this jobs number all around was koefefe. [laughter] >> and i'm going to leave it there. and don't forget to tune in tonight. an interview with ken langone. over to stuart. stuart: the expansion looked like it was off and running. more jobs and stocks hit the best levels in history. good friday morning, everyone. that's the news and it's not what you're seeing in the news media, but it is the news that affects us all and it's a trump success story. maybe that's why the media is ignoring it. look at this, 253,000 private sector jobs created last month. independent businesses report a hiring surge, best in decades. oh, here is the disappointment. the government reports that overall, only 138,000 jobs created last month. a million since the election,

but that may jobs report from the government is not good. it's a warning shot to congress. please, get tax reform done. i'm going to backtrack for a moment. the president takes us out of the paris clite deal ande says that that will stop the hemorrhaging of jobs. well, investors went on a tear with all of this. and all indicators hit record highs late yesterday and look at this. for our followers on radio, listen to this, we will open up again this morning, not much, but maybe 30 or 40 points, a new high, another new high. here it comes. this is not what you're seeing though in the establishment media. look at this, states and major companies break with trump's decision with exit climate accord. that's "the washington post." our disgraceful exit from the paris accord, that's the new york times. and the breakfast shows on tv were all about the threat to the planet. they've got it wrong. president trump did not say

global warming is a hoax. he didn't question whether humans are warming the planet or not. he withdrew from what he said was an unfair climate deal that hurts america and he says renegotiations starts now. so do we, "varney & company," the friday edition, is about to begin. ♪ ♪ let the good times roll ♪ >> oh, let's sing along, shall we? let the good times roll, the good times are rolling. the dow coming off another record close. by the way, yesterday hit the 16th of this year, right now, it looks like more gains at the opening bell. those futures show a gain of 35, maybe 40 points on top of the gain yesterday. peter morici is with us, the tenured economics professor at the universi okay, are we off--

let's deal with the markets, i know you're not a market commentator, but is this the beginning of the second leg of the trump rally? >> it could be. i wrote jt before mr. trump became president there was a lo the in the market that was positive and i wrote it again after he became elected, there's a lot of potential gain in the market. my feeling is the equilibrium capital is much lower than it used to be, more in the range of 3 1/2%, than 51/2%. as a consequence, the sub stainable price ratio earnings in the stock market is around 35. the historical average for the last 25 years has been about 25. lots of room to run here. my feeling is that stocks can go higher. they could get ahead of themselves and we get some pullback, but overall i see upward momentum. stuart: that's peter morici on the markets, stay there. i've got more in a moment. let me deal with the paris climate deal. business leaders are coming out against the president's

decision to withdraw. tell me. ashley: announcing they are quitting the advisory council's involved with the trump administration. beginning with elon musk said he would do that, the ceo of tesla and spacex tweets out. i'm departing the presidential council, climate change is real and leaving paris is not good for the world. and bob iger, as a matter of principle, i resign over the #paris agreement withdrawal. and for the first time ever lloyd blankfein, head guy over at goldman sachs, sent out a tweet andis first very tweet. today's decision is a setback fo the environment and for the u.s.'s leadership position in the world. #parisagreement. stuart: i think there's some grinding of axes there on the part of some of the executives. we'll get to. and peter morici, on balance is our withdrawal from the paris climate accord is good thing

for a bad thing for the american economy? >> i don't think it's going to have nearly the consequences that either side said. a lot of americans companies are positioned towards greener technology and so forth and we're going to be leaders in selling that kind of technology to the world, one way or the other. i thought he could have played it better to get more out of it. he could have said i want this renegotiated in the context of a whole new trade package with china and try to get the europeans on board. instead becoming increasingly disenamored with china, not doing its share in the global system. he basically spend a the lo lot of chips and didn't get the effect. stuart: okay, i want to deal with the left, politically, they're not happy with the paris accord withdrawal. i'm going to start with hillary clinton. she tweeted this. a historic mistake, the world is moving forward together on climate change. paris withdrawal leaves american workers and families

behind. nancy pelosi tweets this, president trump's decision defies all common sense. withdrawing from the paris agreement is reckless act on climate. al gore released a statement. removing the united states from the paris agreement is a reckless and indefensible action, it undermines america's standing in the world and threatens to damage humanity's ability to solve the climate crisis in time. stuart: joining us now claudia tenning, leaves americans workers and families behind, your response to that? >> it sounds a little dramatic to me, honestly, look, this was a-- this agreement i support being stewards of our environment and we need to care for our environment, but this agreement actually was negotiated outside of the political arena, it's like a treaty, senate didn't pass on it, billions of dollars were committed in taxpayer money to give to china and numerous other countries that are going to-- and other smaller governments

that are going to use the money for what? with no strengths attached. no proof it would have any change or real effect on climate, over what 40 years? so, is it a good use of taxpayer money, almost 20 trillion in debt, and i think it's good that the president took the leading role to support american workers, and to say, let's renegotiate. let's look at this. what effect do we have in using taxpayer money. that's my primary concern. stuart: i think we're forgetting. the president went up in the rose garden, he said we're withdrawing from the paris climate accord. and after that applause, the need immediate renegotiation starts now. >> absolutely. the same hysteria on the left you're hearing over and over, honestly is getting tone deaf. my district was a trump supporting district. my district wants to see jobs and rust belt. in my district alone are some the largest oil shales,

marseles, untouched thanks to the u.s. government. stuart: i know your area well. you'll be pleased to hear this. >> here we go. stuart: we're going to talk to you about hillary clinton because hillary's blame game continues. roll that tape. >> yes. >> the more you dig and the more you understand what we were up against and taking me out of the equation so that it's not about okay, what happened to you, it's what happened to us and particulartp concerned about the role that russia played and the very serious interference that we know they were responsible for. stuart: okay. i'll bet you want to see hillary clinton run again, don't you? >> yes, do i have hazardous duty pay for me coming out here and being subject to that. >> as a woman republican who has run against the establishment, i've never been

endorsed by my local republican committee, i've won as an underdog, as a woman, supported by men and women alike. i'm tired of hearing about this reverse sexism. there's sexism, it's ridiculous. it's really ridiculous. women are elected today as policy leaders. i lead women on policy not on whether or not they're women or not. it's just the wrong message to send. it's about leadership, not about what sex you are. stuart: a few years ago, hillary clinton, while running for office in new york state did, as i recall, a listening tour in your area. >> absolutely. stuart: upstate new york, which is indeed the rust belt. >> yes. stuart: and i think part of the reason for her loss was that she promised jobs and absolutely did not come through with those for your area. >> absolutely my business is in clinton, new ork, so, hillary and bill have been to my region a number of times and they have done nothing to improve jobs. she promised 200,000 jobs on her listening tour. we've lost probably 2 or

300,000 jobs. my family owns a manufacturing business in the heart of central new york up there, in rust belt country and we're still thereafter 71 years not because of the policies of the liberal left in new york, in spite of them. and we need exactly the dosage we're getting from trump to reduce taxes which i know you want to talk about next time i'm on. stuart: yes. >> we're going to be working on that in congress, reducing taxes and regulation and repealing dodd-frank. stuart: here is how i want to end it. i want you, congress woman claudia tenney to go back to d.c. and tell people if we want to get this economy going and we need to get it going, we need a tax cut this year. >> we are going to have a tax cut, i promised you that last time i was on. >> and now-- >> we're on break. we'll be back on tuesday and we'll be at it. a pleasure to be on, thank you. stuart: the news is coming thick and fast this morning. we've got an all-star lineup to cover it. later this hour, budget

director mick mulvaney. left says he is starving children. top white house economic advisor, geri gary cohn and haro haro geraldo rivera and what does he say about hillary clinton. and there are only 72 radioshack stores left in the country. and 1,000 radioshack stores closed this week alone. ashley: wow. stuart: remember the days when you couldn't walk into a mall without seeing a radioshack shack somewhere or ever. ashley: what's a mall? >> another story, wal-mart has an answer for amazon's same day delivery. asking its employees to deliver packages on their way home from work. and we'd be remiss if we failed to note this, that is the navy's newest aircraft carrier

u.s.s. gerald ford, price tag nearly $13 billion. the question, is that money well spent? and here is the man who will answer it, general jack keane is next. ♪ when heartburn hits fight back fast with new tums chewy bites. fast relief in every bite. crunchy outside. chewy inside. tum tum tum tum new tums chewy bites.

>> the first of a new class of aircraft carrier has been officially delivered to the navy after more than a year of delays. it's the u.s.s. gerald ford, with a price tag, oh, i'm sorry -- i should be talking to you about lululemon, that's the stock on the board. ashley: i was going to say, they have an aircraft carrier? [laughter]. stuart: no, there you've got me. no, no, the new product lines at lululemon raised their forecast and the stocks go up 15%. here is another one, restoration hardware, whoa, down really big. ashley: yeah. stuart: a dismal forecast and they're going to get down 21% at the opening bell. now, let me get to the u.s.s. gerald ford. it has been delivered to the u.s. navy. it's the latest of a new class

of aircraft carrier, there's the price tag, 12.9 billion. come in, please, fox news military analyst and a welcomed guest to the program, general jack keane, welcome back. >> good to see you. stuart: for the benefit of our viewers who are not military people, first of all, tell us what do you get with an aircraft carrier battle group? >> well, it's probably the aircraft carrier itself and the 18 to 19 ships that surround it. probably more than anything else, and many of the other services that demonstrates american military superiority. what you really get is forward presence, with are we need it in the open common waters around the world and i think, the aircraft carrier and its battle group certainly is very-- provides tremendous military assistance when we're fighting wars as we have been for 16 years. what they don't get a lot of credit for is the stability they provided for many years out in the pacific where there's been huge economic growth and prosperity. because of stability in the

reason. china is certainly beginning to tramp on us somewhere out there, and we understand that. what's happened the past 20 years is remarkable and the united states military has been part of this. stuart: what is this i hear about speculation about china having a new super missile that could knock out an aircraft carrier? >> they have missiles that can knock our ships out and they've got a very good military strategy. they're not building a military that looks like the united states, they think the soviet union made that mistake and lost that arms race, so to speak. so they have more of an asymetric look. stuart: can we defend? >> yes, we can, but they can get through. they want to keep the carrier battle group at distance not bring it in close and they can

range our bomber bases in the pacific with their missiles. they've developed quite an offensive strategy now that goes to some of our vulnerabilities. stuart: i have to ask you about our withdrawal from the paris climate accord. do you think that climate change is a threat to national security? >> no, i don't, i don't agree with that. i think we all have to be good stewards of our own control of our climate to be sure and i think the united states is leading the world in that. i mean, we're the country that's leading the world in emissions control and that's what the hypocrisy of the deal is all about. you've got china and india out there who are growing, growing emissions, and they don't have to do anything until 2030. it makes no sense. it bothered me from the outset. it was kind of like a, you bring the world leaders together and it was a feel-good thing, that they think they're doing something, but you get down into the fine print, and there's not much really happening.

it's actually stifling growth and that doesn't make any sense. stuart: general, i've got 30, 40 seconds left. can i go back to the aircraft carrier. >> sure. stuart: there's three more brand new aircraft carriers being built currently which will come on stream later. is that right? >> yes. of this class. this class, we started with nuclear powered aircraft carriers in 1961 and we make technological changes to it. this has a number of technological changes to it, good news 700 less people on board and operates more efficiently, costs less to operate. and there will be two more of this class built along this technological line. stuart: you want more spent on the military more than budgeted for? >> i don't think the president's proposal goes far enough to rebuild the military in the manner he was talking about, it's only a 3% increase in defense spending over obama's plan for 2018 and it's just, it's not enough.

stuart: general, i don't mind paying for an aircraft carrier so long as it's our aircraft carrier and it's better than the other guys. that's my point. general jack keane, thank you for joining us, sir. >> good talking to you, stuart. stuart: yes, sir. stuart: the latest on kathy griffin, she's lawyering up and now she claims, she is being bullied by the trump family. i guess you could say i'm a little surprised at that. more after this. think again. this is the new new york. we are building new airports all across the state. new roads and bridges. new mass transit. new business friendly environment. new lower taxes. and new university partnerships

