>> kevin kelly, great show. thank you so much. >> great to be here. it is cold. >> we had a nice, warm start to the morning. >> have aiate day, everybody. that ends it for us. "varney & company" takes it now. stuart,. stuart: yes, indeed. we are going to take another run at 26,000 on the dow. good morning, everyone. house stocks will open this morning. the dow will roughly go up 25, 30 points. and that will, again, bring us pretty close to 26,000. tuesday, we hit that mark. then retreated. was that the much-predicted dip? evidently, investors are now buying. so if it was a dip, it was truly short-lived. stocks are up at the open but how they closed, that is another story. no financial report is complete these days without bitcoin. it briefly dropped below $10,000. that is the dip.

it only struggled back to $10,001 as we speak. all right. politics, a mess and very hard to follow. conservatives say no to a government-funding deal because it doesn't give enough to the military and democrats are using the president's alleged vulgarity to ending the wall on the dreamers. friday midnight. big show for you. eric trump on his dad's health, physical and mental. more companies giving bonuses and here come the fake news awards. "varney & company" is about to begin. ♪ ♪ >> can you assess the president's mental fitness for office? >> he is taking cholesterol-lowering medication. he has evidence of heart disease, and he's borderline obese. can you characterize that as excellent health? >> do you have aase line for

this president? >> example to be as fit as barack obama was. >> what is your take of all the doctors and clinicians across the country who have said that in this president, they see symptoms of this, that, and the other? symptoms of dementia. >> does the president do anything at all right now in terms of exercise? >> do you keep a tally of how much golf the u.s. president plays. >> what? . stuart: well, it was hard to take. that was a white house medical briefing. reporters. ering's doctor about his mental health. how much golf he plays and how much ice cream he eats. eric trump is here. he's sitting right next to me. momentarily, we will ask him what it's like to have your dad's mental health question. just hold on a second. first of all, i'm going to get to your money. the market's going to open up again this morning. a nice, solid gain by the looks of it. we're going to be up what? 130 points. that will take us pretty close again to 26,000.

s&p, nasdaq also on the upside. bank of america, that profit was nearly cut in half. they took a $2.9 billion charge because of the new tax law. that stock will open virtually unchanged. here's a dow component. goldman sachs, they're down off the dow because it's a dow stock. and i'm going to broaden out our discussion of the markets and bring in brian, chief economist. is the rally back on track because we're going up another 100 points for the opening bell today. >> yeah. well, you know what? day to day, stuart, who the heck knows. the market moves for a whole host of reasons. let me tell you, we came into this year undervalued. the stock market was undervalued. we came into this year with stronger economic growth and better earnings.

now we have a tax cut and at the same time less regulation on business. so i think we're going to end 2018 a lot higher than we are today. my forecast is 28,500 on the dow. but day to day, i can't make a call. what i tell you investors is don't try to trade a correction. don't try to be some big hedge fund. just stay invested in america and trust the entrepreneurial process. stuart: okay. brian, so we go up on the stock market by the end of this year. >> right. stuart: how about the profit forecast. you were just starting out on the profit reporting phase. are we going to go up 10% year over year? 5% profit gain year over year? or what? >> yeah. more than 10%, stuart. i think 12 to 14%. you know, this year, analysts, we do this bottom up analysis;

right? so there's s&p -- there's 500 companies, a little bit more than that in the s& s&p 500. analysts look at each one individually. and then we add them all up to get s&p 500 earnings. and those earnings estimates because of the tax cut have gone up faster than at any time in the past decade. so what's happened is we've gone from about 10% earnings growth expectations to close to 14 for this year. that's the biggest increase in analyst estimates that we've seen in a long, long time. this is going to be a great year for corporate profits, which means, by the way, it's going to be a great year for jobs and a great year for wages too. . stuart: that is a very appropriate moment to break out of this discussion and leave it right there. a very bullish brian west bury. thank you very much brian. >> thank you, stuart,. stuart: you know, this is one of the indications, ladies and gentlemen, when i'm more interested in our next guest on politics than i am on the stock market rally because

who's with us? we told you earlier. eric trump. welcome to the show. >> well, brian could have done -- that was good. that was incredible. and, by the way, that's totally discounting the trillions of dollars that are coming back into the country because of the repatriation. that's totally discounting the fact that so many other people don't want to invest around the world because they don't trust so many of the countries around the world and they believe in the security of america. so when you actually -- stuart: he's more bullish than you are. >> put earnings reports with other things, we're going to have an awesome year. stuart: okay. >> we are doing everything right. stuart: i've got to ask you about that so-called medical press conference yesterday. the reporters accused your dad of dementia, obesity, how much ice cream he eats, on and on it went. how much sleep does he get? is he an early riser? how come he's in such good health? is he really in such good health? what's it like when your own father whom you know very, very well his mental she told

questioned. >> he's an incredible man. sharp as a tack. stuart: how does it feel? >> i remember half of the press core were on the campaign with us. they were traveling around. and he would be on his sixth speech of the night or the seventh speech of the day, he had gone to four different states and they were trying to keep up and they would be in the back corner half sleeping on a backpack; right? because he had run them into the ground. and they weren't the ones up on stage in front of 30,000 people giving a speech; right? i mean they were just following him and just reporting on him and they were run to the ground. and, by the way, there's not a single one of them. there's not a single one of them that they were living off red bull, living off five-hour energy, and they're the same people questioning his health. i mean, the man is unbelievable. he's the energizer bunny. he's incredible. i joke all the time that i've never seen him have a cold. stuart: well, how much sleep does he actually get? four or five hours? >> yeah. four or five hours and that's all he needs. but the man's incredible. you think you could perform like that if you weren't, you

know -- if you were, quote, unquote, using their term? . stuart: it must be good, though, you have good genes too. >> you heard what brian just said. he pricks the stock market at 29,000. all of these great things are happening to america. almost $8 trillion of wealth has been added to this country. unemployment is the lowest it has been. african-american unemployment is the lowest it has ever been. the vets are being taken care of. i mean, consumer confidence is an all-time high. jobs are coming back to this country. i mean, i could go on and on and on. and you have somebody asking if the man enjoys a mcdonald's cheeseburger like every other american. i mean, it's insanity. . stuart: but your father's demeanor in office, the language he uses, the tweets he puts out, his occasional harshness, his combative personality. >> people voted for that. . stuart: but politically. >> i don't know. i think it may actually help him politically. and i mean that sincerely. people didn't vote for a pc

perfect squeaky clean candidate. they didn't. they wouldn't elected him if they did. people voted for someone who actually gets things done, who actually delivers on his promises, as he has done the entire year. he has had the most remarkable year. everything that he said he was going to do, everything that he said was going to happen has actually happened. stuart: will he never be reigned in? >> i don't know. will he every once in a while use a foul word? that's all of us. stuart: have you ever tried? >> stuart, the notion -- stuart: mr. president. >> the notion that every person in this can you be lives in "la la land" and candy land and, you know -- no. he didn't run on being a perfect pc candidate. he's the first one to acknowledge that. that's what has made trump, trump. that's what makes him -- stuart: i'm going to press. you're his son. you must spend a lot of time with your dad, the president of the united states. have you never said to him

"you know, dad. maybe we could have done this differently. >> i'm sure i have, and i'm sure i have multiple times; right? stuart: what was his response? >> well, you know, the guy's larger than life. he's incredible in every way. he's done an unbelievable job. he delivers on promises and, yeah, once in a while he might be unpc, but that's honestly why you had 30,000 people showing up at rallies versus so many of the other candidates that were on the exact same stage who couldn't draw a crowd of four. i mean, it's what makes him the person he is. . stuart: well, you know, your dad, the president of the united states tweets me occasionally using my name occasionally. is he going to keep doing that? and can we use that as an excuse to invite him on the show? >> i tweeted you a couple of days ago and, first of all, he loves you. and, listen, you report the actual facts. you report when the market's doing incredibly well. you report when big companies are giving dividends to all their employees, you report -- i mean,.

stuart: i'm very much a supporter of your dad's growth program. the growth agenda because i think it produces prosperity and i think prosperity is the glue that brings us together. i would ask him to reign in to the tweets a little bit. not to me but the other stuff. >> certainly not to you. stuart: keep it flowing, please. eric, it was a pleasure. thank you very much. >> thank you very much. stuart: sir, thank you very much. thank you. now this for you. north korea suspected in a cyber attack targeting cryptocurrency. bitcoin dropped below $10,000 a coin today. our next guest says the north koreans will use cyber attack as a way to fight sanctions. yep, we're on that story. the new governor of new jersey in his first speech said he's going to bring progressive politics back to new jersey. $15 an hour minimum wage. free community college. but he said nothing about the state's massive pension liability. we're on that one too. but first, ice and snow

hitting the south. not used to it down there. big pile up on a highway in kentucky. you are looking at interstate 65. it was shut down. more bad weather down there today and flights canceled, some of them, at least, at atlanta's airport. back after this whcold sore.et you? grab lunch? cold sore. when a cold sore takes over, campho phenique's topical anesthetic plus anti-microbial action soothes pain fast. what's for dinner? meat loaf. campho-phenique on, cold sore pain gone.

