sofia is with us and she's recovering and she's walking very well. [applause] >> and i have to say this, sofia, you may only be 9 year's old but you're already a hero to all of us in this room and all over the world. thank you, sofia. [applause] >> heros like sofia come from all across our country and from every different background, but they all share one thing in common, through their love, their courage, their sacrifice, we glimpse the grace of all mighty god so today inspired by our fellow citizens, let us resolve to find the best within ourselves. let us pray for that extra measure of strength and that extra measure of devotion and

let us seek to build a more just and peaceful world where every child can grow up without violence, worship without fear and reach their god-giving potential. as long as we are true to america's founding and the example that all of these great founders have set, we can all be heros to everybody and they can be heros to us as long as we open our eyes to god's grace and open our hearts to god's love, then america will be the land of the free and the home of the brave and the light onto all nations. [applause] >> thank you for this incredible event and to our wonderful hosts and thank you to all of our

heros for serving, protecting and inspiring america each and every day, god bless you and god bless america. thank you very much. thank you. [applause] stuart: president trump right there, a religious speech, he quoted matthew in speaking to steve scalise, he used jesus' name and the theme of short speech was faith is central to american life and liberty. now this, let's get on with the show, let's get on with what's happening in the markets, could it be calming down? wouldn't that be nice. you can't yet say it's back to normal but you can say the panic level has come down several notches and so to of the wild swing. we will open in the morning flat to higher, maybe

sharply higher. that's a fairly strong move, up in the very early going. so relax, although we have to say we have no idea how this market will close at 4:00 o'clock eastern. now the government, they are going to be spending a whole lot more money, the senate agrees to budget deal that raise military spending and social spending by 131 billion and they've raised the borrowing limit for a whole year, say good-bye to any thought of austerity, in the house nancy pelosi took the hour for eight years, she wanted the dreamers to be part of the budget deal. it did not happen. two points here, the economy is about to get another dose of stimulus from all the extra government spending, from the tax cuts and maybe from infrastructure too, growth should very strong, but the deficit is going straight up. it may be a trillion dollars a year by 2019, the words death

bomb will return. lots to cover today. wait till you see twitter stock and wait till you hear the latest on hillary and uranium and obama and the fbi. varney&company is about to begin. >> all night as i was saying blessed by the pope in honor of my mother, i thought, should we say the rosary on the floor? i'm reminded of my own grandson, his name is antonio from guatemala,i wish i had brown skin like antonio. stuart: protest the lack of protection for young undocumented immigrants. come on in republican from utah, congressman, that was impassion speech, what's your take away? >> gosh, you know, it turns out that if you talk for eight hours not everything that you say is brilliant. i guess -- any time nancy pelosi

is out representing the democratic party to america i think that's good for republicans, i really do. i hope she does it every week. stuart: you're terrible, sir, you really are terrible. look, you've got march the fifth, that's the deadline for a deal on daca, i don't know whether we get a deal or not but what happens if we don't? >> well, i think that we will which is a little bit ironic about mrs. pelosi's actions yesterday. she spent the entire time on daca. we we wanted to solve that for months, frankly longer than that. i think we are going to get a deal probably next week in the senate and in the house shortly after that and it's a very generous deal. we go from 700,000 kids young adult that is we protect, the president has supported 1.8 million but you can't do that and not say, well, we are not going to protect our southern border, we are not going to look at visa lottery. makes no sense who is coming to

our country and they said abilities rather than lottery and frankly the chain migration where you bring aunts, uncles, let us only be immediate family. stuart: we will be back to you in just a second. now, the market, again, dare i say this, seems to be calming down, dangerous ground. very dangerous ground. brian brendberg business profess ohor -- professor at king's college is with us. >> i don't think this is going to calm down. 2018 is going to be a choppy year because we are trying to unwind low interest rates for nine years, that's going to be hard for investors to swallow. i think it's going to chop up, i think it's still going to be a

