you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today. maria: thanks for joining us, everybody, let's get right to stuart, varney & company. stuart: i am going to use yesterday's script to start the show. here we go. stocks are going up again, yes, they are. and wait till you see the waves that our president is making both at home and abroad. good morning, everyone, he's arrived. and the world knows it. president trump landed in switzerland on air force one, switch today marine one and flew to davos, secretary treasury had ruffled the markets and commerce secretary poked the chinese on trade within hours of arrival meeting with world leaders, theresa may, netanyahu, the president has transformed a once

boring relevant in platform for reshaping the world. as business guy, donald trump was not invited as davos, as president of the united states he's the focused of attention. throughout the show today you will see who he is meeting and what he's saying. he will have impact. now to your money, well, look at this, stocks are going up today, certainly at the opening bell, okay, we don't know how things are going to close but it will be another 100-point run-up half hour from now, right at the bell. quick headline, before he left president trump opened the door to citizenship for dreamers, citizenship, take that. senator schumer. varney & company is about to begin. ♪ ♪ stuart: president trump is meeting with britain's prime minister theresa may, we will bring you any headlines from

that meeting. now fox poll, we have to tell you about this, 45% of voters have favorable opinion of president trump, that's a big improvement since october when it was a 38% favorability rating. nearly twice as many say that the trump administration has made the economy better than made it worse, 40% better, 22% worse. i would like to meet the 22%. and now this, this is a big deal, more bonuses, home depot giving bonuses, i think, to hourly workers, how many? >> up to a thousand dollars in bonuses to workers that have been there 20 years, if you're hourly, you get 200 up to a thousand. the ceo, stuart of home depot said that it's made possible because of new tax law. retail faced high tax rates, the corporate rate coming down is basically saying, yes, fiat chrysler also saying it's going to see a net benefit from the

tax laws. stuart: we are an endless scroll of major corporations offering bonuses and we are joined now by home depot, right there. >> 241 companies now. stuart: thank you very much, 241. you have to look at futures. this is how the market is going to open up this thursday morning, up. that's the operative word, up. about 123 points up on the dow, 11 on the s&p. big gain and the nasdaq 50 points higher. a good chunk of the gain in the dow is coming from two particular stocks, they would be caterpillar and 3m, they've come out with their earnings, i will start with what's that, 3m, okay. their profits have gone up and they've raised their outlook, that's the important thing there. they are looking into the future, things are pretty good. same story with caterpillar, strong world economy means more orders for equipment, they have a 35% surge in sales of

construction and mining equipment, they are up 3 and a half percent. take the 3m and caterpillar combined, that's why the dow is up about 130 points. got it. american airlines, their profit is down because they are spending a lot of money operating expenses, the stock is only down 38 cents. southwest, its fourth quarter revenue up with traveling more. they are only up about a buck, that's it. higher revenue at jet blue, not so much on the profit side, but they are only down 7 cents. come on in, please, first trust adviser chief economist brian you were the star of last week, the stock market is going to keep on going up. >> right. stuart: what about profits that we have just seen from big corporations, do they justify another leg up for the market? >> stuart, absolutely, you know, here -- i think this is what's

happening and this is why so many people missed it. we had a big, big push toward deregulation last year and that was before the tax cut and then we get the tax cut on top of it, but we already had economic growth accelerating in 2017 and i think it was directly due to less regulation on business, a more business-friendly environment, so we are going to have three quarters of growth over 3%, that's the first time that's happened since 2004. what that does is it boosts revenues to corporations at the same time that they are boosting efficiency and productivity and that means profit margins are improving, and so this year, we could have $160 per share for the s&p 500 and at 19pe, which is not outrageous, you're over 3,000 on the s&p and you're kind of fairly valued.

so we have a lot further to go here, over 28, 29,000 on the dow is easily doable with these kinds of earnings. stuart: nice way to start the show, brian, why don't you stay there and i will give you more red meat, stick around. >> absolutely. stuart: theresa may and president holding talks on the sidelines and get comments shortly. i want to bring in john bolton, former un ambassador. here is my opinion, mr. ambassador, president trump dominates the world scene in a way that president obama never did, i think that's a good thing, what say you? >> absolutely. there's a narrative out there that even german chancellor angela merkel was saying yesterday that isolationism withdraw from the world is a bad thing criticizing donald trump. that's not trump's view of the world. and i think he's demonstrating it, he's come to the resort center of globalism and he is

going to tell them exactly what he's doing in the united states. this is the kind of test and confrontation, i think, the president -- i have to say myself i was dubious about this, who would wanting to to davos? i think he will take them on. a lot of the participants are business people, they might talk during cocktail, come to america. stuart: seems to me that emmanuel macron has become the leading of the europeans as angela merkel fades with her own political problems. listen to what he said about globalization, i'm quoting now, let's not be naive, noblization is going through a major crisis, this is the french president, this challenge needs to be collectively fought by state and civil society, what do you think he meant by that, mr. ambassador? >> well, i'm not entirely sure. stuart: neither am i.

[laughter] >> to me what i worry about is global governance. more international institution that is make decision that is should be made by nation states. that, i think, is something the president has made clear, he's very much opposed to, but he has never said he wants the united states to pull back from international trade, what he said is when you make trade deals, three trade deals, manage trade deals, we expect other nations to live up to their commitments and when they don't, we are going to take action. i don't see how that's objectionable. ronald reagan did exactly the same thing, remember saving hardly -- harley davidson and did not create trade war, that's what the american people expect, not to be kicked around. stuart: it's another important day, john, appreciate it. >> thank you. stuart: bring back brian, trump big economy speech is tomorrow. my opinion, it's the most

important economic speech of his presidency, where am i going wrong? >> i am going to agree with ambassador bolton. the phrase that was used back in the 80's with ronald reagan was who controls the commanding heights of the economy and is it government or is it the market and capitalism, i mean, if you think about it, globalism or globalization companies do it each and every day. what these leaders that go to davos, the political leaders want to do is they want government to control it and i think donald trump, president trump has to make it clear that america, what we want to do is get out of the way, let companies prosper, let people globalize themselves because they want to work together with people around the world and stop having all this government interference and i think that's a huge difference in message, you know, i think of the one

company in america i think of that portrays this the best is general electric, ge under immelt, he tried to work with governments and look at how it failed, all right, companies need to compete against each other be free from government and that's the, i hope, the message and so -- stuart: okay. >> fair trade is part of that. stuart: got it brian, thanks for joining us. we will see you again soon. stuart: let's not forget this market does open sharply higher today again, i have no idea how it's going to close but we will be up up 10 points in a 20 minute's time. three people killed, more than a dozen injured. new york city is on that list, mayor bill de blasio responded by calling the president a

racist and skipping a scheduled meeting at the white house. yes, we are on that. the former usa gymnastics team doctor, was sentenced to 175 years in prison. the judge who sentenced him says she signed -- she signed his death warrant, very, very strong, not necessarily objective words. ashley: no. stuart: you'll hear it all in a moment 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.

stuart: oprah says she's not interested interested in a run for the white house in 2020. she told instyle magazine, it's just not something that interests me. that's oprah out of the running. the justice department crack-down on sanctuary cities, 23 of them threatened with threatening letters, yesterday bill de blasio tweeted this, he says, i will not be attending today's meeting at the white house after trump's department

of justice decide today renew their racist assault on our immigrant communities, it doesn't make us safer and violates america's core values. all rise judge napolitano is here. hold on a second. 23 letter threatening letters go out to 23 cities, where does that lead us, what's happening here? >> i don't know where it's going to lead us but i know what's happening, these are letters written by an official in the justice department saying this is to remind you that you have a following obligations under federal law, if ice comes knocking, you can't answer incorrectly, you have to answer. so please tell us how you're complying with ice. none of the letters have been answered because they were just delivered yesterday. i think that the purpose of the letters is to foment litigation out of which subpoenas will be issued so that the federal government can actually get under oath and on the record, hey, i was told, i'm a clerk in the city of new york, i was told

if ice comes calling not to take the call. i'm suggesting hypothetically that that's what the federal government is looking for. stuart: they are trying to bring local officials, city officials into court. >> yes. stuart: under oath to tell the truth, the whole truth -- >> they are beginning quite properly with innocent sounding letter. you've gotten all this money from us, we want to know how you're using it and cooperating with us when we need you. that's the tone of the letter, the tone is inoffensive, sterile, i read the letters this morning and professional. stuart: okay, opening gamut,. >> the easiest resolution pass a budget, put in the budget. here is the money for your school system, here are the strings, cooperate with ice. no matter de blasio says, mayor de blasio, they will never turn the cash down. stuart: do i want to raise this

issue with you, lauren, former u.s. gymnastic's teacher, the judge as she imposed the sentence, watch this. >> sir, i'm giving you 175 which is 2100 months. i've just signed your death warrant. stuart: it goes on from there, emotional statement from the judge and i don't think that's right. >> well, i happen to agree with you. i sentenced over a thousand people on the bench and i can tell you hyperbole like that almost gets you in trouble. every sentence reviewed by appellate court. the defendant thinks it was too heavy, they are almost all appealed and usually get your knuckles whacked. i don't know what she meant.

he's going to die in jail, murdered in jail because it's such a horrific crime and people that go to jail for this often have a horrible time there. he's serving 65 years for child porn in a federal institution before her 175 years even kicks in. he's 45 year's old. stuart: i don't think judges should be making emotional appearances in court on camera, you raised -- >> he played to the cameras during the oj trial. >> i don't know, i will tell you, the judge was running for reelection and he was reelected. she is not a life-tenure judge, she has to run for reelection but not until 2020. stuart: i think all of us around the table think that he should go to jail for very long time. heinous crime. we've got it. i just don't a judge should be making comments. liz: could he use that, the

judge's comments to get sentence reduced. >> he could try. i don't think the sentence is reducible. he was convicted of assaulting 7 young women. the judge permitted 150 to it have against him at the sentencing hearing. there are no cases in the 150. stuart: that legit? >> it is, prior bad act. when the government tells the court what a horrible person you are because of similar uncharged activity. why 150 uncharged, those people did not wanting to in the witness stand and say what happened to them but by the time the sentencing came around, they felt to speak -- almost lose to him that you and i are now and recount publicly what he did to them. it was gut wrenching, we covered it light in outif you-- outnumb. hyperbole from the judge,

emotion from the judge, that's why you're a professional, you have to restrain that. stuart: hold on a second, we are going back to davos, theresa may with president trump, watch this . >> thank you very much, it's been honor to be here with prime minister may and we've had a great discussion. we are on the same wavelength and i think in every respect. the prime minister and myself have had a really great relationship. some people don't necessarily believe that. i can tell you i have tremendous respect for the prime minister and the job she's doing, i think the feeling is mutual from the standpoint of liking each other a lot, and so that was a little bit of a false rumor out there. i wanted to correct it frankly,

great respect for everything that you're doing and we -- we love your country and we are working on transactions in terms of economic development, trade, maybe most importantly military, we are very much joined at the hip when it comes to the military. we have the same ideas, the same ideals and there's nothing that would happen to you that we won't be there to fight for you, you know that, and i just want to thank you very much, it's a great honor to be with you, thank you very much. >> thank you very much, mr. president. thank you. we've had a great discussion today and we continue to have special relationship between uk and the united states. facing challenges across the world and as you say we are working together to defeat those challenges and to meet them and

working for trade relationship in the future which will be both offensive. so the uk and the u.s. both do well out of it and great to see you. >> great to see you. one thing that will be taking place over a number of years will be trade, the trade is going to increase many times and we will forward to that. the trade concepts and discussions and discussions really, i think i can say most importantly that will be taking place are going to lead to tremendous increases in trade which is great for both in terms of jobs and we look forward to that and we are starting that process pretty much as we speak, so thank you all very much for being here. thank you. [inaudible]