. stuart: ge stock is down again this morning. the ceo maybe talking about breaking up the company after they took that big hit on insurance unit. 17 bucks a share on ge. now this. north korea behind the cyber attack on cryptocurrency investors. come on in, general tom. is this threat, this cyber attack threat bigger than maybe even nukes? >> no. it's not bigger than nukes, but it is certainly a significant threat that we've got to be very concerned with, stuart. but nukes is still the big issue that we've got to solve, and you've seen some indications with all three of

our bombers are now stationed on guam, et cetera. what we're doing to increase our credible deterrence. stuart: now, the pentagon with the wall street journal reports the pentagon is developing or planning to develop two new sea-based nuclear weapons. a, what are those weapons? and b, what kind of capability would they give us in the dispute with north korea? >> well, one's a cruise missile. and the fact is what you're seeing is we're going to make them smaller so that we can use them with less fallout that you normally get with the larger weapons. that means it is increasing our credibility in our deterrent role. and is particularly focused on north korea and iran. stuart: do you sense a war coming, general? >> i sense that the united states realizes the threat that a nuclear armed

north korea that can strike u.s. cities is -- and we are preparing to use all means necessary. economic, diplomatic, and war if we have to. we will not accept a nuclear armed north korea. stuart: but that is what we face, isn't it? we've got to make that choice. the nukes -- the north koreans will have the nukes. they've got them already. and they've got the missiles. we have to decide whether we accommodate that or stop it. which way do you think we're going to go? >> we better stop it because we'll never be able to accommodate it. stuart: will america use these weapons that we're developing to stop it? >> if need be. in other words, to protect seoul from that artillery if you use these small nuclear weapons, you can destroy all the artillery in the north with one or two of these weapons just so they couldn't strike seoul, that would be very effective. stuart: do you think america would do that? would america launch and use nuclear weapons in asia

again? >> i believe we would do that if it meant saving seoul. stuart: would we shoot first? >> i believe we still have that option. i know we still have that option. we have not given up first us u. stuart: i guess president trump has to make sure that the north koreans understand we will do it. you can't pull back from that position, can you? otherwise you've given yourself away. >> that's what credible deterrence is, stuart, and that's why it's extremely important that the chinese and the russians know this president means business. this is not the snowflake we had last time. stuart: okay. does the showdown come within months or years? >> i don't have that answer. . stuart: okay. well, general, you've got a lot of answers, and i pose a lot of questions. you're a tough guy, and we appreciate you being with us, sir. thank you very much indeed. >> thank you, stuart,. stuart: made you think. liz: wow. yeah. stuart: thank you, sir.

next case, senator cory booker, he went on a rant against the homeland security secretary saying she's complicit in the president's racism. i'm going to call that political theater in the extreme. look at that. another democrat says the gop will rue the day it passed the tax bill. that's not how the ceo of fedex feels about it. listen to this. >> i'm sure we're going to be doing a lot of things as a result of this tax bill because it was very, very good policy. we took legendary

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>> well, my guess is we will be responsive to the tax bill. >> . stuart: can i say that is a probably? >> you can say that's a probably. stuart: we've got it. we've got it right there. that was fred smith, ceo of fedex. almost committing to bonuses or increased wages for his employees after the tax plan. the democrats, however, oh, they continue to shall we say demagogue? says quote i think the gop will rue the day they pass the bill. liz. liz: i've been out sick for three days, and i come back and see that. and i say that's all you've got, democrats? you have 170 companies now reacting to the tax cuts with more bonuses, wage increases, 401(k) contributions going

up. and so, you know, i've got to say. the democrats seem to be underestimating the voters' intelligence. that's why i'm thinking term limits because they don't have to perform. instead, they're stepping up with rhetoric and they're demagoguing not based on any facts whatsoever. so what should the workers do? give all of that stuff back? . stuart: yeah. reject it. they don't want it. liz: it's like a bad seinfeld episode when nothing happens. that's democrats policy. ashley: but this is a huge gamble to liz's point this is all they've got. and what happens god forbid those crumbs turn out to be a huge boost to the economy? and we're already seeing signs that's happening. we know the job market is very healthy, wages are rising, people are optimistic, and they are spending. put all of that together with company profits and you have a economy that's humming along. stuart: three points. industrial production up almost 1%. very significant jump in industrial production, the latest reporting period. humanna, they are raising all wages within their company to a minimum of $15 an hour.

ashley: correct. liz: yeah. stuart: auto nation, they're doubling the contribution that they give to their employees' 401(k). liz: and now saying a third consecutive order of 3% growth in the gdp. stuart: booming economy, 170 companies giving bonuses and/or higher wages, what else have we got? ashley: well, when we get to the midterms, this is something they're really going to have to answer to the voters. when they say this is a terrible deal, it's awful -- by the way, those tax cuts will come into effect early next month as people see it in their paycheck. stuart: and they'll see that. ashley: and they'll see that. and the economy is picking up even higher. stuart: quick word the cell jean is in talks to buy juneau. that's why the stock is up 50%. don't you wish you had it? bank of america, says we will expect to return more capital to shareholders given the tax

act. whether that is a higher dividend or stock buy back, we don't know. they're going to give back to the shareholders. and the opening bell is coming up, and we're going to go up about 100 points. getting close to 26,000 again. back in a second two,that was awful. why are you so good at this? had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum -- just to help you improve your skills. boom! that's lesson one. education to take your trading to the next level. only with td ameritrade.

>> ten secsing og and we open this market this wednesday morning and bounce back at least mid-afternoon selloff. let me put it to you look that bang 9:30 eastern time up and run and we what's the post up 117 right 122 right from the bet go. 14 we're up 25,919. okay 80 odd upon the away but we keep on going. mow we're up 152 point up we're not expecting this. a gain of 100 maybe but 154 that's strong. plenty of green on listened side i have 26 of the dow 30 in the green on the upside a gain of almost .6%. how about the s&p 500some as we always say much more broadly based it is up about a hired third of one percent and nasdaq with awe of the technology companies right there up nearly a half of percentage point

strong gains across the board. who is with me? ashley webster elizabeth elizabeth keith fitzgerald and shaw m all right shaw perpetual bowl is rally become on track? >> i don't think there's my reason for it to be derailed yesterday was an odd circumstance like programs selling profit taking it high other will. we got about 26,000. i couldn't understand that and county see any important catalyst thoking the market down. so i was surprised by selloff yesterday. in fact we bounce back today is very positive so i think we got higher to go a lot higher. >> still a lot to come. still nothing stopping from market from going higher. keith join in as well please if market rally become on track? >> yeah, i'm with shaw. i don't think it ever got offtrack stuart i think yesterday was a glitch maybe short-term profit taking and everybody realigning thels and push high per a lot pasteur with no headline to derail this. >> look at the big tech name rite will ibm do upon the

unitessed health that's not a tech company but up, intel is up. goldman sacks is up. one wall street firm predicts that these companies i think one on the screen right now. these are the companies what when they repatriate all of the cash they've got overseas hundreds of billions of dollars -- that money will go into the stock. either as a buyback or extra dividend. keith that looks to me like a real plus for shareholders in these big tech companies. >> absolutely people of 100 years ago they focus on what the business would do next. what they fail to realize many today's financial market is that emergencying your share price is just as valid a growth strategy when it comes to investor return so you have to be on lookout for that. i'm a big an of buyback because heir good for shareholders. >> what is positively going to happen with a short-term money to come in and that's a long-term prospect to put money into plan and investment that will man over time but immediately it is going to go into byeback. >> i want to talk general

electronic as had in tbrks e there's talk of breaking up the company. do you think that's going to happen, would you who will buy the pieces? >> yongsdz i don't understand this poorly managed. i think jeff i don't think did the right thing and should have started breaking up a lot sooner. i don't know that breaking it up now will be good because pieces are so large. i don't know who will buy private firm and in asia or europe i don't know where it will go. >> old line insurance business wow -- who thought that was still out there. but you know problem with ge when it breaks itself up, it bought the french power company up about two years ago. back then market value was $260 billion and lost 160 billion in market value since. so the breaks itself up your point is well taken who buys it. honey well united technologies what is real book value breakup value of all of this asset? >> keith there's got to be a lot

of people who say this is general electric. one of the great companies in the united states of america. surely it's a buy that $17 a share sure isly that's a bottom. are you in that club? >> no way. people said the same thing about enron and same thing about about eastern airlines where is pan am today i could go down laundry u list of companies that no longer exist. >> because swatches book value. see it all -- >> i find it hard to comprehend the idea -- ♪ very hard to comprehend idea that imrks e will disagree. well in the case of what have you done for me lately. >> industrial businesses that aren't growing some way that imroat and normal stuff and internet stuff anything tech related. out of o step. whnch i'm sitting here dismisses general electric. yeah, yesterday company. all right stop laughing keith. [laughter] bitcoin, right now, it is worth give me quarter just under --

below 10,000 again, and here's a background story. north korea is apparently behind a new cyberattack on cryptocurrency investors more reason to stay away keith, what you ?ai >> is anybody surprised? really, people are investigating in this thing because they don't trust the government what this regulation or government attack they bail out. this is a cult the technology driving it, that's the valuable part and nobody can seem to separate the two. >> on a big block chain and -- or bit coin, and still a currency. >> let me get you point absolutely you're right, and block chain had and separate witness, ibm look at this -- that small, up again they're into the block chain and they're into it. the technology teaming up with the shipping line, they're going to have a block chain based platform for global trade. and look at the stock it was just a -- week ago was it was in 150 now

168 and going up. block chain worked for them. >> work for everybody and part of our lives, inte grat part of our lives it is bitcoin is definitely different animal it's its own class and trading that is all it is and speculative vehicle. >> hello block who would have thought a headline like that. i can't believe it i have a big number for you. shoppers spent a record 108 billion dollars online over the holiday i believe they'll be defined -- november through then 108 billion up nearly 15% year over year 52% of that done on a mobile platform a tablet or smart phone which is amazing. and cybermonday by the way, generated by itself 6-.6 billion which was the biggest shopping day ever. >> good lord. so you know where does it go from here, just one way. >> all but up. upwards.

online shopping? >> smp else was doing shopping for me but i shopped online. yes i did there's a piece in wall street journal shaw i'm reading. the antitrust case against america's technology as in amazon. going to break them up. not now. stock is at 1300. at spoict mt future a case ahead. i don't see the near term i don't see it under republican administration but some point five, ten years down the road a case will be made. right now in terms of anybody who would like to see them broken up is great for it competition they're bringing prices down. >> what's the case? >> there's no case. >> i haven't read the article. i should -- >> it is about price and amazon lowers prices so what's the case? >> networks that these companies are creating are so huge and so vast, it is very hard for competition to get in, they own those networks? >> 13,000 small businesses operating on its site. plus i think it is actually way more than that. but ten times that. so i don't seat case. you know what, apple excuse me amazon to break itself up, they need that cloud computing

business to cover i the loss in its retail operations so i sill don't see. i see all of these breakup amazon stories so what's the case for it? it's palls apart. amazon is like ecosystem. >> keith you've been a big sporter of amazon would you buy it at dlor 1300 a share? >> no question i would recommend buying it at this price even now there's so many businesses inside what their doing especially when it comes to artificial intelligence using big data i don't think he's companies have begun to hit their stride yet. breaking them is not what you want to do. let the market handle that pungs. in anybody remembers myspace and facebook look who won same thing with a big guy. better mouse trap out there somebody in a garage is working on it right now and it is going to come to market. [laughter] >> i'm astonished by this saying good-bye ge, hello block chain, forever -- and a amazon is at 1300 per share. how about that check that big

board up 134 points as we spoke that means we're still what -- 75, 76 points away from dow 26k again. high per profits that pus bank korp booked 900 million tax bipght because new tax law not goods enough. down 1.5%. al they report after the bell. they traditionally start the industrial companies with their reporting ill call it 56 this morning. bank of merck their chief says he expects to return more money to share hold percent after the tax bill. okay now stock is down. but does that mean return more capital to shareholders does that mean a bigger dividend or stock buyback does it? >> i think it starts with a stock buyback and dividend down to height. but it is much easier to apply money into the stock buyback to lift the share price also to create earners per share to grow upon that this is what market likes to see so no question. >> next one is nestlé swiss

