always say, leah. thank you for your service. >> thank you, and thank you to those who serve who are watching us and to their families. dagen: absolutely. have a great memorial day weekend. "varney & company" starts right now, mr. charles payne, it's all yours. charles: thank you very much. have a great week. i'm charles payne, stuart, is taking a break for memorial day weekend. he'll be back on tuesday, but it's another big day of politics and for your money. no stopping these markets right now. s&p and nasdaq closing at all-time high and the dow in the shadow of record territory and looking like we could probably have a little bit of a cooling offer, slightly lower opening for the market. nevertheless, it's been an amazing run in part because amazon and google, two big names that you know in a neck and neck race for $1,000 a share. there have been no stopping the big tech names. you can see them make history, perhaps, on this show today. hey, to politics, tensions building between the united states and u.k. after the new

york times leaked photos of the manchester bombing scene. president trump and u.k. prime minister theresa may meeting again this hour at the g7 conference, we are going to bring you the headlines as we get them in. mark zuckerberg got political at the harvard speech. he's talking free money from the government. we've got a big show. "varney & company" starts right now. ♪ . charles: we begin on a devastating note where a bus of coptic christians. ashley: at last count, 23 people killed and wounding 25 others, a bus 140 miles south of cairo, they were headed to a monastery and attacked by eight

to ten individuals dressed in army fatigues. isis, no one has claimed responsibility, but isis has been targeting coptic christians several times in recent months. there was a terrible bombing or bombings at two churches in april that killed 46 people. an indication how coptic christians are targeted in egypt. charles: so far no hash tags from the media. looks like a lower market. here is market watcher jeff sicca. all right, what can stop this market rally? >> i think obviously with google and amazon, it's going to give the market the fuel to move up. there's optimism, a call for optimism. one thing we have to be aware of is we have a market that's continued to make historic highs which means there's going to be a greater, greater expectation of perfection, so

any little setback could bring this market down because investors at this point really need an excuse to take profits. so, i don't think the threat is great, but the threat is always there. charles: are you concerned about leadership? it feels like there are fewer and fewer names actually leading this market rally. i think five names responsible for 30% of the move. we talk about them almost every morning. is that a concern that beneath the surface it's not as rosie as the headlines? >> yeah, that's a major concern because you have investors piling into the few stocks and you have a lot of the other stocks being avoided. you also have a lot of optimism. i've always believed that, if this market has been fueled not entirely, but partially on low interest rates and fed policy, and you have a lot of expectations that the trump policies, the tax cuts and obama reform, are-- obamacare reform are going to come to fruition. at this point you have a market that's priced to perfection.

you have minimum leadership. you don't have as broad of a rally as we should have, and that causes me concern. we'll come back to you on that. we talk about the big names, amazon, alphabet. it's fun to watch. we know the market capitalization are different, but which is $1,000 a share first. >> my bet is on amazon. i've been a fan of amazon for a lot of years. i think at that amazon, from my perspective, amazon is showing that they could open up multiple silos to make money. i think jeff bezos is about to become the richest man in the world today and i think what it comes down to is that amazon has a leg up on google. google is a great company, but amazon's an even better company. charles: amazon is unmitigated juggernaut and i love the fact that they take risk. speaking of taking risks, facebook's mark zuckerberg floated the idea of national income while he spoke with

harvard grads. roll tape. >> it's now time for our generation to define a new social contract. we should explore ideas like universal basic income to make sure everyone has a cushion to try new ideas. charles: joining us, fox news contributor, what's your thoughts on that? >> you're talk to go a mom who doesn't believe in allowances for breathing. he think my kids have to would, for what they want. a lot of times when everything is on the line that's when people do their best and work harder and create that grit. the most sad, rudderless, directionless people i've met are people with trust funds. so i think that guaranteeing people a salary is not the way to go. charles: well, the argument that he is making is that he knows a whole lot of people who have amazing ideas, amazing potential, but they are so afraid of losing or missing that they can't take a chance.

they can't take a risk. some of them make x amount of money and some don't. if somehow we were to empower them ultimately it would benefit all mankind. >> if their ideas were so great they'd have investors behind those ideas or funding. i don't believe that. you see it in politics, the best candidates go out and sell themselves and get people to invest in their campaign. it works in all of these facets. charles: this isn't something new. something i've studied before: one or the other angles of this from a social point of view that we should have a society where people feel better about themselves where people feel like they're included. is there any merit to that? hey, you know what? if i get up in the morning and i know that i'm getting some money and i feel better about myself, it's all worth it? >> i think the role of government is to create an environment where people can help themselves. where people can lift themselves. so there's ladders of opportunities, make the environment so people can start

businesses. one of the things you brought up about finland. people are becoming addicted to-- they've experimented with this idea, by the way and they just don't want to let go of it. and we see it all the time in my own district where i live in wisconsin, a lot of employers saying, hey, i'm competing with the welfare checks coming out. people don't want to take the jobs because it's just-- it's pretty comfortable to sit there with the welfare check and not work. charles: so, it's ironic, if finland they said that the welfare is so good they'd rather give em this income and keep it if they get a job, too, so people don't think it will be taken away from them. in this country there's talk of welfare reform. maybe we should go the other direction, instead of making it more enticing, perhaps, i won't say not to work, but make it more comfortable when you're not working, maybe put more pressure on folks? >> i think when people aren't working that, when they lose their self-esteem. your dignity comes from your

work and i think that that would be the wrong direction to go in. i think the american system has always worked pretty well and mark zuckerberg, you know, i think he should probably move to finland. charles: you think maybe he should-- think he should step up and giving away some of his cash. >> absolutely. maybe what he can do, he wants to use the h1b program, and raise wages of american people instead of importing all of that cheap labor. charles: i'll make sure he gets that memo. thanks a lot. [laughter] you might have noticed gas holding in pretty good 2.37 your national average, this as people get ready to hit the red for the holiday weekend. i want to bring up gasbuddy.com. all right. we're talking about, will there be pain at the pump this weekend? >> not a whole lot, charles, surprisingly. much similar to last year, gas prices have remained relatively cool. it's kind of exciting for once. gas prices haven't made a huge

jump at the springtime. we're used to talking about how gas prices are spiking and spiking and they jumped 50 cents between the start of last year and this year and this year, gas prices are only up four cents since the start of the year. a quiet spring and a lot of motorists hitting the road as a result. charles: we had a big run in oil recently and it's always interesting for people because when it goes up, it feels like goes goes up faster. and i know you get this question all the time. is there a mechanical reason for this? or is it just what some might call corporate greed? >> the markets are moving like you watch. they're up and down. and they lag both ways. just as yesterday's drop probably won't show up, because the increases haven't shown up either. there's kind of a three to five day lag depending on the severity of the oil and gasoline futures. so we'll start to see that maybe next week, so long as oil

prices don't increase between now and then. charles: all right the patrick. i need you if you can to stay right there. i want to get more from you in a bit. police in the u.k. carrying out raids after the attack in manchester. we'll have details for you now coming up. >> sure. >> also, you remember this phone. take a look at this. that's a nokia 3310. might have been the first cell phone you own. guess what, if you're nostalgic, fonokia is bringing t back. it's for sale in europe. we have he got one on the set later this hour. you don't want to miss this one. our own maria bartiromo scoring a big interview with the one and only larry summers. well, we know he's not a fan of president trump's budget, but he is something of an economic big wig. you want to watch this tonight 8:00 p.m. eastern on wall street week. in fact, here is a snippet. roll taste. >> it's the least economic budget in 40 years.

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> >> costco's profits boosted by membership fees and u.s. sales. anytime you can charge more, it goes up. big lots were helped, of course, with margins and they had lower costs and that stock having a good day today. i want to get back to more on the manchester terror bombing. what's the latest? >> well, we've had ten people arrested since the bombing, two have been released a 16-year-old boy and 34-year-old

woman. remaining young men aged between 18 up to 38. i guess 38 isn't is young man. all in custody and suspected according to manchester police of terror offensive. they're still working on the assumption that there is a network and they're very, very concerned that more bombs are out there, more attacks and that's why the threat level remains at critical. as you can see here, police patrolling on board trains nationwide, the first time you've seen anything like that. by the way shall the british intelligence and police are now resuming their intelligence sharing with the u.s. after it was suspended over those leaks. and they were asked very cand candidly, whether they knew the suspect, salman abedi. telling the bbc that abedi was subject to review. frighteningly he says there are 12,000 subjects to review. charles: 12,000. ashley: that's very disturbing. charles: thank you very much. back to egypt.

we have horrific news. gunmen attacked a bus carrying coptic christians. joining us general keane fox news analyst. general keane, this is heartbreaking because it's happening more often and it feels like the world has turned their backs on the christians? >> certainly one of isis' main targets are christians and jews, the truth is they fill far more muslims than non-muslims. this is actually trying to undermine the government, to show all egyptians that sisi is not able to protect those in the country and there's discrimination of the capitopti ch.

sisi has them in the jail house. and more specifically to isis. charles: no, what does sisi do? we know it's an obvious threat and they've had the terrorists have been extraordinarily successful in harming these coptic christians-- >> he's declared emergency law again which has been going on for months in egypt and i don't think it has much impact on the people. i think probably what he's going to have to do is clearly start guarding these churches and start using his intelligence services a little bit more. he's fighting isis in a northern sinai, which is really an old tribe not as closely connected to isis. this movement inside of

mainland egypt, into cairo, the suburbs of cairo, this is connected to al baghdadi. they totally and completely recent what he's done in opposing the muslim brotherhood and taking the country over. charles: i want to switch to politics. trump, of course, still enduring all of these leaks and, well, of course we know that the big one here more recently with the u.k., and theresa may very upset about the manchester leaks. just to what degree are these leaks undermining president trump? >> well, i think pretty significantly. i've never seen anything quite like it. leaking in an american government, part of a democracy, with freedom of the press here, something we all respect has been a part of our democracy from the very beginning. but this, with this president

is carly somethi that's beyond the pale. and i think he's taking advantage now of this because it's not about him, and will try to crack down and get to the bottom of it. and i hope he does, i mean. charles: general keane, what does a crackdown look like? because, you know, is it naivete that only potential culprits could be obama holdovers, and bureaucrats. and not someone close to the president? >> we're past those kind of leaks. this is probably people in the government who are civil servants in the government or professional staff in the government and clearly there have been people who are leaking who are part of the president's team, they leak, you know, for political purposes of their own right inside the white house, but this leak is probably from the counterterrorism organization in the u.k., who routinely reports back to our counterterrorism organization

that's hosted by the federal bureau of investigation, but all of our intelligence services and major law enforcement agencies are represented there. so, it's impossible from the outside to kind of theorize who leaked here, it's more than intelligence services. law enforcement is involved in receiving information is the point i'm trying to make. charles: i get you. >> and it's important for the department of justice to get involved to try to track it down. and it's hard to do. obama probably ran after leaks more than anybody prior to him. he didn't have success at it. charles: and president trump may have to bring out a big broom, and may have to start with his closest aides. have a great weekend. >> you, too, charles. charles: and pressure on the market, but not as much as earlier today. we may open flat, but the bias

has shifted to the upside. a gas buddy survey, and travelers, say their the b biggest fear is not running into traffic, it's finding a clean bathroom. in case you have to make that pit stop this memorial day weekend, he's going to be back next with us. ♪ you know how painful heartburn can be. for fast-acting, long-lasting relief, try doctor recommended gaviscon. it quickly neutralizes stomach acid and helps keep acid down for hours. relieve heartburn with fast- acting, long-lasting gaviscon. and helps keep acid down for hours. usaa gives me the and the security just like the marines did. the process through usaa is so effortless, that you feel like you're a part of the family. i love that i can pass the membership to my children. we're the williams family, and we're usaa members for life.

