maria: mitch roschelle. >> we will probably hit an all-time high. let's get congress back from vacation. maria: good point. dagen: stocks go up, stocks go down after he said after the '87 crash. stuart: i will take it. thank you very much, maria, indeed. investors smile. this is going to be a big day. who would have thought that on this tuesday august 1st, the dow would open right at 22,000. good morning, everyone, forget the swamp, please, forget it. forget the political back-biting, ignore scaramucci saga. focus on new mood of economic optimism because that's what we are dealing with here. you wouldn't know it from the media but things are looking up. a half hour from now, you will see the to be market rally, keep on rolling 47 records, 22,000,

it was 18,000 on election day. profits looking very strong. this is the time when corporations tell us how they are doing financially, the story is they've never made as much money as they are making now. tax cuts, here is something positive on that. a timeline, details in september, a house vote in october, a senate vote in november, that would be just fine if republicans can pull it off. and jobs, lots of optimistic forecast about friday's big job's report. you look at washington, you see a mess. you look at the economy and the markets and you see something different. the hope of growth. 22,000, here it comes and varney & company is about to begin. ♪ ♪ ♪ [laughter]

stuart: nice graphics. aw. who is that? the cars. of course. light the graphic. that pleases me. it pleases me. money from heaven. love it. okay, big number, there it is, that was monday's close, 109 from 22k, looks like we will hit it right from the get-go, groan arrows for the futures markets. triple digits, if we go -- we are at 22k when we opened things up. a lot of excitement obviously and president trump is getting in on it, on the 22k excitement. he tweeted this moments ago. stock market could hit all-time high again. 22,000 today was 18,000 six months ago on election, mainstream media seldom mentions, o how right he is.

some of the names that have been driving the rally. 30 seconds since inauguration, boeing, mcdonalds, visa, they are the drivers, that's premarket quote that they have been the drivers to have latest rally. who is with us on the very important day? mike murphy, he's with rosecliff capital, i think you own rosecliff capital, don't you? mike: i do. stuart: i'm seeing green shoots of economic optimism, are you? >> i am, we have investors around the country and we have been hearing this for the last six months, even when market wasn't movie, we heard from people that the optimism was there, orders were coming in, industrial orders were coming in. when you look at a company like caterpillar's earnings last week, there's a lot of people that are getting jobs, good-paying jobs. people are feeling better right now than they had roughly eight years.

stuart: i think you are right. you don't see it in the media. mike: you won't see it. stuart: what are we going to see at 4:00 o'clock, apple reports number. are we going to see the new phone? mike: yaw may. we haven't heard from tim cook whether or not they are going to release the phone on time. there's a lot of talk about it being delayed. here is the thing, the guidance for next quarter, if it's above $51 billion, he's pricing in the sale of tenth anniversary iphone. if it's below that, apple historically very conservative when they give guidance, if it's considerably below 50 billion, there's a delay, investors won't like that. stuart: that could be -- big deal is 51 billion, that's in their guidance. okay, got it. we will be looking for that. stay there, mike. mike iek i'm not -- mike: i'm not going anywhere. stuart: let's get into politics, shall we?

yeah we must. katrina pearson with the advisory. the white house in my opinion didn't lead on health care, so my question is, will the president lead on tax cuts? will he get out there and sell to our country tax cuts, address the nation from the oval office, storm the country. will he do that? >> i would say ha he is leading not only on health care but tax reform as well. you have seen him out there in the country doing more of the rallies, getting back out there with the people. i do. i think he will go out there and lead the charge. he's already been talking to leaders of congress and paul ryan is talking about things he wanted and willing to compromise. >> i'm not suggesting him do something that he's not used to doing. he's got the bully pulpit.

i want to know that he's going to be aggressive about it. >> i would say that the president is being aggressive on all the politics. when he tweets he reach 140 million people. that's a really big deal. when you mention the bully pulpit, you have the press focused on so many other things, so this administration is having to continue to move forward and continues to hold meetings, he brings senators and congressmen to the white house. he does get out there with the people. president is being aggressive his agenda. stuart: okay. i just have to ask you about the scaramucci ouster, was that a preview of what's to come from general kelly because it looks like general kelly said, you're fired? >> i don't think you can count one day to another in this administration. we do have a president who is very focused on his mission to make america great again. he's going to make changes continuously if necessary to make promise to the american people. stuart: katrina, i'm going to read a tweet we received from the president, it says

corporations have never made as much money as they have making now, thank you stuart varney. can you confirm that the president of the united states watches this poor immigrant fresh off the boat? >> the president does watch your show. he's a big fan. that's great if you got a tweet. i think it's wonderful. the president is committed to this. he talked about the stock market, something the mainstream media doesn't want to focus on. the folks at home feel -- they know that this president is committed to them and that's why he's receiving so many pushback from the hill as well as the media. stuart: i have to tell you, i'm flattered. i am an immigrant and been here a long time but when someone comes overseas and settles in america and you get mentioned by name by the president of the united states makes you feel pretty good, katrina. >> that makes me happy too. the president is someone who definitely pays attention to the markets, that's been very clear and that is going to be the measuring stick moving forward. stuart: katrina, i have tears in my eyes.

[laughter] stuart: thank you very much. >> thank you. stuart: back to futures. where are we? we are up triple digits. that's the way the market looks like it's going to open. if we open up triple digits right at 22k. more money to pandora and that stock as advertisers are spending more. how about sprint, it made money held by cost cuts up 4%. revenue at pfizer was weak, stock is down, down 4 cents, that's it. under armour, the stock is down after announced restructuring and job cuts, big drop cuts, down 5%. check this out, please. storm emily in florida, governor

rick scott declared a state of emergency in 31 counties. it's now being downgraded to tropical depression, it's moving off florida into the atlantic. you will believe this one. the diversity chair at the university of central florida, the diversity chair out with a message for trump supporters. he said, if you back president -- the president, president trump, you're not welcome on campus. how about that for diversity? believe me, folks, we are on that one. venezuela descending into civil war. socialist government rounding up members of the opposition, dragging them out of their homes. the socialist dictatorship takes control. and your daily dose of outrage, cnn political commentator. his way to appeal to go white nationalists, you'll hear it after this ethink what's possible. rethink the experience.

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stuart: venezuela, the u.s. has frozen president maduro's assets and opposition leaders have been taken from homes in dead of night. we have more. >> rousted out of their homes at gunpoint. mayor of caracas in pajamas, leopoldo lopez taken at gunpoint. he was under house arrest. it was in military prison for three years often in solitary. there's more. maduro is moving to a truth commission. what does that mean? as soon as constituent assembly is seated and rewrites constitution, troop squads will roust the opposition and exterminate them. that's classic south american behavior. this is another cuba of the u.s.' back doorstep. stuart: it's happening now. i'm staying in venezuela because we had a marxist economist

professor at american university. listen to where he put it is blame for venezuela's collapse, roll tape. >> venezuela is one to have handful of countries that has two key facts to it, number one it has for the last 50 or 100 years become dependent on one product, in this case petroleum and number two that the price of petroleum over the last -- stuart: come on. >> huge problems around the world that have nothing to do with socialism. stuart: collapse of venezuela is because of the collapse in the price of oil says the marxist professor. joining us colonel allen west. is that what did it in venezuela, the price of oil? >> drill sergeant once said to me you can't fix stupid, when i listen to this professor of economics, he doesn't understand. one of the major tenants of socialist, it was doing fine when had control of oil production and procedures in the

market but when hugo chávez came in, all the hollywood elites, leftist political elites were praising him, he nationalized the oil of production industry and they caused the collapse and now you have a former bus driver who is the president of venezuela, maduro, look exactly where they are heading. these are the brown shirts. that's what they are talking about bringing. >> ecuador, north dakota, texas would be in collapse if the story line is true. other thriving economies would be under collapse. stuart: you're light, allen, they handed management to the chávez and maduro. >> we have to be careful because it was same thing, trying to nationalize the industry here and that's the real underlying effect of the whole climate change. stuart: we should cheer up.

>> and the president is watching you. stuart: that's good too. [laughter] stuart: cnn political commentator margaret, granddaughter of a president and republican, she accused president trump of appealing to white nationalists when mr. trump vowed to destroy ms13. roll tape. >> there is a political move here to highlight people -- people who aren't white, i think minorities and to feed part of this white nationalist political support of donald trump. stuart: before i explode and ruin another good day, i want your reaction to that? >> can't fix stupid, part 2. ms13 is a domestic terrorist organization. you have it right here in long island, not too far away. these are people that we have to get off our streets and these are people that are seeking out

the sanctuary cities, so what ms. hoover is talking about shows lack of understanding, dismissal of the people on that certain network. stuart: i think it's worst than that. she's pointing to donald trump as a racist. >> of course, she is. this is the thing. since they are not white they are therefore victims. she doesn't want to focus on exactly what they're doing. this comes back to the whole identity politics, other side. the other side believes that this is a winning issue for them that ms13 should be protected and allow today thrive in the united states of america, there's no way that they could be in control of the country. stuart: i have an update of ms13 battle in long island. have a wonderful, wonderful day. [laughter] stuart: all right, why don't we check the futures market, let's see if we are going open at 22,000 and the answer is, yeah, we are going to be right at 22k when that market opens up in

about 10-12 minutes. we have a bombshell from tesla's elon musk, he's dealing with serious psychological problems, bipolar disorder and, quote, unrelenting stress. we will have details on that after this meta appetite control...

