>> i'm proud to be on the panel with a former sun devil, let's go asu. dagen: congress needs to focus on getting reelected and that day comes sooner. tax cuts. maria: here comes stuart. stuart: i'll take it. question, is there a selloff after a huge run-up, surely stocks are coming down? no, they're not. at least not at the opening bell. good morning, everyone. the headline is, no retreat. you might have expected a sea of red ink after the astonishing trump rally, but a half hour from now, the market will open up, believe it or not, up. not much, but up. look at yesterday, as you can see right there, the dow went straight up, 21,115 was the close, that means it's up 2,783 points since november the 8th, the election. another big number for you, 3.251 trillion, that's how much

wealth the trump rally has added. repeat, we're not expecting a retreat in the early going today on wall street. there's another big event on the street. the disappearing picture app which lost $10 million a week last year, sells shares to the public. snap is going to be valued around $24 billion. here is the question, is it a facebook or is it a twitter? the live action presidency rolls on. he goes the costly 12.9 billion dollar u.s.s. gerald ford and then meets with its builder. is he looking for a deal on the price. big d-- i'm sorry, big day for everyone. sit back and enjoy it. "varney & company" is about to begin. ♪ the cameras are showing you this again, the dow surged more than 300 points yesterday, closed above 21,000 for the

first time. that was the 15th record of this calendar year. here is where we're going to open this morning. this is called the futures. not dead flat, oh, no, up maybe 15, 20 points. how about that? that's at the opening bell, how it closes? no clue. apple shares hit an all-time high, reached $140 a share yesterday. we'll keep our eye on that stock today. it's pulling in the money. same story with facebook, it hit an all-time high, 137. by the way, it's reducing the price of its oculus rift virtual reality headset. we'll focus on it today. let's get to the big focus, which is snap. the parent of the disappearing message app, snap chat, it starts trading this morning. liz, it's going to make instant billionaires of at least two people. >> each, 3 billion if it comes in 24 billion. this despite the fact that snap

lost money every year since it debuted in 2011. and richer, two times as rich as facebook's valuation at the ipo and four times the valuation. stuart: that's what you're paying $24 billion for. a lady sticks out her tongue and it goes rainbow color. if you buy in, you have no voting control. ashley: absolute zero. we have a graphic, class a shares going on sale, the only shares by the way offered in the ipo, it gives you zero, that's not it-- that's the wrong one, but zero votes per share, and class b shares held by the current investors, that's one vote per share, there we go and class c. only held by two founders as e-mack told us, they get 10 votes per share. class a is what you're getting and getting zero as to the future and having a say in the company. stuart: you want the stock to go up and that's what you're looking for. >> yes.

we're on it all day long and that's a guarantee. the markets, going back to it, of course, they took off after president trump's speech. there is still no sign of a retreat this morning. despite the huge run-up yesterday. by the way, president trump tweeted about the market rally this morning says since november 8th, election day, the stock market has posted 3.2 trillion dollars in gains, consumer confidence is at a 15-year high. jobs! explanation point. look who is here now. newt gingrich. newt, you're blown away by the speech, admit it, you were. >> i was. stuart: okay. [laughter] we want some more. >> yeah. actually the best speech of his career so far. stuart: okay. now. >> i just think he -- go ahead. stuart: you know, this delay is a real problem, isn't it? i'm talking on top of you and you're talking on top of me. let me get straight to it.

this stock market rally is predicated on us getting a tax cut by august. steve mnuchin said so, that's what he said we're going to get. do we have it-- is it possible that we can get this packed legislative schedule, obamacare, tax cuts, infrastructure program, can we get all of that done this year? >> well, speaker ryan said the other day that he had a basic plan that he thought within 200 days we could accomplish all of these major goals and that he had some padding in there for slippage. i think there will be a tremendous effort to get it done. i think obamacare's the hardest, far and away the most complicated. i think infrastructure is relatively the easiest. but i think the tax reforms are really important. there's a tremendous head of steam for them. i think the business community is going to come together to really provide a lot of grass roots support so my guess is, august may be a little bit aggressive, but certainly by september and october you're

likely to see a really big signing ceremonies for legislation that really changes the course, and i've been saying for two months now, the trick is to turn the trum trump rally into a trump reality. and that's going to call for specific changes. you're seeing them at the epa we saved thousands and thousands of jobs by eliminating one of the or setting the stage to eliminate the whole waterway control grab that epa was undertaking which would have been horrendously expensive. you'll see lots of regulations changed and savings as trump negotiates and then i think you'll see a big wave of job creation as people begin to bet on america again. stuart: do you think he is out-reaganing ronald reagan? >> i think they're totally different people. that's like trying to compare andrew jackson and abraham lincoln. trump is a remarkable,

energetic entrepreneurial personality who gets up every morning and shoves the ball down the field, finds 100 ingenuous ways to keep moving. reagan was a much more strategic personality. he was a better speaker, but on the other hand the speech itself the other night was comparable to anything reagan did, a tremendous speech. they're very different personalities. they're effective in their own way. my hunch, if he can pull it off, a long way to go here, if he can pull it off, trump will be the most creative president since franklin delano roosevelt. stuart: wow, quite a statement. we'll leave it at that. newt, appreciate it this morning. >> thank you. stuart: i've got to move on to attorney general jeff sessions. according to "the washington post," he spoke twice to the russian ambassador during the campaign. he told congress he had not spoken to the russians. the left is calling for his regul

regular-- resignation. chaffetz said, ag should clarify and recuse himself. stuart: give me 20 seconds what's going on here. >> if he spoke to the russian ambassador about the campaign, that would be an unlawful conversation because that would be facilitating a foreign government influencing an american election. if he spoke to him about anything in his capacity as a member of the united states senate, a member of the foreign relations committee, that would be a perfectly lawful conversation. the problem is when he was asked by the senate judiciary committee which was then considering his nomination to be attorney general, did he speak to the russian ambassador, there were no qualifiers in there, he simply said no. so, did he mislead? did he lie? did he not think about these two conversations that he did have? one at a cocktail party where he ran into this character, the ambassador, another where he said he did have, subsequently

did have a conversation as a member of the senate foreign relations committee. this is the same ambassador to whom general flynn spoke when he main the phone calls from trump tower which led to general flynn's resignation. the fbi conducting an investigation whether or not there were russian attempts to influence the election, and they have to investigate their boss in this? should there be a special prosecutor or can they investigate the head of the justice department? >> i think it's a hill of beans of nothing. i'm shocked at the timing. the president makes the speech of his administration thus far, it's very well-received, the next day "the washington post" brought up this. >> you should not be shocked, the people who brought it up

want to take the bloom from the rose of the speech? >> will it? is this a serious problem for this administration? >> i think it is. you've seen at least one major republican darrell issa say it's time for an independent council. who decides? the attorney general himself and he doesn't have a deputy because the senate hasn't confirmed his deputy yet. the next ranking person in the justice department is a career official, like that person sally yates whom the president had to fire. stuart: hour viewers want to know something-- our viewers want to know if the sessions-russian problem is going to interfere with the tax cut, which the treasury secretary told us yesterday is going to be in place by august. >> i think it will interfere with the president's concentration on what he's-- on how he runs the executive branch of the government. will it delay the tax cut? i know it's so close to your heart, stuart. i don't think it will. stuart: it not close to your heart. >> somebody who believes taxation is theft, of course

the tax cut is close to my heart. [laughter] . you like when i say that? >> i do, actually. >> the producers tell me only to say it like once a month. stuart: you're all right, judge. see you later. live look at the floor of the new york stock exchange, please? snap will trade today at some point, not exactly sure when. it is the biggest technology ipo since alibaba and we, of course, are on it. look, there's no stopping the trump rally, certainly not this morning in about 19 minutes' time. see that, the futures pointing higher? we're up more than 300 yesterday. we're going up another 20, maybe at the opening bell. certainly no selloff. the live action presidency continues. president trump heading to newport news, virginia, he'll tour the new state of the art ship, u.s.s. gerald ford. and president trump proposing a 54 million increase in the military budget, but general jack keane says that's not enough.

he'll make his face in a moment. sports highlight of the morning, college basketball, northwestern, that's a full court pass, is that right? >> yeah. >> full court pass from out of bounds. liz: whoa. stuart: to hit the lay-up at the buzzer. wildcats win, fans rush the court. i personally think the syracuse highlight last week was better, but i put it in because i was told to. look at that again, oh, do it, do it. yeah! more varney after this.

>> overall, sales were down at the teen clothing retailer abercrombie & fitch, however, its brand hollister increased the first time in over a year. overall the stock is going up, not bad. shake shack looking down the road. liz: shook a little. shimmy. ashley: when you said it it's

like donald trump saying china, china. [laughter] >> shake shack says it will not grow like it used to. when you say it go something like that your stock is in trouble. and president trump talks about the u.s.s. gerald ford, part of the military spending. here is jack keane, welcome back. >> good to see you. stuart: that's an aircraft carrier. >> it is. stuart: 12.9 billion cost overruns. >> i think that's going to come to an end. stuart: do you think the president will ask the builder, give me a discount. can you do that? >> the aircraft carrier is really the symbol of u.s. military superiority, the largest thing that we have clearly and dominating thing, most countries have one or two and we have ten. stuart: ten on active service? >> yes. stuart: it's a carrier battle group and has ships around it. >> about 19 other ships around it to include submarines. stuart: that's a powerful force. now, president trump says he

wants to spend an extra $54 billion on the military this year, i think, and you say that's not enough? >> well, listen, what has happened to us, we've had multiple years of depleting the united states military, not putting in our accounts. so much so, that our readiness is seriously depleted 50 to 75% of our aircraft out there are not ready to fly. only one third of the army's combat units are ready to deploy and fight. those are staggering issues that we're facing, there's a technological gap that's closed on us from our add vversarieadv used to have a huge advantage. we no longer have the advantage. we need more in the investment accounts. 54 billion i think is a start, but we need more than that. stuart: over the next four years to get our military back, how much is it going to cost? give me a number. >> it's going to cost about 100 billion a year. even the president admitted

that possibly he's going to add another 30 billion to that 54 billion. and that will get us in the neighborhood of what we need on an annual basis, then we have to look for ways to fund this. stuart: but we would be looking at a military buildup which is reaganesque because he did exactly the same thing in '81, '82, '83, '84, and pumped money into the military. are you suggesting we should do more than that? >> that's what we need, four years of investment and we're still living off the reagan buildup. much of the military that's out there is the 1980's military. although it's considerably smaller. that's the reality of what we're facing. so that buildup is absolutely necessary. stuart: okay. general, i'm short of time, but we thank you very much for being with us this morning. by the way, 100 billion a year is one huge stimulus program for america's economy. >> sure is. stuart: general, thank you, sir. >> good talking to you, stuart. stuart: new reports that president obama is planning on getting back into politics. that didn't take long.

we'll tell you all about it. and hillary clinton is a fan of snapchat. wait until you hear why. more varney in a moment. we asked people to write down the things they love to do most on these balloons. travel with my daughter. roller derby. ♪ now give up half of 'em. do i have to? this is a tough financial choice we could face when we retire. but, if we start saving even just 1% more of our annual income... we could keep doing all the things we love. prudential. bring your challenges.

>> he lives, he appeared on the floor of the new york stock exchange. mr. evan spiegel.

co-founder. there's our own nicole petallides. our cameras. he's a co-founder and likely to be worth 6 billion dollars, okay? that's quite an entourage as you would expect from a man worth 6 billion dollars. while we are on the subject of snap. listen to what hillary clinton said about snapchat. roll tape. >> by the way, you may have seen that i recently launched a snapchat account. i love it. i love it. those messages disappear all by themselves. [laughter] >> ouch. okay. money guy john layfield is with us now. john, look, at any point in the near future would you consider buying snap shares? >> no. it's ten time over subscribed,

you've got a company that's been hemorrhaging money since they started and evan spiegel is a brilliant guy, congratulations for the successful ipo. i think the run-up is going to occur before the retail investor can get in and i'm not going to go into any company that has to compete directly with facebook. stuart: snap priced at $17 a share valued the company at 24 billion. massive wealth creation, very few jobs. what say you? >> how is massive wealth creation is problem? this is great. all of this wealth that gets created can get reinvested into new businesses that hire new employees. this is a capitalist's dream. create a lot of wealth with as few resources as possible. you could argue that snap is overvalued and not going to create as much wealth as they're talking about. that's how workers get paid

more in the long-term. >> that's assuming they get paid more. >> that's exactly what congress and the president have do could. create an environment where we create more of these things. >> wait a second, we've moved from an industrial economy, massive factories which employed maybe 10,000 people. look at alcoa, for example, they've got 60,000 employees, an industrial company. >> it is, yeah. >> that's the way the economy used to be. you could create well paid jobs, industrial economy. today, you don't create the same number of well-paid jobs. you create the wealth, but not the jobs. >> that doesn't mean you can't. the problem in this country, you've had regulation that stifled entrepreneurship for decades now, we can create new jobs in a nonindustrial economy. we have to have the right environment to do that, that's congress, that's the president's job. but we shouldn't act like you can't do it. it's just that we haven't been with doing it, we need to wealth creation. >> what about companies that use robots? >> what about them?