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>> we told you about the gas buddy survey. 64% of response -- respondents said the worst fear is finding the bathroom. it's qt foa lot of the folks in the south a familiar brand. out west is chevron, pricingly. in the northeast, sheetz and wa wa. where you're going to go number one and number two. and it's a battle where people feel comfortable. hitting the row -- road and not knowing where to stop and the hollywood movies, it's dark and skiy. getting a key on a mini plunger is carey. charles: it is, i've had my share of experiences unfortunately. thanks a lot. we appreciate it. the market's going to open in less five minutes.

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>> the opening bell is going to ring in less than 30 seconds. remember, we saw this week the

s&p join nasdaq, both starting today at new all-time highs. a little bit of buying exhaustion, if you will, and also remember, there's anxiety going into a three-day weekend and makes this a perfect test for market bulls. if you really love this market, you won't sell. in fact, maybe you'll buy into the close, but we know it's something of a lackluster start and the opening bell going off, down, officially off in the teens, 16, 17 points. not a lot of big news with the big 30 names of the dow jones industrial average. a great week for retailers of all names, they've come out of nowhere and done extraordinarily well. i want to check on the s&p 500 as well. again, yesterday was another new high for them. giving some back right now, but that's not a lot considering how far this index has come this week and of course, this year. and then there's the juggernaut. the one that's killing it all. there you go, of course, nasdaq has been powered by two amazing

names, amazon and alphabet. now, neck and neck. it's fun, it's a parlor game, perhaps, at this point. which do you think will break $1,000 first. joining us now, ashley webster, jeff sica, steve cortez and scott shellady. all right, guys, the market a record territory. steve, does anything stop the market from here? >> the only thing that would stop is the market is capitol hill. if they don't get moving when the president returns from the trip. we need to see progress on the health bill and the tax bill. if we see major stumbles, we could see market tremors as well. charles: we've got the cbo score. i didn't hear much at all. there were no g.o.p. pompons, no sense that the needle moved, no sense of mission accomplished. did that help or hurt? >> you know, i think it helped. i do. but you're right, there's not much celebration on capitol hill. i've said this for a long time.

trump is as much-- not so much as republican and democrat as it's the country against washington and i hate to admit this, but a lot of republicans on the hill i think are very interested in preserving the washington establishment status quo. i don't think they're going to be able to. i think that trump wins in the end, but it's a real fight. charles: let me ask you, scott, about stock market status quo. new highs beget new highs and you're a trader, do you think there's enough momentum to keep this thing going? >> i do and slowly, but surely. i've been a negative nancy here for a while because i haven't thought the economy was really doing the work it had to be doing to catch up with the sentiment, but slowly, but surely i'm starting to see those green shoots and with earnings, and if what steve said is true, we can get some movement on capitol hill, yeah, we're going to start to see these things come in behind that stock market and keep it elevated where it's going and maybe give us another leg higher. i don't think that it's tax

cuts in itself is going to shoot us through the moon, but it's definitely going to be a stabilizing effect and if trump can get rid of the garbage behind him when it comes to these leaks, yeah, i think the stock market will be healthy and a place to be in the near term. charles: jeff, you've always been a healthy skeptic. the rally, highs beget new highs, and things on the economy side that i think so this are getting better. what should be our number one concern? >> the concern is that you have these five stocks, you have these five stocks that are driving the market, you do have other stocks moving up, but predominantly this market has been driven by the five leaders you need more leadership and what i see, there's nothing more important than psychology in a market. and what i see is when you have a few stocks making consistent highs, but others being virtually ignored, that's the sign of coming to an interim

tomorrow top. so we've been on a rally with a market that needs a break, an excuse for a break. charles: we'll find out if that happens. two reasons it hasn't happened. amazon and alphabet. both of the stocks, look at this, 991, 988, that's a horse race, to thousand dollars. which hits it first? >> i've got to go with amazon just because i like-- they do more than just, they're not just a retailer. i love a wiws. amazon web services and i've got it put my money where my mouth is, but i feel as though they've been a disrupter and they're creating a new economy, not changing the economy. charles: steve, amazon is going to open up a distribution center at my house i've got to own the stock. i mean, really, it's crazy. they dominate everything, don't they? >> right, i hear you, charles.

this isn't rigorous analysis, but a package arrives at the house every single day. from an analysis perspective, what amazon has done is create massive barriers to entry in my business it enters and wall street has been harsh on amazon they've been more interested in creating barriers than near-term profit, but long-term the market is starting to speak, the stock market, it believes in the long-term strategy for amazon, it's a juggernaut. >> it is without any doubt. jeff, listen, these stocks are, to your point. they have been unstoppable and there's a sort of element of herd mentality. there was a time occasionally amazon would get hit or hammered if they would miss earnings. ashley: shareholders were

looking at they're reinvesting in projects and now turns out it's a good move. charles: the investors are okay with the paradigm, build the company and don't worry about the bottom line for now? >> it the confidence in jeff bezos and his ability to innovate. back when amazon established themselves and a just selling books, a lot of people denied he had the model and now they know he has the model and his goal of being within 24 hours of 80% of the population opens up limitless possibilities for amazon and people have to recognize that. charles: well, you just talked the stock up. it was red and now it's green. keep talking, jeff. we may hit $1,000 right now. facebook chief mark zuckerberg is floating the idea of a national income. what do you think about this one. >> one of the interesting words mark used, he wanted us to have a cushion. whenever i hear the word cushion, and knowing that's the

u.s. government, that concerns me greatly. where is the incentive to work and achieve. i don't think that a system that has that type of a plan in place could lift up a guy like mark zuckerberg. so, i think it's a very bad idea. worked in finland will not work-- maybe would work in finland and not work here. ashley: when you're a ga zi zilli zillionaire-- >> scott. >> it took me a long time to figure it out. at the end of the day guys like zuckerberg, the liberals are not concerned about defeating evil, they're more can concerned about creating equal. they want everybody to be equal they don't care about evil. the words sound the same, but they're 100% different. he's more worried about people being equal rather than fighting evil out there, and

that's the problem with guys like that. charles: more from zuckerberg, he tells the grads, that automation will take over and it's up to the millennials to create more jobs. >> he's got a point here, i don't like most of what he says, but on this point he's right. our economy lost a lot of dynamism it had in the '80s and '90s in terms of business and i think that's because of taxation of the government. and too much of our economy is concentrated in existing massive firms. so i think he has a serious point there and it's up to young people and we, grouchy middle aged people like me love to rip on millennials all the time. one thing i will say about millennials and i can generallylize is, they're creative. we need to harness that creativity into enterprises that will create jobs. look at driving alone, if driverless trucking becomes a reality and i think it will, sooner rather than later, think

of how many people are going to be displaced who now make a reasonable blue collar living. so we need innovation to find a solution for those folks because we cannot have them off sitting on the couch making a basic income. charles: that's one of the hallmarks of capitalism even if you think about creative destruction. when it looks like disaster something out of the ashes something better happens. it's probably going to happen again. i want to check on the big board, guys. we opened under some pressure and the dow down 20. we start today come back a little bit. a narrow trading range thus far early on. i want to move now to game stop. it has strong sales, but the forecast wasn't that great which is interesting because yesterday, best buy went through the room on the gaming stocks. and the maker of, so unattractive, look at that 18% and ulta beauty salons, up

since the first team i mention it had on my show. yum! brands stores around the world, they're making a global push. not helping the shares. they're wedded so much to china they probably need diversification. and costco, if you go to costco, you love costco and willing to pay more for your membership fee and strong u.s. sales has the stock up again. big ts, the sales are down there, but the profits did beat expectations. . margins better, costs are going down. it's something of a turn around story, not necessarily a top line story. a new steady for you. electric cars, believe it or not, will cost less than gasoline as soon as 2025. all right, jeff, maybe then you could buy an electric car and able to afford one. >> no, i'm not a fan of tesla. i like to turn the key and actually hear something. i think electric cars have a place, but i don't think the place is going to be as big as people think it's going to be,

so i'm not trading in my car. charles: my granddaughter is four years old and hoping it's not going to be illegal for me to teach her how to drive some day. we'll do it out in the woods, i'm going to teach her how to drive. >> there's something american about the big automobile and hemi engine, right? at the same time i'd like to know all of these prognostication and forkers talking about the electric cars in 2025. what is a dollar gas due to change that on the horizon? if we keep discovering oil like we are in north america, it's going to change the landscape and change tesla for the long-term. i'm interested to see what cheap crude oil does to the great grandiose ideas about driverless cars? >> thank you very very much. former secretary donald rumsfeld, he's using the money making for the app to help the families of fallen soldiers coming up next. .

>> we think it's terrific, we want to know, did you write the code for it. what do you have to do with this app? >> i didn't even know what an app was until recently. i found it a fascinating game and taught it to a few people and a friend one day said, why don't we turn it into an app. and i said, terrific, let's do it, here i am a technology wizard supposedly. charles: incredible. that's really good.