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all-time high, corporations have never made as much money as they are making now and on friday of this week, we get the job's report. that's like it to be very strong. that was me on fox news channel, "fox & friends" earlier this morning. apparently, president trump was watching because 20-30 minutes after i made appearance on fox news the president tweeted this. corporations have never made as much money as they are making money, that was my script, by the way, thank you stuart varney, "fox & friends", jobs are starting to roar, watch. i don't know what's going to come up in job's report. i believe it's going to be strong maybe up to a quarter million new jobs in one month. am away off base? mike: i don't think you are, wages will pick up as well and people are watching closely.

more importantly, these are longer-term jobs, we were talking about gig economy, people are being hired for real jobs where they can support a family, go out and buy a home and that's the difference that we are seeing in this economy right now. stuart: i think there's a mood of economic optimism, i think it's justified. liz: i think the president if he barn storms the country, getting companies to get cash back home to invest, that would create even more jobs. in fact, the new chief of staff john kelly has reached out to chuck schumer and nancy pelosi to talk about the agenda going forward. stuart: okay. check my futures market again, we are close to the opening bell. we are going to be up triple digits so very close to it. let me remind you that we closed yesterday at 21,891, 109 points away from 22k. we open up triple digits, you'll be right at 22k at the opening bell. a couple of individual companies

and their stocks making some news. ford motor company, sales down 7 and a half percent. that's year over year, sales down 7 and a half percent. ford barey -- barely holding. hackers broke into hbo and may have leaked unreleased episodes of several shows including a script for next week's game of thrones episode. it's unclear who is behind the recent hack. i don't think it matters, does it? mike: it can receiver as a way -- serve as a way and this will have zero effect on time warner or hbo or game of thrones. stuart: i think they are getting used to it, frankly. bombshell, elon musk says he's bipolar and suffers from

unrelentless stress. >> he's got the highs and the lows from unrelenting stress and basically saying he's just taking the pain of that stress and he's making sure that he's doing what he loves doing. now, we were talking at the break, he also said yesterday and this is what drove tesla down in trading about 4%, he faces six months of manufacturing hell for the new model 3. he's trying to ramp up to half a million cars a year. that's six times what the level of what they produced last year. going through a lot of cash flow right now, 2 billion they burnt through already. stuart: don't you see this with a lot of very successful hard-driving people, the peaks of enthusiasm and joy and the valleys, the deep, deep valleys of depression. mike: sure, steve jobs come to mind. i don't think that surprises anybody. he's been able to deal with it and run several companies,

several multibillion dollar companies, i think elon musk will be just fine, just venting on twitter a little bit. stuart: i used to be down on elon musk, lived on government handouts, okay, his companies do get a lot from tax credits, but the man is really a visionary, there's no question about this. >> he takes the feeling into the business and what he's focusing on. he's not wrong also about artificial intelligence. we were reporting the story about facebook discontinuing that unit, they found the robots could talk to each other in a language that we cannot understand. they didn't -- the robots didn't like english, it was too slow. even though zuckerberg saying, musk, you're overblowing that, he's not wrong. artificial intelligence is the new -- he is a visionary. that's to your point. he's a visionary when he thinks along those lines.

stuart: we should push tesla in with the big five technology companies, it's not there in terms of market value yet and not performance either but visionary company. mike: for sure, one thing with all of the companies he's trying to solve world problems, dependent on fossil fuels, getting people up to the moon, so i think he's a visionary unlike anyone else that we have out there right now. >> tesla dissurpass ford and toyota in market cap challenging gm as well. stuart: isn't that extraordinary. >> a hundred thousand cars per year. stuart: less than a hundred thousand cars per year and your company is worth more than ford motor company. mike: technology company, maybe battery company. i think it grows unlike the other auto companies out there. stuart: welcome viewers, you're about to see the stock market open, that'll be in two and a half minutes time. i hope you can stay with us because it is going to be quite a day. i think looks like from the

future on the left-hand side of the screen, looks like we will be right at 22,000 when we open this market in precisely two minutes and ten seconds. please remember the dow closed yesterday another high, by the way, 21,891. if we go up 109 at opening bell, whether he -- we will hit 22,000 at opening bell and who knows where we go from there. we might sell off, i don't know. we also have to remember that at 4:00 o'clock this afternoon we are going to see the latest financial results from apple. now when these big technology companies report their earnings, well, you know, the stock can really move and the overall market can really move. there's nobody as important as apple except perhaps amazon, would you agree with that? amazon is up there with apple in terms of importance for earnings report. mike: apple if you had to give it to one person, apple's market cap is so much bigger than the

other ones. they are watched more and can have a bigger push on the market than anyone else out there. stuart: apple is worth $775 billion, google at 930 is worth $649 billion. microsoft 560, amazon 472, facebook 490 billion. add it up, $3.1 trillion worth of wealth in just the five big tech companies. liz: bigger than france. [laughter] liz: talking about apple, this is the weak quarter, april to june. you're right about previewing iphone edition, will it have the infrared technology where you can lock iphone by looking at 3d technology. stuart: you can tell that we are in premarket open mode because we have the dow on the left-hand side of the screen unchanged.

in about 17, 18 seconds that market will open and that number will start to move. we are going to keep that number up there. the dow jones average where it is. we will keep it up because we think it's going to hit 22k, we have a nice graphic, cheers, trumpets, it is 9:30, where did we open, up 64, up 80. up 84. come on, people. [laughter] 22,000, don't disappoint me. up 88, up 89. we are 17, 16 points away. 20 points away. okay, let me continue here. we are up 87 points, 93 points in the dow industrial, 21,983. it's a horse race. awfully close. if one person buys 10,000 shares of microsoft that thing goes to 22,000, come on somebody. you have money, murphy.

put the order in for heaven's sake. 21,988. i have a lot of other stuff to do. let's move on. who is with me on a historic day, elizabeth, mike murphy and cheryl casone on the floor of the new york stock exchange. welcome all. optimism am i right or am i right scott? >> obviously going through this big 22,000 could be seen as decent deal but, you know what, the higher we go, stuart, i need to see more because we are getting closer and closer price for perfection and mistakes will be pushed at higher levels more than than they would be. stuart: downer from london. time to get back to illinois and pay your taxes. [laughter] stuart: economic optimism. there it is. mike: economic optimism and focused on corporate earnings.

we are seeing a lot of companies come out with profits that they've never reported before. companies are putting big numbers that, i think, can support the dow up here at 22,000. if we get any sort of positive momentum out of washington regarding health care or tax cuts, that's the next leg up. liz: despite dc swamp and bog down. i think you said it, 18,000, right, when president was elected, now it's moving higher. stuart: 18th on november the eighth. it's now august the first and we are at 21,000 whatever it is, whatever it is. what did you say, scott, i missed you? >> quickly, i have an interesting stat. this is what i mean about perfection, all those reported, if you beat your earnings and sales, you are rewarded not even half percent bump in stock price. you missed on either one, you get punished 1 and a half to the downside and if you miss on both you got punished by more than 10%. that makes me feel like we are

getting to levels where mistakes are really going to hurt. liz: wait, he said earnings estimates. [laughter] liz: i usually get buzzard. [laughter] stuart: we are having a good time because this market is at an all-time high. you have never seen the dow industrials as high as this. there's some serious winners amongst the dow, 3m, intel, united tech, verizon, dupont, all of them are up. not sis níficantly -- significantly but they are all up. now let's look at apple. they report after the closing bell today. do you have great expectations for apple's report mike murphy? >> i do. i think they will come in with solid norms, beat on both eps and revenue. name of the game for apple usually is the guidance. are they going to give us good guidance? if not, the stock sells off. if they give us positive news on

china which has been a weak spot for apple, i think the stock has a lot of room to run. it's been 145-150 range for a long time. could break to the upside with good news. stuart: are you bearish about apple? >> no, i'm worried if they miss on earnings or numbers, if they miss sales and earnings the market punishes them. if they do beat on both, a little bit of uptick. they will have to overimpress and i agree that they are going to have good guidance to really be the win at the end of sales if not the market has been punishing people heavily lately. stuart: we have not yet hit 22,000. we got real, real close but we didn't quite hit it. i've got your amazon story of the day. corporate executives are more worried about amazon than the president. that's interesting. liz: they are really looking over their shoulder at amazon, not the president. of all the earnings and

corporate events over the last year, specially the earnings calls, 1800 times amazon was mentioned. amazon is the first story, president, what's going on in dc and wages. stuart: let's not forget that amazon disappointed a little bit with latest earnings report and sold all the way to 930, i think, somewhere around there. now it's bounced back. close to a thousand bucks. mike: got to a thousand 50, a thousand 60. amazon should be looking at their shoulder at the president because if there's anything that's going to derail amazon antitrust if they get too big for their -- liz: they already have 20 congressmen talking about that. stuart: 20. they are so powerful and so rich you can expect the people that they hurt gang up against them and say rein them in.

now, we did not hit 22,000, we are actually at 21,972, not bad. under armour, the stock is down. the company says its restructuring, it's going to cut jobs and it's down 6%. pfizer, that stock is down driven by low demand for its rheumatoid arthritis medicine. lower profit from adm, that's the agriculture people, it's up a buck. 2 and a half percent. look at general motors, sales down 14% in july compared to the same month last year, ford, their sales were also down, not good for detroit today but general motors still at $35 a share. it's been there forever. you have to look at facebook.

it just acquired a company called ozlo, artificial intelligence start-up, four year's old in palo alto, california. facebook wants it to help build messenger. they are trying to catch up with apple and alphabet. are they late to the party on this one? mike: they are not. facebook has a huge audience, stuart, people said they were late to the party in keeping up with snapchat and you see how that's turning out for them, facebook has something that no one else has and that's engaged audience on their mobile phones that you're looking at and 2 billion people on facebook right now. i think they can go -- they are liking amazon where they can go anywhere they wanting to and they have the size to get there. stuart: do you think if the big five technology companies, facebook has the most upside potential? >> i do. i think they can be the first trillion dollar company. stuart: you own it?

>> for a long time. stuart: i'm not going to do that. [laughter] mike: see my family. stuart: why are you laughing scott in london? >> he might want to swap microsoft from facebook stock. stuart: are you accusing of me -- >> just a little bit. stuart: cheryl casone in the floor of the new york stocks exchange. what's the mood down there? cheryl: come on, the day is early, stuart, give me a break. we only need 108. come on. we have a long way to go. a lot of the traders are saying that despite all the chaos that you see in washington whether it was anthony scaramucci let go, new staffing coming in, chief of staff, wall street is on its

hair and it's not going to change, one of the traders here as long as earnings keep positive momentum yields at lows who the president and all the chaos is isn't part of the conversation right now. forget about the chaos in washington, we've had a lot of stocks on incredible runs since the election. they all don't see that changing. if you look like you're boeing, mcdonalds, the names that have been powering since the election. mood down here is pretty fun. i love being down here on days like today why do you think i pushed nicole petallides out. stuart: good day to do that, i tell you. focusing on netflix. the stock has been riding high. spent -- it's got $20 billion worth of debt but pouring money into new content and the stock is at 182. >> we have been saying this for months at varney & company and other shows.

i have been reporting that off balance sheet debt makes debt double and now the media has picked up on the la times and others and the daily mail are reporting it. we have been saying quite sometime questioning netflix business model, the debt loan is six times shareholder equity. 10, 20 times, can they afford what they are doing with this business model of loading up on debt, buying new content and not having the cash to support the debt load? stuart: you got through that without a single buzz. are you an accountant? >> no, i cover corporate accounting. resident geek nerd here. stuart: that's okay. i'm trying to think of the name -- what are those people that assess your life expectancy? actuary. >> i sound just like one. sorry about that. >> you're not too far off, stuart.