company i believe swiss right they're selling, selling their u.s. candy business to italy's they're going to be charging about $2.8 billion now nestlé make it is a raft of candy from butter finger to baby ruth i should say. and make nutella you have to have that stuff really cool. big deal right. >> it is a big deal and we were talking about this in the commercial break change of consumer would you not say -- behind this, perhaps to more healthy snacks as opposed to your babe ruth and what have you which is still great by the way. but maybe not so healthy. [laughter] >> whatever you say. ask president trump. [laughter] he's in great health you eat baby ruth who dare ask that questionsome government shoutdown, could be looming -- midnight friday. if. happened would it be negative for the market shaw? >> of course it would be negative had i don't think it will happen. but shutdown is always -- >> why would it be theg? >> prospect is what it means for u.s. debt and last time we have it shutdown. >> the fact that they were

closed for half a year. in the dip but yes. actually it is probably a good opportunity but it i think if we get this and market is digest it they sell off a little bit they won't bo down but likely event because that is happening in the past with a near threat or did shut down temporarily. last word we have a government shout down keith what happens to the market? >> temporary blip on radar canes have already pirged o out that this is a budget for it and they're moving ahead. >> let's see now we have dismissed general electric and dismissed government shut down we're all for block chain had forever and ever and ever and we just love amazon. what it is about 290 times earning. not bade say. shaw thank you so much gentleman goods stuff. check that big board we were up 130 moments ago. now we're up 95, 25,888. and in our next hour, jonathan big name in the money business. he says that market is

underestimating tax cuts he says, time to buy. 0130 eastern on this show. also nick, he joins us from the white house. and i'm going to ask him will anyone miss a paycheck if the government does shutdown? next, we need to deal request cory booker's rank during a hearing on home lapd security. he taught secretary chief and did it theatrically as you can see.

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>> back over and back above 25,900. look at ford motor company, look at that down 4%. they're cutting their profit

forecast. nicole come on in please. why did they do that? >> the company is in midst of a rebound first of all facing higher cost which all automakers are and metal and aluminum but the bigging picture and the analysts are looking at the three big guys right gm fiat chrysler both of which outpays ford stock in the last 52 weeks about that -- it is not airtight o, in fact, that they're missing on their structure a little out of sync with revenue that ford will likely see the cut the number of passenger cars and they're beginning to boost up to developing more of the trks more of the suvs to get more in line with what people want. >> hob that nicole thank you very much indeed. now this -- senator cory booker -- democrat, new jersey, wow he went on a rant against homeland security secretary kristin nelsen you have to watch this. >> what went on in the oval office is profoundly disturbing to me. when oval office rhetoric sound

like social nrminging we know from a human history that dangers of that. referring to people from -- african countries and haitians, with most violent vulgar you don't remember, you can't remember the words of your comangder in chief. i find that unacceptable. >> he also said he cried tears of rage when he heard what the president had allegedly said all after secretary she said she didn't hear what the president said she didn't hear him use that -- vulgarity in oval office meeting. steve hilton is with us. host of the great show and it is a goods one the next revolution on the fox news channel welcome back steve. >> god to see you i want your reaction -- >> i was really happy when i heard that we were going to be talking about this. this morning because when i saw that, i just was -- i thought so angry with the way e he behaved it was rude, aggressive bullying he thought

he's being passionate and so on but that is not about passion or value but ego it's about narcissism and most of all about his bid for it the presidential no, ma'am nation at the next presidential election. >> he wants to run for presidency. that's what it is all about. look at the picture and it is so rude. >> i think democrats are using the president's alleged vulgarity they're calling him a race cyst and they're using that as a way to -- stop or get their way on immigration. that's what i think. yousome >> i completely with that and they're trying to -- for this president to fail he had success with tax reform that's good news for america and american workers. bad news or for democrats. came to the midterm elections they toangt want another legislative success for president trump because that

means that they are going to again bad muse for them. so they use this as execution to say well we can't deal with this guy we can't do immigration deal. >>nothing wrong that says builda wall end chain migration and lottery system in return for okay, the dreamers stay that's a kind of compromise deal i think most of the country would accept. >> absolutely is right. it completely sensible. and it is a -- if they actually hold up the action to protect the dreamers, because they want to block the war their through colors will be revealed but it's all about politics for them they don't really care about the dreamers when they really care about is blocking president trump's signature promise. >> and hispanic vote. great show by the way. thank you so much. next revolution we want you out there in california joining us all of you come to sees. >> what? >> come on the show do your show from california the next day. >> let's do it. [laughter] >> okay. >> open invitation. come if you wear a suit and tie.

>> my god tie as well. [laughter] now you're pushing. thanks for joining us, though, appreciate it. back to the market oh, not too good we were up 130 just few minutes ago now we're up 74. 25,l 67 we'll take. okay still ahead close friend of angt anyone scalia wrote a book about him he said scall yafs a fan of president trump. the author joins us about 11:45 eastern this morning. on this had program --

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duck: quack! call to request your free decision guide now. because the time to think about tomorrow is today. >> an xci ashes officer arrested suspected of spying for china. all rise judge napolitano is here what's he allegedly cone itsome >> he's arrested for possessing materials that she should have verngderedded when he left c are ishes a in 2007 and materials are highly, highly classified. they're ranked the upper level of top secret, and they contain names kreases dray and contact information of human intelligence presently or formerly on ground this china. written say formerly is because at least one of the people has been kill. that's the basis for the arrest. the information took it place listen to this, the fbi had had search warrants tha went through his luggage in two different

holeses. one in honolulu and one in xangd ya, virginia, and this trained in deception ci arks agent a former agent did not know it. so the the purpose of this stated reason for the arrest is possession of this material but the real thing that they're after is whether or not he actually passed this on to the chinese government because -- american intel live human intel on the ground had china almost completely dried up in the last two years of the obama administration. almost totally dark. and now the government is wondering is this because there was a spy among us. is this because one of our own people helped identify our intel asset on the ground to the chinese government which similarly executed them. not a trial just -- >> but this that's a huge loss f intelligence on the ground. government does not know what

names he revealed the government may -- does not know with whom he may have collaborated. and if i said the initial charge is for wrongful possession of the document that's just the instrument to get him arrested. now he's in custody and they'll develop more of a case against him. >> what are implications of the fact that the man arrested, the former cia guy is aaron shan american of chinese ethnicity. >> bad complications for the absolute need of american intelligence for asian americans to be part of the team to work for the team, to be able to recruit people who look like they sound and walk among chinese government corridor to provide information back to us it is very, very bad and good that he was caught but the damage could have been we don't know catastrophic in terms of the loss of human life and loss of informs people who have

provided. j thank you judge serious stuff. >> something happier in the 11th. i don't think so. i'll tell audience what you're doing in the 11th. but first i'll tell them had been had. ing progressive politics aring bag in new jersey new governor wants $15 minimum wage free community college and wealthy has to pay their fair share. my take on that coming up. and now when judge does return in the 8:00 hour we're talking about i.c.e. 1500 illegals in the bay area. now, that's a sanctuary state showdown . that's what we're calling it. and we will be back in one minute. . . . .

stuart: blue states in deep financial trouble, new york, california, new jersey. these states are big government states. very high taxed states. lots of regulation. frankly these states remind me more of europe than america. if there is new sheriff in d.c. he is all for cutting taxes and regulations too.

donald trump is a huge direct challenge. the blue states, they're not responding well. new york governor cuomo is going to court. outgoing california governor jerry brown, says food luck, baby to his successor. the new jersey governor leading the blue state quote, resistance. democrat phillip murphy says new jersey will be the state that leads the nation in progressive policies. we will resist ever move from president trump he says they will make $15 an hour, minimum wage, free community college, he will protect illegals and make them eligible for college aid. okay how how will he pay new jersey's huge 202 unfunded pen shun liability for the retired government workers. no mention of that. that is precisely the same problem that plagues other blue states. illinois, rhode island and california and many more. these blue states have learned nothing. their big government, high-taxed

policies have produced enormous financial programs. the response in new jersey keep pushing the progressive button. clearly it will not work. this nation is divided over many economic things. bottom line, red states win. blue states continue to lose. the second hour of "varney & company" is about to begin. ♪ stuart: happening this hour house speaker paul ryan hold leadership conference. with possible shut down on friday night. any headlines we'll bring them to you. >> we have a gain of 85 points. much we're up to 25,087.

only microsoft, i own some of it is up $89 a share for microsoft. b-of-a, bank of america sea yo says he expects to return more money to shareholders because of the tax deal. whether that is a dividend increase or stock buyback we don't know. that is what he said. the stock is down 2%. bitcoin is below $10,000 a coin. 9600 to be precise. that is a selloff. north korea apparently behind a new cyberattack on cryptocurrency investors. that does not help bitcoin. back to my editorial, top of the hour, on blue states, this is what the new new jersey governor had to say, phil murphy. this is what he said in his inauguration speech. roll tape. >> a stronger and fair irnew jersey insures that the wealthiest among us pay their fair share in taxes so working -- [applause] so working and middle-class

families can keep more of their hard-earned money. [applause] stuart: okay. joining us now steven sweeney, new jersey senate president, a democrat and you are i believe leading the charge for the rich to pay their fair share. don't you think they pay their fair share now? >> stuart, there is no question the wealthy pay their fair share. 1% of the people in new jersey pay 42% of the income tax. so no one is not saying they're not paying a decent amount of taxes right now. stuart: well are you going to tax them some more? >> i told you, stuart, something i was looking at, i put a pause to it. i'm really looking at right now new jersey, i'm really looking in new jersey right now relooking the way we do taxes period. really completely undoing the system putting it back together. we're paying too much. we're paying too much in taxes we don't need to. the money is there to fully found our schools.

we're not spending it properly. stuart: how will you pay for the 202 billion-dollar unfunded pension liability for retired government workers? how are you going to pay for that? >> stuart, listen, there is going to be a lot of difficult discussions that have to be had with the unions. you know i did that with christie in 2011. it wasn't pleasant. we actually did it without really talking. we just did it but incoming governor will have to have a conversation how we move forward. the answer is not just to do taxes because you know, we can't tax ourself out of this problem, stuart, the more we tax, the more people leave. my goal is really to reevaluate the way we run government in new jersey. we have too much of it, stuart. there are 600 school districts. there are 565 towns. there is so much money just hanging, low-hanging fruit if we decide to recreate ourselves. but they will be the tough decisions. but we'll really at a point where we have to change.