>> we will talking about -- talk about that. thank you very much. >> thanks, everyone. stuart: well, i didn't care much for the lack of series of shouted questions one on top of the other, ambassador john bolton is with me, you were watching this, ambassador, they didn't look real happy together even though they are talking about how things are hunky dory, they didn't look happy, did they? >> i thought the statements from both of them were strong about how they respected each other, how their ideals were compatible and -- both in economic and political sphere and i think especially important was what president trump said several times about the importance of the u.s.-uk trade relationship.

that may not sound controversial, but in the context of the uk's withdrawal from the european union, i think it's very important, a lot of those who opposed brexit said basically, my god, if britain cuts itself off from europe, it's the end of the world as if there isn't anybody else to trade with. we have enormous potential once britain breaks free from restrictions an regulations of the european union to have much more transalantic, much broader transalantic relationship. you can bring canada into that quickly. i think this is a laboratory for the trump-trade policy. stuart: ambassador, thanks for joining us, blake berman joins us now, he's in davos. lay out the schedule for the president for the rest of the day, please, blake. blake: pretty interesting scene there. you saw the first of it as the president sat down with theresa may and shortly coming up here he will sit down for another

bilateral meeting perhaps biggest ally, the israeli prime minister benjamin netanyahu, this comes after vice president pence had made trip to israel as well. those are the two bilateral meetings today, later this evening the president will have meeting with european business leaders as listed on the schedule, stuart. it is very clear here in davos that this is an administration, the trump administration that feels that they have a success story to sell and a success story to talk about, 3% gdp, the tax cuts, bonuses to workers, on and on down the line. so the president will be sitting with european leaders and this, of course, all tease up his speech tomorrow. stuart: yes, indeed, blake berman in davos. we will open the market shortly. it won't be 100-point gain, more like 70 or 80, we will be up. join us for that opening bell after this. ooooooh snap!!

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stuart: i will fire up your recliner president in davos. laying down the law. we are a success. you don't know what you're doing. on fire here, ladies and gentlemen. telling them how to do it. 9:30. here you go. i love that green on the left-hand side of the screen. up 60, 70 points. 87 points. 26,341. i'm in a good mood. up 102 points. 25 of the dow 30 in the agreement we are a 101. 26,352. big smile, boys. check the s&p 500 up one third of 1%. 10-point game. 2847. how bout the nasdaq, the home of the technology companies, 41 points higher. that tells me microsoft is going to do very well.

now, dow components, two of them. three and then caterpillar, nice profits right before the opening bell this morning, and they are dow stocks, said the gain in those two stocks is helping the overall average. got it. a few airlines reporting profits as well today. a mixed reaction on the market. not much movement for american airlines, southwest and jetblue. not much movement right there. however, look who is with us. now you can smile. you were on camera. ashley webster come elizabeth macdonald, is scott martin and brian brenberg. to you first of all. what you make of these profit reports so far? good enough to justify another leg up for the markets? >> they are good enough in the best ones yet to come which is in the tech sector in the next week or two. to me, this is supporting what we say all along, which is these little pullbacks that come ever so infrequently need to be

bought and the need to stay with the leaders of this market, which is tax. you are starting to see things like 3m, boeing, other companies out there with respect to earnings on the industrial side take control here in areas that if you held off from those areas, those are places i would add money. stuart: it does take a strong stomach. if your investor in our audience, you've seen our money run up so nicely. you know that nothing goes up forever. fell a little, great temptation, surely. >> the new have 150 truck. stuart: the market is going great. up 104 points. they make the investors held back all this time. i'm just going to hold onto my cash. at some point i'll have to take the lead. stuart: i know a couple of

those. liz: at five banks, rbc comment ubs, deutsche, bank of america raised 3000 by the end of the year. stuart:.it. to since he chiming in from the background layer. forgive me, ladies and gentlemen, have to talk about the dollar. most of you don't care about the value of the dollar weather up and down. treasury secretary mnuchin says a weak dollar is good for the united states. professor brandenburg, i don't care what he really meant and i don't think our audience cares that much whether the dollar goes up 1% or down. >> this story so overblown. the critics mean we are trying find anything we can to get in the way of the good news of the tax cuts and regulations make it a good deal about the dollar. he didn't say anything that newsworthy. stuart: at the dollar goes down not very good.

global corporations. they'll make more money when the jan and pound and euro fund it back. ashley: may have to cancel your european vacation. stuart: i haven't been to europe in 25 years and i ain't going now. ashley: would they take you? stuart: home depot, the latest major corporation to hourly workers bonuses. liz: 400,000 workers have a big work for scrutinizing how many workers get up to 1000 each. the bonuses range from 200 bucks to a thousand. they're adding to a list. 241 companies factor workers. quick check of the big board. stuart: 26,348. the price of oil. sixty-six dollars per barrel.

dow component reported a profit later this afternoon. already up 1%. lower profit at ford hurt by rising commodity prices and unfavorable currency exchange rates. ford backed down to $11 a share. the missile maker that will be raytheon, strong demand for more missiles from the u.s. allies and the stock is up 1%. $200 a share. pretty much the same story at northrop grumman held by higher sales and then aerospace missions. >> a report "after the bell," giving big and bonuses as well and high wages. about 61 on starbucks right now.

how about investing in america. what is fiat chrysler saying? >> basically 4000 workers will now give out new profit sharing paid to workers. they're adding on. they really said they'll invest a lot of money in the u.s. due to tax cuts. they are adding on to it. basically going full bore stating in north america at the u.s. tax-cut give it a day. 3 million americans would you getting high wages benefit and in february, people who pay taxes get themselves a higher paycheck. that is highly stimulative i would've thought. >> it is. such a contrast compared to what we've seen. wages were never going out. every job report. now we see hundreds of these at

one time. doesn't the president is going to davos to talk about. stuart: campbell soup closing early canadian factory, shifting production to three existing facilities in united states. am i going too far saying this is the latest victory of the trump administration? ashley: 300 workers added to the growing list of jobs being created. stuart: a little geewhiz from wal-mart. they may have sold the biggest road a lot to online grocery shopping. they are letting customers choose the exact piece of produce as in the exact piece of fruit are the exact whatever it is, vegetable when they pay groceries online. transreflective dating not tender. if you don't like the look of a company swipe left and say no thank you very much. stuart: you're kidding me.

wal-mart that 106. wal-mart is the best competitor to amazon. with the stock market? >> we added to our portfolio some weeks ago. if there's one company that's going to take on amazon, one company the world is big enough to have alongside amazon is wal-mart and to the point about the effect of maybe tender, the result of picking exactly what you want. wal-mart is trying to innovate again to pick up to amazon or least they side with them, which is exactly the cuter than competing with amazon and the fact that so many locations nationwide they are beating amazon with respect to the number of locations on the street.

stuart: do know this dating site tender? at my age you don't do that. moving along, ladies and gentlemen. netflix said one wall street analyst now believes that will exceed 200 million global streaming subscribers. by 2020, about two years away, 200 million. what he said about, scott martin? >> it too low. look at the earnings report for subscriber growth was amazing. think about the number. 200 million is alive. look at the areas where they're somewhat selmer in the sense of facebook are not a paid kind of situation like netflix is. worldwide growth for netflix, 300 million seems a little low. the fact of how much content they are creating, international growth is huge going forward. if they had 200 million i would not be surprised.

liz: 113 billion market value on half a billion in net profits are that the pretty richly valued company. stuart: people will not buy them at that price. they are completely changing the entertainment world. >> it is content, content, content. this stuff is so good and on the traditional media companies are running for cover. >> they have more customers than cable right now. stuart: checkout ge. sorry to cut that off. where are they? sixteen dollars a share. headline in the "financial times." ge accounting probe deals blow. do we have any takers? anybody who would buy ge? train for less as an acquisition target it with solid south. scott martin, 16 bucks. you buy it?

>> soon. the news on ge is getting worse and worse. every week there's bad news. eventually that will stop. we saw that happen with retail in november, december, probably a trademark than anything soon around 14, 15 bucks. stuart: bryan and scott coming thank you very much. we appreciate you being here. the big hoard up again and 83 as we speak or 26,337. president trump scheduled to meet with prime minister netanyahu moments from now. we'll take you live to davos when that starts. more "varney" after this. [ phone rings ] hi, tom. hey, how's the college visit? you remembered. it's good. does it make the short list? you remembered that too.

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26,349. there are four dow stocks at the moment that it hit all-time highs or the count may rise. jpmorgan, goldman sachs, three and, all-time highs. apple wiki are ready to take on amazon in the digital bookmark it again. coming all about it, nicole. >> this is very interesting because amazon has more than 83% of the market share for these e-books. what will happen now is apple is likely to work on a new app for books. of all because ibooks like in the past like what they see in the release of the new ios 11.3 operating system. this goes way back to 2012 when apple took on amazon and the department of justice stepped in and the publishers had 450 million. this is a new one and it's going to have sections reading now, audio books on the clincher is

they hired one of the people who was the hide of amazon books and also worked at barnes & noble. they have a head honcho here to help them take on amazon. stuart: they needed. they need it. they really need it. nicole, thank you indeed. the president just chalk this right out in the middle of the immigration debate. before he left for davos he said the immigration plan allows for a path to citizenship for dreamers. how about that? the real revelation. but steve congressman lee zeldin, republican from new york feels the same way. he just check that out there. a path to citizenship for dreamers may morph into that. that is new. >> quite a huge thing to add to the debate here over immigration and we will see how it is taken. opposition amongst conservatives as it relates to ms d.

the president ran a campaign that would have given a lot of people indication who are supporting them that they would be in favor of path to citizenship. he's in favor of it, what would that past look like and secondly, what does the overall bill look like because conservatives want to see progress as it relates to the border wall, chain migration, visa lottery, case law, no sanctuary for cities for criminal acts. stuart: the president talks about a path to citizenship. a path to citizenship and you can get the walls come in the lottery gone, chain migration gone for work done in those areas and a path to citizenship for dreamers. doesn't that bring the moderates of both sides and together with enough votes to get this done or if anyone is capable of putting the gel together with president trump and were senator schumer said the president is like

jell-o and against the border wall last week and he was for a border wall. senator schumer and the congressional democrats really are the jell-o. you need president trump in the stars are aligned in a way where we can get a great immigration bill so elusive. president bush, president obama with republicans in charge of congress, democrats, every combination thereof in over a decade hasn't been able to happen. this can happen in the next two to six weeks. >> you could have a comprehensive deal. >> i would bet on it. i can't guarantee it, but it's more likely than not by the beginning, middle of march that something so elusive for so long can get done. something that all of us are celebrating is a great compromise. stuart: that would be remarkable achievement. i've got a segue now to davos. the prime minister of israel. what lesson did they say anything like this.

