bailed them out. >> that's right. charles: as soon as those parameters expired -- >> that's right. that's why the premiums have shot up so much. premiums are now double what they were at the end of 2013. double. and one of the reasons they shot up so much this year is the back door bailouts funded by you and me to the insurance companies are over. charles: how do we get the insurance companies back in? >> well, the fact is insurance companies would like to sell on a free market where they can price according to risk, where they can sell a variety of plans. but once the government gave them a seat at the table and said you must do it this way and this way and this way even though the rules would drive you out of business, of course, they demanded subsidies. i loathe them, frankly, but the fact is that they lost a lot of money, $2-$3 billion a year

trying to sell these dog plans. charles: betsy, thank you very much. meanwhile, president trump facing continuous opposition from the left. the democrats delaying cabinet nominations and courts overturning executive orders. joining us now, political analyst and fox news contributor leslie hard shall. leslie, we -- marshall. leslie, we know blocking, tackling, obstruct, it's delayed the trump administration, but i think it's done more harm to the reputation of democrats. >> oh, charles, i love you, but may i pause for laughing? [laughter] absolutely not. i'm sorry, donald trump is doing more harm to the republican party and to the american people. and as a matter of fact, when you look at the thousands that are showing up at town halls as opposed to 30 or 40 people a year or two ago, those are constituents, many of which are republicans that are yelling because they don't feel that they're getting what they were promised by their candidate, and

not just the president, but by their representatives in both the house and the senate. charles: well, leslie, i love you, but i'm crying. i'm watching the opposition party act like babies, and i'm watching the grandstanding like elizabeth warren taking a coretta scott king piece from 30 years ago and i just see them adding elements to the national conversation that aren't designed to heal, but further inflict wounds and animosity. >> you know, charles, i, i'm old enough to remember when a republican, white male of congress yelled to the commander in chief, the first african-american, "you're a liar." i am old enough to remember when the senate majority leader, mitch mcconnell, said that he was going to make it his job to make barack obama a one-term president and that he and his

party were going to obstruct and block every piece of legislation -- charles: this stroll down memory lane is nice, and people were upset when that happened. people say you never disrespect the president in that particular situation. no one applauded those actions. no one applauded those actions. >> but there are people that have applauded elizabeth warren being silenced, charles. there are people that have applauded that, and i've got to tell you, as a woman -- >> [inaudible] i don't care what political party you're from, you do, you do not in a sense tell a woman shut up and take your seat, which i think is how many people perceived that. charles: to the point where you're smearing their reputation. your agenda shouldn't protect you from that. >> why is it that reading a letter or even reading the testimony of two individuals years ago that weighed heavily on the decision at the time to not go forward during the reagan administration with jeff sessions at a higher level as a federal judge back then? why,,, charles, are facts going

to be dismissed because somebody's spouse in the room might be offended left or right? i personally think the fight facts should be presented. charles: it was 30 years ago, and if we're evaluating the measure of a man, he was lauded by coretta scott king, he was awarded by the naacp. i just think everything shouldn't be boiled down to being a racial, anti-woman sort of vendetta because it's not working. listen, i want your opinion on this, i want to show you some video. it's education secretary betsy devos being blocked by protesters from entering jefferson middle school. you know, more obstruction, leslie. >> literally. charles: what do you make of that? >> well, charles, the last time i checked we are a great nation, the greatest nation in the world, and one of the things that makes us great is that first amendment, that we have the ability to protest. and i'm sorry, but if you're in political office, left or right,

if you're going to say things or propose things like eliminating an entire or department of education or public school systems as we know it, people are going to be angry. remember, there are thousands of people that love the public education their children receive and don't want vouchers and don't want charter schools and like it the way it is right now. that's a majority of parents in the united states. charles: i'm not sure if you were able to see the video, because we saw physical intimidation. and be there's a distinction -- >> that's wrong and unacceptable. that is wrong and unacceptable. one of the things that i pride myself as a liberal that i'm a pacifist, i do not support violence or a verbal or physical threat of violence of any kind and the first amendment does not cover that either. charles: all right, leslie. of it's always a pleasure talking to you, and hopefully when you come in, you can visit me. >> you too, charles. i will. charles: see you soon. >> thank you. charles charles a quick check of the markets, we're hanging this there. what you're looking at is history. the market is at record highs,

and we're moving to the upside. looks very, very good. listen, it's been a very fast start to this trump presidency. he has been moving at breakneck speed. even the democrats, they're trying their hardest to stop him, but they cannot keep up. president trump, he's not stopping. in fact, we're going to take a live look at the white house. today he meets with japan's prime minister, shinzo abe. he's a dealmaker in chief, and we're going to get some juicy ones from japan. more "varney" next. this is a mobile trading desk, so i can take my trading platform wherever i go.

