maria: what a show. thanks, everybody, my thanks to dagen mcdowell, general jack keane, jon hilsenrath, great to see you. we will see you soon. tune in sunday morning futures for my exclusive interview with the president and then more on monday in mornings with maria. i will sit down with president trump to talk tax reform, health care, a lot more. varney & company begins now. stuart, over to you. stuart: maria, thanks very much, indeed. we like to be direct, here it goes, the budget passes, tax cuts next, stocks straight up again. good friday morning, everyone. politics and money, yeah, they are joined at the hip. look at this. when trading begins it will be another triple-digit gain for the dow. certainly very close to it. hard to believe but people are now talking of 24,000 on the dow, we are just, what, 800 points away. all of this because tax cuts now look much more likely. last night the budget passed the senate 51-49, senator rand paul was the lone republican no vote. when the tax package it will

need 50 votes to pass. surely the republicans can get these 50 votes. and here is this morning's presidential tweet. the budget passed late last night. 51 to 49, we got zero democrat votes with only rand paul, he will vote for tax cuts, voting against. investors clearly share the confidence, expect another record high moments from now. totally different subject. a passionate rebuke to federico wilson and the media from white house chief of staff john kelly, she was wrong, he was right. wait till you hear what a tomp clinton aide had to say about it. these people have no shame, varney & company about to begin. ♪ ♪ >> most americans don't know

when they lose marines, their buddies wraps them up and put them on a helicopter and sends them home. dresses them in uniform with the medals that they've earned, while that's happening, a casualty officer typically goes to the home, very early in the morning and waits for the first lights to come on. casualty officer proceeds to break the heart of a family member. if you elect a call, the most difficult thing to imagine. the president usually writes a letter. i gave the explanation to our president three days ago. he elected to make phone calls, if you're not in the family, if you've never worn the uniform, if you've never been in combat, you can't even imagine how to make that call. i think he bravely does make those calls.

stuart: well said, sir, john kelly, white house chief of staff delivering a personal defense of president trump's phone call, widow of slain army soldier. here is what the press secretary for hillary's 2016 campaign tweeted about general kelly, just look at this. kelly isn't just an enabler of trump, he's a believer in him. that makes him as odious by the rest. don't be distracted by the uniform. that young man called general kelly who lost a son in afghanistan, odious. how about that? we will have a lot more throughout the program. let's get to the market, the senate cleared a big hurdle for tax reform. look at the green arrows all across the board right there from the opening bell. coming in jeff seca, how much higher are we going to go, is this the beginning yet of another leg up? >> well, i think a market celebrating the fact that this -- you could never underestimate

the incompetency of this congress and the fact that they were actually able to take a step forward and getting closer to the tax cuts, the market should celebrate. right now, the fact that it's this -- reached this level with the anticipation, all we have to hope for is that these tax cuts pass because if they don't, we have a big problem. stuart: i mean, odds are it passes. i'm making the case, very tough to see the republicans turning it down at this late stage. >> right. stuart: are you on board with that that it does indeed looks likely? >> it does look likely. stuart: is that important? >> i think it's very important. it has -- we have to make more progress this year to get it passed this year. i think if it's passed next year there will be disappointment. stuart: a lot more on the program. byron york and your opinion,

please, the budget has passed, i'm saying that makes tax cuts much more likely. i don't know about the timing of this, this year or next year, i'm not sure about that. tax cuts look much more likely, what say you? >> it does make it much more likely. it would have been impossible if the budget didn't pass. it makes it much more likely. the reason to be a little pessimistic right now is because of the timing, because there's so little time left before christmas that pretty much everything has to go right with this process and it usually doesn't go right and also this is a budget bill you have to remember being written in secret by a team of republicans, it's going to be passed by only republicans but whether they can all agree with each other by christmas is a real unopen question. stuart: now the republicans need 50 votes in the senate for the tax plan, when it appears in the senate, there are three negatives there, john mccain and roy moore, he could potentially

vote no on tax, i see three negatives there, how to deal with that, please? >> on the first two health problems, i think it's just a fact that, i mean, a number of the members of the senate over history have been quite elderly and a number of them have had health problems and managed to vote in spite of that. so i think people are a little surprised to see thad come to washington this week and vote and my guess is that he'll be able to do it in the future. on the roy moore thing, you're right, roy moore is a big sort of a loose cannon, unknown factor here but, remember in the alabama race, both candidates were basically saying they supported the president tremendously. i find it impossible to believe that a newly sworn in senator moore would come to the u.s. senate and first act would be to stick it to the president on taxes. stuart: i'm giving it 80, maybe

90% chance that, yes, we get a tax package. are you with me on that? on that percentage? >> i am because of the deseparation factor. we have to remember just how catastrophic the failure to pass something on obamacare was which leads to -- which puts all this pressure on taxes because the thinking is we've messed up obamacare. if we mess up taxes, we are dead next year. so i think that they see this, meaning all the republicans see this as their chance to redeem themselves before going to the voters next year. stuart: yeah, the writing is on the wall. that's my position. byron, tauch, indeed, sir. >> thank you, stuart. stuart: yes, sir. let's get back to markets, we are going to see the rallies, would you look at that, ge, premarket down, what, 7 three quarters percent. on conference call this morning, the new guy coming in did not defend outright the payment of

the current dividend, i should say. jeff sica right here, would you buy it at 21? >> i like john flannery a lot. i like what he's saying, ge had become a very, very overly confusing entity. they were focused on too many businesses, they weren't focusing on core competencies. john flannery is an essentialist, he believes in focusing on the strength, i think ge is going to bottom here. i think it's going to be buyable here. this ceo has the talent to turn this tiet -- titan around and bring it to the point of relevancy. stuart: will you buy? >> yes, i would by it and also they're cutting expenses dramatically, so i would buy it but i would wait because he is going to do -- stuart: would you buy it today at 21 or you will wait till -- >> i'm real close. he has to put out some more

specifics on what expenses he intends to cut. he's selling corporate jets and doing all that. he's cutting billions of dollars of expenses. there could be some pain before bottoms out but i would say that -- that investors who are looking to go into it now are probably in a good spot, after he unrolls this, i honestly believe he's enough essentialist to really do drastic things because ge needed it. ge was on life support and they were not relevant. they were going to become a dinosaur. stuart: let's see if you move the market. if it goes to 22, you'll move the market. liz: a bear moving the market. [laughter] stuart: thank you, jeff. i will bring you back when the market opens. check this out, hiv positive man injecting himself with a home-made drug. now, this is a gene therapy that showed promise in treating hiv,

this method has not been approved by the fda, he's acting as his own guinea pig and streamed live on facebook, how about that? dr. mark seigal coming back to discuss. latest on weinstein, a woman claimed she was assaulted in 2013, that means it's within the statute of limitations to prosecuting rape. the cops in la are investigating. venezuela, yes, still a mess and the government still stands. here is the question, where are they getting the money from and where are they getting the food from, we will have an answer for you. it really scared him out of the markets. his advisor ran the numbers and showed that he wouldn't be able to retire until he was 68. the client realized, "i need to get back into the markets- i need to get back on track with my plan." the financial advisor was able to work with this client. he's now on track to retire when he's 65. having someone coach you through it

is really the value of a financial advisor.

hi, i'm the internet! you know what's dtj! get a job!ting... hi, guys. i'm back. time to slay! heals, heals, heals!

yes! youuuu! no, i have a long time girlfriend. mom! i need my macaroni!!! you know what's easy? building your website with godaddy. pick a domain name. choose a design. you can build a website in under an hour. yeah! whoo! yes! get your domain today and get a free trial of gocentral. build a better website in under an hour. stuart: profits and upbeat forecast from paypal, look at that. we are up 6% on that stock. that was before dollars at share at 71. proctor and gamble shares fall short. remember, this is a dow stock, you couple with ge and also down sharply, that's taking a lot of

steam out of the dow, even though so dow is going to be up 90 points at the opening bell. we have to rally here. as for venezuela, well, there were elections for 23 state governor sunday, here is the headline from op-ed on foxnews.com. venezuela's democracy is dead. the author of that article mariana is with us now, fox news contributor. okay, i've got it. democracy dead, stone dead, gone, good-bye, they are still eating and functioning, we expected them to collapse, where are they getting the food and money? >> collapse is a relative word. they are collapsed but still pumping some oil, so the government has some money, buying food, some food and distributing, the average venezuela has lost 20 pounds in the last few years, so there's government supplies and there's also some smuggling that goes over the borders from colombia. there's food but obviously not enough food so there's a lot of

malnutrition, you know, one of the big problems is the health care system. people cannot get medicines, basic medicines are hard to get. let's remember also, stuart, that the president -- dictator nicolás maduro announced plan rabbit, plan that the government has to get people to breed rabbits in urban settings, apartments so they can eat the rabbits. this, i think, would be a source of protein, he told the country and this, i think, is a reflection of how bad the food shortages are. stuart: i keep expecting to it to collapse. cuba or something. that hasn't happened yet. >> you expect the government to collapse and the reason the government hasn't collapsed is because, number one, they have the intelligence networks that were built by the cubans, one of the reasons they have close alliance with cuba.

cuba knows how to spy on people, monitor people, oppress people, they use all of those tactics to keep the country in line and then on top of that, they have all the weapons and they have control of the military, they have increased the size of national guards to the same size as the military and a single role to have natural guard -- national guard is to repress the population. stuart: we were expecting a collapse, real collapse, sounds like they have a firm grip on power and they stay. >> the only way they will leave now is if there is this revolution and i think one of the reasons why they keep saying, we are going to have another application is because they think that as long as there's a hope alive among the venezuelan people there's answer at ballot box, they will not have this civil war. i think every time they go through one of these exercises where basically they show that there is no option at the ballot

box, increases the odds that there's going to be a very violent rebellion at some point, we don't know when. stuart: should we do anything about it, america? >> the u.s. should continue with the international community, i think it has to be a multilateral approach to try to isolate venezuela. that is going to matter to the venezuelans in the long run, so i think that's a very important component. stuart: you keep saying the long run. i want it now. [laughter] stuart: not going to happen, isn't it? >> a lot of venezuelans that agree with you. stuart: thank you very much. thank you very much, indeed, for joining us. >> thank you. stuart: here is a story for you, new ratings, nfl ratings, ratings overall down, ratings for teams, down, numbers, please. liz: this is what grabbed the attention of the team owners last week. this is what they were talking about with roger goodell, consistent drop in ratings across the board. when you look at the teams, 25 of the 31 teams saw numbers drop versus last year. they are talking steelers down