>> we do a lot of those stories these days. >> we've had technology has been advancing for decades and we've created more and more jobs. the problem is, we have a pessimistic view because there's technology out there, bunk! we can do it, but you need the wealth moving again and you get the wealth moving again. stuart: give me an example here, $24 billion, that's what snap is worth. billions flowing into them today. which jobs, what kind of jobs are created with that wealth creation? >> you're looking into the future at jobs and fields that don't exist yet. that's the beauty of it. nobody would have predicted snap ten years ago, right? but that's indeed the company that we have employing 1800 people. >> let me give you this one. whatsapp sold to facebook for $19 billion. it had 55 employees. >> right. stuart: massive wealth creation

with jobs? what jobs did that $19 billion create? >> all sorts-- >> i'm not being a luddite here, i'm really not, trying to get through in my mind how massive wealth creation translates to job creation. >> look at how many people in this economy 100 years ago were in farming. we produce far more with fewer people. what did the farmers become? they and their children became the engineers and programmers that drive our economy today. we can make the transition, but we're better off. i wish alcoa could produce what it produces with 5,000 workers. >> it's striking that snapchat is worth more than alcoa, were consolidated or noble energy or manufacturers. stuart: it's the same as chrysler, the same with much more than alcoa, much more than alcoa. it's worth the same as corning, an advanced company these days.

>> it creates intangibles in people's lives. liz: making and sending funny pictures? >> that's a good point. this snap sends funny pictures, ha, ha, ha. >> you don't like it? >> no, i don't understand it, quite frankly. liz: it's an intangible with a capital i. >> this all may be illusory wealth. you and i don't get to say what people-- >> it's illusory capital. stuart: raw capitalism needs better pr, for wealth creation for everybody cross the board. that's what we need. we're at 9:28.30, we're seconds away from the opening of the market. the dow was up over 300 points yesterday and took off all over aga

again. i might add around 11:30 eastern time yesterday morning, we were on the air and put on the era sound bite from steven mnuchin, my colleague neil cavuto did an interview with him, a sound bite said that you could have a tax cut by august. he was dramatic about it and by august. that was extraordinary news and at that point, the market took another leg up. then at 12:noon, neil cavuto ran the full interview and the market went up more. at one stage up 340 points, settled at 300 higher. that's what we're starting, 21,115, we start from there and look at the bottom aren't corner of your screen, looks to me like we're going up about 20 points again. liz: since trump won the dow added 670 billion dollars to the dow valuation since the president won. now for the s&p youen and i

were talking 2.9 trillion-- >> extraordinary. we've gone up from there, wiltshire, we're now 3.251 trillion dollars. ashley: wow. stuart: it's a big number. three seconds to go, everybody, they're clapping and bang! we're off. 9:30. do know the expect snap to start trading immediately. they've got to line up the buyers and sellers and how many shares are out there offered. they've got to line it all up and they will, but don't expect a snap trade in the immediate future. we have opened ever so slightly lower. we thought we'd be up 15, 20 points. we're not, we're down about 5. not too bad. we're still above-- we're still above 21,100. i'm sure we'll remember that, ladies and gentlemen. you're looking at the new york stock exchange, the floor there. that's the post where snap, inc. will be traded at some

point. it's going out today at $17 a share. ashley: ten times oversubscribed. in other words, the shares described are wanted by ten times more than were available. stuart: the subscription implies when it opens it will be above $17 a share. ashley: they could have priced at 19, but they wanted that nice upward action once it does start trading so people will jump in. stuart: look, we're down 16 points and we often open like this, slightly higher, slightly lower and the market settles down and in the past, for the past, what is it, 100 trading sessions, we've gone up. i'm not going to guarantee that happens today, but let's see how things pan out. look on the right-hand side of your screen, a lot of red, we have indeed opened lower, stocks, but not a full-fledged retreat from yesterday. that's the bottom line. who is going to cover this on a historic day, ashley webster and liz macdonald of course.

maria bartiromo will make her way to the studio any moment. john layfield from sunny bermu bermuda. we're down only 10 in early going. is anybody like you, john, are you skeptical about maintaining this rally at this level for the dow? >> i am. i'm skeptical about are we going to have any type of lag period from now until this corporate tax reform comes through. in history, 1986 the corporate tax reformer, president reagan took an economy pretty good to over 4% gdp. then reform under president trump. we're look at having both right now. the question, when will those structural reforms happen and will there be a lag time? i'm a little in cash, thinking a little bit of a pullback. not a bear market, but a pullback. stuart: stay there for a second. brian brenberg, let me summarize, a lot of investors believe if we get the tax cut by august, the market goes up

some more. if we do not get the tax cut this year, that market goes down. what say you? >> i think that's reasonable. this is like a poker game right now. mnuchin yesterday pushes his chips onto the table and saying we'll get it done by august and the market pushes their chips in, we'll see you on that, you better deliver. if the delivery doesn't happen, i think there's a big reaction if this doesn't get delivered. stuart: ashley, what do you say? >> and we had newt beggingrich, little optimistic to see it signed and done in august. newt wasn't in a great mood this morning. i think that's what it was. normally he's very enthusiastic. stuart: ladies and gentlemen, maria bartiromo has arrived. maria: hey there, stu. stuart: getting the microphone on, she's ready. i just asked brian brenberg and i'm going to ask you the same question, if we get-- a lot of investors think if we get the tax cut this year by august, the market has a second way up to go. a second leg up.

if we don't get the tax cut this year, that market goes down, what say you. maria: 100%, totally agree. that's the risk if the timeline is broken. don't forget steven mnuchin and the trump administration has been taking expectations down. he said last week, this is an enormous thing that we're getting on the table, a fast track that we're getting it out by august. they're slowly, but surely trying to get expectations down. it's hard because now the expectations are there. this market was up 300 yesterday and they're like, give me those tax cuts now and give them to me quickly. stuart: i was surprised how direct he was with neil yesterday. maria: he was. stuart: he said signed by august, not just -- but signed by august. maria: that's what the market wants. the request he, is it going to be retroactive and see that take effect in 17 or say, hey, it's august, signed, but let's save the money and begin in 18. probably not. that would be a big disappointment. stuart: yes, it would indeed.

everybody, of course, is waiting for snap to start trading today. it does offer shares to the public for the first time, it does take place today. do not expect this thing to trade immediately. the market has been open for four minutes, do not expect a snap trade, i don't know when it's going to happen, but don't expect it now. they're going to line up the buyers and sellers and establish an opening price and take it from there. next case, we're down 17 points i want to go straight to the floor of the new york stock exchange, nicole, what are traders there saying about snap and by the way, nicole, we did get the shot of evan spiegel walking past you, the new billionaire walking past you to get to the floor of the exchange to get to the opening bell. what are the traders saying? nicole: they're excited that they have the third largest tech ipo right here, it's happening, $17 a share. there's huge crowds. we saw evan walk in and bobby

the founder next to him and i said good morning, congratulations. they're walking with tom farley president of the new york stock exchange, he said thank you. he's very polite. i didn't want to bombard him too much, he's a very private and secretive person, talk whether he would be here for the opening bell. maybe he would just come down for the opening of the stock around 11 a.m. so, there was obviously a lot of talk about his overall style, where he doesn't have big meetings with lots of employees, the kind of guy that prefers a smaller environment, but came down with the team there and beautiful girlfriend or engaged fiancee miranda kerr, the model, and a lot of others as well. so the action is here at the post and now they've got to get this paired off for the buyers and sellers, get this going. it's exciting to be here and follows only two other biggies, alibaba and facebook. so, we're expecting smooth sailing. they did trials over the weekend and flooded, flooded the system with as many orders

as possible to make sure it was working in a proper way. stuart: we'll see about that, we certainly will. nicole, thank you very much indeed. we're talking about an instant brand new billionaire with a very glamorous girlfriend and sitting next to me is maria bartiromo who just showed me the screen on her phone and said, paying $24 billion for this? and showed me a picture of herself that had been filtered, i think, that's the word. maria: i downloaded the snap app and took a picture of myself with that. stuart: looking very cool. maria: thank you very much. stuart: very cool. maria: i like it, too, i don't know, just how they're monetizing themselves. they call themselves a camera company. i call it social media. it's fun, but i don't know if it's warranted for this hype. stuart: there's a good deal of skepticism, i do declare. liz: the user growth dropped for the first time since 2014. stuart: oversubscribed.

liz: and expenses are running about double, twice what the revenues coming in. stuart: there's a limit to how long i can keep up the chat about snapchat. i am chatless. so, facebook just hit a new all-time high. drop back a little bit, but hit the all-time high well above 137. by the way, so did apple. that, also, just hit another all-time high, again, it's-- it was actually, i think it hit 140, came back down a little bit and now it's 139.91. john layfield, come on in, please. facebook and apple, address those two stocks. they're at record highs, would you buy either of them here? >> i wouldn't buy apple here. i bought apple and i continue to own it, i like warren buffett's investment. the recurring revenue streams in apple to me, steve jobs completely changed, with ent from software to hardware and

now back into the software part of it with recurring revenue. i think it's great to own long-term. i'd wait for a pullback. facebook, and that's the reason i wouldn't buy snapchat, i'm not going to buy any company like snapchat that has to compete with facebook, same as i wouldn't buy a retailer that has to compete with amazon. stuart: facebook just lowered the price of the oculus riff, the virtual reality system. i thought it was the new big thing, explode it would be explode. and it has not. and they're lowering the price. maria: a lot of competition in the market. barriers coming down. stuart: and there's virtual reality, i still get sea sick. maria: oh, there's that. stuart: there's that. there's that, that's right. [laughter] check that big board, please, we're coming back, we're down 11 points, that's where we are.

we saw infrastructure stocks go up, especially after president trump's speech the other night, he wants to spend a trillion dollars over ten years on that kind of company, edging back a little today after their big run-up. liz: that's political rubber hitting the road there. democrats may sign off on that. stuart: we've also been looking at the banks. they were moving much higher over recent sessions. investors think the president is going to relax the bank regulations. ashley: also a rate hike. that's positive for the banks getting money back for their loans. stuart: the federal reserve is likely to raise rates. >> don't get to connect the dots on the financial companies, the banks are going to be funding a lot of the infrastructure deals, private-public partnerships, a whole new line of business, we think. stuart: goldman sachs at $252 a share, down a mere 8 cents as we speak. mylan labs on the screen for you, looking down the road, they see a strong year ahead.

the market is not listening to that. the stock is down 8 cents. more money coming in at monster beverage and buying back shares. can somebody tell me off the top of your head, what's the beverages that they make, monster beverage. >> energy drinks, sugary energy drinks. >> sugary energy drinks, up 12%. all of you foodies not looking good. anheuser-busch, profits at budweiser's rents, inbev, that is, wants to costs, down 3%. shake shack, says it won't grow like it used to and the stock is down 3%. that's shake shack. mcdonald automated pay systems and ordering. and three upgraded the stock. it's at 129 right now. what have you got. liz: there's another story, mcdonald's may get into delivering hamburgers and french fries. they're saying, in their top five markets, three quarters of population live within three

miles of mcdonald's. we could do delivery. maria: by the time it shows up, aren't the fries cold? you've got to have mcdonald's fries hot. stuart: wait a second, wait a second, if i've got my little app here, walking towards mcdonald's, there in about two minutes. ashley: you can do that. stuart: i get on the app and i order, i want my seniors black coffee to go and it goes into the ordering system, i walk in, i don't talk to anybody. maria: that's true. stuart: i pick it up and walk out. liz: what they're doing. stuart: what's wrong with that. maria: that's great, but expanding and say if you call us, we've leave mcdonald's at your doorstep and deliver it to you and my point is, don't deliver me cold fries. ashley: soggy fries. stuart: i don't have anything delivered except for amazon, i can't stand waiting. ashley: you surprise me. stuart: that's the way i am. [laughter] . maria: five minutes ago. stuart: we're having fun in advance of snap starting to trade, not yet, folks, just wait a while. the dow is coming back any moment now, it's down 2 points,

watch out, it could go positive. in the meantime, let me tell you about yahoo!'s marissa mayer takes a pay cut over the response to the data breach. john layfield, are you still a fan? i know you always were, are you still? >> no, i thought maris sa mayer had the right strategy, but like a football coach against belichick. you have a great strategy, but sometimes the opposition is better and i think that's what she ran into. i still own a little bit of yahoo! but it's because of the alibaba stake. stuart: i know that nicole is on the floor of the exchange looking at snap, inc. got any news on timing of the first trade, please? nicole: well, right now, i just went to the post there, and there's obviously a crowd of people, they have to get that book ready, but what we are seeing and the overwhelming, obviously, the noise that we're hearing is that they're seeing a slew of bids. so, you're not going to see it most like under $17.

at some time we're hearing 10:30, 11:00, so you've got to be patient on this one, but the idea and piece of news that's very interesting is that there's a demand and the bids are coming in. so, they want it. they want snap, they love it, what do they think, it's a social media company, a camera company, a millennial company, i don't know what you want to call it, but i can tell you that my two children today before they left the house said, 90% of our school uses snapchat, nobody uses anything else. every kid in america uses snapchat. they gave me the lecture as to why snapchat is hot. my argument would be they don't make a profit, but they just said, instagram is out. they don't use facebook and they really represent the young generation and that young generation is hot on snapchat and-- >> until something else comes out. stuart: what kind of an argument is that? they don't make a profit. please, this is 2017.

