>> what the president just treated. more funding for the border wall and maybe the government wash it down. >> thank you lauren, john, such a pleasurable general jack keane. stuart varney, three hours or take it away. stuart: i will. thank you indeed. many of you have heard me say this as well. this time i really, really mean it. you are watching financial his array on this tuesday coming generous 16, 2018. good morning, everyone. all indicators suggest we will hit out 26,000 half-hour from now. the fastest 1000-point gain ever. we have 20 5-k just seven trading days ago. since donald trump was elected president, the dow has gone up close to a thousand points. yes, we will call it the trump rally. the most recent gains are about profits. started reporting the profit

outlook for the future is looking strong. this is remarkable in itself especially considering the news background. the government may shut down the end of this week in the president is talking about withdrawing from nafta. investors do not care. a little history if i may. the dow first crossed 1000 in 1972. hello in the seven hundreds in the early 80s. today, 26,000. very glad you are along for the ride. "varney & company" is about to begin. ♪ another historic day for the market at the opening. first of all, the big tech names. look at them though. these are premarket quote. this is the price now. apple, amazon, every single one of them that.

amazon for heaven sakes up 15 backs premarket. the big banks this morning, some of them reporting profit, all of them up with the sole exception of jpmorgan. the rest they gain especially citigroup up to .5% premarket. profits more than doubled at united health driven by a one-time tax gain at the tax code overhaul. that could echo up two bucks. boeing, caterpillar company united technologies. the biggest dow winter since the dow crossed 20 5-k january 4th look at them go sent ben. though we missed up 13%. we better be joined by a professional. steve cortez market watcher. looks like we are in for more records today. my point is this is all about strong corporate profits in the future. show me where i'm going wrong.

>> you're not going wrong, you're going right. main street is an important here. small business surveys at an all-time high according to the nfib. regular consumers, quinnipiac polling come a record 66% of consumers say the economy is good or great. highest number ever. optimism in the land, the growth is real in the confidence is tangible right now. under the last administration, we have which you collect clark kent economy. now we have a superman economy. this economy went into the phone booth which is tax cuts deregulation coming out of the booth ready to soar as a superhero. stuart: at some point you have to discuss why it's on the front page of "the new york times" or the top of news broadcasts because it's not even mention on the front page of "the new york times." i've got to move on to politics.

a government shutdown looming at the end of the week. do you think if the government were shut down it would hurt the market? >> i don't think so, stuart. what a lot of americans find out is frankly what government does isn't all that essential and what is essential, courts in the military will go on if it's a shut down. i don't think it's a big deal. it's a big deal for daca recipients and democrats need to get honest and make a deal with president trump who is willing to deal. terms of market there won't be much. stuart: nafta, the president talking about what leavitt, withdraw from it. would that hurt the market? >> that is more consequential, particularly from mexico, but the united states as well. donald trump was very clear with candidate tom bennis following through is president every so often has done. we made some bad trade deals. some are antiquated, some unfair in the first place. a trade deal from a long time

ago, mostly stacked against the united states. let's renegotiate. to me this is common sense that's come to the table and come up with terms that make sense. great news on that score. chrysler spending a bill -- [inaudible]

tree into it really is. it shipped more than five -- >> 1400, 1500. stuart: really, in short order. >> laid waste and they are really unstoppable at this point and when you have most of america 50 consecutive days of below freezing windchill and 240 americans today below freezing at some point during the day, they will order on amazon rather than go out to retail for the under capitalized.

stuart: the weather extremely cold has been a shot into the arm. the cold weather has coincided with a run-up for amazon. >> as it should. going long on the restaurant wholesalers. they should be going long on the food retailers because the only thing people go out for a sued because they are home all the time coming out of the cold and needed more. stuart: it's awfully difficult to tell an audience don't worry. puts more money into amazon. $1321 per share. >> tough stomach now, back to you and steve cortez really good point, americans see on all cylinders in terms of growth, so everything from tiffany to tractor supply to wal-mart and amazon are all growing because consumer confidence and small business confidence or all-time highs. >> up 16 backs.

"varney" regular scott galloway has an opinion. >> training to show him and not only power or restraint of competition i would argue basically every consumer stock in the world now train and fund performance in the stock from a macro environment and what amazon is arisen during an effectively a monopoly power restraining competition. there is license for doj intervention. stuart: do you think amazon should be broken up? in mecca should be broke and i'm because it's stronger than what john d. rockefeller did over 100 years ago. ultimately it is not for competition, bad for vendors. we've done a lot of federal trade commission antitrust work over the last 20 years an interview, more than anything else, amazon should be broken up and divested. stuart: bert, thank you for

joining us we appreciate it. >> it will keep going up. power to prosper. stuart: "the wall street journal" reported the pentagon is planning to have to see-based nuclear weapons. why? ashley: because to respond to the growing military capabilities, supporters that they say we need to revamp -- to yield warhead from a triton missile any new nuclear -- two things are looking not to add to the arsenal. stuart: thank you indeed. look at the market and how it is likely to vote entry will witness history together less than 20 minutes. you have a front row seat to prosperity and "varney & company" up a couple hundred points at 9:30 eastern. big guests coming up next hour. fred smith, ceo of fedex. i want to know, what is this company going to do with all

that money from the tax cuts. i will ask about 10:45 eastern. a veteran suing the va hospital because they left a scalpel inside him for four years after his surgery. that is an actual x-ray. a government shutdown is looming. midnight friday. i say if republicans can't get the democrat to budge on military spending and immigration, they should force a shutdown. what will judge napolitano say about that next.

stuart: this is an historic day. 200 points at the opening bell which would put us right at 26,000. take a look at ge. a $6 billion take from its insurance portfolio and ge capital is eliminating it dividend. that is why it is down on an otherwise update. viacom stock down friday.

the reports of merger talks with cbs and cbs is up a little in viacom is down. now this. president trump also releasing a treat. we must have security at a very dangerous southern border in a great while to help stop the massive inflow of drugs pouring into our country. i believe it goes on to the democrats shut down the government over amnesty and border security, et cetera. the president taking a strong wind this morning. next one, an army that suing because the scalpel was left in him for four years. >> 61-yard glen turner had surgery in 2013 at the veterans hospital in west haven, connecticut it wasn't until last year he went back to the same hospital saying i've been

feeling dizzy. ordered an mri for us had. during that examination he started complaining of stomach injury or senate enemy taken extra and that's what they saw. he suing the u.s. department of veterans affairs and if they cannot testify damages. what is really disturbing when you get into the stories the national institute of health estimates something like this happens across the country not just that hospitals about 1500 times a year. the old joke when a surgeon says anyone in my watch. it happens more often than you believe. he had a scalpel in his stomach for four years. stuart: you've livened up an otherwise dull day. how did you do that? if scalpel in the stomach. there is a looming government shut down. as of friday night midnight, judge napolitano is here. strata with opinion.

i say we should shut it down because the national interest is fixing immigration and fixing military spending. >> most people who believe in small government as i do when you do sometimes agree with you because it really shows how well the country will be protect data and how happy everyone will be without government everywhere all the time consuming more money than it takes in. here's the problem. depends how it is sold to the american people. the last time there is one of the shutdown of the republicans got blamed and they suffered mightily at the polls. if the president sells the shut down properly, if a shutdown happens, he can enhance his negotiating strategy and his political base. if democrats capture the 10 say they run the congress, they shut it down it's going to be very bad for republicans. stuart: it always goes to

republicans always blaming this thing. stuart: democrats are better at blaming republicans than democrats. i don't know why that is. >> the national interest at stake here more than the interest of democrats and republicans are president. our national interest is fixed that immigration. >> you are seeking as an idealist. to get it. they are more high-minded than members of the congress. >> me, high-minded? >> you're interested in what's good for the country today in long-term. they're interested in what what i can do to get reelected. stuart: but if you shut it down, the pressure would be astronomical. >> he will bring people back to the white house who stormed out

the other day after they say what they said they heard because they will need to negotiate in order to save their own political careers. so i am happy when the government loses money because could you imagine a business making money by closing its doors for the government saves money by closing its doors. that makes me happy. that probably makes you happy, too. stuart: we repay all the government workers. stuart: deal at this quickly. last week the house voted for searches of phones, phone calls and e-mails. but the cia, fbi and nsa the senate goes today on this. >> the senate votes to cut off debate. there have been 30 hours of debate after what we have seen, the political use of intelligence data, politicization of the cia, nsa

and fbi is beyond me how anybody could vote in favor of this. stuart: it is what is going to happen. thank you, appreciated. back to the market, look at the future is holding with the 200-point gain. january 4th we had 20 5-k. seven trading days later staring down about 26 k. this will be a suspect the fastest thousand point gain in history. you want to smile? just checked your 401(k). more "varney" after this. hi i'm joan lunden.

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stuart: take a look at facebook free markets of today just over 1%. they were down significantly last week because of the changes they were making to their news feed which might take a bite out of their future ad revenue. mike murphy with us, the man who said facebook, the stock that will go to a trillion dollars value. >> i stand by it. >> last week about the ad revenue, that is over, >> correct. over, onward and upward. advertisers will still spend money on the platform.

it's the best platform. we run a venture capital platform. the best ways for these new companies to advertise is on facebook and they are all using it so people continue to go to facebook. this is a hiccup for the company. stuart: within the next few weeks they will have their greater profits and outlook for the future. a full report to keep the stock price up of 180. will they get it? >> i think they will. as the economy improves, more businesses are being started good more people spending money to advertise. that plays right into facebook hands. train to facebook has a lot of upside. explain citigroup to me. as i understand it, they just reported their financial position and lost $20 billion. but that was because of a tax charge. >> a one-time tax charge they announced a wall street a few weeks ago that this was going to

happen with a one-time massive hit to their earnings up over 2% this morning to a new 52 week high because they are looking forward and the tax cut, each dollar city earns instead of losing 35 cents they are now losing 21 cents on it to the bottom line of stronger earnings, lower price earnings and upside for the financials. stuart: for the benefit of our viewers come in the key here is what the ceo says about the future. not necessarily the prophet they just reported for the last quarter, the previous quarter. what are we going from here. that's what you have to look at. >> for the viewers at home, they understand the fact whether their business owners or workers, for each dollar you make a few now are keeping 79 cents instead of 65 cents, you get it. that adds up quickly. when people say the market is high, the market can go higher, they are making a major mistake

because as earnings improve, the market has a lot more upside. stuart: you are a brave guy. up 40% on the dow industrial says the election. 40% now and you say it's going to go up some more. >> so many analysts feel like it's time to say that we need a 4% to 5% pullback within the next month or so because that is healthy. it stops the over exuberance to quote alan greenspan will maintain the momentum. >> if we ever get, like when we talk bitcoin, getting overstretched in the marketplace, the market will correct itself in any to be corrected. when you look at earnings coming out right now, companies in the u.s. keep more of each dollar they make. we move higher, not lower. >> us confidently say in the dow would hit 26,000 in the opening

bell. it might not actually hit 26,000 because we are now showing a gain of about 180, 190 points on the dow. we need to go up to 197 points. just a tad short, that you know, we want to keep the drama going as we approach the 9:30 hour. that is when the market opens three minutes from now. it will be up. it will be up and we will be close. >> we could to get a thousand points, 140-point gain today. stuart: 25,000 on january 4th. seven trading sessions ago. that is all it took, seven trading sessions to go up. i remember it, you don't. back in 1972. >> the year i was born.