6%, giants and cowboys 7%. patriots down 7%, jets down 37%. the other thing they were talking about, this is what is alarming the owners, they talk about core cutting and cutting into the ratings, no, core cutting the digital streaming numbers are improving, they are not improving at the rate that the tv numbers are dropping. so that's the issue that they're really worried about in the nfl due to anthem protest. stuart: bottom line, overall people are against anthem protests and they don't watch. significant portion not watching whether it's streaming or tv, not watching. liz: that's correct. stuart: democrat mayor bill de blasio took a shot at amazon, he called the company destruct i have to communities. that came just hours after he made a bid to get amazon to build his new headquarters, second headquarters in the big apple. there's a contradiction for you, i say. two retail giants, wal-mart and

lord&taylor, to take on amazon, we will explain it after this

stuart: i'm showing you gold, $1,283 an ounce, down six bucks.

let's get to harvey weinstein, more on this. lapd tweeting out this. lapd robbery homicide has interviewed a potential sexual assault victim involving harvey weinstein in 2013 investigation ongoing, details, please. liz: now he's really in the danger zone, falls into the statute of limitations. actress, her name has not been revealed said that he showed up in beverly hills hotel, grabbed her by the hair and forced her to have oral sex on him and raped her. sixth woman accusing him of rape. 40 women so far. bragged about power, told her not to fight him, he acted afterwards like nothing happen. she said she barely knew the man, it sickens me still. he made me feel like an object, like nothing happen with all of

his power. stuart: very powerful stuff against weinstein. liz: london police are investigating similar allegations against harvey weinstein. very interesting, liz, thank you. liz: sure. stuart: wal-mart taking a shot at amazon, maybe teaming up with lord &taylor. jeff sica, what do you think about this, seems to me that wal-mart is the competition for amazon, period? >> wal-mart is the king of brick and mortar, they do own that sector. the one thing that's evident to them, they have been playing catch-up with amazon. they have not been the lead on this but they are beginning to learn partnering with luxury brands or brands in particular that have a certain level of success makes perfect sense for wal-mart because keep in mind, once wal-mart is able to -- is able to enhance these -- this branding-type strategy, they

have one of the biggest trucking fleets in the entire country. they can begin to execute on delivery and going to price competition, so amazon is the king, but -- but wal-mart is making some strides and i'm very happy. i think they are finally learning. stuart: i see the stock this morning premarket getting close to $87 a share now. not too long ago it was around 70, 72, 73 and then as start to respond to amazon, right now it's 86.69. >> keep in mind that amazon is going into brick and mortar with whole foods and wal-mart is going into, you know, into this branding strategy. stuart: wal-mart used to be cheap, that's it, now lord &taylor. interesting stuff. stay there. when the market opens, we may well see 100-point gain. bear in mind, two dow stocks,

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stuart: this is going to be

fascinating, in 15 seconds or less actually we are going see this market move up again. we maybe up 100 points, why? because it looks like we are going to get tax cuts. that's my opinion. it may also be the opinion of the market too. would you look at this, wait for it, wait for it. 42 points, 49 points, 52, 55. i'm going through this with the benefit of radio listeners. up 63 points. lots of green on the left-hand side of the screen. green is for winners in dow 30. 67.76, we are still going up. 75, 71, we are up, 23,234 is where we are right now. a rally right from the get-go. that's about a third of 1%. s&p, up one-third of 1%. the nasdaq, please, where are we with that one? we are up nearly a half percentage point. i can say clearly, this is a rally all across the board.

oh, wait for it, general electric, a disappointing financial report and the stock has opened down 5%. premarket it feels at 21, it just opened at 22. that's interesting. profits fell short for ge. now the apple watch, the cell feature, it was mysteriously, mysteriously blocked in china. apple up 60 cents on that one. toyota and lexus led reliability survey, only one american car in top 10. it's friday morning, who is with us, elizabeth mcdonald, jeff sica and dr martin. dr, you say? >> the senate finally passed the budget resolution that's going to allow them to push through

tax bill with only a 50-60 vote, that has the market excited that we can get this done before the end of the year. stuart: thank you, dr. let's go back to jeff sica who will be cautious here, i say the republican party, there's no way that they will reject tax cuts at the very last minute. they will get the 50 votes they need in the senate. >> i certainly hope so but identify -- i've said, this is one of the most incompetent congress' we have ever had. they should have done this a while ago. they should not be this close to the wire, they need to get it done and honestly, if they don't get it done by the end of the year, there's going to be a lot of disappointing people, myself included. they should not sleep until this is done. stuart: okay. we hear you. you're a tad cautious. >> yeah. stuart: bank of america, they are warning of a correction by

valentine's day, valentine's day is february 14, jeff, what do you say 10% downside move by february? >> bank of america has been wrong on their predictions with the correction before, but what i will say is if the tax cuts pass by the end of the year, that correction will not come, that correction will be pushed out probably into second or third quarter but it will not come so it's all dependent on tax cuts and it's too soon to say it will happen in february. stuart: ge, very disappointing financial report. it's $22 a share. d.r., would you buy it at 22? >> i believe that ge has gotten overly punished for what they talked about, they did not give guidance and will not give their guidance forward until november. i believe that we have seen a near-term bottom in the stock and, stuart, i love you but i can't wait to get out of here and buy the stock. stuart: you buy it at $22 a

share? >> yes. stuart: if it goes to 23, would you still buy it? >> then it starts getting dicey. i love it down here. say 22, i love it. stuart: i want to talk about am, you know the new watch, it's not new, well, the cell feature on it has and i'm quoting, now, mysteriously been blocked in china, i don't know what mist internal revenue usely means, i guess we don't know the reason. lizzie, can you tell us. liz: china can't get into the apple watch to do surveillance on its citizens. this is the most important feature, new feature, you can talk to it, a coordinate that apple uses that blocks china from accessing it. i'm telling you, china is a big deal for apple, it's quarterly revenues there down 33%. it's phone market share is cut in half, has been cut in half over the last two years in china. stuart: apple stock has been sticking 155 to 160, stock at

that level when a lot of other tech stocks are going straight up. [laughter] stuart: thank you very much, we are at 78.40 from microsoft. sica, you wouldn't sell it would you? [laughter] >> i will be very cautious when i say this. i like microsoft, i think they are turning it around. i definitely think they've caught on to the fact that they can't continue to do what apple does and roll out new versions of old products, so no, i'm okay with microsoft. stuart: is your mom watching? >> yes, she is. stuart: what's her first name? >> joan. stuart: joan, i mistakenly called your son a socialist a couple of weeks ago and i know that caused disturbance the cause hold, i take it back, he's not a socialist, he's a decent guy. moving on, check the big board, we are up 50 odd points, 54, we

are up 54 points, 23,217. individual stocks, here we go. they are moving, upbeat profit in forecast from paypal, that stock is up, what, 4 and a half percent reaching 70. proctor&gamble sales fell short. they make brands, tide, pampers, probably 30 or 40 more, the stock is down nearly 33%. honeywell, higher sales, stock is up, buck 42 there. sketchers up 31% after wall street firm upgraded it to a buy. it did them a lot of good, did it? 31%, not bad, mastercard says customers no longer need to sign receipts, that makes things faster, the market likes it, it's up 61 cents. just hours after new york city submitted a bid for amazon's headquarters, the mayor of new

york bill de blasio told amazon is crushing business. >> de blasio has to stop talking, the fact that he said this when one of the best things that could happen in new york or new jersey is to get the amazon headquarters here. we have a legitimate shot, we are talking to them, it makes sense for them to be here and de blasio says things like, please go on vacation and stop talking. liz: we are talking 50,000 new jobs if they get the amazon headquarters, and by the way, bill de blasio ignore it is fact that amazon has a lot of small businesses operating on its website selling things. those little guys are all around in the area. >> he famously said he has never bought anything from amazon, i believe he's running on the platform here -- [laughter] >> i think that he's completely missing the boat.

and they didn't give any -- they have very little chance of bringing it here. no tax incentive other from the state. the city is not giving them anything. stuart: do you remember when chick-fil-a opened a store in manhattan. mayor doesn't like chick-fil-a, you to boycott them, lines are around the block to get into chick-fil-a. democrat senator brown from ohio slamming wall street over chipotle, what's this about, liz? liz: basically is they got a down grade from bank of america, merrill lynch and bank of america saying the company is paying its workers too much. so sheriff brown is saying, corporations to short term, short-sided profit returns. he's forgetting that chipotle has severe e. coli outbreaks and companies, this is a fast-food company. and the policies out of democrats have not created higher-paying jobs like manufacturing jobs. there's more to the story than

what brown is saying. stuart: toyota and lexus, they lead consumer report reliability survey. if you look at the list, there's only one american car company on the top 10 list. now toyota has gone up a little bit on that news, there's only -- which car company was it? buick. buick, that's a mark rather than car company. what do you make of this? >> i believe when i was just starting to drive decades ago, the japanese -- the japanese revolution was taking over car manufacturing, u.s. caught up and now we are slipping back again. it's disturbing because all three of the worst brands, stuart, were u.s. brands. stuart: really? >> cadillac, ram trucks, very disappointing. stuart: sad to hear since i just bought a ford. >> trump's policies to bring manufacturing back into the u.s. have just started, i believe we

are going to see momentum and when we see the momentum, we will see an improvement. toyota makes a beautiful car but i believe we will see an improvement in the u.s. stuart: look at general motors by the way, 45.46 this morning. one economist say that is the adoption of electric vehicles could lead to global peak oil demand as soon as 2023 which will result in oil prices crashing to $10. that's what one economist says. you're a money guy, d.r. and former chemical engineer if i'm not mistaken, what do you say about this in. >> well, i think that it's amazing that the discussion has turned from peak oil supply to peak oil demand and it's because of my fellow brothers and sisters in engineering who have learned how to get oil out of the ground sideways, the fracking industry has revolutionized this and i believe ten bucks is a stretch

but i believe he is exactly correct and we are going to get a lot of forces that are going to keep oil prices depressed for a long time. stuart: it does assume that electric cars are going to be as big as everybody seems to say, i'm not sure about that. >> crude barrel that goes out goes into transportation. stuart: 9:41, time to say good-bye to d.r. and to the uber capitalists jeff sica. joan, he's all right. thanks, jeff. check the big board again. bit of the rally has faded. we are up 100 points. now 42. 23,200. coming up, rock star award winning wine maker charles smith, this guy has got a big deal in the wine industry, he is a big deal in that industry. he says it will be years before we know the full impact of the california wild fires on the wine business. he's on the show at 11:00 o'clock this morning. and more on the emotional speech by chief of staff john kelly, he says he's heartbroken that

congresswoman fedder quay -- federica wilson listened to the call that president trump made. you will hear more after this.