bullish market but it's going to be volatile this year, nobody in the history of the world has ever done this before, this monetary policy trying to unwind here in europe and asia, that's a huge experiment, very unknown. stuart: you say we are going to chop up, that means we could continue to go up and establish new highs beyond the 26,600 we reached? >> yeah, i think we are going to chop up, but, look, it's uncertain, stuart, it's uncertain. ashley: foundation isn't it there? we have a good economy in the united states, a good global economy, tax cuts in this country, companies spending more money, all of that -- it's going to be tough on the market, unpredictable but the economy and foundation is strong. stuart: you think that the stock market could accommodate a 3% or better yield on the 10-year treasury, you do? >> we are talking about 3% here, people. i understand we've had several years where that has been sort of -- that is not particularly high interest rate for a healthy

market, let's think longer term. stuart: i said we are calming down, brendberg says relax, we are going to be up about 180 points at the opening bell. now this, we've got the two-year budget deal from the senate an includes an extra $300 billion in government spending, congressman chris stewart still with us. we will be back to trillion dollar a year deficits by 2019, 2020, you republicans, you are now big spenders, sir. >> yeah, you know, this isn't good. the reason i ran in 2012 was because of our debt and our spending and it's interesting, i hold a town hall then and everybody knew the answer, 1.4, we can't go back to those days and yet at the same time i'm so conflicted, you know, i was an air force pilot. when i was flying we had 156

fighter pilots, we have 57 today. protecting our military, protecting our national security but balance that you can't ignore the fact that this debt bomb that you're talking about, we have to do better than that. stuart: i have to say that republicans have abandoned austerity. >> at this point i have to wonder. we are not going to get everything that we want, we get that, i understand that. but you can't turn away from a trillion dollar deficit and just say that's okay. we are going to have a trillion dollar deficit next year and say that's okay too. we have to do better than that. the key is what paul wants to do. you have to look at entitlement reform. you don't fix the problem if you don't look at entitlement reform. stuart: you, sir, are going to step on third rail of american

politics and that, sir, is the true. always a pleasure. >> thank you, stuart. stuart: let's get back to that market, how are we going to open up thursday morning, 30 minutes to go and we will be up today up over 100 points in dow industrials. now this, we have twitter's financial results, 12% increase in daily users from a year ago, watch that stock go up 25% premarket, that could be the stock of the day. tesla says it's making progress, making progress in overcoming production trouble with model 3. okay, the stock down premarket. what's the story here, emac, why is it down? >> they are still having problems with model 3, they haven't posted a profit yet. they posted a loss this year that was three times the prior year loss but here is elon musk to your point, remember, he sent a roadster on the rocket ship and you were saying is this a

set-up for what's coming. if we can send a roadster we can probably solve model 3 production. ashley: i don't know. liz: don't look at the losses behind the curtain, look at what they're doing. the cash flow is pulling him back to earth. model 3 production, he wants 5,000 model 3's by the end of the second quarter, they only made 1500. he wants 5,000 a week, they only made 1500 last year. that's the issue. stuart: the market does not reflect what looks like a string of negative. we will track it when it opens. new plan from ll bean, they want to start selling you their clothes at a big discount, there is a catch, the clothes will have sensors sown into them so they can track.

[laughter] stuart: now serious stuff, fbi informant telling senate that russians paid millions, that's the uranium one deal. judge napolitano coming right after. i think there are some ways to help keep you on track. and closer to home. i'm all ears. how did edward jones grow to a trillion dollars in assets under care? thanks. by thinking about your goals as much as you do.

stuart: as i said, relax, we are going to open higher, triple digit higher on the dow industrials this thursday morning, relax. okay. an fbi informant connected to the uranium one controversy made allegations against the clintons in written testimony to congress all rise judge napolitano is here. sort it out for us, tell us a timeline and a plot line? so there's an application before the federal government to permit a company owned by the kremlin to acquire substantial portion of uranium mine in utah, the application requires the approval of certain government officials among whom is foremost among whom is the secretary of state.