stuart: not too far off what? [laughter] stuart: death? president trump tweeted about me today and used my name, i will have you know, did you know that? >> there you go. that's good. stuart: it is the pinnacle. jc penny is teaming up with a popular show project runway. mike: jc penny, they need to get people in there somehow. i think it's dead man walking jc penny. i don't think it can move the stock and not having any impact on it. speaking of debt, they have too much debt and need to close stores and really irrelevant at this point. stuart: we have covered money since 9:30, we have not hit 22,000. we thought we might but we got awfully close. let me switch from money to

politics for a moment. white house has floated a really aggressive tax-timetable for the fall of this year. so let me go through this, mike, we are going to get details in september, house votes in october, senate votes in november, president signs it. that's a very optimistic time frame. are you buying into it? mike: i think the approach this time is rather than trying to force it on people, they arelying out how they are going to do it and hopefully the president will go out and sell the message and if we get that everyone out there rich, poor, black, white, tall, fat, skinny. if we get the right people behind it, we get the tax cut for the people. stuart: you always talked about a show-me market, show me the tax cuts, show me the growth, do you think we will get a tax cut this year? >> stuart, it's almost like i got stockholm syndrome and

falling in love with captors and it's congress. i'm not going to get fooled into believing anymore about their timelines, deadlines, measure ables, right now i have to see the tax cuts right in front of my face or i am not going to think about it. it doesn't mean anything to me until it's actually done. i'm going to wait until i have the proof in the pudding. stuart: i don't blame you. fair point to make. scott, cheryl casone, mike murphy, thanks for joining us on what could have been historic opening day of the market but it wasn't. i will take it, i will take it. where are we, by the way, 29,960, up 68 points. we got right up to 5 or 6 points of 22,000, didn't quite make it. let's move onto taxes. the chief economic adviser to the president says the tax plan is coming together, roll tape.

you can hear that -- can you put it up? that was mr. cohn, gary cohn. there we go. [inaudible] >> we have total agreement on major issues. people are going to be concerned about border tax and not border tax and we clearly said we are not having border tax and so we are showing to the world -- [inaudible] stuart: joining us now tony, assistant secretary at the united states treasury. mr. cohn is upbeat there but first you've got bet the budget done and debt ceiling and then tax cuts, have i got the tax frame right on that? >> that's about right, stuart. thanks for having me this morning.

he layed out, i think, a reasonable time frame with the secretary where you can have legislation crafted by the committees of jurisdiction coming in early september, moving through the house and the senate through october, bringing it to november and at that time you are also going to have the opportunity in congress to address the debt ceiling, to address the budget. the fya team which could be necessary for advance meant of tax reform. the thing that's absolutely clear as gary cohn, mnuchin said yesterday and principals who put joint statement last week, we are unified on getting tax reform done and getting it done this year and key elements have become agreed upon to set framework for it and get it moved quickly through congress. stuart: tony, we heard it before. i don't mean to be blunt. >> i expect you to be blunt. stuart: it's not happened, a total fail on health care, why

should we believe that this time on tax cut, this is it, it's going to get done? why should we believe it this time? >> our colleagues are still working on health care and encouraging them. on tax reform we have taken pathway, clearly from the beginning we have worked together with leadership on capitol hill involving over 200 members that secretary mnuchin has met with along with gary cohn engaging hundredsover stakeholders, businesses, trade associations, small business interest groups, all the elements into the dialogue and listening to them to see what needs to be done on tax and what you're having now is the fact that on the big items, on the bat, expensing, on perm neans, on making sure we have lower rates on business and individual side creating a center focus on middle-income tax reform on the individual side. we have total agreement on the republican side. we are starting from a very strong position to get this done this year.

stuart: so why is general kelly the new chief of staff of the white house reaching out to democrats on tax reform? i mean, why do that? i don't think democrats are going to cut anybody's taxes. >> they need to make calculation whether or not they want to help the president and secretary mnuchin build the economy. scrap the tax code. get rid of loopholes and deductions. i think there's a sinserity. we are doing our part. we are reaching out. secretary mnuchin has met with key democrats, congressman neil, someone the secretary talked to about tax reform. we are definitely interested in having participation from both sides of the aisle, they have to make the decision if it's -- if

they have the political will to do it. stuart: you work at the united states treasury, are you suggesting -- you don't tell president trump anything, are you suggesting to the president that he get out there in the month of august and use his bully pulpit which is the oval office, it is the presidency, like an address to the nation from the oval office or a serious of speeches around the country, rallies, are you suggesting he gets out there and sells tax cuts? >> absolutely stuart, 100%. secretary mnuchin said yesterday the president will go out and sell tax reform. he ran on this issue. he focused the conversation on growing the economy and long-term jobs to the people who have been suffering from anemic growth. when you the president, you have the secretary working together almost every day on this issue to bring serious economics and steer economic growth, the same level at 3%.

this is the president's agenda item that he is going to take to the american people. this is a large reason he won the presidency. i think he believes in it very strongly. stuart: tony, sounds to me like the democrats have organized a lawn mower or a leaf blower in the back. [laughter] stuart: that's a photographer. we have to cut this short, tony, thanks for the pep talk. let's see if the president will get out there and sell a very important piece of his agenda. thank you for joining us, sir. >> thank you. stuart: time to get back to that market. market scan, as we call it. mostly green for the dow industrials, yes, we are up 71 points. we are marching pretty close to 21 -- sorry, 22,000, get that right, stu. after the break, judge napolitano, question for him, is amazon getting too big, time to break them up? that's a good question. super bowl winner kurt will be here on varney & company and ask

him if he knew the risks of football would he still have plaid the game?

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very powerful, near a thousand dollars a share and, yes, it is under the microscope, some say it is a predatory pricing operation, it is also under investigation for maybe violating sanctions on iran. judge napolitano is here. judge, look, you're a libertarian, you like small government or no government at all. do you think we should intervene on amazon because it's so big and so powerful, bring it down to size? >> let me take my own views out of it and let me tell you the laws. the general rule of thumb for suggesting that a monopolist needs to be examined and broken up is when they can dominate 75% of their market and i don't believe am disown is anywhere near there. the other rule of thumb is when the alleged monopolist can stifle competition by interrupting supply lines or

controlling manufacturers, then amazon is not there. stuart: stop hiding behind the law. >> you asked me to explain what the law is. stuart: i'm asking your opinion. >> they have no right to break them up. this is one of the greatest entities on the planet today and provides incredible services to all kinds of people. stuart: only difference to you is big government is bad, but big corporations because they are private they are okay. >> big government comes by coercion. don't pay taxes and they come after you. i can't avoid the government. stuart: you can ruin the competition just by saying you are going in that arena. >> it hasn't happened with amazon ruining the competition. i understand that there are fears that it might happen. right now amazon provides so many goods and services for so many people, i think even the

person interrogating me now is very fond of amazon. stuart: yes, i am. >> correct? stuart: to change the subject, have you always been a libertarian? >> in my senior years, watching government lawyers avoid and evade the constitution. stuart: i bet you became a libertarian and that taxation is theft the very moment that you have to pay a significant -- >> profoundly moved me. of course, at '64i could barely read. [laughter] stuart: judge come back at 11:00 o'clock. thank you very much. if you watched the mainstream media coverage of collapse of venezuela, you think it was the collapse of price of oil, think again. it's the collapse of socialism, my take on that at the top of the hour. here we go.

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the collapse of oil prices. this is is the way the left covers up the collapse of socialism. it is true that oil has gone from $100 a barrel to less than 50, and that has not helped the regime in caracas. that is not why venezuelans are fighting in the street. in classic socialism style, nationalized whole industries and ran them into the ground. they stole farms and land and hand he haded over to cronies. their thugs beat up opponents. hugo chavez's socialist revolution and now nicolas maduro's socialist dictatorship, destroyed the economy of what was once a prosperous society. on this program yesterday a marxist professor at american university you don't create a socialist omelette without breaking a few is. we should point out 120 people have been killed. just a few eggs? the left is saying silent on

venezuela but still pushing socialism light for america. senator bernie sanders has introduced legislation for socialized medicine, single payer. elizabeth warren continues to rail against capitalist enterprise. you didn't build that she says. yes we did. capitalist enterprise built america. our constitution gave us individual liberty about. we should remember that. next time you hear socialists talk about a workers paradise, remember venezuela where socialism is collapsing into bloody civil war. the second hour of "varney & company" is about to begin. ♪ stuart: oh, of course. frankie valli.

liz: that's right. four seasons. stuart: that was good. nice choice of music when the dow is approaching 22,000. look where we are. we're up 63. 21,954. we got within 10 points of 22,000, backed off a little but still a rally. look at winners since the dow hit 21,000 back in march. look at them. boeing, mcdonald's and apple all up very nicely since the dow hit 21,000. five tech stocks we check them all the time. you have to because that's where a lot of the money is going. by the way apple reports after the closing bell today. it is up just a fraction. all other big names all to the upside. we're following a couple more lesser-own individual stocks moving nonetheless. general motors, 14% drop in sales year on year. that stock is at 34, down a bit. lumber liquidators huge gain, up

29%. same story with xerox. up 1%. nonetheless up today, xerox. we're watching for dow 22,000. we've been watching all morning. come on in an economist. lao. john, i say there is move of economic optimism. ignore the swamp. ignore politics. there is optimism about the economy. that is boosting the markets. do you agree? >> i agree. there is more than optimism. there is kind of rubber hitting the road. we had number of regulations being repealed. there is optimism about the tax changes. right now the united states has the highest tax rate in the world. almost 40%. you have canada, about 20%. where is somebody going to invest the dollar if, each dollar they make in profit they keep to cents more? that may change very soon. stuart: john, why are eninvestors expressing any confidence that we'll get a tax cut?

the republican party, congress, failed miserably on health care. didn't get it. why are investors believing this time around, this time we'll get it done? >> well look, even if you think there is 50% chance that something will go through, this will be such a massive change, if it does get through. we'll see investment flowing in from around the world. this will be the 1980s all over again. capital is very liquid. it moves very quickly particularly in international markets to where it can get the highest return the if you lower the tax rate from 40% to 20%, that is a huge difference and people who wouldn't have thought investing in the united states before are going to flood money in here. stuart: do you think some of the cash will come back to america that is currently being held by big technology companies? apple has got about $220 billion cash sitting overseas. does that come back here if we get tax cuts? >> yeah, a lot of that will come

back but that is just a small portion of the money in international capital markets that will flow into the united states. stuart: wow. where do you think we would go on the dow industrials if we really do get tax cuts this year? >> oh, my guess is, you probably, if you think there is 50% chance they're going to get this, my guess is, actually getting it you may see another 400 points, 500 points maybe in the dow. stuart: just on the news that we're likely to get it, that's it? >> right. stuart: okay. how about amazon? corporate executives now adays mention amazon in their earnings calls more often than president trump. frankly they're looking over their shoulder. they're scared of amazon. your thoughts on that? >> well look, why shouldn't they be scared of a company that provides products at a low price and high quality? i mean that should scare lots of potential competitors that are there. stuart: okay. john, thanks for joining us.