stuart: i agree entirely. we're facing a dire situation. why don't you reverse course. why don't you think in terms of deregulation. why don't you think in terms of lowering taxes? because if you don't, you can't grow. if you can't grow, you can't pay those pensions? >> stuart, i have been the biggest proponent of deregulation since i've been in the legislature. i've done legislation after legislation to try to unravel things. what we do we have tendency to pile on regulatory process only costs more money and doesn't by you any safer environment or any safer community but more importantly, stuart, we play plenty in taxes. it is the way we're spending our money and we really need to take a relook how we run government. it is really that simple but sounds difficult. stuart: steven, from your governor's inauguration speech doesn't sound like there is any changing course except to become more progressive. $15 an hour? you know what is happening to

jobs across the country when you raise the wage to $15 an hour. you have fewer workers employed. you will give free community college. how are you going to pay for that? >> listen these are things the governor had on his agenda. minimum wage increase is something, high priority for me too but, stuart, it is the way you do it, how you do it and how long it takes to get there. everything is the devil is in the detail. i looked what happened in washington an opportunity to relook the way we do business in new jersey. we don't do it well. we need to recreate it. stuart: you are facing exodus of 1%. you know you're facing that. if you're in the 1%, good, strong income earner in new jersey. you didn't get a tax cut. you got a whopping great big tax increase. those people are going to leave. i don't know what you will do about that but you have to do something. >> we'll definitely do something, stuart, more

importantly we'll reduce costs and reduce our tax burden. we pay enough. we're not running it properly. it is time to have the discussion. i told people to blow the system up to recreate it. but recreate it a more affordable way. i'm willing to do that. i created created a task force h economists and tax experts. it is bipartisan group. i expect them to come back to me with recommendations how we move the state forward. we don't look to tax more. the problem is, taxing is one of these things, you tax more, you lose more people, so you have to tax more. it's a death spiral. stuart: okay. >> so we have really look trying to change the way we do business, okay. we hear you. stephen sweeney, great man, great guy coming on the show because you know i'm vigorously opposed. >> you're a new jerseyian. we don't want you to leave. we don't want you to leave. stuart: a huge tax increase on

me. i don't like it. >> no we're not. we'll fix it, stuart. we'll get through this day. stuart: is that a promise? >> yes, absolutely. stuart: okay. >> didn't we eliminate the estate tax? stuart: that is irrelevant. rich people don't pay the estate tax. you know it. >> we did, we had an estate tax in new jersey. doesn't exist anymore. stuart: that is a nice move in the right direction. come back and see us again. tell me what you're doing to keep me in the state. stephen sweeney, thank you very much indeed, sir. appreciate it. >> thank you. liz: brand new report out of new jersey office of the chief economist sass it lost more than $32 billion net from 1993 to 2016. there was never a year when new jersey came out ahead. most of those people 200-k plus leaving the state. the state of new jersey, more than $32 billion. stuart: thank you for adding that, lizzie. i wish i had the ammunition. liz: new report came out from new jersey itself said that.

stuart: on top of it, we like that. thank you very much indeed. a new article in the "wall street journal." it raises the question of whether big tech companies like amazon, facebook and google should be broken up on antitrust ground. joining us now, gene munster, managing partner at loop ventures. gene, i don't know how you apply antitrust law to these big companies. it is very old law, it works on old-fashioned companies. do you approve of the idea in the first place of breaking up amazons, googles, facebooks of this world? >> definitely not, stuart. i think what you will see here is some more regulation in terms how they do business. that is the potential risk but the idea of breaking up these companies is bad for the consumer. let me quickly explain why. these antitrust laws were for things like the oil industry and at&t when there wasn't a ton of

innovation and the standard of care from the regulators is the consumer worse off because of these monopolies essentially? google with 90% search share. the answer is i believe that the consumer is not worse off because they get free products from these companies. now advertisers are paying for these services. but if the standard of care is truly as consumer bit off, give another quick example, amazon, because they have a good market share in the e-commerce piece that allows them economies of scale that basically get you cheaper shipping. and so i think that the government went and broke these up and consumers paid more for shipping there would be anarchy. stuart: we hear you. by the way, i'm looking at my little monitor here. microsoft is up a buck 20 at 89.52. i thought i would chuck that in there because some of the other big techs are down. i have more for you, gene

because i know you're a big fan of tesla. elon musk is making a new promise about using new technology in the model 3 set dan. i have his new tweet. you will be do pretty much anything by voice command. the software team is focused on core model 3 functionality now. they'll will be done soon. then we will add a lot more features. hold on, gene, tesla is having a lot of producing these model 3 cars. he is again grabbing the headline by looking way down the road saying look what i have got for but we don't have it now. >> that's one perspective. will thompson, one of our colleagues just got back from the auto show. interestingly tesla didn't participate in that. this plays into the story today. tesla doesn't see themselves as a car manufacturer. the reason why i want to mention that they will i believe fix that production problem. they have made some progress against it. but when you think about what they're talking about, voice

today, this is the same perspective that google and amazon, microsoft is taking on with the digital assistants to bring voice into the car. you're not seeing that from other car manufacturers. this is a great example. we can debate timing of production ramp. what i'm more interest in are the features making driving experience better? i clearly believe they will do that. so i think this is, i'm okay with it. stuart: looking into the future, this model 3, you would be sitting in it. you're not driving it. there is no steering wheel, no pedals, voice control, turn right, turn left, speed up, slow down. is that it? >> when we hit autonomy, five years away, you will not hear any voice. set the temperature of car, to 73 degrees i want to listen to, you pick the music genre,

stuart. that is probably what voice will be used for, not turn left. stuart: my house, gene, i have nest things. one of the dial things. ashley: thermostat. stuart: i almost have taken a hammer to it because i can't get it to work. you're telling me a couple years down the road i can get into a car make it 73 degrees, it will happen? i'm a skeptic. >> i would be happy to come by to give you tech support on your nest. we'll bet that figured out. you will love it. stuart: whatever you say. munster, you are all right. see you again soon. >> thank you. stuart: check this out. terrific video. meteorite exploding in the sky near new haven michigan. it was so powerful registered 2.0-magnitude earthquake. tv stations received hundreds of calls from viewers to report the phenomenon. the media peppering the president's doctor on everything from his mental health to his

golfing habits. i didn't like that. reporters going at him about his health. unfounded rumormongering. i really thought that was low. a shutdown looming on capitol hill. what could it mean for paychecks or implementation of tax reform? mick mulvaney, the president's budget director, he will join us later. you're watching the second hour of "varney & company." ♪ dad promised he would teach me how to surf on our trip. when you book a flight then add a hotel you can save. 3 waves later, i think it was the other way around... ♪ everything you need to go.

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stuart: hey, that rally is back on track. will you look at that? up 135 points. 25,937. dow in the green going up. we like to check gold, all the markets. $1333 an ounce. also around $1300 a share is

amazon. just below 1300. adobe analytics that shoppers spent record $108 billion online over the holidays, november and december. of the over all, 108 billion spent online on the holidays. to the white house doctor who was grilled by reporters on the president's health. watch this. >> can you assess the president's mental fitness for office? >> he is taking cholesterol lowering medication. has evidence of heart disease, and borderline obese, can you characterize that as excellent health? >> a waist america meant for the president. >> how the president can follow his predecessor's example to be as fit as barack obama was? >> what is your take of all the doctors and clinicians who said in this president they see symptoms of this, that and the other. symptoms of dementia? >> does the president do anything at all in terms of exercise? >> do you keep a tally how much

golf the u.s. president plays? >> limited to one scoop of ice cream now? stuart: do you believe that? i was watching that. i watched it all the way? ashley: bizarre. stuart: bizarre, thank you, good one. trump for president advisory board member harlan hill join us now. what was your reaction. >> i normally smile on the program when you come to me, this is not funny, it riley is not. obama was the chain-smoker. there are famous photos of him smoking outside of the oval office. when hillary clinton collapsed in the final days of her campaign on 9/11, you know it, was taboo for anybody in the media to discuss her health, to discuss her mental fitness. stuart: it was, you're right. >> nancy pelosi slurs her words regularly in interviews and it is considered taboo to even bring that up in polite conversations in the salons of washington, d.c. so there is just a double standard here that is quite, it

is quite frustrating because what they're trying to do is nothing new. they have been trying to question the president's mental fitness. stuart: they are. >> and his health for quite a long time and it doesn't translate to any votes. i'm not sure what game they're playing here, other than trying to get in the president's head. it is not going to work. stuart: on the show this morning sitting in that seat was president trump son eric. i asked him about the medical press conference. he said look when my father was on campaign trail making six speeches aday, those same reporters were in the back of the plane asleep, they could not keep up with my 70-year-old dad. that is telling statement. >> absolutely. stuart: i have breaking news. i have this written right. a source with knowledge of the investigation tells fox news that steve bannon has reached an agreement with the special counsel's office to do an interview rather than appear before the grand jury. so bannon will be interviewed bit mueller team.

that is what just had breaking there. any take on that one? >> you know, bannon is choosing to cooperate with the establishment that is hell-bent on destroying this presidency. i believe that it is because he feels like he is no longer a part of the movement. he has been ostracized. it is his own doing. i never seen anybody hit the pavement so hard as steve bannon. he is totally, completely irrelevant to the movement. he thought, he flew too close to the sun. the president is undisputed leader of republican party in this era. it is not steve bannon. steve bannon doesn't even have a job anymore. what does he do, run into the loving arms of mueller and democrats looking to destroy what we spent so long building. stuart: all i have to do is just chuck you some red meat. >> yeah. stuart: thank you very much. >> thank you. stuart: let's go to paul ryan talking about the shutdown and tax reform. >> all because of tax reform. i was at my son's basketball game on sunday.