the secretary of state was hillary clinton, at the same time this application was made, the russians in the kremlin who tried to acquire and succeeded in acquiring uranium mine played $3 million to a pr firm that gave $3 million worth of free pr to the clinton foundation. stuart: so it's russian money, goes to an american lobbying firm. >> correct. stuart: goes to clinton foundation. >> not cash because that would be too obvious. stuart: clinton foundation, substance subsequently the uranium one, they are giving 20% of america's uranium that russians went through, that's it. >> correct, was that a bribe is the question? has the fbi with law enforcement mentality, stuart, not political mentality, not a hillary is better trump for president mentality but here is the law, was it broken invested this, we don't know the answer to that. stuart: okay, but we raised the

question, yes, we will. >> yes. stuart: newly released text message several of them between peter strzok and lisa page, this raises questions about president obama's statement that he was not involved in discussing fbi and justice department investigations, watch this. check out my 9:30 meeting on the seventh peter strzok text today page, i can tell you why you're having the meeting, it's not what you think, said page, talking points for comey, question mark, that was what peter strzok asked, then page says, yes, because potus, president of the united states wants to know everything we are doing. so wait a second, president obama says no, he never asked the fbi about any investigation, later page says the president, obama wants to know everything. >> this says more about the character of obama than unlawfullness because he told chris wallace in no uncertain

terms, i do not speak to the attorney general, i do not speak to the director of the fbi, i do not speak to anyone about individual investigations, now we have two fbi people, a lawyer and an agent and says the potus wants to know everything. is it a crime that potus wants to know everything, no, he's entitled to know everything. is it a crime for him to lie to chris wallace, no, that's why it says more about his character than it does about any lawfullness, he we wanted to mislead chris, which maybe he didn't because chris is so smart, misled everybody that was listening to the conversation, so at the time he says to chris, i don't talk to them, he knew everything that was going on. why? stuart: you answer the question. >> this was during the campaign that these events happened. stuart: would you agree that a

year ago it was trump and russia, today it's clinton, uranium, russia, obama and the fbi? >> yes, it's even worse, we now know that president obama communicated with mrs. clinton on her private server. how could he have not have known it was private server, the e-mail address that he typed in did not show a state department or government e-mail address, if they exchanged classified materials, he's exposed to the same prosecution for espionage that she was exonerated for and should be re-examined about. stuart: is this whole thing exploding? >> it truly is, stuart, in a way that we could never have imagined. stuart: if hillary had won he wouldn't know anything about this, nothing. >> correct, the lawlessness in the government, the staggering, the way people in the government violate the laws, they have sworn to uphold, you know i have been talking about this for

years, now it's -- it's available for anybody to see. stuart: all right, judge, calm down, we will see you at the 11:00 o'clock hour. [laughter] stuart: good stuff, appreciate it. how about this one? new study published in the journal, wealth redistribution is the key to solving global warming. more varney after this.

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stuart: well, look at this, cvs, they have a store in every corner in florida and they will get a big nice increase in profits because of the tax overhaul, the stock reflects that, up nearly 3% premarket, it's going up. paper published in the journal, science calls for -- the journal nature, i think -- it's called nature, got it. they call for global wealth redistribution, that's their way to fight global warming, what do you have to say brendberg? >> classic arrogance of the environmental left. what they say in the article between the lines is the developing world won't be able to develop the level that we are at where they can create technologies and innovation that is provide for clean energy, it's actually a slam against the developing world. you can want do what we have done, here is our answer, we are going to take our money and giver it to you. stuart: if we did give them hundreds and billions of dollars, trillions, in fact,

would it help? >> it would do the same thing that redistribution always does, does not create world or cleaner world. look, the best clean technologies are coming from the wealthiest places because you have the knowledge and the resources to advance. that's the answer, but the experts on the environmental left don't like that. it takes them out of the equation. >> the global warming scientists, they want to keep getting federal government grants. that's what i think. >> completely self-serving. ashley: a lot of money is being spent of areas that need help but goes into the pockets of corrupt people, look at the countries in africa, it's so frustrating. let growth and opportunity rule the way and to brian's point, if you do that you can come up with a solution that benefit it is entire world. stuart: i think we nailed that one. liz: i think we did. moving on. stuart: market opens in four minute's time, we will be there, meantime i tell you we are going