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>> you know, this does not make for pleasant viewing, tiger woods you can seeim struggling to take a breathalyzer test, a 0.00 on two alcohol tests and that backed up his claim that alcohol was not involved. he claims unintended side effects to prescription medication, that's what caused his condition. stuart: all right. sad to see. kathy griffin says the trump family has bullied her and, wait a minute, ash, she's hired a celebrity lawyer. ashley: who is she going to sue? according to tmz she hired lisa bloom and she'll hold a news conference to explain, quote, her true motivations behind that disgusting image of her holding the fake severed head of president trump. she's going to lash out apparently at the president

promising to talk about that bullying she claims from the trump family that she has endured. you know, she's apparently been in hiding since this whole thing went public. you know, we have no idea what claim she's going to make, but how she can claim be a victim in all of this is beyond me. stuart: how you can do that to the president's family, particularly 11-year-old barron trump who reacted very badly to that photograph. ashley: of course. stuart: how you can turn around and say they bullied me, that's what i don't get. i don't understand that. ashley: people are rolling their eyes. we'll see what she has to say. is she going to sue someone? why has she got a lawyer. stuart: why does she have a lawyer. ashley: you made a tragic horrible error of judgment and go out and get a lawyer. stuart: is she going to sue cnn which dropped her from the new year's eve celebration with anderson cooper? who are you going to sue? let's move on, shall we? i think we should. ashley: yes. stuart: don't forget oil, please.

it's way down again today. we're back to about, i think $47 a barrel, we've touched 46 earlier. i think this is to some degree from rising supply. if we backed out of the paris accord, and we've backed ouf the paris accord, and tha takes the reins off our oil business, fracking should do well and hence the price of oil going down. we should check out the price of gasoline because i think that will be retreating back soon back towards $2 per gallon. we'll check it for you. ashley, we had a triple, yeah, that's you. ashley: that's me, hello! . stuart: sorry. ashley: that's all right. i know my name. stuart: i'm going to ask you about a market analysis. ashley: i would love to give it to you. stuart: look at that, we're going to open higher this morning after hitting a record high yesterday with better than 100 point gain for the dow jones industrial average. all three of the indicators an all-time record highs.

ashley: let me throw it out here and everyone else can jump on it, but i think the trump train, if you want to call it, has been reversed out of the market. the corporate profits were fine and the economy not going gang busters, as we saw from the jobs report, is moving in the right direction. if you own a factory tore a small business, are you going to hire near two, three, four, five, ten people now? i don't think so. do you believe there's going to be 3% growth this year? now you're starting to worry. look, there is optimism out there, the sentiment is good. the consumer is holding back a little bit. all of this in a holding pattern waiting to land at the airport because we're waiting on washington. stuart: yes, we are. ashley: however, the fundamentals overall for the market are pretty good, but i believe the trump trade has been taken out of the market entirely. stuart: okay, that's pretty good market analysis from a guy without too much market analysis. ashley: put that in your pipe and smoke it. stuart: let's bring in, put the camera on our guest, maria bartiromo. okay. i'm going to ask you this. do you think we're now

beginning the second leg of what was the trump rally in november. second leg. maria: i do. stuart: really. maria: this number today indicates, really, the economy stuart: that's the jobs number. 138,000 jobs, that's it. maria: and i think what this jobs number tells us, business is cautious. the last eight years, business has been in recession and they've been sitting on cash and strangled by the regulatory environment. the businesses have been sitting on cash and that continues right now. they're still cautious because they're waiting for washington for sure. stuart: yeah. maria: and i think the tax story is as important as ever. and congress needs to get on the ball, seeing these numbers. stuart: i think that-- i'm going to say lousy jobs number. disappointing. maria: it was a disappointment. stuart: 138,000, i think that's an abberation. if you look at yesterday, 253,000 private sector jobs.

maria: look at tax receipts. you don't have the income growth you need to see on the part of consumers, they don't have income growth so they're in the spending the money. that's create ago vicious cycle of the numbers and tax-- >> why do you see we're on the cusp of the second leg up of the market. maria: i think it's because of profits. profit are not coming from a spike in demand. they're coming from a weak dollar and they're cost cutting. they're not seeing the demand that they say. 15% in the first quarter. when you dig deeper, it's not broad-based in terms of economic growth. stuart: i'm about to mention the federal reserve, i don't do that very often, but i'm going to do it today. you've got only 138,000 jobs created last month and the yield on the 10-year treasury, all the way down to 2.17% which i believe is the low for this calendar year. ashley: since november. stuart: you don't expect the federal reserve to raise interest rates later on this

year, that's good for the stock market. if they don't raise aggressively. that's good for stocks. maybe that's whye're going to open higher in ten seconds and why we had an all-time high on the dow industrials just yesterday here we are, 9:30 precisely. are are we going with the market. down 11, down 12, down 13. we were not expecting that. i'm right, maria, on your show earlier. you were looking at a futures market that showed 60, 70 reports. then the jobs report and opening lower, and now we're up. maria: one day is really nothing to make of the trend. i think it's really important to recognize that we need some kind of stimulus in this market. the federal reserve has got to be thinking about their language right now. if they raise rates and have language that things are all gang busters and things are going well it's the economic

recovery gaining traction. stuart: as of right now, we've got an all-time high for the s&p, that's where we are. there we go. that's an all-time high. 2,430. i remember celebrating when it crossed 2000. it's the same story with the nasdaq which indeed has gone straight up since the election. and i think it's up 20 odd percent of another 11 points, 10 points now, 6,000, 250. ashley: the financials are the worst performing sector maybe because of the fed and the continued low interest rate environment where they're not getting money back on any of their loans. stuart: they want money higher so they're taking it on the chins. maria: and not making any money in money market accounts. stuart: on the screen all on the down side, i used etf, the

proxy for the financial area and it's down quite sharply this morning as well. and let's look at the big tech names, we follow, the 10-year treasury yield is 2.17%. that's a big deal in today's market. now, the big tech companies, look at them go. they are on the upside. maria: and you say that's a big deal in terms of the 10-year yield. we should explain when you have rock bottom interest rates that's indicating a weakness in demand. how come the stock market is at all-time highs and bond market shows interest rates where they are, who is right? yay, the bond market is right. stuart: you've got it right again.

this is going to be the second leg because we're continually getting bad numbers like the jobs number. we'll see the fed screw it up. we're all beating around the bush here this morning. every time we raised rates last three times. 10-year treasury yield goes down. big money bets out there are betting that the fed will get it wrong, tighten to soon and squash any type of recovery. i think recovery is too big of a word rigow. so we'll start to see same old, same old from five years ago where money flows into the stock market for all the wrong reasons. stuart: aren't we seeing the writings on the wall for congress? not very good jobs report, therefore stimulate economy with tax cuts this year please, do you agree with that, scott? >> 100%. that's why i'm getting angry. what more proof do they need? will they go through another six

or seven years what they just did? they have the opportunity to make change. sentiment is going in the right direction. fill it in with some great moves from congress and we're all there. right now it needs to be about growth. and growth is not there. >> stu, i'm not defending congress. they recognize, they will lose big, and lose big in 2018 if they don't get important tax legislation down. the problem is the devil in the details. fighting overboarder adjustment tax. speaker paul ryan will not give up on border adjustment tax. gary cohn said not happening. steve mnuchin said it is not happening. president trump is against it. paul ryan wants one trillion dollars to come up with revenue neutral for the taxes. ashley: what happens? nothing. stuart: scott shellady is getting angry. we've been talking about this six months this calendar year. what have we got? absolutely nothing. nothing at all. calm down, everybody. go from jobs to paris.

we have withdrawn from the paris climate accord. wait a minute. scott shellady, why are you shaking your head in apparent disgust? don't you approve of our withdrawal? >> i do approve of our withdrawal, like arguing against people about their religion. they don't listen to what you have to say. they're so set in their ways. that is saw with all ceos coming against the move. i'm frustrated by the fact if anybody can tell me how letting india and china do whatever they want to do until 2030 stop flooding in miami i would like to hear it. up until now it is absolute nonsense. we still can't get away from common sense. we're still following this weird religion of climate change. doesn't make sense at all. stuart: ashley, you be an economist for a second. is it good for the dow and economy because we've withdrawn from paris? ashley: yes. you take away regulations. those argue we need to go to clean energy that will create new jobs in that sector.

you know what? allow businesses to do what they do best. we guessed earlier, we lead the world in cutting emissions. we should get credit for that. not be lambasted pulling out of an agreement incredibly vague and costs the american taxpayer. stuart: look at that left-hand side of your screen, new high for the dow jones industrial average. ♪ play those trumpets please. that is intraday high to be. if it closed at this level would be all time closing high. we're up 21 points, 21,162. we should bring in the price of oil because we're down, significantly lower, $47 a barrel, down nearly 2%. couple of individual stocks, they're moving. here we go, parent of luxury home furniture store, restoration hardware taking it on the chin, down 23%. the company looks like more retail ice age i would is a say, restoration hardware. >> i'm surprised at this move, stu, only because the housing

market is one of the bright spots of the market. with housing buildout comes buying things for the house. resistor race hardware has had some sharp moves over last couple years. i think it is because big stakes owned by big investors, once they give up, they're out. if you have any disappointment in earnings, they cut and run. that i think is what you're seeing. stuart: could be people not buying $5,000 couch. i'm speculating. staying on the retail ice age. we invend expression. this is our story. we'll give it to you. big name you know it, radioshack. it closed more than 1000 stores since memorial day weekend. there are only 72 left. this was a retail titan in the 1980s. i remember it. who doesn't remember radioshack? >> blast from the past. stuart: that is retail ice age. ashley: i'm amazed 72 are open. stuart: i can't find them. >> that is the room news. stuart: walmart, staying on

retail, asking employees to deliver packages on way home from work. any comment on that, scott shellady? >> i'm just thinking about my obligatory one or two pints after work might get in the way, i might deliver it to the wrong house. that is what i'm more worried about. that is funny. we'll see if it works. stuart: wait a minute. you drink beer in england. you seem to be living in england. you drinking beer there? >> every now and again, i'm partial to a pint or two, a quick swiftie. stuart: make it very clear. they no longer serve warm beer in britain. it is usually chilled lager, am i right or am i right? >> you're right. there is, actually right. stuart: want to clear this up. people think i'm living in england or something. i'm not. >> i don't think they're eating bangers or mash. stuart: what? >> bangers and mash. bangers and mash. stuart: have you ever had a full english breakfast, friday egg,

friday toast, friday bread, friday tomato, all dipped in bacon fat? heart attack in every bite. >> smothered in baked beans. stuart: i digress, did i? let me get back on track. amazon, whoa, listen to this, spending $4 billion on video. nt i guess. we heard netflix is spending 6 billion on its own content. ashley: yes. stuart: you think hollywood is getting worried, maria? >> i do. people are watching amazon and netflix real closely. you know why? they're putting out big checks for content. they're paying up for content. willing to pay up for sports. you saw what happened to major league baseball. that is the last man standing what brings in big audiences, sports. stuart: you got it. favorite companies john deere, i drive one of their tractors.

betting $5 billion on president trump's infrastructure plan. buying privately held road construction company in germany. what do you know about this, scott? >> i think it is a good move. i also, we have john deere tractors on our farm as well. very good with and well-run. ultimately that is a good play, if we start to see movement out of congress for some sort of infrastructure spending. we're all still waiting. every part of our lives is waiting on congress to get something through here. it's a good play. we'll see if it comes to fruition, good for them. stuart: he is right. we're still waiting. obamacare reform. tax reform. infrastructure plan. >> maybe they can get to move on to struck instructs, stu. that is the common ground, right and left, have you can instruct. unfortunately will not get participation on tax reform or obamacare when it comes to the left. ashley: john deer is in road construction. make all the roads green and yellow? ould be inresting. stuart: they me fine tractors, let me tell you. >> yeah they do.