stuart: an auspicious year. the dow first 1000 good >> i believe it. stuart: the 1970s were terrible for the stock market, going sideways and down. either early 1980s, we had 700 on the dow industrials. 30 years ago roughly 35 years ago we were at 700 now we are on the cusp of hitting 26,000. >> rightfully so. stuart: you've been with us throughout this market rally and you've always said the way to go, that's where you put your money. this market will keep on going out. you've got 90 seconds to go. >> so yes, luckily i've been right so far. they're really the big change here is you're not looking for price earnings. that's a lot of times how you price the market.

that number is increasing not only because we have new technology helping companies to perform better and faster, but now we have a tax cut for companies that they don't improve, they are getting an improvement because of a lower tax rate. when you factor that in, the big mistake is we have to pull back. i've been doing this for 22 years. there are no rules. we do not have to pull back or the market will pullback and i don't think it's ready. ashley: buildings >> as more and more people see their 401(k)s improving, they are buying more and putting more money in so i think it's true. >> this is be open to the market on the left of your screen. you will see the same thing

happened for the ballots about to be round. a very exciting day. we are going to be very close to the 26,000 above. the bell starts ringing, and they start trading. this, ladies and gentlemen. here we go. let's see what happened. up 190. we had it. ladies and gentlemen. stuart: quiet for the trumpets, ladies and gentlemen. right there at 26,000. that is exactly where we open. that is a gain of .70%. a substantial gain. the s&p 500 i'm sure is also open at an all-time high up half a percentage point. not quite the same game as we saw with the dow. s&p on the cusp of 2800.

tech heavy of course is up 44 points, .6% with the nasdaq composite crossed to a new record high 7300. it is astonishing. that's what it is in it's still not on the front page of "the new york times," ladies and gentlemen. i need help. stuart: mike murphy and scott shellady. this is the explosive phase of the rally. you're not going to contradict me, are you? >> explosives can be a big word. it's big for the markets. but is there not to like. obviously the tax cuts. that is one of the biggest ones. one more wish for the whole thing and that would be to see wages. bonuses and tax cuts are fine,

but i would like to see something more sustainable. this is great. it comes back down to it. where else will you put your money? this is the place to put it. we can't complain what we've got in her hands right now so should be on the front pages. stuart: mike murphy, we are going to get these donuts says. scott shellady, don't think that much to it. >> when we think about tax cut, a lot of people say this is only for the big companies going to the rich to get richer. in the last few weeks we've seen 25 different companies, maybe more announcing bonuses of $2000. absolutely what the economy needs. the average person out there, the average worker. stuart: on your screens right now, look at those gains. boeing is a stock that's more than doubled in the last 12

months. $342 per share. visa is another one that's led the charge up again. a dow stock up $2.45. that's 172 points higher. let me just talk politics for a second. we've got a looming government shutdown. if this thing shuts down, scott shellady, does that hurt the market? >> the u.s. government shut down for a few days. >> i agree. it doesn't hurt. talked about so many times a day does shut down it will be fit in a few days. stuart: looking at the technology stocks on the screen right now. amazon, up $21 per share. amazon is down at 1330.

$1327 a share. $90.37 a share. facebook at 181. 1142. apple 177. how about that. across the board. oppenheimer has raised its price to $1450 per share. >> i think it's great and a lot of analysts trying to play catchup. big tech is where you see the growth. they have reinvented it sells nec real growth there. investors looking for growth and not the place you can get it. stuart: microsoft $15 per share. march 2009. nine years later it's --

ashley: no wonder you smile. stuart: let's move on. on the screen right now the big tech stocks. i want to see all of your viewers want to know where their stocks are. we are going to tell you. that's a promise. but also i have coming up. the dow up 220 points right now. 26,023. give me stocks. just put them on the screen. all winners. our viewers want to know where are their stocks. changing it to dow winners. united health is up 2%. knowing is up another 2%. visa up almost 1%. nasdaq winners way up. i don't know that one is out. $123 per share.

sending a letter to business leaders say their companies need to do more than just make money, just make off it. they need to contribute to society. that's an interesting message. he is saying you've got everything you wanted. passive through. give it back to your employees and the people. >> i couldn't agree more. spread it around, give it to the employees. some people i'm not alluding in saying that people of different opinions. when you make money, you may choose to spend it in a different way than when i make money, which i don't think you know i want anybody telling us how to spend our hard-earned money. >> perhaps they don't want to do when i don't like that at all. do what you want with your money. train to take a look at ge. that is a loser today. everything else is going on.

just about everything else. general electric is down about 49 cents. ge capital has dropped it dividend for the foreseeable future and i think -- what else did they do? >> they are taking a charge and they have unfunded pension liabilities also back is part of the six plus $11 charter. but careful here because they think ge has had so much bad news stock has underperformed so much. we actually bought some of the stock around $21 a share. now it is underwater. this to me looks like the board for all the negative news out there. while you have the opportunity of want to see how they respond in the next few weeks. stuart: scott shellady, don't mean to leave you out, but why don't you tell us what stocks, which stocks if any you are buying right now. >> you have to be careful. i love the text you're in mr. murphy is correct.

the american ingenuity is going to lead the way going forward and i can feel that from over here. even though it is now stretching the text or because that is going to be where we are going to create wealth over the next five to seven years. that is the place we innovate and show the world we can make a difference. i did a radio show last weekend. take about where we were. and about the last year, how stupendous these gains are, how much the sentiment has changed. 0% interest rate and home ownership of a fit your lowest end of the last administration. more people on food stamps at the end of the last administration before he got started. we came from such a bad place and now we see so many great games and we can't get any good news on the newspapers? i find it amazing the gains that we are seeing and nobody wants to talk about it compared to where we were.

absolutely crazy. stuart: so glad you raised that issue again because i got a copy of today's "new york times" in front of me. they are leaving their front pages trumps language a headline on that, had nine other republican bill decker tales to of bank rules, the seven letter grades. can a lawyer of your wishes that his client? we writing the alphabet, cosmic waiter looks to leave his mark. not a single mention of this extraordinary performance. >> let "the new york times" keep reporting what they want to report on a month to market keep doing it. earnings are performing. this is companies moving higher because they deserve to based on the earnings they are putting out. you cover them off then it don't perform like general lack drink. but the companies performing are winning and people are making

money. stuart: do you want to come back and i'm not one? >> i want to drive home to the viewers the point of where we come in where we are at today. that is so amazing and you mentioned the stock market over a certain amount of days. think about how bad small business have it. just think about how that mom and pop habit about all those folks that have felt left behind. it's just amazing the all-time highs this morning since we've been open. visa, microsoft come american express, apple, united health, 3m, johnson & johnson, all of them in the first 10 minutes. i really love it. i love to see money being made. capitalism, life, great dust.

for the benefit of our radio listeners coming dow industrials up 228 points at 26,029. let's get that right. trump has more than doubled at united palace. that was driven by a one-time tax gain because of the tax overhaul. that is huge. then we've got citigroup. they were poor profits this morning before the bell. as you were saying, they took a whopping $120 billion charge and then your stock goes up here tell me why. >> the forecast going forward each dollar citigroup makes will take a much larger percentage than under the previous tax code. that is the positive end by the stock hit new highs. stuart: remember comerica, considered a regional lender, regional bank doing very well hauled in part by a series of interest rate hikes by the fed,

comerica doing well and not up over 2%, to backfire and 95. ge again as we said would take a $6 billion paid for insurance portfolio. the stocks had 18 hits down in a huge update. merck report positive surprise in its long cancer study. that is up nearly five points 7%, huge gains. that accounts for 20 points for the dow industrials. canada's chief in america, chin length tells fox business tax reform will out 200,000 vehicles and vehicle sales here in the united states. that's a big number. >> at the huge number but it's funny because we talk about autonomous cars and how that's going to be the wave of the future, cars that people won't need to go out and buy cars and drive them. that is a bit ahead of us. again, tax cut are helping on

the makers. people feel better, have more money in their pocket. stuart: blackberry has a new product that helps carmakers detect security flaws in software before it goes into their vehicles. do you remember when blackberry whizz e-mail device? that's all it was. now they are focusing on the auto industry. ashley: this is interesting. more and more they are now connected to the internet. the hacking of course about blackberry has done is the new program that scans all of the code looking for new vulnerabilities to the hacking. i was just looking at this, qualcomm, they've reinvented themselves very, very well and the stock rices out at a four-year high now. you've got to hand it to blackberry. the crack very with the great keyboard has no reinvented it out. and it's doing very well.

stuart: by the way, nvidia is up $2.20. airbus, and they may have to run production at the double-decker gigantic 380 super jumbo jet. airbus has invoked any in two years. your international kind of guy there. scott, since you are over in london, would you say about that? they might not make any more of them. >> that's a simple question and i think it's smart if they can't sell anymore, about don't make any more. the only thing i would complain about and that's my complaint across all the airlines has the seats are getting smaller or i'm getting a little bit bigger a little bit of both. but it's a little bit uncomfortable for eight hours. stuart: i agree with you. i sometimes flied to new zealand with the 16, 17 hour flight. and i'm a little guy. sites a day, 165 pounds on a good day.

shell oil getting real small. this is all about drill baby girl in the united states. is that right, scott? >> yeah, it is. we are not going to be energy independent. we are energy independent and then energy dominate. think about where we've come. think about $150 a barrel on oil. i just can't impress upon you enough the power of positive thinking. these types of good ideas. the tech stock, text or, how they can trickle down on companies like this is all good and this is what you can do when you get everybody pointed in the right direction. it's called leadership. stuart: they've already ramped up their operations. the problem with iraq is it's very expensive to do business there. also the political instability is a factor.

iraq used to be the second-biggest producer and oil is now fading a little bit. stuart: if you can get it in texas -- >> when you talk to oil drilling, and drilling, and this is no longer drilling deep into the ground that the big machines on television. this is technology, new technology making it easier and cheaper for u.s. companies to get the oil out of the ground. stuart: newsflash, we've had 26,000. does that mean nicole petallides on the new york stock exchange has a new ad? >> what are you saying? yes of course i am. i tricked you almost. what is interesting is is interesting to see her as the dow up 26,000. see this one coming dow almost 30,000. for a brief moment i thought we skip because it was only seven days for this 1000-point milestone. 71,000-point milestone and now you've got almost 3000 to look forward to as well.

stuart: i do look forward to it. by the way, the dow has just hit its high of the day. we are up 253 points now. 26,056. that is where we are. bottom right is that right is with us, former chief of nbc universal. you know about the media. don't hide. why is the media ignoring this extraordinary stock market rally? it's not on the front page of "the new york times" anywhere. >> most media doesn't report business. they don't have the interest. they feel that their broad range of people are not interested in the details of it. i will tell you one thing. 26,000, we really haven't gone anywhere near where we are going to go. the tax program is so strong it's impact is going to be found over the next eight or 10 or 15 months.