uaw worker from the chrysler plant in belevedere, said this would get me $4,000 in my paycheck. i thought this was for the rich. this is me now. it is working. at the heart of this law is really a lower tax burden for american families who are going to start seeing this relief very, very soon. last week the treasury department announced it ad justed the amount irs take out people's paychecks to account for this law. it is estimated that 90% of wage earners in america will experience an increase in their take-home pay starting as soon as february. let me just say that one more time. 90, nine, zero, 90% of america's workers will see increased take-home pay as a result of the tax law starting in february. this is incredible. the typical family of four earning the median income of $73,000, will see a tax cut of $2059. that is more money to pay down the mortgage, save for rainy day

fund or take your family on vacation. this is real relief to real americans especially more than half of whom claim and show that they're living paycheck to paycheck. another huge benefit for american families it is lower energy costs. where i come from, jason comes from, it is pretty cold right now. your energy costs are very high and what we're seeing all of these utility companies are now saying they're passing through the tax savings on to the rate-payers. so if you're low income, if you're living paycheck to paycheck, if you're having a hard time heating your house, this is real relief that is real tangible. so we're seeing evidence that the tax bill is working some ways. lower energy bills, bigger paychecks, more jobs, more bonuses, maternity leave. this is exactly why we did this so we could improve people's lives. one more point and kevin mentioned this, according to the pentagon just last year we lost more american military members

who died in training accidents than we did in combat last year. we have combat across the globe. these deaths may have been preventable, and it all points back to the deterioration of our readiness in our military resources. funding for modernizing the army has been cut in half in just the past eight years. navy sailors are putting in 100 hour work week and less than half of their aircraft are capable of flying. the number of fatal accidents, those resulting of loss of aircraft for the marine has doubled over the last decade. we have to reverse this trend. we have to stop putting these lives at risk, and we have to fix our national security. and that's why it is just, its baffling to me the democrats would be willing to block funding for the military over unrelated issues. i used to think that the democrats thought the schip was bipartisan. that children's health insurance is bipartisan bill. this was written by republicans

and democrats. we passed this extension twice this year. we'll bring it to the floor this week because real deadlines occurring this friday. real deadlines that occur this friday are our men and women in uniform and children's health insurance that many states will run out of money. that it is why it is unconscionable would block funding for military or cut off funding for states that will lose their funding for chip playing political games and tied to unrelated issues. questions? stuart: now that was fairly forceful presentation by speaker ryan outlining the benefits of the tax cut. go. ashley: i think there is one thing the republicans are absolutely terrible about and that is messaging. paul ryan is good. he really needs to get into the face of democrats who call this tax reform inconsequential, pathetic crumbs, armageddon. it is clear that these tax cuts and bonuses and all the knock-on effects are having a tremendous

impact. to his point, he told a story of somebody got 2, 3, 4,000-dollar bonus, i'm one of the rich. stuart: there you go. ashley: they need to do a better job making that point. liz: steny hoyer said i think the republicans will rue the day when you pass the tax bill. i don't know how you say that when you have two million people enjoying benefits of tax bill with higher wages bonuses. stuart: you updated the companies? liz: 170 companies now passing along tax cut in way of worker benefits and the like. stuart: autonation doubling employee contribution to 401(k)s. humana $15 a minimum wage. liz: democrat party is not performing. all you have got is rhetoric. all you got is words. there are policies. i wish the people, media going after the president's health, they would spend more time asking questions about policy. stuart: we have the perfect guest with us right now. it is congressman andy biggs,

freedom caucus member, republican from arizona. congressman, would you join us in wanting a more forceful presentation of the benefits of the tax can cuts? a more forceful get to the democrats say what are you thinking describing this as pathetic crumbs? i guess around this table we want more force. we want more juice. what say you? >> yeah, i agree with you. we need to be out there to really hammer this home. we do it best when we tell stories of our constituents. in reality i can't go anywhere in my district without people saying yeah, i have got a bonus or i have a bonus coming. small businessmen and women are telling me we're going to expand our business. that is the message. we too often sit back and say, well you know, not pathetic crumbs. this is one where you can bop the other side right in the nose say you're wrong, you're clearly wrong. we're going to be going into -- this is great news pause i think

we'll move up to just about 4% gdp growth this next quarter. i know that is too wonky. instead talking about, talk about you as the american people, you're seeing the benefits and you will continue to see the benefits and that's the story and that defeats the other side. stuart: congressman, would you just hold on for a second. senator jeff flake is now speaking on the senate floor about president trump. i'm going to go to him briefly. let's listen to what he has to say. >> power that would weaken it. in this effort the choice is quite simple. in this effort the truth needs as many allies as possible. together, my colleagues, we are powerful. together we have it within us to turn back these attacks, to right these wrongs, repair this damage, restore reference for our institutions and prevent further moral vandalism. together united in purpose to do our jobs under the constitution, without regard to party or party

loyalty, let us resolve to be allies of the truth and not partners in its destruction. it is not my purpose here to inventory all the unofficial untruths of the past year but a brief survey is in order. some untruths are trivial, such as bizarre contention regarding the crowd size at last year's inaugural but some untruths are not at all trivial such as the seminal untruth of the president's political career, the off the-repeated conspiracy about the birthplace of president obama, also not trivial, are the equally pernicious fantasies about rigged elections and massive voter fraud which are as destructive as they are inaccurate. to the effort to undermine confidence in the federal courts, federal law enforcement, the intelligence community and the free press to most -- stuart: that is senator jeff

flake, republican from arizona on the senate floor right now with a litany of attacks on president trump. with us now, still congressman andy biggs, republican from arizona. i'm sure you were listening to that, congressman. what's in the water in arizona with you republicans? >> i don't know, stuart. it is very interesting but i will tell you this, arizona remains firmly in the trump camp. the polling in arizona just, i just saw recently they support president trump probably more than they did at the election day. why is that? it is because he made campaign promises. he is trying to deliver those campaign promises and the only place where he is not getting support quite frankly is in the united states senate because of their 60-vote rule, they won't bring a lot of our bills we've done to further the republican-trump agenda. they are leaving them on the shelf. why know why we're focusing on personalities here. we should focus on policy and procedure and let's get this stuff done because that is what

the american people want. that is what arizonians want, i can tell you that. stuart: are you in favor of the following compromise on immigration? build a wall, you end chain migration, and you end the lottery. in return you accept that the "dreamers" can stay. now that involves compromise on both sides. you're in the freedom caucus. would you make that compromise? >> i personally would not make that compromise and i'll tell you why. we were promised promised in '8f single amnesty a million people. we would get increased border security, internal enforcement, et cetera. we didn't get, but got five million people within 10 years. we were promised this when we had a wall built to be built and funded under president bush. the funding got pulled. never got the wall. i firmly believe that the promise was that we would build the wall. you keep your campaign promises. that is what people want. so until i see funding, the will started and completed, i'm not

willing to give up on amnesty of any kind. by the way nobody wants just daca by the way. they don't want daca. they want far more than talk characteristics we're all at loggerheads? there is no deal at this point on immigration. congressman biggs, thank you very much for being with us, at very poignant time. we appreciate your appearance today. >> thank you, stuart. stuart: on reset where we are in the markets. still a nice solid rally, up over 100 points for the dow industrials. we're about 107 points away from 26,000 again. the big techs are all down with the exception of microsoft which is real standout today. it is up a buck 28, 1 1/2% at 89.63. the rest of them, big techs are on the downside. so, our next guest says, this is important here, the market is understilting the impact of the tax cuts. he is very bullish. he is jonathan gulem, credit suisse equity chief

strategist. you're an important guy. >> i don't know about that but market is going higher. stuart: you're running contrary to a lot of other guys on wall street. you're saying look, these tax cuts are a very big deal. result in much higher profits for corporations and means another big rally for the market? >> our estimate you have 8% extra earnings just from the tax cuts independent of the if the that the underlying economy is is real good and driving proper growth already. less than half of that analysts have that in their stock price is. stuart: there is a way to go in terms of how much money they will really make and what impact from the stock market on that? >> 100%. stuart: earlier this morning, economist brian wesbury was on the show. he said look, corporate profits reports will show roughly 13%, 14% up year-over-year. >> right. stuart: are you in line with that? >> we're estimating it's a little bit stronger but there is a couple of things in the numbers that make the underlying

long-term trend right now at 10 or 11. so oil prices -- it's, what is so important this is the last quarter before you have a strange comparison of, with the new tax plan versus the old. so in six months from now it will be really hard to know what's real economic growth and what's taxes. so this quarter is particularly important. stuart: would you continue to bet on big tech? >> i would. stuart: you would? >> here's the real key. these companies are delivering outperformance not because their valuations or pes are going up. because underlying earnings are comming in so much faster than the market. they're not expensive. they are companies delivering better growth than others and that is their big story. so i think people make a mistake, when something goes up a lot, it is becoming more expensive. if the move up is driven by earnings, it could actually be cheaper and rising. i think that is really what is going on. stuart: are you an outlyer on

wall street? i don't hear that often from the establishment guys on wall street. >> last year we had 10% expectation on market. i was way higher than the market. and we were right. this year i'm 12% expectation, on strategists like myself i'm on upper part of the pack. people are seeing better economics, upside from the tax change and avalanche much people changing their more bearish tone and jumping on. so surprisingly i'm more bullish and there is a lot more company in that camp right now you don't pick individual stocks? >> i don't but focus on sectors what drives them. stuart: big tech, the five big tech companies you like them, by not necessarily all of them but you buy big tech even though at these astronomical levels already? >> yeah, and again if it is driven by earnings i'm all-in, that is the case. if it is simply valuation like in was in the late '90s i

would be less bullish but i think they will be a big inner and financials are the other big winner. stuart: okay, why are the financials going it be at earth big winners? >> rising rates actually help the banks out. an improving economy helps banks out and they are big beneficiaries of the tax changes because, because they're domestic businesses they pay very high taxes and they're all getting very large tax cuts. the same thing, tech is a winner because of fundamentals but not winner on taxes. there are different drivers. stuart: you keep going back to the underestimation of the tax cuts we've seen. >> yes. stuart: you keep going back to that. >> if we didn't have the tax cuts i would still be bullish because the fundamentals have been great. if you take a look at, you know, these ism or pmis kind of indications of corporate intentions to spend, they're very strong. so i think this tax thing is more icing on the cake as opposed to the only story that we have here.

stuart: now you look at impact of the tax cuts on major corporations. >> sure. stuart: i look at it frequently on impact on individuals. >> sure. stuart: nancy pelosi thinks that these are pathetic crumbs handed out to individuals. now i know you're not a political guy. you're not going to go there but go there. go there. >> first of all i think there was a mistake that was made when we talk about that rich corporations benefit as opposed to individuals. first of all who owns -- corporations don't live in your neighborhood or shop in your grocery store. it is people that own those. and the biggest, is with out visiting with some of the largest pension plans and what their comment was, does the public realize that the biggest owner of stocks are public pension plans that end up supporting whether teacher pension plans or those for police officers and like. so it is the public in fact own these. yes are there executives and 1%ers who own stocks? sure but these are really backing the entire pension system. it helps society. stuart: pension fund you met with and talked to, i take it

they have all done really well over the last year? >> they have done well. the only challenge is, in certain cases they didn't take big enough bet on stocks so being more -- in all honesty, their funding status has been pretty good. and, yeah, with interest rates rising, that lowers the values of their liabilities. with stocks going up, last 12 months are good for pension plans. >> would you describe yourself as analyst? >> i'm a strategist, because i'm not looking at individual companies but the way we approach this is focus only on fundamentals. what you haven't heard me talk about is sentiment and the mood. it is really all about the buzzer -- technicals. stuart: we have a buzzer. if you get too technical we have buzzer. you're one of the very few strategist analysts we have on the program. you sir, jonathan golub, we like your style.