>> checking the big boards, off 22 points, and remember, it's been a strong, strong week and a pretty good year, so, just a little lackluster ahead of a three-day weekend. got an interesting story for you here.

target investing in bedding. lori rothman is at the new york stock exchange with details. >> not just any bedding, if you ask any millennial, it's the most comfortable bed you could order. again,ccording to millennials. target tried to buy the company for a billion bucks and they said no thanks, but instead target is investing 75 million according to the blog, that 75 million could turn into 100 million in the near future. you saw shares of target. they opened higher, but backed off some. 1/4 of 1%. they'll benefit from the target brand, but they get to tap into the market and keep up with rival wal-mart which as you know, has main their own investment into on-line retail. charles: thank you very much, lori, appreciate it. something special for memorial day, profits from donald

rumsfelds' solitary app. secretary rumsfeld, you're a colonel. >> marine corps colonel. charles: tell us about the solitary app. we teased your interview with stuart where you took credit for coding this thing. i'm wondering if-- . there's not a chance. [laughter]. charles: solitaire, how did this come about? >> winston churchill taught it to a friend of mine during world war ii when the nazis took over belgium and the government went in exile in england. a young diplomate learned it from churchill. so in 1973, i'm a young diplomate at nato, ambassador in nato and he by then is a senior diplomate and taught me the game. it's a terrific game. it's challenging, it's strategic, it's difficult. you're so smart, i know you could do it. have you downloaded it yet? >> i'm going to. >> it's been out for months. [laughter]

>> i have never downloaded any apps, and i'm not good at coding like you. >> a million people have downloaded it. charles: a million. so every time it's downloaded does it generate income? >> yes. charles: okay. this is the part where colonel manion comes in, because a lot of this money is going to a foundation named after your son, right? >> that's right. travis manion foundation. charles: can you tell us about it. >> sure, i lost my son travis m april of 2007. so, tun years ago last april. when we lost him, my wife set up a foundation, we wanted it to be there to support our veterans and families of the fallen and the last piece of that was to help create the next generation of leader. tark does matter, it lines up well with what the churchill, not the application, but what winston churchill was about, he talked about character and how important it was for what he

stood for and, you know, at the foundation, that's a big part of what we do with our veterans. charles: hold one second, i've got to share breaking news, rex tillerson in the u.k. is talking about terror and we've got new headlines, ashley. ashley: he's meeting with boris johnson. he was asked about the intelligence leaking and he says that the u.s. takes full responsible while asking for prosecution of those responsible. we heard from president trump. the u.k. is sharing information again with the u.s. intelligce agency garding the manchester bombing investigation, but taking full responsibility and saying they'll get to the bottom of it and let's hope they do. charles: before we go, secretary rumsfeld, you mentioned nato in 1973, just had the big conference, the president's first overseas visit. pretty eventful stuff going on there.

what do you make of nato's role that the comments that president trump made him trying to nudge or change the mission statement a little bit? >> well, i don't think he's changing the mission statement. i think what-- i mean, article five and the attack against one is an attack against all. charles: the focus on-- more focus on. >> money. charles: aggressively on radical islamic terrorism. >> oh, sure. charles: he used specific words, getting tough, being vigilant. i thought they were direct digs for nato not doing enough to fight back against tscourge a lot of people see isis. >> i didn't take it that way. the message was right. five countries out of the nato nations are investing 2% in their national security. and they need to get up and do it. they have to step up. it's the same message i gave in 1973, in 1974 and 5. and second, he basically said

this alliance was formed after world war ii and it was-- had a very good purpose. charles: sure. >> and now the world's changed and things are different, and this alliance, probably the most impressive military alliance in the history of the world, needs to begin looking at this problem of terrorism. and it's a serious one, we just saw what happened in england and i think that message is a good one. there isn't any reason why the nato countries can't calibrate their focus and be more successful dealing with terrorism. charles: secretary rumsfeld, i'm going to download the game and of course, i will remind everyone, travis manion foundation, travis manion.org is the website, it's a beautiful thing that you're doing, and i can't wait to spend some of my idle days over the weekend playing this. appreciate it. thank you. >> thank you. charles: a quick check of the 200030, coming back here, a narrow trading range. we've been down all morning,

nothing catastrophic, but profit taking and then your venezuela story of the day. stories that the country with syria to sell embargoed oil to the united states. this is a serious outrage more coming up. at fidelity, trades are now just $4.95. we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be. brtry new flonase sensimists. withallergy relieftage. instead of allergy pills. it delivers a gentle mist experience to help block six key inflammatory substances. most allergy pills only block one. new flonase sensimist changes everything.

>> taking a quick check of the big board. a continues to hint that it wants to go positive. it's trying. it might get there with the help of microsoft because, well, that stock has hit an all-time high. ♪ big shout out to stuart varney, in that forever. and the nostalgia, nokia 3310 cell phone. >> classic. charles: i'm sure you or someone you know owned one. they're bringing them back. ashley: i have one in my hot little hand here. the nokia 3310. do you remember these? a small screen, you go into the menu and just very-- i've got big oven mitts for hand so it's not easy to negotiate, but you know what's great, the battery life, 22 hours, 31 day stand by battery life. these were very popular because they were indestructible and

had the popular snake game. you can buy the new one for $63.39 in the u.s. and the snake game, oh, see? there it is classic. i don't know how to turn it on, but there you go. so very popular with people maybe as a second phone, you can phone people and send messages and that's about it. compare it to the iphone 6 i have here today. quite remarkable. charles: interesting. ashley: but people love these things. it's a stuart varney phone, it's not complicated. charles: that's when nokia ruled the world. the highest stock in europe and probably held that brand too long. ashley: retro is cool. charles: retro is a cool. you never expect to hear this from spike lee. very critical of hillary clinton at the cannes film festival and called her entitled and you can't win a presidency if you're chilling in martha's vineyard. great point. more varney after this. id...

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charles: i'm charles payne. in for stu, he will be back on tuesday. here are the headlines for hour two of "varney & company." president trump and theresa may sit down on the sidelines at the g7 in europe the topicthe ma one, leaks and sharing intellen. what is at stake? preventing the next terror attack is big. facebook billionaire mark zuckerberg, 62 billion in fact, talking about universal income. we'll play you the sound bite. despite all the gridlock in washington, all the terror around the world we're watching record highs and you're doing very well. speaking of record highs, take a look at amazon and google in the race for one thousand dollars a share. big tech, big money, we follow it all for you. second hour of "varney" starts right now. ♪

charles: we start with a check of the big board. the dow jones industrial average hinting, acting suggests it wants to go into the green. it is hanging in there but down all morning however. we're getting latest read on consumer sentiment. ashley, do you have the numbers? ashley: university of michigan for the final may number, 97.1, doesn't mean anything to anybody. but the estimate was 97.5. so a slight miss. they missed expectations in april. perhaps consumer sentiment is what the market is doing right now? wait and see i think is what it is telling us. charles: thank you, ashley. happening this hour, vice president pence will address the naval a cad day graduates in annapolis, maryland. you're looking at that. commonsment speech from yesterday, facebook ceo mark zuckerberg advocating giving people free money. they call it universal income. roll tape. >> now it is time for our

generation to define a new social contract. we should explore ideas like universal basic income, to make sure everyone has a cushion to try new ideas. charles: fox news contributor tammy bruce joins us now. tammy, what is wrong with having a cushion? >> this is fellow speaking to harvard graduates. he dropped out of harvard to start facebook. he had innovation and idea to do so. even speaking to the crowd, he speaks to them they are separate from everyone else. this will be up to us to make the difference. it is going to be our generation. well he is speaking to the harvard graduates who know it is about competition, performing for what you want, really your own imaginemation. but there is concern that robots are going to be taking over, they claim. a lot of their work, it is elon musk, mark zuckerberg, others creating technology that will you put people out of work. i think this is an effort to continue to allow that to happen. the notion of not doing that

doesn't occur to them but this other idea having the government somehow pay everyone effectively to exist, stay in education, to have a comfort zone to be able to do what you like, there is no discussion about how to pay for this. he says, it will be people like me. but then also because there is income inequality. but that makes it even worse, doesn't it? you have the dynamic of people, a dozen, people in technology, putting the robots into the system, saying that others should, what $15 a living wage an hour? this is what they're going to do. expands, it expands the income gap even more. it allows them to displace human beings from the workforce. i think that is what they're talking about in this high and mighty dynamic of pay those little hoi pol independent, a little money to do our thing with technology and business. charles: we know progressive thought is always sort of pushed back on the individualism of

capitalism if you will an always thought about us in a universal sense this harkens back a little bit to fdr's freedom speech, freedom from wont, which is interesting, wont is what drives us. >> this is about competition. my mother was on welfare for a good period of time. i grew up poor. it destroyed her sense of self. this is a dynamic where every human being, every living creature is about competition, wanting to do better, wanting to gather for the family. chle me it income and not welfare. they have a program in finland, 2000 people, 25 to 58, they're paying them $1000 a month. the reason why they can't get them off welfare. it is too comfortable. if you call it income and not welfare it brings back dignity. it used to be dignity in work. you now there is dignity not working. >> they have the flexibility doing that countries like the united states is running the economic engine of the world. so they have got the flexibility well saying we'll pay everyone this income.

already we know with donald trump's trip you're looking having to push them to deal with just 2% of their gdp for self-defense. all their money is going into socialism which left, faced with real issues involving real people's lives about defense, their families, about real unity for when it comes to people actually compete based on what interests them, they can't do it. they have never been in at that position. and there is dynamic where people then give up. there is surrender to it. that destroys, not just the american sensibility, that the human nature, that human condition requires this ability. you're right, the drive to make more, to do more, to become more. charles: thank you very much, tammy. i want to check on the big board right now. the dow is still struggling a little bit, but s&p and nasdaq have resumed going higher. they're both making new all-time highs. oil has been a big story.

news out of saudi arabia, opec, actually crushed oil yesterday. a lot of people thought it would go the other way. stuart is somewhere smiling microsoft hitting yet another all-time high. their ability to change adapt, like tammy was talking about, the cloud helped them a lot. this is horrific story after an attack on cop pick christians in egypt. ashley, you have more details. ashley: i do. this happened 140 miles south of cairo. a busload of coptic christians heading to monastery for the day, were attacked by group of eight to 10 men wearing military fatigues. no one claimed responsibility. christians make up 10% of egypt's population, that would be nine million, of 92 million. isis already claimed responsibility back in april bombing two churches, bombing coptic christians. this is another attack of on coptic christians.