stuart: dow jones industrial average is up one point, very disappointing jobs report earlier this morning. yield on 10-year treasury, key interest rate down to the low point of the year. thank everybody here. scott shellady, still in london. maria bartiromo thanks for joining us on set. appreciate it one and you all. don't forget to watch "wall street week." tonight maria sits down with home depot founder ken langone. 8:00 eastern on the fox business network. back to the market, we're down, call this dead, dead flat. we're down a point, all right, we're down a point. 21,142. look at the share price of lululemon. we always call them the yoga pant people but they have a much broader array of products these days. nicole what is it going on? the stock is up 13%? >> company came out and earnings and revenue beat the street. that is great news.

they announced store closures and store openings at same time. they have a children's brand. they are closing of 40 of 55 stores. they're restructuring the company. they will be opening some new stores and cfo noting this. the ceo said they're seeing strong growth abroad in europe and in asia. they have a lot of trendot they plan on opening a new york city fifth avenue, they had a disappointing number, set of numbers last time. this round was great. so they're doing well and the stock popped. but big picture, down this year, about 25%. since the ipo in 2007, despite some pr mishaps along the way, it is up 250% for lulu. stuart: i would take that, you know. 10-year spread, you get 250% return. i would take that, even though i didn't know what yoga pants were 10 years ago. that is another story. nicole, thank you very much indeed.

see you shortly. it is friday, we like to bring you what i call, gee whiz stories for you. this is the dragonfly drone. ashley: coolest thing ever. we think of drones, we know roughly about the size. check that out. how about that? it has all sorts of implications. of course, let's be honest it would be amazing spy tool. so small it can get into areas. right now flying straight. the biggest challenge for a drone this small is battery you power, right? stuart: yeah. ashley: it can only last for short amount of time. they find out by using light they can actually re-energize this particular drone. it is in the process but they believe they can get it to essentially behave just as a dragonfly would. this is james bond stuff, right? there was the a movie where they had one of these things. i wonder if they can actually do that. now they're working on. stuart: it is ours in america. i saw howard hughes medical institute on top left.

i guess that is one of ours. ashley: it is very cool. stuart: i like it. we'll take that. ashley: just don't swat it. stuart: don't swat the thing. ashley: expensive. stuart: probably 1000 bucks. blue apr, the meal kit company deliver your door every day? they a filing i believe to go public. have i got that right? ashley: they have done all the paperwork, preliminary paperwork to do that. what is the valued at? right around $2 billion as of 2015. listen, this company, it, because we don't know, it is still private, but we understand that we're getting a little insight into blue apron. these are, they send the food to you, all prepared. not, you prepare it but give you recipes. i used it. my wife, good quality used. they made in revenue 244 million for the first three months this year. costs are higher but had a $253 million loss first three months of this year. people like the concept. they have a lot of competition in this space.

we don't know when they will go public. but they are soon. they filed paperwork. there you go, blue apron. stuart: who would have thought a few years ago you could have a company doing very well that sends you a box with a complete meal in it? everything you need for that meal in it, delivered to your door every single day, who would have thought? ashley: we're slowly becoming people don't have to leave the couch. everything is brought to you, even mcdonald's. stuart: i live on it. ashley: exactly. stuart: quick check of the market. it is friday morning. what we have here is a market going nowhere. we're up six points. i should tell you that is a new, i think intraday high for the dow jones industrial average. s&p and nasdaq are moving higher. backdrop of a disappointing jobs report. low interest rate on treasury 10-year bond, got it. fire up the budget debate shall we. here is how we do it, democrats taking the white house to task over the budget. roll that tape.

>> this budget, along with relentless attempts to repeal the affordable care act shows unimaginable level of cruelty. >> 125,000 children who will be less healthy because of trump's budget. it is not an overstatement to say that some children will die because of this. stuart: some children will die because of the budget and hillary sends it is cruelty. look, look who's here? the man who wrote the budget, none other than mick mulvaney, white house budget director. account for yourself, mulvaney. you are going to starve children and you're a cruel guy. your response? >> it was, i think you guys didn't include the segment where someone accused me of ethnic cleansing. someone else accused me wanting to murder a million people overseas. thank you for toning it down a little bit as we go into the segment. stuart: you're welcome, mike. what is your response? it was harsh criticism, assuming

that you are going to take stuff away from a lot of people who need it. that is the essence of the criticism. respond to that. >> that washington use as different english language than ordinary people. in this town if we spent $100 on something last year and we spend $102 on this year, believe it or not, i'm not making it up, we call that a cut. you would call it increase. i would call it increase. i tell my wife when we do that at home, in d.c., we call it a cut. most of the dramatic, not all, but dramatic reductions in the left referring to in the budget, us growing at slower rate. stuart: we're not starving children? we're not being cruel. i'm not being foolish about this these are serious charges. can you refute them totally, that no child will die, no child will starve? >> they're serious charges but completely unfounded in the truth. they are offered for political demagoguery.

we did an interesting exercise at office and management and budget and looked a at some of the things democrat said about the reagan budgets in in '80s, bush budget after that, headlines in the 2000s, stories are same. these stories were written a long time ago. they roll out irv budget season. it is unfortunate. what we do promote discussion about the taxpayer. that is what this budget was designed to do, to change the narrative, to actually look at the way the government spend money through the eyes of the people that actually give us money in the first place. it is unfortunate we can't have that discussion. my guess is the left doesn't want that discussion. that's why we're hearing them say all completely hyperbolic and indefensible things. stuart: director you're basically in charge of america's finances. in some sense you are. we have just withdrawn from the paris climate accord. do you think that improves america's finances? >> i absolutely do.

you and i talked about this before, stuart. that every time i'm in the oval office talking to the president about a policy, he asks me does this help us get america's economy back on track? the number we use in our office is 3% gdp growth on annual basis, a sustainable 3% at that that is the filter we look every single one of our policies here at white house and that is exactly what we did as part of the paris discussion. being in the paris agreement going to help us to revitalize the american economy? the anticipates was no. so we got rid of it, fairly simple. stuart: one of the big tal points this morning a disappointing jobs report, only 138,000 jobs created last month. the writing seems to be on the wall to congress, stimulate the economy with a tax cut. i believe you were a freedom caucus guy before you took budget director's job. you're laughing. >> i am. i was. i'm not ashamed of that.

stuart: i have been harshly critical the freedom caucus holding up obamacare reform and maybe holding up tax reform as well. surely the republican party understands if you don't get this done you're in deep trouble next year? >> i agree with your conclusion. i disagree with some of the suppositions. half of the freedom caucus supported the obamacare repeal and replace package in the house at very early stages. it was actually a combination of folks on the right and in the center of our party that prevented that bill from moving forward as quickly as it possibly could. so i disagree with the premise that the house freedom caucus is the one holding things up. i agree with the conclusion. what you're seeing the jobs numbers what we saw today are reflective of that. what do i mean by that? the jobs numbers may reflect industry, capital sitting on the sidelines waiting for to us repeal obamacare. waiting for us to get to tax reform before they commit fully to the economy. they like what they see out of the president. you've seen that in the stock market.

in terms of actually making those invests that drive up job numbers, drive up gdp numbers i think they're waiting on congress to act and that should be as much motivation they need to get back to work. stuart: before you go, sir, earlier this hour on this program we interviewed fox news military analyst jack keane, the new aircraft carrier, the new uss gerald ford. roll tape and we'll get your comment later, sir. >> i don't think the president's proposal goes quite far enough to rebuild the military in the manner he was talking about. it is only 3% increase in defense spending in 28 teen over obama as plan for 2018. and it is not enough. stuart: director, he is former four-star general. he says that 3% boost in military spending is just not enough. you're in charge of the budget. can you give him anymore? >> i agree, disagree. it isn't enough to accomplish everything the president said. it is just the first year.

we're in process of laying out new strategic plan to grow the military in order to conform the president's promises. you can't do that. it is physically not possible to do that all in one year. $54 billion, we hear 3% above what president obama suggested but not what president obama actually approved. it is 10% increase over what president obama actually approved in his last year in office. that is what we focus on. also $54 billion is of increase gets us back to where we would have been without the sequester, another promise. i disagree with the 3%. i think we all agree we're moving things in the right direction for first time in a long time. stuart: can i ask you if you're enjoying yourself? >> i'm having a blast. stuart: that was a quick answer. you're having a blast, really? >> yeah. stuart: you're the focal point after the love criticism and some of it is very harsh. >> it is but it is wrong. listen, worst kind of criticism is the criticism that's right.

accuse me of being wrong when i'm wrong. that is not very fun day of work. accuse me being wrong when i'm right, that is funny can push back. i enjoyed doing that for the president. i enjoyed doing that for the president. this is great place to work. all stories about discord is wrong. everybody likes coming to work every single day. we're making a difference. stuart: we put you on live on this program once when you announced the budget and again when you were testifying before congress. on both occasions the ratings stayed strong. in other words, sir, you're a valuable guest because you don't turn the audience off when talking about thbudget. that is unheard ofn america. >> irony i took the job because they promised i could work and not have to go on tv. there you go. stuart: look at you now, having a blast on tv. mick mulvaney, budget director. it was a pleasure and thanks for being on the show sir,. >> thanks, stuart. stuart: yes, sir. ashley: it is not easy to make the budget interesting but he

speaks very clearly, to the point. it shows he enjoys what he is doing. it is a good combination. stuart: he is articulate. ashley: he is. stuart: he knows his stuff and he is personable. you can have a conversation with the man. ashley: it's a wonderful thing. stuart: amazing. what a country. what a country. what a concept. check the big board. we're up only just, a gain of two points. look at that level, 211,145. that's the -- 2,101,145. that is the stock market. look at the bond market. interest rates, represented by the 10 year treasury yield all way down to lowest level of this calendar year. ashley: what does that say? says investors really not sure about this economy. they go to the relative safety of the government bonds. means prices for bonds go up. yield goes down. that is what it is telling us. stuart: also suggests maybe fairly soon we'll get further declines in the 30-year mortgage

rate. ashley: yes. stuart: because we dropped below 4%. ashley: freddie mac came in at 3.94%. stuart: it did yesterday. you got that right. i have got liberal lunacy on campuses. hunter college offering a course called abolition of whiteness. spring it on ashley. he will have to deal with this. ashley: thank you very much. hunter college is public school in manhattan, part of the city of new york system. they are offering this class. apparently, according to the description it examines how whiteness and white supremacy and violence is inrtwined with conceptions of gender, race, sectionalty, body ability, nationality and age. not quite sure what all of that means. but there is getting a lot criticism. those say this doesn't bring people together. this doesn't create unity on college campus. the teachers who work in academia, these class is bit distorted. conservatives look for titles

and rail bit on social media. you have a class here called the abolition of whiteness. by the way, uw-madison up in wisconsin teach as course called the problem of whiteness. on the premise that white people are racists. there is whole college course on that. we'll have more when this crops up. stuart: one more. hold on a second, one more on the prompter here. it is, got some students at louisiana state university. ashley: yes? stuart: they claim that their tiger mascot is racist. this is just a tease. i don't have the full story just yet. ashley: same theme. stuart: same theme. they say it represents white oppression. that is what they say. about that college mascot. ashley: i'm not sure i get that but that is what they're saying. give you the full story a bit later on. a big guest coming up, that will be president trump's top economic advisor gary cohn. we'll get his take on what i'm calling disappointing jobs report this morning.