>> i was stunned when i came to work yesterday morning and broken hearted at what i saw member congress doing. member congress who listened in on the phone call from the president of the united states to a young wife and in his way tried to express that opinion, brave man, fallen hero, he knew what he was getting himself into because he enlisted, there's no reason to enlist, he enlisted. stuart: john kelly, white house chief of staff, that was

impassion defense of president trump's phone call this week to the mother of a slain soldier. joining us now republican congressman chris stewart, bomber pilot. i have never seen anything like that congressman, impassion defense and very effective in my opinion, you say what? >> absolutely. it was so sincere and, look, these are my father's air force wings, four of my brothers served, many family. there's no one i love and respect more than young men and women who are sacrificing everything to protect and to serve our country and to take an event like this, emotional frankly sacred event of someone's passing while they are serving and to turn it into a political and manipulated into political football like this, i just can't begin to tell you how angry and frankly disgusted i am by it. stuart: congresswoman federica

wilson is describing herself as a rock star, what do you say to that? >> well, i guess in some circles she is a rock star. i tell you what, she doesn't understand the military. she doesn't understand in my opinion the sacrifice of the military and that conversation between the president -- stuart: congressman, forgive me for interrupting, i think she does understand the military and i don't think she likes it. i think she deliberately inserted herself into that conversation and used it for political reasons because she hates president trump, that's my opinion. >> well, you may be right on that and i tell you it's one more example of how some people jump over the cliff on their hatred for the president and regardless of the outcome and it's very unfortunate and disappointing but once again -- i don't know what the president said in this conversation, but when someone says, he knew what he was getting into, that is the supreme complement, what you're saying, is they knew it was dangerous, they knew they were putting their life on the line and yet, he still chose to do

it. there's no more kind thing or complementary thing you could say to someone to point that out and to twist that as if it was meant to be disrespectful or twist it or manipulate our gold star families, people who have sacrificed things that we can't imagine and again to turn it into a football like this for politics because they disagree with this president or they don't like this president, i can't tell you the number of military members that i've talked to over the last 24 hours who are so angry that this happened the way it did. stuart: wait congressman, there's more, brian fallon, senior aide in hillary clinton's 2016 campaign this morning described general kelly as odious. again, what do you think of that? >> well, i have no idea what he means by that or why he would say that. i don't think there's anyone in our government or in our country right now that has more respect

than general kelly. i don't think there's but few people who deserve more respect than general kelly and to attack him for his sincere explanation and his heart-felt explanation knowing knowing the lose of -- loss of his own son who paid the price and attack him because he expressed his views, go ahead and call him odious, say what you will, the american people are watching this and they are smart enough to make an appraisal of who is sincere and who has the best interest of our country at heart and those who are politicians who are trying to move forward a political agenda, the american people can see the difference. stuart: yes, sir, honor of -- to have you on the program. check the big board. we are moving up a bit more, 63 points. jet blue going to stop selling tickets on a dozen travel

websites, why is that, nicole? nicole: this is the way they would get rid of lower-cost seats and they would work with travel websites and all kinds of them, some of them are very small, we are not talking about expedian, jet blue wants more people to come to jet blue.com. well over half of bookings are on jet blue.com. they are getting rid of some of the service that is you may never heard of, vacationexpress how .com, it's first way to cutting costs, priceline, expeddia all trading higher. they say you get better perks there. stuart:ly do it. might even be able to hear their doctor announce their death.

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stuart: well, well, well, hiv positive man turns to do-it-yourself unregulated therapy to cure ailments, using

a gene that could neutralize the viruses. injected himself while he sat on the couch in living room. he became a guinea pig for himself. are we going to see more of this? >> well, look, i'm not against self-experimentation specially if someone is in dire straits. it's not going to advance the ball down the road the way you think it will. the only way that works scientifically with well-designed clinical trial, if you don't do it that way, you won't be able to help humanity. stuart: you will see more a lot of this, for 10,000 bucks you can get a kit which lets you edit your own genes and you can do it yourself. we are going to see more of this. >> we are going to see a ton of it. i'm worried about quality control. i'm interested in compounds in the laboratory that's stopping hiv in the tracks. that's the future.

we talked about personalize medicine, stuart, eventually you will have your own kit. stuart: that takes a long time. here is another story that i find fascinating, you know what's coming here. let me read it. researchers at your hospital, nyu -- >> you bet. stuart: people who temporarily died might be able to hear a doctor pronouncing their death, basically your brain knows you just died and listened in to the doctor proclaiming your death, is that possible? >> you bet it is. stuart: it is? >> it's so possible, people walking around saying i didn't like that guy, right, you're hearing it, dr. sam, the head of research group that's looking around europe and united states for people after cardiac arrests, 2 to 20 seconds your brain shuts off, you're not awake, it takes hours for the cells in your brain to die, hours, during those hour it is cells are still struggling, still alive and still noticing things around them. you came

back from the cardiac arrest and somebody saved you, you'd have memories. now it's not like those movies where you're floating along in outer space, it's real memories that you would have. this has been proven and it's the case. stuart: what about those people who died and said they have seen god, they moved toward the light? >> yes, you and i believe in god. in that moment, in the out of body experience you can perceive a greater spiritual reality. i absolutely believe in that and i think that has been shown again and again. near-death experiences, i'm telling you it's based on chemicals that cells are still alive, i think that's the time when you might actually perceive god. stuart: this might be the high point of the entire show. i think the organ music was misplaced. [laughter] >> good to be with you. that's why ratings are so high. stuart: precisely. federica wilson, zippings --

sinks to a new low using parent of gold star, can you believe it. my take on that next. she thought it was a fire. it was worse. a sinkhole opened up under our museum. eight priceless corvettes had plunged into it. chubb was there within hours. they helped make sure it was safe. we had everyone we needed to get our museum back up and running, and we opened the next day.

. stuart: just when you thought the left could sink no lower, the left sinks lower. florida congresswoman listened in to a phone call between president trump and the mother of a fallen soldier. that in itself is wrong. nobody should be invading that very private and intimate space, especially a politician bent on driving her antitrump acts. here's what white house chief of staff general kelly had to say. and remember, please, he lost a son in afghanistan. >> i was stunned when i came to work yesterday morning and broken-hearted at what i saw a member of congress doing. member of congress who

listened in on a phone call from the president of the united states to a young wife. and in his way tried to express that opinion that he's a brave man, a fallen hero. he knew what he was getting himself into because he enlisted. there's no reason to enlist. he enlisted. stuart: well, said, sir. and let's be clear what happened here. frederique wilson is part of the hate trump brigade. she inserted herself into the president's condolence core and used it for political purposes. that is low, indeed. the media jumped on it. endless headlines. trump disrespected gold star mom. they just plane hate him, don't they? and after this morning after the passionate rebuke, we got this: hillary clinton's campaign aid brian fallon. kelly isn't an enabler of trump, he's a believer in him. don't be distracted by the

uniform. so hillary's campaign guy calls a man who lost his own son odious. look up the definition of odious. extremely unpleasant, revolting. this is another new low. forgive me for injecting a personal note here, but my brother was a navy flier killed in the service of his country. the idea that a politician would listen in to the call between my parents and my brother's commanding officer is frankly disgusting. and to use that intrusion for political purposes is despicable. have these people no shame? the second hour of "varney & company" is about to begin. ♪ ♪ . stuart: all right. this is the big one in terms of the housing business. we've got numbers on existing home sales, liz. liz: 5.3 million annualized. that's better than expected.

it's houston as people there are buying homes after hurricane harvey. they were looking for 5.3 million. it's better than expected. it's still down year over year 1.5%. so it's coming in stronger than expected. stuart: no impact on the market right now. we're still up 30 points. let's check the big tech because some of them are really moving. all of them are moving up. facebook, amazon, microsoft, alphabet, apple, that's where all of the money has been going for the last couple of years, or a lot of it, at least. they are up this morning. financials, they are up. again, this is hoping for a tax reform deal before the end of the year, and all of them are up. and look at this. those are dow stocks, which are at all-time highs. mcdonald's, microsoft, jp morgan chase, 3m travelers. how about that? dow stocks all-time highs. all of them. and the nasdaq -- nasdaq just hitting another all-time high. but look at ge.