that was very interesting, your statement on tax cuts, a flood of money comes in, if we cut taxes. we're waiting for it. we're patiently waiting. thanks a lot. let's get back to venezuela. civil war, there it is. some on the left are blaming president trump for the country's collapse. msnbc anchor joy reed tweeted this. meanwhile trump's weakness, an suitability for the presidency have real live consequences. venezuela, pakistan, jerusalem, all melting down. katety pavlich, you're going to have to deal with this because i can't. townhall editor, fox news contributor. go, your reaction. >> first on jerusalem bit, the reason why jerusalem is quote melting down in her words, two palestinian terrorists killed in gold blood two israeli policemen. israel put up metal detectors to prevent further terrorist attacks. that is another topic.

go back to venezuela. this is what the left wants. look at venezuela as it is. perfect depiction what we saw with the castro regime in cuba. people being taken from their homes, met call opponent being thrown in jail. being arrested for smuggling milk as if they were smuggling drugs because they are starving. people on the street eating cats and dogs because there is nothing to eat. the government has failed, socialist regime failed. mainstream media is ignoring it, acting like president trump's fault when it is direct result of a socialist failure to provide for the people. stuart: i just don't see how that washing with public opinion. i don't see how intelligent americans possibly believe the collapse of socialism in venezuela is is because of president trump as president of the united states. i can't see that being believed. >> i don't think americans believe it. what the left will argue, this is not really socialism. this is not democratic socialism. this is a different version of

socialism. let's not forget it was bernie sanders in the 1980s who praised nicaragua government for bread lines, it was determination of economic progress government was giving out food to its people because it represented government providing for people. this is no different. if anything the left should be supporting administration as efforts to put sanctions on maduro, to stand up to him because he is is killing people in the streets and severely violating human right which by the way the left claims to care about but they're absent because socialism is the cause here. they're willing to ignore it as a result. stuart: i got to talk to you about tax cuts. we heard of this timeline, details in september. house vote in october. senate votes in november, the president signs it. do you think the president should and will get out and really sell tax cuts to the american people, sell them

aggressively, barnstorm the country? i think he should do that. you tell me if he will. >> i think that he will. i think that if they can take their campaign style rhetoric, go out to be very specific on tax reform, not go out there to have campaign rally on bunch of different issues, go out focus specifically on tax reform and how it will benefit american families, how companies bring more jobs back to america, how businesses are able to expand because they have more money, be very specific in their focus, i think the president could absolutely travel around the country to sell this if he is disciplined in his narrative. stuart: how about an oval office address to the nation? ronald reagan did that with his tax cut. >> he did. stuart: 30 odd years ago. that was successful. >> the grate communicator. stuart: not necessarily mr. trump's style to sit in the oval office and talk into a camera. he is an ad-lib, on the stage kind of guy, but i think it would have power if he did that

from the oval office. >> i think he should do both. do an address to the oval office to present the presidential aspect, talk how he as president is doing this for the country. going out doing what he does best, contacting with people on the ground saying this is how our tax cuts are going to help you. let's not forget ronald reagan signed tax cuts at reagan ranch away from washington, d.c. that was what was effective. based on president trump's approval rating on a whole lot of other issues on tax reform, it would be get to get in front of people in the oval office and talk to them directly. stuart: do you know president trump tweeted about me today, used my name. i can't get over it. >> was the good or bad? stuart: let me read it to you. corporations have never made as much money as they're making now. thank you, stuart varney, "fox & friends." jobs are starting to roar. you have no idea what effect that has on me. i'm an immigrant in this

country. sitting here in new york, talking directly to the president of the united states, and he mentions me by name. that is pretty cool. thanks for joining us on a wonderful day, katie. >> thank you, stuart. happy to have you in america. stuart: thanks so much. check this out please. tropical storm emily, making landfall off the coast of florida, actually on the florida coast. 45 mile-an-hour winds. several inches of rain. governor scott declaring state of emergency for 31 counties in southern and central florida. here is what we have coming up. long island police raiding several bars believed to be havens for ms gangs. they just did this after the president vowed to destroy the vial cart till. one of the police chiefs at center of the fight joins us. bombshell study on the brain disease cte. found 99% of former nfl players brains. later this hour, former nfl

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stuart: with great fanfare we opened the market this morning. we got real close to 22,000. we backed off. we still have a rally. 21,965 is where we are, 75 points higher. the dow has never been as high as it was this morning. automakers, not good news from any of them. general motors, ford, fiat, chrysler, selling fewer vehicles in july this year compared to last year. only fiat chrysler stock is up.

look at under armour, the stock price hit a record low earlier. they announced a restructuring and job cuts. now it is down 7%. it was down more than that. a new study shows suicide-related searches surged following premier of pop netflix series, "13 reasons why." better explain this. liz: came out in "jama," internal medicine. this is journal for american association of medicine. found 900,000, 1 1/2 million searches suicide and suicide methods in 19 days after "13 reasons why" aired on netflix. spike hower to commit suicide searches, that rose 26%. this is according to new study. now we've got public health officials saying netflix do not air the second season of "13 reasons why." the other issue, they are combating, the book, original book does not have graphic

suicide scene this series has on netflix. the scene is incredibly graphic. it is not in the book. stuart: at this point netflix plans to air the second series. liz: object. stuart: some people object to them airing it. netflix is -- liz: public health officials and teachers are objecting to it because it glamorizes suicide according to them. stuart: thank you, liz. difficult subject. liz: sure. stuart: now this. cnn commentator margaret hoover accusing president trump going after ms-13 in order to appeal to white nationalists. joining us sheriff vince demarco, suffolk county new york, you're leading attack on ms-13. she is granddaughter of a president. she is republican. she says mr. trump did doing this to satisfy white nationalists. >> this is absolutely outrageous. she doesn't know what she is talking about.

ms-13 is preying upon immigrant communities. they are brutally murdering immigrants from central america, honduras, el salavador and guatemala, with exception of two african-american germs they murdered in suffolk county. they're extorting money from immigrant business owners. she does not know what she is talking about. stuart: suffolk county, you're the/. >> yes. stuart: ms-13 is not based there but very, very active in your county, is that accurate? >> very, very active and outside d.c., virginia, maryland. stuart: how many have you arrested? do you have a count? >> 17 have been federally indicted for hurts of, conspiring to murder other members of ms-13 and innocent immigrant children. stuart: i understand you're raiding bars where they might hang out. >> yes. last week, it was friday night. led by homeland security investigations raided three bars in huntington station area in suffolk county. came from tips from the community about ms-13 members that this is some of their

clubhouses where they have been hanging out. stuart: what do you do? surround the place? go inside? who are you? >> basically we know who the ms-13 members are in suffolk county. stuart: you do. >> some are underage. business owners are serving them alcohol. we find weapons and drugs. stuart: you know who the gang members are? you know their names, you know their faces, you go them. if you catch them, what do you do? >> when we catch them, charge them with a crime. if we go in with homeland security, homeland security can take them into custody if they're here illegally. stuart: if they're here illegally. you can't arrest them because they're members after gang? >> being members of a gang is not a crime. stuart: you have to find something wrong. general kelly used to run homeland security. he is now chief of staff to the white house. do you think he has got your back? >> 100%. general kelly is a man of structure and discipline. he ran the southern command for the marines.

he understands what is going on with ms-13. he understands what is going on with the heroin trade and human trafficking and smuggling because he worked closely with toes countries along the southern border. i had opportunity to meet him, had conversations with him two times. his knowledge on this and love for law enforcement, he comes from a law enforcement family in boston. stuart: any push back from people in suffolk county. >> no. stuart: do they like what you do? >> they do. >> is your office an elected office. >> it is. stuart: i am not running for re-election. >> no. stuart: are you running for congress? into no. stuart: i won't probe any further. check this out. seeing video of emergency landing in istanbul, turkey. giant hailstones smashed the cockpit wind screens. how about that? 127 people on board. the captain, ukrainian, was

awarded. they all got off safely. that was pretty good. costumed characters, scantily-clad women in times square reportedly harassing people and tourists for tips. you can't arrest them, why? because they are illegal immigrants. can you believe that. close your eyes, i will kiss you. back in a moment. ♪ we check our phones 85 times a day.

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on food delivery. they're focusing on college towns, no surprise. groupon is up five cents. half-naked women and costumed characters, panhandling aggressively in times square. we're told they can not be arrested. tracee carrasco joins us now. i understand that aggressive panhandling, you can't be arrested for that, but what is the other reason they can not be arrested? reporter: this is a two-fold issue because they are aggressively going after these tourists but the other issue is you know, their immigration status. as far as new york city being sanctuary city, law enforcement sources told the "new york post" before they wanted to come up with some sort of database for these costumed characters for these women to register but the sources say most of them are illegal immigrants, wouldn't register anyway. so police are having a hard time an forcing the rules, keeping them in this squares, boxes they

are supposed to be in because of the policies. stuart: you can't, in a sanctuary city you can't go to someone say, you're illegal? reporter: police can't also, you know, unless they physically see them committing a crime, they can't go after them. as far as panhandling, i guess it depends on how aggressive they get. stuart: not a crime to panhandle? not a crime, freedom of speech to ask for money. okay. thanks, tracee. what a mess. coming up president trump shifting his focus to tax reform after congress fails to repeal obamacare. he is hoping to get a vote on the table by november. will we do that, after all this talk, will we actually get there, tax cuts by christmas? we're asking the question. democrats obstructing at almost every turn. they're blocking the president's nominees. they're slowing down his agenda. so what options do republicans have? will they go nuclear, for example, and drop the fell buster rule. senator john kennedy joins us next.