we'll be back after this. risk of stroke due to afib,ver a type of irregular heartbeat not caused by a heart valve problem. but no matter what path i take, i go for my best. so if there's something better than warfarin, i'll go for that too. eliquis. eliquis reduced the risk of stroke better than warfarin, plus had less major bleeding than warfarin. eliquis had both. don't stop taking eliquis unless your doctor tells you to, as stopping increases your risk of having a stroke. eliquis can cause serious and in rare cases fatal bleeding. don't take eliquis if you have an artificial heart valve abnormal bleeding. while taking eliquis, you may bruise more easily... ...and it may take longer than usual for an seek immediate medical care for sudden signs of bleeding, like unusual bruising. eliquis may increase your bleeding risk if you take certain medicines. tell your doctor about all planned medical or dental procedures. i'm still going for my best. and for eliquis. ask your doctor about eliquis.

stuart: president's withdrawal from the paris climate accord. the planet is in danger. our grandchildren will suffer. pesten, faminefloods plague, here they come. can we get something clear? paris was a lousy deal, president obama who was at best on this deal inept. how it is possible the world's greatest carbon polluter china, is allowed to keep polluting 12 years, while we in america have to cut emissions drastically right now? how is it possible, we, america, have to pay out hundreds of billions of dollars to developing countries and they don't have to do very much except take the money? and how is it possible to claim success for a deal that would maybe lower the temperature of

the planet .2 degrees celsius by the end of this century? they can't forecast the temperature for this weekend. let's not forget that candidate trump consistently said he would withdraw from the accord, and he won the election with that in his campaign platform. paris was negotiated by president obama. the iran nuke deal was negotiated by president obama. both are examples of how not to negotiate. with both deals, president obama caved, at our expense. president trump stood in the rose garden and announced we are leaving. there was applause, and then he said, woe immediately start to renegotiate. this negotiator in chief will surely be better than the last one. second hour of "varney & company" is about to begin. ♪

♪ stuart: i'm told we're playing britney spears because it is friday. i have no idea the relatiop between the two but nonethels, that is wh wre up to on arney & company." now the jobs report this morning, disappointing in the extreme. only 138,000 new jobs created. dow industrials up four points but at a new record high. couple of individual stocks they're really moving. resistor race hardware. we know this company is down 27%. they made a dismal forecast. ouch, that hurts. strong sales however of new products at lululemon. and it raised its forecast and the stock is up 12%. look at this, amazon has hit another all-time high, -- $1001

per share. still on markets and look who is here, gary cohn, chief economic visor to president trump. great to have you. >> great to be herer, stuart. stuart: it was disappointing jobs report, only 1,138,000. your response, sir. >> i don't agree with that, look at the macro trend and unemployment rate down to 4.3% we're down to a level we haven't been to since 2001. look even broader index, look at the u-6 number. since the inauguration on january 20th, we've taken the u 6 rate down 1%. we added 200,000 people from underemployed, opart time to fullime bor report. the trend we have going is good. yes, it can be bedder. we said it could be better. that's why we're spending so much time about regulation and overregulation in the united states. we're talking about tax reform. we're talking about infrastructure.

we believe the white house can drive a much better work and job environment in the united states. there is very good news in thes report but we're committed to make it better. stuart: the writing is on the wall surely. if you only get, i use that word deliberately, if you only get 138,000 jobs last month, the writing is on the wall to congress, get going, give us a stacks cut please because if you don't, we don't get this economy moving. i'm sure you would agree with that point, wouldn't you? >> i agree. we're working with congress. we are still having very constructive meetings with congress. so there is the group of leaders at the senate and the house, and white house that are meeting regularly to hammer out a tax plan. we will be delivering a tax plan to congress by the end of the summer. we're going to expect the congress to act on our tax plan. stuart: can i interrupt you, gary, forgive me for interrupting but you said you are going to deliver a tax plan by the end of the summer.

that means that the meetings are over, you're drafting the plan as we speak, that accurate? >> we're working on a plan. as you know, stuart, these tax plans are very, very complicated. there is lots of details. we have to do individual taxes. we have to do corporate taxes but we also have to do pass-throughs. we're into the nitty-gritty details working on tax reform right now. we will have a very detailed drafted tax plan to be delivered to congress when they get back from the august recess. stuart: now, does it have to be paid for, if you cut taxes here, in the immediate future, you get less revenue because of those tax cuts. do you have to make it up with tax increases or revenue increases someplace else? are you going for that? >> well, stuart, we've said consistently and continue to say we'll pay for tax cuts in two-ways. we'll broad the base dramatically by getting rid of deductions. we're going to create economic growth by stimulating our economy by lowering corporate

tax rates. that is what we're going to do. we will use those two stimulus to pay for the tax cuts. stuart: if push comes to shove, would you be acceptable, would you find it acceptable to just cut the corporate tax rate, get on with it? that is the stimulus, simple, quick, easy, maybe democrats would he agree? >> we need to cut the business tax rate. there is no doubt in the jobs world we're in today attracting more businesses and more business opportunity back to the united states and stimulating more job creation is a top, top priority for us. in cutting the tax rate along with infrastructure and along with regulation is very important. so yes, cutting the tax rate on businesses is important. it is not as simple as just cutting the corporate tax rate because he have to deal with pass-throughs sit between the personal tax rate and business tax rate. stuart: you would consider it, simplified, slimmed down tax cut, you would consider that? >> weil consider everything. we are really driven to do the

big reform and cut. reform is still part of our agenda. president ran on reform agenda. we need to simplify the tax code. it is way too complicated. i want people to sit at kitchen table and do their tax return. the fact we have to hire tax advisors and tax planners to do our taxes doesn't make sense for america. we can do better than that people should sit at the kitchen table to do their taxes. we need to simplify the tax paying process in the united states of the. stuart: i sir i thought you were a democrat and that was your party affiliation before you joined mr. trump in the white house. we have democrats complaining loud by our withdrawal from the paris climate accord. i saw you applauding. do you think it's a good thing as a democrat? do you think it's a good thing in the economy that we withdraw? >> we are here to driving economic growth. i came to the white house to help the president's agenda of driving economic growth. we have to do that and that we know that is a key imperative.

we know what the ingredients to drive economic growth. i'm supporting the president on driving economic growth. stuart: you're good on tv. you i ask a question, you don't go on sidebars, right at it every time, always staying on message. gary cohn it's a pleasure. thanks very much for joining us, sir, we appreciate it. >> my pleasure as well. thank you. stuart: remarkable stuff, i got to say. i mean, i don't think mr. cohn is used to appearing on television that much but now, he comes on like a real pro. you can't deviate this guy. you just simply can't. i stay on the economy. look who is here, john lonski moody's managing director. okay, i want your reaction to i'm going to call it disappointing jobs report, only 13thousand. >> it is disappointinging. moving three-month average to

jobs growth is down to 140,000 of jobs a month if i go back historically, when the recovery drops to 130,000, guess what tends to happen six to 12 months later? stuart: what? >> recessions. stuart: do you think we're heading to recession? >> i would keep an eye on this thing, tells me hiring activity is running out of steam. not a total surprise. let's not forget that business sales growth hasn't been that great. profitability in a broad sense hasn't been that great. stuart: we got 253,000 new private sector jobs last month. >> that is different survey. stuart: yeah. >> okay. stuart: how do you square that. 138 from the government, 258 from adp. >> i will go ahead take easy way out, take average of the two. maybe we shouldn't get too panicky right now but this is worth taking note paying attention to. on positive side, gary cohn mentioned drop in unemployment rate, 4.3%.

that is down by nearly half a percentage point from a year ago. that is good news. in the past prior two recessions we would look at a quarter of a percentage point year-over-year increase by the unemployment rate. so the declining trend for the unemployment rate is a positive for the economic outlook. stuart: explain this to me. you just suggested that six months down the road it is possible we'll head to a recession, an yet we have the dow jones average setting new record highs daily? >> this is always the case. the markets are slow to recognize the inherent danger, the inherent risk. doesn't necessarily mean this will be happen once again. market is fairly confident we'll look job increases in excess of 150,000 per month on recurring basis fairly soon. stuart: that is not very good. that is just not very good. >> no, it is not. look at, recovery is eight years old. it is old. how many times do we have nine

or 10 or 11-year long recoveries? not too often. they're rare. stuart: i fault the republican party, i fault the republicans not being able to get something done with intention ofetting tax reform done by end of the year. if they have come out and got obamacare done, if they had a plan now for tax cut and looked like it was going to happen, this market would be going straight up, there would be no suggestion of recession. >> they have to get their act together through. push through those changes in tax laws that can get done. try to hit signals, don't go for the one home run. i'm bothered by gary cohn who is talking about we'll have a drastic overhaul. my good fess, that is almost impossible to achieve politically. try to cop accomplish what -- accomplish what is doable first. stuart: he stayed on message. >> when you swing for the fences too often you tend to strike out more often. stuart: ouch.

lonski, you're all right. thank you for joining us. >> my pleasure. stuart: uber posts ahundred million dollar loss. -- $700 million loss. next we have a guest that says their corporate policies are evil. they don't care about the consumer. we'll explain why after this break. louisiana state, people there say school's tiger mascotte is racist. that is represents white privilege, that guy, that mascot, white privilege, back in a moment. hat suit my needs, and i get back to business. ♪ buttrust angie's list to help., [ barks ] visit angieslist.com today.

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making every stay a special stay. holiday inn, smiles ahead. whether for big meetings or little getaways, member always save more at holidayinn.com stuart: we love to show you interesting video. check this one out. we have a russian cosmonaut and a french astronaut returning to earth from the international space station. the soyuz space capsule came down there by parachute. that is in kazakhstan. that is where that happened. check the big board, go nowhere friday market afraid to say. we're up three point as we speak.

that puts the dow industrials at 211,000 -- 21,149. that is new intraday hard. amazon, $1002 per share. shake your head. microsoft, here, i own some of that. we're not going to cheer but we do like to see microsoft at an all-time high of 70.80. got it. next story is about uber. they posted a 708 million-dollars loss. our guest, the aforementioned peter shankman is not a fan of uber. he is the hope of faster than normal podcast. he is marketing guy. welcome to the program. >> good to be here. stuart: i use uber a lot. you find them evil. >> i do. i used to use them. then i used to be a huge fan. then several things happened. they updated privacy policy without telling anyone, relaunch the app, tracks not only when

car is gets you, not only after you dropped off but for the next five days. why don't theydo they need to know you where you are five days after. stuart: i did not know that. i have the uber app. >> go into the settings you find still gps tracking. stuart: even though i tell my settings part, don't track me, don't tell anybody where i am. >> right. stuart: the uber app will still tell uber where i am. >> they used to be on all the time. now a few days. why? you don't need to know where i am six hours after i drop you off. stuart: i'm with you. you make a good point. >> this was company started by ceo, young kid, not that there is anything wrong. my company is young kid, i started great way to show women. i had a black car waiting for me. i was a baller. that was his words. so i think that until he grows up and until he, he brought in higher management, but then you have the whole issue with the

god mode where they were essentially tracking journalists on big screen, that journalist went out then. she went out there. now look, she has, came home the next morning. obviously stayed with that guy she meant. they were slut shaming journalists and slut-shaming reporters. it needs a lot of work, a lot of polish to become the company that wall street wants to be. i take it further, lyft, has taken advantage of everyone of their missteps. lyft is exploded. people are dumping the uber app hand over foot. stuart: you told me couple things i did not know. i appreciate that. i was skeptical of your appearance. >> most people usually are. stuart: got to talk to you about kathy griffin. you're a marketing guy. >> i am. stuart: kathy griffin, she says the lady, that dreadful trump mask, whatever it is. she says that the trump family is bullying her and she has hired a celebrity lawyer.

what are you going to say about that. >> love trump or hate trump, that is not what you do to make your point. i'm not sure who was advising her. she is known to be a little bit shocking. does new year's eve thing. the fact of the matter you have to use common sense, you know what, holding up head of someone like i'm a isis member, cross the line. the fact she couldn't see that to herself. i have a hard time pitying her and she is being bullied. stuart: hire a lawyer -- >> distraction. she is trying to distract from the story. been fired. already lost the job. this is last-ditch effort. stuart: will she go on the attack? you hire a lawyer to defend. i got that. >> she has nothing to attack right now. even if she sues someone, i'm not lawyer, very limited case. she, best thing disappear for a few months. doing small shows. she will come back. this isn't life-killing. she will come back. this is not smart move. whoever was advising her needs to be fired. stuart: you're a marketing guy. she is doing bad marketing. >> no question about it.

stuart: peter, a pleasure. appreciate it. again the stover, students at lsu, they want to get rid of the school mascot. it's a tiger. why? it's a racist tiger of course. they say it is racist. st looking like that. we'll try to explain it. i promise you. state of illinois, oh, boy, what a problem. drowning in debt, downgraded by zap. they can't pass a budget for third year in a row. live report from illinois after this. ashley: that was good. think again.