does that remind you of dot-com days? it does for me. we're positive and the dow average turned to the upside. .90. oh, we just turned negative. twitter, let me talk to you about that, the obvious question, is snap another twitter or is it a facebook? well, it's just added more safety tools, and it says it's going to curb abusive accounts. we've heard this before. the stock is still at 15. liz: twitter is saying it itself will try to root out and discover and get rid of abusive accounts. now, people have to self-report and twitter will ignore if your friends or family are reporting in. twitter sets that aside. now for the first time twitter is saying, yes, we will be more aggressive in rooting it out ourselves. ashley: a little late. stuart: that's a rotten chart. that is a rotten chart. >> notice the contrast. we're talking about the excitement with snap and twitter's news is we're trying to get rid of abusive people on our platform. they're going in definitely different directions. stuart: i don't know what he is

going to happen to twitter. what is going to happen? if somebody was going to buy them, maybe they would, maybe they're waiting for the stock to go down lower. liz: and the trolls leave. stuart: there's something on prompter, read it cold, let's see if i got it right. north dakota reportedly stands to gain more than $110 million a year in tax revenue after oil begins flowing through the dakota access pipeline. liz: yes. stuart: all right, john layfield, that's you. you know a thing or two about oil money. what are you going to say about this? >> i think that north dakota has something to do with native americans and whether or not it's a sovereign nation. the keystone, 250 miles they were talking about that keystone crossing, they had 25,000 miles of pipeline carrying so-called hazardous materials. the problem in north dakota, is it sovereign rights. we did that in the black hills,

that's the problem i have, not the pipeline. liz: the issue are they going to collect more taxes, and helping poor people and education. and the states say it's cheaper to deliver. ingoing to be cheaper than by truck or train. stuart: there was never a serious argument against the pipeline other than the green argument that we don't want to burn more oil. that's the argument. i think it stands up. maria: what's more dangerous, carrying oil on a rail car or underwater? i mean, it's so obvious that that's the safer way to actually transport the product. stuart: by the way, a moment ago, we were saying that maria had taken a snap picture on her cell phone and she asked the rhetorical question, am i paying $24 billion for this? well, that's-- because isn't that what snap does? >> yeah.

stuart: take a picture and fool around with it and have fun with the filters and that's all they've got. maria: the young people are doing that. a lot of time on their hands. i want to ask you a question, look, earlier on the floor, young people are loving it, nicole, i want today say lets he a check with your teenagers how long one thing is important to them? >> a lot of people are skeptical that this is going to be another facebook. liz: facebook hit an all-time high, that means it's saying we're not going to have the competition from snapchat coming in. stuart: fair point. people are buying facebook maybe as opposed to buying snap. >> instagram, the stories app against snap, that is probably what drove the lower user growth. ashley: the fact that we're playing with snapchat now, it's already old because we're old. liz: like candy crush. ashley: grandma has got it, and

everybody else, boom. stuart: more to the point, the fact that we had to have a specialist in technology to show you how to use it. that speaks volume. liz: and me. ashley: your grandkids came in. stuart: john layfield came in, i want to ask you, 21,000 on the dow. which stock would you buy today? >> i'd buy a stock with some type of infrastructure, i like home depot, gilliard science because they had a dip in earnings. i think those stocks will continue to appreciate. this boils down to corporate tax. if that goes through. i own under amour and verizon, one of the main reasons for corporate tax, if you give them 20 cents on every dollar they earn, that's huge for the stoics. stuart: huge for a lot of companies. john, thank you, back to the beach for you. maria, you've got to go. maria: i think you've got to watch financials. already we heard a blueprint of the regulatory rollback that's happening. we don't have the details what goes away in dodd-frank and how

much we'll see the regulatory rollback help financials. they're big, i recognize that from the election, but i think we've got to watch the financials. stuart: more room to run, amazely. maria: thank you, stu. stuart: tesla sales tripled in china. liz: this is the traction that elon musk wanted. he wants china, china accounts for about 1/7 of tesla total revenue. stuart: that the revenue tripled, the number of cars sold. liz: that's correct. stuart: ashley was being facetious. liz: sales tripled in china. how much? >> to more than 1 billion. stuart: that's value. >> tripled to more than 1 billion. stuart: they didn't sell a billion cars. liz: that's what the reports are saying.

then the reports are wrong. snap will start trading at some point today, okay, not yet, ladies and gentlemen, not yet. lance is with us, he does not follow the stock market, oh, no. this man is essentially a technology whiz, a great reputation. i want you to tell me, what is special about snap? what does snap do for me that nobody else can do? >> it's not what it does for you, it's what it does for 18 to 34, maybe younger. they have that audience, a vice grip on them although the vice is full the vaseline and it can slip easily because this is the most capricious audience, demographic in the world. they will march en masse to something else. that's one of the biggest risk for snap as a company and snapchat as a product. but, they've done a really good job of keeping the engagement up by constantly changing the

product and adding new features. and just those filters or lenses which i was using this morning, to play with them, a 50-year-old man playing with these things, it's embarrassing, but-- >> wait a second, this is what you do on snapchat, take a picture of yourself. run through filters, a long rainbow tongue. >> it's not like a filter. you hold your finger on your face and it transforms. they make it dead simple and that's something that senate chatfield has done. stuart: and that's it, lance? >> that's not it and obviously they've extended the brand. and you have mashable on this is packaged bits of content, cosmopolitan, vice, everything you can imagine like the magazines that a 18-year-old wants to read in the format they want to read them. it's tight, it's sharp, swiping through it, nothing lasts for more than like the read is

like, you know, 25 seconds, but you get a lot of information. stuart: now, see, you've opened up a whole new world to me. i thought it was just, you take a picture yourself, run it through filters and bingo, a rainbow tongue it's it's more. stuart: you're telling me that advertisers, for example, can shoot something at me via snapchat, short, sharp and contained and almost subliminal and that's the value. >> you can have advertising again it and you're swiping or tapping through it and feels like part of the package. the lenses and filters those are sponsored often. and doritos might do something. which is smart, they're just as much fun as the ones that haven haven't-- aren't sponsored. and if you're engaging with something that doesn't feel like an advertisement, basically you're going to keep doing it and advertisers are thrilled because they'll get the engagement that they desperately want.

stuart: they've got 160 million daily active users and they're reporting 405 million in revenue last year. they want to bring in a billion dollars in 2017. they get that money, just from those sponsored little things that come at you. >> right, i mean, they're basing-- right now it's based on sponsorship, but they're trying to sell hardware snapchat spectacles. >>en evan spiegel calls his company a camera company. they may build a drone. everything is about capturing your life and capturing images and putting it on the platform. with the money that they get through this ipo, they're going to super charge those efforts. they're going to extend as many directions as they can because they have to run as fast as they can, because there are people hot on theirs heels like instagram. when instagram started making

instagram stories, that's when snapchat's growth went from this to start to do more of this and that's something that snap actually predicts that their growth is going to slow on the user side. they'll continue to grow, but it's harder and harder because there's so much competition. even though i'm engrossed with this. nicole, on the floor of the new york stock exchange, what do you have for me now on snap? nicole: i have to tell you, it's hard to get into the crowd, okay, first of all. the i mean, the crowd is protected by nyse and on the outskirts, but i've gotten into the crowd several times to get a feel of the demand and the demand is hot. in fact, while it's not published yet, you can go with this, but the crowd is talking about bids that are $22 a share. so, you know that right now offering it at $17 so the ceiling here is obviously, that it will definitely open above $17 a share. and so, right now, that's what

we're seeing. these numbers change every few seconds, every minute, if you can't really say it's going to be $22. however, i think you can comfortably say it will be above $17. by the way, here are the spectacles. our producer courtney crawford was wearing them and took some great video of the founders, evan and bobby, walking in with the president, tom farley, but this right now, there's no doubt it's going to be sometime, but it's looking higher, even above $20 a share, maybe 22 and i'll continue to try to get some good numbers for you. stuart: that's fascinating. so the price will be almost certainly above $17 per share. lots of demand for those shares when they do eventually hit the market. now, what we're trying to do, of course, is trying to line up the bids. who want to buy it, how many people want to buy it, how many shares are available and that's when they establish the price. it doesn't come in a matter of seconds or minutes. you're probably going to have to wait well into the 10:00 hour before you see the first

trade. that will be my guess. lance, you're not a stock analyst, i know. >> no. stuart: you can't price-- >> all i remember is facebook shooting up, you know, maybe it started at 17 shooting up to over 40, you know, very quickly because people get excited about it. stuart: it came down. >> it came down to 12 or something. liz: twitter opened at 76 and 23, it's running about double what facebook was valued sales basis and four times what twitter was valued. stuart: okay, i want to get back to brian, you've got to leave the show in a couple of minutes' time. you maintain that snap is typical of wealth-- not wealth creation, but capital creation and, yes, wealth creation and you think it's a wonderful, wonderful thing? >> yes, it's one thing. the economy doesn't need just one snap, it needs thousands and thousands and thousands of companies like this where

workers are creating new possibilities for consumers and generating wealth and that's how economies grow. i like what's happening with snap. we shouldn't say it's a bad thing they have fewer workers, it's how do we get there, the answer is back to what is driving the stock market, regulatory reform. stuart: how much technology companies are worth, i've got a couple of numbers. amazon is worth more than $400 billion. apple worth more than $700 billion. microsoft more than $500 billion. facebook, $400 billion. alphabet, google, 580. you add up the technology companies, near 3 trillion. liz: worth more than countries in this world. stuart: how many countries are worth 3 trillion? you've got five of them here. lance, it's your fault. >> it's not my fault. i would not predict that snap chat is going to follow. they don't have the same product lineup and number.

apple is a broad company dealing with so many consumers across all demographics and that's really what you need to build a company of that side. stuart: think of it, as you transition from an industrial economy and we've been doing this for a long time, as you transition from an industrial company to technology-based economy and you've got companies worth more than countries, dozens of them. i find that fascinating. >> this is a reason why we take a look an important look at education and that's the problem how people participate in the economy. we've got to have an education system. stuart: he's talking up his own book. a professor of finance at the king's college of new york, and talking up education, what a guy. [laughter] . >> i was going to say it's a problem for the company because they want the good talent and they are nervous and one of the reasons so interested in getting people from wherever they can who can do the job. the hb 1 visa thing is not

going away because they need it. president trump did not mention technology at all during his address to economy. stuart: manufacturing and industrial economy. >> it's going to see the administration on one track and the world on the okay. brian, we'll say good-bye. grind that axe, son. next case. so, we are all devouring the snapchat statistics. how many users, how much revenue is it. is it facebook where stock eventually zooms. is it twitter which eventually fizzled. dig a little deeper, you will see a problem. it's a big problem for all technology companies in our society. they don't employ many people directly. they create vast wealth. their employees make big money. but there is not many of them. consider this. snap, we are told, will raise, actually, be worth about $24 billion. that is what the company is worth.

24 billion. but it only has 1856 workers. that is a very small workforce for a very valuable company. remember what's app? it was bought by facebookç for 19 billion. it had 55 employees. this is not like old-line industrial companies with tens of thousands of people. this is a whole new world. companies that develop intellectual property don't need a lot of people. now look there is no ideology here. neither the left or the right has an answer to this problem i'm calling it. how do you create millions of high-paying jobs, when the companies leading your economy employ a handful of people. the second hour of "varney & company" indeed already has begun. next case, breaking news on mortgage rates. it is thursday morning what you got? liz: 4.10, ticking down the 30-year mortgage. people are coming in, mortgage applications pouring in.

we've been reporting existing homes sales coming in strong. new home sales coming in pretty solid. construction, right is coming in pretty decent. ashley: construction dropped off recently. they're waiting for the tram infrastructure revolution to kick in. more percent time buyers are coming in. home prices are rising because inventory is shrinking. stuart: tell you what the problem is, dodd-frank, the ridiculous banking regulations which tie up in knots if you want to borrow money from a bank. liz: this is ridiculous. this ahead of fed may be raising rates a quarter point. stuart: i don't think 4.1% is outrageous. liz: historically low. stuart: how many times have we told our viewers when i bought my first house in california, the mortgage rate then was 12.5%. i thought i got a bargain.

ashley: 1982, l.a., 16% was considered a steal. stuart: mortgage rate, los angeles, our producers say move on. this is fascinating. lance ulanoff, 50-year-old man, when did you get your first mortgage, what did you pay? >> in the '90s. i think we were in the 5% range, something like that. yeah, it, it was a different time. stuart: this is lance ulanoff, ladies and gentlemen, not some tv guy. oh, no. this is mr. technology. >> regular guy coming in here to buy house us. stuart: let's go to some other stocks we're watching today. two of the biggest tech names you know. recaller this morning hit all-time new highs. that would be apple and that would be facebook. apple hit $140 a share. yes it did, that's right. i think we had facebook going to about 138. they backed off a little bit from the record highs.

you can see they are way up there this morning. there is skepticism about snap which is going to go to market. it is going public today. we have not yet gotten the first trade out there. it is supposed to go at $17 a share. the first trade will be more in line with $22 a share. liz: that's right. stuart: nicole petallides somewhere on the floor in that crowd. she already told us essentially there is a lot of overdemand for the stock when it hits the market. that's why it is going to be a little bit higher. nicole, are you there? come in, please. >> i think it is really exciting and i want to clarify, we have a banner that says snap to open at $22. we have to sort of brush that with a broad stroke. there are bids at $22 a share. that doesn't mean it will open at $22. traders tell me it will open above $20 a share.