charles: going to celebrate st. samuel. that is very interesting story. president trump condemned the leak around the manchester terror attack after britain's prime minister raised concerns at nato summit. we have robert j. strang. thanks for joining us. >> thank you, charles. charles: these leaks were already a big story with respect to trump's administration before even went on this foreign trip, seeing it play out in the midst of this investigation into her, into this horrific incident, this barbaric act, by "the new york times," by the way, it really i think was the final straw. >> right. irresponsible would be a good word. charles: how about deadly? if you're trying to round up a terror network and putting information out there, you may actually help some people flee, hey, i'm in the web now. it was, it was beyond reckless. >> yes. when i worked for the department of justice my job was to, as an agent, special agent was to deal with the press, to work with

them on certain things, never with something like this in the middle of an active investigation ever hit the newspapers. because, how many people did we lose by having that photo out there, by having the name out there. who knew what was going on? they're out making arrests and search warrants, not only jeopardize the case but cops and agents going through those doors to make these arrests. charles: could motivate someone to do this? it is not an exchange of money. what's the currency that someone gets rewarded with for doing this? >> something that has developed. i think it is going on now for a decade, people are used to it. people two in government. out of government. reporters get ahold of something they can use on backgrou or not for publication. charles: they see themselves heroic whistle-blower types or trying to hurt president trump's presidency? >> who knows. who would put out name of individual when cops are doing search warrants on

co-conspirators. it is unbelievable this could happen. once we get prosecution. once somebody is brought, arrested and charged we'll see a difference of the britain does it all the time. the united states doesn't. charles: are you confident, robert, they will get to the bottom of at least this particular leak, someone will pay a price for it. >> no. charles: you're not? >> no. charles: let me ask you about this, on the same topic here with respect to all of the red flags that there were on this particular bomber. should there, should they have been a way to stop this guy before it happened? there were numerous red flags. charles: right, especially the fact he is traveling back and forth from libya. they already identified them. one of our big problems in the u.s., when we have individuals coming in from north africa, the middle east, where we can't do fullback ground to identify who they are. in great britain, they know who he is. why he is traveling back and forth. why not let him back in the country, doing full debriefing

what he was doing in libya, syria in this case to make sure this doesn't happen? this is something that could have been stopped because they had i.d. on him. they knew he was traveling. they knew he was disenfranchised. they knew from the community that they were worried about him. his own family was worried about him. he was angry. i don't know if you could have a better example of someone who could be potential terrorist than this young man. charles: the red flags are always there. they talk about the, indoctrination process. it takes some time, people see this. you even mentioned apparently there is a report his mother told authorities that he was completely unhinged. who takes the lead there? because one of the problems i see, they're not sure within the law enforcement community, is this federal issue, local law enforcement,ho takes the lead to try to make sure they prevent something like this? >> in new york, for exple, this is true in many cities across our country, we share

information federal, state, local. charles: information is out there, we have someone, a lot of red flags, who keeps an eye on this person, who brings this person in for questioning? >> right. that is the issue. where even in our country, compare to great britain, we all have the same thing, down to resources. we have only 10,000 fbi agents. we only have sell against agents to work with the cia and nsa. where do they do surveillance 24 hours a day, to monitor social media and look at their phones and their texts? where does it happen? you have to draw the line, put things in categories, fake the worst case scenarios, put your manpower there, at at same time try to keep intelligence going with second tear terrorists if you will. charles: thank you, robert strang. >> thank you, charles. charles: the dow jones industrial average declining,

not getting into the positive but s&p and nasdaq moved higher during the session. >> this will surprise a few people. spike lee says hillary was quote the entitled candidate. the author of the book that inspired that comment right after this. so she only earns double miles on purchases she makes from that airline. what'd you earn double miles on, please? ugh. that's unfortunate. there's a better option. the capital one venture card. with venture, you earn unlimited double miles on every purchase, everywhere, every day. not just airline purchases. seems like a no-brainer. what's in your wallet?

charles: big board struggling a little bit. it has been down all day long. take a look. walt disney having pretty good session, making a bounce back. general electric, per ren until loser, be honest about it, the stock is unmitigated disaster for three decades now. it is the worst loser there. microsoft doing extraordinarily well. that is new all-time high. joined by mcdonald's, united health care. boeing also on the list as well. now to this, spike lee telling the hot wood reporter that hillary clinton thought she was entitled to the presidency and didn't work for it.

in the interview he gave a shoutout to the book, "shattered." joining us coauthor of the book, jonathan allen. getting a lot of shoutouts from everyone these days. >> definitely pleasing spike lee read the book. obviously somebody with tremendous creative talents. charles: someone you may typically would be a staunch hillary clinton defender, even after the election and maybe, because i've seen very few liberals, to be quite frank with you, who have gotten the message from this election. one of the messages obviously you have to hustle and work, work for our votes. you just can't get them because you think you deserve it or it is your turn. >> yeah he mentioned, you know, being on martha's vineyard where she has spent a lot of say cakes time over the years, courting donors and other friends n this particular election and my coauthor and i report in our book how she spent time in sag harbor with jimmy buffet and paul mccartney when was

raising money with august in the election. remember donald trump sort of making fun of her not being on the campaign trail when he was. she was out raising money. he was out there talking to voters. that is part and parcel what spike lee was talking about. charles: there is no doubt. donald trump in the few days before the election, in minnesota, he landed, hillary hasn't come out to see you guys. i said, that can't be right. then you start, she just mailed it in. what was some of the other major revelations in your book that really kind of even surprised you? >> i think big thing was the degree which people internally knew that she didn't really have a message. she was having difficult expressing to the public that her plans were more about them than about her. and you know, we go through some staff infighting, really lack of mission on this campaign beyond just winning presidency. where as you saw with bernie sanders in the primary, people knew what he was b you may or may not agreed with it but you

can tell what he was about. donald trump his form of nationalism, america first message, knew what he was about. clinton had real trouble with that of course a lot of behind the scenes here on moments where she got frustrated on the campaign trail where she said she couldn't really understand what was going on with the electorate. the big ticktock election night what was going on behind the scenes she was finding out she was losing the president den sy she was seeking for about 10 years. charles: one infamous video with donors. why am i not 50 points ahead? she really was becoming unhinged right before our very eyes. the fact that she it wasn't being handed to her. >> absolutely something she believed going into the stretch, she should have been doing better against donald trump. she believed on election day she was going to win. one of the things we revealed in the book, went over the victory speech with her aides and husband early in the election night. never went over concession

speech until she actually congratulated donald trump. she was not ever expecting to ever have to give that. charles: was there anything, jonathan, that worked closer with her tried to give her a reality check at all? or did she surround herself with young idealogues and sycophants? >> she surrounds her with her people that have difficulty hearing what she is doing wrong. her aides is doing prep session. she lost the michigan primary. correcting her, you might try to do this different way, quite not working. you know what, why don't you try it? makes him play her in the debate prep. this is somebody who didn't like to hear things going wrong. there was fear in her organization about the repercussions for telling her she was doing something wrong. not to mention, repercussions for leaking to the press which is another way that candidates can sometimes hear what they're not hearing from their own aides when they read it in the paper.

charles: jonathan allen, the book is "shattered." getting reviews from all kinds of folks. >> thanks for having me. charles: quick check of google shares. they're now hitting new all-time high in the fun race to a thousand goes on. ashley: close. charles: congressman-elect, greg giantforte, still wins special election after body slamming incident with a reporter. get this the mainstream media blaming donald trump for the alleged assault? that is next whoa, this thing is crazy.

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for a free quote today. liberty stands with you™ liberty mutual insurance. charles: one day after body slamming a reporter, republican greg giantforte won his election. he apologized.

>> i made a mistake and i took an action that i can't take back. i'm not proud of what happened. i'm sorry to each one of you. that we had to go through this. that is not the person i am, and it is no the way i will lead in this state. charles: meanwhile the mainstream media blaming president trump for giantforte's behavior. ashley: of course. charles: bring back tammy bruce. what is the reaction? you've seen don lemon and trump created an your after violence and that anything that happens in this country, some kid trip as fellow classmate in the third grade somewhere in a school in southern texas it is trump's fault? >> exactly. this started last october, if you want to blame someone. hypocrisy of the media is remarkable. james o'keefe exposing a conversation with bob cramer working with the hillary campaign and dnc, democrat operative, talking about hiring people to provoke violence at

the donald trump rallies. he resigned ultimately. but that is the dynamic. you have donald trump who is discussing, honest about feelings about the press. there are the democrats who discuss hiring people to cause violence. this is why americans loathe the media. it is not anything that donald trump has said. then you have got, this is important, mr. giantforte will have the opportunity until he comes up for re-election to prove that is not the man he is. very well may do it. that is clearly, no excuse for that. but at same time, what now the media is doing even taking the focus off of the personal responsibility of an action like that, and putting it on someone who has nothing to do with it. it highlights their pathology involving this dynamic, their fixation on donald trump, also why they do keep losing because americans see this. they see hypocrisy and they reject it. charles: i agree. thank you very much. one more quick check of the big board, because we are near all-time highs.

just in the shadow of an all-time high, nasdaq and s&p hit all-time highs today as well. we have better than expected number on economic growth. that is also helping us this morning. the dow still down 18. then there is this. housing and urban development secretary ben carson, he got heat after saying that poverty is largely a state of mind. the mainstream media goes on the attack. we'll play you the sound bite up next. break through your allergies. try new flonase sensimist allergy relief instead of allergy pills. it delivers a gentle mist experience to help block six key inflammatory substances. most allergy pills only block one. new flonase sensimist changes everything. ♪ predictable. the comfort in knowing where things are headed. because as we live longer...