>> thank you very much. it's great to be with prime minister netanyahu. we developed a great relationship both as countries where it's never been stronger and i can honestly say that and also his personal friends. we have israel on many things including trade, but the big move and something that was very historic and very important was the fact that we will be moving our embassy now to jerusalem and we also know that is way ahead of schedule, but years than we anticipate having a smaller version of it opens sometime next year. so that is a longtime ahead of schedule and it's an honor and a great honor to be with you. thank you very much.

>> mr. president, i want to say something because this is the first meeting since her historic decision to recognize jerusalem as israel's capital and expedite the movement of the embassy to jerusalem and they want to say this is an historic decision that will be forever in the heart of our people, for generations to come. people say this pushes peace backward aired eisai pushes peace forward because it recognizes history, recognizes reality and built on the basis of truth. i recognize were always under that. we support completely your stalwart position on the air ban nuclear deal and you said at the disastrous deal. he said its fatal flaws not fixed, you should walk away from it and i want you to know if you

decide to do that we will back it all away. we also appreciate the fact that you confront iran's aggression with us and with other parties as never before i've never seen the electric alliance between united dates come israel as strong, as unified as it is under your leadership. the last point is you stood up for israel in the u.n. in a remarkable way, rocksolid. this is the place with israel against the united states and indeed you have told them enough is enough as you finish your first year in office, what do you say i look forward to continuing a remarkable, tremendous friendship in the years ahead and i want to express the appreciation of the people of israel to you. thank you, mr. president. >> thank you.

my honor. i have to say in the united nations, we were pretty much out on the road to misfire cells come in the united states and we heard every country was going to be against us and it was very interesting. i said you know, we give williams and billions of dollars to these countries. it amounts to hundreds of millions and sometimes into that aliens for certain countries then they vote against it and they made a very simple statement that i'm watching. i'm watching and we ended up getting 68 vote either yes or we'll take a neutral position, which is okay, too, which is essentially a guess. we ended up getting a lot of votes that virtually we were going to get non-and we give billions of dollars away every year to countries and they don't even support the united states. israel has always supported the united states. so what i did with jerusalem was

my honor and hopefully we can do something with peace. i would love to see it. if you look at the various peace proposals and they are unless i spoke to some of the people involved and i said did you ever speak about the vast amount of funds, money to reduce hundreds of millions of dollars and they said we never talk. well, we do talk about it. when they disrespect the best a week ago by not allowing our great vice president to see them and they give hundreds of millions of dollars in aid and support, tremendous numbers, numbers that nobody understands, and that money is on the table in the money is not going to non-unless they sit down and negotiate peace because i can call you that israel does want to make peace and they are going to have to want to make peace,

to or will have nothing to do if it ever longer. this is never brought up by other negotiators but it's brought up to me. i will say that the hardest subject they had to talk about was jerusalem. we took jerusalem off the table. they never got past jerusalem. we took up the table. we don't have to talk about it anymore. one point a new give up points later on in the negotiation if it ever takes place. i don't know that it ever will take place. they have to respect the process also in the fact that the u.s. has given tremendous support to that over the years in terms of monetary support and other support. we'll see what happens with the peace process, but respect has to be shown to the u.s. or were just not going any further. thank you all very much. [inaudible conversations]

[inaudible conversations] >> thank you very much, everybody. [inaudible conversations] >> thank you. good job, steve. that's not like you. >> we will see what happens. we have a proposal for peace. it's a great proposal for the palestinians. i think it is a very good proposal. it covers a lot of the things that were over the years discussed and agreed on. but the fact is that i think you know this better than anybody. whenever anybody came close because jerusalem could never get past jerusalem. when people said -- i didn't set it back, i help it. because by. because by taking it off the table, that was a tough

decision. israel will pay for that. something is going to happen. they'll do something that's going to be a very good thing. but i hope the palestinians want to make peace and if they do, everybody's going to be very happy in the end. we will see what happens. [inaudible] >> no, i didn't really read his remarks. i think i'm probably better off not seeing them. we've done a lot for them and hopefully they are going to make peace for the people. you know what, many years of killing people. many years of killing each other. they have to be tired of it. let's see what happens. i think eventually, very sound minds. i hope sound minds are going to prevail. it would be a great achievement. if we could make these between palace die in india's rails. i would give it about one of our truly great achievements.

the money is on the table. i tell you up front, we give them tremendous amounts, hundreds of millions of dollars a year. the money is on the table because why should we do that as a country if they are doing nothing for us. what we want to do for them is help them. we want to create peace and save lives than we will see what happens. but the money is on the table. thank you very much. thank you. [inaudible conversations] >> anytime they want. any time they want. [inaudible conversations] stuart: ladies and gentlemen, a lot faster between the prime minister of israel and president trump. a stark contrast between theresa may. a lovefest. how's the slander between.net and yahoo talked the united

nations and president trump think the palestinians. we will leave it there. more "varney" after this. . .

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stuart: you never know what he is going to say next. president trump is clearly the negotiator in chief and is negotiating position shall we say shifts very quickly. keeps his opponents on their toes. case in point, immigration and the "dreamers." the president was rather vague about their status, do they stay, do they go. as the president was about to take after to davos he was okay to open the door tore citizenship. we will morph into it. it will happen at some point in the future 10 to 12 years. citizenship, take that, senator schumer. the president shifted the debate. now the ball is in the democrats court. are you going to shut the government down again when "dreamers" have a path to citizenship? you will tell all the democrat

senators from trump states up for re-election that the illegals are more important than a functioning federal government, are you going so do that? the president's negotiating style is it working surprisingly well. senator schumer was in tears over the president's travel ban. trump laughed at him. called him crying chuck. now the president upped ante for citizenship for "dreamers" statement. what is the senator going to do now? the left is demonstrating outside of his house, keeping him up at night, demanding he doesn't cave again. senator schummer is trapped between the demands of the left, the demands of moderate democrats in the senate, and the president's citizenship offer. senator schummer is in a box, he is in a corner. he is the great negotiator has put him there. the second hour of "varney & company" is about to begin. ♪

stuart: i think we got new home sales numbers. not as important as existing sales but new ones count. ashley: they're about 10% of home sales where exist something 90%, but they are down in december at 625,000. that is down 9.3%. we did have a record number in november which hit a decade high. but we're seeing perhaps a bit of a slowdown in the market, in the housing market. we talked about it before. tight supply. prices are going up. hard to get into the market right now. stuart: maybe the new tax bill as well, which affects upper income, 1% houses. what about mortgage rates? liz: continuing to climb. 4.15% for a 30-year. freddie mac is now saying may not see the mortgage rates in the 3% handle for some time. inflation is firming. they're also saying the labor markets are tighting. so it means upward pressure on long-term rates on 30-year

mortgages. stuart: 4.15%. a significant jump from a couple weeks ago at 3.9. liz: highest since last spring. stuart: check the big board. we lost much of the rally we opened with this morning. we were up over 100 points. now we're up 51 but beginning to climb back. 26,300 is where we are. the count is still the same, four dow stocks hitting all-time highs. jpmorgan, goldman sachs, 3m, nike, all-time highs. there is also all-time high for netflix. there is dow stock, another high there. $260 a share. we will talk about that in a second. oil, $66 per barrel. immigration, or back to it i say. president says "dreamers" could get a path to citizenship. roll the tape. reporter: citizenship for dream officers. >> it will morph into it will happen. over a period, over a period of 10 to 12 years. stuart: that i is new.

sarah flores, justice department public apfairs director joins us now. i think that is new. i think president chucked that on to the table and senator schumer is in a corner. what say you? >> the president is great negotiator as we know. we have the president saying immigration policy is national security policy. that is what we learned last week, the report came out finding 3/4 of those convicted of international terrorists were foreign-born. let's fix the immigration system. end the illegal immigration coming through our borders. stuart: sarah, sorry to interrupt but i do think this is new. i think the president has advanced the debate because it is the first time that i can remember where the president is using the words citizenship and linking it to "dreamers." >> well but i think what he is doing here as well is what you said earlier. he is telling the democrats on the hill, look, what if you get everything that you want on this? then what about chain migration?