lowest level in a couple of years. that's what it hit earlier. they cut their guidance for the next -- for the coming year. dr barton, who was on this show last hour. he says he's out there now buying this thing on the dip at 22. that's where it is right now. back to my take from just moments ago, general kelly and frederique wilson. besides my take, what's your opinion on general kelly? >> i want to thank congresswoman wilson for showing us not to become. this is a perfect juxtaposition between the individuals who are trying to save this country and love this country. john kelly is a remarkable individual. and we can talk and try to describe him or -- and we talk about what the left has become and how awful they are. but there you finally have an example of what we fought against, what americans don't want this nation to become, which is this ugliness, this

really -- well, you want deplorable? there, you've got deplorable. and i think that for general kelly, it's also a very good example of the decision-making of the president. now, look, the president tried in the early days with steve bannon who has a really good skill set with reince priebus. neither one of those man could have said or delivered what general kelly said. treating, frankly, appropriately the media and the left as children. shaming them and reminding them about what's at stake here. and i left the left when i saw -- and not just the difference on policy issues. but this ugliness, this kind of disgusting rage that lives in them that really denigrates the nature of humanity in a lot of ways, and that's what we saw in mr. fallon's response, which is shameful, and certainly the congresswoman's response. stuart: well, said. and i have to break in it's

breaking news from house speaker paul ryan. he's talking about a fourth tax bracket. what's he saying, liz? liz: for high income earners, they're looking to do just that. in other words, keeping their existing 39.6% tax bracket for high income earners. don't know where it breaks at. what the income threshold is for that. this is a bit to get more votes to get the tax package through. stuart: to show it's a middle class tax cut. >> that's correct. stuart: and it takes more money out of the rich. we were up 70 odd points. now we're up 63, 64 points. i'm not going to take that as impact what mr. ryan just said. we're still up 60 points. tammy, i want to talk about this tax deal here. we had the budget passed last night. 51.49. it's on the fast track now to move ahead for tax cuts before the end of the year. am i right in saying that the chances of getting a tax cut very soon just went up a lot? >> yes. the issue is i believe we'll get it. the difference is will it be

at the end of the year? senator mcconnell said that it would be at the end of this -- or it could be at the end of this congress, which could move into next year. the republican we lost last night was rand paul. the president tells us that he is though -- and we heard him comment that he's for the tax cuts. so we'll get it. the difference, though, -- and i think the president made it clear in the beginning in talking about what the tax plan would be is he said there might be room for this extra bracket, so this is not a surprise. the president will be behind that, i think. because it clearly has to be about the middle class. and part of that middle class tax cut is something the republicans have always wanted, which is an end to the death tax. that affects the middle class. stuart: but if you're going to take more money out of the people who are already paying taxes, the top 20% of income earners, that's not stimulative. that doesn't stimulate the economy. you take more money out of them, that's, in my opinion, not so stimulative. >> what you're looking at overall is there's going to be a benefit for them, especially

with what happens to obamacare and in dealing with the impact of that on small business and large business. that's going to take a burden on of. but we don't have clarity on that either. this is going to be a big fight at the end of the year. but when we get it, it will overall help. stuart: to summarize, i think the market agrees with you. investors seem to think that we're on track for a tax cut package. and fairly soon the dow is up 64 points. i want to turn to apple. apple watch, actually. most useful and important new feature is the ability to use the watch as a smartphone. well, that ability has been blocked by china's government. luke managing partner our apple insider is here with us. if they're blocking this ability to use the dick tracy phone, if the chinese are blocking it, is that a big deal? and tell me why they're doing that. >> well, they're doing it because they can't track that

device. what these watches have is an embedded sim card that only apple can activate. china wants to keep track of the sim cards and who's using them and where they're using them. so this is a blind spot for chinese regulators, so that's why they're blocking it. i think the bigger story here, stuart, is not about what the impact of apple's model is. it's small. about .4% of apple's revenue is impacted by this. but the bigger story is that in this future, devices, it's not going to be your smartphone. it will be some form of wearable, and those will also have embedded sim cards. and this dance that they're going to have to play with the chinese regulators for the longer term product line i think is probably the bigger issue here. stuart: i gotcha. thank you so much, gene. one more for you. amazon, they signed deals with apartment building owners. literally, thousands. tens of thousands across the country. they've got a deal to install

lockers for delivery access. 850,000 apartment buildings will ultimately be open to this kind of amazon locker on the premises. that seems like a big deal and a real step forward by amazon. what say you, gene? >> i'm totally with you. and the reason why, this is part of the experience that amazon historically has not controlled. overall experience, the delivery part. and now they have better control of it. millennials don't buy houses. they live in apartments, and they love amazon. and getting those packages can be difficult. most of them don't have the luxury of having a doorman. and so what this allows is for 24-hour access to your packages, and they don't get ripped off. and so i think this is amazon just turning the screws. now, i want to lead the viewers with one kind of fun tidbit here is amazon is going to sell about 9.1 billion

packages or skews, products this year. there's 7.6 billion people in the world. this company understands how to turn the screws on e-commerce and today's news is just another example of that. stuart: it's just fascinating, isn't it? endlessly fascinating what amazon is up to. gene, thank you very much for being with us as always. thank you, sir. >> thank you. stuart: check the dow, please. you're looking at drone is footage from a few miles east of san diego. where the department of homeland security will test out the prototypes of the border wall. each model is 18 to 30 feet high and 30 feet long. contractors have until end of next week to finish their models. and coming up, the contempt for the president seems to have no bounds. so someone decided to see what would happen if college students heard the details of the president's tax plan. but we're told it was bernie sanders tax plan. what do you think the students would say to that? we'll show you. and the scandal surrounding harvey weinstein just grows.

director quinton says he knew enough to have gotten involved. so did everyone know? antonio jr. with us later this hour. you're watching the second hour of "varney & company." think your large cap equity fund has exposure to energy infrastructure mlps? think again. it's time to shake up your lineup. the alerian mlp etf can diversify your equity portfolio and add potential income. bring amlp into the game. before investing, consider the fund's investment objectives, risks, charges, and expenses. read the prospectus carefully at alpsfunds.com/amlp

. stuart: all right. we're up 71 points. the rally holds. 23,234 to be precise. how about this? tesla, the model 3 likely getting an average reliability score from consumer reports. the stock is down on that news. just average. sketchers, well, they've got an upgrade from an investment firm. the investment firm says this retailer is going to benefit from continued growth potential all around the world. look what it did for them. one little upgrade gives you a

35% jump in your stock price. up eight bucks at 32. imagine this, please. you go to a college campus with a copy of president trump's tax plan. you read off the plan to the students line by line. but under the guys that this is senator bernie sanders' tax plan. our next guest did just that. roll tape. >> what if those same people would think it'll tax plan was actually bernie sanders plan? what if i told you that this is actually donald trump's tax plan. not bernie's? >> you got me. >> it is. it's trump's plan. >> i would imagine he would be a little bit more stupid than that. >> but it's not a stupid plan? >> no. i don't think so. stuart: it goes on from there. here's the guy who did it. he's from campusreform.com. let's backtrack a little. you read out line by line the trump tax plan. you told them it was the sanders tax plan. i take it most of the students loved it because they thought it was sanders.

>> this plan was so passionate, it was common sense, but they found out it was trump's plan, and they said there has to be something there that's wrong. stuart: but initially, they said it's wonderful. >> and i asked them. what do you think of trup's tax plan. and they said it's evil. it only benefited the reach. and i actually read it, and they come out in support. i think i could do this same interview on the hill and just go to senate and house democrats and say what do you think of bernie's plan, and i could get results here. stuart: look, i could take a camera out to any college student and edit the responses. was it universal across the board that they thought that plan was great? >> we had some people that said this is trump's tax plan, isn't it? so we kept it out. this was across the board. and this is what happens when administrators convince students you don't need to look at the facts, just look at which party is putting it forward. and on college campuses, it's the left. you have to support it. and if you support conservative causes or legislation, you are evil, you are bigoted, hateful. so students, they feel as if they have to go along with

this narrative, or else they'll be called all of these things, and then they face repercussion in the classroom if they don't go along with the liberal agenda. stuart: that's how far we've come. that's what we all think they're all in this compress of you've got to think like this? >> it is group think at its finest and sadly, you think of peer pressure from being from peers, the pressure in this case is coming from administrators and professors in the classroom, teaching things, calling out conservatives. we have case after case of campus reform, students are sending us e-mails saying please help my professor docking myself for supporting trump in class, i was called out and made fun of by my professor. this is a real thing happening on college campuses. stuart: extraordinary. this happened on uc santa cruz campus. a meeting of republican club was completely disrupted and shut down by leftist protesters. they called the republicans fascist, races, white supremacists, you see it right there. there were three arrests that refused to alive. essentially, the meeting was

shut down totally. does that happen a lot? >> the hecklers veto. this is in a school library. a few students poked your head in, and they said are you the group of republicans? and they said, yes, and in a few minutes, people came. and the gray shirt was actually a democrat to have an open discussion. and the protesters said you're a white supremacist for being here with them. and he said i'm having a discussion. and by not hearing and condemning them, you're all of these things that call names. there's no open discussion. they don't want to hear ideas and facts. they want to be able to say we are oppressed, our feelings are hurt, so we're going to shut you down and not allow your opinion to have any place here. that's what it has come to. the hecklers veto. there's no open discussion. stuart: what are you going to do about this? what can you do about it with your organization? >> it starts with accountability. our organization is intense on making sure professors and administrators know in the classroom it's not a soapbox for them to get up there and preach their views and try to indoctrinate their students. and when it comes to students and protests, every day wrong

campus. we have student groups all around the country that are fostering discussion and free speech and letting students on both sides know, specifically conservative students know you're not loon. there are more people willing to come aside you. because usually it takes one student to stand up and more to realize it's not just me. but once that student gets the ball rolling, they're afraid to standalone. stuart: keep pushing, young man. i think you're doing the right thing. the media director of campusreform.com; correct? >> do the organize. stuart: i'll repeat that. campusreform.org. got to get that right. thank you very much. appreciate it. coming up, an hour after amazon's second headquarters trying to get amazon on board, mayor bill de blasio says the company is destructive to communities. can you believe that? now there's a pitch. we'll be back alerts -- wouldn't you like one from the market

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>> the mayor of new york city bill de blasio slammed amazon for crushing small businesses. just moments after submitting new york's bid to get amazon to build their second headquarters in new york city. i suspect, tammy, that the mayor knew that he ain't going to get the amazon headquarters. >> yeah. and they're not offering it. they're not offering tax breaks by the city. but the state will. so actually, amazon could come to new york and do it up state. one of the arguments, though, from the mayor and even an assistant there, deputy mayor is that we want to get young people to be able to work in the city. but it's because they can't live in the city because the liberals have made it impossible for regular people to live on manhattan. and so they want to get these people and make money and then spend money here, but then you

don't dare live here. so this is the state of what happens when you've got liberals running a dynamic like this. this -- the state of new york knows that if you give tax breaks, interestingly, liberals then understand that that helps business. so they want to get them in that way. but i don't think new york's going to be able to enjoy those jobs because of the nature of what liberals have done to the economy and they don't offer any kind of -- stuart: not to mention mayor de blasio. liz: and makes a great point here because liberals like bill de blasio didn't do their reading, don't understand that amazon has 13,000 small businesses selling things on its website. a lot of them probably in new york. stuart: there's 50,000 jobs, for heaven's sake. well-paid jobs. but, no, i don't want them. all right. i'm going to move on before i explode. now this. the faa wants -- thinking about banning laptops in checked luggage. why would that be. liz: they're advising the un to say to all international flights for all airlines do

not have laptops checked in luggage. because if it's near aerosol cans or nail polish remover, it could explode and cause fire. stuart: that's a serious risk? liz: they've discovered it, and they want it stopped on international flights. stuart: this is just a proposal at the moment. liz: this is just a proposal at the moment. you can bring your laptop onboard because it's unlikely sitting next to aerosol cans or things like nail polish remover. stuart: it will not be popular. liz: this is a lithium ion battery issue. stuart: okay. another one. coming up, white house chief of staff john kelly says he was heartbroken and stunned by congresswoman wilson's criticism that the president's call to a gold star widow. this is what everybody's talking about and so are we. senator rand paul, the one republican to vote "no" on the budget. but he promises he is for tax cuts. his dad ron paul with us next [vo] when it comes to investing,