i predict 2018 will be the most outstanding year since 1996 or 1997 in terms of productivity, in terms of getting close to 4% on gdp and the following years are going to have a tremendous opportunity to die. if you do this on a 10 year cycle, they create 10 million jobs. gdp is like 300 million a year. stuart: it is great stuff, but let's be honest about the media here. they hate president trump. they don't want to know anything about the term about the trump rally, so they are not covering it. one of the most extraordinary developments in financial history and its work to be found in "the new york times," even the "financial times" does not have it on the front page. that is a disgrace. >> you can't deny what is

happening. people can argue that this isn't real, but you haven't even seen half of it yet. stuart: have you got any clout still a nbc? >> cnbc follows it very well. they are out there. stuart: they are nowhere near and you know it. you should have hired me all those years ago. >> i wanted to tell you one thing. during a time when i was head of ge capital in the early 80s, when reagan had accelerated depreciation for our goods, we went through the roof with our commercial industrial leasing businesses. we split the benefit with the cost to ourselves and doubt was

spectacular. you haven't even seen that yet. that's a whole another game. stuart: i just want you to repeat you are an important guy and he just told us that you made the nothing yet. tell me again, where does this market go in the year 2018. >> the economy in the market can maybe not grow as fast, but the economy will be so strong that you'll see all kinds of things. real estate, small business, large business and a lot of that cash is going right into the economy. people say it's going to get wasted. business analysts will track every company that they look at, demanding to know where that money has gone to savings. we don't have to worry about the government checking in on them. plenty of analysts checking in on every company. stuart: bob wright, you have seen the light.

thank you for what you sent me. >> give me one second. code purple for cancer. we are fighting a huge bureaucracy and we are in the white house now and maybe this week we will have some opportunity to getting the state of the union message and into the budget, so that is a big thing for pancreatic cancer. stuart: you are a champion on that. you're a good man we thank you indeed did you still should have hired me. look at the market now. will you look at it, please. the dow industrial new high of the day up 1%. that means 257 points higher. the dow was at 26,060, just 61. this is really extraordinary. you are all right. thank you. >> i think there's a lot more to

it because the market is still not fully priced. stuart: not fully priced. you agree with bob wright and scott shellady. stuart: remarkable. ashley: 940 points now. stuart: what a day it is. i'm going to take a cause from our market coverage because they want to get to a completely different story, but a very important story about apple. a lot of hate on apple for letting your kids use smartphones as they wish to. what about being a parent? we will have more transcendent dealing with not after this. -- we will have more "varney" dealing with that after this. no. what's the hesitation?

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stuart: dow industrials down 274 points. timeout on the financial excitement to ask the following question, when should children get a smartphone? we have an answer from the author of this book. be that parent, please. the author is a friend of the family -- i'm sorry, a friend of the show. when should your child get a smartphone. >> i would do before high school and even then i would consider a flip phone.

the only reason is they need a way to meet them after pratt is third-party. it is just for communication they do not need a smartphone. stuart: but they need to be with their peers. >> the whole point is you are the parent. you are the one who is the primary influence over their lives. if you think about the things kids can access on the internet, tennessee average age kids are exposed to internet porn. cyberbullying, the constant ringing of the phone that is making them more anxious and more depressed. stuart: you can put up a wall and say i'm not going to be part of this new world, this new technology world. i will keep it as a distance. stuart: it is our job as parents to make sure kids are prepared for the world and part of that is making sure they have appropriate ages. we monitor when they get to drink, when they get to drive, all sorts of things are their

diet, exercise. we need to monitor this as well. if you are not a parent who wants to be constantly checking on that device and see what your kids are up to 24 hours a day and i do not have time to do that, you should not be getting on the phone. stuart: 50 years ago come you don't remember, but i do, make it 60 years ago, we were told to let them watch television. it's bad for your eyes and will correct your mind. you are being no different now with smartphones. stuart: that's absolutely not true. you can't take the television with you everywhere. parents believe they must constantly keep kids entertained that never bored and when you're in line for anything, waiting for anything come when your kids are at home in game board, everybody can send the screen. bad for intellectual development, social development and emily. stuart: my grandchildren will turn three years of age in april. twin granddaughters. am i a bad granddad if i get them an ipaq h.

stuart: you are a great granddad, but you'd be a terrible father to them. [laughter] stuart: they happen to be watching. you're all right. we thank you for joining us. you'd have more time if there wasn't such an exciting day. >> unhappy about the excitement. stuart: 10:00 eastern, almost 10:00 eastern here in the easter at 7:00 on the west coast. a very big day for your money. records for the dow, s&p, nasdaq, the dow hit 26,000. it only took seven trading sessions to get from 25,000 at 26,000. we are all over this market and the excitement that it brings, but we also have big political news as well.

midnight friday, four days away, that is the deadline for an agreement on funding the government. if there's no deal, the government will shut down. my opinion? shut it down. the national interest demands we settled two issues. immigration in military spending. they are the sticking points. a government shutdown will force a resolution. look at immigration first of all print the left wants the dreamers to stay, but they don't want the wall or any other immigration reform that would keep illegals out. a return to an open border is not in the nation's interests. build the wall, change the rules to let the dreamers stay. it's worth letting the government shutdown to get the deal. the republicans want an increase. democrats say okay, but there must be an increase in social spending to match it. that is ridiculous. you don't buy national security with more nonmilitary spending. in every previous shutdown,

republicans got the blame and democrats do politics very well. pressure and now vulnerable gop. there is shock value to a shutdown. there would be intense pressure on congress to go up and do your job. fix immigration and keep america safe. if that is what it takes. shut it down. the national interest is at stake. the second hour of "varney & company" is about to begin. ♪ stuart: look at that rally. look at it go. we're up 269 points at 26,000 and 71. we're what, 930 points away from dow 27,000. just joking. check the big tech names. look at them go.

microsoft, apple, both hitting all-time highs. they're all in the green. all five of them toç the upside yet again. there are nine other dow stocks that hit all-time highs as well as of this morning. caterpillar, you united technologies, visa, bowing, jpmorgan, american express, united health, 3m, johnson & johnson, all of them at record highs as of right now. all of them are part of the dow 30 stocks. now look at ge. it is down on an up day. it will take a $6 billion hit from its insurance portfolio. ge capital is eliminating the dividend. the stock is down at at $18 a share. we need more information. peter morici, pay attention, you are now on. professor of economics at the university of maryland. i say this latest rally is because corporations are looking forward to a huge increase in

profitability. that is why we're up. what say you. >> absolutely. this rally has been paid for with bigger profits in 2017.ç the price earnings ratio in s&p said over and over again is no higher than a year ago and still below the 25-year average. we'll see more profits with the tax cut. with the tax cut we know what that does. this rally will go on. i told you last november, i see the market going to 30,000 by the time mr. trump finishes his first term. barring calamity nobody knows like a war or something like. stuart: that is rally coverage we've been looking forward to a long time. i want to get back to my take, my editorial, at the top of the hour. what i think is looming government shutdown. here is the president's tweet. the democrats want to shut down the government for amnesty for

all. the biggest loser is the military. we need merit based immigration and need it now. no more dangerous lottery. katie pavlich,ç fox news contributor. i said shut it down, it is in the national interest to shut down the government to make sure we get military spending and immigration now. do you agree with me. >> i don't know that i agree with you. the essential employees are kept here. military still functions. social security checks still go out. those who don't go to work, federal government employees still get their back pay once the government reopens. when it comes to the specific deal democrats need to be called on their bluff here. i wrote a column for "the hill" last week. everything the president is asking for in exchange for daca deal, chain migration, end to visa lottery program, end to border wall are all things democrats roundly and strongly

supported last 30 years, going back to bill clinton and ending at barack obama. chuck schumer, for example, voted for a fence on the southern border. this idea they think they are extreme asks in response to daca it is ridiculous and goes counter to their own word and statements on theç issue. stuart: they're going to call the president a racist. >> well, yes. stuart: they will say he is bigot. because of that you can't do a deal on immigration. that is what they're going to say. >> i would say democrats who are holding hostage the 800,000 plus daca recipients they! to care about because they refuse to vote for very things they supported in the past this is strategic. democrats want to use this as a hammer against republicans politically to call them racists as you mentioned. they also want to make sure that they don't do a daca deal so people keep coming in and eventually those people will get amnesty. they will be democratic voters. stuart: well-said, katy. more on politics in a moment. go back to peter morici.

what is the economic impact of a government shutdown in your opinion? >> as long as you handle it properly, get social security checks out, military funded, so forth, not very large. what are the consequences for america's business, for example, all the regulators taking a vacation for a few weeks?ç it doesn't bother me very much at all. but you have to handle it right. barack obama used the shutdown punitively to punish republicans. i mean he put barriers up by scenic overlooks on parkways. he closed the mall to visitors in washington even though there is no need to do that as long as you keep things functioning reasonably a shut downis really not all that pervasive. we have the money coming in. there is difference between a shutdown because you didn't get a funding bill and a shutdown because you didn't extend the debt ceiling. my feeling this can be managed. mr. trump today finally gave us a very cogent tweet that summarizes it all. if he stays on message and

resists the temptation to say you know, inflammatory things, market confidence can be sustained. the economy can keep on moving. i don't see this as a problem. it is time to call the democrats out for what they are, demagogues and opportunists for trying to hold america's military and economy hostage so they can harvest more votes with openç border. stuart: astonishing to me you still have a job in american university. >> i am retired for a reason. if i tweet the wrong things i get called in. stuart: you're kidding me. really? >> i have been called in, yes. stuart: it saying what? >> well, for example, we had a situation where a congresswoman said something very emotive about the health care act i responded. a bunch of female doctors complained that i was sexist. stuart: lord. >> so i got called in, peter, by the way, the university no longer publishes my articles in the press clips. i'm just a, i'm just a subversive.

stuart: no you're not. we want you on this program. you come back soon, fellow. do you believe that if. ashley: yes i do. terrible. stuart: thank you, peter. still on there. >> see you around next week whether i get shot. stuart: several democrats say they're not going, they are going to boycott the state of the union message at the end of this month. they areç. earl blumenauer, john lewis, maxine waters, frederica wilson. what is your reaction if they won't show up to the state of the union? >> if they won't show up to basic things, having to do with the they don't deserve a seat when it comes to big issues. they have taken themselves out of conversation. that is the choice they made. the president should move on with pro-america, pro-growth agenda without them. pretty simple. stuart: well-said, katy. thank you very much indeed. we appreciate you being with us today. >> thanks. stuart: the dow industrials up

260 points, well above 26,000. we have news on shell, the oil company. they are just about out of the mid-east. ashley: couple of oil fields left. they're getting it, selling their stakes in those. interesting, royal dutch/shell, made this part of the world, middle east, the petroleum powerhouse. now their footprint is dwindling. no surprise when we see shale oilç producers ramp it up. shell has nat-gas operation in the middle east. they are getting out of iraq. ex on is doing the same thing. stuart: if you can frack until cows come home. ashley: why being in the middle east. stuart: why go over there. got it. check this out, one of the biggest diamond you have ever seen, 9 120 carats.