what about ending the visa lottery? what about building the wall? what you will find they may not be willing to come to the table even when they do get what they want. stuart: okay. the justice department threatened to subpoena officials from several cities. they sent letters threatening to subpoena them, these sanctuary cities. what is the end game here? can you see mayors and or police chiefs walk out in handcuffs? >> well we're urging these cities to please reconsider these policies. the last administration identified a number of cities they thought were out of compliance with several law. we identified several more. we have 23 cities we sent letters to yesterday asking for documents and their policies showing whether they were in compliance with federal law. they're taking your tax dollars and then, they're turning around and refusing to cooperate with federal law enforcement. in the case of kate steinle a tragic case where san francisco encouraged illegal aliens to come to their city. they had criminal illegal aliens

they refused to turn over to i.c.e. for deportation. and then a young woman died. so what we're saying is, just cooperate. talk to the immigration and customs enforcement officials. let them do their jobs in safest way possible. which means picking up criminal aliens from the jail. not tracking them down on the streets. actually telling us when you have someone in custody. this isn't, you know, a huge lift and yet it turned into such a political football. we're saying give us the documents or we're going to subpoena you. stuart: got it. fox news's sean hannity he said last night that the justice department started recovering some of those missing texts between peter strzok and lisa page. can you confirm that the justice department is beginning to dig in and finding them? >> well as the attorney general said at the beginning of this, we have a review ongoing. we'll leave no stone unturned to figure out how the texts weren't preserved in the first place, to find whatever missing texts we can recover. as soon as we have information

on that we're going to be able to provide those texts to congress. stuart: okay, have you found them? there are 50,000 missing texts. have you found any? no the inspector general is doing that review and i expect we'll hear shortly from him on that. stuart: do you know if you found any? >> i have no news for you on that front, stuart. stuart: we'll leave it at that. thank you, sarah, thanks for joining us. come back soon. interesting subject. >> okay. stuart: back to the markets, where are we? up 69 on the dow. look at this, 3m and caterpillar. 3m up over three bucks. caterpillar is down over three bucks that having some impact on the dow industrials because 3m and caterpillar are both dow stocks. come in gary kaltbaum, of kaltbaum capital management. all right, gary, you have seen all the profits reports we're seeing so far. are they good enough to justify another leg up for the stock market? >> not sure. you have to realize something, stuart. we're up 8,000 dow points in 15

months. that is good enough for about five or six years of gains. so we'll see. caterpillar's sales growth last four quarters went from 4% to 35%. so the numbers are darn good. the question is, has the market factored it in? remember caterpillar sup 50 to 60% in the last year. maybe too far too fast. but the market still in good stead. i'm noticing housing stocks may be topping today. overall the market is in good shape, notwithstanding pullbacks that happen anytime. stuart: thanks so much, gary. listen to this about netflix. we'll put it on the screen in a second. netflix is at all-time high. it is $261 per share, as we speak. that is awfully high. would you buy it at 261? >> i think pullbacks you can buy it. i'm not so sure here. but i have to give you a couple numbers, stuart. 11 years ago, netflix announced

streaming video. the stock is up 7600% since then. blockbuster, down 100%. what does that tell you? you either get with it or you go bye-bye. amazing story of staying ahead of the game and innovating. i think the stock will go higher over time. i think here it is up 60 points in the last week or so because of earnings, maybe on pullbacks. what a great story of innovation. stuart: it is just astonishing, gary, isn't it? i don't want to spend at that much time but we sit here constantly amazed how much higher some of these already high stocks are. i mean, have you ever seen anything like this before. >> oh, we've seen it. have to remember something here. there is a rhyme and a reason. these companies are, what they call them category killers. whether it is home depot and lowe's, building improvement product retail, or amazon, or apple with the phones, this is happening right now. i suspect, you know, with the

great things going on in this country, we're always coming up with new things. there will be a lot more whether in medical, technology, or who knows what, we'll see more of this as we move forward. stuart: my bet is on medical. >> oh, yeah. stuart: gary, thanks for joining us. we'll see you again soon. >> pleasure. stuart: all right. buying an lg washing machine will cost you more. how much more? liz: 50 bucks more for the pair. stuart: why? liz: because the president will slap tariffs on white ware. whirlpool which is u.s. manufacturer, complained to the trump administration reports indicate, that lg and samsung is undercutting it, hurting u.s. jobs. the trillion administration is responding. 50 bucks doesn't sound like a lot on washer dryer pair. stuart: helping whirlpool, make in america. they're up $183 a share, up another four bucks. this is 2 1/2%. liz: one of the first

indications of a foreign manufacturer responding to the tariff. stuart: got it. now this. let's see on the left-hand side of your screen shortly is the so-called "field of dreams" in dicerville, iowa. perfect on the right. the field now after vandals drove all over it. they left tire tracks on the grass, infield. damaged the sprinkler system. they have not caught unfortunately. ashley: they will get them. stuart: president trump will talk to robert mueller say as long as it is okay. one of the president's most vocal supporters think about that? we will ask david bossie later this hour. next, can you believe americans drink $1.6 billion worth of patron tequila in a year? $1.6 billion worth. i'm sorry. i find that fascinating. jon taffer knows a thing or two about the bar and restaurant business. he is going to explain, patron 1.6 billion, after this. ♪

stuart: we have lost much of the rally but we are up 40 points at 26,300 right there. majority of the dow 30 on the upside. they're in the green. the price of gold, interesting point, almost exactly the same price as amazon stock. 1362 bucks per ounce. home depot, the latest company offering bonuses as a result of the tax bill, however, as nancy pelosi said, just, it is all just crumbs. who could forget that. ashley: pathetic. >> in terms of the bonus that corporate america received versus the crumbs that they are giving to workers to kind of put the schmooze on is so pathetic. stuart: hmmm, pathetic crumbs. jon taffer, "bar rescue" host joins us now. here is a guy who knows

business, run a few businesses in his time. i want to know exactly what your reaction was. when you first heard that nancy pelosi dismissed bonuses as crumbs go. >> they are not crumbs to the employees who received them. last time i was on, stuart, we talked about you who the tax changes would impact the restaurant business and we talked about trickle-down, well, we're seeing it. there is interesting philosophical difference. legislators who voted against a tax bill didn't trust the actions of corporate america. they're untrusting but those who did vote for it trust those individual and here's the result. hundreds if not thousands of companies are spending hundreds of millions of dollars going down to employee levels. but, stuart, it makes perfect sense. when you have dollars to invest in your business investing in your employees is always a part of that. stuart: especially when good employees qualified labor, is very hard to find. keeps them in the fold. give them more money, doesn't

it? >> you bet. of course this is happening and now it is a trend. the large corporations started it. the great part, stuart, i'm seeing it on the street in small businesses this is really trickle-down at its best. stuart: got it. i got to talk to you about patron tequila. as you know, bacardi is buying them for $5 billion. why is patron worth so much? >> well, first of all, these brand perform in two place, on premise, in the bar and restaurant industry or off premise, in liquor stores where it is consumed and other places. patron is a very strong brand in both places. as you just said it does well over a billion dollars a year in sales and these brand now have extensions, special reserve editions, special aged editions, small batch editions. so they will take this brand, they will expand it, and they will create far more revenue for it. there is a portfolio element too, stuart. bacardi owns gray goose vodka,

dewers scotch and now patron tequila really round out their portfolio as well. stuart: if we're all drinking more tequila, what are we drinking less of? >> you know the industry shifts. vodka has been taking a bit of a hit lately. whiskey is huge. what is interesting, distilleries and brand, most americans have never heard of, stuart, selling for hundreds and hundreds of millions of dollars. the spirit industry is hot. there is a lot of dollars spent on brand, but keep in mind, these brand last a long, long time. stuart: if the spirits business is hot, what does that say about the consumption of beer or, say wine? >> well, it is interesting, millenials, when we study millenials we're finding millenial beer consumption is going down, wine consumption is going up. so right now the weak spot seems to be on the beer side. stuart: what is your guess on the next big spirit drink? >> well, you know, we've seen a

lost flavored whiskeys. we've seen bourbon explode. we've seen vodka explode. we've seen tequila explode. i think the trend of flavored spirits and knew extensions of spirits will continue. we're also finding that the very high-end mixology, stuart, makes five or six minutes to make you a drink, we're finding pendulum is springing back to high quality, not a five-minute cocktail. stuart: i predict begin and tonic. the queen drink -- gin and tonic. >> i think your background might have something to do with the gin choice. stuart: don't be such a stranger. hadn't seen you in months. come back soon. >> promise. stuart: when i say something different, i mean something completely different. ashley: yes. stuart: minnesota vikings fans still upset they lost to the eagles. they will sign up as

uber-drivers to take eagles fans to the wrong locations when they are in minneapolis for the super bowl. i am serious and uber is taking this seriously. ♪

stuart: watch what happens when you ask amazon's alexa who will win the super bowl? roll tape. >> who is going to win the super bowl? >> i'm flying with the eagles on this one because of their relentless defense and momentum they have been riding off their underdog status.

eagls, eagles. stuart: what? liz: apple siri going for the patriots. stuart: the patriots five-point favorites. i got that one. next case, eagles fans going to the game in minneapolis should be aware of vikings fans driving uber about cars. what is this all about. ashley: i know you hate the story. kind of amusing. maybe this happened to the vikings defense last week, they got driven to the wrong stadium. ha. this one, from a minneapolis from a vikings fan i'm signing up to be uber driver just for the super bowl. it will be fun driving eagles fans in wrong places this one came out, who wants to become a uber driver for me just for the super bowl, to drop eagles fans entirely wrong places. funny, yet, uber's whose reputation is on the line. don't worry, takes a couple weeks to get through the process

to become an uber driver. even if you do, we have gps so we track what is going on. there you go. stuart: can we move on? ashley: that is a great story. liz: i love it. ashley: the story of the day. stuart: i like this one. listen up to this one. we got a clue into one of the great mysteries, a clue to the solution of that mystery may have been found, this is about the escape from al quatres. liz: no prisoner thought to ever, ever escaped from alcatraz. one of the guys who thought to escaped thought to written a letter in the possession of the san francisco police department at the richmond station back in 1919. here is the letter. my name is john england, i escaped from alcatraz, with my brothers, clarence and frank morris. i'm 83, on cancer. we made it on inflated rain quotes. broke through the vents in the prison. and you know, tunneled through

with inflated raincoats. stuart: we're taking this as legit. liz: fbi reopened the cold case. they say it is inconclusive. trying to match the dna on the letter with the handwriting this is fascinating, escape from alcatraz. these three guys may have done it. >> now that is a story. stuart: president trump in davos selling america first, economic security as national security, and tomorrow, is what i call his biggest economic speech to date. that is a big theme on this program over the next 90 minutes. you have got to stay there. preorders for apple's homepod start tomorrow, 50 -- 350 bucks, more than amazon and google speakers combined. a former executive on whether apple is still a great innovator.

stuart: it has been an up and down market. up 100, up 15. now up 77, up and down. big tech names, always check them, you have to, will you look at this. i do believe they're all up with the sole exception for apple which is down a buck 40. homebuilder stocks, not doing well. december, new home sales, fell more than expected. the new homebuilders are down. check apple. why? because your next guest says, buy it. that is a strong statement with apple at 1 72. you buy it at 172, tell us why. >> apple ace great long-term hold for investors. they have a strong balance sheet, very low debt ratios, tons of cash. they have invested a lot in china which with the global

economy doing what it is doing, it will start paying dividend for them. i like the recent announcement of them investing $350 billion into the u.s., into new campuses and to their employees. anytime you invest in your employees you create loyalty, a better work environment and at the end of the day i think you get a better client experience. stuart: if i expect it at 172 now can i expect it to go to 190? >> yes. stuart: thank you. bank of america. tell me why. >> two years ago i told you if we got corporate tax reform that would be a catalyst for the largest expansion in u.s. history. stuart: in the economy overall? >> absolutely. i believe that is going to happen. i believe one of the biggest benefactors next three to five years are banks. bank of america will benefit because of their large client base. you have, interest rates starting to rise which is fantastic for banks. you have regulations that started to become lifted from the banks as well too. and the global economy, doing

what it is doing here in the u.s. and overseas is just a perfect equation to be buying banks. that is probably my favorite sector. stuart: if i bought bank of america at 32 can i expect it to hit 40? >> absolutely. stuart: very good. you're answering all my questions here. how about exxon, i know you like it. you buy it. what is so good about it? >> exxon is boring stock. i love dividend paying stocks. stuart: what is the yield? >> 3 1/2%. higher than the 10-year treasury. i like energy sector on top of that. that is another reason why. exxon with company with strong balance sheets. i think dividend is very safe. you get 3 1/2% yield. you get appreciation on the upside as well too, over the next couple years. with the growing economy i think that is positive for energy. energy did not have a great year last year. so it is contrary yay play on that too. stuart: you would buy apple, bank of america and exxon. but would you buy general electric at say $16 a share. >> absolutely not.