there is big demand. they are seeing the demand. they have four million shares in the book. trying to get that up to 10 million. likely within an hour or so they will he open. i want to hesitate and say, likely to open above $20 a share according to traders we've been speaking to. there are bids for $22. we'll see where -- i will keep giving you the latest numbers. stuart: fair point, nicole. thank you very much for the update. got it. michael gorman, the editor of end gadget. michael i think i got the pronunciation of the name there, end gadget. i think i got it right. you're a technology guy. that's what you do. >> that's right. stuart: i want you to tell me what is special about snapchat? i know it has disappearing images. i got that. what else is special about snapchat that i don't get any place else? >> i would say probably the most special thing about snapchat is the cachet that it has with its user base which is a young user

base, seedingly desirable for advertisers. that is where snapchat is making most of its revenue. if i would pick one thing to highlight about snapchat, the fact it has really, really high engagement with lik young people that use the apconstantly. they're sending snaps all the time. there is competitions that people have, as you use the app, you get a score that raises the more that you use it. for really young users that is an addictive kind of combination that is the single biggest thing drive enthe success. stuart: you tell me, michael how do you make money with a very young demographic? >> i would say through their parents. that is the currency of the realm. snapchat has a large people of small, young people with not the disposable income. it is popular with people with college age kids and older who

do have that, and advertisers are chasing those demographics all the time. the company is also, in addition to kind of using their discover channel, those things, they're getting into creating media. they partnered with a&e to do a reality show. they do a batchelor postshow analysis. i think they have one other show. they're looking new kind of avenues to advertise to pull in a bigger audience and presumably an older audience, like "the bachelor" appeals to people in their 20s, 30s, gets you into the prime advertising michael. stuart: it surely does, michael. that is a fact young man. stay there. i have a lot more. a lot of our viewers will be interested in snapchat. i think they're interested in where this huge overall stock market rally is going. we opened up this morning. we're actually now just up a point. but remember, please, we're well

above 21,000. a lot of people want to know, are we going to see a big isoff any point soon? forget snapchat for a second, what about the overall market. it has gone up so far, so fast, surely at some point we get retracement, whatever you want to call it? steve cortez is a money guy. address that issue please. before you answer, steve, let me throw this at you. i'll told many i am -- investors believe this market has another way to go to the upside, if we get the tack cut signed by august. if we don't, the market comes down sharply. what say you. we're looking at snapchat being used by our people around the table. go ahead. >> stuart, you're exactly right. if there is disappointment, we could go down dramatically. the stock market is optimistic and optimistic about chances for growth. not we will just make america great again.

we'll make america grow again. we'll do that by taking shackles off. washington, d.c., has become an albatross upon the american economy. stuart: you are a trump guy. >> yes. stuart: you are a trump guy. do you think you can get this legislative schedule through, obamacare, tax cuts, infrastructure program, that is a very busy schedule. you're a trump guy. can he do it? >> he can and he will. i'm here inç washington. got to come into town with the president's speech. after watching the president's speech the other night, i don't think there is any way that the congress will dare stand up against his agenda right now. i think those republicans do not want to go back to their districts and states, saying i was impediment to the president's agenda which the american people elected. which gave washington and republican as mandate in washington to get all the items done. it will absolutely happen. from meeting with my friends at the white house, they are dead intent on this happening and

happening extremely soon. don't take my word for it. take the stock market's word for it. thestuart: scott martin, come in please. i don't know if you can see, liz and ash fooling around with snapchat. one of our guests said, are you kidding me, we want to value this company that does filters, rainbow tongues and all of it? that is worth $24 billion, really? scott is this a facebook or is this a twitter? >> i think it is something different, stuart. it's a toy. emac you had cute picture with red ears, minnie mouse type thing. i love that. i'm watching you guys do that. this is a toy. to me you asked really interesting question, stuart, to michael gorman on before steve cortes there, how are they going

to make money in that demographic. that demographic does not spend money. reliant on their parents, this app, you wan to go out and buy a bag of doritos. to me that is not worth $24 billion. take note from previous ipos of companies had more to them, i.e. fast book, i.e., alibaba, those had tough years in first years as a public company. i foresee the same thing with snapchat. stuart: lance ulanoff, tell me first of all, why is that thing you're playing with not just a toy? >> so i do think when you look at snapchat discover, an extension of the product, content packaging, that connected major media brands with this audience you but also with the product that they were creating which was all of this content on more traditional media, butaged in such a way that the snapchat audience really loves it. so, mashable is a snapchat

discover partner, and the an gaugement we see here is really amazing. it is because of the way snapchat did this. they provide it as you have to package if it is snapchat or if it is snap, not as if it is traditionallal. stuart: michael gorman, i know you're still there. i want to get back to you. like lands you know this stuff. suppose i'm a 12-year-old boy, let's just suppose, okay? what am i going to do with snapchat? >> you're going to talk to your friends. you're going to be sending them funny pictures back and forth. it is your primary mode of communication with your friends. i don't know this personally but i have friends that have little brothers an sisters and cousins and they spend hours and hours on snapchat every single day. that is the primary mode of communication. stuart: michael, tell me why it is not a passing fad?

we've seen stuff like this before. >> i would say it is not a passing fad looking around long it has been around and how they have been able to grow theirç user base and they haven't been losing people. they have been expanding into new realms. there are a lot more older people trying to get in on the snapchat thing because it is such a thing generally in the tech world. it is really popular app a lot of people are using. we haven't seen them losing users. no reason for me to think that will change anytime soon. i don't know if they will continue to continue the growth they have been seeing but i don't see them losing people anytime soon. stuart: mr. all november, he is shake his head laughing. >> this could mark the end of snapchat with the wrong demographic using this product. this is a real risk for snapchat, if the teens, young people, who love this product

feel their parent are on it, they're not going to want to be there. one of the issues that facebook faced where teens were leaving because the parent had taken over. stuart: who is that shouting at me? >> that is me, stuart. lance is bringing up something important. remember with that talk was circulating about facebook, you know what? the teens are leaving. the millenials are leaving. do you realize what happened to the facebook stock price since those rumors spread. it is up 30, 40%, because the demographic on facebook is the one that advertisers truly, i believe want because they have the money to spend. >> so there is also the fact that they did transform their whole business into mobile. when they went public they were not delivering the revenue through the mobile. they were delivering it through the desktop. they made 180-degree turn there. most of their money comes through mobile now which was a critical, a critical change and also tremendous success. stuart: all right. wait a second. i want to ask people, are they going to buy this thing today.

scott martin, first of all, if it goes out between 21 and $23 a share, would you buy it today? >> i would get out of the way, stuart. i would wait for a pullback like we saw with facebook and alibaba. yes, snapchat is a great thing. probably the biggest thing to happen to millenials since beyonce's pregnancy but that doesn't mean you buy the stock. stuart: steve cortes, would you buy it today if it goes out there at $22 a share? >> absolutely not. as a matter of fact i would consider shorting it. i would consider betting against it. as much as i like the stock market as a whole. you know how optimistic i've been since the election. i think this is fool's errand. reminds me of ponce de leon chasing the fountain of youth. this is the stock verse. kids are utterly addicted to it. i think they air, oxygen comes out of snapchat, how connected constantly they are to it. however, guess what, they don't have any money unless we give it to them to spend on snapchat

which i don't see happening. no, i much prefer facebook, even at all-time highs who has demographic that is sticky and money, rather than chasing after the fickle youth market. stuart: i'm sure our audience is paying more attention to the left-hand side of the screen hand than the right-hand side of screen. we on our left, ashley webster and elizabeth macdonald making a fool of themselves. they are pumpkins, purple tongs tongues are the devil. what do you say? let's get serious. the pricing of the snapchat offering. nicole has more information for us on the floor. >> first of all over a half hour ago i told you there were bids for $22. everybody was still saying 17. then it became 21, 23, right around the 22-dollars mark. i told you there was lots of demand. guess what? it is continuing to move higher. the latest indication is 22 to

$24. 10:16 a.m. i will say, evan spiegel, who we said there is private-style ceo, there were questions whether he would ring the opening bell or come down for the opening of thç stock. i was talking to someone, they said he already left the floor. so taking a breather, meantime until they settle these orders. right now we're still seeing demand here for snap and it is going higher and higher. which only brings up the valuation of this company. we'll see how high it can actually go. so interesting, a company that still doesn't turn profits. everybody's point is the millenials. they don't even care if they have older people. advertisers want to hit millenials. not my grandma, they want the millenials. they have them on snapchat. stuart: good reporting, nicole, you're right on it. we appreciate that. cheryl casone is with us. you have an angle on the secrecy

of snapchat. what have you got. >> i i want to pick up on evan spiegel for a second. we're standing in front of the headquarters. we're not invited in. there are no signs here. it goes to the secrecy of the company. not just how they hand i would the debut in the public markets. we had no confirmmation. we thought he was in new york. we were told nothing but business as usual in venice beach. look at how the ipo was constructed. there was breaking news from the fcc, from the advisory committee to the fcc on march 9th, because they have concerns about this ipo and how the deal was structured. we talked about this yesterday on fox business. if you could get a hold of a share of snap today, which most of our viewers or not all, you won't do, because you have to be in the right club, you have to be in the wall street club, you have no voting power. it is up to 26-year-old evan

spiegle who has not done interviews. this culture is of secrecy and elusiveness. they have 30 buildings out here. this is all of an issue guys. that is what you really have to consider, what you're buying today, stuart. stuart: i understand that. if i do buy a share of snap today, on the open market, after it's trading publicly, if i buy i have absolutely no voting power whatsoever, zero. liz: that's right. zero. stuart: small ownership stake but no vote are power at all. that means i have no input on the earnings of the the second. ashley: right. stuart: i have no earn input on whether they buy another company or sell to another company. i have zero. >> that makes snapchat users very happy. they have the leader staying true to the original mission. more like a jobs, more like a

steve jobses, more like mark zuckerberg. they haven't really made themselves available to the press or media. they sort of, obviously when jobs was around, he was only rarely giving interviews. zuckerberg doesn't give a lot of interviews but what they do they hold the firm grip on their company and do what they want as opposed to succumbing to the pressures of the stockholders. i say this because you look at twitter which did not have the same kind of leadership and they had to struggle, they have struggled because they really tried to first satisfy shareholders, and now they're trying to figure out how to satisfy users who have been frustrated with thp service, frustrated with the trolls. stuart: okay. >> it's a tough thing. stuart: michael gorman, come into this. tell me about evan spiegel. he will become an instant billionaire. we got that. he is engaged to a super model. i got that. but he will control this company

even after it has gone public. what kind much guy is he? is he truly a technology genius. >> i'm sorry, stuart. you broke up. stuart: i will make it simple for you, michael. i think you can hear me now. is the guy, evan spiegel who will run it, we lost him. i will ask the same question whom sorry we answer it. lance ulanoff probably what kind of a guy is evan spiegel? is he a genius? >> i think he is a very smart guy. he found a need, he unstood the idea people his age, he is still very young, when he created he was basically 19 or 20 years old. they wanted to share things and didn't want other people to see them. he had to figure out how to build that. he was also a little bit of a bro. almost like a frat boy. i think that he dealt with some of that. did the with some emails that were out there really illustrated the kind of guy he was back then in college. stuart: he has to grow into a business guy's role.

that is what -- like zuckerberg did. >> i watched him ring the opening bell. i was struck by how young he looks. stuart: 26. >> he looks like a kid. running a company fairly decent size with a lot of eyeballs on it. that is transforming into a public company with the world watching it. a lot of people have their money invested in. the pressure changes. stuart: michael gorman is back in. i think you can hear what we're saying. i rephrase the question. evan spiegel will run and keep control of snap. a, is he a genius and b can he develop into the role of a high-powered business guy, successful business guy? >> i don't know if he is a genius. he clearly understands the users and way he guided the company and developed the app in the first place. he hit a rich vain other people are not able to do so. in that sense he is a really

smart guy. as far as whether or not he can become what he needs to for the company to be successful down the road, i don't see any reason why not. he actually has got some pretty good people to pay attention to. he looks at what mark zuckerberg did and kind of follow in his footsteps. see what he did. he talks to people in the valley. i think these guys share tips and are happy to help each other along. i don't know if that is happening between mark and evan or anything but generally speaking you look how he did it and emulate him because clearly facebook has done pretty well. i don't know if he can pull it off the way mark did but i i dot see anything to indicate he can't. stuart: let's step back a little bit. 10:23 eastern time. we're expecting the first trade of snap fairly soon. i don't know when it will happen. it will probably be this morning as soon as they got the price about right. should be we think between 22, and $24 a share. we established a price he deman and price deal. now we're told, okay, because it

is heavily oversubscribed, now we're told it will be closer to $24 per share. that will be the first trade. that iser what told. of course it can change. because capitalism is coming roaring back. ipos last year were at eight-year low. ipos started shrinking. we had only 105 ipos last year. hadn't seen that low since 2009 after the collapse. how do you get in? how do you play this thing? yeah, you will feel iced out. there are other companies benefiting. amazon web services signed a contract with snap. you have to store the images up in the cloud. amazon and google web service ares in play. stuart: this is super high-tech a product that appeals to very, very young people. maria: hot new thing. people want in. stuart: you look back at ipos in the past.

look what hands to microsoft way back then. >> it created all the millionaires. stuart: that is why you have snap and off you go. the spectacle angle, glasses from snapchat. our own adam shapiro is in times square and will tell us what is so great about them. go. reporter: not a lot. the problem with these, you press a button here. you see how it tells you that i'm recording right now. it only records for 10 seconds. if you press button it will record again in 10 second snaps up to 30 sections and download to your phone. let me record you what we were recording a little earlier. you get a sense. these are some of the videos we recorded. here is the problem. it is pretty cool for 10 seconds but you can use your iphone indefinitely and stream live.

you can't stream live with these glasses. we used in news media. under cover glasses can record up to an hour. they have to figure out to make it live stream as well as record much longer than 10 seconds. $129 for this. i asked one guy walking by, in his 20s, would you buy them? he said no. there was some kids, school field trip, i asked them if they would buy them of course but they need their parent money. stuart: very good point, adam. very good point. lance, what do you say? >> google glass offered live streaming video. people felt it was an vase sieve. the way snapchat spectacles work, you pick up video, goes to your phone. it sits there. it doesn't go straight out. you choose then highlighted and put it out to the world. they have created this multistep process. i don't know if by design or they can't get it right.