-- 910 carats. it is estimated to be around $40 million. >> wow, serious ice. stuart: back to the markets, all-time highs. all across the board. check your 401(k) around break out into a big tooth think grain because you're doing well. including a big name in money including a 20% correction is coming. fedex chief fred smith. joins us in the studio in new york. he is big champion of the president's tax plan, we'll ask him will you invest in yourç workers and businesses with all the extra money you're getting? how amazon changed the game for fedex. you are watching the second hour of "varney & company." ♪

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stuart: still holding at really huge gain. we're up over 1%.

that translates to 263 points at the moment, 26,067. citigroup reported their profits after the bell this morning, market liked what it saw, up 1% on citi. merck, the drug company, reports a positive surprise in the long cancer study. it is up%. that is a big gain for a company like that. airbnb are trying to make money a profit, off the president's alleged vulgar comments. ashley: yeah they are. they have launched a 100,000-dollar digital ad campaign, promoting listings in places that the president referred to as reportedly, you know what? here is a beautiful home you can stay in haiti. we have another one. it says another magical place to stay in the beautiful country of ghana. so there is a couple of countries there. this is brian cheske,

2.7 million guests of airbnb decided countries in africa, el salavador and hate beautiful enough to visit. bottom line they are generating it to use for business. no other word for it. stuart: all right. kentucky is first state to approve work requirements for medicaid recipients. here is what an author had to say to it. you have a mother, three children, got to say home, take care of kids, you're a single parent, you get medicaid, would you be kicked off, you can get a job with three kids available. >> if day care is available. if day care is available, she should go to work. that is what we did in 1996. that is why the rolls went down. people went to work, no one went starving. stuart: joining us someone who

necessary all about this, star parker, founder and president of center for urban renewal and education. are you okay with the safeguards for single parents who do have to look after young children and would find it very difficult to get a job part time or training for a job? >> well one of the things that these lax rules allowing for the states to do to be for moms like that one in your hypothetical to open a day-care if what she needs to get to work. what is happening here, varney, is that the under the trump administration, with the gop leadership in the congress, we're starting to see a much more flexibility in the rules that govern over the states so that they can start trying new experiments to really help people, help people get their dignity, help people get work experience, help people get good health. with the centers for medicare & medicaid services we're starting to see a little

lax, where the great governor of kentucky, matt bevin, let me take advantage of this new opportunity to see if we can include work and training and other mechanisms so that people will move from sitting on their couch as they're getting their medicaid and maybe start getting more involved and participating in their open lives and in our society. stuart: well, star, does this amount to wholesale welfare reform? bill clinton brought us that in the late 1990s, in a sense it worked reducing roles on welfare. is this is bigger deal? >> it wit be a bigger deal, look at anti-poverty programs run out of washington, d.c., $900 billion a year, a quarter of the budget. medicaid is significant part of that. it is probably a little more an than half of that. medicaid is antipoverty program shared expenses with the states. they're shared in this. of course it is touching welfare reform but a necessary touch. when people are in good health they feel better about

themselves. when people work they feel better about themselves. to combine the two elements in the different states, allowing for them to make changes where they need to is a good idea. healthy for discussions that will come on welfare reform which we'll get to very soon here. stuart: when i introduced you know what you're talking about here. i should let our viewers know you were once on welfare. i will will not say you were a welfare queen. you came pretty close. >> i took advantage of the system. stuart: you played the system. when you got off of the system out of the system, how do you feel? >> well of course you feel much better about work but it is very risky. here is the real issue at hand. i was on welfare over 30 years ago. there is little requirement for people to get people back into society. little requirement for folks sitting there taking advantage of somebody else's work. this is a good move to start getting much more creative how we distribute anti-poverty

monies, tax monies to the states for them to help those that are most vulnerable. one thing that we can surely do help the most vulnerable in all the distressed zip codes allow them to participate in their own lives. that is what they do in kentucky and many other states across the country now that these laws have been laxed. stuart: all right, parker, since you called me varney i call parker. >> that is your show. happy new year. stuart: i do think you're all right an comebacks on the show soon. >> i will. i missed you. stuart: this is intriguing coming now. another false warning of an incoming missile. japan, the public broadcaster there, nhk sending an alert that north korea appears to have launched a missile. the government urging people to take health irinside of buildings or go underground. unlike hawaii, however, japan corrected the error in minutes. not known what caused that mistake as of now. more "varney" after this. ♪

stuart: a lot of movement in bitcoin and blockchain technology today. you're looking at eastman kodak. that stock is down. they jumped into the blockchain market last week, down this morning. long blockchain, that is the name of a company, long blockchain, they have agreed to be acquired by stata blockchain, all-stock deal. you remember long blockchain used to be known as long island iced tea, got it? ibm, they're up a little bit this morning, 1%. that is not a big gain in this market. they jumped into the blockchain deal last week. they're at 164 this morning.

how about the price of bitcoin, where is it now? $12,000 per ounce. that is down 1hundred dollars. because the south koreans want to ban it? ashley: they said this over the weaken and they re-emphasized looking at that option very much alive. this is important because the south korea is the third largest trading of cryptocurrency in the world. it has a big impact. we're seeing a report that china too is clamming down. that there at some point there will be a regulatory crunch for cryptocurrency. all of that pushing the press down. stuart: conventional stocks straight up. bitcoin straight down. i wonder if there is a connection? i don't know. i just don't know. the clock is ticking for the government to avoid a shutdown. in my opinion i think we should shut it down. that is the big political story of the day. the rally in the stock market is the huge financial story of the day. that is what we're following

over the next 90 minutes. you better stay right there. because this is exciting stuff. ♪

♪ stuart: not my favorite beatles song, i will take it. 10:30, 10:28 eastern time. we're holding at a solid rally, well above 26,000. we hit the mark first thing this morning, seven trading days after we hit 25,000. we're up nearly 1%. the big tech names, all of them on the upside.

look at amazon go. up $24 at $1329 a share. new high for microsoft. above 90 bucks. facebook at 180. on and on it goes. the about lieser is ge. ge capital will suspend the dividend. the market doesn't like that. energizer ads rayovac batteries to its lineup in a 2 billion-dollar cash deal. energizer is up 14%. if you're not watching us you're probably not hearing about the market rally. even president trump notices lack of coverage in the mainstream media. here is his tweet. you notice the fake mainstream media doesn't like covering the economic news but rather would talk anything negative or anything that can be turned into the negative. the russian collusion hoax is

dead except as it pertains to the dems. public gets it. "mediabuzz" host howard kurtz joins us now. howard, i am astonished by this, frankly, here i am, sitting as a commentator on the most extraordinarily stock market rally we've seen in my generation and not on the front page of "the new york times,," check "the washington post," not on "the new york times," it is not in the news broadcast. i'm watching msnbc right now, they're talking about trump's language. what is going on here? >> what the h is going on here. stuart: yes, please! >> the fact that the stock market is soaring is getting some coverage but mostly it is not being tied to president trump. i always say that presidents get a little more credit than they deserve when the market goes up and a little more blame than they deserve when the market goes down, but the last 1000 point gain the last seven days powered by the tax cut pushed through by trump. if the market had gone down

8,000 points since the election every story would virtually caused by trump, crisis what he is going to do. you know paul krugman, nobel prize-winning "new york times" market columnists said the markets would never recover. wrote that the day after the election. stuart: you're our media guy. you watch the media for us. i think the media's performance on the economy and the stork market is a flat-out disgrace. you think i'm too strong? >> i wouldn't use the word disgrace but i would say this in addition to the record-breaking wall street figures there has been a spate of stories in recent days about the economy essentially being at full employment. how hard it is for some employers to fill jobs, they have to raise wages that sort of thing. there might be a mention of trump somewhere, but not being told as a trump story. that has to do with antipathy toward this is president. stuart: there is another negative. the elites see the stock market go up and their reporting of it is, only the rich benefit. that is ridiculous.

again it is a disgrace that they would come out with that kind nonsense. >> with some americans invested in the markets through 401(k)s through employment plans, the idea this is just a bunch of rich people playing the market that is way outdated notion. stuart: i'm sorry, howard, i am angry about this. i think america is being misinformed for political reasons and i'm mad as hell. however i will not drag you into my anger. i'm celebrating a whopping great big stock market gain. here is another one for you. pest secretary sarah huckabee sanders called out amazon on twitter. alexa, we have a problem if my 2-year-old can order batman toy ordering batman again and again. got criticism for using officially press secretary handle for this. any attempt you throw at the member of the administration you they it at them.

disgrace. >> maybe not unrelated to the fax that president trump doesn't like jeff bezos and. nice human moment, for sarah huckabee sanders has three young kid and talk about the machine and batman toy thing. i saw people attacking her. you can't say everything without drawing flak even talking about your 2-year-old child and that is just said. stuart: i'm mad as hell, howard, i want you to get fired up like me. >> i'm working on it. i'm working on it. what else you got? stuart: listen to this. cnn's chris cuomo taking some heat for saying this. roll tape. >> went to the white house when it happened and raj, whatever his name is, didn't back off the word. stuart: raj, whatever his name is. he is a senior white house official but dismissed as rage, whatever his name is. that is a disgrace. >> you may get mad at me on this one but do 15 hours of television a week sometimes blank on a name.

raj shah, not one of those long indian names. he apologized on the air. sarah huckabee sanders sanders taken a whack at cuomo said it was classy thing to do. stuart: howard at my age you can be forgiven forgetting a name. chris cuomo is young enough to be my son. i got alaugh out of it. you calmed me down. thank you, howard. blackberry, extraordinary company continuing its push into, the car industry. that is blackberry. ashley: they are, a number of ways basically putting out a software program that tries to thwart hackers. we know that cars, use software but they're now becoming even more connected to the internet which raises the specter of people being able to hack into cars, steal information, even take over a car. blackberry came up with the computer program called jarvis that will scan all the code

within the cars to see any vulnerabilities in there that hackers could use. they have signed partnership deals with nvidia, qualcomm. this is company, blackberry as we know started off in the smartphone business as completely done a 180, has now put all of its eggs in the car software business and doing very well. the stock is at a four-year high. tough be impressed with the way they have pivoted. stuart: look at it, $14 a share, up 4 1/2% today. we had written it off. ashley: we had. stuart: the "crackberry" was gone. ashley: not so fast. stuart: some genius turned them around. that is a fact. ashley: good story. stuart: we're holding on to a 200-point gain for the dow jones industrial average. for the benefit of our radio listeners, right at 26,000 right now. 26,003. 26,004. we're holding 26-k. by the way we hit it only seven trading days after we hit dow