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stuart: said this several times this morning. now we'll explain it. students at louisiana state university are claiming that the school mascot is racist. deal with that, ash. ashley: it is an online petition

as you said that the tigers mascot is symbol of white oppression. that the mascot was picked by powerful white males for the confederate regiment called the louisiana tigers. here is what they're saying. louisiana state university named their mascot the tigers and named it during the height of jim crow south. this was a time when black men feared for their lives around treated as subhuman. this symbol is the most prevalent confederate symbol in the united states. no response yet from lsu. stuart: i'm going to move on. ashley: yeah, please. stuart: something really serious. ashley: yes. stuart: illinois, downgraded by s&p. that is standard & poor's, the ratings agency. they haven't passed a budget this that state for three years in a row. jeff flock is joining from us chicago. i'm, i believe, jeff, that that, their bonn of illinois are very, very close to being junk bond status, is that accurate.

reporter: that is accurate, sir. they are one notch above junk status this is the lowest of any state in the history of bond ratings they're at right now. in fact, if you look, the bond ratings of illinois right now is equal to that of kazakhstan, romania and indonesia. spain and peru have actually, and panama have better bond ratings than illinois right now. we have racked up almost a billion dollars, because there hasn't been a budget in two years, almost a billion in a b, with fees and interests because just they haven't passed a a budget. the governor was on the radio just a moment ago you have to pass my pro-growth business agenda. the democrat say, no. we're not going to do it. you need a state, a tax increase to get a budget passed. and it is an impasse just is not going away. i will tell you, i leave you with a shot, stuart. this may be, this fellow over here may be a symbol of illinois. that may be the state very soon,

sitting on the sidewalk with a cup out. stuart: that is tough stuff, jeff flock. very much indeed. serious subject indeed. thank you, jeff. check the big board, friday morning. we're an hour in the trading session, not got that much progress. although a seven-point gain puts dow at all-time high. look at that level, please, 21,152. that is extraordinary. democrats are truly outraged over the president's decision to leave the paris climate agreement. we will tell you exactly what they are saying. then there is susan rice, called to testify on the obama era unmasking of people connected to the trump campaign. very serious subject and a big problem for obama. we'll be back in a moment.

stuart: it's a tiny gain, but it's enough to put the dow at an all-time high, 21,159. we're up 14 points. now look at this, amazon is back now, another all-time high for amazon, $1,003 per share, and microsoft at nearly $71 a share. first it was netflix, now it's amazon investing big. i think this is in domestic -- in -- >> content. stuart: content. >> yes. stuart: what's the word? >> developing programming -- stuart: thank you. >> -- for their network for amazonful we found out netflix is going to be spending this year $6 billion on content. so competitive out there. if you have content to sell, it's a great time to be alive.

amazon says it's going to pitch in about $4.5 billion this year to spend on content. i was just looking up numbers, hbo, by the way, last year they spent about $2 billion, so it's two, three times more than hbo spends on content. so these guys, do you think hollywood's a little nest? house of cards -- a little nervous? stuart: they would have to be nervous. all in origin at programming -- >> billion by these two streaming services. stuart: i'd be worried in hollywood. >> they are. stuart: all right. hillary clinton blaming everyone but herself because she lost the election. you know, even cnn, the clinton news network, making jokes about it. watch this. >> what do we make of this? [laughter] besides the fact that the 2016 campaign apparently will never end. >> it seems like she's burning bridges within her own party. >> the russians cloaked wisconsin, so she couldn't find it on a map to get there and

campaign there. stuart: that was funny. that made me smile. [laughter] not bad. geraldo rivera is with us -- >> good morning, gentlemen. stuart: you're jumping all over my introduction. [laughter] it's friday. >> it's friday. stuart: i've got to say, in many ways i feel not sorry for hillary clinton, but i understand her position. she reached for the stars. she spent her entire life wanting to be the president of the united states, and at the last minute she fell fraconally short. i feel bad for the lady. >> i do too, and i heard you using the word "hysterical" to describe her. stuart: yes, i did. >> which i would never do, my wife would run me out of the house. [laughter] i think with hillary clinton, the more you see her, the more you understand why she lost. with all due respect, you know? she was a senator, a very effective senator, she was a secretary of state who for most of her run had, you know, the

esteem of the world. obviously, first lady of the united states and then to run for president and everybody told her she was going to win right up until 5:00 -- stuart: do you think she's running again? >> hell no. never. [laughter] i think the democrats are well beyond her, although they have no idea where they are. >> right. stuart: i don't know what is and who is the next generation leader of the democrat party. >> that's exactly my point. stuart: the old guard has to say there, because i don't think they've got a replacement. >> i think the kids have to kill each other off, because none of the old guard is attractive. you saw john kerry, you saw hillary clinton -- >> joe biden? >> -- joe biden. you look at them and say, oh, you know, they're grate but, please, not now. they're not for now. they're not for the social media age. stuart: i don't know whether you saw it, but my take, i do an editorial at the top of the hour. i said, look, the paris climate agreemenand the iran nuke deal

were both examples of a terrible negotiation by former president obama. and that president trump has taken us out of the paris agreement and now proposes to just renegotiate. i don't have a problem with that, do you? >> i do. i do very much so. i can take -- the iran nuke deal is, i think, easier because that's still in place. why is it still in place? because despite the, you know, the unsavory scent that it gives off, there is a tacit agreement among all world leaders that it's working, that iran is not right now progressing toward a nuclear weapon, that they are complying with the terms of the nuke deal. i think you cannot deny that the world believes, that donald trump believes iran is complying with the iran nuke deal. however better the terms might have been. but here's the thing about negotiations, this is a business show. trump is a great negotiator. i've known him for 40 years. going to the paris climate

accord, if it was so bad, why didn't he quietly try to renegotiate it rather than all this hubris, all this u.s. against the world, all this, you know, they're trying to rob us blind and all of these statements that seem -- first of all, they've offended everybody from the mosque to -- stuart: you can't let this stay in place. you can't be quiet about this. >> what's the emergency? stuart: oh, i'll tell you what, we are allowing the world's greatest carbon polluter -- that would be china -- we're allowing them to do whatever they want for the next 12 years. they don't have to rein it in at all, and in the year 2030 they simply have to try to rein it in. meanwhile, we have to cut our emissions immediately again, and we have to pay them for the next 12 years whilst they get their act together. that's a lousy -- >> i have been in beijing when peop werweing surgical masks because they couldn't see

3 feet in front of them. that will force -- stuart: different problem. >> coal is not competitive against natural gas. stuart: different problem. >> solar, wind power, those things will force a renegotiation and a movement away from coal. i feel bad for coal miners. i felt bad for the buffalo hunters in the 19th century. they killed all the buffalo, they couldn't keep the same job. coal miners have to move on. this -- to move away from the paris climate accord sets him against half this country and all the rest of the world, and i don't understand why he chose to make this fight so public. if he was going to renegotiate, you do it like you -- hey, come here, what about china? come on, instead of 12 years, we'll give you 6 years -- stuart: he's supposed to do that in secret. >> why not? isn't that the way negotiations happen? stuart: i think you should get right out there and do what you think and -- >> and what has he gained from that aside from scaring fifth graders around the world?

stuart: what does that tell you about what they're being taught? >> that's a valid issue. you cannot deny it though. stuart: it was a lousy treaty -- agreement, it was never a treaty. if it was so good, why didn't president obama submit it to the senate for a vote by the american people? why didn't he do it? >> i don't think, i don't think -- stuart: because it wouldn't pa. >> i don't think president obama is unique in that regard. the senate is so hopelessly divided, parochially on ideological lines. i think if you want a cleaner earth -- i've been in miami where the high tide is splashing up on the main boulevard on miami beach. you cannot deny -- stuart: we have dropped emissions more than any other industrial country. you know what in we're out of time. [laughter] >> i'm going to go outside and knit. [laughter] stuart: geraldo, thank you. next case, republicans are calling susan rice, john brennan, samantha power, calling on them, testify on the obama administration's unmasking of people associated with the trump campaign.

here's the judge napolitano on that from yesterday. >> a very, very, very serious threat to personal liberty and to the stability of the republic that the american government would use the authority we have given it to spy on us for its own petty political purposes. stuart: joining me now, danny coulson, former fbi deputy assistant director. danny, welcome to the program. good to see you, sir. >> good morning. good seeing you too. stuart: i think that the susan rice unmasking story is bigger than and more important than anything fbi director comey is going to report next week because it looks to me like president obama was, indeed, spying on americans d using thinformation, secretly collected, to go after his political opponentings. where am i going wrong? >> you're not at all. matter of fact, i was going to bring that up if you didn't. you know, stuart, the constitution matters. the fourth amendment matters. it matters to us and the fbi and

those who have left the fbi. and congress gave us the authority to collect intelligence, but it also put restrictions on certain things that we collect to protect the privacy interests of american citizens. and to have a policy person like susan rice who has no need to know this information ask for it, and more importantly for the intelligence community to give it to her, that's outrageous. and congress needs to get off their duff and look at this and set very strict restrictions on who has the ability to with unmasking -- to request unmasking. if not, our constitution doesn't mean a whole lot. stuart: so why is all the publicity about comey and very little about susan rice, samantha power? and why on earth is samantha power -- who is a diplomat and that's it -- why is she, reportedly, asking for the names of people identified by the nsa? what on earth is going on? >> well, you know, it sounds like mischief, to me.

if you look at from the point of view of an investigator, what is her need to know? i mean, you can have classified material given to you if you have the right clearances, but part of the process is that you have to have a need to know. what was her need to know? and the only thing i can think of is for political purposes, and that's not what it's all about. i think it was totally inappropriate not only for her to ask for it, but for the intelligence community to give it to her. that's even more troubling to me than the request. stuart: danny, what is your opinion of fbi director comey before, during and after the election? >> oh, my goodness. i think james comey's a good man. i've had meetings with him within the last couple of months, and i think he's a good man. i think he got off course here. i had one agent describe to me he was coloring outside the lines, and he took on responsibilities that are not the fbi director's job. it's not the job of the fbi, an agent or the director, to make a recommendation for prosecution.

it is against our policy, it's against our history, and it's against our culture. and i think when he did that, that was a huge mistake. i don't think he did it with any malfeasance in mind or anything like that, but that's not his job. the fbi collects information and issues where the united states is a party of interest or collect evidence. he got outside the lines there. i think he's a good man. i wish he hadn't done that. i wish somebody back there at headquarters said, hey, director, don't do that, that's not our job. stuart: danny coulson, thanks for joining us. >> thank you. it's always a pleasure. stuart: where are we on that market? i'll tell you, we're up about 20 points for the dow industrials, and it's an even split, winners and losers, among the dow 30. convicted terrorist oscar rivera will not receive an award at this month's puerto rican parade, but he will still march in it. next, the son of a man who was killed in a bombing carried out by rivera's terror network.