it feels right because the way which snapchat works right now. the way people feel like this is okay to do. that you're not invading someone's privacy. liz: the google glasses looked like something outs of a tim burton movie. >> they look a whole lot better. they don't look like something most adults might wear. but for teens it is pretty cool. they have snap labs where they're building more hardware. they will make more editions of these. stuart: we have some varney viewers coming in with their snaps, what you call them. fine-looking stuff there. michael gorman, we'll lose your satellite momentarily. get the last word into you. forgive me for asking, if you got any money, i don't know whether you do or not. i don't know if you're invest or not, would you buy snap at any price in the very near future? >> no. i mean, i would want to wait to see how performs for at least six month before i would venture to he see. we've seen so much volatility with the ipos in the first year.

i'm really curious to see, snap's just now getting into hardware. i want to see where they go with the media piece. i think that could be a big chunk. i don't know how many watch that through the app. i will be curiousç to see in te coming months what they do and how the stock performs as they're moving into these areas an investing more into them. stuart: fascinating, michael gorman, you are the editor of "end gadget." i'm i think we're got that right. and i'm glad restored hearing you. >> thanks a lot, stuart. stuart: go back to the floor of the new york stock exchange. nicole obviously right there, close to the action do you have anything on price? >> i'm walking out of the crowd trying to get you the latest numbers. a moment ago it looked like 24. now it looks like $23. it looks like they're getting closer and closer to narrow down the bids. maybe before 11, one trader said

10:45. one would be another indication it would open, when evan spiegel comes downstairs. he was here for the opening bell as we noted. he is a private type of guy, his beautiful girlfriend, fiance, miranda kerr. there are the video taken by the spectacles by our producer courtney crawford. i said good morning, congratulated them. it is looking around $23 a share which is huge. this is a $17 ipo. i mentioned 24 earlier. looks like it is coming off of that. one trader expected even more demand. it wasn't getting to levels they hoped. stuart: right in the middle of it, nicole. thank you very much indeed. i'm not sure the excitement is rubbing off on me. i'm very sorry about that. ashley: the company itself, ipo, what? stuart: the ipo.

it will value the company at $24 billion. ashley: yeah, yeah. stuart: super, super high-tech. young kids. i got it. it i group. i'm the wrong demographic. ashley: maybe that's the problem, yeah. stuart: far more interesting to see is this incredible trump rally. look at this we're down 2 points. 21,113. s that where we are. liz: that's right. ashley: remarkable. stuart: i'm still not over that. 2700 odd points since the election. i'm not over it. i'm to the feeling this passion for snap that you all are. liz: still not seeing headlines on the trump rally really, right? i'm not seeing it a lot. stuart: not this morning. not in the media. it finally made "the new york times" today. ashley: "wall street journal." back of the fold. i understand what you're saying. stuart: other side of the fence. "washington post" i don't think it had it on the front page. this is the trump rally we're talking about. "new york times" did but it was below the fold. liz: today. stuart: when you see a selloff

of the dow jones industrial average, banner headline, trump selloff. he let you down again, guaranteed. liz: not that the dems blocked his policies, right? stuart: i believe charlie gasparino is here. i know he is sitting next to me. you have a microphone on. >> you need xanax? stuart: what is xanax? up or down? >> it is down. stuart: down, okay. >> leak you're feeling the trump rally. stuart: i'm feeling the trump rally all right. i know your story, it is an exclusive story. it's a damn good one. you're saying only a tiny fraction of the shares in snap today are available to the likes of you and i. >> bear with me on this. usually when they do distributions of the shares most of it goes to the institutions. some of it goes to what is known as directed program where friends and family of the company. then about 5% goes to retail. that's small but it is still enough, right? stuart: i'm sorry to interrupt you, but that 5% would get offering price, right?

>> 17, buy it through the broker. stuart: can't sell it immediately. >> right now the snap distribution is very heavily towards institution as you would imagine. a lot more to the friends and family and almost nothing, from what i understand, 1.5% of the 200 million shares that are outstanding is going toç retai. that's a decline from the usual 5%, down to 1.5%. stuart: liz: wow. >> what is that doing to this deal? that is creating demand at a scarcity. here is where the average viewer, average investor wants to buy the stock, there will probably be a pop. could be a significant pop. as you know incations are at 23 or something like that. i would be very wary. you're from the getting a buying frenzy on the company making money. we know it is not making money. whether a lot of people love the company and some people do but

very controversial company because it is losing so much. a lot of people think instagram and facebook you can do the same thing. i don't take pictures. i don't care whether they disappear or not. i'm telling you there is scarcity of demand which is bidding up the price. that is a very scary situation for the average investor. you will not get it. most people will not get it at the ipo. stuart: let me summarize this, a very, very small number of shares have gone to liz, you, and i and ash and lance. >> brokers give it to people like us. stuart: that means a very small number of shares will be in very high demand, therefore the pop is probable? >> basically those other shareholders, the institutions, directed shares which are family, friend of the company, including company executives, they generally hold on to those shares. institutions will let out some of the shares as they start popping, an that's where you can get a real heavy bid on this thing at the open.

we're seeing it right now. it's going from 17 to 22. i heard 23 before i got on the set. this is, this is to me something i would stay away from. this is what we had with twitter by the way. ashley: yeah. >> it didn't turn out well. we should turn around facebook is doing much better than it was at ipo opening. alibaba i don't think so. you have to check the price. i know facebook. a lot has to do with management. i would only say this, why buy it on the ipo today? let the company prove itself a little bit. let he go down and up, down and up. i like cheryl samburg, maybe not her politics, i like the way she runs the company. she knows what she is doing. facebook is very much experience than twitter. twitter has a hard time monetizing stuff. it is temporal social media experience. that what i think snapchat is. i wonder if they can sell advertising i i'm not a millenial. people tell me millenials have

attention span of -- ashley: a nat. >> of an ant. snapchat might be there thing. i actually like reading stuff. stuart: me too. read the newspaper in the morning. amazing stuff. that is a very good story. very limited supply of shares. very strong demand imply as pop and then maybe it comes down. >> listen like the trump rally. you like the trump rally but i will give you a little insight. p-e ratio historically is about 12, right? that is price earnings ratio, historic average on s&p. we're at 25 right now. i don't care. i like, i like his economic policies. but i don't buy 25 times earningsç, unless i see 15, 20% corporate tax rate on paper, stuff passed soon. stuart: that is what we say. if you see it, signed, sealed

delivered in august. >> i buy the dip. stuart: if it is not there this goes down. >> this year. it is crazy. stuart: very good story, charlie. thanks for being with us. steve cortes is with us. hold on a second, lance ulanoff pointing his finger at me. he want airtime. go. >> i was going to say snapchat is less like twitter than it is like facebook. twitter is about a news stream. users, content creators tended to be a smaller group of media marketing business people whereas the content creators on snapchat is everyone. more enter entertainment and social which is a lot more like facebook. >> i agree with that but i was talking about the temporal experience. it's a fast experience. stuart: sure is. >> insider traders liked snapchat. that's why philandering husbands liked snapchat. stuart: why hillary clinton likes it. because the message disappears. >> tweets are public. they stick around. snap's don't. snap's are truly temporal. twitter, not as much.

stuart: i don't know about you guys, i write letters. most private form of communication in america. don't laugh, charlie. don't laugh. >> i was going to say something dirty but i'm not. stuart: steve cortes, still with with us -- with us, we heard the number of shares available for trade something very, very limited. strong demand imply as pop to start with. it gets hollowed out and down it comes. would you agree with that analysis, steve cortes? >> i would. i suspect that is what is going to happen. i certainly concur with charlie gasparino, in general, ipos are dangerous place for retailers investors to play. i leave it to the ares for these special situations. i'm skeptical on snapchat. i can't get my hand around a company who doesn't make money and appeals almost, exclusively to people who don't make money.

but let me put a trump spin and american spin, isn't it wonderful all these innovations are coming out. united states. all those companies you named worth combined $3 trillion, all american companies. america absolutely dominates technology and i would argue one of the main reasons we do, is because tech, thank goodness is largely unregulated. the government doesn't meddle very much in tech. because of that, american innovation works and enormous wet is created for us and the whole world. what donald trump will do, make that happen for the rest of the economy. taking regulatory albatross of the american worker and american entrepreneurs. we're going to flourish. that is why i think the stock market as a whole is going dramatically higher. stuart: fair point. steve cortes, thank you very much indeed. go back to you scott martin. i asked you before but that was an hour before so i will ask for ben it in of new viewers. would you buy snap at any price today? >> today i would not, stuart. i think you will see a frenzy of

upside potential but only because of reasons we discussed already. look at history. look what happened with facebook after the ipo. look at twitter. alibaba which was wildly profitable by the way when it for example. look how those prices came back into you if you wanted to buy them. i would take that lesson from history. if you want to be a snap investor good for you, today is not the day. stuart: thank you very much indeed. our viewers are being entertained by ashley webster using snap and filters with orange tongue and all the rest of it. am i paying $24 billion for that? i know i asked you this question before, lance, for benefit of new viewers coming in it is more than just funny pictures of yourself, isn't it? >> yeah. i mean snapchat has extended their business into content, into media.

they have made partnerships with media companies including mashable what is snapchat discover. these are packaged content like a magazine but to thely in snap format which al appeals to their audience. one of the ways they're making money aside from lenses where they get sponsored lenses or filters. they're doing things that are smart. they're extending into hardware like snapchat spectacles. maybe drones. evan spiegel calls the company a camera company which means they definitely have their sight set going well beyond simply the software platform and a lot of hardware down around it to feed into that platform but one thing i really wanted to say, because we have to keep this in mind, the biggest risk for snap and snapchat is instagram. instagram stories with the parent, facebook behind it. why will mark zuckerberg and evan spiegel never be bestties because mark zuckerberg tried to

buy snapchat. evan said no. facebook said fine, we'll make sure instagram really goes after you. instagram stories is first thing to really slow down snapchat's growth. stuart: that is fascinating. zuckerberg and spiegle. >> nothing. stuart: not joined at the hip, that's for sure. keith fits is with us, as in keith fitz-gerald. i heard in my ear you are very, very bearish. are you on overall stock market or is that on snap? >> that's on snap in particular. i think it is a very different animal. this is extraordinarily dangerous situation for retail investors. you've got an s-1 which is formative document issued prior to the ipo that references selfies, party goats and sexting. i have a problem with companies that do that. it is losing money. users are plateauing. whether this is usable or not,

facebook, i think it is more like gopro or fitbit. stuart: okay, i hear you. keith, i want to stay with you, but branch away from the snap debate. we are of course waiting for the first trade, not happened yet. we're waiting for it. i want to branch away for a second. the minority leader in the senate, senator charles schumer is calling upon the attorney general jeff sessions to resign because of his involvement with conversation with the russians right after the election. complicated story. minority leader in the senate want the attorney general of the united states to resign. keith, i want to ask you, is this going to interfere, this whole, this whole scandal, this whole questionç about an investigation, is it going to interfere with the legislative schedule of obamacare repeal and replacement, then the tax cut, then the infrastructure plan. if it does interfere with that schedule, if the sessions deal interferes with it, that market goes down, what say you?

>> i think this is very much a show-and-tell situation. we don't know who told and we don't know who is going to show. the risk is certainly there, however, i also see optimism and confidence. those two variables run independently. so if the investigation disturbs those two variables, yes i think we take a breather. if it does not, then i think capitalism prevails and so does optimism and so do all other drivers we talk about you will at time and we continue higher. stuart: keith, i have the feeling this market want to go up after this whopping great big rally yesterday after 300 points. we're only down 11 this morning. we have this russian thing hanging over congress to some degree. we're waiting for the snap trade start. we're only down 11 points. do you agree the market want to go up some more? >> if you look at global market, there is plenty of capital on

the move. the market want to go to path of least resistance higher. technically we haven't had a breather. we need that once in a while. people need a downturn. that is normal. you have to have give-and-take because nothing goes up in a straight line forever but now it is very much a situation where you want to be in to win of the government made it very clear which direction it wants to go. the money understands that. businesses are moving in line and optimism prevails among "joe six-pack" as opposed to people inside of the beltway. that is very different characterization from a monetary standpoint and from investment standpoint than we had even a year ago. stuart: thanks very much, keith. stay there for a second. our viewers will tune in to see what is happening to tear stocks after the record high that happened yesterday. i want to go through some big-name stocks which moved very strongly recently. want to see how they're doing today. for example, i have got apple as of right now trading at

$139.79 a share. that is high of its record high it hit earlier this morning. teennal fractional pullback on apple. same with facebook. it reached a 138 i believe on facebook. now it is down just 70 sent. you have very slight pullback on some of the biggest of big winners recently. i'm going to show you, i don't think i have ooh got it on the screen, i have it on my computer here. xlf, a basket of financial companies, xlt, a proxy for the financial industry, it is down just 18 cents after it made a series of record highs. that is the xlf on your screen. still holding $25 per share right there. that's big deal. in other words, you have only a tiny pullback for all of these stocks which have gone straight up for the past two or three month, a tiny pullback this

morning. we're waiting for the snap tradç nicole. >> i'm wearing spectacles part of the hardware. they want to market themselves as camera company. plenty of people are walking around the floor taking video with these. i will give you latest price looking around $23 a share on 50 million shares. it has surpassed the 10 million. you are seeing excessive demand. you can still see a big crowd there. i just spoke with tom farley the president of the new york stock exchange. he has been a evan spiegel and bobby finn, the founders of snapchat this morning. a lot how evan would feel today because of his personality because he is somewhat private. tom told me evan has been in a great mood. he came with his family. he came with his parent and his fiance, miranda kerr.

and his beautiful fiance, miranda kerr. he is having a lot of fun. he is eager to get back to work as well. this is part of his big plan for snapchat. this another great day for snapchat. stuart: can you tell me, nicole, we were told we would get the first trade before 11. it is now 10:47. any update on the time frame, nicole? >> they're saying before 11. original which heard around 11. i will go check again and see how close we're death. definitely it bill get loud here and people say hold the book they have to get one more order. it will get very intense closer to the open. stuart: two people shouting at me saying i want on. i want on. elizabeth is saying politics, politics. what is that about?