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>> when it is presented to congress, then the pro-growth parts of it will be effective from that date. stuart: ah. >> what they don't want to do is cut the capital gains tax or have faster depreciation schedules and then have them say, well, this'll take effect in a month and a half when it passes. then nobody buys any stock, nobody sells any stock, people wouldn't make decisions on investments waiting for the bill. so you say the key things start in september, and then if it takes an extra week or two to, no problem. stuart: well, that would be a huge plus for growth in the country if it starts right there when the plan is presented. it takes effect now, that means everybody's paycheck, those upper income people, their

paychecks get bigger, and corporations, they know that they've got a lower tax rate, they can start retrieving money from overseas. so that's -- the effective date is extremely important here. >> it is. and i've been arguing to the house and senate guys earlier that they should set the date back a ways, back when we started this. that did not happen. we now need to get that date set. and if you're a republican congressman or senator -- and these are the only people who get to vote on this topic, you and i don't get to vote, democrats' votes aren't needed or wanted or offered. no member of republican house and senate, if you're up for election in 2018 or 2020, you want strong economic growth. the first two quarters of 2018. not the second two quarters, the first two quarters. stuart: right. i think, and i'm about to editorialize, that the president should get out and barnstorm the

country in the month of august, he should a appeal to his supporters in large rallies, and he should get into the oval office and make a pitch for tax cuts and sell it to the country. i think that will be a good way of holding the republicans' feet to the fire. >> and it'd be very good for the president because it would tie him to his signature issue when he ran for office, and we've been talking about a lot of other things. it would require cable television to talk about tax cuts, even left-of-center cable stations might criticize tax cuts, but at least they'd be talking about tax reduction. they could say they don't like it, that's fine. but they'd have to admit publicly what the president was for and what he was doing, and every once in a while have somebody on, talk about what this would do to strengthen the economy. it also unites the business community completely behind the president and the republicans on taking the corporate rate down towards 15 and speeding up depreciation.

stuart: let's hope he does it, because there's a country waiting to hear that message. grover norquist, thanks for joining us. we appreciate it, sir. >> thank you. stuart: yes, sir. our next guest says senate minority leader schumer and the democrats are blocking president trump's nominees for top jobs. he's got a point. 56 of president trump's nominees have been confirmed by the senate so far. at this point in president obama's first term, 238 had been con firmed. what a difference. joining us now, senator john kennedy, republican from louisiana. what are your options, senator, to speed this up? what can you do? >> there's not much we can do. i will just respectfully ask senator schumer to stop jerking everybody around, go ahead, he knows that these people are going to be confirmed. stop anytime picking -- nitpicking the rules, let us go ahead and get the president's people confirmed. at the rate we're going now, we'll have everybody

confirmed -- i think it'll take about 11 years, is what our analysis shows. stuart: would it make any difference if you were to drop the filibuster rule? i think that's called going nuclear. >> well, it would make a difference, but that's not going to happen, stuart. that's not going to happen. and i don't want to see us get off on a tangent on something like that. look, i was just listening to your comments earlier. you hit the nail on the held. here's what we need to do now. we'll come back to health care. it's something we've got to address. we tried, we failed. we'll come back to it. right now we need to have one goal and one goal only; tax cuts by november. you can call it tax reform if you want to, i call it tax cuts. stuart: right. >> the economy in the first quarter grew 1.4%. that's an embarrassment. the only way to get back to normal 3% growth is to cut taxes on people. you can do it by lowering the rates or increasing the standard deduction. we've got to cut taxes on

business, not just the big c corps, but the llps and the llcs and the partnerships and the sole proprietorships. if you do that, we'll get this economy moving again. but we've got to set a timeline. i say november, and we've got to do it. stuart: what about these distractions that keep coming along, whether it's the scaramucci saga or whatever it is, the chaos in the white house? that is a distraction which seems to be interfering with the tax cut timetable, doesn't it? >> well, it is a distraction, but you know what? it's also an excuse. i heard a lot of my colleagues on both sides of the aisle say, well, you know, we couldn't do tax reform, it was so hard. i mean, we couldn't do health care reform, it was so hard because of all the distractions. i mean, you know, grow up, okay? we're all adults. we're sent up here to do a job. just ignore the distractions. you don't have to pay attention to all that. look, we didn't get what we wanted on health care. we'll come back to it.

right now -- i wish we'd started with tax cuts, but right now we've got to get serious about getting this economy moving again x the only way i know to do that is on the fiscal side. we've done everything we can do on the monetary side. it's the fiscal side, and you can pretty it up and use all the fancy language, but what we're really talking about is cutting taxes, cutting taxes on people, cutting taxes on the middle class, cutting taxes on the big corporations, cutting taxes on the small corporations. tax cut for everybody, and it'll get this economy back to a 3 percent growth which is where we ought to be. stuart: you see, that's why you're popular. it's not just that wonderful accent, which i would love to learn. no, it's going straight at it. straight at it. you speak -- >> it took me years to perfect this accent, stuart. [laughter] years. stuart: well, if you ever want to give lessons on how to teach an englishman to speak properly, i'll take those lessons, sir. mr. senator, thanks for joining us. >> thank you, stuart.

stuart: now this, lyft gaining ground on uber. it says it's carried more passengers through june of this year than all of 2016. lyft added, what, a former obama adviser? >> yes, valerie jarrett, senior adviser to president obama. now on the lyft board, she ran the chicago public transit system. stuart: so -- [laughter] is that a recommendation? >> yeah, exactly. stuart: are you kidding? >> it's a way to get through the red tape and bureaucracies of these different cities because there's been obstacles thrown in the way of lyft and uber. david plouffe went to facebook from uber. so, you know, hey, it's a win for lyft and a 7.5 billion valuation if it goes public. stuart: i have no further comment on this whatsoever. i'm an uber guy. >> let's move on. stuart: project runway, it's partnering with jcpenney. the winning dress, the winning dress design will end occupy

occupy up on jcpenney's shelves and for sale online the day after the show airs. that's moving jcpenney up three cents, 543. knowing what he knows now, would he have played football in the first place, and would he let his children play the game? super bowl winner kurt warner is next. ♪ ♪ cents, 5.43.

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♪ ♪ >> tony saying, the -- tony saving with the u.s. treasury department, he says the gop is unified on getting tax reform done this year. roll tape. >> you can have legislation crafted by the committees of jurisdiction coming kind of in early september, moving through the house and the senate through october, bringing it to november. and at that time you're also going to have the opportunity in congress to address the debt ceiling, to address the budge, the fy-18, which could be necessary for, obviously, the advancement of tax reform. but the one thing that's absolutely clear, as gary cohn has said, as secretary my mnuchn said yesterday and all the other principals who put out a joint statement last week, we are unifieded on getting tax reform

done and getting it done this year. ♪ ♪

stuart: royal caribbean boosts its year outlook, full-year outlook, that is. the market likes that kind of thing, up 3%. the cruise line is at 117. how about this? the new diversity chair for the university of central florida's student government says trump supporters are, quote, not welcome on campus. is there any way you can explain this?

>> his name is grayson lon,za, basically voted in by the student body. it's clear political viewpoints are not included in diversity here. here's what happened, a student went up and said, you know, we have differences, it's great, we can hash them out. he said, quote: i'm not shaking your hand. i do not tolerate you, and you are not welcome here. he also in late october put a post, the new ucf diversity chair, saying trump supporters not welcome at the university. he did that on october 31st, before the election. stuart: he is elected -- >> by the student body. stuart: he's a student, and he was elected by the student body to be the diversity chair. >> right. and you know how much you pay if you're out of state? $32,000 due -- tuition, room and board if you're coming in from out of state. stuart: that's a giant campus, it's in orlando, i think, is where it is. okay, we hear you.

>> it continues. stuart: okay. [laughter] now this important stuff. more evidence that playing football can lead to permanent brain damage. there's a new study, shows 99% of former players had some brain damage. but our next guest is the founder of a company that's developed the first drug to reduce the effects of concussion. dr. jacob is with us, president. also joining us, the great kurt warner, a member of the 2017 hall of fame class. he's invested in the company. doctor, first of all, to you. how does this drug work? briefly describe it, please. >> thanks, stuart. thanks for having us on today. it works through gene amplification. whenever you have a brain injury, a traumatic brain injury, you often have multiple different pathological scenarios going on. so you want to be able to attack all of those. but the only way to do that with

one drug is to work through three to four different gene promoters so you're able the get anti-inflammation going on, you're able to get anti-ox dative stuff going on, and you're also able to reduce swelling at the same time because you're working at the level of the dna. stuart: is it, it's used, it's a drug, and what's your success rate9? can you give me some indication of that? >> well, one of the keys to being successful is being able to get the drug into the athlete or the military personnel as we're sight set for human trials to begin. by giving it phase aaly -- nasaly, it gives you a better chance to attack that cascade of negative events early on which, obviously, gives you a better chance to recover. so that's one of keys. we're seeing in some of our pre-clinical work about a 50%

reduction time in improving memory as well as movement. stuart: kurt warner, you're an investor in this. i take it you are, therefore, a believer. you've seen it work, i take it? >> well, i tell you what, not so much an investor as much as i'm investing in the idea that we want to continue to try to make our game safer. we've all heard the studies, we all understand the physical risks of the game. and i think the game is doing a great job of getting more preventative and finding the things beforehand whether it be equipment or how to protect our players. we're doing better at being reactive when somebody suffers an injury to be able to put them through a protocol and get them out of the games. but the one area we don't have something is the ability to help the healing process as soon as an injury occurs. so that's how i see this is -- i'm sorry -- this is the middle piece of the entire process. it gives us a chance to be able to have a drug that can help

start the healing process as soon as the jury occurs. it's not monetary, it's about being able to protect the players. stuart: now, knows what you know now, would you have still gotten into the game of football as a professional? >> no question about it. i just know the kind of person that it made me, i know the things that it provided me. i love the game. and i think if you continue to do it right and put all these pieces together, that we can make it much more safe, and it can be a game that benefits a whole bunch of people, young kids up to adults. but i do understand the risk. i have young kids that play, that want to continue to play, that want to play professionally. so it's very important to me that if anyone is going to play the game, that you have to stay up on it. you have to do everything imaginable to be ready to protect your child whether that is -- stuart: sure.

>> -- proactive or whether that's reactive with a drug like this or going through the protocol which so many leagues have started to do to help that healing process. but i think this just finishes and completes the entire circle and gives us the best chance to be able to protect individuals from head injury. stuart: well, kurt, you forgive me. i've lived in the united states for over 40 years now, and i remember way back when. there's a story about how you were spotted. were you stacking grocery store shelves? because i remember this from years and years and years ago. you were stacking grocery store shelves, you were spotted, and suddenly you found yourself in the nfl? is that accurate? >> we'll say that i wasn't spotted while i was stocking shelves. [laughter] but, yes, there was a period where i was stocking shelves, trying to develop or find a second chance to get into the nfl. and so, yeah, just about five years later i found myself winning a super bowl. so crazy how things work.

i was fortunate to get a tremendous opportunity and parlayed that into an amazing life for me and my family. stuart: it's a great country. >> and i want that for more individuals, but a hot of it's going to be come with -- going to come with being able to protect those individuals. stuart: it's a great country, i thank you both for being on the show. gentlemen, good luck to you and thanks a lot. >> thank you, stuart. thank you, kurt. take care, buddy. stuart: a golden opportunity right in front of president trump. use the oval office to push tax cuts. get it done. republicans can't afford to fail, and if they can get it done, that will be a huge win for the president. that is my editorial, and it's coming your way. are now just $. we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be. and at wheyou wantven trade wisomto protect it.e,e. at legalzoom, our network of attorneys can help you every step of the way.