♪ ♪ >> democrats calling president trump's budget a killer. stuart asked white house budget director mick mulvaney about that earlier, and he says the left just doesn't want to talk about it. roll tape. >> because what we've tried to do here is actually promote a discussion about the taxpayer. that's what this budget was designed to do, to try and change the narrative to actually look at the way the government spends money through the eyes of the people that actually give us

the money in the first place. and it's unfortunate we can't have that discussion. my depress is the leftoesn't want -- my guess is the heft don't want to have that discussionand that's why you're hearing them say these hyperbolic and indefensible things.

stuart: modest gain, new high for the dow, 23 points higher, 21,167. look at this, please. all-time highs for all of those very big name stocks; amazon, microsoft, mcdonald's and starbucks. all-time highs, all of them. new york city mayor bill de blasio announcing that the newly-released terror leader, oscar lopez rivera, will not play a formal role in the puerto rican day parade. he will still, however, march in the event. rivera, considered a top leader of the faln -- that's a puerto rican terror group. it was responsible for over 100 bombings in america during the '70s and '80s. joe connor is with us. his father, frank, was killed in one of the most well-known bombings in new york city. joe, welcome to the program. >> thank you, stuart. thanks for having me. stuart: now, he has not accepted the honor, but he will march.

your take. >> my take is why is he still being given the honor? we're in a position now where lopez is turning down a freedom hero award or some insanity like that and turning it down. not the politicians saying, you know what? he's not worthy of this, he's a terrorist, he shouldn't be marching, he shouldn't be there. they are not pulling the award from him. he is showing an incredibly more integrity, if you will, than the -- [inaudible] the mayor de blasios and the luis gutierrezs of the world. stuart: now, how do you feel about him being released? because he has been released. regardless whether he marches or not, i think he was in prison for 30 years. >> yeah. he was released. he was offered clemency in '99 by the clintons, he turned it down. he offered it again by obama. i faced him at his parole hearing in 2011. he wouldn't take responsible for anything, he was even quoted

recently as saying if they came to terre haute to the prison looking for someone to say he's sorry, they came for the wrong guy. he shouldn't have been released. he spent about half of his prison term, he finished about half of his finish term, 35 years. of he was sentenced to 70 years. he never should have been released. having said that, he was. now, there's a big leap between being released from prison and becoming a hero of a parade. stuart: yes. what kind of message does this send to america's puerto rican community? i think it's the bert rican community -- puerto rican community that wanted him in this parade in the first place and offered him the honor. >> you know, i don't know about that. i've gotten thousands of tweets over the last few weeks, and one of them have been in support of lopez. and they've come from puerto ricans on the island andn the u.s. everyone has been extraordinarily supportive, apolo yetic.

saying, owe, please don't think that -- joe, please don't think that we support terrorism. we don't support oscar lopez, he's a criminal. he never had any standing in puerto rico, only 3% -- stuart: why, why was he offered an honor? okay, he turned it down, but why was he offered the honor? >> he's still being offered the honor. stuart: why hasn't that been withdrawn? >> because melissa and her ilk agree with him. that's the only thing you can come down to anymore. in chicago they named a street after him, and she was emboldened. in 2014 his brother, jose, was named the grand marshal of the parade, and i confronted her at gracie mansion about that, and she got nasty with me. he was convicted of seditious conspiracy which is b.s., he was convicted of zell things, and he was -- several things, and he was tied to the bombings. freddie mendez was the only faln member that ever testified. he said oscar recruited, he

taught them bomb techniques, he taught them how to turn watches into timing devices. when they caught him in chicago in his, in his safehouse, he had the communiques that were used, the same mimeograph communiques the fbi could connect. he turned down clemency in '99, let's not forget, because he wouldn't renounce violence, and he said later that was because carlos torres, one of the other leaders, was not offered clemency. he stayed in prison to go down with the ship. stuart: are you going to be watching that parade? >> i'm going to be at my daughter's final recital on that day, and that's where i belong. that's where my dad would want me. stuart: thanks for joining us. coming up, you'll get my take on the big-name business leaders who are opposing president trump's decision to leave the paris climate accord. i think it was a lousy deal, and i think it's time to renegotiate. we'll see about that. and we will revisit comedian

dennis miller's initial appearance on "varney & company." you, the viewer, loved him. your reaction to him after this. there's nothing traditional about my small business. so when it comes to technology, i need someone that understands my unique needs. my dell small business advisor has gotten to know our business so well, that it feels like he's a part of our team. with one phone call, he sets me up with tailored products and services. and when my advisor is focused on my tech, i can focus on my small business. ♪ thithis is the new new york.e? think again. we are building new airports all across the state. new roads and bridges. new mass transit. new business friendly environment. new lower taxes.

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>> i find it ironic that colleges are now in such lockdown. you know, you realize, stuart, jesus christ could appear on a college campus right now and

change water into wine, and he would be frog-walked off by the campus cops because he killed some microorganisms in the wine. [laughter] we have gone from the greatest generation to the gratingest generation. stuart: he's good, isn't he? [laughter] as you know, we talked about snowflakes on college campuses. many of you had something to say about his appearance. first of all, this came in from scott. dennis miller is undoubtedly the funniest man alive today. a little exaggeration, perhaps. next case, kathy says miller is so much fun with his perspectives. hope you have him back. and this from paul: only dennis miller can tell it his way, and he is right about colleges being totally taken over by a minority of liberal snowflakes. i asked him, ash -- >> yes. stuart: do you make this up beforehand? have you got a script? >> right. uart: no. just bang, bang, bang --

>> stream of consciousness. he is so clever, so funny, and he was spot on. you said what are you doing these days? he said, actually, i work on college campuses as a lifeguard in safe spaces saving students from drowning in their own b.s. [laughter] which i thought was hilarious. stuart: how do they come up with that? >> he was hilarious on monday night football. probably not a good fit for that, but he was hilarious. i love his perspective on all this. he's absolutely spot on. stuart: yep. and by the way, we are hoping to have dennis miller back. ing and we'll be back after this.

stuart: much is being made of business leaders who do not approve of president trump's withdrawal from the paris accord. so take a look at some of the

big name business people who are publicly opposing withdrawal. first off, elon musk, the man behind tesla. he's pulled out of the president's scientific advisory council. now, tesla was built around green energy tax credits. elon musk sold them for cash. he doesn't want them to dry up. robert iger, disney's chief, he's withdrawn from the council as well. maybe he's responding to california politics. it's not easy being anything but uber-green on the left coast. jeff immelt, ge's chief, he's disappointed. he's married his company to obama and the green. perhaps he should now concentrate on picking his company which has never recovered its mojo since he took over from jack welsh, lloyd blankfein, wall street guy, he slammed the president's decision in his first-ever tweet. hmm. blankfein took heat for supporti venezuela's socialisc dictatorship.

venezuela produces heavy carbon-loaded crude oil. is mr. blankfein doing some penance? sorry about that, penance. [laughter] supporters of the paris agreement are sincere, yes, they are. they are true believers. but these business leaders appear to be grinding their own axe. they should listen to president trump. the lousy deal is done, renegotiation starts now. musk, iger, immelt, blankfein, get onboard and make it a better deal. the third hour of "varney & company" is about to begin. ♪ ♪ stuart: well, it's looking a little brighter than it did about an hour ago. the dow's up 42, we're getting close to 21,200. how about that? record territory, by the way. and so are these companies and these stocks.

they're big-name companies, and all of them have never, ever been higher in terms of their stock price than they are now. amazon, microsoft, mcdonald's and starbucks. keith fitzgerald is with us, money map press chief investment strategist. you know, look, the market's now up 40 points. big day yesterday. we're powering ahead to new highs. do you think this is what i might call the second leg up for the markets? >> well, i think that's correct, stuart, but i would character it more this way, it's more like the seventh inning in a ball game. now you're going to get down to brass tacks. you've got the home plate in view, it's time to hit the big winners. you've got to be in to win now. stuart: so you're in. you wouldn't be selling out of this? you stay in, you made your pick, you stay where you are, that's right? >> well, again, you manage your risk all the way along, but my perspective is long term. i want growth. i'm not so interested in the short-term squiggles, the chaos. inevitably, those things always turn out to be buying opportunities if you have the

growth continuing. and so far it is. that's where the money's going. i think the stock market, stuart, as drastic as this sounds, could realistically double or triple within the next decade. stuart: wait a second. i've got to step back from that. double or even triple? that would put the dow industrials around 60,000 within a decade. you're nodding your head, yeah? you're going to y that? say it again. >> absolutely. i will say that crystal clear. i think the market has the potential to triple within the next ten years. here's why. money's being created all over the system. you've got the bankers who want nothing to fail, you've got the government who wants nothing to fail, lenders who want nothing to fail. every incentive we know points to keeping money moving. as long as that's happening, it's like an egg in the grocery store, stuart. if you've got one egg and a thousand buyers, the price of that egg goes higher. the only place most of the globe can put their money is into companies that are growing.

stuart: just a few moments ago i outlined four business leaders who are critical of the president's decision to withdraw from the paris agreement. i said, look, i think they're grinding an axe, a personal axe, their companies' axe. what do you say? >> that's a shame. i think they're right. i think they are grinding an axe. they're confusing personal agenda with very much what they need to do as a business. the sad thing about all this is they're kowtowing to the social pressure. so if you really want to be a patriot, really want to step up to the plate, work with the president. say, you know what? i don't agree with you, mr. president, but here is how we make it better. that really takes guts. people can step away from a council all you want, but i was raised you said something when you had something to back it up. stuart: i want to bring in james freeman, fox news contributor. what's your take? i'm saying, look, i think they were grinding an axe. >> yeah. i'm glad you're pointing out that some of these guys are

talking their own book. and this is particularly in the immelt case where they have bet big on providing more efficient energy solutions. we like efficiency, but look, more expensive oil driven up, more expensive energy generally driven up by regulation is good if you're selling efficiency tools, right? be now, as far as iger, rumors that he may consider running for president as a democrat. so like lloyd blankfein, this could be a lot of virtue signaling, if you will. this is one way that ceos who often don't get very good press can get good media attention, by speaking out for this accord. stuart: i gave them media attention. i did that. [laughter] >> good for you for talking about what's behind some of these positions here. because when you look at the substance of this agreement, it was going to fail on its own terms. everybody involved knew it was not going to get the emissions reductions they say are

necessary to avoid the doom that's forecast in 2100. you can disagree or not on whether that's going to happen, but this thing was always political. china was never going to have to do much, and it was all about restricting the u.s. stuart: it was a rotten deal. now, in our last hour we talked to moody's economist john lonski. he was pretty harsh about today's jobs report. excuse me. he used the r-word. watch this. >> it's disappointing, you know? the moving three-month average, i think, for jobs growth is down to 140,000 new jobs per month. if i go back historically, when that moving three-month average late in a recovery drops to 130,000, gss what tends to happen about 6-12 months later? stuart: what? >> receson. stuart: he used the r-word, that is recession. jake, you just wrote a piece in "the wall street journal" about the jobs rally at last. >> right.

stuart: how do you square that? >> one of the reasons this was so disappointing, today's news, is because yesterday i was writing about the small business hiring survey from the national federation of independent business. they've been doing this for decades. we just got the best reading we've had since 2006 on small business job creation in may. we also, obviously, got a very good report out of adp on the payroll number. so this was -- it looked like we were finally breaking out of obama-style growth, that maybe the economy was starting to get to a higher year. and that's why you see this report this morning really couldn't be more disappointed. we're till in that slow growth -- still in that slow growth rut, and i think it underlines that the trump tax cut and deregulatory agenda has got to roll forward. we need the tax cut this year if we want to get to that new level of growth. stuart: i mean, it's a pretty strong writing on the wall, get on with it, boys. keith, what do you think?

i mean, john lonski used the r-word, recession word. maybe we're pointing in that direction, he thinks. what says keith fitz? >> i think james is right. what we're seeing is a bifurcation. the jobs were added in low-value sections of the economy. it's service, it's health, it's minimum wage type jobs where we did add. we need to get that presidential agenda through -- and, again, love him or hate him, it doesn't matter. that's how you create the high value that really does add to the economic picture. stuart: but you don't see a recession six months down the road? >> boy, that's a tough call, stuart. honestly, i could see it going either way, but that's not going to change the growth picture for the companies we just talked about. stuart: okay. >> still not very good. stuart: maybe a recession, i mean, that's a new whole thing chucked into the debate. go ahead, go ahead. >> i was going to say, you know, don't -- remember, boy, i've rented lip this is morning, stuart.