>> thank you very much. stuart: apple running into problem with its supplier in china. what's that all about? liz: this story is coming up again. a company called kecher, sits outside of shanghai. a non-profit called china labor watch, found routine and endemic problems with working conditions in the factory. workers make iphones and make all sorts of apple components. you see the pictures of them passed out at tables. they stand 10 hours day according this report. they are exposed to noxious chemicals. they don't have goggles and ear plugs when working, with these chemicals. their own, china's labor watch investigator had respiratory problems. he had to leave because of pollution around this plant in four weeks time. apple is responding. looking into it. it saying it holds high standard of china factories. stuart: it is negative publicity. but not negative in the sense that it will hold up the supply

chain. there is difference in the impact on the stock. i hate to be callous about it. that is the truth. liz: we've been reporting apple's problems for years in the factories in china. stuart: we got it. investor t. boone pickens, he says he is not buying into cryptocurrencies. he tweeted this, at 89, anything with the word crypt in it is a real turn-off for me. that's funny. that was really good. very, very good. by the way he announced last week he was ending his energy-focused hedge fund citing his age. he doesn't like the word crypt. i'm with you t. boone. i'm with you. mick mulvaney will tell us what kind of compromise can keep the government open. that's next. ♪ ♪ ♪

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he would be on his sixth speech of the night or the 7th speech of the day. he had gone to four different states. they were trying to keep up. they would be in the back corner half sleeping on a backpack because he had run them into the ground. they were not the ones up on stage in front of 30,000 people giving a speech. they were following him. reporting on him. they were run into the ground. not a single one of them, not a single one of them they have living off red bull and five hour energy. these are the same people questioning his health.

stuart: we're up 97 points at dow industrials. look at bitcoin, and related stocks. they're getting hit. we learned of china's plan to crack down on cryptocurrency trading. all of them are selling off quite big time there. there is a new cyberattack on bitcoin holders, with groups with links to north korea. that is not helping either. the bitcoin, the price thereof is right now at or just below $10,000 per coin. how about that? possible, back, it's a possible government shutdown friday midnight. now the last time the fed's shut down the democrats made it hurt. monuments closed to the public. parks closed, et cetera, stuff like that. joining us now, the office of management and budget director mick mulvaney. if it shuts down this time, and i don't know whether it will or not, but if it shuts down, will

it hurt the implementation of the tax deal? >> stuart, too early to say again. we're not expecting a shutdown, if we do, we'll talk about this more during the course of interview, would be for run reason only because of democrats in the senate. at large safe to say a shutdown, lapse in appropriation under this administration would look very different under the previous administration. not that anybody would want to go to the monuments today in washington, d.c., because it is miserably cold here, if they wanted to under government shutdown, those would be open. shutdown would look very different under republican administration than a democrat. this is confident that a funding bill would be passed friday midnight, we're making contingencies to make sure that doesn't happen. stuart: to reassure people, nobody who get as government check failed to get that government check? >> here is how it works. if we were to shut down again, i still don't think that is likelihood at this point, to walk through the technicalities, social security checks would go out. anything funded by mandatory

spending would go out. many payroll checks to government workers could go out if the agency could go to their account on next payday not until next friday the 26th. a short-term shutdown would not affect anybody's checks. a long-term shutdown would not affect social security checks. it would stop the snow of fund to government workers. we are a long way away from that. stuart: may i go back to the question. will it affect the implementation of the tack dale? >> too early to tell. we have not been able to tell whether the folks working doing the forms are accepted or non-accepted employees, would they come to work during a shutdown. the bottom line, if there is a shutdown, were to impact the implementation of tax bill, very temporary in nature. those folks would be not allowed to work on day or two the government shut down. writ large, overall impact on the tax bill would be overall negligible if not zero.

stuart: you are also the guy who runs the cfpb, the consumer financial protection board. we have a report that says the new cyberattack on cryptocurrency investors came from north korea. do you think investors need some kind of protection here in america? >> i guess, that is a fair question. i think everybody deserves a certain amount of protection. certainly we'll get a chance to look at that possibly as we look at a lot of different new types of financial currencieses and so forth. but at the end of the day, your, crypto, i don't know if it is greek or latin, i think it means secret. people buy cryptocurrencies, talking to founder member of bitcoin -- it is supposed to be offset by certain protections within the distributed ledger technology that underpins bitcoin, when you buy cryptocurrency, not buying something that bears seal of approval from the government. that is why they're not buying

it. bitcoin is not the same as treasury and shouldn't. stuart: i have got 30 seconds left. i have to ask you, you must have seen that medical press conference yesterday with the reporters asking those questions of the president's doctor. what is your first reaction? >> i was in the oval office during that presentation. i only saw a snippet of it. i know the president got a client bill of mental health as well as cognitive ability. entirely consistent what everybody sees here in the white house. we hope that puts that story to bed. stuart: they would have never asked any question like that to president obama or even to president bush. they would have never done that, would they? >> i think that many folks in the press just decided they will not treat there president very presidential. that is just the world we live in. stuart: mick mulvaney, looks and sounds like it is real cold out there. >> this is fantastic. according to the guy that wrote the book about the president it is sunny and warm here in washington. stuart: mick mulvaney.

thank you very much. see you again soon. >> thank you, guys. stuart: president trump is expected unveil the fake news awards today. we have more on that coming up soon. ♪ . (daniel jacob) for every hour that you're idling in your car, you're sending about half a gallon of gasoline up in the air. that amounts to about 10 pounds of carbon dioxide every week. (malo hutson) growth is good, but when it starts impacting our quality of air and quality of life, that's a problem. so forward-thinking cities like sacramento are investing in streets that are smarter and greener. the solution was right under our feet. asphalt. or to be more precise, intelligent asphalt. by embedding sensors into the pavement, as well as installing cameras on traffic lights, we will be able to analyze the flow of traffic.

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ashley: a change to the tax law has wineries saying cheers. hillary vaughn in the middle of california's wine country in napa count to explain. hillary? reporter: hey, ashley. this is the biggest excise tax cut the industry has seen in over 80 years. i talked to alpha omega winery owner who says this tax cut allowed them to the recover from the million dollar loss they suffered when the wine country fires ripped through napa a few months ago, now headed into the new year. they're offering 5% raises across the board for all of their employees. >> we were doing our budgeting process in november. the recommendations coming to me initially was, hiring freeze and payroll freeze, basically no races. so, with the tax bill that came through in december, it means, it really changed the whole playing field and we were able to eliminate both of those. we gave substantial raises and

we're having no hiring freeze now. reporter: you new law went into effect january 1st eliminates a regulation that charged 50 cents more per gallon for wine with more than 14% alcohol. which means winemakers had to worry about the bottom line when blend tested about the limit. he says he is most excited about the 100% writeoff for new equipment. first thing he says he will buy is backup generator so they don't have to deal with massive power outages they experienced when the fires happened last fall. ashley: more importantly, hillary, is the price of my wine going down? reporter: well, i don't know about that. but what i can say is that they are going to be, you're going to see a lot of expansion of wineries through their tasting kitchens, where a lot of their profit comes from. ashley: very good. what a great backdrop to hillary. looks like a magazine cover. beautiful. thank you so much, hillary. third hour of "varney" coming up

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>> if you lived on another planet and you looked at america's politics, surely you would be shocked at the mess. as the country returns to posterity and companies handout bonuses and the stock market brings wealth, we are distracted with utter nonsense. in the past 24 hours, we have seen the president.report showing he's an excellent health but the white house press corps implied he is

mentally unstable. we saw theatrical performance from corey booker who shouted when he heard the alleged comments from the president on immigration. let's call that theatrical distraction. mr. trump claimed credit for the market stellar performance. patently untrue she giggled. let's not forget, president trump ordering a cnn report. [inaudible] all of that in a 24 hour time period when many companies give bonuses to more people, the stock market broke 26000 and all sides point to an economic boom. there is no distraction here. we are focused on prosperity and rightly so. the third hour of "varney and company" is about to begin. ♪ ♪

♪ >> i said it, you heard it. let's bring in the founder of the heritage foundation. where do you's stand on this? i say this is distraction as we move forward to prosperity. >> absolutely with you. it's amazing to me that a jeff flake is out there defending the current media for more up there at the same time nobody ever took barack obama to task for what he had to say about guns and bibles in the nativist clinging to it or what hillary clinton described as the deplorable spread politicians say strange things. let's look at what's really happening. it's great for people and great for the economy. >> is it legit for the president to go after the media in a very aggressive fashion? >> it's tit for tat.

i don't know how you de-escalate. i used to know something about conflict theory, but how you get back down, i'm not sure. it's unfortunate, but it's the way it is right now with tweets and instant replays and instant responses. how do we get back to normal? i'm not sure we will be able too. peggy noonan said it well when she said this probably is the new normal so we better get used too. let's get away from the political attacks, let's go back to policy differences and stay focused on that. we have plenty of those to talk about. >> about the possibility that we have a government shutdown come friday at midnight. if it is shut down do think there is serious damage done to either our politics or our

economy? >> i don't really think so. whenever there have been government shutdowns it's been reversed within a couple days and the big question and the media is who is to blame for what happened or what didn't happen. grandma social security check will still get out, the army and navy will be paid and life will continue as normal. we might find out there are nonessential employees in washington, maybe we can do something about that too. >> always a pleasure to have you on. thanks for joining us. back to that market, still up over a hundred points and plenty of green among the dow 30. let's bring in christian mcginn, ceo of amplify ets. is the rally back on track now that we are up another hundred points. >> yes, i think it's game on. there is some great news about the economy, tax cuts and worker bonuses.

i think we have a nice run going into the beginning of 2018. very encouraging for investors. >> we have had several big-time analysts and strategists on the program today. at least two of them have said you look down the road in this market is going much higher and corporate profits are also going much higher. do you share that bullish view? >> i do. i think the risk is missing out on the upside. i don't think there is as much risk of downside. again, economic numbers are steadily improving. we see good corporate numbers. these tax cuts will be very beneficial to corporations. the consumer is getting not only a bit of a tax-cut but also some interesting worker bonuses that should be great. consumer spending is a big portion, about 80% of u.s. gdp.