up, maybe triple digits, but not the up and downs and seesaw in the last couple of days, we will be back. (female vo) breaking news from washington as lawmakers; (male vo) raging wildfires continue to scorch parts; (male vo) allegations of misconduct; ♪ oh, why you look so sad, ♪ the tears are in your eyes, mvo: how hard is it just to take some time out of your day to give him a ride to school and show him you support him. ♪ and don't be ashamed to cry, ♪ let me see you through, ♪ 'cause i've seen the dark side too. ♪ ♪ when the night falls on you, ♪ you don't know what to do, mvo: when disaster strikes to one, we all get together and support each other. that's the nature of humanity. ♪ i'll stand by you,

♪ won't let nobody hurt you. ♪ i'll stand by you, ♪ so if you're mad, get mad, ♪ don't hold it all inside, ♪ come on and talk to me now. ♪ hey, what you got to hide? ♪ mvo: it's a calling to the nation of how great we are and how great we can be. ♪ i'm alive like you. ♪ when you're standing at the cross roads, ♪ ♪ and don't know which path to choose, ♪ ♪ let me come along, ♪ 'cause even if you're wrong ♪ i'll stand by you. ♪ i'll stand by you. ♪ won't let nobody hurt you. ♪ i'll stand by you.

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stuart: you know, i've been telling people to relax, we are not going to have the ups and downs.

ashley: tell yourself to relax. stuart: i should struck myself out because i don't know what's going to happen in the market today, it could return to ups and downs wild swings. at the opening bell it looks like a pretty good gain. we will find out now because it is 9:30 eastern time, the market just opened and we are off running and we are up 4 points. now we are down 8 points. down 7 points. down 5 points. down dead flat. so we have opened pretty much flat, the futures suggested a gain of 100 points. now -- give it time, after 30 seconds of business we are down 30 points. 24,854. that is not a wild swing, i'm defending myself here. ashley: yes, you are. stuart: step in and help me. we are down 23 points, .1%. how about the s&p? where is that going this morning? let me tell you, it is up .02%. i mean, that's virtually dead flat absolutely.

now, the nasdaq, that's a different story, the nasdaq is up nearly a quarter percent, 15 points. well above 7,000. okay, here is another important mark that has been very important for the week, that's that one. 2.87% on the ten-year treasury, yield is up. that caused the problem earlier in the week, we are higher now at 287, let's see how the market moves on. tesla, elon musk says, they are making progress building the model 3. the stock is down a buck, down 70 cents, 344. now twitter, now there's a story, they reported -- i don't know -- did they report the first net profit? that's right. but year over year their daily active user rate went up 12%, that's why the stock is way up this morning. look at that. that's a break-out. who is with me? who wants to do -- ashley webster, elizabeth mcdonald and

brian brendberg and scott martin, scott, would you say the worst is over? for the next few days probably, stuart, unfortunately there's still a lot of things unwinding under the surface, we talked a lot about volatility et if he recollects' that are -- etf's that are out there and got exposed to some volatility crash and meltdown that we have seen. for the next few days i think the market will calm down, i still feel that there's a tremor or two out there because of the unwind that needs to happen. stuart: hold on a second. you told me that you expect market to break out and establish new high this is year, say it again. brian: underlying economy is so strong, i think we will continue to move up unless the fed blows it. if the fed blows it and i know that's a buzzard word, but you will see more volatility like we have seen in the last few days.