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>> lori rothman with your fox business brief. well, stocks are trading at record highs here for a second session in the row, the dow up 65, 20,237. investers optimistic to hear about trump's phenomenal tax plan. let's look at what is driving the dow, here are the top gainers, caterpillar, nike, johnson & johnson, dupont alwith green arrows today. well, reports here from dhs, the mexico wall could cost upwards of $21.6 billion. we wanted to take a look at some building materials can and construction companies, and they're all considerably higher today. vulcan, martin mare yet that, up better than 2%. have a look at skechers and yum brands, a record high after introducing us to the pizza that's a fried chicken mash-up. back to "varney." ♪ ♪ what if we could stop the next

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and how they spread. with the cloud, what used to take 30 days now takes 12 hours, and every second counts. if we can detect new viruses before they spread, we may someday prevent outbreaks before they begin. we must be passionate. we must be bold. and never stop striving in our desire to make an impact. charles: i want to get back to in this sense of trump optimism, dealmaker in chief. meeting with abe this weekend, netanyahu next weekend. joining me right now, david horowitz, author of "the big agenda." this has been an action presidency, a nonstop movement of action and commander in chief. what do you think we're going to get this weekend and next week? >> well, let me just say about

trump as i describe in my book, "big agenda," this is a guy who doesn't back down, unique as a republican. republicans flinch, they retreat, they duck. not donald trump. whoo -- what we're witnessing now is one of the biggest witch hunts -- i mean, it's disgraceful what the democrats are doing, character assassination, and then they hide behind political correctness. if elizabeth warren is big and bold enough to be a senator, then she can obey the senate rules, and she can accept the punishments when she breaks them. trump is unique in that he's just blowing through all this democratic firepower. so i think americans should be thrilled to have a politician who comes into the white house, and the first thing that he does is he works from 5:30 in the morning til midnight and over weekends to deliver on the

promises he made. he's got, you know, tough deals here with japan, with abe coming up this weekend. we have a $69 billion trade deficit with japan, but japan has a weak economy. so abe is kind of hemmed in over that. charles: yeah. and also, david -- >> so it's going to be a -- charles: with abe, there's china and the military might they have, and the questions of either them paying more for these military bases that we have, even letting them get rid of that pacifist constitution that we sort of foisted on 'em after world war ii and protecting themselves. >> i agree. you know, and he's talked about japan becoming a nuclear power which horrifies all those people who thought it was fine for obama to give nuclear weapons or a path to nuclear weapons to our mortal enemy, iran, and the

chief sponsor of terrorism in the world. there's a lot of hypocrisy out there. charles: yeah. >> i mean, trump is a negotiator so, you know, we shouldn't try to get into the weeds in advance of his negotiations, because he shifts his position and starts out with a tough position. charles: yeah. you know what? we know he came out the gate just amazingly, you know, and he's got the energy, he's got the commitment. success, ultimately, you know, people rally around success. >> he is a leader. charles: let's keep the faith. yeah. david horowitz, thank you very much. always great seeing you. at 1 p.m. eastern president trump and prime minister abe are going to hold a joint press conference at the white house. next story, a tweet war going on between hillary clinton and kelly anne copway. all right, ashley -- [laughter] it has to do, of course, sparked by the ninth circuit court of appeals decision. >> right. that basically kept the suspension of the travel restrictions in place. hillary clinton immediately jumping on twitter doing this,

and all she said was: 3-0, meaning reference to legal battles now that donald trump -- charles: i thought it was reference to the 3-0 unanimous decision, or could have had multiple meanings. >> multiple meanings. the one aye seen is that -- i've seen is it's another legal battle lost, 3-0, the supreme court with the justices could be. any way you put it, it's kind of snarky -- charles: no doubt about it. [laughter] >> now look at we have kellyanne conway's response which i think is equally pretty clever. p.a., w.i.,m.i.. three states that turned to donald trump in the election, so that was the response. charles: that was a dagger, and then she twisted. >> yes. oh, by the way, you lost -- charles: i've got a feeling hillary's going to stay off twitter for a while. markets are hitting new all-time highs and, remember, we were sort of in a lull, but it all changed yesterday taking off after president trump's announcement about taxes.