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charles: dow jones industrial average, spinning its wheels not down a lot particularly considering the nice run this week. in fact you have some components reaching all-time highs. microsoft at all-time high. mcdonald's at all-time high.

united health, boeing, an now of course alphabet, race for the 1000. there is the one of the big stories yesterday, housing and urban development secretary ben carson got a lot of pushback on comments he made about poverty. roll tape. >> i think poverty, to a large extent, is also a state of mind. you take somebody who has the right mind-set, you can take everything from them and put them on the street, and i guarranty you in a little while they will be right back up there. an you take somebody with the wrong mind-set you can give them everything in the world, they will work their way back down to the bottom. charles: fox news contributor kevin jackson joins us. kevin, what is your reaction to what ben carson had to say. >> what is controversial about that, charles, jeez. you have the left, they're proving in many circumstances where these children of billionaires end up in rehab and then you have success stories like ben carson, people who grew

up in the projects that turn out to be great. that hunger from poverty is the reason why i'm sitting here on this camera, an probably reason why you're sitting here behind this desk. you want what you feel like you don't have and what you want to reach for. what the left has done, charles, you know this, they have stolen the initiative from young blacks. ben carson was speaking mainly to young black men and young black women saying don't let your circumstances get you down but the left is going to find a reason to hate it of course. charles: of course, some of the things, some commentary i saw from the left, how do you pay your rent with just, you know, with just attitude? in other words you need money to pay rent. you need money to fill up a gassing your car if you're lucky enough to have a car. you need money to go to go to college. >> yeah, you know, all the things they want to give us, right? they give us rent. they give us money for college. they give us subsidies. charles: hold on, kevin, we have

vice president pence speaking at the naval academy. let's give a quick look. >> sure. >> general walsh, all the members of the faculty, the brigade of mid ship men, all the family that traveled near and far to join this special moment and congratulations to the newest officers in the united states navy and marine corps, the naval academy class of 2017. it is an honor to be with you all. [applause] today it is my great privilege to bring you congratulations and also to offer you the congratulations of your commander-in-chief, the 45th president of the united states, of america, president donald trump. [applause]

i must tell you standing before all of you, extraordinary young americans is deeply-humbling for me. humbling to be here in the midst of fleet week, extraordinary military institutuion, extraordinary class of men and women of 2017. yours is already a class of distinction. you distinguished yourself on the day you made the decision to put the uniform of the united states of america to follow a path of service to honor this great country around and we honor you for it. 1053 men and women before me, you are america's very best, in a few moments 760 of you will be commissioned as naval officers

in surface warfare, navy seals, aviators and in the silent service beneath the waves across the world. another 260 will leave this place to continue your training as officers in the marine corporation. i understand two of you will leave here as officers in the air force. [shouting] apparently well-represented here. no matter what path you take, know that your commander-in-chief is proud of you and so am i, and every american it grateful you standing tall and stepping forward to serve our nation and protect our people. [applause] before i go any further, i would like to add my voice, to those who have remembered three who

remembered three who stepped forward. they did not leave here in service but left here into eternity, we remember them today and honor them as much as all of you because they stepped forward to serve the country. william mcnamey, justin senser, jason jaw blonski served the navy with class of distinction. i know the class of 2017 and america will never forget them and their families are on our hearts this day. [applause] so, so today is a day of pride and celebration not only for all of you in uniform before me, but for those who saw you through. for your friends, your professors, your commanding officers and especially your families.

and speaking of which, i'm grateful to be joined today by my commanding officer. would you mind well colling the second laid different the united states of america who is a mane reason corps mom -- marine corps mom, karen pence is with us today. [applause] as the proud parent of a first lieutenant in the marine corps my wife and i know first-hand the commissioning of an officer in the united states armed forces is a deeply-moving moment for your loved ones. the people who believed in you, who believed long ago that you could make it here. who believed even on some days that you couldn't, that you could make it to this day. they supported you, they encouraged you. they prayed you threw.

before we go one step further, class of 2017, why don't you break protocol a little bit. why don't you stand up, turn around, catch the eye of one of your loved ones in the stands, show them just how thankful you are for all the years of love and support that brought you to this day. [applause] [shouting] >> oh, before forget with all the midshipmen, the cell phone thing and last deal, your minor conduct offenses are completely forgiven. [applause] you know today marks the end of four years of training at the

united states naval academy, and commencement of a voyage that will take you into uncharted waters. make no mistakes, have no doubt, you are ready to lead. the training and education you received here has prepared you well to face the challenges that lie ahead. because today you graduate from an incomparable institution. it's remarkable to think for more than 170 years children of liberty have come to the united states naval academy to pursue a life of service and sacrifice. in these halls, on these fields and by this bay, mid ship machine have been molded morally, mentally, physically, and imbued with the highest ideals of beauty, honor and loyalty. they like you departed this place and distinguished themselves in every era as officers in the united states

navy and in the united states marine corps. today when the boards and bars are placed on your shoulders you become the next link in a chain that stretches back unbroken into the mists of american history. the links before you were forged by heroes from john paul jones, steven decatur, bull halsey, jim stock dale and michael murphy. because of them, and through the bravery of all who have called themselves marines and sailors in our nation's history, america's freedom endures to this very day and we honor all who have gone before you. [applause] the. charles: vice president pence addressing the graduates at the u.s. naval academy saying today is a day of pride and celebration and of course,

getting in a few good jokes there as well. i want to go back to kevin jackson who happens to still be with us, and i want to get your take on coverage of president trump's overseas trip. the mainstream media has been so quite and ignored all the positive news come out of the trip. >> they have ignored the positive news out of the trump administration period, charles. the guy is the bobby fibber of politics -- bobby fisher of politics. he weaves our policy with a deftness that quite frankly would make reagan proud. what came out of the trip is masterful and ties to domestics policy. for example, creating jobs in saudi arabia, jobs that will be impacted here in america as well. if you're watching this paying close attention you can't wait for the next visit you are wondering the next trick that trump will pull out of his hat. charles: having said that he was so well-received in saudi arabia.

historic visit in of itself. >> yeah. charles: same thing with israel. i think he made his point pretty loud and clear with nato folks yesterday in more ways than one. now the g7 meeting, what do you think has to happen for some people out there not paying attention to understand the magnitude of these events and maybe somehow bypass if they're just only watching mainstream media who obviously has a serious axe to grind? >> right. i think what has to happen, charles, we have to have a little bit more time elapse. as people begin to get employed, particularly millenials, i get it out here in a second, millenials, that impact on them in the housing market, impact on them, as they start getting off of things like obamacare around getting off of welfare rolls of the, people start seeing welfare is not real option. the opportunity donald trump has given them creating good jobs. look at the litany of jobs he created when he was president-elect. now how the ripple effect.

you guys on fox business cover it all the time. not just jobs we hear from alibaba, softbank or ibm or dow chemical or u.s. steel, it is the ripple effect with all the fortune one thousand, i should say the global 1000 impact on the economy. that is what i see. when i talk to ceos that's what they're talking about. seeing hiring taking impact. see reduction of crime because kids are off the street involved in things. charles: right. >> i think you start to see some of the more, social impact with kids taking care of their families, men taking care of their families and things. i think a little bit more time passes and we'll be in good shape. charles: kevin jackson, thanks a lot, have a great weekend. >> you too, charles. charles: house speaker paul ryan remains confident tax reform will get done in the coming months. roll tape. >> december 23rd, that is a date i'll take. we got to get tax reform done by then. we feel confident we can do that. >> you're confident you have tax

reform finished on the president's desk by the end of the year. >> end of calendar year. charles: congressman, do you agree with the timetable, the speaker's timetable? >> absolutely. we have the second budget reconciliation vehicle to pass it which would only require 51 votes in the senate. we need simple majority in the house. we agree on between the house, senate, and president a whole lot of this. we don't agree yet on 100% of it but we have some time to get there. it is needed to grow our economy and for anyone on the right or left, republican, democrat, who sees our jobs going overseas, companies going overseas, liquidity going overseas you're upset about it, we have to ask why those jobs leaving in the first place, why is the liquidity leaving in the first place? it is need to improve our tax policy, our regulatory policy, our trade policy which the president is focused on and

congressional republicans are focused on. we get it done this year. it is important for our economy to grow it. charles: and yet, things have been tough. the sort of different ideologies within the republican party itself have come to the surface. even though we understand the national issues, all these folks represent local issues as well. that really seems to be where issues are, problems and hurdles. who -- i assume there are negotiations going on right now. who is going to be the person? will it take president trump perhaps to come in eventually get some serious concessions done so we can get the ball moving? >> well, i think learning some important lessons from health care, the president learned lessons and he will be even better. the white house will be even better the way they involve themselves. using regular order right now within inside of the house ways and means committee, whether you're a member of the committee

or influencing that process, legislative text to come out of committee or you're not a member of the house ways and means committee but you care about tax reform, now is the time to get involved in the process, getting a bill to the floor, being a few votes shy, then realizing we could improve the draft a little bit at the beginning. charles: right. >> right now as the bill is in the committee the president will be involved, members of the congress will be involved and there is no reason why we can't figure out to get this across the finish line by the end of the year. charles: congressman zeldin, thank you very much, appreciate it. >> thank you, charles. charles: want to get back to the mark zuckerberg comments on universal income. tracee carrasco is with us. you have a comparison for us, walmart versus facebook employees. explain that. >> facebook employees, 18,000 people. their revenue is $27.64 billion. we compared that to walmart. they have got 2.3 million

employees worldwide with a revenue of 485.9 billion. say facebook employment went up same ratio as revenue potentially. facebook would employ more than 300,000 people at same revenue as walmart. so you look at those numbers. facebook, they have this chance to actually do something about jobs. zuckerberg is calling for universal basic income, and these tech companies they really like to keep their employee base small. charles: keep their employee base small. they bring in foreign workers who work for less than american workers with the same skills. they keep their profits overseas. they're not exactly walking the walk. >> he is calling out a problem. he has a chance to do something. what is he doing? charles: what do you make of the idea he is saying that hey, if you want to get more mark zuckerbergs, more innovation,

more facebooks, got rid of fear of fail lure and cushion, all these other great ideas and all the other stuff we're talking about is inconsequential? >> there is other idea people might not be motivated to work if they have the cushion to fall back on. they might not come up with the ideas. charles: i have a feeling they might not. you're right. thanks a lot, tracee. number of concealed carry permits soared last year. 60 million people have a concealed carry gun permit. we have national second amendment jan morgan. jan, why is this such great news? >> anytime you have law-abiding citizens armed, you have less crime. that is statistical fact. some of the latest figures show as the increase happened, 200% increase in number of people getting concealed carry licenses the murder rate has dropped. that is no accident. charles: people opposed to this

we don't want a bunch of people with concealed firearms running around, what are they getting around? what don't they understand about the process and folks going through it? >> what they are getting wrong the whole concept, what they don't understand, leaving law-abiding citizens defenseless does not keep bad guys from being harmless, charles. the answer is more law-abiding citizens armed. i'm here in washington, d.c., to participate in rolling thunder this. is my holster. every day in my life this holster has a gun everywhere i go. here i am in the nation's capitol disarmed by legislators who sure rounder themselves with armed guards when they legislate our gun rights. i'm outraged by that that is what i'm here to talk about in d.c. charles: a sheriff in texas got into a bit of hot water, made facebook post in initial moments of the manchester slaughter suggesting that if people were armed that would not happen. he took a lot of heat for that. do you agree with his assessment?