stuart: scott, you don't intend to buy anything given outlook for unwinding of difficult positions, you're not buying anything at the moment? >> so what we have done, stuart, we bought some stuff on tuesday, we bought stuff on monday frankly as well on the close and right now we are kind of just hanging tight because as more research as we have done we looked deeper into the volatility trades and some of the funds that are out there, stuart, frankly are not being talked loudly right now, i just want to wait. i agree with superman, i mean, brendberg that we will see the chop-up over the year because we have so many tail wins in the market. stuart: down 50, 60 points on 24,800, that's where we are. i have to refer to budget deal that's moving through congress, a, it is highly stimulative. that raises concerns about the deficit. scott, you have to be worried

about trillion dollar deficit two years down the road because that's where we are headed. >> yes, i tell you this much, i was more worried about these deficits when the economy wasn't growing, when wages weren't growing, oh, my goodness, we had the great economy on our doorstep and everybody was freaking out. that was the time frankly to worry about debt, you know, debt is not a great four letter word to say on tv, i can think of a lot worse ones but debt is only bad if the economy doesn't grow, a lot of way that is we are going to see, i think, the economy develop in the next few years with policy and momentum we have here are going to help alleviate some of the pressure that is the pile-on debt would typically provide us. stuart: okay. down 100. there we are down 109, 115, 116. okay. ashley: you're out on a limb, aren't you? [laughter] >> was it something i said? stuart: down 120 points. look, that's half percentage point down. look at some individual stocks, start up with tesla, are they

going to be profitable this year? liz: well, that's what musk keeps saying, they have never been profitable in annual basis. we are in a deeper level of hell than we expected, we got overconfident about the need to ramp up battery production. you have to get more lower-end, lower-cost model 3s out on the road. he's got a lot of ideas, he needs to execute. ashley: don't we all. stuart: 347 on tesla. liz: cash flow is coming in. i'm just looking at it right now. stuart: look at twitter, first net profit and as i said many times this morning, the year on year growth for daily active users is 12%, very solid number. scott, this is a real turnaround, isn't it? >> finally. i mean, gosh, twitter what took you so long, they had so many opportunities in the last several quarters and what was the boom for social media to

turn things around and they haven't. if you look at twitter today, it looks great, if you look at it over the last couple of years, it hasn't been so good. this is an opportunity for folks if they've in the name, get out. brian: i agree with scott, twitter has been down for so long, they get a little bit of news, you see the stock pop. i don't see the long-term story like facebook. do i think scott is probably right, this is the time to take your gains. ashley: monthly user, they lost a million, the good news to that is internationally it's starting to rise and huge market out there around the world and if they can tap into that and get that going, who knows. stuart: they have a pretty good spokesperson as in president trump. liz: longer character tweets. stuart: we are down 104 points as we speak. almost half percentage point. then we have cvs, profit getting

nice boost from tax overhaul. actually down 30 cents. sales ot yum brands falling short, they also own kfc, the stock is down 30 cents at 79. kellogg better sales, up nearly 2%. tyson foods nearly tripled this because of tax overhaul. the tax is up 4, 5%. big gains. digital subscriptions continue to grow. 24 bucks a share, viacomm cut costs, it's making money, exploring a merger with cbs. owns paramount pictures, mtv, viacomm up 11% this morning. cabled tv networks, parent of this network, higher costs relate today sports programming and releases that weighed on the operating profit and the stock is virtually unchanged at 36.

amazon introducing free two-hour delivery from whole food stores to prime members in four cities, austin, dallas, cincinnati and virginia beach. is that big news? >> they are taking on wal-mart, getting more data on what the high-end neighborhoods spend on. ashley: uber drivers for amazon, take it to homes over the people who place the orders, fascinating. brian: you get it in two hours, no cost, two hours. >> salmon and cucumber sandwiches in two hours. stuart: this was a real shock when i read this, the united arab emirates from texas.