this market is too good with too many other great opportunities to buy. general electric is trying to catch a falling knife. there are too many unknowns out there. i think they have a lot of headwind ahead of them. they have to restructure their company. look to cut debt. i think if they're not able to do that, even though they already announced one dividend cut, i'm not so sure this dividend is safe at this level, if they continue to spiral down. i would rather put my money to work in strong balance sheets with better up side. stuart: i'm smiling. sharp edged, love apple, bank of america, exxon, ge, wouldn't touch it with a 10-foot pole. >> great time to be investor. stuart: really is, no question about it. >> absolutely. stuart: eddie, thank you so much. appreciate it, sir. >> thank you. stuart: i want to get back to the immigration debate and the "dreamers." the president says they could have path to citizenship as part of a deal with democrats. arizona congresswoman martha mcsally joins us now.

martha, i thought that was a real bombshell when the president chucked that on the table, a path to citizenship for the "dreamers" as part of the immigration debate. would you accept that? i don't know where you are in the republican party, would you accept a path to citizenship? >> i think what the president is doing showing he is master negotiator and he has been negotiating in good faith throughout this disasterous shutdown with a fake deadline and beyond. the president has been clear that he supports my bill in the house which does not provide that, but also addresses the root causes of why we have a daca population in the first place and makes sure we prevent it in future. stuart: he may have said he will support your bill in the house which doesn't include the path to citizenship but negotiating position changes all the time. >> but here's the issue. what we have, we have to get 218 in the house, we have to get 60 in the senate and something signed by the president. he already rejected the very weak bipartisan proposal out of the senate which i appreciate, saying that is dead on arrival.

he said he supports our bill over here. their bill is over there. what i think he is trying to do, i talked to a key white house official this morning, he is trying to drag the senate to the right to show look, i am willing to negotiate but i want my key objectives of the american people accomplished. end chain migration. end the visa lottery. strong border security. including wall and everything we need. stuart: you're running to the senate seat in arizona. you're one of the candidates as a republican. >> i am. stuart: if you win and you're in the united states senate, would you accept the following deal, yes, build the wall, yes, end chain migration, yes, end the lottery, in return for a path to citizenship for a whole lot of "dreamers"? would you accept that deal? >> well, the proposal i have i think is strongest proposal. stuart: i know, i know. come on, positions change. >> i know. we're negotiating. so, we -- stuart: surely you could get moderates of both side together to agree on that deal.

surely, that is the makings of a deal. would you support it? >> i think i would have to look at details. we have got to work with the white house. we have got to make sure we don't have another daca population in the next five years. stuart: understood. >> we're trying to drag the senate to the right right now. they are woefully having like weak proposals. our proposal is the best proposal but as he move that forward, i think we have to be open as the president is, if we can get the root issues addressed. >> got it. >> strong border, ending chain migration and the visa lottery. these are big policies for the next generation. stuart: you have to accept the other side. you have to moderate with the "dreamers." >> i hear you. i hear you. we're open to the negotiations in good faith. stuart: martha mcisly, short and sharp, to the point, we appreciate you being here. >> thank you, stuart. stuart: to president trump he is in davos. earlier he met britain's prime minister theresa may and

israel's prime minister benjamin netanyahu. retired general jack keane, fox news strategic analyst joins us now. you have got to love this. president trump striding across the world stage, king of the hill for the moment, what do you say? >> i'm glad he is going to davos. he is walking into the den of the global elitists to be sure, something a president hasn't done since over a decade. but i think he has a story to tell. you know, one unemployment is so low, it is almost full unemployment. wages are starting to rise. our gdp is creeping towards 4% of all things, and our stock market is measured in the trillions of dollars since he became president. stuart: sir, i tell you why i like it. here's our president who is just commanding the world stage and he's telling the europeans, here's how you do it. we're returning to prosperity. here's how we do it.

why don't you look, watch what we're doing. that is what i like here. the prestige that the president of the united states telling the europeans how to do it. >> well you know, he would be the number one subject at every social gathering if he was not there because i have been to europe multiple times, to the middle east and to the far east. all, since he has been president, and all those leaders in those countries across the globe want to talk about is the president of the united states. now he is going to be there himself. in his own words, so to speak. i think that is invaluable. just to meet with other heads of state he will meet with is good for him and good for the, good for the global security and stability situation but to go actually there explain what subpoena haing to america's economy which obviously is tied to the world economy, i think is very beneficial. stuart: sir, cia chief mike

pompeo says, north korea is moving even closer to putting the u.s. at risk. what say you to that, sir? >> well he told us, with just a few months away from a nuclearized icbm north korea which means, i think, stuart, i think, and i'm not sure the president is getting all the options he should get but i absolutely believe we have to double down now and what am i talking about? number one, offensive cyberattack on north korea. take down their information systems, their command-and-control, their finances and energy infrastructure. number two, blockade north korea. shut off the backdoor where they are getting oil and other commodities which we know for a fact is going on. number three, start building up military in the theater so the north koreans see we're serious about a military option. number four, stop sending families to south korea with our military soldiers.

start preparing for evacuation of all americans and start talking about this. this gets inside the head of kim jong-un. what pompeo said the other day which i truly paid attention to, he believed that kim jong-un is rational actor, rational. if that is the case, put rational, reasonable means in front of him and he will not act irrationally. we can start standing this guy down once and for all. stuart: that is fascinating. general keane, thank you very much. >> good talking to you stuart. stuart: talking about oil up for the fourth day in a row. jeff flock at the cme. i see oil at $66 a barrel. that is a three-year high, jeff. and we're swimming in the stuff. what do you make of this? reporter: we're swimming in it in one regard, stuart but 10 consecutive weeks in drawdown of

u.s. supply. we're up 74 cents right at the moment. we're high as 66.66 today, which our biblical scholars may point out that is a devilish sign but the economy is booming. our demand continues to grow. that is why we have 10 consecutive weeks of drawdown. that is what the market is seeing. talk out of davos of weaker dollar. that is bullish for oil. i don't know where it end. there we are. stuart: 66 bucks, jeff flock, see you again later. president trump, says, yes he will talk to robert mueller as long as it is okay with his lawyers. he says there is no collusion with the russians and no obstruction of justice either. we'll deal with that in a moment. add home depot to the growing list of companies giving bonuses to employ thanks to the tax bill. grover norquist take as victory lap on this in our next hour.

♪ ashley: the justice department is cracking down on those sanctuary cities. 23 of them have been threatened with subpoenas. judge napolitano says, it's just the opening salvo. roll tape. >> i don't know where it is going to lead us but i know what's happening. these are letters written by an official in the justice department saying, this to

remind you you have the following obligations under federal law. if i.c.e. comes knocking, you can't answer incorrectly. you have to answer. so please tell us how you're complying with i.c.e. none of these letters have been answered because they were just delivered yesterday. stuart: okay. >> i think that the purpose of the letters is to foment some litigation out of which subpoenas will be issued, so that the federal government can actually get under oath and on the record. ♪

stuart: check the big board. we're up all over the place today. now we're up 102 at 26,354. ashley: haven't finished your muffin? stuart: i haven't finished my muffin. ashley: i fav the secret away. stuart: look at this. neck-and-neck, the price of gold per ounce, 1362. the price of amazon's stock, 1364, neck-and-neck. you ever seen that before? no, you haven't. president trump's -- that is the muffin talking. president trump says he is willing to talk to special counsel robert mueller in the russia probe. roll that tape. >> there has been no collusion whatsoever. there is no obstruction whatsoever. and i'm looking forward to it. i do worry when i look at all of the things that you people don't

report about with what is happening. >> reach a higher standard you would do it under oath. >> i would do it under oath, absolutely. stuart: david bossie with us, author of that book, "let trump be trump." he is joins us now. that is fairlying a agressive stance by the president, no collusion and no obstruction of justice. i will talk to mueller b what do you make of that? >> i think the president is saying exactly what he has been saying for many months. there is not a scintilla of evidence that this campaign colluded or cooperated in any way with russia. there is no evidence to prove it in the public eye or elsewhere. it is ridiculous. that is what the president is saying. i think he goes on to say i will talk to mueller because he wants to get this over with to get to the business of making america great again. i got toll tu,, i got it tell you, i was advising him on this and ran the investigations of the clintons, i was on the other side, ran the congressional

investigations in the '90s, you know i think the president should go carefully. i think the interrogatories is really i think, his lawyers need to do a good job of discussing with mueller what the scope of it is going to be, the questioning, then get the questions in writing. then let the president answer under oath back in writing. think that is very good middle ground. stuart: okay. now you say that the trump team should prosecute california's attorney general for not enforcing immigration law. so you are taking a strong stand on that? >> without question. look, i'm tired of these left-wing lunatics around the country deciding that they're going to pick and choose what laws to follow. this is, this guy out in california, this former congressman that is now the attorney general sneads to be made into an example and, that is what law enforcement is b they pick and choose. i think that attorney general jeff sessions nodes to lay down the law.

need to say to states attorneys general, you will follow the federal law. you can't pick and choose. people don't, in california, they don't get to pick and choose what laws they want to follow because their attorney general will prosecute them. so you can't do the same thing just because you're an elected official. stuart: seems like california is a different country from the united states. i say that for good reason. there is this movement so that, illegal immigrant can walk into the dmv, get themselves a driver's license, and at that point they are automatically registered to vote. that is outrageous, david. >> it is outrageous. that is one of the things this president has said when he was campaigning and since he has been president. we are a nation of laws and the laws that are on the books, the ones that barack obama looked past and didn't want to prosecute, we're going to make sure that every law is prosecuted and is stood up on. that is what he is telling his

attorney general. look, this attorney general, jeff sessions is a law and order man and that is how he came into the job and that is what i think he is doing. those letters he sent in the last few days, i think is the prelude i hope, to some prosecutions. stuart: got i, david. strong stuff. let trump be trump. david bossie, thanks very much for joining us. >> thank you, stuart. stuart: next case, we take you to the border where the greenies are gearing up to fight construction of the wall. we'll tell you what the gripe is. next hour, martin feldstein, former reagan economic advisor. says the market is due for a fall. we'll let him make his case at 11:45 this morning. martin feldstein. of the ♪ and in the nation, we need to work together. we need to do it more often to help people that need help. ♪ ♪ i'll stand by you.