>> a gun will not stop a brad guy with a bomb. that is problem. unless you notice he is suspicious and catch him before it goes off. that is a problem. charles: but the growth rate of terror in general though, would it be better if a, the regular citizens were armed rather than leaving up to the police force? >> absolutely. leaving it up to the police force makes it a police state. i trained people from the uk, charles. we had three or four different couples from the uk come to my gun range in arkansas for firearms training. they talk about the fact it is terrible to walk around defenseless. they have no way to defend themselves against the thugs who are always armed. just like here in d.c. all the law-abiding citizens are disarmed. but bad guys who don't care about the law, don't pay attention to laws, they are armed. that leaveses us vulnerable. charles: all those elected officials they have pretty good armament around them as well, don't they? >> absolutely. that is what we need to change. i am excited about the fact that

donald trump is talking about 50-state reciprocity. what i really want, and i believe law-abiding people want, is constitutional carry. i don't need the government to give me permission the second amendment is stated. the right of the people to keep and bear arms shall not be infringed. the founders show right and privilege. big difference between those two words. right is a something human being, a privilege is something government does. the government takes away our right, selling it back at a cost it is wrong and we want constitutional carry in this country. charles: you're always passionate and we appreciate it. >> thank you. charles: zillow.com taking heat how it prices homes. they're offering a million dollar rewarded to someone who can do it better. you think you can do it better? find out. 11:00 a.m. eastern. ♪

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charles: joining us right now, donald rumsfeld and colonel, and secretary rumsfeld, you're a colonel. >> marine corps colonel. charles: we teased your interview where you took credit for coding this thing.

[laughter] [inaudible] how did this come about? >> winston churchill taught it to friend of mine during world war ii when the nazis took over belgium, the government . a young diplomat, learned it from churchhill n 1973 i'm a young diplomat, ambassador at nato. he is a senior diplomat, he taught me the game. it is challenging, strategic, it is difficult. you're so smart i know you can do it. have you downloaded it yet? charles: i am going to. >> going to? been out for month. charles: i never downloaded apps. i have to ask someone to help me i am not as good at coding as you. >> a million people downloaded. charles: every time it is downloaded does it generate income. >> yes. charles: you mentioned the 1983, nato, president trump's first

visit. what do you make of nato's role, president trump's comments and trying to nudge to change the mission statement a little bit. >> i don't think he is changing the mission statement. i think, article v, the attack against one is an attack against all is -- charles: focus on, more focused on -- >> money. charles, radical islamic terrorism. >> oh, sure. charles: he used specific words, getting tough, being vigilant. i thought those are direct digs as european leaders, particularly nato, not fighting back and discouraged. >> i think the message he gave is exactly right.

charles: 11 a.m. in new york, 8 a.m. in california. here's what we have new for you this hour. president trump has bashed the big drug companies, says they're getting away with murder.

now the fda commissioner's calling for a crackdown on skyrocketing drug prices. here's also a what else we have for you this hour, still low offering a -- zillow offering a big reward. later this hour we've got the man who created the contest. and we are going to speak with a company that provides care packages to our troops overseas. it's called operation troop aid, and they've got, well, they've got -- we've got them with us this hour. and even you can, by the way, get in on the giving. and, of course, we're following all the big stories of the day. tensions building between the united states and the u.k., this after "the new york times" leaked photos of the manchester bombing scene and president trump and u.k. prime minister theresa may meeting again today at the g7 conference. we expect to getten an update from the white house later this hour. and by the way, mark zuckerberg getting political at his harvard

dimensionmenting speech -- commencement speech. he's talking about giving away money, free money from the government. yes, you cannot make this up. here we go, hour three of "varney & company" starts right now. ♪ ♪ charles: first, we start with a chick of the big board. we were -- check of the big board. we are right there, right in that area of record territory. lenore hawkins joining us now. seems like despite the fact it's a little bit of a lackluster session right now, the fact is this market rally seems unstoppable. >> it definitely seems like a teflon market, but let's put it a little into perspective. over the past three months, the s&p is up about 2%. the if we look at the s&p equal weighted, because it's weighted by market cap which means bigger companies have a bigger impact

on it, that's only at barely half a percent. so that tells you that there's a lot of stocks that aren't doing quite what the high flyers are doing. bonds tell you a little bit more about what our economic lookout is, the long data treasury is up, was up about 1.3%, nearly the same as the s&p. so it's not quite the super-rosy story of equity shooting for the moon. charles: right. the bottom line is we've got a handful of companies that are doing most of the heavy lifting. i get that point be, but why shouldn't buying at some pound point spread out? do you see this as a ca theirly in the coal mine or lead to buyers starting to go into different areas and different stocks? >> i think people are definitely, those high flyers are doing the best, like you said. you look at the russell 2000 small cap, it's actually negative over the past three months.

and i think what we're seeing is the market is trying to get in sync with the expectations around the trump rally, and now are they really going to happen. are we going to get tax reform, are we going to get that regulation rolled back, are we going to get the infrastructure spending? it's probably going to come a lot later than originally thought, so you've got to to readjust pricing. earnings today, in 2010 we're still $10 below for the s&p earnings for share, we're $10 below what expectations were for 2015, yet the market's gone up 30%. charles: met9 me ask you about two big names, amazon and alphabet. now in this interesting race, they're neck and neck to see which one hits $1,000 a share first. forgetting about market share for a minute, have fun with me. which one's going to get there

first? >> my bet would be on amazon because they have a stronger tailwind. we look at both of those as part of our connected society, and while google's really focused on online advertising, it faces serious competition from facebook whereas on the other side amazon is diversifying its service offerings and its footprint on a yee graphic basis -- geographic basis, plus, it's kind of kicking google's butt when it comes to alexa. she's in our cars and in appliances, and now now you can make phone calls with her. charles: don't get me started with alexa, that's for sure. hey, let me ask you about this because venezuela is in chaos. the socialist country is wracked with anti-government protests these days, and we're learning they tried to sell banned syrian oil to the united states. what's going to happen here, you know? and what's going to be the role of the united states in a worst case she power in owe?

>> i think what we're seeing is a nation absolutely descending into chaos. it's kind of the natural con exceptions when you keep having government take all capacity away from the private sector. it just plummets into anarchy. and now they are so desperate that they're trying to do this just to get funds to help bring some money in and feed people. the starvation we're seeing there is just unreal. and i think, as always, the u.s. is going to be expected to kind of come in and help save the day. we'll see whether or not we actually do that, because the politics in d.c. are moving a little bit more towards a little nationalism and a little bit away from being so involved in everything else around the world. they are so close to our southern border that we need to be very careful to not have that chaos spread over and not affecting us as well, plus from a humanitarian perspective. charles: right. that monroe doctrine, right on our doorstep. lenore, thank you very much. have a great weekend.

>> thanks, charles, you too. charles: mark zuckerberg taking some heat now, want you to listen to one of the ideas that he's floating. roll tape. >> now it's time for our generation to define a new social contract. we should explore ideas like universal basic income to make sure that everyone has a cushion to try new ideas. charles: here now, dowe -- douglas homs acre. there's a lot of great minds out there with amazing ideas. a all they need is the ability to take risk so that they can come to fruition. what's wrong with that? >> i think the basic problem here is that the universal basic income crowd has forgotten that the key to success is not aunt hoverty -- antipoverty efforts. that makes it sound like it's just money, it's about economic self-is sufficiency. and what we really need to do is make a broad commitment to

making sure everyone has the capacity to live off the returns the their own effortses and ideas and be work. and that's a commitment that i think makes more sense. charles: i also want to play one more piece from zuckerberg's peach, listen to what he has to say about job automation. roll tape. >> our generation is going to have to deal with tens of millions of jobs replaced by automation like self-driving cars and trucks. today technology and automation are eliminating many jobs. for our society to keep moving forward, we have a generational challenge to not only create new jobs, but create a renewed sense of purr. charles: now, that woman behind him who was falling asleep, obviously -- [laughter] that part of the speech wasn't aimed at her but, i guess, the millennials and the realization that maybe robots are going to be doing all our jobs, so what the heck do we do. >> i i think there are going to be a lot of jobs, developing the

products robots need to be successful. this has been a periodic scare throughout economic history where we worried originally about, you know, the factories and how they were going to end work for the average man, and that's just never happened. the key is to have good economic policies that allow flexibility to adapt to new circumstances. you get in trouble when you have the sort of bad top-down regulation that says, you know, we're going to define a job like what it looks like in the 1950s, we're going to make the employers act like the 1950s, then you will get in trouble in the 21st century. charles: we have always adaptedded in the past, but it does feel from the average person who may get up today, drive to work through a toll booth that has an e-z pass lane, go into a supermarket and self-checkout, it does feel like this reality is in our everyday lives more so than ever before, and people are losing faith.

do you make it up with bringing back factory jobs? how do you keep this thing going? >> so i think that's -- look, you have a profound fear of alexa, i just learned. [laughter] so this is out there. charles: you can't keep a secret! [laughter] let me ask you about this, because we're running out of time, and i'd be remiss if i didn't, that cbo score. they're going to say an additional 23 million people over a ten-year period won't have health insurance if this is going to be the replacement. you're the former cbo director. of course, everyone, you know, taking shots at that cbo score, but what's your overall take? >> look, if you look at the cbo score next year when none of the new health care law would be in place, eight million people walk away from the obamacare insurance they were forced to buy because they hate it. and in the years that follow as the new lu's put in place -- new law's put in place, it rises by two m. i think people are misreading the score

deliberately. charles: what if someone says, hey, i want insurance, but i cannot afford it? because republicans are saying we agree government should be in the business of providing health care insurance, what do they do for people who are not insured? >> they give people the choice to be insured or not insured. that's a fundamental tenet of this bill, and there will be people who elect to be uninsured. and for those -- ca. charles: so if you're oar and you can't afford insurance, no big deal, is that what you're saying? >> there are subsidies, there's a medicaid program, and the case people always point out is the pre-existing condition. these states are not allowed to go forward with waiving a lot of these insurance requirements unless they have put in place something that is certified to take care of the problem. so there are a lot of scare tactics out there, but that's not what the bill does. charles: alexa, she might sound sweet, but she's tricky.

[laughter] remember what we told you about zillow? well, later this hour we've got the man who actually created this million dollar contest x ahead of this memorial day weekend, we're going to seek to a company that provides care panels to our troops overseas. it's called operation troop aid. stay with us, we have got a whole lot more just ahead. ♪ ♪ (microphone feedback) listen up, heart disease. you too, unnecessary er visits. and hey, unmanaged depression, don't get too comfortable. we're talking to you, cost inefficiencies and data without insights. and fragmented care- stop getting in the way of patient recovery and pay attention. every single one of you is on our list. for those who won't rest until the world is healthier, neither will we.