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. stuart: the rally holds. we're up another 68 points. we are now at 23,233. why? because it looks like tax cuts are coming. the market likes it. big tech names. all of them on the upside. facebook, amazon, microsoft, alphabet, apple, all of them on the upside today taking part in the big rally. this stock is not taking part. it's procter & gamble. sales were disappointing again. the market hates that. it's down 3%. and that, by the way, is a dow stock. it's taking 19 points off the dow. how about that? and now this: former hillary clinton campaign aid, his name is brian fallon. he tweeted this responding to general john kelly. here's that tweet: kelly isn't just an enabler of

trump. he's a believer in him. that makes him as odious as the rest. don't be distracted by the uniform. now, this is in response of general kelly, sort of offering up his own thoughts about that call that president trump made to the gold star widow. and that was what this man brian fallon said about general kelly. who, by the way, has lost a son in afghanistan. i am, frankly, outraged and disgusted by this. go. >> this makes me want to bury my face in my palms, you know? like, this is the quality of the discourse in this country where we disrespect people that have made the ultimate sacrifice. who are the parents of children that have been killed defending this country. i cannot believe that we have come to this, and it's because people like fallon and people like congressman wilson want their 15 minutes of fame.

and don't take my word for it. take the congresswoman's word for it. she said it explicitly . stuart: it doesn't confirm what hillary clinton said in the campaign that you are races and basket of deplorables. brian fallon was on her campaign team when she said that. this confirms that's the way they think of america. they think we are nasty, bad, racist people. that's what they think. >> this is why i can no longer caucus with the democrats. this is why i can no longer identify with the values of the democratic party because they have become the antithesis of what america has stood for for over two centuries. it is -- they smack patriots in the face. they kneel when we stand for the national anthem. they disrespect people that have made the ultimate sacrifice. they exploit parents like this gold star mother down in florida for their political gain and their political

expeed i can't notice, meanwhile, calling real american patriots -- you know, when you look at the numbers with veterans, there's a huge overlap in terms of the veteran population and trump supporters. and they call those veterans deplorables. they call people like us. they write us off as if we're irredeemable. she said that. hillary said we're irredeemable. stuart: now, when you came on this program, i think it was over two, two and a half years ago. >> two years ago, yeah. stuart: you were a democrat. >> i was a democrat. i supported bernie sanders. stuart: yeah. >> i could not side with democratic establishment. i was throwing had i michigan hands up in the air and pounding my fists on the table saying we need change because washington's not getting it done. the days of barack obama have left behind the middle class. i was looking for a hero, and i thought it was bernie sanders, and he has proven not to be the hero. and i came to start listening to trump at the time, candidate trump, and he was saying many of the say things, he was identifying many of the same problems that bernie sanders was identifying, but he had different solutions. ones that resonated with me.

stuart: have you got any friends left? >> not so many. but i have new ones. like you. stuart: there you go. do you think that there other democrats who have had enough of this, this talk about odious general kelly and what frederique wilson said? are there other democrats who are beginning to say, look, these people don't represent me. any more of this? >> absolutely but you know what, stuart? they're not going to have the guts to stand up and say publicly. because they've seen what's happened to people like me or anyone that associates themselves with the trump administration. don lemon on cnn said -- he literally said anyone that continues to work in this administration, anyone that continues to support this president is endorsing white supremacy. he said that on air on wolf blitzer's show. so this is the quality of discourse. they're going to tear you down as an individual. they're going to try to destroy your reputation at all cost.

that is the core of the democratic platform in the mainstream media. anybody that crosses them, they're going to destroy. stuart: i'm looking at the news this morning, and this is the news of the day, and i'm shocked to see that frederique wilson has been on other networks continuing to pour out her venom for president trump. i'm flat out appalled by this. i know you are too. >> she's exploited the death of an american hero so that she can go on cnn and act like she's the savior of the democratic party because she's taking a cheap shot at the president of the united states. . stuart: well, you're welcome -- >> disgusting. stuart: yeah, okay. i've got to calm myself down as well. >> disgusting. stuart: thank you for joining us. we're much obliged. >> thank you. stuart: now this. here's the presidential tweet after the budget. it is what the president tweeted out. the budget passed late last night 51-49. we got zero democrat votes

with only rand paul, he will vote for tax cuts voting against. this now allows for the passage of large-scale tax cuts and reform, which will be the biggest in the history of our country. senator rand paul responded on twitter this morning. here's his tweet. i'm all in for tax cuts. the biggest, boldest cuts possible and soon. okay. look who's here. senator rand paul's father. former congressman ron paul, the author of the revolution of ten years. so welcome back to the program. it's been a long time, but we're great to seeing you again, sir. welcome back. >> thank you, stuart. nice to be with you. stuart: now, what's with your son voting against the budget? doesn't he realize -- i mean, i don't mean to lecture you, sir. doesn't he realize if the budget fails, there will be no tax cuts whatsoever. doesn't he know that? >> well, i would suggest maybe he's raising the question of whether or not republicans are cutting spending. you know,

if the budget was pretty big, $4 trillion, and this whole idea that the spending is not the problem. i think spending is the real problem. lower taxes is very good. but, you know, the big problem is that when they get involved in taxes, everything is revenue neutral. that they don't really want to lower your taxes because they don't lower spending, and he's making the point -- which is the republican's position. it's always in our platform. we cut spending, cut spending. but there's never any serious attempt to cut spending, so it's a trap. you say, well, if you want tax cuts, you've got to vote for more spending. that is not the answer. it hasn't worked. it's running out of steam and certainly in the last ten years, it has been running out of steam. against all of our problems. stuart: if you put spending cuts into a budget proposal or tax cut -- call it what you will. you put spending cuts, and there are not the votes in the house or the senate for it, are there? >> well, that's sort of the selling out to big government

because i maintain a position that all spending is taxed. whether it's income tax or sales tax or borrowing the money or inflation tax, it's a cost to society, and that's why our economy isn't very healthy, and they're starting to realize this. so i think it's the republican position. i think rand's vote was pure republicanism. cut spending and cut taxes and don't pretend that you can be revenue neutral and say we'll cut taxes and take all the credit. but we'll worry about the deficit next year or the next generation. well, that next generation is catching up with us when you look at the bond market, and you look at the entitlement system, and you look at all the state budget. it's catching up with us and some people should work on that, rather than saying what is the immediate -- oh, well, we'll pass it by. we'll spend more money and you know the spending is going to go up. and the likelihood of the deficit skyrocketing is very, very good, and that doesn't solve our problems, so i

believe rand has the republican position, and there will be a period of time when it will dawn on everybody else, you know, that's right. cut spending. stuart: unless you cut taxes or you get a tax package through, and it ignites significant economic growth in our economy, then it pays for itself. the deficit does not explode in that circumstance. >> yeah. that is the -- that's the way the saying goes and sometimes it might work to a degree. stuart: it did work. >> but the whole thing is you don't know that for sure. you know? i love repatriation of all of this money and tax cuts. stuart: sorry for interrupting. >> wait a minute. aren't the markets flushed with cash? and interest rates are so low, they don't need much more stimulus, so you don't know. unless you're in economics, you do not know what the people will do with the tax cut. you do not know what the businessman will do if they

repatriot the money because the money is already there. the interest rates are so low. so there's another structural problem there. it is overtaxation and overregulation, and we're running out of steam, and we have to recognize the bigger picture. stuart: now, paul ryan just said that the tax overhaul bill could include a fourth bracket for high income earners, and i believe that would be the bracket that high income earners are now in. 39.6%. i'm sure you oppose that. >> absolutely. you know, the top 20% pays 80% of our taxes. this idea that -- but why are the rich getting richer? well, it's part of a system of entitlement, you know? the banking system, the industrial complex, the welfare system. and so business people, how about the drug companies as

well as the insurance company. that is what they get from government. so, yes, they pay a lot of taxes, but they're missing the point that a lot of the profits come from government interference and the taxes should be lowered and more competitive by removing all the benefits to corporations. the corporate welfare system. believe me, it is gigantic. and even though they pay a lot of the income tax, the lower 50, you can't tax them. but when you borrow the money and distort the economy and undermine jobs, you are throwing the problems onto the lower class, and that's why they're poorer and complaining, even though they don't really pay any taxes. and so it is a structural thing that has to do with changing the economics, it has to do with sound economic and monetary policy that has to be addressed, and that's what rand is trying to do. to get people to pay attention to policy. stuart: a lot of our viewers are paying attention to you, and they like what you're saying. that's a fact. ron paul, everyone. thanks for being with us, sir. >> thank you, stuart,. stuart: all right. check this

out, everyone. two nasa astronauts heading outside the international space station for six and a half hours spacewalk. the third one this month. doing some work outside of the space station. and this: hollywood just can't help itself releasing an antinra ad. wouldn't an ad against sexual harassment be more timely? his take on this coming up i can do more to lower my a1c. and i can do it with what's already within me. because my body can still make its own insulin. and once-weekly trulicity activates my body to release it. trulicity is not insulin. it comes in a once-weekly, truly easy-to-use pen. it works 24/7, and you don't have to see or handle a needle. trulicity is a once-weekly injectable medicine

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activate your within. ask your doctor about once-weekly trulicity. liz: last hour stock picker says today's rally is all about the budget. roll tape. >> i think the market's celebrating the fact that this -- you can never underestimate the incompetency of this congress and the fact that they were actually able to take a step forward and getting closer to the tax cuts. the market should celebrate. right now, the fact that it's this -- reached this level with the anticipation, all we have to hope for is that these tax cuts pass. because if they don't, we have a big problem. stuart: but i mean, odds are it passes. i mean, i'm making the case that it's very tough to see the republicans turning it down at this late stage. >> right. stuart: are you onboard with that? that it does indeed look

likely? >> i think it looks likely, whether it passes this year or early next year, it remains to be seen. alerts -- wouldn't you like one from the market when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today. fidelity. that's it. i'm calling kohler about their walk-in bath. nah. not gonna happen. my name is ken. how may i help you? hi, i'm calling about kohler's walk-in bath. excellent! happy to help. huh? hold one moment please... [ finger snaps ] mmm. the kohler walk-in bath features an extra-wide opening and a low step-in at three inches, which is 25 to 60% lower than some leading competitors. the bath fills and drains quickly, while the heated seat soothes your back, neck and shoulders. kohler is an expert in bathing, so you can count on a deep soaking experience. are you seeing this? the kohler walk-in bath comes with fully adjustable hydrotherapy jets and our exclusive bubblemassage.