>> i want to talk about that coin because it's down big. it dropped about 50% from its high last month. summarize what is going on because that's quite a calm down. it was 20 grams, now it's 9600. >> it's a global market but the majority of trading comes from asia and over the past week we've had news from south korea and china that has been the hors harsh toward crypto currency in terms of trading and mining. that has taken some of the fires off the table. some are wondering if the u.s. or other countries will be next to clamp down from a regulatory standpoint. you have to be careful with that coin. we are seeing a correction. we've seen a lot of corrections in those crypto currencies, not exactly easy to invest in because of the volatility on the upside and the downside can be massive. >> okay, block chain, the

underlying crypto currency, you have an etf that has begun trading and you are putting your money they are into this basket of block chain companies. so you are putting your trust, your faith in block chain not that coin. >> that's correct. we have come out with a portfolio in an etf format. we think this will be transformative, the ticker is bl okay. it just began trading this morning. we've had over 300,000 shares trade which for us is maybe ten times the normal interest we get on the first day launch. >> amplify buys into companies or has the shares of companies which use block chain. the of ibm in there?

ibm is launching a block chain laboratory. >> that's exactly right. ibm is in the portfolio. we also have other companies that are fairly unique and outside the u.s. if you go to their home pages the block chain as a core principle and how they are building out their services. we see an industrywide grouping of companies that are investing in block chain and were not sure what the winners going to be. we think tying a basket approach makes sense. >> okay, i'm sure yo sure you are making a ton of money. good luck to you. how about this one. this is a swiss company selling its american candy business to an italian company. nestlé has all kinds of brands. you walk into a supermarket

and shelf after shelf is nestlé products. baby ruth, butterfinger, sweet tarts, i'm told. they just wanted to hear me say that. when the deal closes for arrow will become the third largest company in the world. look at general electric. the ceo says he is looking closely at breaking it up. it's down to 1743. there is talk earlier this morning that the company could disappear. that was the view of one of our gas. the share price of goldman sachs is down. it posted its first quarterly loss in six years, down 3%. that hurts the dow because goldman sachs is a dow stock. coming up the author he traveled with justice scalia for two weeks. he spoke very favorably about president trump's candidacy and called it refreshing. he is on the show. mainstream media slamming

homeland security. [inaudible] she was rudely shouted out by new jersey senator booker. there are a reports that they are preparing to arrest leaders of sanctuary cities. what? we have a lot to cover the sour but the big story we are always watching, your money, we are up 117 on the dow. the third hour of varney and company. we are just getting started. ♪ ♪ ♪ ♪ ♪ ♪ have you ever had car trouble in a place like this? (roaring of truck) yes and it was like the worst experience of my life. seven lanes of traffic and i was in the second lane. when i get into my car, i want to know that it's going to get me from point a to point b. well, then i have some good news.

chevy is the only brand to receive j.d. power dependability awards for cars, trucks and suvs two years in a row. woman: wait! (laughing) i definitely feel like i'm in a dependable vehicle right now. woman 2: i want a chevy now. woman 3: i know!

costco is really fighting back against seattle's new soda

tax. they are putting up signs to let customers know the higher prices are not cost goes fall. look at this pretty case of gatorade originally 1599, the tax adds $10.34 to make a total of 2633. very clear, right on the label, costco says it is not our fault. now this, and mainstream media slamming homeland security secretary after she testified on capitol hill that she didn't hear the. [inaudible] >> all i can tell you is walls work. we have examples of that, we have documented data, i did not hear that word used. the conversation was very impassioned. i don't dispute that the president was using tough language. respectfully, i have answered this and been very patient with this line of questioning. i will tell you about the threats our country faces but have nothing further to say about a meeting that happened over a week ago. i would like to move forward. >> now this from the washington post. it's an opinion piece. just as nielsen imagines

norwegians are white, i imagine that she, in her denial of the obvious and indefensible is the latest trump to trash her reputation. joining us now, spokesperson for the rnc, the author of the book the new american revolution. go at it. what you make of that. i'm astonished. >> secretary nelson did an excellent job. this is another mainstream media liberal opinion writer who is out to trash another member of the trump administration. surprise surprise. it's jus disrespectful, it's not accurate and is not truthful. peoplesoft himself how she was treated in a hostile environment by cory booker who had an interesting moment. >> we saw that. we iran that on the show earlier. he was shouting at her. i had tears of rage when i heard the alleged vulgarity

from the president. it seems to me that democrats are trying to use this alleged vulgarity, their calling the president a racist and using that as a way to stop an immigration deal. >> that's right, and that using it as a way to position themselves for 2020 which is exactly what cory booker was doing when he talked about tears of rage and seething anger. voters see through mac the fact that this country is safer, historic african-american unemployment at historic low, 44 your low for hispanics. people see that and if that's what cory booker is so enraged about, good luck selling that your district. >> minority whip, he says this about the gop tax bill. i'm quoting now, i think they will. [inaudible] this is an opinion on my part. i think the republicans have to come out much more strongly and swing at this nonsense. swing at the idea of this pathetic crumbs.

we have something from speaker ryan this morning putting out the benefits of the tax cut deal. i think republicans have to be much more forceful, go right at them. >> right. we have to go right at them. we need every republican up the hill to come out and share with the district what is going on. walmart, the largest employer giving bonuses to their employees, we see minimum wage growth in so many countries across the nation. as i say, go sprinkle caviar on your hamburgers out there in california. for the average everyday american worker, for the factory workers i spoke to this is more money in their pocket and it means something. >> who is going to do it? which republican is going to go face-to-face with nancy pelosi and all the rest and just pound the table? which republican is going to do that? >> there are a lot of them. i put my money on mark meadows.

the freedom caucus in particular, they are really good getting out there fighting with these democrats and putting the fire under our party. >> katie, thank you. now we have apple who has finished their work on a 5 billion-dollar corporate headquarters in california. look at that. 12000 people will work right there. the entire roof is covered with solar panels. the company has 9000 trees plus an orchard and a meadow. i love it. >> it looks like the start track enterprise. ford, the stock is down. it suggested lower profits in the future. that's taking it on the chin. 6% down. look at ibm. it will upgrade and they said

the worst is behind ibm, and of course as we've been telling you, ibm is looking at creating a block chain lab. i think that's part of the reason why ibm is so strong today. check this out. duncan debuting its new drive-through store in quincy massachusetts. there are a few changes. it dropped donuts from the name. you can order online and pick up in the drive-through and there are digital kiosks inside the this is one of 30 concept duncan plans to open. china has built the world's biggest air. fire and it seems to be working. a scientist leading the project report a noticeable improvement in the air quality surrounding that tower. >> they need a lot more than that. it's a large country. >> ferrari planning to build an electric supercar to take on tesla. they also plan to launch an suv by the end of next year or

early 2020, however all ferraris will have some hybrid technology by next year. >> have got a show you this again, a meteorite exploding in the sky in the new haven michigan. so powerfully registered a 2.0 magnitude earthquake. you get it all.

>> i think these are heartwarming stories. there's a school in puerto rico celebrating the return of electricity. look at this video posted on facebook. 110 days after hurricane maria rips puerto rico, still only 60% of people have power but when they got it back at that school, they rightfully celebrated. good for you. this dramatic video from georgia shows a firefighter catching a baby who was thrown from the third story burning apartment building. the father frantically through

the baby. the firefighter was in the right place at the right time. twelve people were rescued including eight children. well done. in alabama, a woman shot this video showing a doctor pulling his car over to give a homeless man his coat. the doctor then brought him some food. that received a million views on facebook. rightfully so. and then she fired who she thought was a professional photographer. believe it or not she paid 250 bucks. the photographer said there were shadows on their faces that needed to be fixed and admitted she had never been trying to edit photos. >> i cannot believe that. she is thankful because she says she hasn't laughed this hard in years. i think she's a good sport. i love it.

two stories on immigration. ice planning to arrest more than a thousand illegals in california to show authority to sanctuary cities and states. meanwhile the department of homeland security reportedly prepared to arrest the leaders of those cities as well like mayors, the leaders of the city, it seems hard to believe. we've got the judge on that coming up next meanwhile, market is back to the high of the day. it went up 156 points, 25950. it just hit that mark. we will be back ♪ ♪ ♪ a, go

nice bounce back. we are 150-point almost paid 25941. plenty of green amongst the dow 30. still on the market, look who's here. managing director, a major character on wall street. earlier today, we had a forecast that profits of american corporations will be up 14% year on year.

that is a big gain. do you share that? >> yes i do. i'll go so far as predicting a gain of 15%. >> that's huge. >> that's why equities are so much higher. there up more than 4% year-to-date. >> the reports were getting now don't relate to the future where you've got the tax cut coming in, they relate to the past, the previous quarter and you still say they're up 15%. >> yes, you have nothing but good news moving forward. it will look quite good. >> what i later in the year. >> 20% is within reach. operating earnings probably g go -- grow by 12%. that's better than we did last year. operating earnings up 12%. does that mean that stock prices of those companies will also go up 12%?