this is the world turned upside down. brian: by 2029 net exporter to the world, more exports than imports. this is historically significant for the united states, a sign of strength in the u.s. economy and by the way we talk about cleaner forms of energy, back to the nature story, fracking technology. liz: it's fracking technology. watch what exxon mobile is now saying, it's exciting stuff. you know how they are going to spend $50 billion in the u.s., two-thirds of that is towards fracking wells, oil and gas development, so two-thirds is going to be spent finding the -- you know, high -- hydrolic fracking. it's a technology story which cracked open the u.s. oil boom. stuart: political story,

american dominance in the world's energy market. ashley: less reliance on a troubled part of the world. stuart: america produces more oil than saudi arabia. i think we should note that and delighting it. [laughter] stuart: look at gold, relatively flat despite market, it's 13.18 per ounce right now. scott, you wouldn't touch gold with ten-foot pole, would you? >> no, gold is not behaving right. it's supposed to be the safe haven. risk of a buzzard here. >> there you go. >> thank you very much, predicted. it's supposed -- i asked for it. it's suppose today act like things in your portfolio, not suppose to act like bonds or stocks, guess what investors it's acting like both therefore not valuable right now. stuart: we have to be careful with the buzzard, a lot of viewers in california that are just getting up.

ashley: now they are up. stuart: in hawaii they are still asleep. [laughter] stuart: i have to say thank you to brian and scott, thank you very much, indeed. where are we now? we are ten minutes, 11 minutes into the session and we are down exactly 100 points. seattle, it's got a plan to fix its homelessness problem. it is installing spike topped chain-linked fences to keep the home lus -- homeless out. former governor mike huckabee reacts to breakfast speech this morning, how is president trump doing from a spiritual standpoint, we will ask the governor next. today we're out here to test people's knowledge about type 2 diabetes. so you have type 2 diabetes? yes i do. true or false... type 2 diabetes more than doubles your chance of dying from a cardiovascular event, like a heart attack or a stroke. that can't be true, can it?

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taking jardiance with a sulfonylurea or insulin may cause low blood sugar. tell your doctor about all the medicines you take and if you have any medical conditions. isn't it time to talk to your doctor about jardiance? absolutely. ask your doctor about jardiance. and get to the heart of what matters. ...from godaddy! in fact, 68% of people who have built their... ...website using gocentral, did it in under an hour, and you can too. build a better website - in under an hour. with gocentral from godaddy. stuart: we are down 13 minutes into the session, we are down almost exactly a half percentage point. not quite the panic ups an downs

in the last few days but down triple digits, nonetheless. dunkin donuts getting rid of foam cup. nicole: your foam cup from today will be in the landfill 500 years from now, so it is a move obviously to be more efficient and they are moving to paper cups, will keep hot drink just as hot as this goes from the theme from dunkin donuts and other companies and no artificial dies and being more energy efficient. stuart: it's still good coffee. good stuff. president trump he kind of reached out to iran trying to negotiate to release of prisoners, what happened? ashley: well, that's the basis of a report out there saying at least two or maybe three occasions now the administration has reached out to tehran to

talk about a potential prisoner swap, at least four americans are in iranian detention by some accounts a dozen iranians in u.s. detention, so the idea of a prisoner swap that's been put out there but reportedly iran has not even responded to one of those approaches. they don't like president trump because president trump has been very critical of the uranium nuclear deal, don't forget that president obama swapped 7 iranians for 4 dual national americans plus $400 million in cash remember that back in 2016, mr. trump was very critical of that and he's being, of course, a big critic of the nuclear deal. so bottom line is, behind the scenes, they are trying to get prisoner swap done and twhirran saying, not interested. stuart: got it. the president speaking at national prayer breakfast, roll tape. >> faith is central to american life and to liberty.

stuart: he said it right in front of speech, former arkansas governor and 2016 presidential candidate mike huckabee is with us now. what's your take on this president's -- i hate to use performance, but that was a spiritual speech, how do you rank it? >> well, i think he recognizes that at the heart of true liberty is religious liberty. if people aren't free to believe what they want to believe and if the government can put a limit on what we believe or how we believe or how we practice, then we are not free at all. we are not free in any area. freedom of speech is taken away, freedom of association is taken away and that's why when the founders created the bill of rights, the first thing they mention was the freedom of religion, not freedom from, but the freedom of and that's very important and this president recognizes that and he campaigned on it and delivered on it and that's why you see such strong support from the spiritual community for president trump. stuart: governor, i know many christians who believe that