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said he should have done more to stop the abuse. that's fine enough to do more than he did. bottom line, a lot of people knew what was going on. not many california candidate antonio jr. is that accurate? you're in this. is it true that virtually everybody knew what was going on? and if that's the case, did you hear whispers yourself,and e studios and the celebrities who want to talk about this. let's jump on this and talk about this and sit down and figure out a plan so this does not happen again. let's put policy into place

that each studio has that if this conduct happens whatsoever, the people are getting fired left and right. we've got to take care of this. this has been going on for on board and help us figure it out. stuart: but i don't think you're going to get many people from hollywood on your side. they can't resist the temptation to moralize. i mean, look at this. we've got hollywood celebrities releasing an antinra ad. not exactly run the whole thing. there you go. they're preaching at us again on politics. i'm tired of this, antonio. i want politics out of hollywood. i don't want any more moral lectures. >> fluked hollywood wants to do something about nra and gun policies and gun safety, then stop making movies using guns whatsoever. let's do that.

let's stop making movies that have violence in it. because the nra has done so much for gun safety and nra, not against him. stuart: well, okay. do you have a prayer of getting elected? and i'm not being facetious, antonio. i am serious here. look, you're a republican candidate in california. you're going up against hollywood. you're going up against the liberal, coastal elites. look, from my position looking at your position there, i don't think you have a prayer. go ahead. convince me otherwise. >> well, listen, you know, nd i'meen coming, you know,

honest about it at the end of the day, i'm going to win. stuart: come and see us again soon. we like to hear from you.

>> thank you, sir,. stuart: all right. in a world where amazon really shines, startups are looking for ways for bricks and mortar stores to compete. we have a firsthand look at the technology hoping to crush amazon's go. that's next. "volatile markets." something we all think about as we head into retirement. it's why brighthouse financial is committed to help protect what you've earned and ensure it lasts. introducing shield annuities, a line of products that allow you to take advantage of growth opportunities. while maintaining a level of protection in down markets. so you can head into retirement with confidence. talk with your advisor about shield annuities from brighthouse financial established by metlife.

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liz: now this. a new startup in california wants to take on amazon at its own game and try to beat them. basically, this is about selling groceries and other items at convenience stores without cashiers where you order over the internet, over the phone, you walk it in, and you pick it up. the store features check outless shopping with no cashiers. we're taking this to hillary vaughan. she's up in one of the stores. go ahead, hillary. >> liz, this startup wants to help retailers and convenience stores compete with amazon go's technology. it's that just walk out technology that lets you grab items and walk out. you don't have to wait in line, you don't have to check out, it automatically charges you. i'm here for a live demo with

help from the standard cognition team. jeff and brandon. we're going to show you how this works. guys, let's shop. this demo shop, liz, is rigged with cameras, and their purpose is to identify individual shoppers and also the individual items that they pick up. and so let's see what the system shows that they're grabbing. right now, you can see jeff has body wash, brandon has canned fruit, canned beans. also, jeff has conditioner. now, that system will identify that they have those items but also if they walk out with the items. i talked to the founder, and he says this technology will be ready to roll out in just a few months. >> this competitive advantage that's going to let them bring the competition to brick and mortar. and at this point, it's not a question of whether you're going to compete with amazon. you're going to compete with amazon. the question is who's going to help you? >> liz, they said almost every major retailer has expressed interest to see this demo.

back to you, liz. liz: the future of grocery shopping. we're going to have more for you after the break. don't go away today, a focus on innovation in the southern tier is helping build the new new york. starting with advanced manufacturing that brings big ideas to life. and cutting-edge transportation development to connect those ideas to the world. along with urban redevelopment projects worthy of the world's top talent. all across new york state, . . . .

stuart: 11 months into the trump presidency, forget the media. they will never give him credit for anything positive but this administration has accomplished a lot. it is time for a scorecard. the trump stock market rally, adding more than $5 trillion to the nation's wealth. that's a big win. where do you think the market would be if hillary had won? judge gorsuch is on the supreme court. that is a very big win. the constitution still means something. isis has been crushed in iraq and syria. trump can't do it, said the left. but he did. economic growth, another win. over 3% growth now after eight years of 2%. deregulation, business no longer burdened with oppressive rules. above all, a sense that we're on

the move. the money is beginning to flow. animal spirits have been let loose. now, the media and the left are hostile, endlessly, contemptuous of the president. and unwilling to report anything positive. have you seen much coverage of the economy or the markets? no, you haven't. their negativity actually is their undoing. because it is so obvious, and so obviously motivated by hate. stay right there, please. we'll tell you the full story. that is why we are beating our mainstream competition hands down. we're having fun. the third hour of "varney & company" is about to begin. ♪ ♪ stuart: diana ross and the

supremes. of course. i know that one. we have a rally of 68, 69 to be precise. lots of green on the left-hand side, plenty of stocks going up for the dow 30. scott, you have always been a little skeptical because after show-me market. we're showing likelihood of tax cuts fairly soon. are you now convinced this market is going to go higher? >> i'm convinced there's a ton of capital out there, stuart. that was perfect example. as we woke in london the s&p future was off six -- 16 points. then we saw it come back almost to flat line. bears took advantage of yesterday's sales prices, they will continue to do so until we

have a reason for the market to sell off. it looks like it will keep marching higher. stuart: really? can you give me a number? how high will we go? we're at 23,238 as we speak. >> you don't have to be a mathematician, 23,000, 24,000, that will be less of a percentage obviously from 22 to 23. i think we can put another two to 4% on the market because there is so much money out there. we can do it for the wrong reason. doesn't mean it is right. we need to have a healthy pullback. that is not a bad thing. that is not a naysayer thing to say. stuart: would you be a buyer on the dip, would you? >> unless i need the money next six to 12 months you could have bought the high of the stork market between now back to 1930, you would be a billionaire. we have growing population,

expanding fdp, things will go in that direction. stuart: ge, the stock is 2, 3-year low. we dropped to $22 a share. would you be a buyer of ge, at 22, $23 a share? >> i would be careful. i want to see what the new guy does. maybe jeffrey immelt left because he saw something out there. two things i want to see. economy takes a little longer, but if the guy comes in and cleans house like he says he is going to, that could be a good thing to get ge going in the right direction. he is trying to turn around an aircraft carrier. this is not pt 109 kennedy was on. wait to see what happens in short term. stuart: i would be a buyer at 22, frankly, i really would. but that is just me.

>> all right. stuart: i bought microsoft in the 20s. i had to hold it for 15 years. eventually i made money. scott shellady. thank you very much. i want to get to the politics of president trump's tax push. doug schoen is here, author of "america in the age of trump." you've been a skeptic we would actually get any kind of tax cut now or in the future. well we passion budget. we had 50 votes? the gnat. are you less skeptical? >> i am skeptical, 51-49 vote on budget. tax cut measure is more contentious by definition. you have issues like state and local taxes which affect high-taxed jurisdictions. is you have preferences for businesses, a lot of lobbyists involved. i'm skeptical, this is good for the economy. i would say in the spirit of

your opening good for america. stuart: tax cuts are good for america? the tax package, broad outline you think that is good? >> i think we're over taxed as a nation. what the specifics are remain to be determined but, yes, we do need tax cuts. stuart: okay. i think that the republicans, i just don't see how the republicans in the senate could turn this down. at this last minute, i don't see how they could fail to get 50 votes for this tax package. >> well, again, if they have got, as we saw in health care, 51-52 votes. they have only 50 votes in play. if they lose a couple senators, you will not get any democrats. stuart: no democrats. >> that's for certain. liz: they are like the walter mondale's in the '80s. ted kennedy voted for reagan's tax cuts. stuart: what happened to your party, doug?

>> my party has left my. i woulding for bigger tax cuts to stimulate growth. i know that is heretical. liz: why is it heretical? what happened to the party? >> the party is so far left that is not the party i joined. liz: not my parents. stuart: i want to discuss that. look, we have general kelly -- hold on a second. we had general kelly, a forceful response to frederica wilson. >> i agree. stuart: i i want to roll that te for a second. i want to ask if you're still a democrat. roll tape. >> i was stunned when i came to work yesterday morning, and broken-hearted. and what i saw, remember congress doing. remember congress who listened in on a phone call from the president of the united states to a young wife. in his way, tried to express that opinion that he is a brave man, a fallen hero, by just

thought the selfless emotion that brings a man or woman to die on the battle field. i thought that might be sacred. stuart: general kelly lost a son in afghanistan. hillary clinton, mr. brian fallon, he tweeted this morning that general kelly was owed dejust, owed dejust, this is is odious. what is going on here? >> on this show and others disavowed for hillary's candidacy. didn't vote for donald trump. couldn't vote for hillary. nothing since the election changed my mind. what brian fallon did to use his word was odious. what general kelly said was right. for goodness sakes to politicize a private phone call. i react as american, stuart. i don't react as democrat this is just tragic. stuart: it is a disgrace. >> it's a disgrace i agree.

this isn't partisan. this is right and wrong. stuart: you're welcome to come on the program. >> i tried to do that. stuart: you're staying for the hour. >> pleased that i am invited. thank you. stuart: thank you. later this hour, we'll be joined by the man i call the rock star of the wine industry, charles smith. he has been on the show before. he is coming back. we'll talk to him about the damage done to the wineries after wildfires in northern california. he says, we may not know the scope of the damage for years to come. he is on the show. get this. inventory of luxury homes, down but condo sales up, 35%. is small the new big? "the property man," bob massi, with us very shortly, this hour. president obama returning to the campaign trail in both virginia and new jersey and of course he took a shot at president trump. more on that next. but first, look at this. blue origin has successfully tested its rocket engine for the first time this is the company