>> we put it this way. we have to take into account what happens interest rates but if we keep the ratio for overall market valuation where it is today you probably have a 10% gain. >> the dow industrial is up 41% since election. the s and p up 30% and you say it's going up a lot more this year? >> it should go up significantly. >> was significantly. >> give me another 10%, but i want to tell you something, not too long ago i predicted that the dow jones would finish this year at 26500. then i'm trying to do the math here. there are 285, you think we get there. >> i think it's within reach. why not. >> to have any friends on wall

street? are you a total outlier because that's not what i normally hear. >> i have no friends on wall street so i'm not biased in any way. thank you very much. hold on, i have ask you this one. if we get a government shutdown, what economic impact. >> it will cost the economy about $7 billion. week so that means if it lasts one month that comes to about one tenth of 1% of gdp. it's no big deal. the only thing that worries me is, for whatever reason the government decides to not make good on its interest payment obligations, then all have adequate break loose. >> that's not going to happen. people most adversely affected by the shutdown tend to vote democrat so i think this will be resolved quickly enough as you predicted. >> john, thank you very much. now this, ice reportedly

planning to arrest about 1500 illegals in the bay area. this would be a direct challenge to the states sanctuary status. >> remember, the challenge would be if the federal government was trying to get the city and state officials in california to assist in the arrests. they certainly can't block the arrest and the federal government has the wherewithal to come in and identify these people and arrest for the interesting thing that happens is can you help us. the answer to that question is almost always yes. were both in law-enforcement, we have a common interest in the law being enforced. we want you to finish your work in leave as much as you do. in this part of the country, california, state locals are not going to help. it will mean more federal resources are needed to get this job done. >> a real challenge would be

that will force you to help us. this is basically we are going to enforce federal immigration law whether you like it or not. >> what you make of this report. homeland security says they plan to arrest the leaders of sanctuary cities and i take that to mean the mayor of san francisco. >> yes, and governor jerry brown. that would be interesting. what secretary nielsen said yesterday is she asked the justice department to look into this. there is a federal statute which prohibits harboring an undocumented alien. that means hiding the person from the authorities. >> your hiding them if you don't allow the federal authorities to go near them. >> they're not preventing them from going and they just refused to cooperate. they said they cannot commandee commandeer. that's a very british term.

the feds cannot commandeer state and local officials and for some to help. stated differently, there's no basis for an arrest. the way out is to purchase compliance pretty $100 million for board of education, sign a contract agreeing with ice. that's the way you do it but that's gonna happen only when congress decides to send that money with those strings attached. >> one question, one statement. would you like to see the mayor of san francisco led away in handcuffs because he leads the century city. >> no. i think that would be politically catastrophic for the trump administration for the concept of federalism. if he is engaging in a crime by hiding aliens, then the answer is yes. if he's refusing to cooperate with the feds, he has every right to do that. >> you referred to commandeering ships. we commandeered slave ships and took them away. i think that was a good thing. >> yes.

times up. be quiet place. [laughter] the potential government shutdown could affect the presence trip. >> here's what i can tell you. it is being reviewed and the promise is, if there is a government shutdown, here's what i'm told. it could have some impact as to the president's delegation and that is under review. there is a sizable footprint going to the world economic forum including half a dozen cabinet secretaries. by the time you add up all the senior demonstration official that somewhere in the area 15 members so i'm also told is that this would vary on department to department. their contingency plans, which all departments have the legal

reads from the lawyers, how they might read it so there's still a big gray area here. this is still and if because there is no official shutdown at this point, but what i'm told is this is being reviewed, and i should separate out what the president may or may not do is a totally separate issue. as of now the plan is for him to go but if there is a shutdown, will the government get on air force one, i don't know. >> we've got to go. i want see our present ride amongst the globalists and the great humanitarians. i want to see him. >> he should just step outside here at the white house because it feels like it here with snow on the ground. >> take a look at that going. it is still below 10000. $9874. bit coin. how about the price of gold? i believe 1333. ounce. that is your quote.

as the media slams the president, we will continue to highlight prosperity. coming up, we are joined by another ceo giving bonuses to his employees. we will hear from an author who traveled with justice scalia. he said scalia spoke favorably about the presidents run and said he was enthusiastic about his candidacy. the high of the day for the market almost 154 points higher for the dow. 25946. we will be back. ♪ ♪ ♪ ♪ ♪ achoo! (snap) achoo! (snap) achoo! achoo! (snap) (snap) achoo! achoo! feel a cold coming on? zicam cold remedy nasal swabs shorten colds with a snap, and reduce symptom severity by 45%. shorten your cold with a snap, with zicam.

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overall. they will be sharing capacity in some places.

california stories for you. new census numbers show it has the highest policy rate in the country. nearly one in five considered

poor. factors include the cost of housing, food, utilities, clothing and liberal politics. a group of volunteers in california facing misdemeanor charges after. [inaudible] they violated city ordinance that prohibits food sharing in public places. they were feeding the homeless in a park. and this is from justice scalia shortly before his death. the author said he was fascinated by donald trump campaign. his book, my unusual friendship with justice antonin scalia. what did he find so fascinating about trump? >> with early candidate trump, he was interested in the fact that we had a candidate who was unscripted, not micromanaged in his every utterance by handlers, whose opinions were not focus groups

and pulled. he liked that. >> justice scalia was a huge constitutionalist and he believed in the constitution as written. there will be people who say donald trump has no such relationship with the constitution. what did the justice make of that? >> well, i think he would have no public position on the current affairs on the way the president is perhaps behaving toward the constitution, and if you asked his friends today, you would open it up to a torrent of opinion. he was, after all, justice scalia was the most interesting man in the world. he was a renaissance man, but i think he would be unable to speculate. >> why do you say it's an unusual friendship you had with him. >> there was a 22 year age

difference between us. on many social positions, my views were different than his, but what we bonded over was language, and intense interest in the english language for that is an unusual basis for a friendship. >> can you give me an example because a a lot of us are consumed with the english language and correct usage. >> justice scalia was a texture list judge and he cited dictionaries a lot. he cited my dictionaries long before i met him. we would argue about pronunciation. is it lamentable. >> how about grammar? >> i think of my self as a grammarian. i try to teach my kids good grammar. was he a grammarian. >> absolutely. it was something we shared. it was word use and not misusing for versus imply

and subject verb agreement. he wrote the important heller decision and in heller there is a normative absolute beginning of the sentence. it's a miss punctuated absolute and i recount in the book how we discuss that. he missed that in his opinion and regretted that he had done so. >> since the right dictionaries, can i asked the following question. is there such a word as impactful. [laughter] >> almost anytime someone asked the question is there such a word, the answer is yes, there is such a word. we can regret it. it's called a non- word. one of them is irregardless but that's a non- word, but it's in the dictionary. it doesn't mean it's a word fit for use. impactful, i'm afraid 25 years

ago no one will have any adverse relationship to impactful but you and i don't like it. >> i'm appalled by it. never ever use it. what's wrong with the following sentence but my mother told me too quickly run to the store. >> it's the split in synonyms. fowler in england, he was approving those sometimes even in 1926 but there's nothing, there's no absolute prohibition against them but the one easily avoided is my mother told me too go to the store quickly. that would probably be a better way of doing it. >> have you read the book, i can't remember the correct name or title but it's about the madman confined to an institution who actually wrote a good deal of the oxford english dictionary. have you read the book. >> yes, it's called the professor the madman. his name was doctor minor. he contributed a great many entries to the oxford english dictionary from an insane asylum, broadmoor in england. >> we are glad to have you on

the show. it's a treat to have a grammarian on the program who agrees with me. that's just stunning. i'm going to read the book. my unusual friendship with justice antonin scalia. thanks for joining us that was a pleasure. >> thank you. >> news on a couple individual stock. juneau therapeutics is way up. the wall street journal reports celgene is in talks to buy juneau therapeutics. how about big tech names? i can't really say that's where all the money has been going all of them are down except microsoft which is way way up. a dollar 41 higher. 1.6%. how about that. we have at least nine new companies giving bonuses or raising wages thanks to the tax bill. up next, a ceo who is doing just that. i've got a smarty question for you.

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>> our next guest is another ceo giving his employees bonuses because of the tax plan. on the phone, chris wells, president of ar-15 gun owners of america. welcome to the program. how many employees are getting how much in a bonus. >> thanks for having me. we have less than ten employees. we are small as this and we gave 300-dollar bonuses and increased our employee salaries as well. >> as you may know, we have nancy pelosi saying these bonuses are pathetic crumbs. may i ask, when you told your employees they were getting a bonus, did they turn their backs on you and say that pathetic from. >> absolutely not. i can't believe she even said that. these are not crumbs, she

doesn't understand what it is to get a pay raise or a bonus when you're not making all that much money. she's a multimillionaire. crumbs doesn't make sense to our employees. they were very happy. >> what exactly is they are 15 gun owners of america association? >> we are second amendment organization, a federal firearms license dealer. we are community program and we run a facebook page that acts as a forum for our members. like i said, we sell the parts and accessories all over the u.s. >> your organization will get more money because of the tax cut deal. the question to me is, are you passing along all of this extra money you're getting to your employees?

>> were not passing along all of that, we are passing along a portion of it. what were doing is building our infrastructure. we are only five years old and we will be buying new equipment, point-of-sale equipment, inventory equipment but we have increased our salaries for our employees. we look forward to seeing reduced tax rate readily help with the successful. >> great heavy with us. i understand the weather is pretty rough down there. thanks for getting on the phone and joining us. owners of america, thank you we will see you again soon. let me give you some individual stock price news. u.s. bancorp says it has booked a $900 million tax benefit because of the new tax law. i don't know why the stock is down 2% because they have a $900 million benefit. this starts the big-name industrial ca company parade of earnings. they start after the bell. running up to that, they are

up at half percent. bank of america ceo says he expects to return more money to shareholders after the tactical. we don't know whether that's increased dividend or stock buyback but we do know the stock is down a fraction on that news. high of the day for the market, we are up about 170-point more varney after this. ♪ ♪ closer to home. we grew to a trillion dollars in assets under care by thinking about your goals as much as you do.

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...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: breakthrough between north and south korea ahead of next month's olympics? >> they agreed to walk into the olympic ceremony under one flag. that is kind of a big deal. the ice hockey team will train together. north korea sending a 230 member cheerleading squad. that is quite a lot of cheerleading. japanese foreign minister said this is great and wonderful. don't be fooled.

he believes north korea wants to buy time to complete the nuclear missile program. skepticism with the japanese over thawing of relationship. stuart: we've seen this kind of thing before. >> yeah, we have. cheerleading squads. stuart: don't want to dismiss it. >> at least they're talking. stuart: look at this. the dow jones industrial average, i will peer around the corner 25,971. do the math, stu, that is 2points from 26,000 on the dow jones industrial average. i want to ask you, good people sitting right next to me. >> i'm not good. stuart: when we close the market today, at 4:00 eastern time, four hours from now, is the dow going to be at 26,000. yes or no, liz? liz: i was correct last time you asked. i will say yes. stuart: we will close at 26,000 or above? >> based on yesterday, just short. stuart: just short. i think we'll power beyond 26,000 within the next half hour. i say that because charles payne, is standing by.

he will take over at 12 noon. wait for it, charles. i have 15 seconds left. >> i got it. stuart: hand you a rising market. hand you a headline says within minutes we will be at 26,000. it is now 12 noon. take it. >> i will hold it too. charles: welcome to can veto coast to coast. i'm charles payne. investors are pushing stocks up despite the fierce. they tell us there is 25% chance for a shutdown. connell mcshane, deroy murdoch, "wall street journal" senior video reporter shelby holiday. a lot of people are sort of intrigued that the market is up in face of a shutdown. i did my own math. the markets have done extraordinarily well during these shutdowns. the last three shutdowns saw the et