president trump is direct instrument of god to fix america and fix the world, flu that camp, sir? >> i'm a little hesitant to ever try to equate a political leader with god. i think that's a dangers place to go to be honest with you. i think god uses people, he uses people that love him and he uses people that don't. god is a pastor friend of mine said years ago, god can hit a straight lick with a crooked stick, god is not dependent upon us, we are dependent upon him. i'm hesitant to say, well, this human person is the instrument. he may be an instrument, one of many, but never the only one, that's a dangerous place to go for any of us. stuart: i did notice right up front of his presentation this morning he quoted from the book of mark when he was speaking to mr. scalise and he also used jesus' name and it's been a long time since i heard a president of the united states use that word jesus.

>> well, that's refreshing, this is a president who is unafraid to speak very clearly and boldly. i think it's one of the reasons that a lot of evangelicals and frankly catholics have appreciated him for his pro-life position. prayer breakfasts, let's face it, they are not typically -- i guess memorable for what someone says. i can think of two examples where that -- where that wasn't true, mother theresa looked at clinton and spoke about santity of life and the other was not so pleasant, when president obama told christians to get off their high horse, whatever that's supposed to mean, i'm thinking, gee, i know christians who are going out and delivering water to people who don't have it. i know christians who are doing extraordinary things of sacrifice and service, that's not a high horse. i didn't have a clue what he was talking about. i thought it was ridiculous and condescending statement.

stuart: governor, we appreciate your perspective. thanks for being with us this morning. >> always, thank you, stu. ashley: down 200 points. stuart: we are down 200 points on the big board. 206 to be precise. now, i said at the beginning to have show, relax, maybe the worst is over, well, we are down significantly. i've got 26 of the dow 30 on the downside, i've got three winners among the dow 30 stocks. got it. we are down. would you give up some of your privacy for cheaper pair of duck boots? i'm not entirely joking here. ll bean comes the answer to that is yes, we will explain it in full after this.

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stuart: big technology stocks, mixed picture, most of them are down, only apple is up and they are only a fraction. facebook, amazon, microsoft, alphabet on the downside, not much but down. look at makeup, higher profit,

strong demand on make-up, the stock is up 12%. ll bean considering selling clothe that is can track you, they will offer you a discount if you buy these clothes but you buy them and they can track you. come on in steve hilton, here he is. steve, i'm beginning to get a little concern here. you buy clothes from ll bean and they track you where you are. you have a phone from google. they know where you are and what you're buying, i'm getting -- big brotherrish, don't you think? >> you are completely right. by the way, thanks very much by the buzzard, out in california that really did wake me up. [laughter] >> we appreciate that. stuart: okay. >> so you're completely right about this. when i first saw the story, i assumed that this was -- they were doing something to try to help you, maybe track your

fitness, how far you walk, no, it's about helping them. they want to be able to sell you more stuff and the problem with all of this is that it's just yet another thing that can be hacked whether that's by the chinese government, our own government or russians or whoever else, literally everyone these days get hacked. they can give you whatever promise they want about privacy but you know they can't keep it because everything gets hacked. stuart: it's not just the possibility of being hacked, it's the knowledge that somewhere there's every single thing about you on some computer all brought together with a total picture of who you are and what you're doing. it is big brother, whether you argue or not, you have the sense of being looked that and i don't like that. >> i completely agree with you. people call it surveillance capitalism and that's a really good term. that's what it is, it's everywhere, there's really no good reason for it.

that's the underlying point. if there was some massive benefit that you could trade off against this creepy surveillance, maybe we will consider it. stuart: i don't see what you can do about it either. i have to have this thing, i just have to have it, i don't see how you cannot be tracked by somebody everywhere you go. last word to you. >> exactly right. i think -- well, here is one way of avoiding some of the tracking, i don't have a phone, stuart, i haven't had a phone for six years, google with creepy phone tracking, they can't get ahold of me, i'm not going to be buying anything from ll bean if they will track me all over the place. consumers can actually start revolt against, this consumer revolution against surveillance capitalism, that's what we need. stuart: that's news steve hilton, steve hilton almost off the grid. [laughter] stuart: okay, steve hilton, you are all right, we watch your show which is called the next revolution can steve hilton,