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stuart: president obama on the campaign trail in virginia and new jersey. he took a veiled shot pat president trump. lawrence jones is the blaze host. >> how are you doing, brother. stuart: a lot of people were there to see president obama. they were very much behind him. as president obama's legacy is

going away and being upended and disrupted completely, is he still that popular with democrats. >> he is very popular. here is the deal, he can't be on the ballot. they continue to parade him out. w is still popular as well. a former president that are caries mat i can, aligned with the base, that are always popular. but again president obama was on the campaign trail for hillary clinton but he couldn't secure her victory. it is up to the candidate to do that. and so i think the democrats continue to set their self back by parading him on the stage to energize the crowd. but that doesn't reflect votes. stuart: hold on a second, lawrence. we have doug schoen still with us. do you think it sets back democrats by bringing back barack obama? >> they're in a very tight race in virginia. the real issue is apathy in the black community which is about 15, to 18% of the virginia vote.

this was a turnout effort, pure and simple for african-americans votes in a very tight election. this was this is about. >> that is what happens when you don't deliver to the black community. that is what happens when the democratic party continue to say to the black community, that we will reform education, change the economy. when you don't deliver you can not energize your base. the african-american community, the black community continues to give 90% of the votes but the democrats are not interested in affecting real change in our communities. stuart: you know, lawrence, that former attorney general, eric holder, he says is now part of the trump resistance. do you think he is mulling a run in to 20? is that possible, first to you, lawrence? >> he is not charismatic enough? he doesn't have the political capital. he may be a good candidate to lead the resistance but as far as running for elected office, i

don't think he has the political i.q. to do such a run. stuart: hmmm. not the political i.q. that is strong stuff there, lawrence. how but, doug? what are you saying? >> i would suggest eric holder could use his considerable talents elsewhere rather than going on the campaign trail. he has enough liabilities from the obama administration. see farce and -- "fast & furious," marc rich. to keep his powder dry. stuart: are you still a democrat? >> i am democrat stop laughing, lawrence. here is one for you, white nationalist richard spencer had to end his event early because of protesters. what do you say to that? >> look i believe protesters should stop protesting richard spencer. he is hateful guy, a bigot, a racist. every time we go out to these events and protest them, he gets the florey, especially since he

is so happy they declared a state of emergency for him. i would encourage the press, people don't agree with him, stop giving him attention, so the guy can eventually die out. stuart: they want to brand him and associate him with mainstream republicans and with president trump. that is the attempt here doug schoen? >> absolutely. you know, my attitude is, lawrence is probably right. leave him alone. protesting and division, both george bush and barack obama made point yesterday in the campaign trail. let's come together. marginalize people like spencer. not lionize or polarize or attack. stuart: i think it is time we moved away from politics and moved back to money. lawrence jones, thank you very much indeed for joining us this friday morning. >> thanks, bro. in studio next week. stuart: i'm waiting. good stuff, lawrence.

let's deal with paypal. they issued an upbeat forecast. that stock is up, up nearly 5% today. this calendar year, that thing is up 70%. liz: ebay should never have spun it off. stuart: that is rally 1/2. proctor & gamble sales disappointing. they have supermarket brands, pampers, 40 or 50 more. that hurts the dow, because proctor & gamble is a dow stock. i want to alert this story. fda is looking on a ban of laptopses in checked baggage, citing fire or explosion sand risks. laptops are allowed in carry-ons leaving the united states and most flights entering the u.s. but the faa thinking about a ban rather from checked lug can.

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stuart: aston martin, as in the car favorite of james bond of course. look at this, they have unveiled the first car-themed apartment building. 66 stories tall, it will be when it is built in miami. carbon fiber furniture. $50 million for the penthouse. 391 condos all together. a virtual golf course. two movie theaters are on site. that is the aston-martin building to be. update on something that is an american icon, the airstream camper trailer. they have a new model. $99,000, a new name. globetrotter. 27 feet long, sleeps six. small kitchen. i remember these things all the way around europe upgraded now. last piece of video to show you, the world's longest sea bridge. 35 miles long. 34 miles long. it is in china. it connects hong kong, macau.

34 miles long. very soon we will be joined by a rock star in the wine industry. award winning winemaker charles smith. he sold five of his labels to constellation brands after all the money he made. we'll talk to him about damage to the wiperries in california after the fires. inventory of luxury homes down but condo sales up 35%. is small the new fashion in housing? "the property man," bob massi with us next. the markets moving up a little bit more. now we're up 89 points, 23,252. we'll be right back. zar: one of our investors was in his late 50s

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♪ stuart: let's get to the good news. we have 80, 90 point gain for the dow industrials. that means we're 748 points away

from 24,000. how about that, doug? >> that is pretty darn good. stuart: how is your 401(k)? >> doing quite well. stuart: what kind of democrat are you? >> a capitalist democrat. stuart: here is more news for you, condo sales on the rise, up sharply actually. the supply of big luxury homes is shrinking. asking "the property man," is the fashion these days for smaller and smaller housing units? bob massi with us, host of "the property man" on the fox business network. >> hi, stuart. stuart: i think this is happening. people want smaller and smaller homes. is that accurate? is that right? >> there is a residual i think, sort of impact from what happened several years ago, stuart. now that people are getting back into the market, particularly the millenials, they want smaller because they want it affordable an convenient. i think people still have a sense of concern, don't want to

overbuy, and are consolidating and downsizing to be safe. stuart: i think there is, the fashion also has something to do with those huge things that used to be built, five or 10 years ago. most of the rooms were not occupied. most of them were not furnished. >> yep. stuart: people lived in the kitchen and living room, watched tv there and that's about it. that is what happened, isn't it? >> luxury homes are hard to sell. a lot of them are custom built. so your buyer has to be fit to your needs. there are beautiful areas out there in las vegas. that have larger homes. they're not moving. they're taking them off the market. seller will not give it away. we have afforded it this long. a lot of them are paid for. people have money, paid for in cash. they are not going to give it away. so i think it's a combination. look, if you consider where do we live in our house? kitchen. italian, i'm sure you're the same. den area.

tv. stuart: yep. >> i'm one of those guys. i have a basement in my house, which is unheard of in las vegas. so that is the man cave. i live in three rooms, master bedroom. the rest sits there. so it is wasted space. stuart: i was surprised this morning when the existing home sales number came in. we're selling them at a rate of 5.3 million a year. that is not bad but i was surprised it is so low. because i can get a 30-year fixed-rate mortgage for 3.9%. historically that is extremely low. why doesn't that low mortgage rate provoke more home sales and home buying? >> you know, i just, i wish i had a definitive answer. i just think there is a quantity of people out there, that basically are looking at it, making a determination, particularly when you look at millenials. they don't want long-term contracts of 30, 40 years. there is certain amount distrust what will happen with the

housing market n vegas, the inventory -- stuart: bob, tell you the problem here. >> yep. stuart: paperwork to get a mortgage. the dodd-frank rules as it comes down on small community banks and other lenders, it is horrendous. getting a mortgage is a nightmare of paperwork. i think it put as a lot of people off, am i right? >> getting a refinance is a lot of paperwork. i know people that want to refinance, like a sequel to beowufl, reading them, have somebody explain it to you. i think that is part of it. but i still think there is a concern as to commitment and long term and what's going to happen with the housing market. for vegas as i said earlier. we don't have a lot of inventory. stuart, let me tell you something, a house between 200 and 350 in vegas, if appraised at 350, it is selling at 300.

a bidding war with investors from california. market is not bad. market is good. builders want to build more. i think bottom line there is a little bit of anxiety out there. stuart: if we got 4% growth, we got a tax cut, 4% growth by end of next year, does the housing market improve significantly? >> i think so. i think a lot of -- look, for the people that we all talk to, if we, if tax reform could come back and get some capital gains reduced, you're going to see real estate industry in this country explode because a lot of people are holding on to their properties, investors and otherwise to see what happens with this tax reform. this tax reform will ignite the real estate industry in this country like we've never seen, particularly if we get some capital gains taken down. stuart: we like to hear that bob massi. "the property man," catch him tonight, every friday night,

8:30 p.m. eastern time on the fox business network. bob massi, better get to new york soon. we want you on the set. if you want to talk about new york real estate. >> that is my music, thank you. stuart: speaker of the house paul ryan talking about tax reform this morning. better roll that tape. >> president is one that we reintroduce fourth bracket, don't lower taxes for high income individuals. i think that is what he is talking about, so all a the revenue goes to the middle class tax cut. stuart: well, well, well. a fourth tax bracket, keeping the top bracket where it is, 39.6%. that is interesting. congressman mike johnson, republican from louisiana is with us. what do you think about that? upper income people who already pay most of the tax don't get a tax cut, it stays at 39.6%?