25,000. ashley: 140 points a day, based on seven trading days. stuart: you're good at math. ashley: no, i cheated, used my calculator. stuart: stop showing off. as we go to brian kilmeade, we're up 204 points at 26,008. brian, come on in, host of the "brian kilmeade show." i want to ask you this, i at the top of the hour i gave an editorial saying we should shut this government down. it is in the national interest to shut it down to get a deal on immigration and military spending. what say you? >> i don't see any indication they will go back and do something bipartisan. on tuesday it was three and three. there they were meeting in bipartisan way, we were talking about the tax cuts, this group on bipartisan level was talking about daca, some type of two-phase immigration reform. at 10:30 the president was reportedly for it. by 12 he wasn't. now we got the personal snapping between dick durbin and president. if we shut it down, stuart, what

indication are they going to work on anything? stuart: the enormous pressure to go to work on something. i mean there will be pressure on the republicans maybe to cave. there will be pressure on the democrats, are you really shutting the government down because of the "dreamers"? they're going to knock heads. the only way to get a deal is for it to hurt, shut the government, make it hurt, and then you will get a deal. it is in the national interest to do it. >> they won't getting hurt. not like they won't get paid. a bunch of government workers we'll find out they're nonessential great for the self-esteem. anthony robbins will have to lift them up with personal power. stuart: i'm perfectly happy with a government shutdown. nobody won't get hurt. economy will not get hurt. stock market rally will not get hurt. we don't need this, do we? >> stuart i feel, i hate disagreeing with you because you're so powerful and make me have retribution, retribution, but i disagree. but also the international

perception, the country fighting with each other non-stop, whose economy finally getting on track, pushing back since the election with non-stop investigations now can't even fund the government even though they have record revenue? that to me is embarassment for the president who billed himself as negotiator. i think a shutdown shows a failure, personally. stuart: okay. we're totally out of time for that issue. so i will move on to something more positive for you, kilmeade. >> showing maturity. stuart: very good. 99-year-old lady, minnesota viking soup fan, she was at the vikings game, given tickets it the super bowl as early 100th birthday president from the team. brian, if i'm not mistaken the super bowl will be played in minnesota with the vikings stadium, correct. >> with or without the vikings there, neutral site. second time, unlike in new york, have indoor facility. a lot of tunnels in minnesota.

this is fine. this is the pr the nfl needed. commissioner who heard the story about the 99-year-old who has never been to a playoff game even though the vikings were great in the '70s, part of the '80s, in the 90s reached it once. great move for the team. now there is gofundme page to get her to the vikings eagles game. maybe people respond, sender her to philadelphia. she will be in minneapolis. this is maybe first time ever the nfl will have a team play at home with the super bowl which traditionally is neutral site. an amazing weekend. however, fascinating to see the ratings were off everywhere except the minnesota game again last week in the playoffs. paying the price for taking a knee. i really think the nfl can't wait for the season on some level to be over. stuart: to be over, well-said. brian, got to leave you. we'll see you again real soon. brian kilmeade. >> great seeing you stuart. stuart: thank you. first on fox business, fedex ceo

fred smith, big champion of the president's tax plan, we're going to ask him how is he going to invest in his workers and business? is he going to pass the money through? he is next. ♪

♪ ashley: the market is are breaking records.

your retirement accounts are booming, and the mainstream media? ignoring it. former nbc chairman bob wright, 2018 ignore it or not will be an outstanding year. roll tape. >> most media doesn't report business. they don't have that interest. they feel their prod range of people are not interested in the details of it. i tell you one thing, 26,000, i don't think, we've really haven't gone anywhere near where we're going to go. this tax program is so strong it is, it is impact will be found over the next eight or 10 or 15 months. i predict that 2018 will be the most outstanding year since probably 1996 or 7 in terms of productivity, in terms of probably getting close to 4% on gdp. ooooooh snap!!

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this is laura's mobile dog grooming palace and this is where life meets legal. ...from godaddy! in fact, 68% of people who have built their... ...website using gocentral, did it in under an hour, and you can too. build a better website - in under an hour. with gocentral from godaddy. stuart: lost a little steam but not that much. ashley: still 26,000. stuart: we'll take it. we were well up over 200. now we're up 199 and change. 26,003 is where we are. now this. many companies give back or are giving back sult of the tax bill. fed exsays it will deliver $1.5 billion worth of higher earnings, better profits. look who is here the man himself, fred smith, the fedex ceo. honor to have you on the show. >> thank you, stuart. glad to be here.

stuart: what are you going to do with the extra cash? are you going to give bonuses? >> we have a board meeting next week. we tell the board what the tax bill means to us. it passed in between board meetings. i'm sure we'll do a lot of things as a result of this tax bill because it was very, very good policy. stuart: that is very smart avoidance of the question. >> i can't make any news until our board approves the things we're going to do but obviously the tax bill means businesses like fedex, which is already a major investor, our cap-ex budget this year will be $5.9 billion. but it means that we can increase it in the future because of the new provisions of the tax bill. stuart: top guy at blackrock out this morning saying companies should be responsible, and they should contribute to society. i think he is talking about the bonuses and wage increases. so kind of prod you a bit more, if walmart can give bonuses to a

million employees why can't fedex do something similar? >> my guess is we will be responsive to the tax bill. stuart: can i say that as a probably, fred smith, fedex -- >> you can say that is probably. i don't know it will be bonuses. might be increased wages which we do every year anywhere -- stuart: but will you increase more because of the tax bill. >> it could well be, stuart, because the tax bill corrects something that has been a real problem for american business for years and that is the punitive tax code that we used to have that dissuaded investment. and investment is the only way to make blue-collar workers, people that don't have college degrees, more productive and have more income. so you can hire six people to move a pile of dirt. you can hire one person with a bulldozer. the difference is the bulldozer. bulldozer driver makes a lot more money than people with a shovel. stuart: if you buy new bulldozer

it is immediately compensable. >> that is the difference right there. it reduces the risk and improves the future returns of that capital asset. so it will increase business investment in this country. and that is the biggest single problem that we had prior to this tax reform. stuart: so you will commit to investing more in your business, because of the tax money that you get? >> well i don't think there is any question we'll invest more because you can expense it. the reason i hesitate is for the simple reason that we're already in a enormous investor, $9.5 billion cap-ex this year. boeing airplanes, ge engines, freightliner trucks, computer systems, i could go on and on. what it means in the future rick of investment is lower. almost certainly american business, including fedex will respond to it with higher investment. stuart: you deliver some of

amazon's stuff. >> we do. stuart: a lot of it actually. well we've got news today that amazon shipped five billion items just to its prime members. >> right. stuart: that was last year. five billion items. can you keep up with that because they're growing like topsy-turvy? >> we can keep up with any growth as long as it is compensatory, things we were just talking about. when you make big investments you have to get a return on those investments. so assuming that the rates paid are compensatory of course we can keep up with it. the expensing makes it that much easier. stuart: the word is amazon might invest in its own delivery service, its own trucking fleet or airline fleet, which some of it has already. that has got to worry you? >> well let me put a couple of things in perspective here. fedex today on average will deliver about 13 million shipments. we'll deliver those 13 million

shipments with 650 planes, 5000 facilities, 150,000 vehicles, and almost half a million people serving 220 countries. stuart: that is per day? >> per day. stuart: 13 million per day. >> per day. stuart: have you got excess capacity? >> well -- stuart: will your current planes and ships and freightliners, can you deliver 15 million a day? no well we, we can easily deliver is a million a day but you have to invest in the capacity to be able to do that. that's why the tax bill is so positive. stuart: okay. so going to put the money back into the company, aren't you? >> we have been for years but it will allow to us put more money into the business with less risk, and that's the big issue that was solved with the tax bill. that and the ability to bring money that was locked overseas back to the united states. stuart: are you experimenting or doing anything with drones? >> we do have a lot of efforts

underway for autonomous vehicles and aircraft. stuart: so you're into it? no oh, big time. stuart: that is the future. >> yes. i have to tell you, we don't really like to do vaporware, make announcements then aren't seen in the operations so i think some of these things in the next couple years you will see a lot of announcements from fedex. stuart: i spent the last five minutes pressing you to say something. [laughter]. up on that monitor i see the dow jones average at almost 26,000. that is a rip-roaring rally. >> sure. stuart: what does fred smith of fedex say about that? >> i think the stock market represents the future expectations on cash flows and profitability. you were talking about amazon. we love to have their pe. our trailing pe is 22 and we're highly profitable company and their trailing pe is 266. so at any rate, the market is

reflecting growth around the world which of course we see. we serve 220 countries. nobody sees the global economy the way we do. and it's pretty well-synced up and you have better situation for business with the reduction in regulations and most importantly this tax bill. this was a long time coming. it was directed where the u.s. had the biggest problems which was lack of corporate investment, and government investment for that matter. and that will have a big effect on gdp growth and wage growth. stuart: you went to harvard business school, was it? >> no, i went to yale undergraduate. my graduate school was usmc, four years in the marine corps. >> at yale you submit ad business plan for a overnight delivery service and they rejected it, correct. >> that is direction alley

correct. but i think the story is i wrote a paper and i got a c on it and everybody thought that was such a good thing. i was quit happy with that c. good grade for me. stuart: there was a time you didn't have enough money to pay for jet fuel for your planes and your pilots chipped in with their own credit cards, that is accurate? >> maybe one of them did. they were a great bunch people and helped carry the company on their backs many ways, not just paying for a load of gas. stuart: you have never forgotten them, have you? >> no, no. the whole thing about fedex that sets us apart our culture and our people and our dead kegs to the what we call the purple promise. i will make every fedex experience outstanding. that is how we became a 65 approximately -- billion dollar company, because of teammates that deliver 13 million shipments every day. stuart: forget me asking you a personal question, you're a wealthy man, extremely wealthy man, what do you do with your money. >> well i have lots of kids, lots of grandkids.

i have a lot of, a lot of charities and causes that i am passionate about and, so it's one of those things where fortune has obviously smiled on me but i have seen a lot of tragedy too, i keep that in perspective. stuart: such a diplomat. you're telling me it is none of your business. yes you are. you are an american icon. >> thank you, stuart. stuart: fred smith, what an honor and pleasure to have you on the show. >> thank you very much for having me. stuart: much obliged to you. i will shake that hand. thank you, sir. press secretary sarah huckabee sanders, she had some strong words for senator chuck schumer. blake burman standing by with what exactly she said. go, blake. reporter: hi, there, stuart. sarah sanders from the north lawn driveway, defended the president from those who feel his comments last week prove he is a racist. as chuck schumer said last night on stephen colbert's show the

following. >> you want to begin, just begin that long road back to proving you're not a racist, you're not bigoted, support the bipartisan compromise. >> i think if the critics of the president were who he said he was, why did nbc give him a show for a decade on tv? why did chuck schumer and all of his colleagues come and beg donald trump for money? reporter: that bipartisan compromise schumer was referring to there, daca deal democrats want to see attached to a spending measure that needs to get passed by end of this week by friday night. sanders reiterating the white house does not see that as an attachable issue. they believe it is separate. president trump, to that end is trying to preemptively shift the blame on to democrats. a little while ago he sent out this tweet, writing quote, the democrats want to shut down the government over amnesty for all and border security. he goes on to write in the tweet, we need a married based system of immigration and we need it now. the democratic senator dick

durbin who has been a target of president trump in the recent days said earlier today he thinks a shutdown is preventable. in any event the heat is ratcheted up here as the friday night deadline nears, stuart. stuart: as you might expect. blake burman at the white house. blake. stuart: thank you very much. the rally holds, close to 26-k. more "varney" after this. retirement. i get that voya is with me through retirement, i'm just surprised it means in my kitchen. so that means no breakfast? voya. helping you to and through retirement. ♪ ♪ i can do more to lower my a1c. because my body can still make its own insulin. and i take trulicity once a week to activate my body to release it, like it's supposed to. trulicity is not insulin. it comes in a once-weekly, truly easy-to-use pen. the pen where you don't have to see or handle a needle.