you can be an economic bear and still a monetary bull, and that's a very subtle distinction. you can constantly invest even in a recession if you're picking the companies for which growth remains intact. big technology stuff we talk about all the time, defense, medicine, those are things that are not going to go away, recessioning or not. stuart: okay. i know that you're in seattle. seattle just got, i think, one step closer to passing a soda tax. i think the proposal is for 1.75 cent-per-ounce tax. diet drinks are excluded, but all of that in the great city of seattle where you live. i'd like a comment -- >> ah -- [laughter] i've got to tell you, with all the serious things that we've got going on, that's what the city council is worried about? and then they want to exclude dietary drinks? this makes no sense, and it all comes down to who's protecting what wallet. the research suggests that dietary drinks are actually worse for you. they create brain lesions, dementia, all kinds of -- so if

you really want to tax something, tax the ingredients. in the meantime, give everybody the sugar and caffeine they can handle. stuart: why don't you move to the northeast or the southwest or the midwest or the pacific wherever? why don't you move? >> i like the socialist republic of seattle. it's great people, intelligent thought, and it's a lot of fun out here. [laughter] >> socialist republic of seattle, he likes it? he's a regular guest on this program? okay. [laughter] flash. stuart: it's friday. you can get away with anything. keith, thanks for join we'll see you again soon. got it. let's talk football, shall we? yeah, with a british accent, why not? the nfl making some big changes recently. one of them, a shorter overtime. they're cutting it down from 15 minutes to 10 minutes, the idea to give players less exposure to inry, apparently. look who's coming down the hallway? two-time super bowl champ leonard marshall. he is going to donate his brain for the study of concussion.

that's a big deal and so is he. [laughter] he's on the show. here he comes. he's next. ♪ ♪

stuart: two-time super bowl champ left-hand marshall has -- leonard marshall has pledged to donate his brain for research on concussion. guess what? he's with me now in new york city. welcome to the program. >> hi, stuart. stuart: bear in mind that i've got a british accent, and i wasn't born with american football. >> it's okay. stuart: you were a defensive end. >> yes. >>, i was. i defended lawrence taylor and made him look very good. [laughter] stuart: you were one of -- lawrence taylor was one of the best linebackers ever. >> right. stuart: were you the best defensive end ever?

>> i would think so in the scheme of things in terms of what we did at the new york giants. we played a college 3-4 defense, and in terms of what we did, combined totals in terms of sacks and tackles, lawrence and i had the best combination in the history of the nfl. stuart: did you sack joe montana? >> yes, i did. stuart: how many times? >> i couldn't tell you how many, but the devastating hit in -- >> oh, yeah. stuart: you're proud of it. >> well, proud to win a game. not proud to injure a guy. stuart: okay. now, you're going to donate your brain, which is a wonderful thing to do in the interest of researching concussion. did you have concussion in your day? >> of -- many of them. again, as a defensive player, i gave more than i received. stuart: do you feel any impact now? you've been retired for many years. >> well, in 2013 i went to ucla and had my brain diagnosed by a staff of clinicians at ucla, and

i worked with dr. smalls, dr -- see, it's cte. julian bales who was the former team doctor for the pittsburgh steelers and the movie "concussion" was built around. and those guys had a few scans and tests that we went through which showed that you can actually show cte in the living. you can show protein on the brain. and tau is what you define when looking at the brain areas of damage in the brain. so whether it be the frontal lobe, the rear portion of the brain or whatever, you can see signs of deterioration because of it. stuart: and right after those tests, is that when you decided that you would donate your brain for research? >> well, as i've gone through this process, you know, both understanding my illness, coming to grips with my behavior, coming to grips with issues surrouing cte, that's when i

made the firm decision that, you know what? i need to tell my story and, hopefully, i help somebody in the process. >> do you miss it? stuart: do you miss the competition? >> i miss the competition, i miss the locker room, i miss having bill parcells and bill belichick with me. i miss all of it, but i wouldn't trade it for nothing in the world. even everything i've got going on right now, i wouldn't trade my career and what i did, in terms of football and how it shaped my life, for nothing in the world. stuart would you tell a youngster 16, 17, 18, young, strong guy -- >> right. stuart: -- would you say, yeah, get into football and go tackle and hit 'em hard? >> i would tell a kid to play the game. but the ones that are 8-12 years old, those are the ones i'm concerned about because the brain is not fully developed yet. and for you to have those traumatic blows to the brain from 8-12 years old, it can have significant impact. stuart: you make a good point. a couple of rule changes, and i want your comment. >> yes. stuart: they're going to shorten

overtime play from 15 minutes to 10 minutes. >> right. stuart: what do you make of that? >> i think that'll help with injury in the game, i think that the fans will be more tuned into it because, you know, whenever you put a time clock to something and, you know, you've got to execute or not, you know, it raises the level of intensity. so i think the fans will get into that bigtime. stuart: okay. how about the celebrations in the end zone after a touchdown? be. [laughter] they're going to relax the rules. >> i think it makes it fun for the fan. i think the man now will enjoy just as they enjoy a wwe match which you know is not real. a pro football game is real. [laughter] stuart: do you think that you'll take some of the -- if i say take some of the violence out of football, that's not the right word to use. >> right. stuart: but some of the intensity, some of the hits and the concussion? is that what they're trying to do? >> well, it's hard to eliminate. you know, you're playing a game -- stuart: it's a violent game. >> it's the most spartan-like

game known to man. it's like, you know, the old roman thing from back in the day, you know? you want to move it, they want to stop you from moving it, you know? [laughter] it's the most american-like game there is. so i think that, you know, with that being said it'll be tough to take the violence out of football. stuart: what would you say to the idea play american football like rugby? no pads, no helmets, what would you say -- >> i think that would be really crazy. stuart: that would take some of the hitting out. >> yeah. but i think that would be really crazy. they're still going to be 300 pounds, they're still going to bench press 500 pounds and run -- stuart: could you do that? you weighed 300? >> yeah, back in my time. [laughter] >> wow. stuart: it's great to have you -- >> hey, my coach had a line, this is the greatest. when hit properly, the body will bend or break. [laughter] stuart: that's a truism, i think. >> oh, my goodness. >> yes.

stuart: leonard, i think you're doing a great thing. >> thank you very much. stuart: donating your brain for research, and it's a pleasure having you on the show. >> thank you very much for having me. stuart: thank you, sir. we're sticking on sports. major league baseball, they've signed a deal to live stream games, wait for it, in virtual reality. we'll tell you how they're making that happen. and look at this, dragon fly drones have taken flight. that is the drone. that's not an insect, that's a real drone. researchers just found a way to attach the world's smallest drone to tiny insects, turning them into what's called sigh -- cyborgs. and kathy griffin will hold a news conference next hour. she's on damage control after the outrageous photo that you're seeing now. and now she's saying she is a victim. more "varney" after this. think again.

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>> marocain. >> she knows what it means. >> that is correct. >> congratulations -- [cheers and applause] >> you have the champion! stuart: very good. that's the word that sealed the deal for 12-year-old ananya vinay. she defeated a 14-year-old young lad from oklahoma to win is the scripps spelling bee in

washington last night. she's going to split the $40,000 cash prize with her 7-year-old brother. in case you're wondering, marocain is a dress fabric made from silk or rayon -- >> i knew that. no, i didn't. stuart: major league baseball teaming up with intel to deliver live streaming game of the week in virtual reality. you need a samsung gear vr, that's the headset. you also need a compatible smartphone and the intel true vr app. the first game to be shown in virtual reality is on tuesday when the rockies host the cleveland indians. got it. gamers, listen up. a gold version of sony's console, the playstation 4, will soon be available. hasn't been released yet. we got a sneak peek at it when one walmart store put it on display a bit too early. workers realized their mistake before anybody bought one, withdrew it. check this out. researchers in massachusetts have created a remote-controlled

drone built on a living dragonfly. it lets researchers control remotely where the insect flies. they plan on using the dragonfly drone to collect cay that in places -- data in places humans cannot safely go. check that big board. markets hitting record highs today again despite outrage from some quarters over president trump's withdrawal from the s accord. why that could be good for the economy. you'll hear it. and new numbers show we're not going out to lunch as much anymore. wonder what our next guest thinks about that? he's the ceo of boston market. that's the company i lost my shirt on. >> yes, i remember you -- stuart: he's our guest soon. [laughter]

. . . .

stuart: the big board shows 40-point gain for the did you industrials. not bad. earlier today i spoke with president trump's chief economic advisor gary cohn about the jobs report. listen to this i got to say it was a disappointing jobs report, only 138,000. your response sir? >> i don't agree with that. the trend we've got going here is good. yes, it can be better and we

said it can be better and that's why we're spending so much time talking about regulation and the overregulation in the united states. we're talking about tax reform. we're talking about infrastructure. we believe that the white house can drive a much better work and job environment in the united states. so, yes, there is some very good news in the jobs report but we're committed to make it better. stuart: i called it a disappoiing jobs report, 138,000 jobs report. i say disappointing. gary cohn disagreed. we have the former labor department of chief of staff and he joins us now. i still say 138,000 jobs last month is disappointing. what says paul conway? >> i enthusiastically think it should be better. talking is great but action is needed, es specially by the congress. the president put forward a bold agenda. time to work on it and get prioritizing. stuart: it is staring you in the face.

a weak jobs report get out there and get a tax cut to stimulate the economist. do you think the republican party understands this? >> look, i think sometimes people get caught up in a lot of messaging things. there is strategic messaging, daily messaging, crisis messaging. people fet it all convoluted. what delivered the president to the white house? promise of growth opportunity and protection for american people. these people in congress, republicans and democrats who support the president, the issue in your district today what are you doing today to create jobs and security for people tomorrow? it is that simple. you have to put in tax reform. you have to bring in overseas capital and get laying lace out of the way -- regulation out. way of people trying to create business, half of whom are small business owners that is the strategic message. stuart: as you and our viewers know president trump has withdrawn the the u.s. from the paris market deal. we have highs across the board. do you think the president's

decision, pull out of the paris accord do you think that is long term or short term good for america as economy? >> i think it is long term good. the agreement itself was not enforceable, the american public, the u.s. citizen did not have a chance to voice their opinion on this thing because it never went through the u.s. senate. it should have gone through the senate. it should have given people opportunity to talk about. we went through eight years of public policy there was a fals narrative, stuart, i feel quite strongly about this there was a hobson's decision between the jobs and growth and environment. that narrative and premise is from the left. if you look on the right to conservative governors throughout history you see a lot of opportunities and a lot of different incidents where folks like paul laxult, governor of nevada, ronald reagan governor of california, put together, pro-growth, pro-environment solutions. even "the l.a. times" in 1997 says ronald reagan was the best governor ever occurred for environment of california. he stopped superhighways across

the sierra. with paul laxult, he helped defend lake tahoe. there many opportunity to change the narrative about this thing, look, american growth an opportunity is the key. go back to the table. bring nations together to talk about opportunity for people across the world. we don't need a super government to impose things on small business in the united states. stuart: there is a relationship between a strong economic growth and good environmental conservation because strong growth gives you the money to invest in either green energy, renewable energy or anything else, clean energy, if that is what you want. you can't have one without the other. >> absolutely. look if you look at some research being done, really great universities across the country right now, university of maine is fantastic example. they are a land grant and sea grant university. forestry products renewable energy, ocean technologies. they're not highly dependent on government funding this is the market saying give me american solutions and technologies.

give me trained graduates we can plug into the new industries. it is market and private sector driving it. people should take a lesson from that. settle down. you will not take irv ford f-150 owner and chevy suburban owner ohio and pennsylvania to make them drive a prius. that is ridiculous. stuart: that is you true, it would be ridiculous. would it not? paul conway, see you real soon. >> you bet. stuart: i didn't know this. going out to lunch appears to be a dying tradition. new numbers show we're making far fewer trips to restaurants during the lunch hour period. come on in, ceo of boston market, george michelle. is that the correct pronunciation, george? >> michelle. stuart: i'm very sorry, i will get it right. i promise. >> good to be be with you, stuart. stuart: i invested in boston market years ago and lost my shirt. you now we welcome you aboard as

the ceo of boston market. >> thank you, it is good to be here. stuart: what is this about people going out to it lunch on far fewer occasions? how does that affect boston market? i think of boston market you pick up dinner on the way home after work, not so much as a lunch place. what say you? >> you're absolutely right. lunch represents 38% of our business. we do far better at dinnertime. however, what's happening lunch sales are a bit down and i believe that breakfast sales are up because more people are using restaurants during the breakfast period to buy their food. then they're heading to the office and eating at their desk during lunch. stuart: so it is a shift in when we consume our food as opposed to a flat-out loss of consumption of food at a particular time of day, okay. there is another one, another trend that we're seeing from research which says people are choosing mom-and-pop restaurants over the big chains. is that accurate?