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stuart: well all that talk about a border wall heats up, well, so does the opposition from the greens. casey stiegel standing by. he is near the border. casey, you will tell us what is wrong with the wall from the environmentalist point of view. reporter: yeah that's right, stuart. you know the border terrain on the border here in texas is so unique, and for context and perspective, let's now cut to a live picture of the fox news drone we've got out here.

it is ascending, looking out that way over toward mexico. so you can see, no wide open desert here, which is why environmentalists argue constructing that fence could pose some unique challenges. tucked away in south texas is a place unlike any other. >> this has the largest diversity of plants and animals of any refuge in all of north america. reporter: the santa ana wildlife refuge spans 2,000 acres along the mexico, texas border. segments of president trump's wall are supposed to be built here. >> the refuge was built to sustain wildlife in 1943 will become a deathtrap. reporter: he says it will put them on a island and limiting food supplies, trapping them in a flood sown with nowhere to go if the water gets high. >> if the border patrol says we have to have a wall, we'll live

with the wall. reporter: frank's border ends where the international border begins. >> right here. reporter: right where you're standing donald trump's proposed wall would be built? >> right here, yep. reporter: frank is torn. he is sympathetic it environmental concerns and he would lose roughly 1000-acres of his own land. yet, it is a sacrifice he is willing to make in the name of security. >> my granddaughters play in the backyard back here. couple hundred yards away from where the wall will be. they will be more secure, hopefully, we think. reporter: now legal challenges are already stacking up in court. various environmental groups, not just here, in texas, but in other states that share a southern border, trying to do anything they can to halt construction or at least buy them some more time. stuart? stuart: we heard it loud and clear. casey stiegel, right.

president trump, half his cabinet in davos, they're shaking things up and moving markets. davos forum has never been as interesting as it is now. that is a fact. we'll be back. copd tries to say, "go this way." i say, "i'll go my own way" with anoro. ♪go your own way once-daily anoro contains two medicines called bronchodilators, that work together to significantly improve lung function all day and all night. anoro is not for asthma . it contains a type of medicine that increases risk of death in people with asthma. the risk is unknown in copd. anoro won't replace rescue inhalers for sudden symptoms and should not be used more than once a day. tell your doctor if you have a heart condition, high blood pressure, glaucoma, prostate, bladder, or urinary problems. these may worsen with anoro. call your doctor if you have worsened breathing, chest pain, mouth or tongue swelling,

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stuart: a year ago the left really thought president trump would be out of office before the end of his first term. they would resist his every move, he was not fit to be president. impeach him! well, look at him now. our president strides across the world the center of attention. he's the guy with the new ideas. he's the guy who's shaking up the old order. pay attention. for years the davos economic forum has been an intellectual gab fest, boring and irrelevant. and suddenly, trump arrives, and he brought half his cabinet with him. talk about taking over. treasury secretary mnuchin, he's ruffled the currency markets already. commerce secretary wilbur ross has poked the chinese on trade.

the energy secretary has told them straight, america runs the energy markets these days. and tomorrow i don't know exactly what the president will say, but it's certain to be about a very new american approach to the world. ironic, isn't it? when donald trump was just a business guy, the business guys of davos didn't want anything to do with him. he was never invited. now he's president of the united states, and they are paying attention. the response so far has been weak. emmanuel macron, the president of france, has talked about the crisis of globalization, but he's not sure what to do about it. and he's scared of trump's tax cuts which threaten to bring european money to the united states. and angela merkel, the german leader who changed europe forever without asking anybody, now looks on with vague protests about america's isolationism. this president has engaged with the world. he's on your turf, and he is the center of attention. who would have thought?

the third hour of "varney & company" is about to begin. ♪ ♪ stuart: as we've been saying for the last 90 minutes, the market's been all over the place. up 100, up 15, now we're at 95. come on in, please, ron carson, with the carson group. frequent guest on the program. joining us from the midwest, i might add. all right, ron, we've got all these profits reports coming in. are they good enough, strong enough to give this market another leg up? >> you know, they may be, stuart. the fundamentals are fantastic. but it's measure just earnings. -- more than just earnings. earnings are coming in, they're better than expected, but i would say the business climate is really positive. i mean, leaders all the, heads

of businesses, you see the tax cuts coming and additional payment for their workers, but they also can make investments now feeling like the tide has turned away from all the bureaucracy that was anti-business that all of a sudden we've gone from a tremendous headwind to a tailwind. and if you remember one thing, remember this: pro-business is ultimately good for the market. volatility in 2017 was the lowest ever. one thing that we're certain of, it's going to be higher. however, the fundamentals underpinning this market are pretty good. but beware that we will have downside corrections. that's one thing that has not changed in this market even though i think some people think maybe it has. stuart: okay. now, our viewers, i don't think they care that much about movements of the u.s. dollar up or down unless it's dramatic and it's very sudden. well, the dollar did drop after treasury secretary steven mnuchin said a weak dollar might be good for the u.s. economy. when you're investing, do you

pay attention to the value of the dollar and its movements day-to-day? >> not at all day-to-day. you want to know what the general move is going to be. i mean, one of the things that is really a paradox right now is the u.s. is actually increasing interest rates while other central banks are declining or cutting rates. and so, you know, something's going to have to give. and then we've got the yield curve all of a sudden which i think is a bigger deal, it's pretty doggone flat. 210 on the two-year treasury, 292 on the 30-year, and it is, you know, the dollar's less of an issue. more importantly, you know, where are interest rates going to be 6-12 months from now. i think that's going to surprise people. just a 1% drop, matter of fact -- or 1% rise on interest rates in the 30-year treasury means nearly a 20% decline. people are lulled into not caring about interest rates, and all of a sudden they could be taking equity-like risks with virtually no return. stuart: okay, understood.

i know you are a fan of royal dutch shell. is this about america's energy dominance, that you like that particular stock? what's going on with that? >> we really think that energy could be much higher. oil prices specifically than most people think. but let's just say they don't increase. i think you get a free option on royal dutch. back when oil was $100 a barrel, royal dutch generated about $5 billion in revenue, and here we are at $17 billion with oil in 2017, half that amount. so they just reen-- reinstated their dividend, a 5% dividend. the company has been restructured, and we believe that it's a good investment today. and if oil goes up as much as we think it could, then it would be an excellent investment. stuart last one more you, ron. you're there in the midwest. do you like to see our president striding across the world stage in davos shaking things up?

do you like it? >> i love it. matter of fact, you know, he's the first president since 2000, i think clinton, at the world economic forum. and, you know, i just like trump's style. i mean, you can argue about some of the other stuff with trump, but the thing i love, he's a businessman. he's done it on his own. he understands that really the united states of america is the biggest business in the world, and we need to start making smart business decisions. so i love it that he's there, and i love it that he understands what it's going to take to continue having america grow at a much faster pace than it's grown over the last few years. stuart: ron carson joining us from nebraska, what a pleasure. you'll be back. >> thank you, stuart. stuart: check this out. apple, the price thereof. it did recently announce a big investment in america after the tax plan passed. our next guest used to work there right close and up with steve jobs. our guest is andy cunningham,

author of the book "get to aha." welcome back to the show, good to see you again. >> thanks, stuart. stuart: will apple actually bring money back and build a product in america? >> well, apple is going to do what's good for apple, not necessarily what's good for the united states. and if they coincide, hey, that's great. but they're going to do what's good for apple. stuart: come on, answer the question. [laughter] are they going to bring back hundreds of billions of dollars? president trump wants them to build the iphone in america. what's your judgment? will they actually build a tangible product here? >> well, i think the manufacturing part of it may not happen here, but the other part of it, parts of it will. the strategy, the r&d, the sales, the marketing, all of the support, all those other functions will definitely be here in america. the manufacturing i still -- stuart: that's what they're doing now. i mean, that's exactly what they're doing now. >> yes. stuart: you're telling us really

they're not going to make things here. >> i don't think they will, actually. i really don't think theyil wl. iope they do, but i don't think ty will. stua: how about the new350 home pod? you can start orderingt either toy or tomorrow, get delivery the first week of february. it's $350, and that's more than the google and amazon products combined. >> yeah. stuart: i don't think it's an innovation and not worth the price. what say you? >> well, it's a very interesting product because it is positioned as a speaker, not as a personal assistant. and so, therefore, it's an extension to their music franchise right now. but here's the interesting thing about the home pod, if you remember many, many years ago steve jobs positioned the mac into be at the center of the apple -- mac into be. then fast forward to the smartphone and, by the way, the mac wasn't as good as the ibm pc, but it still thrived and became a great product. then comes the iphone, and steve jobs positioned that as

the center of the apple ecosystem, and it too was not as good as what was on the market as in the blackberry. now farce fouad to the home bod -- fast forward to the home pod. it may not be as good in many respects as the alexa or the google home pod, home, but it's better than what apple has today, and the sound quality's amazing. stuart: when you say it's the center of the ecosystem, what does that mean? you speak to it, you order from it, you do things verbally with it and that puts it at the center of your computer operation for your house? >> yes. in fact, what steve jobs said many years ago that he wanted to build appliances that people would fall in love with. the home pod is a perfect center, epicenter of a series of appliances that apple can develop into the future. stuart: i find it fascinating. i don't have one. i probably won't get one, but it's fascinating. andi, thank you very much for joining us. always a pleasure. >> thanks, stuart. stuart: sure thing.

new york city wants to become a hub for the biotech industry. it's planning to spend $100 million to create a life sciences hub. it's asking for proposals on how to spend that money. new york wants to be more competitive with boston and, of course, san francisco. two big dow stocks for you, both of them are winners. i'll start with boeing. that stock is still on a tear. it's more than doubled since january of last year. then we have 3m, that's another dow stock. that hit a record high because of strong profits. it's now up another $6. 3m at 253. we have a busy hour ahead, the former chief economic adviser under ronald reagan with us, and he says stocks are headed for a fall. you'll want to hear that. and lightbridge, they're an energy company working to pave the way for american dominance using -- wait for it -- nuclear energy. i say nukes cannot and will not make a comeback. let's say what the ceo says

about that. another day, another company giving bonuses. today home depot joins the long, long list. stay right will, the third hour of "varney & company" is just getting warmed up. ♪ ♪

stuart: well, back up again, triple dig, up 1230 points right now -- 120 points at 26,372. well, he's an uber-liberal, his name is george soros, and this man spent more on lobbying last year than ever before. he runs a nonprofit called the open society policy center. it spent more than $16 million on lobbying, and the bulk of the money was used on immigration reform. now this: home depot, that's the latest big company to give bonuses to its workers because of the tax plan. joining us now, grover norquist.