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stuart: welcome, everyone, and welcome, indeed, to the third hour of "varney & company." we've said it before, and we will say it again, you are watching financial history. this is the most explosive stock market rally that i personally can remember. think of it this way, on january the 4th the dow crossed 25,000. that was just seven trading sessions ago. we've gained a thousand points in a week's worth of trading. that is stunning. here's something else that is

very hard to believe, but it is true, the five big technology stocks -- all american companies -- have gone straight up and added a trillion dollars to their value since the election. apple, amazon, alphabet, microsoft, facebook, they are leading the world towards a new technology economy. again, that is stunning. this program has tracked the trump rally right from the get go as the market kept going up, more and more people got worried. what shall we do? should we get out before the inevitable selloff? well, here's a couple of strategies for those who may be anxious. number one, you sell everything now, you take your profit, you sleep well at night, you won't have to pay the profits tax until april of 2019. option two, sell half your stock. that way you lock in your original investment so you're not going to lose. let the rest of it ride. number three, put in a stop loss. that means if say you own apple

and it's now, say, $176 a share, you order the sale of all of it if it hits $160. you have stopped your loss. in all three of those, you have the problem of what to do with the money now that you've got tons of it. that is not exactly a huge problem now, is it? we are very glad that you've been with us all this time. it's been a wonderful ride. i don't know where this market's going, but i'll tell you this: this is financial history. you can tell the grandchildren that you were there when the trump rally made wall street great again. the third hour of "varney & company" is about to begin. ♪ ♪ stuart: now, having said that you're watching financial history -- >> yes? stuart: -- we are pulling back a little from historical markets. still a half percentage point,

still a very solid rally, but we're back below 26,000. the dow broke 26k first thing this morning. we've lost some ground, but the s&p, the nasdaq, the russell, all three of those other indicators as well as the dow, all of them hit record highs earlier this morning. still on the markets, our guest this morning says you should take your profit. take your profit now because a correction could be coming. is coming, i think he's saying. joining us is craig johnson, managing director at piper jaffray, very senior guy. all right, craig, are you saying, yes, a 20% correction is on the immediate horizon? is that what you're saying? >> yeah, stuart. let's take a look at the weight of the evidence and, yes, we are seeing that we think a correction is certainly very possible at these levels. and let me say why. so if we go back and look at some of the names you had just mentioned a few moments ago, if you look at the chart of caterpillar, boeing, if you look at a chart of microsoft, intel,

united technologies, stuart, all these charts are basically parabolic in nature. they've gone straight up, and they're almost bending over backwards. as a technician looking at the market in a parabolic advance like this, typically these advances don't end well. they typically end up in some sort of correction. and if you look at the fact that seven out of the thirty names in the dow are parabolic, you also take note that you've got probably about 20% of the names in the dow that are more than 20% above their 40-week moving average, and a third are 15% above their moving average. for all these reasons, there's a lot of great companies, but now is probably the time to take some off the table, and, in fact, you've done that. stuart: okay. i like your expression, take some off the table. i was just saying at the top of the hour one strategy would be you sell half of your stock. you know, if you've made a lot of money in apple, for example, you sell half of it, so you keep your money safe, your original investment, you let the rest of it ride. is there something wrong with that strategy? >> i think that strategy makes

some sense, and it just depends how far you think this setback in the market could ultimately go. if you think about the fact that you correct 110% of a parabolic advance, you could see some pretty healthy corrections in some of those names, you know, such as boeing and caterpillar and some of those names. i'd also just mention though for the long term, right, this is more short, intermediate-term thinking. for the longer term, we've always said -- we've been on this show since 2012 talking about the great rotation in the secular bull market. if we get this setback, this is a setback/correction within the context of that secular bull, and we think this bull market works until you have a 5 or 6% ten-year bond yield. that's years from now. gotta be careful in the near term, stuart. stuart: that's very interesting. you're a little technical for us. we avoided giving you the buzzer, we're very generous today but, nonetheless, craig, thanks for joining us. we do appreciate it. and we're looking for that correction. i want to bring in fox news

contributor now scott martin. scott, you heard craig johnson there, the likelihood, the expectation of a 20% pullback sort of correction. what's your reaction to what he said? >> been there, heard that. i guess this is what makes a market though, doesn't it, stuart? we're both -- craig and i are kind of on opposite sides. i do respect their research, but i'll tell you, haven't we heard this story for the last, i don't know, two, three, four, five, six, seven, eight years, you know what i mean? there was supposed to be a double-dip recession after the first one back in '08, and that never happened. here's the reality, craig's partly right. parabolic? i don't know. look at bitcoin prices, that's a parabola. to me, it's aggressive growth in a lot of these stocks that he mentioned. but my goodness, guys, if you look at this historic tax package that we just had which, to craig's point, this is not a normal market. this is a market that's going to be really juiced. so the fact that companies can trade on these higher earning

multiples makes sense to me. the fact we have gdp consistently over 3% this year, maybe even pushing 4, is a reason you should still be excited about stocks. yes, the higher we go, the farther we could fall, but i don't think it's anytime soon. stuart: all right, scott, we asked you to tell us, tell our viewers what are you buying. and i know you're going to start with paypal. make the case to buy paypal now because i'm pretty sure it's close to a high. i don't follow it, but it's at $80 a share. you'd buy it at 80, why? >> yes. and we've owned it since the '60s. it's this old saying of cash was kind of so 2016. and those credit cards, you know, the plastic stuff in your wallet was kind of 2017. paypal and some of these other electronic pay systems are 2018, stuart. and if you look, paypal's behind a lot of the online transactions that you do whether you know it or not, and they've got amazing earnings power. they're getting that growth both in and internationally, and that's why we like them here.

stuart: okay. now, you also like the big tech stocks. we always put up the five big techings. we put them up all the time, and you like four of them, as i understand it. the only one you don't like is apple. so tell me why -- let's start with top of the list there is facebook. now at 179. why buy it at 179? >> i'll tell ya, i was really excited about what happened last week with facebook and their talking about how they were chasing the news feed ads and items that come up on your screen because that was an opportunity for those who missed this run in facebook which you and i have talked about a lot, stuart. you look at the mobile ad growth alone, it's a reason to buy it. besides the fact that zuckerberg and some of the crew are taking steps to improve their business model, they're addressing concerns -- which a lot of tech companies back in the day used to not do that. they're being responsive. the only reason i don't like apple, it's a little overowned here. their ecosystem is getting breached here and there, we see spotify coming out with an ipo which i do like in a couple

months, by the way. i think apple's one of those big names i would avoid here. stuart: the other one, i want to concentrate on amazon. $1330 a share. you like it, you would buy it at that price? >> i would. and i saw you talking with berth flickinger, i think it was, earlier on the show around nine a.m. eastern about amazon getting investigated for the antitrust, doj stuff. here's the problem with that, i feel like amazon just in their earnings growth alone and the fact that they're such a big part of our lives, amazon prime is the gateway drug to internet spending, and that's why they're really good. i'll tell you why i don't believe the antitrust deal. if you look at history, it's companies that take advantage in, say, price pressure consumers which is not happening. amazon is bringing down prices, and they're making things so much easier for the consumer to buy which is not antitrust as we've seen in the past. stuart: i'm going to throw two bitcoin stories at you. south korea says it's still considering a ban on bitcoin,

and 80% of all available bitcoins have already been mined, so to speak. why are prices down this morning $1600 a share -- a coin, i should say? >> yeah. i'll tell ya, it's kind of that opposite side of the parabola we touched on. it kind of took the elevator up, as the saying kind of goes, or the escalator, it really took the elevator up, and it's jumping out the window here. a lot of investors that i know, i'm a recovering bitcoin holder, so we don't own it. we are buying it here. a lot of investors are getting out of bitcoin and getting in some of the other cryptos, stuart. that's why i think a lot of those prices are getting pressured and the fact that i think people are realizing maybe bitcoin isn't that true alternative like gold or some of the alternatives people have bought in the past. stuart: tell me about ge. it's down today. the ceo is maybe considering breaking the company apart, breaking it up, i should say.

is this the time to get into ge at 18.26? >> it's really close. it's feverishly close, i can feel it. john layfield and i talk about it a lot, who i think he's a good longstanding ge owner. i'm not quite ready yet, but things in ge -- just like in retail, and we talked about this on the show on tape in december -- [laughter] things were getting so bad, they were talking about breaking it up, cutting thetive tend, and it's going to go to 15, it's just not quite here yet, but we're searching for a spot to get into ge. stuart: we hear you, scott martin. thanks for joining us on an historic bay day. see you again soon. now this, last week we shared the story of a couple of high school students who made a hundred thousand bucks mowing lawns. they own green works landscaping in colorado. today we're joined by the founder, he is 17 years old. kelly ward will be with us. she's running for jeff flake's senate seat in arizona, and she's taking on senator flake for comparing president trump to

joe stalin. she's with us shortly. and with the possibility of a government shutdown looming, president trump calling out the democrats. more on that in a minute. and, of course, we're following the big story of the day, your money. the third hour of "varney & company" is only just getting started. ♪ ♪ it's great to finally meet you. your parents have been talking about you for years. they're all about me saving for a house, or starting a college fund for my son. actually, i want to know what you're thinking. knowing that the most important goals are yours, is how edward jones makes sense of investing.