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remember, medicare doesn't cover everything. the rest is up to you. call now, request your free decision guide and start gathering the information you need to help you keep rolling with confidence. go long™. ♪ stuart: politicians, that's congress, how will they respond to a military guy who is used to giving orders, not fine-tuning relationships? and will the president listen to him? no answers yet to those questions, but after six months of chaos and little achievement, it's time for a new approach, a fresh start. and that's general john kelly, chief of staff. all right are, there you heard it. that was my take from yesterday. i said, to repeat, general kelly is a breath of fresh air for the white house. all right, here's what you had to say about this. first of all, coming in from peggy: one thing i like about

trump, job security is based on performance. period. got it. and this from another viewer: not at all surprised. general kelly isn't going to put up with nonsense. people better shape up. last one from paul: kelly seems to be the adult supervision that we, the american people, are looking for. it can't come soon enough. lay down the law, general. okay, liz, lay down the law. is that -- [laughter] you're smiling. is that going to work with politicians in congress? >> yeah, because john kelly is smart about it. i agree with the viewers. he's already reaching out, according to reports, to nancy pelosi and house and senate democrats to smooth the planes on the runway agenda for the president to get things like tax reform going, you know, breakneck speed schedule, as you've pointed out. you know, so can he pull it off. stuart: reaching out to democrats? >> yes. stuart stuart nancy pelosi to figure out something on tax reform? >> yes, yes. he has been a congressional liaison as well in the past, so

he has worked with democrats in the past. stuart: all i can say is, general, lay down the law. >> it has been an unhinged ferris wheel careening toward the ocean, this white house -- i know you're laughing. stuart: unhinged ferris wheel careening toward the ocean. you made that up. >> i wish mark steyn was sitting here. are we going to see mortgage interest deductions and charitable interest deductions scaled back? that could be the deal they cut because paul ryan's saying no to what steve bannon said, tax hike on the upper bracket. stuart: we've got a timeline, september, october, november, a timeline. that's pretty good. i'm glad to hear it. >> yes. yes. general kelly, stick to the schedule. stuart: well said, lizzie. all right, everybody, we will be back.

. . . .

stuart: president trump has a

golden opportunity. use the presidency. use the bully pulpit to sell tax cuts. mr. trump left health care to congress and republicans failed. don't let that happen again. especially with the center piece of the growth agenda. when president reagan cut taxes he addressed the nation from the oval office. president trump could do the same. that is how you marshall support from the people. tell the country what tax cuts would do for us all. he could travel the country holding mass rallies like he did on the campaign. transform that energy into a campaign for tax cuts and growth. his supporters would love it. that would pressure the gop. the president needs a win and a win on tax cuts would be the best win possible. no other item in the trump agenda will get the economy going like tax cuts. no other eshoo is as important to the republican party. having failed on health care, they can not afford to fail on taxes. remember last august when hillary clinton took two weeks

off from her presidential campaign. whoa, bad mistake. president trump should do the opposite. sell those tax cuts, end the year with a very big win. the third hour of "varney & company" is about to begin. ♪ ♪ stuart: a lot of people on that song apparently. diana ross among them. oh, please look at the big board, i don't don't you. we got real close when the market opened this morning. real close to 22,000. we're getting close again, look at this. 21,980. we're 19 points shy of 22,000. we're desperate to get to 22,000

because we really do have a nice shiny graphic for you to look at if we make it right there. who is with us? tell you right now "new york times" best-selling author, "american mojo lost and found." his name is peter kernen. you have no doubt in your mind we'll get to 22,000, do you. >> we'll get to 22,000. the world is growing. china is growing at 6%. japan is growing. we feed so many of these countries. we can to the fail to grow. we'll go past 22,000. stuart: how about the mood. i sense a mood about growing optimism about the economy. forget about politics. about the economy itself, am i right? >> the earnings have been there. the job growth is there. it's a little slower than we'd like. it is there and slow and steady and sturdy will get us where we need to be. i want to talk about tax reform. the centerpiece, that is the centerpiece of the growth agenda of president trump needs a win on this you heard me at the top of the hour. i say he should barnstorm the country. sell it.

what say you? >> the most important thing, and i totally agree with you. the most important thing he should do explain what things like corporate tax reform mean. it means better 401(k). it means a better performance in your pension plan. it means more jobs. translate what it means to people to see a tax rate go from 35% to 25% because it is not necessarily intuitive. if you say this will put money in your 401(k), it will help your pension, get you a job, it will basically he promote the growth of our business enterprises. that feels like something the american people would love. stuart: yes, sell it, sell it aggressively. there is nothing wrong with doing that and i think he has to do it in the month of august. he has to do it. >> everybody owns stocks and somehow this notion corporations only benefit from a tax cut. get past that. this is good for you and all americans. stuart: apple reports their financial position this afternoon, 4:00 eastern time. we'll all be glued of course. do you think apple's profits,

apple's report could push us well above 22,000? >> you know it might. this is a lame duck quarter in some respects for apple because everyone is really focused on the next quarter, the new machine, the new 8 iphone comes out. they will sturdily report 8% of profits. shy of $45 billion. justify 13 billion in cash flow. that could take us next little bit but more important what are they saying, what are they indicating about margins or revenues for the next quarter? stuart: numbers stagger me. possibly $45 billion a profit a year. that is pretty close to a billion a week. >> there is a reason why it is the most valuable company in the world, right? that is because they generate cash like nobody else. stuart: i think they may report this afternoon that they have got press close to quarter of a trillion dollars in cash, cash, as a reserve. do you have any idea what they will do with that money? >> the thing they have not done in my opinion, much for their

own shareholders. they're letting their own growth, they're not big on dividends or share repurchase. everyone is waiting for the big acquisition. i think they have great poise. they're staying where they are. nothing is more demoralizing when somebody spends tens of billions on acquisition that is a dud. they are saying we have a lot of momentum. they're focusing on the iphone 8. that is what she thud do. stuart: what do you do with quarter of a trillion dollars? liz: you can buy netflix. >> think about borrowing capacity, they could have half a trillion just like that. stuart: just like that. peter, stay with us through the hour. thank you. want to check the price of oil. pretty close to 50 bucks a barrel. yesterday on this program we had a marxist economist on the show and he said venezuela is unraveling not because socialism is unraveling, oh, no, he said venezuela is going down the tubes because the price of oil has gone from $100 to $50.

that was the marxist reason why venezuela is collapsing. come on in, steven schork, from the schork report, knows a thing or two about the price of oil. i don't want you to comment why venezuela is collapsing. i want you to comment on the price of oil in america. is it responding to the possibility that the venezuelans will stop sending us their oil? >> well, yes. right now the rally that we've seen, stuart, over the past week 1/2 is certainly correlated to the threat of the loss of venezuelan oil. but let's keep in mind, should that oil go missing, that is to say, should the u.s. ban import of venezuelan oil in the long run, stuart, that hurts venezuela much more than it will hurt the united states. so -- stuart: would surely right come in, right? we have frackers who are quite prepared to pump as much as we need? >> yes. but it also comes down to the quality of the crude oil. so what we have to say is the

u.s. could always replace the oil. now there are companies, citgo, for instance, which is owned by the venezuelan government would be hurt by any u.s. ban on imports. refiners like valero, chevron, phillips 66, are in extremely precarious situation, heavy sour crude oil are purchased from venezuela. they can purchase that oil from other sources. in the long run should oil go missing from u.s. oil, venezuela will have to sell the oil elsewhere. the quality of the venezuelan oil, it is essentially mud. u.s. refineries most sophisticated of the world are natural buyer of this oil. should venezuela have to sell the oil elsewhere, they will have to greatly discount it because of lower quality and longer tanker hauls required. stuart, here is the interesting part which many viewers probably don't realize. the u.s. is also significant supplier of oil to venezuela and this is really what the trump

card is for the united states. so last year 30,000 barrels of light crude oil were sold to the state-owned oil refinery for venezuela. should the u.s. ban export of oil to curacao. they have to go to africa to pay the higher price for longer tanker hauls. u.s. sold 75,000 barrels a day to venezuela. should those exports are missing. venezuela will be stuck, going to europe, paying higher prices for tanker hauls. venezuela is in much more precarious state than the united states are. the united states when it comes to oil are holding all the cards against venezuela right now. stuart: we have all the leverage steven, that was very interesting. thanks for joining us. >> appreciate it. stuart: peter kernen, what is your tank on the collapse of venezuela? >> the real triagedy, stuart, if you go back a few years ago when

oil was $100 a barrel, what was it doing for the people of venezuela? what did they do during the periods of time when they were manufacturing it when it was very high? they squandered it. they borrowed heavily. they are in debt up to here with china. they didn't help their people? no. did they do things with hospitals or schools? no. they squandered oil. they have enough oil in venezuela to embarass the saudis. they are swimming in oil. what did they do when they had peak oil? nothing. they ran a venezuela socialist opportunity for maduro and friends to enrich themselves. they were not helping people. they nationalized food stores and ran their business and country into the ground with record high oil prices. blaming it on today 50 bucks. where were we at $100? you were in the same soup. stuart: well-said, peter. thanks for straightening that out.

for viewers i have two weather alerts. tropical storm emily hit florida with little warning, hit yesterday. winds 45 miles an hour. several inches of rain. governor rick scott declared state of emergency in 31 counties. that storm moved away. remain off the southeast coast for the next two days. it is gone from florida. japan starting down, staring down the strongest storm over the year the typhoon is packing maximum sustained winds of 160 miles an hour. that is equivalent to category 5 hurricane. slowing down but could cause a lot of damage if it makes landfall this week. we'll stay on top of that for you. we head to the white house lawn. deputy assistant to the president, sebastian gorka. he will be with us. stay right there. ♪

♪ approaching medicare eligibility? you may think you can put off checking out your medicare options until you're sixty-five, but now is a good time to get the ball rolling. keep in mind, medicare only covers about eighty percent of part b medical costs. the rest is up to you.

that's where aarp medicare supplement insurance plans insured by unitedhealthcare insurance company come in. like all standardized medicare supplement insurance plans, they could help pay some of what medicare doesn't, saving you in out-of-pocket medical costs. you've learned that taking informed steps along the way really makes a difference later. that's what it means to go long™. call now and request this free decision guide. it's full of information on medicare and the range of aarp medicare supplement plans to choose from based on your needs and budget. all plans like these let you choose any doctor or hospital that accepts medicare patients, and there are no network restrictions. unitedhealthcare insurance company has over thirty years experience and the commitment to roll along with you, keeping you on course. so call now and discover how an aarp medicare supplement plan could go long™ for you.