liz: some perspective russia and jeff sessions. nobody wants meddling about any other country about election. talk about dems to have independent counsel, jeff sessions were recused. where is the independent counsel irs what is going on there? or independent counsel into hillary clinton's emails that did not happen. now the obama preserve all information related to russia. that is what happened before obama left office. did they do that with hillary clinton's emails or irs emails? stuart: political distraction. would be my finance. i don't think it will go anywhere. won't be a special prosecutor. i don't think jeff sessions will step aside. a lot of political noise made. lots of demands. senator schummer is asking for the attorney general to resign. ashley: of course. stuart: i don't think that is going to happen. timing of this is suspicious in it comes right after a very successful speech by president trump. liz: to steal that thunder. zooms that way. stuart: that is opinion. liz: like a pr campaign rollout

the way leaks happen. to put a fine point, loretta lynch did not recuse herself, she stepped aside when fbi looking into hillary clinton's emails. this call for jeff sessions to recuse himself already? there is a lot of prejudging going on right now. stuart: while we're on the subject of snap and huge technology companies which are all american by the way i want to read you numbers. numbers tend to be boring but not these. did you know that apple is worth more than $700 billion? amazon, more than 400 billion. microsoft, more than 500 billion. facebook more than 400 billion.ç alphabet google, up more than $580 billion. i've got somebody here writing them all down. it comes to over between 2.5 and $3 trillion. that is the value of the big name american technology companies. we truly rule the world of technology globally.

they do. that's the state of the american technology. they run things! they're it. >> they run things. a number of these companies, some of the biggest revenue streams come from the cloud, the cloud business where all of your stuff, in fact you remember aws, amazon cloud crashed and a lot of website weren't working. a lot of the internet wasn't working. snap taps into the cloud. symbiotic relationship. liz: snap has billion dollar deal with amazon and billion dollar deal with google for both their company's cloud services. stuart: i'm totally confused. you have to explain this to me. explain it what is the relationship between snap, amazon and the cloud? >> the cloud is the way for all of these small start-up companies to get big fast, they don't have to have their own servers anymore. they don't have to store the content. they can let a company which has servers all over the world handle that. they can scale up as they need to.

so as they fet more users, they go, we need to rent more servers. they basically keep scaling up the cloud services. yeah. it's a great business to be in. ask microsoft. ask amazon. stuart: so amazon and microsoft -- >> and google. stuart: somewhere around the world have these gigantic server farms. that is all they do, store information. >> right. cloud is nothing but, the internet connected to servers. that is really all it is. stuart: storing stuff for me cheaper than if i had my own server? liz: correct. >> it is so hard, build a business, you've got 10 users and all you want to do is scale and you can't because you can't afford the infrastructure. now it is just a matter of paying a little bit more money, boom you've got the infrastructure. you've got the scale. stuart: snap don't own a bit of the cloud? liz: contracts it. stuart: use as bit of the cloud. >> scale up, scale down as they need to. stuart: see the mind clicking? ashley: i can hear it.

stuart: i'm very, have he close. the market really overall is not doing anything this morning. a lot of people would expect a selloff or whatever. not happening. it is dead flat. we're down 11 point. the dow by the way at 21,104. we're going to keep that little bug on the bottom right-hand corner of your screen of the left-hand side of your screen we're keeping it on the snap post on the new york stock exchange. we're waiting for what is the most exciting ipo of the year. it's snap. the market for snap is very limited. often preteens. those are the people who use this and believe it or not when that company goes, finally goes public at some point today, it will be worth $24 billion. maybe a little more. we shall see. that is what you get. that is ashley webster playing the fool. he has pumpkin on his face. what else have you got? ashley: he just ruined everything. stuart: not a pumpkin.

it is an onion. ashley: taking pictures of myself. here we go. you want the rainbow? stuart: yeah. give them the rainbow. oh, that is worth 24 billion. that's far out. ashley: what do you think of a moustache? stuart: no. >> how it does that on the fly. not a filter, it interacts with a face. that is smart stuff and that kind ever technology has money. they will make a lot more of it with some of the money from the ipo. stuart: i mean, at my age, and i look back -- ashley: that is very disturbing. stuart: or my early 20s, you couldn't imagine anything like this. >> no. but the people who use this take this for granted. the young people who use this, they have grown up with these

devices. that is the great thing for snapchat. when they do you have new features, their audience and market, pick it up immediately. they get it. so they can take them on the ride with it. if they have the money they can keep delivering the stuff as fast as possible, including what i hope are smart advertising products. that is the key. stuart: that is the key. that is just fascinating to me, to have come so far, so quickly what is available in the palm of your hand this is steve jobs, isn't it? without steve jobs, you wouldn't have these things, i don't think. >> not at this level. we wouldn't have the apps, the apps store. we had phones. we didn't have truly smartphones. we had feature phones. they did some stuff. it was terrible web experience. a device everybody loved to hold and use. but that app economy snap certainly has that to thank for this. stuart: lance, thank you for helping me understand the true

value of snap over and above the funny pictures on the screen. you point it out very well. we appreciate that. >> i'm here to help you, stuart. you and i had a long history together. pulled up a old picture of us. that is picture of you. picture of me. stuart: where is that from? >> cnn, like a long time ago. stuart: yes, ladies and gentlemen, i was actually a founder of cnn. did you know that. ashley: can you get in on that. stuart: i was the first person to broadcast -- >> that is, that's him? that's me. the. stuart:s that you. wait a second first person to broadcast for cnn on day one of the network from new york. ashley: what dashing figure you cut. >> '93, '94. stuart: lou dobbs was the founder of the business department. i worked for lou. we both went on the air on june 1st, 1980, to kick the entire thing off. a little different then. stuart: i was thinner. lance ulanoff.

thank you very much for the picture. thank you very much indeed. nicole bring me up to speed on the snap trade when it will happen, can you? >> new number is $24 a share, over 15 million shares. it is 10:56. we were staying around 11ish. it is goldman sachs they are notorious pushing back timing and getting orders in and getting it right. traders are saying don't forget what happens when we get to ipo. that is they say okay, we'll freeze the book at $24. then you get, what they do before they freeze the book, they say we're getting close. we're getting very close. we're getting very, very close. the book is frozen. hold on, more orders. i would say another 10 or 15 minutes. i know we're very eager, but so far in the crowd and looking $24

from the $17 ipo price. stuart: looking at 24. i have three market watchers tell with me. i've got scott martin, i've got steve cortes and i have got keith fitz-gerald. asç we run up to the 11:00 hou, i will go around the block again, starting with you, steve cortes, would you buy snap at any point in the next say, year? would you? >> i don't think so. i don't want to say never. if it got hit a lot, excuse me, if it got hit dramatically and a lower price i would consider it. at this price for company doesn't make money and primarily markets itself to people who don't have money, teenagers, i can't get my hand around this i love stocks on the whole. incredibly optimistic on the market. i don't like snapchat. stuart: scott martin, would you buy snap at any point in the next year? >> if it fell about 50% from that ipo price that nicole just revealed, potentially over $24 now, stuart. i think it is some attractiveness there. look at some of its competitors

are more like companies that similar. look at fit bit, twitter, look where the companies are trading on a valuation basis. snapchat needs to pull back to those levels for it to be attractive to me. stuart: i hear you. keith fitz-gerald, what do you say, would you buy snap at any point in the next year? >> i want to see profits. i want to see long-term contracts and i want to see a sustainable business model within the next year before i would even remotely consider plunging down money on that. otherwise somebody would be better suited to go to vegas. stuart: i hear the word vegas and i understand gambling. we're running up to 11:00. i want, bring you up to speed on other developments outside of the world of snap and it is first trade on new york stock exchange this morning which has not yet occurred. we're expecting it maybe within the next 15, 20 minutes. we'll see about that. backdrop, we have not had a

retreat after record high and huge run-up. the dow is down 22 points. that is hardly a retreat when it has gone up nearly 2800 point just since the election and 300 points yesterday. no retreat, that is the headline from the overall market. we have political developments. leader pelosi, leader of the minority party in the house of representatives has just called upon jeff sessions the attorney general to he resign. so has the minority leader of the democrats in the senate, senator charles schumer. he also has called upon the attorney general to resign. why? because it is reported that he held conversations with the russians after the election, and had said at his confirmation hearings under oath that he had not had conversations with the russians. so there you have it. has he been caught in a lie? or is this just a big kerfuffle about nothing? is this a political brouha as

you might say because president trump looked so good last night? is there politics or substance here? more important, would jeff session's troubles interfere with the legislative process and timetable and schedule of getting obamacare fixed and getting a tax cut in place. not affecting the market time, the market i should say. but now precisely 11:00 eastern time. that is where we are. down 22, waiting for snap to start trading. look who is with me? peter kernen. may i remind our viewers this is the man who on election night sitting in precisely the same seat, on precisely the same show, said this is the buyingç opportunity of, did you say of a lifetime? >> i think maybe. i felt pretty good. stuart: you got it right. >> one in a row. stuart: what are you saying now? ashley: one in a row. >> here is what i'm saying now. as it rights to the market, you had a major move, not a big pullback. i'm watching bond market.

because the bond market is signaling a little bit of impatience, okay, they're expecting more than ever a rate hike in march. that is good news. frankly only do that at the fed if they felt economy was growing at the right amount. what they're a little frustrated in the bond market, base of change in "trumpland." where is the tax change? where is the tax reform? where are these programs? and if they become august, september, october, the market is going to react differently than sooner. i think later rather than sooner. the divide in the republican party. you can see it. you can hear it. you can feel it in the bond market. stuart: if we get a tax cut signed as the treasury secretary said yesterday, signed by august, a lot of people think we'll have another leg up for the stock market. if we do not get a tax cut deal signed by august, and it is delayed, a lot of people think the market comes down from where it is now. you agree with that? >> i think market will be very

frustrated. frankly though i respect steve mnuchin very much, i think getting a deal signed by august when you have as much disagreement about some key element in it like border adjustment tax is going to be a real trick. stuart: this political storm about jeff sessions, attorney general, conversation with the russians after the election, said he didn't have any conversations, is that going to interfere with the market? >> no. stuart: not at all? >> not at all. stuart: pure politics? >> pure politics. the fact he did say i haven't had conversations. it appears he did say conversations. to me the real question is parsing through, did he have conversations as head of the foreign relations committee. did he have senatorial important job related conversations with russians? that is excusable. and i could see wiggle room in what he said. if he did in fact as part of the campaign have conversations, he should go. stuart: i'm very suspicious of the timing of this.

>> it is magical, isn't it? stuart: right after president trump knocks them flat with very, very good speech very well-received and market goes up 300 points. right afterwards "the washington post" comes up with that. >> as they say in the news business, this just in, this just came. we figure this out. stuart: wow, peter kernen is conspiracy type of buy. >> no i don't think have any -- liz: met with dozens foreign ambassadors. he said he didn't talk about the campaign in course of his duties. the reports he talked with the russian diplomat in july and september of last year. >> emac, what frustrates me said i haven't spoken to the russians. i was really watching, wishing for another sentence. liz: in the confirmation hearings, that is what chuck schumer is saying you misled us. ashley: he said i never met with

any russians and i don't know where this is coming from. he was very adamant about that. stuart: he said it is false was his expression. liz: why be adamant bit. stuart: iç agree with you, pet, i think this is pure politics. i don't think it affects market at all. in last couple minutes we started to move down a little bit. i'm not sure why. we're down 34 points. that is not a selloff or retreat by any means but it is minus 35 on the dow industrials. now the other story of the day is clearly snap. going public today. not yet traded publicly today. they're working on the price. at what price should it go out to you and i. at the moment it looks like around $24 a share. the offering price which the insiders have gotten is $17. odds are had goes out today shortly $24 per share. what do you say to that, peter kernen. >> it is gameday. looking at that screen, i've

been right there in position. it is very exciting when you try to pull a book together. you have a lot of people that bought and some of the people bought at 17 what i would describe as unusual buyers. we have a lot of competing pockets of demand, including perhaps some sovereign wealth fund outside the united states, saying i'm so excited about the tech market in the u.s. i will buy and agree to lock wp for a whole year. i won't sell for a whole year. that is interesting. what frustrate me a little bit, they left retail with very little stock to buy. stuart: that's right. >> they will have to come into the after-market. that will take this from 24 where it opens to a much higher number. to

$25 a share a $35 billion valuation, talking about $40 billion valuation. my advice, i love working with people who watch the show. do not buy the stock. 80% of stocks going public traded below the ipo price, give yourself time, don't chase it. it is not worth $40 billion. stuart: how directly what pe si screen at the stock exchange post, what are you doing? >> they are trying to build a book of business, they had to have a price that would engage these various pockets of demand. big institutions have gotten in 17 but most didn't get what they wanted. if you did but there is a built-in frustration. if you are going to float a deal out there what will happen is it will push the stock very high so

they are finding a place where supply and demand meet recent flow and there's a lot of back and forth between here is what i want to buy and they are honing it and started at 22 this morning, too low. it feels like you are trying to build something that you don't have to trade instantly to $40 so what i am going to -- on the floor. i will say this. there is a process going on to make it orderly and once they floated it, there is no more order because once people start coming in, get me snap wherever i can. that is what i'm asking people, don't buy it when you can, have some discipline, these things always come around. stuart: is a computerized? are they organizing their book, demand versus supply and price?