...from godaddy! in fact, 68% of people who have built their... ...website using gocentral, did it in under an hour, and you can too. build a better website - in under an hour. with gocentral from godaddy. stuart: we were up well over 200, but we'll take up 143. that puts us just shy of 26,000 which we did hit earlier. invidia, record high. one investment firm raised its price target the $240 a share. right now it's $224. casino stocks, wynn and mgm, they're up. morgan stanley says wynn remains its top casino pick, mgm is its next favorite.

both of them up. politics. president trump tweeting about a possible government shutdown. here's what he has to say. the democrats want to shut down the government over amnesty for all and border security. the biggest loser will be our rapidly rebuilding military at a time we need it more than ever. we need a merit-based system of immigration, and we need it now. no more dangerous lottery. he's here again, herb london, president of the london center for policy research. i say shut it down, because that way you'll apply pressure to get an immigration fix and a military spending fix. what say you? >> i say the military spending is critical. the president has asked for an additional $56 billion of spending. in order for us to reinforce the triad and do whatever is necessary in the way of antimissile defense, we must have this money. whatever pressure can be applied on the democrats must be applied. stuart: well, the democrats are saying, okay, you can have your

increase if you increase social spending by the same amount. >> this is absurd. it is absurd this large part because there are issues that transcend the normal discussion in the political arena. this is one of them. if we are talking about the future of the united states, to some degree the security of america is critical. and that security is very much dependent on our having the requisite military strength to deal with our enemies. stuart: and you've got to stand firm on the dreamers. sure, let 'em stay, but in return you've got to build a wall, you've got to get rid of chain migration, you've got to get rid of the lottery. that would be a reasonable deal. >> you made reference to a merit-based immigration system. this is what we must have. the canadians have it, the australians have it. this is what makes sense in the united states. it's not a question of whether we will have pourous borders, it's a question of whether the people coming into the united states want to be an american, want to share our values, want to contribute to the united states, are capable of

contributing to this country. stuart: sure. >> that's the issue. stuart: right 100%. but you know if that government shutdown takes place, the republicans will get the blame. >> of course. stuart: the media will be all it's your fault, and they'll take aim right at our president. >> there is no question. and they will say that president trump is responsible. and i assure you, schumer will be on tv tonight saying that the president wants to shut down the government. but it's the democrats that are largely responsible. to onus has to be put on the democratic party. the president has to turn the tables on them, and i think he's capable of doing that. stuart: okay. homeland security chief, kirsten nielsen, as you know, she's been testifying on capitol hill this morning. she was asked about the president's alleged vulgar comment. she said he didn't use that vulgarity. can you believe that that's what they're still talking about whilest we've got the government shutdown coming up, we've got a whopping great stock market rally, we've got an economy that's booming, and they're talking about a week-ago event

about a vulgarity. >> look, stuart, if someone would have said to me when this president took office that we would have a dow at 26,000, i'd say you're smoking hallucinogens. [laughter] if you would have said to me that the unemployment rate is the lowest in 17 years -- >> yep. >> -- i'd say i don't know where you're dreaming. if you would have said -- [audio difficulty] to me that even among black youth we've had lowest unemployment rate in recorded history, i would say -- [audio difficulty] and yet interestingly, we're dealing with some foul language that may or may not have been said by the president. just absurd. stuart: it's absurd. >> it's absurd. stuart: absolutely absurd.

>> it demonstrates something about the relentless attacks from the left on this president. stuart: you've got that right. herb london, you're all right. [laughter] thanks for joining us, sir. hbo doing some cost cutting. they say, look, they're going to reduce the number of shows that they develop. also they're not going to spend a ton of money to land the big stars. netflix says it spent $6 billion to launch 30 original shows last year. they're going to do some cost cutting. that was, by the way, hbo. they're doing the cost cutting. >> right. stuart: now this, u.s. oil output is booming, we hear, thanks to a jump in shale production. it's now on track to top more than 10 billion gallons of oil per year -- per day, i should say. we'll hit that in the next couple of days, i believe. that'll break a record set back in 1970. >> that's -- stuart: yes, absolutely. drill, baby, drill. that is energy dominance. >> it is. stuart: good stuff. very soon we're going to be joined by arizona senate decade

kelly ward. she's releasing an ad hitting back at jeff flake and martha mcsally. you'll see the ad here first. check this out, thad hoyer, is that the right pronunciation? >> yes. stuart: all right. [laughter] a watch company. unveiling its shiny new smart watch. 589 diamonds. guess how much it is. >> too much. stuart: we'll take a break and you'll find that out, i promise. ♪ ♪

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profanity? >> no, sir. neither did i. >> did you hear senator graham use profanity? >> i did hear tough language, yes, sir. >> what did he say? >> he used tough language. he was impassioned, i think he was feeling very strongly about the issue, as was everyone in the room. and to underscore a point, i think he wasç using some strong language. >> do you recall that the strong language he used repeated exactly what the president had

said prior to that? >> i remember specific cuts words being used by -- cuss words being used by a variety of members. >> i'm not going to ask you to say those words here, but i will just say for the record senator graham spoke up in a way that i respect very much, countering what the president had said about countries in africa, reminding the president that his family did not come to america with great skills or wealth, but they came here as most families do, looking for a chance to prove themselves and make this a better nation. and in defense of senator graham, his strong words repeated exactly the words used by the president which you cannot remember. let me ask another question -- >> if i just could, sir, i do want to say that i greatly appreciate not only senator graham's leadership, but yours as well. i know you're both very passionate about this. as you know, afterwards i approached this and asked that i'm happy to come talk to you anytime. i do think that senator graham very passionately described what he believes america's aboutç ad

what we should move towards. yes, i agree with that. >> do you support a path to citizenship for daca recipients and those in the dream act? >> i think we have to find a permanent solution, yes, sir. >> i hate that phrase, permanent solution. do you support a path to citizenship? >> i believe that is part of discussion and to make sure that we don't continue temporary populations that continue to exist, we should talk about that. i'm not here to get in front of the president or any final decisions on that particular issue, but, yes, i'm happy to discuss it. >> do you recall the president saying he wanted $20 billion now, and he would build this wall within one year? >> i do remember him saying that. he was concerned that given the appropriations cycle that any teal that we made now would be limited to this year's appropriation. i remember him asking is there a way to authorize the full down payment of the law such that we could have assurances that we could, in fact, build it. >> so let's take a look at what your department has done when it comes to building walls. as of december 6, 2017, less

than 1% of the $341 millionç appropriated for 40 miles of replacement funding had been expended. actual construction has yet to begin on money appropriated in the last fiscal year. so is the president realistic when he says he wants $20 billion so he can build the wall in one year? >> i think the president is encouraging us to go as quickly as we can. [laughter] as you know, it's a very complicated issue, building the wall, for a whole variety of reasons. what we're doing right now is we are testing and evaluating those prototypes, and we'll continue to determine not only the design, but what's best per some of the other sticular part of te border, because it will be different. we need a full tool kit. >> madam secretary, the president made it clear in that meeting that one of the conditions for his assent or agreement to protect daca was 20 billion so he could build this wall in one year. the fate of john and alejandra

lies in the balance here. the president is insisting on something that is physically, legally impossible as a conditrtju him to give them a chance to be here in the united states legally. now, you've seen -- because you commented on it on fox news -- the proposal which senator graham and i as well as four other senators have made on a bipartisan basis, and you've rejected it. you said at one point, i believe, that -- let me see the quote here -- there's nothing here that would prevent us from getting here again. are you aware the fact that included in this proposal is the entire request of the administration for border security in this fiscal year, $1.6 billion for fences and another billion dollars for technology, exactly what you asked for? if you don't believe this is going to solve the problem, which is what you said on fox news, why did the administration request it in the first place? >> well, sir, that's not all we requested, as you know. we also requested to close the

loopholes that serve as the pull factors that continue to exacerbate the problem. i cannot apprehend if i cannot remove. that's not border security. >> let me add, the first meeting we had last week we agreed and greed there would be two phases to this conversation. the first immediately to deal with the daca challenge and the three other elements the -- >> including border security, sir. >> including border security. every penny that you asked for. and then the president said phase two goes into comprehensive immigration reform, many of the issues which you described as must-haves. we understand that. to put the entire burden of immigration reform on the shoulders of these daca recipients is fundamentally unfair, not practical and jeopardizes their future and their lives. what we're trying to do is an honest, bipartisan approach to deal with the first phase of this, and you have rejected it. >> i thank you for your passion. i hope you understand mine. i cannot agree to a deal that does not give the tools and

resources to the men and women of department of homeland security to do the job you have asked them to do. >> we gave you every penny you asked for -- >> sir, it's not the pennies, it is closing the loopholes. >> can we cut back on some of this money? we could sure use it. >> we need the wall too. the wall works. as you know, it's part of(bnrder security. >> thank you, mr. chairman. >> senator -- stuart: that was a very enlightening appearance by kirsten nielsen, the homeland security secretary, being questioned by senator dick durbin. at issue to start with was the language which the president had used in that immigration meeting, which is close on a week ago. let me sum it up. ms. nielsen's response was i did not hear that word used. that word being "s-hole," i guess -- >> right, right. stuart: that's the vulgarity. i repeat. as nielsen said, i did not hear that word used.

then they went on to a discussion of the wall. pretty good, i've got to say. >> she pushed back very well. stuart: i think ms. nielsen pushed back extremely well against a somewhat angry dick durbin. all right, that's politics. now money. still looking good. the dow industrials are up 153 points. okay, we had been well up over 200 points, but we did hit 26k. we have come down just a little. oh, look who's here, the man of the hour.ç [laughter] he's actually been forecasting this. his name is charles payne. he has a show on this network called "making money with charles payne." >> you know, everyone's tweeting they want me to sing. [laughter] i'll wait until dow 30,000. we did the singing bit, and we've been taking off ever since. stuart: it was on tape, by the way. now, several people on this show this morning have said this is the start of another leg up, that 2018 will see us move even higher than 26k. you're in line with that. >> i am. stuart: okay. how high are we going?

>> i don't know. i don't know. but as long as the fundamentals continue to improve, it justifies the market going higher, and i'm convinced that the fundamentals will continue to improve for this year, next year and possibly longer. general motors said as much, by the way, this morning. they gave their guidance for two years out. very rare. stuart: yeah, that is rare. and looking good for two years out. >> right. stuart: a hot of our viewers are going to be nervous because you think you can't keep on like this. so selling half your investment, so you still let some of it ride, but yo]ç protected your initial investment. is there something wrong with that? >> yeah, there's a couple things wrong with that. i always say you sell based on why you bought. if you bought to be a trader, sell like a trader. if you bought to be a long-term investor, be a long-term investor. also my biggesten concern is when people sell, they don't know when to get in. so you'll sell ibm at 160, and a year or six months from now it's 188 or 190, you don't know, they get stuck. and that's what happens. if they just ride it out,

understanding there will be some volatility, there'll be a few bumps in the road, i think that's a better strategy for most of our viewers. stuart: still going up, right? >> absolutely. stuart: you've been there right from the get go. >> thanks a lot. stuart: thank you, charles, good stuff. i want to stay on the markets and bring in deroy murdock, national review online editor. now, this is a political kind of guy -- [laughter] but i'm going to ask you a market question. >> guilty as charged. stuart: you're a politician. [laughter] you see that rally? that's a gung ho rally. >> wonderful. stuart: why does donald trump, our president, why doesn't he get any credit? why isn't the media covering it? nowhere in "the new yorkç times" -- on the front page at least -- is there any mention of what's going on? >> he doesn't get credit for the good things which is increasing 401(k) values, increasing bonuses, increasing human happiness. if people can pay their bills, they're usually happy and not grumbling. and yet he takes the blame when you had this false report of this incoming nuclear missile in

hawaii. people saying it's donald trump's fault. he gets blamed for things for which he has no connection and gets no credit for which he deserves a lot of credit. stuart: it makes me angry, quite frankly. >> makes me angry too. stuart: i come on the show this morning, we know we're going to get 26,000 on the dow, we know it's history, and i pick up the papers, even "the financial times" does not mention it on the front page. >> it's remarkable. and, look, there are both palpable and ethereal reasons. stuart: what are you, some kind of intellectual here? [laughter] >> from time to time, occasionally. sometimes even in the mornings. [laughter] things like the tax cuts and deregulation, of course, but i think one of the things that really has hoped this market is tone. we heard from barack obama you didn't build that, you're oneçf those wealthy 1%, capitalists are ruining this place. donald trump comes in and all of a sudden he's saying we look to you to lead our country, please build jobs, we're proud of you, do a great job, and suddenly people don't feel as be their money's jeopardized, they feel

more comfortable investing and expanding operations, and that improved tone is one of the reasons the economy's booming right now. stuart: real fast, you say the president -- the democrats are not the president's friend. >> yes. stuart: but he needs them to get 60 votes in the senate. >> he can negotiate with them, but i think he needs to remember all the time, i describe them as basically human wiretaps. if there's a democrat in the room, he better assume they're going to run out and say anything off color, unusual, mildly inappropriate. he has to assume if he sees a democrat in the room, it's like having c-span or a fox news camera in there. stuart: nice touch. [laughter] delaware roy more box -- deroy murdock, thanks for joining us. a government shutdown may come at midnight friday. joining us now, chris stirewalt, fox news politics editor. chris, i issued forth a rant at the top of the hour -- >> uh-oh. stuart: yeah, i did, iç did. i went there, i did it. [laughter] i said, look, shut the government down. that's the only way you're going to get a deal on immigration and pentagon spending, shut it down.