now, he's the guy who keeps track on these bonuses. give me the numbers, the very latest numbers. how many companies, how many people? >> the list has more than 250 companies, and today we crossed the line above three million, and that was before home depot, by the way. so it's three million plus home depot. atr.org/list, atr.org, we keep it updated every day. all of your listeners, if you've got a company, a small company, send it in because we add in smaller companies and congressmen and senators call those companies and want to do events with them. stuart: i get the impression, grover, that there's almost competition between companies, employees from company a they get the bonus -- >> yeah. stuart: -- and company b says, hey, what about me, what about me? they have to follow suit. we're kind of in that environment, aren't we? >> i think you're going to see

all the fortune 500 companies at some point tending to do it during the earnings report period, so it's not all going to come in january. it is going to be going from now until november and through the year. and in addition to that, the power plants, the public utilities are beginning to pass on their tax consistent through lower rates -- tax cut through lower rates. they've begun to announce because they have to write a letter saying we're going to cut our rates because tax cut. so they really have to put it in legal writing to explain. that's why. so most americans will see lower utility bills and we're now looking at 90% of americans in february looking at hair take-home pay -- their take-home pay increase because there's less withholding. stuart: yeah. let's see how they vote in november too. that's important. there are some environmentalists who want a tax on meat as a way to improve public health and limit carbon emissions. i know you're opposed to this.

here's your opportunity to rant. tell us what's going on. >> okay. our friends on the left never met anything they didn't want to tax. they just take turns. they demonize something, and they want to tax it because they want the money, but they also want to run your life. and they don't like meat, okay? and they don't like farmers, ranchers, they don't like you, and they just say -- we've never been closer, was the quote they had, we have never been closer to a meat tax. i think the idea of taxing meat beyond the sales tax is a nanny state micromanagement that is beyond the pale. i think if people talk about this long enough, people will lose elections over it, and i think that's a good idea. stuart: yeah. all right. very good, grover, you got your point in there, lad. well done. grover, we'll see you again real soon with an update on that list, please. thank you very much. >> absolutely. stuart: you got it. alex azar has been a frequent guest on this program. the senate confirmed him

yesterday as the health and human services secretary. he's the former president of the u.s. division of eli lilly. got it. now, we've got seven dow names, we started out with four, now we have got seven hitting all-time highs today. here they are: jm morgan, goldman sachs, 3m, nike, wall a mart, travelers, coca-cola. if you've got those, any of those, you have never seen your stock that high before. higher profit, better sales at mccormack, yeah, the spice people. that's good for a near 5% gain. now look at this: immigration activists protested in front of senator schumer's home in brooklyn. they're mad because he agreed to end the government shutdown without protection for dreamers. we're going deal with that in a moment. but first, this is daphne self. she's 89, just landed a major beauty campaign with a makeup brand making her the world's oldest supermodel. age really is just a number, and

i'm here to prove it. more "varney" after this. ♪

♪ [laughter] stuart: oh, sorry. [laughter] >> you can sing. who knew? stuart: who knew? that's blue moon by the marcelles. why are we playing it? the first time in 150 years a blue moorntion a super moon and a lunar eclipse will occur on the same night. it happens tuesday night -- >> that's a lot of mooning. [laughter] stuart: careful. some more headlines for you. former cia agents reportedly found a submarine that belonged to pablo escobar off the coast of colombia. he used them to smuggle coke, the drugs were distributed throughout america. they got the sub. a near $9 billion telescope hitting a big milestone. it's called the james webb space

telescope, the most expensive ever designed. nasa says it passed tests that prove it will work in the deep cold of space. they'll launch it next year. china tried to say they've successfully cloned monkeys. they used the same technique used to clone dolly the sleep in the '90s -- the sheep in the '90s. they're to be used for medical research. >> i don't know about that. stuart: japan, a team of scientists has captured a fish that lives 26,000 feet below the sea. to get the video, the scientists placed high resolution cameras on an unmanned sub they lowered deep -- as you can tell -- deep, deep, deep into the ocean. and will it is. how does it stand the pressure? >> looks like a white goldfish. stuart: more valuable than that. a british magazine has put sophia the robot on the cover featured in the latest issue of

stylist. sophia models designer dresses in a fashion spread inside, even answers questions in an interview. now you know. >> scary. stuart: yeah. [laughter] less than 24 hours from now president trump gives what i think will be the biggest and most important economic speech to date. he's in davos and, boy, he's really shaking things up like only he can. don't you love it? [laughter] ♪ ♪ we took legendary

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stuart: well, rook at this, now we're u9 points on the dow industrials. that puts us at 26,be -- 26,381 to be precise. the dow 30 showing a preponderance of green. that means they're up. president trump is in davos, of course. blake burman's there. he's already met with the british prime minister and the leader of israel. what's next on the president's schedule? >> reporter: well, you can see it's getting dark, stuart, getting to be dinner time here. the president will be sitting down over dinner with european business leaders later tonight within the next couple hours, but it was a couple pretty interesting meetings earlier

today already for the president. first he sat down with theresa may after the president had recently decided to cancel his visit to the u.k., and president trump spent part of that before the cameras trying to convince that his relationship with may is just fine. >> that was a little bit of a false rumor out there. i just wanted to correct it, frankly. we have great respect for everything you're doing. and we love your country. we think it's -- [inaudible] >> reporter: after that the president had another meeting with the israeli prime minister, benjamin netanyahu, one of his biggest allies on the world stage. and the president had this warning right here to the palestinians: >> we give them hundreds of millions of dollars in aid and support, tremendous numbers. numbers that nobody understands. that money is on the table. that money's not going to them unless they sit down and negotiate peace. >> reporter: so, stuart,

dinner tonight with european leaders shortly, then tomorrow the president will have more bilateral meetings with the presidents of rwanda and the host country here, switzerland. and then after thats it is that big speech here before crowd in davos, 8:00 in the morning on the east coast, stuart. stuart: for once in my life, blake, i wouldn't mind being in davos to see our president stick it to them. but that's another story. thanks for joining us, we do appreciate it. >> reporter: you got it. stuart: former white house press secretary ari fleischer, welcome back. i say that davos has never, ever been as interesting as it is now, and i just love our president striding across the world stage, commanding the world's attention. what say you? >> you got it. and it's interesting because donald trump is a disrupter, and he is going to the place where the elites gather to talk about what traditionally is accepted about free trade and globalism and how that benefits the world. and i think you're going to hear

donald trump make the case that it may benefit some people, but it's really hurt a lot of blue collar workers. and that was the impetus behind his surprise presidential win. and it's a remarkable thing especially for a republican to be able to go to a gathering like that and put things in the terms that blue collar workers can relate to. i think that's what he's going to do, and that's why it makes it a very interesting speech. stuart: very interesting, indeed. you're used to dealing with the media, but the media, i i think, refuses to give the president any real credit for all these bonuses being handed out and the investments that we're seeing because of the tax plan. now we've got the administration, to some degree, fighting back. i want you to listen to what gary cohn and wilbur ross are saying about it. >> if they had money in the coffers, they could have done it last year, the year before, the year before. it seems like -- not seems like -- since we have passed the tax reform plan, all of these announcements have been made. >> they have no alternative but to make up fiction, but

eventually facts overcome fiction. and i think the fella who just got a $1,000 check doesn't care what the left-wing media says. stuart: what do you say to that, ari? [laughter] finish. >> oh, boy. you know, i remember after obamacare got passed the press fell upon themselves to go up to people who got the benefits of obamacare, got health coverage and highlight them and illustrate them and make that case about the success of obamacare. and now they're doing the opposite here. they're saying, well, yeah, these people are getting these rebates, but they would have got them anyway because corporations had that money. i does show how republicans always, stuart, have to work twice as hard as democrats to deal with the mainstream media. it's just a fact. stuart: but what are we going to do -- >> the public sees through it. stuart: but look, we've got all of these companies handing out bonuses. the money's arriving in bucketloads. in february people's paychecks

go up because of the tax cuts. what's the media going to do when we've got all this money flooding into the economy, the economy is growing? do you think they'll ever change their tune? >> no. the press is never going to give credit to donald trump for these things. he's going to have to fight to take the credit, and he's got all good abilities to do so. it'll be a real test to whether he can stay focused and not distract by getting into unnecessary conflicts or controversies. but there's a lot here because the truth is on donald trump's side. the big event i'm looking forward to, stuart, is gdp for the third quarter in a row will exceed 3% which it has not done since 2007. if that's the case, it's going to be very hard for the press not to cover the story of the first time -- it never happened in the trump presidency, i mean, in the obama presidency, three quarters in a row of 3% or more gdp growth. it may very well happen in the first year of donald trump's presidency. stuart: good stuff. ari, thanks very much for joining us. we appreciate it. >> thank you, stuart. stuart: how about this?

protests outside senator charles schumer's personal home in new york. the left is mad at him for ending the government shutdown without getting what they think are real protections for the dreamers. our next guest has an article in the journal about this, dan henninger joining us now. all right, dan, i'm sure you've heard that president trump is saying there is a pathway to citizenship for the dreamers, maybe a long time coming, but he used the expression citizenship. you've got to welcome that. >> yeah. i think, by and large, we have to welcome that, though it has completely reset the immigration debate in congress. and what i wrote in today's journal was the dreamers, i think, have elevated and altered the debate over immigration. let's set aside whether it's the right thing to do, to do anything about it. i'm talking about winning and losing elections, right? and whose side are the dreamers -- whose side are people on. polls show that 74 to maybe 80% of people hi something should be done about the dreamers. they've become a household word, stuart. stuart: yep. >> previously republicans used

to debate immigration in a way that was mostly a republican issue. now it's a national issue. fast forward to the fact that look what's going ahead for us in presidential elections. donald trump carried florida which has 29 electoral votes by 1.2% out of nine million votes cast. knife's edge, right? after the 2020 census, florida is probably going to pick up two electoral votes. it's now 25% hispanic. you have nearly 300 puerto ricans come in after hurricane maria, they are u.s. citizens. they could register, they could vote. in other words, if republicans start losing florida, they'll never win another presidential election. they would have to run the table across the midwest which is losing electoral votes. what i'm arguing here is that the political math has become such that republicans have to get on the right side of the dreamer issue. and during the shutdown they basically handed the dreamers over to the democrats and say you do dreamers, we do security.