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stuart: this was president trump's tweet yesterday, highest stock market ever, best unemployment numbers in year, wages rising, border secure, supreme court, no white house chaos. get that? no white house chaos. just a few hours later big shake-up, anthony scaramucci out as communications director. that came hours, it was announced just hours after general kelly took over as chief of staff to the white house. come on in president trump's deputy assistant, sebastian gorka. is the west wing all settled? everything is calmed down and you report to general kelly and everything is fine, is that where we are? >> well i just came from one of our trade committee meetings in which general kelly was one of the participants. so everything is ticking along

as you would expect when a four-star general takes the helm, stuart. stuart: he is not known as a diplomat. he will have to be a diplomat when he deals with members of congress who are politicians, not military people or business people. do you think he has the cred, the diplomatic cred to work with congress? >> more than 40 years in uniform, southcom commander. people overlook the fact he was actually an aide. he was an assistant to secretary panetta and also bob gates. so this is a man who knows d.c. and knows the swamp better than most. he is not just an american hero and legend in the marine corps. he is person that worked with congress, with the political structure in the capital. so we have great expectations and president has full confidence. stuart: got it. i want to turn to venezuela. the country is in chaos as you know. we proposed sanctions on the maduro and some of his top officials.

are we going to stick at that? are we going to keep sanctions or do you think maybe there is another step involved here where we get serious, not necessarily militarily but take a stronger position on venezuela? >> so, stuart, we are not an intervention it white house. this is not some kind of a neoconservative 2.0 but the fact is, maduro, president maduro is a dictator and we're going to encourage all of the governments of the hemisphere to hold the individuals of that regime responsible no matter how their rank in. if they're suppressing citizens, innocent women, children and men, we wish all the western community and hemisphere to hold that regime accountable at every level, stuart. stuart: would we ever consider food aid to the venezuelans? they're starving. >> i will leave the question of aid to the state department and

to usaid but, as we say in this administration, we don't give our gameplan away but the situation is dire in venezuela. stuart: has the expression, regime change, occurred in any discussion? i don't know whether you can tell me this or not. has the expression regime change occurred in any conversation concerning venezuela? >> we don't give away inside baseball. sorry, stuart. nice try. stuart: i try. they're at the white house. i thought i would try. north korea, you know, everybody knows, they test-fired a missile capable of reaching denver. they did that over the weekend. can you fast forward to what you think might be the endgame with the north koreans? >> look, again, this isn't obama white house. so we don't tell our opponents, our adversaries what we'll do in advance but we would like people to understand, this is a liliputian flea. north korea is a stalinist regime, they can't feed their own people.

we're united states of america. we're not a superpower but a hyper power. we see this what it is, stuart. this is blatant blackmail. blackmail of the western community. we don't give into blackmail. this president is not to give into blackmail. stuart: we all heard it. sebastian gorka. thank you. >> thank thank you, stuart. stuart: individual stocks are moving. dow 21,957. we did get real close to 22-k but we being backed off. individual stocks are way down, under armour, 6% lower. announced a restructuring plan and job cuts. that is not all-time low but a low for under armour. another cyberattack on hbo. variety reports hackers broke into their network and may have leaked unreleased episodes of their shows including a next week's script for the "game of thrones" episode. it is unclear who is behind the attack. check this out, roxie geta

of florida, youngest female to climb mount kilimanjaro. that is highest peak in africa. guess how old she is? we'll tell you after this. ♪ hello, this is adt,

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stuart: now, this is a heist straight out of the movies. you're looking at it right now. thieves stole $590,000 worth of i phones from a struck while in motion. this happened in the netherlands. it is on video. you can see the thieves, trailed the truck quite a long time. they finally got close enough. hopped on to it. got in through the roof, actually. they passed boxes of iphones to their vehicle trailing behind. five men arrested. dutch officials think the group has pulled off 1of these highway stunts in the last two years. liz: 17 of them? holy toledo. how do they do that? stuart: they're brave. >> they're not following a samsung truck. stuart: very good. liz: funny. stuart: we asked you to guess how old this young lady is, that lady that climbed kilimanjaro.

that lady there. she is the youngest female to climb kilimanjaro, africa's highest peak. she is 19 years old. including their 10-year-old brother ben. scaled, stairs, parking garages, bridges. this was first time camping out. that young lady is eight years old. liz: eight? stuart: 19,000 feet to the top. i've done it myself. liz: good for her. stuart: easter sunday, 1967, got to the top. it is quite something. look at this, world's longest hanging pedestrian bridge in switzerland. 1026 feet long. 28 stories off the ground. it is 25-inches wide. part of a two-day hiking trail through the swiss alps. tourism agency official says the bridge is for hikers with no fear of heights. say that again. someone stole a solid gold

replica of the lunar landing module that once belonged to neil armstrong. cartier gifted it to armstrong after the moon landing in 1969. it was taken from the armstrong air and space museum in ohio on friday. police want help tracking it down. the value of such an item can not be determined. they got that one right. we have someone heading down the hall to the studio who will join us. you know him. i almost said senator andrew napolitano. he is a judge. we'll talk about a challenge to the president's voter fraud commission. jeff sessions going after leakers. all of that next. ♪ potsch: you each drive a ford pickup, right? (in unison) russ, leland, gary: yes. gary: i have a ford f-150. michael: i've always been a ford guy. potsch: then i have a real treat for you today.

michael: awesome. potsch: i'm going to show you a next generation pickup. michael: let's do this. potsch: this new truck now has a cornerstep built right into the bumper. gary: super cool. potsch: the bed is made of high-strength steel, which is less susceptible to punctures than aluminum. jim: aluminum is great for a lot of things, but maybe not the bed of a truck. potsch: and best of all, this new truck is actually- gary: (all laughing) oh my... potsch: the current chevy silverado. gary: i'm speechless. gary: this puts my ford truck to shame. james: i'll tell you, i might be a chevy guy now. (laughing)

♪ stuart: not quite the music that drums up excitement for me but nonetheless. [laughter] we'll take it. liz:ac/dc. stuart: who? liz: ac/dc. stuart: of course. here is the excitement, ladies and gentlemen. watch your money at work. look at that, 21,960. we're very close to 22,000 on the dow industrials.

please remember on election day it was 18,000. today it is august the 1st, we're almost at 22,000. almost said something i shouldn't have said. we're almost at 22,000. peter morici, i want you into this, please. you're tenured economics professor at university of maryland. i think there is a new mood just developing, just brewing of economic optimism. am i wildly off base? >> you're right off target. artificial, intelligence, things of that nature, they will dwarf manufacturing over next 10 to 20 years. american companies and american technology companies are at the for front of that. people are not bidding up say, apple because of iphone 8. they're bidding up apple because what they're going to do and google and others in this area. it is really going to be kind of like the secret code of the global economy, much the way say

the design of water-driven cotton mills during the 19th century. america is out front. guess what? there is nothing, nothing whatsoever the democrats can do to screw that up. it is very hard to tax and regulate. it doesn't pollute or anything. stuart: back to my premise. there is economic optimism appearing. >> right. stuart: the economy is growing more. jobs coming on friday. probably will be pretty positive. the dow is close to 22,000. i would call that optimism? >> i wouldn't focus so much on u.s. growth because it will still come in around good old-fashioned 2.1%. the thing to remember is american companies are growing profits much more rapidly. america is becoming the new holland. have you ever met a poor dutchman? no. since the 1800s they have been making money all around the world. read new york and silicon valley. the two coasts are really part of the global economy. they're doing wonderful innovative things. wherever there is a market for that wonderful innovative stuff they show up. now there might not creates a

much growth as we would like in the united states but for that you can blame people like collins, mikulski and caputo who won't let us reform entitlement system, cut taxes and all the rest. stuart: how about this for a positive? we do have timeline on tax cuts. details in september. house votes in october. senate votes in november. the president signs the bill. now, that is optimism, assuming the gop can get it done. >> in order to cut taxes permanently the way they say, and the way their statement of principles says, the big six document, they have to find spending cuts to finance it. i don't see that happening because entitlements are 60% of the budget now. in a decade from now, they will be close to 100%. the fact that they can't do health care and reform medicaid, indicates to me the budget plan that congressman ryan out there with heavy due cuts to entitlement simply can't get

through the senate. capito, mikulski, collins, three republicans pretend to be republicans look like republicans except when it is time to vote on something important. stuart: do we get 22,000 on the dow industrials if we don't get tax cuts this year? >> as long as it doesn't look like terrible tragic failure that pulls the economy into recession i see the market going up. the election was like death of the henry v 111, the clintons. stuart: i don't know how to translate that. >> when britain got into the elizabeth than era they did quite, quite well. about we keep democrats in the minority where they belong, complaining, crying, carrying on not in a position to do any great harm, the u.s. stock market will do very well and u.s. economy will probably be doing okay. stuart: the first time

henry viii brute into a discussion. >> i figured you would understand how much better things were with elizabeth than henry, but i guess, you've become an american forgotten british history. stuart: be very careful, peter, is judge henry napolitano who regards henry viii as a monster. >> so do i. elisabeth made things good. hillary going away, same thing, monster. stuart: i have to break this up. thank you very much indeed. peter, can we move significantly higher on the stock market if we don't get tax cuts this year? >> yes we can. give you example of july. look at july. the dow jones went up 500 points. that was fantastic. 300 points came from one stock, boeing. boeing has had a fantastic run and what boeing does, like a lot of other great american companies, they serve the needs of the growing middle class and the growing economies of the world.

we are leadership globally, in many industries. that is where the growth will come from. stuart: we hear you, no tax cut doesn't matter that much. market -- >> europe is growing as fast as we are. china is growing three times as fast. japan is growing. all these countries growing. they are needing new airplanes and things we produce better than anybody in the world. once we sell those, profits go up you, jobs go up. good for our market. good for the country. stuart: dow industrials right now, a hair away from 22,000. they have already set 47 records since the election. we're up 4,000 points, $4 trillion since the election. right now, we're at 21,963. this market is hot. now this. a federal judge hearing a new challenge to president trump's voter commission. all rise, judge napolitano is here. what's this challenge to the voting commission? >> does it have subpoena power? and i hope the judge find it

does not because it is just creation of the executive branch, and the executive branch can't create things. only legislative branch. stuart: i want to find out how much invalid voting was taking place. only way to find that out, go for voting records in individual states. i want to know. >> the federal government doesn't have the authority to do that unless congress enacts a statute giving authority. president done this on his own, probably why, prediction, a federal judge will rule this commission is toothless, doesn't have subpoena power and states don't have to cooperate with it. stuart: so all over? we'll not find out? >> republicans control congos. enact a statute creating the commission as a government end ity and giving it subpoena power? stuart: along with tax reform, along with health care reform, along with a budget and debt ceiling they will pass some legislation so we can find out how much fraud there was last time around? >> they don't seem to be able to pass a thing, do they? stuart: do they? >> happen to agree with you. stuart: libertarians --