crack some heads together. make -- get a resolution here. what say you? >> government shutdown is sort of like renting a lake house. [laughter] you don't know what it's going to be like until you get there. you don't know who's going to get along. you don't know whether it's going to be a good trip or not. in every case, every president since current modern budgeting era began in the 1970s, every president has had government shutdowns to deal with, and you don't quite know how it's going to play until you get there. democrats believe they will be the least disadvantaged, republicans believe they might be the least disadvantaged, and i just think this is one of those moments where they're going to have to touch the hot stove to figure out -- before they believe what the consequences might be. stuart: exactly. i don't know how it plays out. i don't know who gets the blame, whether it's democrats or republicans or the president. and you know what? i don't care. because in the national interest, fixing immigration anç fixing military spending are the two key issues which we have

really got to get resolved. what do you say? >> well, and also there's just this, this is a hideous way to run a government. we have been falling apart in terms of the regular order of the boring things that the government must execute each year. it's really been since 2007 since we've had a real budget or any sort of a normal process. so we've had a lost decade when it comes to doing what's supposed to be the ordinary work. and it's not just the budget, and it's not just the military, but it's also patching obamacare. this relates to children's health insurance, this relates -- all of these other things that have to get done, and what a nincompoop government that can't do ordinary work in an ordinary fashion. stuart: well said. chris, sorry to cut this short, but we've got a huge day in money -- >> i feel it. stuart: stirewalt, you're all right. thanks for joining us, sir. >> you bet. stuart: look at general motors. they're looking down the road, two years down the road, actually, and they forecast higher profits next year when it's rebound -- its rebound line

of highç pickup trucks hit the market. up 7% this calendar year. profit more than doubled at united health, driven by a one-time tax gain because of the tax code overhaul. the stock is up over 2%. now this, last week we shared the story of a couple high school students making $100,000 mowing lawns. in a few minutes, we're joined by the founder of that company. he is 17 years old. but first, arizona senate candidate kelly ward, she's releasing an ad hitting back at jeff flake and martha mcsally, you'll see the ad right here, and she's next. ♪ ♪ nah. not gonna happen. that's it. i'm calling kohler about their walk-in bath. my name is ken. how may i help you? hi, i'm calling about kohler's walk-in bath.

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of the union address. john lewis, maxine waters and frederica wilson. wilson says she will skip the speech because of the president's reported vulgar comments last week. senator jeff flake plans to compare the president to josef stalin. in a peach on the senate floor -- speech on the senate floor tomorrow. roll tape. >> he borrowed that phrase, it was popularized by josef stalin, used by mao as well, enemy of the people. it should be noted that nikita khrushchev, who folloge stalin, forbade its use saying that was too loaded, that it maligned a whole group or class of people, and it shouldn't be done. i don't think that we should be using a phrase that's been rejected as too loaded by a soviet dictator. stuart: well, kelly ward, who is running for jeff flake's seat, she's released a campaign ad on the subject. roll tape. >> the number continues to rise.

heinous crimes committed by illegals who were protected by obama's daca program. rape, murder, two young girls killed in a deadly hit and run. this is why president trump has demanded congressional action. so how are some arizona leaders planning to protect us? by rewarding illegal behavior. martha mcsally and jeff flake both supported obama's illegal daca program. both are ready to grant amnesty to nearly 800,000 illegals. stuart: all right. senate candidate for arizona kelly ward joins us now. are you fully onboard with the line on all the issues? >> well, you know, i am onboard for the america first agenda which is stopping illegal immigration, building the wall, securing our border, getting rid of obamacare, lowering taxes, making america first trade policies, decreasing spending, government. so as long as donald trump is onboard with that agenda, i, of

course, am 100% behind him. stuart: what's senator flake's standing in arizona at the moment? he's made a strong stand. he doesn't get along with president, doesn't agree with his policies. what's his standing in your state? >> last count he was at about 18% approval. so his brand of politics, the brand of politics of never trump and attacking the president and supporting daca and i'll legal immigration, is not flying with arizonans. martha mcsally is jeff flake 2.0. say one thing on the campaign trail, do something else in washington d.c. stuart stuart martha mcsally sang the national anthemç just the other night, i think it was. turned in a pretty good performance s. that a campaign plus for her? i'm not going to share the audio, but go ahead, comment on her singing talent, because it looked pretty good. >> yeah, i mean, good for her. we don't need a good singer, we don't need a past fighter pilot

in washington, we need problem solvers or in washington d.c. we need trained healers in washington d.c. and as a physician, you know, my entire life has been about taking complex issues, breaking them down into manageable parts and then putting them forward to get good outcomes. that's what i did in the arizona state senate, that's what i'll do in the united states senate. stuart: okay. what the president wants is build the wall, stop chain migration and stop the lottery. in return, i believe he's prepared to accept that dreamers stay. you comfortable with that deal if that was the deal that emerged? >> well, first and foremost, we must secure the border. we have to learn from our past mistakes. president reagan said that his biggest regret was granting amnesty and then trusting congress to deliver on border security.ç it didn't happen then, and it won't happen now, so we have to, first, fund and build the wall before we start any permanent discussion, you know, discussion of a permanent solution for the

daca population that barack obama created with his unconstitutional executive order. stuart: but you can't get that without democrat support. >> well, i mean, i think you can, and i think that democrats have to admit that border security is very important. we've seen statistic after statistic released recently about illegal alien crime. we've got to stop it. stater -- stuart: they're not going to accept, so would you shut the government down? >> everything has to be on the table. of course, i want to shrink government altogether, which is one of the reasons i'm running. not just respond to these democrat-created crises that they tend to bring up again and again and again when they try to force their liberal progressive agenda down our throats. we are going to fund our military, fund our essential government services, and, you know, we're not going to exchange it for amnesty for a population of;h(sjut to a milln people. stuart: all right, we hear you. kelli ward, thanks for being on the show. >> thanks, stu.

stuart: okay. boeing, oh, that stock's on a tear. it's up another $4 today, that addsto the dow industrials because boeing is a dow stock. how about casino stocks? wynn and mgm, both of them up. morgan stanley says wynn is its top casino pick and mgm is its second pick. as i said, both up. next, the teen who started a lawn mowing business and made $100,000 in a year doing it. he is next, and he's 17 years old. love that guy. [laughter] ♪ ♪ my "business" was going nowhere... so i built this kickin' new website with godaddy. building a website in under an hour is easy! 68% of people... ...who have built their website using gocentral, did it in... ...under an hour, and you can too. type in your business or idea. pick your favourite design. personalize it with beautiful images.

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stuart: our next guest is a high school student, and he's making, i mean, big money with a lawn mowing business. which he started with a friend. come on in, r.j. duart, the ceo and founder of green works. okay, r.j., we just told our viewers that you made $100,000 in one year. is that true? >> that's, like, a gross number. we worked kind of all summer and all year to make that, but, yeah. stuart: okay. so that was your gross revenues. how many other high school kids did you employ for your

business? >> at one point during the summer when we were at our peak we had 14 kids on one day, but typically we run about five or six full time. stuart: when did you start this? >> i started mowing lawns when i was 8 years old. stuart: and? >> and i just kindç of grew it from there, you know, as i kept going, it turned into more and more and then, you know, in 2012 i brought on a business partner, owen johnson, and then in 2015 we won the young americans bank business award, and it's just kind of gone up and up from there ever since. stuart: would you describe yourself as a capitalist? >> i, i would describe myself more as an opportunist. [laughter] stuart: excellent. >> there were really no other kids in my neighborhood mowing lawns, so i kind of looked where no one was going, and i did that. stuart: oh, so you are a monopolist as well. [laughter] what do you think about politics now? i'm not going to ask you who you might vote for. do you believe in spreading it

around, fairness, fair shares paid by all, or do you believe in profit, make it, accumulate it, keep it, use it, make your money grow? which side of the fence are you on? >> really, you know, we're out there to make money for everybody, and there's never been, like, a bottomç line we'e looking to get to. it's always just we're out there to go out and help people and try to do better in our community and show the community that, you know, we as young people can work really hard. stuart: okay. but, look, accumulate wealth -- [laughter] make it and keep it, and then it's liquid freedom. you're sitting on capital, liquid freedom. it's good. >> liquid freedom. stuart: liquid freedom! come on. which college are you going to go to? >> i'm looking at colorado state university in fort collins. stuart: that's okay. as long as you don't tell me it's berkeley, i'm fine with that. [laughter] >> it's not berkeley.

stuart: you come on back, because we like youngsters like you. you've got a brain on your head. well done, r.j., we'll see you again spoon. thank you, sir. >> thank you. >> good man. good young man. stuart: he'll get there. [laughter] amazon, hiring 2,500 full-time employees at a new fulfillment center in dallas, texas. amazon has about a dozen warehouses in texas, four in the dallas area alone. dallas and austin are among the cities trying tç land amazon's second headquarters. look at that stock, up $14. more "varney" after this. ♪ ♪

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stuart: happening shortly, the president meets, president trump meets the president of kazakhstan. they have a meeting in oaf office. what is the capital of kazakhstan? >> that would be astana. put that in your pipe and smoke

it. stuart: he is right. 15 seconds to neil cavuto. i will tell you this, the market rally stand. we're up 155 points. see what i'm giving you neil, it is yours. neil: i'm giving awe new new jersey governor sworn in a few minutes. phil murphy going after your wallet. wants to impose a tax on rich guys like you. he plans to detail that in his inaugural address. chris christie is history after eight years. the garden state has democrat in charge, full run of the table, controlling both houses phil murphy sees no indication that he has to slow down on a plan that might be damagingn