but there could be another reason behind it, and i'm going to explain that with you. also supermodel miranda kerr has some harsh words for facebook and mark zuckerberg, but what's got her so angry? find out after this. ♪

charles: well, a lot of people saying this week's rally was because of president trump's announcement on taxes and well, obviously, that's played a major role, but there's more to it than that, ashley. what about the feds? >> well, we talked about this before. i think the fed, after being so hawkish, has turned dovish, at least that's what we're hearing from james bullard saying maybe only one rate hike this year and don't forget we were supposed to have, what, three or four? charles: right. >> the economy had recovered. from the market's point of view, why not? why wouldn't that be good when you have president trump talking about this phenomenal announcement soon about his tax plan and tax cuts. put those two items together, and you get all this building expectation.

charles: let's not forget the stall before 20,000, we got over that after the fomc, did not mention march. i think they've gotten the message, don't mess this up. you're one of the few entities that have the power to derail this if they start to hike things too quickly. >> one of the best things about the fed is we haven't been talking about the fed that much lately. don't forget, they were dominating the news for so long when we were living in this artificial world. get out of the way. charles: high rates when it's justified, but don't do it when it's not. she's the fiance of evan spiegel, miranda kerr. in an interview with the times, she said, look, i cannot stand facebook. [laughter] can't they not be innovative? do they have to steal all of my partner's ideas? as you can see here, i'm so appalled by that.

when you directly copy someone, that's not innovation, it's a disgrace. how do they sleep at night? as i said before, they sleep on piles of cash. but let me say this, she doesn't have a facebook page, by the way, which is interesting, but she does have ten million followers on instagram which is owned by mark zuckerberg and facebook. [laughter] charles: you know, by the way, if you look at the history of silicon valley, it's all about stealing someone's ideas. i hate to say it. happening right now, we're about to ceja pan's prime minister -- see japan's prime minister, shinzo abe. their news conference will be jointly held at 1 p.m. ashley, he comes bearing gifts, perhaps some billions of dollars in gifts. >> billions of dollars, maybe 700,000 jobs. sharp, parent company of foxconn, saying we could open up a huge facility. all of this, your guest mentioned earlier, there's a $69 billion trade surplus that japan

has over us, and also they don't spend a lot of their gdp on the protection that the u.s. provides. so donald trump being the ultimate negotiator is going to say, all right, let's equal the playing field a little bit. charles: right. because the ceo of toyota met with abe the day before he left for this trip. >> yes. charles: and, listen, what they're going to say is we are protectionism. we know japan has a history of isolationism, and it is hard to sell u.s. products there. >> yeah, how many u.s.-made cars do you see in tokyo? >> they're going to say, hey, we've opened a lot of plant in this country. >> that's true too. charles: you can almost argue it's been foreign automakers who have opened up plants in the right to work states that have created amazing opportunities. >> that's true. and abe has talked about investing in america with high-speed trains which this country so desperately needs. it's so far behind in the northeast, in texas, in california, that's money that the japanese will be spending as an investment in the united states. charles: their central bank, a

lot of people think our central bank buys stocks directly, we don't. theirs buys stock through etf. they are the largest shareholders in almost every big company in japan, and now there's an idea that their central may directly buy our stocks. say what you will, but that puts a bottom underneath the rally. >> it certainly does. currency manipulation, donald trump's been extremely critical of the japanese, as well as the chinese, for manipulating their currency down so that their exports become that much cheaper and very difficult for u.s. companies to compete with. that will be on the table, guaranteed. charles: nothing you can do about it, i hate to say it. we manipulate currency too with our fed. >> sure, sure. charles: all right. thank you very much. listen, i hope you guys watch me again tonight, "making money with charles payne," we're going to cover a whole lot of things. i'll walk you step by step why this rally is not only real, but why you shouldn't miss it this time because far too many folks

missed the last leg of this rally. i'll explain more. now, of course, it's the man himself, neil cavuto. take it away. connell: thank you, charles -- charles: that's not that'll! there it is, it's my man connell. connell: no, no, no, it's neil, don't worry about it. [laughter] ashley, how are you? >> i'm great! thank you, neil. connell: connell breaking news, we're covering it all at this hour. to the white house and the west wing entrance there, we're awaiting the arrival of the japanese prime minister. should be quite a two hours to cover all of this with shinzo abe said to be on hand with president trump, and they will have a meeting face to face and then emerge into the east room of the white house maybe about an hour from now or so and have a joint news conference. so the guys were talking this about the prime minister coming with some gifts and how about in the united states. that has been talked about. and i'm sure, something along those lies