i have to say, sir that is not very stimulative. what do you say? >> i agree it is not. we always known that would be possibility in the negotiations but the important thing to remember this morning is that the details are still not decided. we need discussion next couple weeks. the prospect of moving this along, with the senate acting on budget last night, we have avenue to be very aggressive with tax cuts, to try to achieve tax cuts for all americans. we want agenda for working and middle class. incident leave anyone out. stuart: stock market is up nearly 100 points again, and that is because of the likelihood of getting tax cuts fairly soon. but i have to go back to this fourth tax bracket and this insistence it's a middle class tax cut. i mean, don't we want to put some of the money that is being swept into the treasury back into the private sector economy? you don't do that keeping tax

rates where they are for upper income people who pay all the taxes. >> i certainly agree with that premise, stuart. a lot of wealthy folks, let's remember who help create the jobs. it has to happen across the board for everyone. there is consensus at least among republicans in the house, we have to do this fairly, across the board for everyone. we can pay for this, with the economic growth that will be achieved by dramatically reducing taxes for all americans. we don't need an agenda for the rich. we don't need agenda for the poor. if we have agenda for working, middle-class americans, all boats will rise. you have to be very fair across the board. stuart: hold on a second, i have a democrat with me. doug schoen, still a democrat. he says he is a democrat. >> he is a democrat. stuart: you want even bigger tax cuts than being proposed. tax cuts, more money out there. >> a, i do. i think to keep the rate at 39% when there will be loss of

deductibility of state and local taxes mean the rich in california, new york, new jersey, connecticut and other high taxed states will be paying more in taxes. that is contrary to the logic of the plan. frankly congressman, i don't think the plan will fly unless you do something about that. stuart: congressman, are you going to do something about it? this proposal, take away deduction for state and local taxes, that would hit a lot of people really hard. will you get rid of that idea? >> well, no, i hope not. i do think that we'll find consensus for everyone to have reduction in their taxes. devil will be in the details. we have a lot of negotiations over next couple weeks. ways and means committee in the house begins marking up a bill perhaps next several days. we'll have substantive debates what all that looks like. i agree with the premise. we want tax relief for all americans. i don't think you can treat upper class or wealthy class as

they say, in disparate ways like that. i think, if you really want economy to get going, everybody needs tax relief. we're committed to the framework and premise. stuart: congressman mike johnson, republican from louisiana. thanks for being with us, sir. dow went up by 100 points. it is still there. we're up 102. 23,265 a. one more doug schoen. wait for it. headline in "new york" magazine, mentions you by name, fake democrat, urges democrats to favor wall street. that is you. you are the fake democrat. >> that is what they say. stuart: why do they take you to task? >> i said in the "new york times" we need to keep democrats with wall street. we need job creation as congressman johnson said, we need wealth creation from the very wealthy. we need investment in the markets. to basically believe you can redistribute your way out of problems or that the wealthy are the villains, i think is myopic

an wrong. stuart: do you have any hope that the democrat party can come back to where it was, to where you are now? >> well hope springs eternal stuart, but losses democrats faced in the last, 10, 11 years, have been extraordinary across the board. we're basically a coastal party now. i would like us to be a working class party, when i worked for bill clinton, what we focused on and what we were. stuart: those wonderful days. >> yes, sir, they were will days. balanced budget. stuart: first thing you did was raise taxes. >> it was -- stuart: i have more for you. >> good, good. stuart: how about this? california, firefighters finally getting under control. evacuation orders have been lifted. clean up begins, so does survey of the damage. my report coming up. coming up, charles smith,

award winning winemaker, sold five of his labels to constellation brands. he knows a thing or two about wines. he is a rock star in the world of wines. he is with us in a moment. ♪ has been excellent. they always refer to me as master sergeant. they really appreciate the military family, and it really shows. we've got auto insurance, homeowners insurance. had an accident with a vehicle, i actually called usaa before we called the police. usaa was there hands-on very quick very prompt. i feel like we're being handled as people that actually have a genuine need. we're the webber family and we are usaa members for life. usaa, get your insurance quote today.

♪ >> i'm nicole petallides with your fox business brief. taking a a look at google.

google is getting ready to find any problems and flaws within some of the apps in the google play store. look at some names they're watching closely. this would be dropbox, tinder, snapchat. they're paying hackers to try to hack these apps. in fact they will pay 1000 bucks or even more if you can actually find a flaw. they want to work to get rid of these flaws on the apps that would allow hackers they don't want to redirect you to a phishing website. all of this is part of a move to look at this software closely. microsoft, apple and alphabet. only done this on their own software, not on apps. google has been a real winner over the last year. up about 22%. so the bug bounty is on. see if you can hack the app.

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stuart: to the california wildfires, more than 6,000 homes and structures destroyed. today, we're focusing on impact on the wine industry. robert gray is with us. now he is at a winery in sonoma. robert, you have to tell us what it is like at that winery where you are now. reporter: it's a pretty incredible scene, stuart. take a look around. we'll zoom out a little bit. i'm literally standing in the ashes, this is the fire line of the nun fire which is still going a little bit farther north. it rained overnight, but helping

firefighters. you can see came all the way down, went into the area where the grapes are between some of the vines. i'm told, fewer 5% of the grapes were damaged. the vintage is going to be a good one, because it was harvested early. they had a late, hot summer, late and early fall if you will, stuart. but they did not escape totally unscathed, even though firemen saved most of the winery. just beyond the ridge behind me, they lost one of their family homes. stuart, this is nearly 160-year-old winery. california's first family-owned. stuart: dearie me. thank you very much, my friend. staying on the wildfires and wine industry, we have a star with us today, winemaker charles smith, a great guest to have. i call you a rock star not just because of the hair because of success in the wine industry. >> appreciate that, stuart. i'm doing my thing, running my race, making wine. which people have done for

generations. stuart: yeah, yeah. we got you talking. what on earth are you doing selling five of your labels, including kung fu girl? that is piece of marketing. >> we'll talk about the future. this is my fifth time joining you on the show. the thing about it is, i do make country girl still. stuart: why are you selling? did you need the money. >> no. stuart: my business -- >> just like when you raise a child, eventually they have to leave the home to go on live a life you raised them to live. i think it needed to go to the next level. culture of my company, having seven salespeople, selling almost a million cases a year, kung fu girl and boom boom smith need to go to another level. stuart: constellation could do better at marketing, distribution than you could? >> absolutely. in one regard. i have seven salespeople.

they have 400. they're very successful company. essentially if i want my wine, everybody to have access to my wines, a lot of people have access to it, it will be recipe, quote, unquote for success. really as a brand and as strategy. when you say economically, economic windfall for the person that sells which happens to be me, which is a good thing. stuart: finally we get to it. you're very wealthy guy. >> maybe i will get e-mails after being on the show asking me for dates. stuart: is that what you want? >> no. visited you five times and the fact is that when i come down to new york, will i see stuart? how fantastic is that? i really appreciate it. i sold one of my brand. i didn't sell my dream. my dream was to make wine. i have six other wine projects. kay venters in.

i have a charles in charles and i'm still active making wine. stuart: you're still active making wine? >> that's it. stuart: with the money, what are you doing with it? >> putting in future for my daughter charlotte and my family. take care of people in my community. all folks that work with me. all the folks benefit from it. i'm a very fortunate man. stuart: you know why we like you on the show? because you bring bottles of wine with you, and you leave them here when you go. >> because, funny thing, we never see each other off the air. in a way we're almost like family friend. your son is wine maker in australia. i brought the wines. the wines of substance, chardonnay. one of may vintners and highly allocated scored, i brought them for you and your family for the holidays. >> you know that my son is a

wine maker in adelaide, australia. >> that's right. stuart: we'll see if he is any good. >> i'm also in new york city for the wine spectator, new york wine experience. i'm participating in that right now. we're in the middle of harvest. stuart: you're getting another award? >> nominated from michelin guide, robert parker wine advocate for winemaker of year. stuart: i told everybody you're a rock star. >> isn't that something? stuart: i have a technical question. about the fires in california. what about the vines that are still alive, with the smoke going over them? right. stuart: does that affect the taste of the wine, when you harvest grapes eventually? >> it can. depend on concentration, and also depends on the time and grapes, maturation cycle. there are times with sales, complicated science.

literally right next to it, breathe in smoke, so much oxygen around us, it doesn't adversely after effect us goes in and goes out. same thing with the grape. wine industry has had episodes of smoke taint. it is very rare, once in a blue moon. stuart: it is good news. >> good news. so many wonderful people in the wine industry as nation are emotional and our cultural home is california. i'm a washington winemaker but i'm from sacramento, california. i have many friend that make wines in california. it is really awful. i got one of the folks that work with me. his sister's house burnt to the ground in santa rosa. stuart: we hate to hear this. >> we hate to hear this. stuart: charles smith. god to have you in new york, you're getting another reward. we congratulate you. >> nice to see you, stuart. stuart: leave the wine. >> we shall. stuart: there will be and i

promise, more "varney" after this. ♪ ♪ can i kick it? ♪ yes you can ♪ can i kick it? ♪ yes you can ♪ can i kick it? ♪ yes you can ♪ well i'm gone

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we're up a mere 110. 22,000, 273. we're there for -- 23,273. we're 35, six points away from 24,000. doug, should have jumped in with the math. we don't have time for ge. but house democrats, they raised $9 million more in the third quarter than republicans. you twice making a comeback? >> well, let's put it this way. they may attack me for saying being involved with wall street, but numbers don't lie. they're getting it from small donors. also getting it from bigger donors in the financial community. stuart: that was the point, that created the negative article on you in "the new yorker," because you're saying hey, democrats, don't forget wall street. >> don't slay the golden goose.

helps our economy, helps our party. helps unify the country. because you can't run a political party just attack financial interests. stuart: but you also, democrats are getting a ton of money from wall street. >> precisely. stuart: wall street is largely democrat-giving institution. >> substantially so. it is evening out a bit because of trump but still the democrats are going to get i think bulk of money. stuart: so the trump tax cut, and the trump growth plan are encouraging donors from wall street to give to president trump from the republicans? >> it sure should, shouldn't it? stuart: it should, but is it? >> i think it is starting to happen but yet to take effect, if we get tax cuts, stuart, a big if, we'll see donations flow. stuart: do i see a recent poll of some sort that showed bernie sanders is the leading candidate to be the 2020 presidential candidate? >> yes. can you emergency a race between bernie sanders and donald trump? stuart: i can imagine it in my wildest dreams. i think ratings on television would be astronomical.

>> they would indeed be astronomical. stuart: who would win? >> i think donald trump would win. stuart: you're okay, doug. >> thank you, stuart. stuart: do we have time to put ge up on the screen. because i'm very interested in this stock. it has gone back up to $23 a share, before the market opened this morning. coming out with weak economic report. ge was down at 21. on this program, we said, you know, that is a buying opportunity. evidently some people bought it because it moved up to $23 per share as we speak. more "varney" after this.

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.. stuart: when we went on the air at 9:00 it was obvious we were going to get a stock market rally. why was it obvious? the futures market was predicting a stock market rally and we were basing this on the

passage of the budget in the senate last night, 51-49. that opens up the whole idea of getting a tax cut deal done relatively quickly because republicans only need 50 votes in the senate to get tax cuts. can't believe republicans would walk away from tax cuts and 50 votes. neil: there are some things monkeying up the process or could be. some differences on both ends of pennsylvania avenue. paul ryan saying there will be another tax bracket. >> in the fourth bracket we are going to do we are working on those numbers now we have a budget resolution we want to get a final budget resolution between house and senate. that tells us how our numbers would work and we wi