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charles: in egypt, gunmen attack a bus carrying coptic christians. >> 26 people, charles, now confirmed dead in this attack, another 25 injured. they were on a bus traveling to the monastery of st. samuel the confesser. we understand it's actually 85 miles south of cairo. the bus and a convoy of vehicles

was stopped by eight to ten men in militia outfits, they just owned fire. sadly, there were children on that bus. no claim of responsibility, but we should point out that isis has been very active in attacking those coptic christians in egypt including two bombings on palm sunday charles charles and then get them on their religious pilgrim imagines or holidays. it's terrible. i want to bringing in fox news contributor, mercedes schlapp. it's is to heartbreaking that these coptic christians out there -- it feels like they're defenseless, that no one has their back. they don't get enough protection from the egyptian government. we talk about it, but even on social media, i don't see any outrage over this slaughter. >> there's surely not enough outrage at what's happening in egypt and, actually, the middle east. when you're talking about christianity, those christians in the middle east, that

population has dwindled down to about 5% in that region. it's because of religious prosecution, because of the persecution, because of the fact that you have islamic state and al-qaeda targeting these christians, i think it's incredible troublesome. and let's remember, the coptic christians, they supported president el sisi in egypt because he vowed to eradicate islamic extremism. that is, obviously, becoming a very difficult task, because what we're seeing is you still have the pockets of these jihadists in that area. it's not very stable, and it's difficult to protect them. charles: it is, and yet you could argue this is maybe ethnic cleansing, and if that's the case, where are these world bodies, the united nations? you know, we just -- where are these bodies that typically say, hey, we're going to come in and we're going to stop these things from happening? >> well, we know the limited

power of the united nations. they're a lot more talk than action. we saw this in item with the yazidis when isis came in and tried to, basically, tried to eradicate that community. and you've seen this happen across the region, you know? and i think that's why when you look at the fact that president trump is making this appeal to the arab nations, what he did in his foreign trip and basically saying you all, this is your problem too. you as muslim leaders need to make this a priority to get rid of these losers, these terrorists. because at the end, it creates incredible instability in the region. charles: right. >> what we're seeing is, basically, the extinction of christianity in the middle east, and that is incredibly troublesome where semi of these christians have had to leaf the region. -- leave the region. you've seen, obviously, the beheadings, the massacres that happen time and time again, and

there's very little safe space for christians in that area. charles: and it's all happening under our watch. i do want to ask you about these leaks. for a moment the u.k. had refused to share information on manchester with america. how, to what degree are these leaks undermining president trump? >> oh, these leaks are tremendously undermining president trump. remember that these leakers, their primary focus is to weaken the trump presidency. their primary focus is to insure that this president is unable to govern effectively. and so while -- what they've decided to do is since their focus is on president trump, they're undermining the key relationship with one of our most important allies, which is the u.k.. and so i really believe these leakers are spies, they're cowards, they're enemies of the state. they're incredibly problematic. they need to be found, they need to be brought to justice because what they're doing is undermining our national security. and also having an impact on being able to share this intelligence information which

we know is to hone in on potential terrorist attacks which, in essence, what you're doing is you're giving an opportunity for the terrorists to win as opposed to insuring we share this intelligence information with our allies. charles: we've also got to say, shame on you, new york times, for even posting it. have a great weekend, we'll see you soon. >> thank you. charles: the federal government is predicting an unusual busy hurricane season this year. we're going to have the details in a moment. also president trump has bashed the big drug companies saying they're getting away with murder. now the fda commissioner's calling for a cracktown on skyrocketing drug prices. we'll deal with that in the moment. and later this hour we are going to speak to a company that provides care packages to our troops overseas, operation troop aid, and you can get in on giving. stay with us. ♪ ♪ break through your allergies.

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charles: the federal government predicting an unusual, active hurricane season for 2017. they say to expect 5-7 hurricanes to form, forecasting

11-15 tropical storms. and check this out. bmw bringing back one of its most famous cars from the 1990s, the a series. it will make its worldwide debut in italy next month, it will launch next year. and you've got to see this. this man might be the most excited price is right contestant ever. roll tape. >> good luck. [cheers and applause] >> oh, my god! oh, my god! [laughter] >> stick with it, stick with it! [laughter] charles: you know why he was excited? he just broke a record on the show, winning more than $31,000 in that plinko game. absolutely amazing. look at that -- [laughter] that's beautiful. by the way, not as exciting as

perhaps that, but there are some individual stocks. however, the forecast was not up to par. you can see those shares getting hit pretty good. on the other side of those ugg boots reported surprising progress. ulta beauty salon has been nothing short of remarkable, it continues today. strong earnings. yum brands, taco bell, they're adding thousands of stores, but it's going to be a global push. right now maybe too dependent on china. and costco profits boosted by hirer membership fees -- higher membership fees. and look at big lots. even though the sales are down, the profits did beat expectations because margins got better as costs got lower. also want to check out the big board, we can see the dow off 12. for a split second we were in the green. stay right there. ♪ ♪ there's nothing traditional about my small business so when

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>> the drug industry has been disastrous. they're leaving left and right. they supply our drugs, but they don't make them here, to a large extent. and the other thing we have to

do is create new bidding procedures for the drug industry, because they're getting away with murder. charles: president trump bashing big drug companies. now fda commissioner scott gottlieb is calling for a crackdown on skyrocketing drug prices. joining us now, grace-marie turner, the galen institute president. nice seeing you here. >> charles, nice to be with you. charles: i guess the issue from the drug companies' perspective has always been we spend billions of dollars to go through this arcane system, we have a limit window to make money on it before anyone can make a cheaper version of it. they're between a rock and a hard place, and yet they are public enemy number one when it comes to some of these stories we've seen over the last couple years. >> even though drug costs are 10% of overall health spend. and scott gottlieb, the new food and drug administration commissioner, he really understands this issue, and he also understands economics.

he spoke yesterday, he gave testimony before the house agriculture committee. and he talked about what he's going to do to begin to get drugs through the pipeline faster so that it doesn't have to have this delay, particularly focusing on generics which are four out of five drugs that are prescribed today, are generics. we need more competition. there's a big backlog in applications to produce more generics. these complex drugs like the epipen, he wants to produce new rules to make that go through faster. charles: generics are great, but you also need new drugs, and you've got to make that somewhat easier. the initial three phases, the new drug application, it just goes on and be on and on. listen, i know there's a happy medium there where, but it's a difficult one. i also want to can you about this because it's the topic of the week, and that's the cbo score saying 23 million fewer americans would be without health care insurance with the house replacement bill. what are your thoughts on that?

>> so we just actually posted a paper with my colleague, doug badger, really taking a detailed look at this bill, at this study. and the cbo is, they're the only ones who think the individual mandate9 is still working. they assume even though there are only ten million people in the exchanges, they assume somehow magically 18 million people will be in coverage next year. the house puts $45 million more in medicaid spending, and yet -- billion, and yet they produce no increase in coverage. so the cbo's just detached from reality. charles: but one of the issues is medicaid, particularly these republican golfs who took the bait -- governors who took the bait from former president obama. even in louisiana they're calling for more money, they've had more people sign up than anticipated, and this is one of the news items no one reported on on this week. how do you get around that, and who can even guess how many

states will opt out of the program? >> that's right. the cbo is absolutely guessing about who's going to go into medicaid, to opt out of the program, who's going the take these waivers. a complete guess which is one of the reasons the cbo, you know, you and i could do just as good a job, but we're not going to get the front page story. [laughter] charles: yours would be 400 pages, i'd do it on the back of an index card. yeah. >> but the overall concept that we need to make sure that legislation gets through the senate, we need to have them base their decisions on good policy, not some fictional numbers from cbo. and i think people get scared by this. but if you look at the fact that the cbo has been consistently wrong by millions in its coverage estimates and basically say what's the right policy here, what should we be doing to, a, help people currently on obamacare? a lot of people didn't want to be there, their old policies

were canceled. we've got to build infrastructure for a new system, and with medicaid you've got 33 republican governors who are chomping at the bit to get control of this program that is wasteful -- charles: are you confident, because it feels like it's stalled, and even mitch mcconnell this week saying he doesn't know how the senate gets 50 votes. >> it's tough. when you've got -- we have to go from susan collins to rand paul. [laughter] it's a having long spectrum. but i think the incentive to do this is greater than the heat they think they will take from whatever bill they pass. and i -- the senators themselves are are personally engaged. i've been to a number of meetings with senators over the last several months. they want to be engaged, they want this to be something that reflects what they hear from their constituents. charles: right. >> at the same time, they want to respond to the voters for repeal and replace. charles: grace-marie turner, appreciate you coming in.

thanks a lot. mark zuckerberg continues to be under fire for floating a controversial idea at his harvard commencement speech yesterday. roll tape. >> our generation is going to have to deal with tens of millions of jobs replaced by automation like self-driving cars and trucks. today technology and automation are eliminating many jobs. for our society to keep moving forward, we have a generational challenge to not only create new jobs, but create a renewed sense of purpose. charles: here now, seth ayers, former acting u.s. labor secretary. well, you were in the thick of it as the labor secretary. sounds like a good idea to you? >> no, i'm not a supporter of the universal basic income. i really want people to get to work. i think it's a much more sustainable way of getting income into people's families. but also, you know, dignity and self-respect and a seasons of purpose in- a sense of purpose

in life is closely connected for many americans to their jobs, to their occupations, to their careers. it's the way they communicate their values, it's how we come together as a community. i would prefer to focus on job creation and job quality. charles: you know, it's interesting because you bring up the dignity of work. it feels like there's been a public relations effort to bring dignity to not working, you know? and, you know, maybe people feel from a societal point of view folks shouldn't feel bad if they're getting welfare, unemployment checks or food stamps. is there anything to that? >> well, i don't want to beat up on people who are getting cash assistance from the government. i want to give them a pathway to opportunity, a job in the economy, a way to get into and stay in a job. the most important way to do that is to give them access to skills training and education and to give them entry-level jobs where they can succeed. so i'm not sure we're seeing a cultural shift.