>> there is some shift going on because people are looking at ethnic food right now and looking at experience. so they're going to these mom-and-pop operations where they cook unique food or food from other countries they present. however we have to remember all of chains started as mom-and-pop operation initially, then grew into chains. we do welcome initiatives and we do welcome inin know vision. stuart: we -- innovation. stuart: we hear there is a restaurant recession in place. have you seen it? >> yes, our sales are down about 2% over last year. a number of factors taking place. there are way too many restaurant opened last few years. they're also clustered together. and that is the reason why sales are done it is because too many restaurants have opened and as we've noticed lately, some of the chains started closing some of these restaurants because they're hitting their economic criteria. stuart: would a tax cut from

president trump help boston market? >> we would welcome that and we are waiting with anticipation. stuart: okay. i understand that today can is national rotisserie chicken day. did you lobby to make today national rotisserie chicken day? did you go to congress and say make this boston market's day? did you do that? >> well, we did it but it is not through congress. there is an institution that gives you those days. we started 32 years ago in the rotisserie chicken business. we're really delighted to celebrate that today with our employees and customers. stuart: wait a minute. you go to an organization, make this national rotisserie chicken day. you pay them for that? >> you pay basically to apply. if no one else has it, you get granted that definition and you can celebrate that. so we're really excited and delighted given we're all about the rotisserie cooking.

stuart: if i walk into a boston market on my way home from work today, how much will it cost me to get chicken, mashed potatoes and vegetables and gravy to walk out the door, for one. >> it is less than $10. 9.49. if you go to our website and get a coupon, get a whole rotisserie chicken 7.99. stuart: stop and shop is 4.99, i will not press the point. george micel, i'm very sorry, sir, i keep getting that wrong. thanks very much for joining us from boston market. the fact i lost my shirt on your company is forgiven. welce back anytime you look. thank you, george. >> thank you, it is good to be with you. stuart: something completely different. i mean really different now. kathy griffin, she has got a lawyer and she will hold a news conference in about an hour, about that infamous photo shoot. she has got a lawyer, ash, and

she says that she was bullied? ashley: just when you want her to go away she's back. there were those who would argue she wants to remain in the headlines. however yes, she hired an attorney lisa bloom. what you call a celebrity attorney out in l.a. stuart: she is. ashley: all i know earlier that the law firm put out a thing that says miss griffin and miss bloom will explain the true motivation behind that horrible image. they don't say horrible, they say, the image, and also respond to the bullying from the trump family, that she, kathy griffin has endured. so you know, i don't feel like playing the victim in something like this is going to fly at all. we see what she has to say. stuart: we'll see what details she has to reveal how this bulllying. i can't imagine how that flies. we'll wait for it. we'll see it. check this out, please, the navy's newest aircraft carrier. it is the uss gerald ford. price tag? $12.9 billion.

is that more money -- it's a lot of money. we'll tell you what you get for it. shortly. walmart has a answer to amazon'same day delivery, they're asking employees to deliver packages on the way home from work. we'll be back. ♪

>> i'm nicole petallides with your fox business brief. look at walmart up 5% this week. they want to deliver the products right to your home. the people who work for walmart can do exactly this they have already started a test in arkansas and new jersey where people driving to and from work on their route can drop packages right to your home. this is a to take on amazon and incity cart. this is just a test pilot for now. there is a lot of questions whether or not the workers work part-time would have to become full time. how much would they be paid in order to do this extra work. and also, disgruntled employees make the train or bus, wouldn't have the opportunity to deliver your packages. this is something developing for walmart in order to take on the competition. we look at a chart. walmart versus amazon. amazon is a better performer. amazon a new high, 1004 today.ty

♪ the senate has said no way. president trump says it's too complicated and his top economic advisor says it will force consumers to pay more for everyday things they rely on. mnuchin: it has the potential to pass on significant costs to the consumer. vo: tell congress to drop the bat tax so real tax reform can get done that helps all americans.

stuart: by the way, we just hit 201000200 on the dow industrials, okay? -- 21,200. 57 points higher. look at that. let me get back to lululemon. they have got strong sal of w product lines. ey have issued a pretty rosy forecast. the stock is up 12%. lululemon. different story at

restoration hardware, down really big on a dismal forecast, a 25% drop. chopped off the at the knees with a quarter of its value. the navy has the world's most advanced aircraft carrier, just delivered. uss gerald ford. 12.$9 billion. we talked about this with mick mulvaney and the military budget. >> not enough to accomplish everything the president said but just the first year. we're in the process of laying out a new strategic plan and how to grow the military to conform to the president's promise. you can't do that physically not possible to do that all in one year. stuart: van hipp joins us, the chair of american defense international. van, i get to the aircraft carrier in a second. i want to talk about how big of an increase in military spending. general jack keane, four-star retired general, retired, says it is not enough. we need a lot more than the

president budgeted for. what say you? >> he is probably right. the joint chiefs of staff said that during the obama administration. he he is probably right. let me tell you he won't get even what he is asking for if they don't deal with the current budget caps. he could actually be presiding over a defense decrease instead of a defense increase if congress doesn't deal with this budget cap situation with the sequestration. stuart: what do we get for $12.9 billion on this new aircraft carrier? >> well there is a reason why the chinese are going all out to get this kind of capability. an advanced aircraft carrier sets us apart from the rest of the world militarily. i looked at this and these cost issues. this aircraft will let us fly 1/3 more missions. actually, in the end it will save us money, tell you why. the techlogy it is using this, is a big story, reduces wear and tear on aircraft. yearly cost, what is costing taxpayers a fortune are these operation and maintenance costs

o&m costs throughout the defense department. what i have seen, o&m costs once this is operational will actually come down. that is good thing for taxpayers long term. however, 2.4 billion overrun on cost on initial delivery. that's not good. look how the president though handled the f1 35 situation. that was great. if we can, he can't be involved in every one of these cost overrun issues. i said before, if we put the mechanism in place that accomplishes that, you had omb director, mick mulvaney on earlier. like to see the service secretaries meet with the omb director where they go through things like this before the president's budget is released. contractors incentivized to come in under budget and under schedule. we have to do things like that to give taxpayer best value and military what we need. stuart: change of subject, van. this is very important story. i'm talking about unmasking of president trump's campaign too

many. moments ago, senator lindsey graham said he think he was unmasked by obama administration. roll tape. >> i have reason to believe that a conversation that i had was picked up, with some foreign leader or some foreign person and somebody requested that my conversation be unmasked. i've been told that by people in the intelligence community. stuart: let me explain something here, van. i'm sure you're familiar with this but for our viewers who are not, let me explain it. president obama, the nsa, captures telephone conversations and text messages from everybody in the country. president obama made that information more widely available within the intelligence community. susan rice and some other members of the administration came along and reportedly asked for the names of people who were those secret recordings by the nsa. that is unmasking. now senator lindsey graham says he may have been unmasked.

i find this almost proof that president trump was right, that president obama was spying on him and the people. >> this is the big story, stuart. i think the house intelligence committee may have the smoking gun. go back to march when devin nunez first told us about the possibility that the obama administration was using foreign surveillance as a ruse to spy on president trump and his folks. do back to that. don't forget right after that the nsa delivered a a lot of documents to the house intelligence committee. sources there said they would find the smoking gun. now they come out with these carefully, narrowly tailored subpoenas. i think they have may have found the smoking gun. i think they may identify culprits who did this. stuart: you think it is possible that president obama did indeed spy on us? >> i think it is very possible but not only that, how about the leaks? how about the leaks. stuart: used information. right. van hipp, good stuff, thanks for joining us sir.

see you again soon. thank you. next case, california taking a step to adopt a single-payer health plan. here's the problem. lawmakers can't figure out how to pay for it. believe me it is expensive. details next. think again. this is the new new york. we are building new airports all across the state. new roads and bridges. new mass transit. new business friendly environment. new lower taxes. and new university partnerships to grow the businesses of tomorrow today. learn more at esd.ny.gov

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stuart: well, well, well, you get a disappointing jobs report and the market keeps on going up. look at that? we're up 73 points. record high yesterday. record high today by the looks of it. alert please, california taking steps to adopt a single-payer health insurance plan. you lawmakers can't figure out how to pay for it! hillary vaughn in los angeles with the details. i have one question, hillary, how much? reporter: $400 billion, stuart. the sipping is gel-payer health care plan passed in the california senate would be medicare-type system. it would cost estimated $400 billion. more than twice the size of the state budget. it's a tabitha republican state senator tom berry hill says californians can't pay. he is telling "l.a. times," cut every single program and expense from the state budget and redirect money to the bill we wouldn't cover half of the 400 billion price tag.

under the plan government would replace insurance companies and pay doctors directly for health care. the big question how will california pay for it. fiscal analysis released by the california nurses association suggest they raise state sales and business taxes by 2.3% to raise 106 billion of the estimated annual cost. the rest they say would come from state and federal funding already set aside for medicare around medicaid services but not all democrats are sold on the bill. state senator from san diego who did not back the proposal says it fails to explain what a single-payer system would actually look like. now to pull off the single-payer plan democrats have a lot of hoops to jump through. first governor jerry brown has to sign off on it. voters would need to exempt it from constitutional spending limits. and california would need to figure out how to convince washington let them use medicare and medicaid money to fund it. stuart. stuart: i see a few roadblocks there. who was it who said, you think

health care is expensive? wait until it is free. hillary vaughn, everyone. she is good. she is with us. hillary, thank you very much. >> thank you. stuart: rally on wall street. tell you more about it after this.

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stuart: we're almost to the end of the program. i think we'll go out at the high point of the day for the stock market. will you look at that? ♪ 75 points higher. any advance on that? come on. come on. look at these four stocks, amazon, microsoft, mcdonald's. look at microsoft. ♪ excellent stuff. ashley: double fanfare. >> 1.19 higher? i own some of this. ash ash i know you do. world smiling non-stop. investors giving collective shrug to what was widely admitted to be a very weak jobs report. so what.

market only game in town. money pours into the fab five as we like to call them. it is remarkable. stuart: absolutely astonishing. we'll leave you all at the high point of the day, 21,219, up 75 points. now my pleasure to hand it over to neil cavuto. neil: thank you, stuart, very, very much. on top of that and dramatic developments, there seems to be disconnect what is going on in media coverage everything hitting the fan now we're backing out after climate fun, but i don't know about you, life, i did not see one person wear aghast mask. sim story in chicago, dallas, washington, d.c. miraculous for some strange reason, life is going on. look at corner of wall and broad. markets sprinting to records across the board despite headlines we're going back into caveman times. that was media interpretation. people who b