i think they've got to change that equation. stiewrl stuart but the deal -- >> and president trump did that with his announcement wednesday night. stuart: yes, he did. now, what about this deal, the potential deal? you build the wall, you end chain migration, you end the lottery, but a lot of the dreamers stay. and as the president says, a path to citizenship. that seems like a kind of a deal that could bring mod rates on -- moderates on both sides of the aisle into the middle to pass it. >> i say you have precisely described the deal the republicans should do. stuart: yes. >> those four elements. get it done and move on. e-verify, sanctuary city, metrics at the border. do that later, but get past this issue with those four elements. and i think that's probably where president trump is going, though he's going to -- as a price for agreeing to citizenship or a path to citizenship for the dreamers, he's going to ask for at least $26 billion to build that wall. if i'm a democrat, i would take that deal. [laughter] stuart: which kind of democrat

would take that deal? >> well, chuck schumer's got 75 people out in front of his house screaming at him do something about the dreamers. [laughter] stuart: dan, always a pleasure. it's thursday, that's why you're on. good stuff too. rapper 50 cent -- have i got the pronunciation right? making big bucks on bitcoin. >> wow. stuart: back in 2014 he lets his fans use bitcoin to buy hissal mum, animal -- album, animal ambition. at the time, they were worth $400,000. now they're worth $8 million. he hasn't said when or if he will cash them in. >> so cool. >> smart business. stuart: whoa, look at this, look at this, look at this, 156 points up for the dow industrials, and we have just crossed 26,400. plenty of green on the left-hand side. now we're up 158 at 26,410. look at the price of gold.

neck and neck with the share price of amazon. $1364, gold, $1368, amazon. i've never seen that before. probably won't see it again. coming up, we've got a man in the middle of the nuclear energy industry. he wants a rebound for the nuclear business. i say he hasn't got a prayer, it'll never fly, but he's on the show. next, former reagan economist martin feldstein says stocks are getting ready for a fall. we'll let him make his case. you'll want to hear this. he's next. ♪ ♪ 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. with smart, revolutionary hhearing aid technology

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the highest in almost a year, and they're continuing to move even higher. you can see the home builders today are to the downside. ♪ ♪ take off for mexico with expedia. ♪ one click gives you access to discounts on thousands of hotels, cars and things to do. like the fairmont mayakoba for 59% off. ♪ everything you need to go. ♪ expedia.

stuart: it's holding, up 169 points on e dow industrials. 26,421. get that. now get this: in-n-out burger, a very good and popular fast food

chain in california, its managers make $160,000 a year. that's on average. that's the managers. >> wow. stuart: triple the industry average. regular workers at, what is it, in-n-out burger, they make $13 an hour. that's $2.50 above california's minimum wage. they've done a survey of all their workers, 91% of them say they like where they work, and they'd recommend others work there. how about that? got a headline for you. stocks are headed for a fall. it is an opinion piece. it was in "the wall street journal." martin feldstein, chief economic adviser under president reagan, he wrote that article. didn't write the headline, but he wrote the article. [laughter] welcome. >> happy to be here. stuart: you've got to explain this. why are we headed for a fall? >> we've had ten year, almost ten years of near-zero interest rates, and so everybody reaching for yield has bid up stock prices, bid up bond prices, bid

up real estate prices to levels which are way out of line with the past. you look at the s&p price earnings ratio, it's 70% higher than the historic average. we've only seen that kind of price earnings ratio three times in the last hundred years. so it's a bit overpriced, a bit overpriced. so at some point when interest rates rise -- and they're beginning to rise -- when interest rates rise, people will be able to move out of stocks and into bonds, and that'll push down stock prices. stuart: couldn't you make the argument that profits have gone up rapidly and dramatically and are likely to go up some more because of the much lower corporate profits tax? could you make that argument? >> absolutely. absolutely. and if you -- instead of looking at the regular price earnings ratio which looks back, you say, well, profits are going to be up by so much this year, you still

end up with a price earnings ratio just way out of line with historic experience. stuart: so it's too far too fast. that's it. that's it. >> yes. stuart: okay. when do we get the pullback? >> i don't know. stuart: oh, you've got to answer. >> i don't know the answer to that. what i know is that we've got a very fragile situation, and interest rates are rising, and that combination is going to spell, at some point, a downturn in the equity markets. stuart: you've still got the yield -- talking about interest rates, you've still got the yield at, what, 2.6% -- >> that's right for ten-year treasuries. stuart: historically, that is still very, very low for the last generation. >> that's right. but it's going to keep moving up because of the deficit, it's going to keep -- stuart: i've got to say, i would have thought it would have moved up a whole lot more. i would have thought interest rates would have risen a lot more than they have. >> right. i agree with that. stuart: maybe we've got a new historical situation. >> i don't think so.

i think at some point people are going to say, ah, the game is over. we can't just buy equities. we can have a more balanced portfolio or we can shift into bonds which will be safer. stuart: okay. let's suppose i agree with you, and i do actually -- [laughter] because what goes up like this does -- >> yeah. it's amazing how many people in the markets who are usually on the sell side of the market or money managers say to me i read your piece, and unfortunately i agree with you. [laughter] stuart: unfortunately i agree with you. okay, let's suppose the market does come down. i don't know whether it comes down 10%, 20%. that's irrelevant, really. but when it does come down, do you buy the dip? >> you know, it would have to come down 30 or 40% to get back to just the historic average. stuart: are you predicting that? >> no, i'm not putting a number on it, but i'm just telling you how out of line with history it is. so if it comes down 10%, it's still way out of line with the historic norms.

stuart: see, all of our viewers they're saying, wait a minute, we know this guy. he's a very famous guy, and he's refuse ifing to say when we come -- refusing to say when we come down, how far down we're going to go and refuses to say whether we should buy the dip. >> what i'm saying is holding it now at these prices is a very risky thing. stuart: okay. i own some microsoft. we always tell our viewers, no conflict of interest here. i own a chunk of microsoft. not that much, but i own some. that's the basis of my retirement money -- >> that one stock? stuart: i'm heavily loaded -- >> a little concentrated, eh? [laughter] stuart: should i sell half of it and let the rest ride and take my money and sleep well at night? should i do that? >> if you're having trouble sleeping, that would be a good thing to do. [laughter] stuart: i never have trouble sleeping. >> i would say that wouldn't be a bad thing. but, you know, you may miss out on some further increases in the next few weeks. stuart: now he tells me.

>> but, but you will not be there when it corrects in a bug way. stuart: okay. we listen to you, martin fed stipe. we did listen to you, but i'm not going to sell half my microsoft, and i sleep very well at night. [laughter] >> very good. good being with you. stuart: thanks very much. back to california. geologists say an earthquake fault line runs below rodeo drive in beverly hills. >> wow. stuart: i knew that already. they say the fault is capable of pollution a magnitude 7 earthquake. the most recent quake on the rodeo drive fault line happened 1,000-3,000 years ago, so you've got some time to prepare. higher revenue at the missile maker, they make tomahawk missiles and a lot more, raytheon, benefiting for more demand for weapons from our allies, well up. higher revenue at northrop grumman held by higher sales in its arrow 135eus. -- aerospace.

they make parts for the f-35 fighter jet. it's expecting a lower tax rate, it's going to boost its earnings, and look at it go. $11 higher, that's 3.6%. next, i'm going to talk nuclear energy with a man who's right in the middle of the industry. he thinks nukes, as in energy, are going to make a comeback. i don't think so, but i'll let him make his case after this. ♪ ♪ (whispering) with the capital one venture card, you'll earn unlimited double miles on every purchase, every day. not just airline purchases. think about all the double miles you could be earning. (yelling) holy moly, that's a lot of miles! shh-h-h-h!

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whether you're on medicare now or turning 65 soon, it's a good time to get your ducks in a row. duck: quack! call to request your free decision guide now. because the time to think about tomorrow is today. stuart: ah, get ready for a fight. nuclear power, let's talk about this. i say it's not going to come back. our next guest says, yes, it is, because it's cheaper and safer. bring in lightbridge corporation president and ceo who knows what i'm talking about here, seth grace, welcome to the program. now then, okay, spell out -- you've got 30 seconds to make your case that you've got new technology for your company that is cheaper, safer and all the rest of it. go. >> lightbridge regards every method of producing energy as our competition, so we've developed the cheapest way to deploy electricity the grid.

deploying nuclear fuel designed by lightbridge in an existing reactor add electricity cheaper than natural gas, coal, wind or solar. stuart: okay. hold on a second. you've got the fuel. it's a new type of nuclear fuel which can be used in existing nuclear reactors, is that correct? >> that's right. or new ones. stuart: okay. but how do you fight the public's perception of nuclear power after three mile island, chernobyl and fukushima in japan? that's a heavy tide against you. >> well, by bringing something that is much safer to the reactors. this fuel runs 1,000 degrees celsius cooler in the reactors, losing the water in the reactors won't generate the explosive hydrogen gas which is what happened at chernobyl, partnering with the world's largest leading nuclear manufacturer to make this. and working with leading utilities as prospective customers that are already

advising us. stuart: okay, i'm turning the corner here. i'm listening very carefully. you're with lightbridge, and it is lightbridge new type of fuel. you developed this, right? >> we invented it, we pat tended it, and today we partner with the world's largest manufacture to make it and sell it. stuart: where do you think you're going to actually use this? where's the first -- or if i say a trial run, where's it going to be? >> exelon, duke, dominion and southern company collectively own and operate over half the reactors in the country. they're advising us. they've already notified the nuclear regulatory commission to prepare to license lightbridge fuel for use, and we expect that among those will be the first users of our fuel with first fuel rods and a commercial reactor in the united states in about 2021. stuart: well, so all you need -- and i say "all you need" -- you just need a license, you get that license, and you're in regardless of what the greens

say. >> well, it is federally licensed, and these utilities obviously work very closely with the public and care about the public as do the manufacturers like our partner, framatome, and we think working with the greens is already having an effect, actually. people like patrick moore, michael shellenberger who are leaders of the environmental movement have really turned around to come and support nuclear power. stuart: that's fascinating. you have turned me around. i'm a supporter. well done. [laughter] come back to the show, because i want to hear about this -- >> i look toward to it. stuart: well done, young man. thanks so much, sir. good stuff. >> thank you. stuart: yeah, there will be more "varney" after this. ♪ ♪

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we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be. stuart: well look at this. 164 up. we're on pace for the 10th record close of this year, and we're still in january.

the 81st record close under president trump. still just over his first year. the 98th record close since election day. the dow is now up 160 points. that is setting the stage for, neil cavuto. neil? neil: thank you, sir, very, very much. we're keeping an eye on that rally picking up a little bit of steam here. a lot has to do with companies sharing the wealth, home depot, 1000-dollar checks, could be more by the way. chrysler fiat and those bonus checks are substantially more than we heard earlier on, maybe $5500. how these things are upping the ante. we're hearing anecdotally companies want to pick up more of their workers health care costs and the like. we're also monitoring that at this company. i'm just joking. do whatever they want. let's get right to it, the dow up 163. across the board gains in