i think there's still a lot of stigma associated with cash assistance from the government. what i want to do is encourage those people, give them opportunity. and the government has an important role to play in doing that. charles: september, let's talk about president trump's budget because some on the left are attacking the spending cuts or the less -- slower rate of spending increases, if you will, that he's proposing. ultimately, what this plan as it's or the of outlined right now -- would it help to create jobs? >> i don't think it will. the u.s. department of labor, one of the biggest challenges we have in the united states right now is that employers are looking for workers, and they can't find workers that have the skills that they need to succeed in that employer's workplace. but the trump budget proposes to cut $2 billion out of job-training programs that serve exactly that purpose. that's on top of very deep cuts to education spending, college opportunities, public service opportunities that help people to get and stay in the labor market.

so i just, i don't think deep cuts to the budget are going to happen. i don't think congress will pass them. they really like these programs -- charles: but do we need some of -- i know what you're talking about, including some of those manufacturing agencies out there. i believe when they take a closer look, the administration probably will change their minds on some of those cuts. but overall, the big, bloated government agencies, do we need these $40 billion, $50 billion annual budgets for the department of this or the department of this? and overall lower taxes. the sort of things -- fewer regulations. you don't think all that stuff together becomes something of an elixir for what ails the economy? >> depends on who gets the tax cuts and which programs you cut. there are programs in the government that i think we need to take a closer look at. at the labor department, we made a big focus on evaluating programs focusing on programs that were doing a good job, serving people well, saving lives, increasing skills, raising wages, things like that.

but big tax cuts for wealthy individuals and rich corporations is not the way to get the economy going. we need a targeted fiscal stimulus, things like infrastructure spending. i'd love to see the president get together with democrats in the house and the senate and push together an aggressive trillion dollar infrastructure spending program. that will create the middle wage, middle skill jobs that we need in the united states. charles: it would, but some also argue it would be sort of a one-time thing. obviously, a bitter taste in a lot of mouths after we spent almost a trillion before, and none of the shovel-ready jobs materialized. at least to a large degree. but for a sustainable uptick in our economy to get to 3, 4, perhaps 5% growth, what are the keys to that? >> well, i don't think we're going to get to 3% or 4% growth anytime soon. i think what we have to do is deal with some of the structural problems that we have in our economy. we have many -- too many people who are working part time, who are underemployed meaning

they're employed below their skill or education level. we need middle-wage, middle-skill jobs in the united states. we need to continue our investments into skills training and education for people. i think the infrastructure is not a one-time spending opportunity. what it does is it makes the economy work better. better roads, better ports, better railways -- charles: right. >> we end up with a much more productive economy. charles: there's no doubt that it's an fs investment to greasing the wheels to commerce, seth, thank you very much. >> thank you. charles: remember when we told you about zillow offering this big reward for the person or team that can improve their home price tool? up next, the man who actually created that million dollar contest and the company who makes care packages or for our troops overseas, is with us this hour. the man who runs it is also a veteran. well, they're with us very soon. ♪ ♪

♪ ♪ >> hi, everyone, i'm lori rothman on the floor of the stock exchange with your fox business brief. shares of ups are little changed, slapped with a giant fine for shipping illegal cigarettes into new york state and new york city. now, a federal judge is ordering ups to pay nearly $247 million in damages and penalties related to accusations that since 2010

ups has shipped unpacked cigarettes to up licensed wholesalers, unlicensed retailers and residences, many of which are located on indian reservations. now, ups is calling this ruling excessive and far out of the bounds of constitutional limits because the shipments only generated around $1 million in revenue. however, the court says it was troubled by the consistent unwillingness by ups to acknowledge it. let's get you back to "varney & company". with sea-doo. ♪ ♪ sea-doo has the most affordable watercraft on the market. starting at just $5,299 and get 0 percent financing. visit sea-doo.com today.

charles: and now this, according to a new study electric cars will cost less than gasoline are as soon as 2025. of i don't know, ash. >> well, you know why? they say 50% of the cost of an electric vehicle these days is because of the cost of the battery. but i the point being the cost of batteries are going to come down significantly, they say by 77% between now and 2030. so therefore, they will become a lot cheaper than your gasoline cars. so it's all about the battery. charles: it is all about the battery. >> if you believe it, there you go. buy one for cheap. charles: thanks a lot. and then there's zillow offering a big reward to anyone that can improve its home price tool after receiving a lot of complaints about its accuracy. excuse me. the tool's creator joins us now, stan humphries. stan, tell us about this challenge. >> hey, good morning, charles. yeah, we're really excited about

the civil elope prize which we announced -- zillow prize which we announced a couple of days ago. of we've invited teams to improve it the most, and the team that performs the best is going the win a million dollars. charles: i've got to tell you, i give you props because not a hot of companies would accept this sort of criticism, hey, a key component of your web site isn't that accurate. so, first and foremost, that was great. i think it's brilliant on your part. finish also how do you, ultimately, will you ultimately decide the winner? how do you know if the person that comes up with the new system is think better than yours? >> well, yeah. it's certainly a challenging space because i think home values kind of occupy that intersection between things that people love, kind of their passion as well as kind of what's important to their pocketbook and homes or something that, you know, are in both those spheres. so there's a lot of heat and

light around home valuations, but we've been pleased with what we've eye chiefed over the year -- achieved over the years. we think a lot of the traction's going to come from a lot of hyper-local data sets that come in and kind of tweaks to the algorithm, and crowd sourcing is perfect for that. and the way we're going to judge these teams is the same way we judge ourselves and those accuracy numbers. what we do is we look at closed sales and compare our val weighs to those closed sales. charles: let me ask you about some trends that are starting develop. first quarter, according to the census bureau, over 800,000 first-time home buyers versus less than 400,000 first-time renters. we're seeing that under-25 crowd ticking up here. are we starting to see millennials move out of the parents' homes and basements and maybe more the demand for houses rather than renting? >> we certainly are, yeah.

i mean, in fact, generally there's not enough housing available for anyone, and millennials now actually do -- they are the, they're the largest cohort of first-time home buyers. part of that's because they're an enormously large demographic group. but, yes, this kind of meme that's been popular that millennials don't want to own anything, think don't want to own cars, they want to rent prom dresses, they don't want to own houses, we've been saying that's just not true. they're delaying getting married and having children, but eventually they're going to want to own homes, and we're seeing that come home now. charles: yeah. overall this week some of the housing data and the last couple reports, a little less than expected. you talked about a shortage of supply, and i spoke with the ceo of dr horman earlier weekend, he told me -- dr horton, he told me about this generational gap of skilled workers. during the great depression, you couldn't build a home or sell

it, so we've got a big gulf there. how detrimental do you think that is longer term to our housing market and to our economy? >> you know, i think that supply problems are pretty endemic right now to the housing market. typically, we see new construction contribute about 20% of all overall home sales, and right now it's about 12%. so we're just not building as many homes as we have in the past. and certainly i think labor shortages are a big part of that. where, you know, we just have -- a lot of the people that were building homes at the height of the last housing cycle went away and found oh jobs during the down turn, and it's been harder to get them back. and and a shortage of skilled labor is a part of that. it's a problem in a lot of different sectors where, you know, our educational system is not always performing the job of training people for the jobs that actually exist. charles: stan, again, great idea. i, you know, commend you because you say, hey listen, if you guys think you can do it better, do

it. have a great weekend, stan. thanks a lot. >> yeah, thank you, charles. charles: by the way, monday is memorial day weekend, so we're going to speak to a company that provides care packages to our troops overseas. it's called operation troop aid. even the girl scouts donated. the company, operation troop aid. they're with us next. ♪ ♪ you always pay

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charles: as we celebrate our troops this memorial day weekend, our next guest is giving back by sending care packages overseas. so far his nonprofit has sent $11 million worth of goods, mark woods, also a veteran as well. tell us about how the program worked, and before that, tell us how you got started. >> thanks for having me on, charles, i really appreciate it. first, i would like to say to all the family members over the years that have lost a veteran or lost a military member, we thank you so much for their sacrifice. operation troop aid tarted, if

you recall garth brooks did a concert on the flight deck of the uss enterprise right after 9/11. i was stationed on the enterprise x the captain appointed me as the assistant coordinator. so it just, you know, out blew my mind and really gave me the entertainment bug, if you will. so i started thinking about how i could use entertainment for charity x. that was in '01. '04 i had a dream, and here we are 12 years later, and we've sent, like you said, around $31 million worth of product -- $11 million worth of product. charles: when you say entertainment initiatives, concerts and things like that? >> we partner with concerts, fairs, festivals, boat shows, rv shows raising the money, and then we have several companies that have come on board with us. if i can talk about that for a minute. here's the packages. we have our bags that have our logo, and harris jewelry is one of my main sponsors.

they have 23 stores around the country, and they sell these bears. you can go to harrisjewelry m.com and grab one of these, and we get the profit from this as well to help send the care packages and so forth. things like that. charles: i mean, i love that. but i also know that the girl scouts just donated, like, 150,000 boxes of cookies? >> every year the girl scouts, i have seven different states, and they'll be out at wal-mart or sames selling cookies, and they have a troops to troops program, and we get anywhere from 200-$600,000 a year worth of girl scout cookies, and we send them in the bags and fill it up with, you know, beef jerky and phone cards, cookies, candy, toil relatelies and just send them over. i think you've shown some pictures of some of our troops receiving the packagings. charles: we have an extraordinarily patriotic audience, and people would want

to know how they could contribute. >> yes. there's really several ways. you can go to operationtroopaid.org, you can donate there. we just also partnered with durango be boots, and if you buy $100 worth of product, they'll take 10% off. they'll give you free shipping, and they're donating $10 to operation troop aid. and we also had just a blessing the other day. dave ramsey donated 10,000 of his financial books, and we're going to be sending these out to various chaplains. and i'm going to walter reed next week to hand these out to our wounded. so, please, if you can, go to operationtroopaid.org. charles: thank you very much. god bless you. we really appreciate it. >> god bless you too. and i'd just like to say to all the troops out there, if you're considering some bad things, please don't -- you have purpose in your life. thank you for your service. call us if you need us, thank

you. chicago charles thank you very much. more "varney identities after this. ♪ ♪ . .

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charles: the dow couldn't do it. it tried on several attempts to get in the green. nevertheless we have a few hours left. neil cavuto takes it away. neil: i'm surprised, charles, on hillary clinton speaking at wellesley. i had a bet here if any conserve students walked out on her and shouted at her how much media coverage would that get? charles: not that it would happen, if it happened it would be biggest news story of the rear but it is not going to happen. neil: that would be a youtube moment. but again, we're not holding our breath. thanks, buddy, have a wonderful weekend, not only focusing on hillary clinton speaking on wells sy crowd,