is that done by computer or a couple people behind the counter who say i got this, i got that, bringing it together? >> intensely computerized, reflecting demand, and that was reflected to them and a sense of how much demand is afterwords. i came in for 1000. a pattern of demand and once you understand that. and all eyes marking that, really exciting to be there because you are talking a flood of data into a few people's hands and a reasonable price to start this. it is the most fun thing there is. the most fun -- stuart: if it goes your way it

gets screwed up. >> think about facebook, the stock did not hold its ipo price, the next day it traded. and it went to $15, $17. it is going to 15, the kiss of death, 15, 138. that is why patients is a virtue. the casino, $40 billion in value. stuart: come on in. what is your comment. >> considering i was the guy who said that, thank you for that, that is very much the environment, american investors, lurking on the scene like jaws coming up. what people should be looking at

is how rigged the game is. if you are coming and as a retail investor until there's a limited number of shares you are being priced with is you can't control, buying a business for which you don't understand much and no operating history. it is better and more prudent if you were an investor to wait this out, they do come down and get your shot and not coincidentally you get your shot when you have seen what the business does. you see real profits and you can make an informed decision as opposed to the respected plays. stuart: getting close to the first trade as we keep hearing it is near. a little bit of a buzz around the crowd right there that peter has been describing. ashley: for over an hour and a half. stuart: any update? >> what do you think? nicole: i am telling you we are at $24 a share.

we are talking with people in the crowd. we have 10 or 12 minutes. we are careful with that timing. the crowd is still there. it looks timid, they are waiting, you will see that crowd, it will get louder and they will start saying we are getting close and $24 a share, 10, 12 minutes is what we are hearing people here for the stock exchange. we are on it. we are wondering about bobby murphy and evans steagall, the cofounders that rang "the opening bell" today. from the stock exchange after the bell, and they left out here

together, so neither kevin nor bobby are here now so they are not watching the stock trading action but watching somewhere else. stuart: they will be billionaires. i want to clarify something. a lot of jargon. who can get shares at $17 per share? when you say retail investors, the likes of myself, financially, and liz. we are not part of the establishment, we have not gotten in earlier. >> we are in one respect. 200 million shares, what we want to do is they are in the job of pricing the deal. the putnams and major offshore funds get enough of this, why have a lot of institutional holdings? shareholders only by in size when they can sell in size. you need broad shoulders on which to lay this deal.

it is the foundation you build with the institutional investor. what i heard is of the 200 million shares, $190 million went to institutional investors. there is some retail, 100 shares or something. vast majority retail investors have no shot, a longtime relationship, we are not going to come out today and get shares at 17. this opening number is really important, 24 is in the range of reasonable. a lot of these things explode out. twitter is highly priced, above its ipo price for two years. you look at groupon, and the ipo

price, zynga is available at one third of the ipo price, it doesn't mean you missed it forever. what you don't want to be is one of these people. i bought 300 shares, so lucky i got 125, 126 and 127, the market is flying. you are the market chasing your bid up. basically beating against your self. wait for the moment. ashley: what about this scenario? you get in at 17. you get a lot of faith in this country and you know it will pop big time. how many people get the 17 turnaround right around and sell it at $7 a share. are they allowed to? for retail investors to get in the queue >> one thing i do is 25% have agreed not to sell this stock

for a year. but 75% can and my opinion is stock is up 50%, 60%. all bets are off. you want to be a rent to you can be a renter but one thing i will say is institutional memory is long and if goldman or these firms, if you have a reputation of buying at 17 and blowing out 25, you look like a renter. if you are not a good shareholder we want people who are committed to be here to buy the after market. stuart: on a day like this when technology is the focus we bring in the big guns and therefore, i am bringing in scott mcneely, former ceo and chair of sun microsystems. good to have you back. >> glad to be a the begun on this show. stuart: here is my problem with snap, with the big new technology companies. massive wealth creation, very little job creation, for example snap. are they worth $24 billion

roughly so to speak. they only have 1856 employees, massive wealth, hardly any jobs. what do you say to that? >> first thing you have to remember is for bobby and evan and everybody else that is wealthy, what do wealthy folks do with their money? they spend it which creates jobs, invested in other companies or their own company which creates jobs and they save it which lowers the cost of capital which allows jobs to be created or they give the money away. all four of those things, the only thing they do is give it to the government and taxes which is a total waste. and 90% waste. creating wealth is a good thing, show me a country without billionaires and i will show you a very poor country, show me a country without billionaires and i will show you a country that can't take the risk, build

infrastructure, build cultural centers or all the other things the wealthy people do. they don't put it in a mattress and hide it. they don't eat it for lunch. they are very productive things with it so i am not worried about that. stuart: snap seems to me to be the next generation of technology companies. you are the former generation of sun grow systems. the new guys in town. what do you make of snap as investment, a company, technology leader. what is your assessment? >> the biggest challenge is how to monetize it. there are ways of getting some new and interesting digital campaign experiences into the environment of snapchat, something like experiences, snapchat would be a valuable monetization model. the bigger issue is things that go up fast can go down fast and

the younger generation doesn't have the loyalty to the technology and a lot of the content on snapchat doesn't strike me as absolutely critical and have a shelf life of a banana. looking at things like linked in, the relationships are kept for a long time and a lot more durable and that comes easier to monetize. i worry about snapchat, this content disappearing, grabbing first party data, not just disappearing. stuart: we have been fooling around with snapchat, you get a funny face, devil's warns, a tongue that looks like a rainbow or something which i have a hard time saying that is worth $24 billion. even if you could monetize some

of the fees. >> at the breakfast table this morning while watching your show i said what is this thing all about to do everybody uses it and i go for what? just to chat, to text. i go i can text. it does pictures with why would you want pictures? my buddy hit a ball two feet from mine and we took a picture. do you realize the opportunity cost of creating that picture, syndicate, wasting your time for that? he smiled and said i don't use it. the real issue is using linkedin as a social networking environment has real value and provides value and microsoft has something valuable there and advertisers -- stuart: hold on a second. hold on a second. i want to go to nicole. i'm hearing a lot of noise, some shouts and cheers. what is going on? nicole: it is open, 24, getting close and all of a sudden it opens and i told you a lot of

activity and a minute ago a lot of crashes, and all these traders will come pouring out behind me, $24 a share so 42% of that is up $7, $.36, 2436 per snap, already at $31 million -- the guy who gets the price here, the specialist who is a designated marketmaker talk to goldman sachs and says you finally got to solidify goldman sachs talk to fidelity, wellington, vanguard, now it is open. stuart: peter kiernan, you have been at those posts on this kind of day. what just happened? >> this is the price we are going to float, and a great company in silicon valley loses went up a little, down a little

and over the time it grew. people are going to look at this, where can i get in? you have a lot of demand chasing this deal right now. people say it is twee 10 times oversubscribed, people fighting for allocation. if i won 1000 shares i want 10,000 hoping to get filled and that is rarely the case. the demand is overblown. this is trading so far. looks like 24 is a decent price, not running away from us. you want to -- >> not quite a pop. a nice move up. >> the fire hose what you don't want is a pop immediately from 24 to be 44. >> 8 billion plus, each of them. that doesn't count the extra stock they should be getting in

the form of options, 8 billion right now. >> if you things about ipos, stock has gone to $25 a share. you wouldn't buy it at this price, would you? >> how many insiders on wall street, i wish i posted the new shares on the sun microsystems stock and sold them directly to the buyers without the intermediate her's taking all this money and unfortunately the and the swamp creates a regulatory environment that all these people have to be involved. and all the rest of it if you sold on your website, ebay or amazon, all the middle men would not be taking the money away, people who are providing the investment dollars and individual investors in the

company would be able to take these actions. stuart: i think i would stay private. >> the biggest issue for evan and bobby is employee morality is going to track 100% in correlation with the stock price and it will be a more difficult environment to manage personally. i went through the process and we tracked stock price and they were on the same chart. stuart: what do you have to say? >> if no business results -- stuart: what kind of america are you? peter? >> if you look at penetration of the 14 to 24-year-olds in the united states they have 70% market share so the question has

got to be what do you do with the rest of the world for what do you do with the rest of the age demographics? if it doesn't trade up like facebook is, adults and people all over the world, have a hard time sustaining at $25 a share, $35 billion valuation. $400 million in revenue. stuart: i know you got to go but do you want your last word on this program to be short snap now? the change i am all about opportunity but also viable business. when i started here companies went public because they had viable businesses that need capital for expansion. now they are won and done and want to cash out. everyone else is left holding the bag like a wild frat party when guests are still coming and everybody is going out the back door before the police arrive so my last words are be cautious and make it what you wish for.

stuart: i remember those days. great stuff. i am interested, looks like two separate events, the overall market coming off of a great big rally, not coming down very much 30 points and on the other side, the snap ipo which is priced $24 a share, finance 17 trading at 24, up 35% and they are not related at all. >> a separate market and what you are creating these if you want to create a separate universe if you can and have competing pockets of demands, trading all day today because a lot of people are waiting and seeing, other people say if you give me x million shares. i will support it in the aftermarket and we are waiting to see the aftermarket's support.

look like a 24 price was a decent place to lay the soap in the water. what i worry about here is some crosscurrents. a last quarter of growth slowing for the users. there are users who as a matter of routine go on snap 20 times a day. that doesn't mean they will go to 30 times a day. they have massive penetration, we know how loyal the millennials our. these are things to be concerned about. liz: we talk about another issue. and the worst in eight years. as sleepy as it was in 2009. and under this administration, going to lift that rats nest,

sarbanes-oxley, into the market as a new company, like jumping into a pool of live hairdryers with all the rules of regulations that are piled on. the snap ipo will finally unleash the ipo market for 2017. >> right out of dickens, we had a route. the tech ipos, $8 billion -- ashley: a lot of pent-up demand. something exciting. they are an awful lot of great companies. the enormous costs of compliance. it is barely worth it to go public. there used to be an avenue that you could pick and now you can't, getting rid of that will open the doors. stuart: i know you have to go. i want to give the last word to

you. predict the price 2436, the predicted go down by the end of the day? >> first of all they underprice of, 17 out of 24 and i would be angry at my baker for underpricing if the idea is to raise capital. the price-earnings doubles of a lot of these companies out here are very hard if you do the value, cash flow, and i don't know how they were. there's a lot of vegas involved. i don't go to vegas. the house takes a big cut of it and i would invest in things i know have loyalty, real are to be. a real monetization model a challenge for the founders to keep this going. stuart: both are worth approximately $8 billion.

pushing $9 billion. stuart: that is america. scott mcneely, good stuff, thank you very much indeed, no relationship between the snap ipo, 43% and the overall market which is down 32 points on the dow jones industrial average. >> one of the things that is happening is they are thrilled at the reopening of the market that has been dormant, you look at the last we 10 big high tech ipos, 80% of them traded down over the next 12 to 15 months. over a decade, 67, two out of three ain't bad. we get another chance but don't

rush today. stuart: it is comparable research group. i don't know who they are. initiated coverage of snap with a sell rating with a price target of $10 per share. the pivotal research group. >> clean energy. the godfather of the power purchase agreement blues not sure what that is. the solar industry finally has a chance under president trump and that man, this is a total change of subject. we are talking at the market off of a huge rally. donald trump, president trump is good to the solar industry? >> hopefully what donald trump

is going to be good for is the energy industry. if he is good for the energy industry, he will be good for the solar industry because the real issue we are facing today is actually a lack of demand in the face of too much supply. the solar industry has grown by leaps and bounds in terms of volume, installations was number one globally, number one in the us. the problem is the price signals aren't there for anyone in the energy industry including solar. how do you solve that? you have to do two things, you have to grow internal demand through a more robust economy and focus on exports. we start exporting more call, prices start rising at that will be good for everyone including solar. stuart: the solar industry -- >> part of the energy industry.

stuart: he wouldn't be doing -- a lot of government. >> the way i think about it is the energy industry is littered with -- stuart: i'm talking solar. you are telling me trump is good for solar? >> in my article, recommendations to actually help the trump administration think through what is good for american energy including solar. if donald trump focuses on all of the above policy, a true one, not leaning towards fossil fuel, not leaning towards clean energy and president obama leaned towards clean energy. if he focuses on all of the above, solar can compete vigorously against all the other forms of energy. the problem everyone has is this simply too much energy and not

enough demand for energy. stuart: that of a fair point, what happens to the solar industry if you take away the tax credits? >> i don't think the government should. stuart: don't care whether it should or should not. >> on the other hand wash of the solar industry suffer a loss of subsidies and natural gas for the coal industry and oil industry get is of these? stuart: nobody writes a check to an oil company, that would be a subsidy. everybody, the government, writes checks for the solar industry and that is a subsidy and if you take that subsidy away, solar doesn't look good. >> what is happening in the solar industry, the way the solar, quote, subsidy is designed is self liquidating. what happens is a credit on a tax return against investment. investment per megawatt is going down dramatically. what congress agreed to in december 2015 in exchange for enlisting the oil export ban is a self liquidating, quote,

subsidy or credit. it goes down to 0. it is already happening that the subsidy is diminishing because the cost of solar is going down. there for the subsidy is going on. stuart: we have solar stocks on screen, for solar, power, etc.. you are not in the stock recommendation business but should i buy them? >> i would stay away for now but i would wait to see what is happening. and wrote an endorsement of his position. he has been a great all of the above governor. if he focuses on all of the above as energy secretary i think it will be good for everyone including solar. stuart: good for america too maybe. welcome to the program and thank you very much for being with us. now show me the big board because we dropped a few more points, we are down 57, 58

points putting us at 20,050. the market has gone down since snap started trading. not suggesting there is a relationship between the two. it may be former speaker nancy pelosi's call along with john schumer's call for attorney general to refine because of complications with -- paul ryan is talking about this right now. we want to listen in briefly. >> the result of that investigation before the inauguration, house intelligence committee just finished coming up with his oversight plan to continue investigations which we will always make sure we are protecting our sources and methods and getting to the bottom of any of these things. we have been presented with no evidence that anybody on the trump campaign was involved including with the russians.