>> can republicans govern? topic for another time. stuart: very good question a the moment. they're not the party of government. democrats are party of government. >> democrats love governing. stuart: what do you make of this, former national intelligence director, james clapper, reportedly changed unmasking rules in 2013 making it easier to reveal names of lawmakers and staff. i don't understand what on earth this is all about. tell me. >> tell you exactly what it is about. national security agency has been monitoring conversations of members of congress. james clapper made it easier for political appointees made it easier to find out what the members of congress were. a said this, b said that, they want to know a and b said. justice scalia feared it was happening with the court. he feared his other conversations with justices in the supreme court and coming to consensus or produce supreme court opinions was being surveiled by the government. he is probably right.

clapper made it easier for them to do it. stuart: nothing is going to happen, is isn't. >> i wish something would have it. stuart: it won't. >> surveillance state is dangerous to the health of democracy, when raw political data can use for political purposes, what susan rice probably did, we don't have exact evidence, to president-elect trump and national security advisor general flynn. stuart: you do agree with me nothing is going to happen? >> i wish it would. surveillance is the new normal. we're lesser for it. stuart: attorney general jeff sessions told fox news that the administration is going to hold a news conference on intelligence leaks on friday. i suspect -- that is a big deal. >> exactly what we're talking about. stuart: yes. >> he is talking about intelligence leaks from the west wing of the white house during the obama administration where they unmasked people that found out who a and b were in the conversation. donald trump, michael flynn. they unmasked people for political purposes in order to frustrate the incoming administration and embarass

president-elect trump, separate him from general flynn, that is called a felony when you unmask a person, reveal the name of the people involved and raw intelligence data for political reason, not a national security reason. he should be indicting people. stuart: do you think that will come up on friday? does a press conference? name the leak. >> i hope it comes up on friday. stuart, he will have to go very high up the totem pole. stuart: to find the leaker? to expose the leaker? >> to find who caused unmasking. did it stop at susan rice? go to valerie jarrett or only boss valerie jarrett had? stuart: president obama. >> yes. stuart: that is a big press conference. >> yes it will be. i love to ask him how far up the tote tome pole you plan to go, mr. attorney general. stuart: if on our show's hours, i want you please sitting right there commenting on what is going on our screen because i will have it. thank you very much indeed, judge. good stuff, thank you. >> stuart, i forgot. stuart: what? >> did the president mention you

by name in one of his tweets this morning for your presentation on "fox & friends"? because he once told me when he was president-elect, we love watching you on "varney"? even pronounced your name that way. [laughter] stuart: tell you what we'll do. just before the show ends, 15, 16 minutes time, we'll put it on the air. have a full exposure of the tweet. >> remember that lunch you promised me in return for raising that? stuart: yeah, yeah. mcdonald's. i got to get to this. individual stocks, some of whom in the news, making news and making a move. not much of a move for pfizer. revenues are he lower. driven by he lower demand for the rheumatoid arthritis treatment and pneumonia vaccine. the stock is only down 32 cents, one%. sprint up big. the ceo says a merger decision is near. that is good news, up 11%. two stories from california. los angeles sealing the deal on

2028 summer olympics. who are on that. conservative move helping republicans from liberal states like california to conservative states like texas. we've got that story for you. we'll be back. ♪

♪ >> i'm cheryl casone on floor of the new york stock exchange. we were 11 points away from 22-k at one point in the trading session. the dow hitting intraday high. we're not there yet. dow is up 78 points. watching pandora as you see on the screen. this stock under pressure. subscribe are revenue all good. they lowered their full-year forecast. watch pandora. the stock is down 32%. apple, after the bell. it is all about the iphone 8, folks. will they give us a brand new version of the iphone 8? what will they call it? will people go out and buy it, spending $1000 and putting u.s. jobs here in the united states? apple is the stock to watch. we're watching for dow 22-k we'll see if they hit it. same for nasdaq and s&p as well. watch me on "fbn:am" with me and lauren simonetti every day. we'll be right back.

♪ whatever you want to do... ♪ ...is alright with me. ♪ ooo baby let's... ♪ ...let's stay together...

stuart: look at this. los angeles california, will host the 2028 summer olympics. our next guest is a loss angelino by choice. larry elder, salem radio syndicate and talk show host. you're happy the hometown gets the olympics how many years time, 12 years time? >> i actually i am. i'm not an angelino by choice. i was born here.

my mother and father didn't give me a vote. stuart, first olympics, 192 was before i was born. second one i was living in ohio so i'm stoked. one of the rare times a olympics could be put on without losing money. i had the privilege of breaking bread with peter ueberroth who put on one in '84. the key is having in place infrastructure, facilities already there and sponsorship and ticket revenues. he was too immodest to he say leadership. if you have all of these, it will be okay. our mayor went to the london school of economics, stuart. he studied ethnic studies but maybe picked up something by osmosis because he negotitated a pretty good deal. stuart: that is good to hear. you're staying at least through 2028 because you want to see the olympics first-hand. i got it. >> you got it. stuart: there is company called conservative move. that is the name of the company, helping republicans relocate from liberal states like california to places like texas. hold on, larry, i have got some

numbers. 65,000 people went from texas, went from california to texas in 2015, 65,000 people. 9,000 companies left california between 08 and 2015. a lot of them went to texas. what is your thoughts on this? they're being driven out basically, aren't they? >> they really are. i know the young man who started that company, paul, he ran for congress couple times out here. very frustrated not only by the taxes, spending, regulations but by the left-wing politics. he has a the about every shot in texas. decided to make a business out of relocating californians to texas. texas is one of seven states that doesn't have income tax. much easier to start a business. i have a number of friends who left california, moved to texas. i don't think they're coming back. stuart: i mean, i don't see california ever going anything other than democrat because if you're exporting conservatives to conservative states likes texas, all you have got left is

is the coastal elites and poverty-stricken interior. that is all you got. >> i agree, stuart but sooner or later, even the people on either side, either coast in the middle will understand, there is iceberg ahead. i believe as i told you before, the titanic captain would have taken evasive action had he known the iceberg was ahead. there is iceberg ahead, sooner or later people realize our economy is underperforming because of these left-wing politics. i think even lefties will rethink their assumption. at least that is my hope anyway. stuart: you wanted to say something about chris christie, governor of new jersey who got into confrontation with a cubs fan at a baseball game. what did you want to say? >> i put a tweet on my twitter file with picture of chris christie, the media is focusing on his girth, his weight, the fact he is holding a basket of nachos. i thought fat-shamming was something you couldn't do anymore, i guess the last person

you can fat-sham is white male republican. that part is pretty okay. outside of that you can't fat-sham anybody in this country. stuart: you think? nobody else, that is it? just white males, that's it? fat-sham them? that is terrible thing. >> name the last time you saw somebody ridicule an overweight woman? you can't do that. but overweight white male republican, not a problem. stuart: you're laughing -- >> bring out of pitchforks. stuart: bring out pitchforks. larry, thanks for joining us. see you again soon. good luck to you. >> you got it. stuart: president trump tweeted about me this morning, mentioned me by name. read it on the screen right there. we'll tell you what i said to inspire that tweet in just a moment. oh, by the way, today is jerry garcia's birthday. he would have been 75. we'll play some grateful dead in a moment. he was born in 1942. we'll be right back.

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stuart: profits at an all-time high. corporations have never made as much money they're making now and on friday of this week we get the jobs report. that is likely to be very strong. well, that was yours truly on "fox & friends" earlier this morning. right after this appearance this appeared, a tweet from president trump. he must have been watching. he says corporations have never made as much money as they're making now. thank you stuart varney and "fox & friends." jobs are starting to roar, watch! i am thrilled. i am. one of the high points of my life. the president watches the show. tweets and uses my name. >> fantastic. stuart: saying anything more than fantastic? anything else you got? >> you're roaring too. stuart: let me move on. amazon one of the stories on the day, amazon. corporate executives in their earnings call, more worried about amazon than they are about president trump. can you imagine that? >> sampson is such a force of nature.

if you think back to just a few months ago, call it 2015, it is up 240%, the stock since 2015. over within thousand bucks. it is just getting warmed up. what they can do what others don't seem to willing to do, pay for revenues. they did not have a great earnings quarter. they were down 77%. they point their cloud computing again just at any market they choose, at any industry or country. they go avnet flicks. we'll compete with you overseas. we'll charge half what you charge overseas. welcome to the jungle. very tough competing with amazon. stuart: you said they are 1000 bucks a share, virtually $1000. you say they're only just getting started in? >> i think they're only just getting started. being up 40% this year is plenty. don't need to do it all this year. nothing goes straight up. underpinnings what they got

particularly in cloud computing, i don't want to do them, computers you compute them for me, send me results. amazon is dominating that business. that will be bigger business in my opinion in the end, more solid than their online order intry. stuart: is that what the cloud, we keep talking the cloud business, that is what it is all about? >> think of the cloud, i don't want to buy computers. i don't want to hire programmers. here is my stuff. you use your infrastructure to make sense, give me my reports and bells to my customers. you take it, amazon. amazon and google are dominating in that business. stuart: amazon and google, microsoft is in there as well? >> those three basically control the market. stuart: they guarranty you security? >> absolutely. you have theoretical use and by the way, if your company grows like crazy you don't need to worry. we have capacity. just shoot it in. we'll take care of it for you. stuart: the theory, more and more companies, eventually every company will just give their computing business to an amazon or google or microsoft and they will handle it for you?

you just get the bill and results? that's it? >> absolutely right. you don't have to worry about keeping track, keeping up on computers. right now google and amazon control 45% of that business. that is one of the hidden gems behind all the online order entering in amazon prime. is this cloud computing is big. stuart: glad we asked. thank you very much, peter. good stuff. we will have more "varney" for you after this. ♪

neil: well look at this, just about i am to pitch to neil cavuto so he can take over the dow industrials making another run at 22,000. we started the show at 9:00 this morning with high hopes, and a big, big build-up. at 9:30 when the market opened i

was convinced we would hit 22,000. we have the graphic ready to go. we have pictures of money floating down from the heavens but we did not hit 22,000. look at us now. with five second tosca view toe we're very -- to cavuto, we're close to 22-k. neil, it is yours. neil: i'm sorry. reading a tweet from trump. let me see here. neil is a fat loser, sad. liz: stop it. stop it. neil: thank you my friend. we have lot going on. i apologize for my voice. we'll get through this the dow approaching 22,000. a lot of people are saying maybe this is apart from washington? this is all driven by earnings. charlie gasparino, what do you think? >> a lot of it is. a lot of it is what we were talking about the other day i, donald trump for all the hysterics and dysfunction is better than the alternative.