and an effort to keep it locked. stuart: we lost the connection with paul ryan. he was talking about the russia problem with the attorney general. fortunately he just walked into the studio, is sitting with me right now. judge andrew napolitano, he had a handle on this. i know you are up to date. former speaker nancy pelosi calling upon the attorney general to refine. minority leader in the senate john schumer calling upon the attorney general to resign because of conversations he had with the russians which he said he had not had. without getting into the legal rigmarole where do we stand? should he resign? judge napolitano: absolutely not. he has stated to another network when it into his vehicle on parking lot somewhere in washington dc that he understood the question from senator

franken to mean did you have any conversations with the russian ambassador about the campaign and when he said no that is what he meant. that is perfectly -- i have watched the q and a between senator franken and senator sessions until i am. in the face, eight between 9 times, it is a perfectly rational conclusion from the context of the q and a that that is where the question was about, did you talk to the russian ambassador about the campaign, not did you ever talk to the russian ambassador about anything because jeff sessions, the senior senator from alabama at the time was wearing several hats which he was a member of the judiciary can become a member of the armed services committee, he was in an environment where senators regularly meets with foreign ambassadors. stuart: this is my opinion. this is pure opinion for me. it is a political confection cooked up because the president looked at the other night with his speech. judge napolitano: precisely.

does anybody think jeff sessions sat down with the russian ambassador, can you help us beat hillary? this would be preposterous that somebody of his standing would do something like that. that is the implication in what nancy pelosi and senator schumer have been saying. stuart: there is no evidence that jeff sessions talked about that with anybody. judge napolitano: the fbi is investigating the campaign and is investigating any potential efforts by the russian government to influence the election through the campaign. stuart: trump's campaign or hillary's campaign? judge napolitano: probably both. jeff sessions was an integral part of trump's campaign. can he be head of the justice department for which the fbi works while investigating something he was a part of? the trump campaign. recusal is not a sign of shame or dirty hands it is actually the opposite, an indication i so believe in the integrity of the

system that if it looks bad for me to be involved we let somebody else run at it. stuart: you know what goes on here? you take these allegations, demand the resignation or demand -- judge napolitano: so absurd they undercut whatever ground the two of them were standing on. stuart: you have sown the seeds of scandal. judge napolitano: they might just want to sow the seed of doubt and are succeeding in doing that at least now. this is a different story than when you and i covered it a few hours ago because of all the things that are happening. a lot of things are happening, the president is going to reissue the travel ban as an executive order. that may trump, and open intended, the story on the front page. it could turn out to be nothing or huge by next week. i would counsel the attorney general not to make a decision

now until we know more about this. stuart: in my right to be considered to be suspicious of the timing. this occurs hours -- judge napolitano: as a person or president, so dollar, this is their way of getting back -- tell her. i know it is an english word but -- stuart: very good. approve of your use thereof. our viewers are primarily investors, looking at the stock market and the dow industrials down 50 points. i suspect there is a little suspicion that the russian kerfuffle, this political developed around jeff sessions could interfere with a legislative schedule of repeal and replace obamacare and get a tax-cut. if investors feel the schedule will be interrupted by a

scandal, they will sell stocks. judge napolitano: this will occupy some of the president's time and peace of mind but i can't see it interfering with the two principal aspect of his legislative agenda, tax reform and healthcare reform. stuart: before we dismiss you from the studio. just out of interest. not trying to put you on the spot. . a lot of help on this one. can you explain what snap does? judge napolitano: a digital device by which you take a photo of your self, make yourself a grandiose the ridiculous, send it and it disappears. so i have that right? >> that was very good. when you buy the stock? >> i couldn't imagine myself as a user. it would be like a vegetarian

bike mcdonald's stock. stuart: three generations too old. judge napolitano: you would do the same. stuart: since i'm older than you are. it was very good. you were very good indeed, thank you very much. grover norquist is with us. we bring on the a team constantly on this program and grover is on our a team and we are happy to have him on the show. let's talk tax cuts because we had steve mnuchin on this program 24 hours ago saying we are going to get the tax cuts signed by august of this year, at that point the stock went up a little bit more. do you agree? can we get a tax cut done by august? >> can we?

yes. it is made much more possible by the president's very strong showing and sort of state of the union address. he made it clear he was focused on repealing the obamacare taxes and reforming healthcare and getting the tax bill done by focusing on those, talk about other things, and about immigration, there were other issues, not the ones they should do now and the focus on obamacare on repealing reform healthcare and the tax-cut really put some room behind the office of the president and the house had. >> you prefer tax cut first, then deal with obamacare. that would be your preference. >> not my preference because

obamacare first. there is a good reason in terms of legislation why obamacare, getting would've obamacare is $1 trillion tax cut. i'm for trillion dollar tax cuts. stuart: can't think of a single moment you are not in favor of billion dollar tax cut. and small business owners cincinnati. and got to ask you this. small businesses often run, personal taxation and therefore the tax-cut, is particularly good for small business. >> individual rates go to 3325, and 12. business income in subchapter s

corporations, and businesses who run through the individual rates to 25% below the 40%. and 25. and self-employed people who pay their business income taxes, the income tax. stuart: one more tax issue, the border adjustment tax. don't like any new tax of any kind. and the border adjustment tax is the sticking point for all these tax reform plans. >> border adjustable tax taking corporate income tax, a new tax.

and as part of tax reform the overall tax reform package. the trump administration coming to an agreement on is a $2 trillion tax cut, statically scored. and down here, a significant tax reduction programs and as a package i strongly support it. that is possible to pass. stuart: a nasty feeling lobbyists will be looking for a carve out for this group, preference of that group, less of a tax here. i can just see it as a lobbyist

piece day. >> the challenges the house republicans working on this bill for several years now. we had some false starts, how this can be put together, the trump administration, the house republicans and trump people and house republicans coming closer and closer together, and got this bill done, the outlines are clearly there. for business expensing, no amt, no death tax or territorial tax system, and the senate, in opposition to any of this, 11 of the ideas in the tax plan. it was more rapidly than most people think and the treasury

secretary suggestion of july is a good place to look. stuart: that is interesting. you may move the market. it is not the first time you have done that but by saying that, by july, august, we will get the tax-cut signs. >> i want to get everybody up to speed, snap trading at $25 a share. 40 points after huge run up yesterday. i will not call that a selloff by any means, the dow well above 21,000, that is the stated play on the market. peter kiernan with me, 30 seconds on snap, at 25-29. explain what is going on.

>> $35 billion, people -- is up 50% from the initial underwriting price, a huge move. there are people who are selling here because that is plenty, 50% has been great, you are in at 17, up to 25, good enough for me, i think the stock is top. if it goes up from here it is not smart money. ashley: you would sell. >> i just did. i just did. ashley: more shares become available. stuart: the two founders, how much are they worth? >> $9 billion each not counting their stock compensation we don't know about yet. >> it was tied up in stock, paper gain but one of the things we should say about the stock that offends me is shares that have been offered have no votes,

there are three classes of stock, two people have 90%, the existing investors have one vote and if you bought stock today and you will that you get 0, no vote for you. it is arrogant and objectionable. stuart: it is reality. >> the sec, i don't like this no vote. don't mind if there are heavy voting. look at facebook, zuckerberg has 52% of the vote and two guys, page at google, 54% but the guy who runs zynga has 150 boats for everyone in these heavy things, entrenched management, arrogance and wrong for the investor. ashley: fascinating but it would take legislation to change that. >> nonvoting stock, i object. stuart: 25, 35, all of this 50%, state of play, there you have it. next case, ed lazear is with us. you are a stanford graduate school of business professor,

former chief economic advisor to president george w. bush and establishing your credentials and they are valuable indeed. i know you want to talk about achieving 3% growth. let me turn this around with got to talk about the tax cut. it is what i care about. are we going to get a tax reform bill signed by august, the treasury secretary said on this program yesterday? >> i don't know if it will be signed by august but we better get a tax reform bill. stuart: i got to know. are you doubtful? >> it may not be august. it might be the end of the year. the key thing is to make sure we do it this year. that is one of the key ingredients that is related

around 3% growth, the only way to get there is by making sure investments, and that cause productivity to lag. without productivity growth, without getting to our previous level of productivity we are not going to get the kind of growth we have had in the past. 3% growth is not unusual. that is the norm, not the exception. that is what we had before 2007 for 30 years was no reason we can't get back there. stuart: i am going to interrupt. i do apologize. i am a simple kind of guy. if we do not get a tax-cut package this year. i take it we do not get 3% or 4% growth next year.

would you say that? >> it would be very difficult. in order to get productivity back up. that is the key. the growth rate is the sum of two things, productivity growth and labor growth. productivity growth historically has been 2% but over the last 7 years it has been 1% so we need to double that. how do you do it? essentially the only way to do it is get the kind of technology, the kind of research and development, the kind of capital formation we had in the past and the best way to get there is to make sure we cut taxes and all tax cuts are not equal. the most important tax-cut for the purpose of economic growth is cutting taxation on capital, cutting taxation on investment. my favorite way to do that is have full expenseing instead of lower corporate tax rates, lower corporate tax rates work but they work on a slower basis so i

would go for full expenseing, immediate depreciation, carrying forward allowing business to conduct what they invest and you will see the economy grow. stuart: you are totally wrong, you understand you are totally wrong, the most important tax-cut is for individuals so you can put more money back in the hands of the people who make it and will spend it and invest it properly. i have won you over. >> i wish you were right. unfortunately i know the evidence better than you do to be honest and the evidence is pretty strong on the investment side. stuart: can i jump in again? >> i would love to see personal tax cuts as well. i'm not opposed to those but if you are concerned about growth you need to think about the capital side. stuart: bill clinton reduced capital gains taxes, bill clinton cut capital gain taxes didn't he? >> absolutely. cutting capital gains tax is a good thing, a step in the right direction, part of the package.

there are a number of ways to stimulate investments, not just one simple way to do it but the key is to keep your eye on the ball. as he reported frequently, i watch your show every day, we know that this is a period during which capital has not grown at the rate we have seen in the past, the kind of rates we need. to get that to happen the tax side is 90% of the story. that is why i focus on that. stuart: you watch the show almost every day. are you flattering me deliberately? come back anytime you like. i am very pleased to hear that because i know your background, you are a powerful guy. it is great to hear you watch the show even occasionally. seriously. seriously. thank you very much. come back anytime you like. coanchor the show, why don't you? thank you.

what do you say? >> one of the things that make me sick about this conversation is it fe my opinion, if you think about our country, we're net importers. we had a trade deficit, buy more things overseas, than we export overseas. what that means is, goods that come in from overseas will be more experience sieve. the corporations will not eat that additional 20%. that comes right out-of-pockets of individuals. i think it will directly hurt the middle class. it's a huge mistake. if we sell the middle class short to get a tax bill through, that is bad for usa. neil: i think it is politically impossible to get that through. >> you heard grover. you heard momentum about the border tax. people who say do it, don't understand how trade works. it is invitation of fistfight. if you charge china 20%. they have a lot of ways to get

back at you. we're creating a whole tax bill with border adjustment tax. that will hurt the middle class. neil: this. stuart: this is exactly what we do. political from leader pelosi anç leader schumer in senate that the attorney general of the united states resign because he had conversations with the russians after the election. he said he did not have those conversations. that is a political turmoil. a political fight. i don't believe it is intruding on to the other story of the day, the other big one, which is the overall stock market. no retreat after that whopping great big rally we saw yesterday, and we've seen since the election. we're down only 40 point. you can't tell me that the russian i am breault yo is causing any kind of selloff on wall street. it is not. third and final story, and this is a big one. it is snap, the disappearing app.

it went public today. that means you can buy shares in it for the first time. you can buy them about an hour ago. they were offered at $17 a share. promptly went to 24. now we're at 24.95. ashley: the high was 25.42. 106 million shares have been traded. stuart: that you would expect, peter. >> half the deal has traded already and it is not even noon. it was not open at 9:30. to me what is really interesting is, facebook tried to buy snapchat two years ago, for $3 billion. they were turned down. now it is worth 35 billion three years later. i think they made the right choice. stuart: evan spiegel, go founder with mr. murphy, bobby murphy. they're both worth almost $9 billion. liz: paper gains is options, restricted stock thrown in there, other compensation. you know i think facebook did

well buying instagram for a song. >> they paid a billion dollars for it. they are one, one of the things we haven't really talked about, that is a great point, these ipos come out with no competition. facebook whats everything snap does, then they are imitating it with instagram. so the instagram has stories. what you got is, snap coming out with an arch rival, a big, powerful rival. stuart: investors beware. i'm saying that because snap is close to $25 an a share. the offering price was 17. so it is way above the offering price. i think we have a list of other companies which went public. ashley: tech flops. twitter, ipo price, yesterday's close, 15.79. gopro, 24-dollar, 9.42. fit bucks 20 bucks. 6.25. groupon, $20, 4.26 dal as of

last night's close. stuart: those are bad examples. ashley: shows you what can happen. >> groupon, 80% off sale. stuart: thank you, ladies and gentlemen, thanks for a great coverage. liz, ashley, peter, thank you very much. neil, it is yours. neil: something going on with snap? stuart: so i was told. neil: incredible. i was hearing your dilemma. you write letters and write notes. i write letters and notes there. are really no stocks for us. stuart: no. neil: there is a company called mitsubishi pencil. it makes pencils and pens, true. something you and i might relate to. americanç carriage company, thy make -- stuart: got it right, american carriage company makes buggy whips. that is why i invested with them a long, long time ago. neil: telling you it is diversified. you can buy its products on the internet. and there is crain stationary. the