9:00 p.m. eastern on the fox news channel. steve, thank you very much, indeed. all right, we have two evolving scandals, one involving president obama, the other involving the clinton foundation, we will deal with both of them at the top of the coming hour. look at market, we are down just 96 points, relax. [laughter] stuart: we will be back. . . . .

stuart: the democrats were sure hillary would win but she lost and some of the things that were never supposed to see the light of day are now seeing the light of day. an fbi informant, douglas campbell, told three congressional committees the russians paid $3 million to ininfluence hillary clinton on uranium deal. this is the alleged chain. russian money goes to american lobbying firm which provides help to the clinton foundation which pushes the uranium deal, which is signed and gives russia 20% of america's uranium. this story broke overnight. hillary clinton says it's a distraction. there is a separate development in the scandal at fbi. president obama's name has now been brought into it. before the election the former

president told fox, categorically, that he had not talked to the fbi or the justice department about any investigation. but now, another text has emerged from fbi's lisa page. here it is. potus, that is potus wants to know everything we're doing. that is the president of the united states wants to know everything we're doing. that would be president barack obama. a year ago, if hillary had won, it would have been all about trump and russia. you wouldn't have heard a word about the clinton foundation or the fbi. but she lost and yes, a year ago it was still all about trump and russia but now it's hillary and russians and president obama and the fbi. politics really is an ugly business these days. the second hour of "varney & company" is about to begin. ♪

stuart: i want to know what is the latest on mortgage rates. they have been going up. ashley: they continue to do so. standing at 4.32% on a 30-year freddie mac. stuart: a big jump. ashley: in house of industry, lack of inventory, prices are going up. harder for first-time home buyers to get in. ashley: it was 4.22 last week. up a 10th of a percent. 4.32. stuart: couple weeks we were down about 3.9. ashley: he were. rising interest rates. >> great for the banks. stuart: the big tech stocks, same story we brought you ten minutes ago, facebook, amazon, microsoft, alphabet down. apple is up just a fraction just there at 160. stock of the day, twitter reports first profit and 12%

increase in daily active users from a year ago. that thing is up 23%. grubhub, food delivery service, record high. announcing a partnership with yum brands. investors really like that. grubhub is up 27%. that is a nice move. viacom, cutting costs, making money. exploring a merger with cvs. viacom owns paramount pictures, nickelodeon, mtv. investors love this one. tesla, more production troubles with model 3. we'll get into it a little bit later. the stock is down 2%. 338 on tesla. here is david dietze, chief investment strategist for point view wealth management. can we relax? is it over? the panic is gone and done? >> every time people tell me a little correction is healthy i am so skeptical. no one a longer term bull on the product activity of the american

economy and what our country was going to do, any pullback is healthy was not enough to get rid of that speculative froth. some people went through the windshield. we know there is a lot of speculation out there. are we done with inflationary scares, are we done with higher interest rates? i don't think so. stuart: we're not done with some of the panic selling. we'll not go back to new highs, is that what you're saying? >> of course we'll go back to new highs. we'll have to retest the new lows. i want someone to say that was unhealthy correction. then i'm full bore in. stuart: you think we to down to 23,000, 22,000 at some point? >> we won't go down to 10,000. stuart: this expression, we have to explain to our viewers. test the low. okay, the low i think was what, 23,000 and change. >> exactly. stuart: you think we'll go back below that? >> yeah, because we haven't had a real correction if we go back to that low. we've had a nine year bull market.

it ends and there is 8% interruption and now back to another nine year bull market? stocks don't work that way. the economy is great. we have a lot of valuation in these stocks. we'll have higher interest rates. inflationary scares, keep the seatbelts fastened. stuart: you're killing me, dietz. i went own the air this morning relax everybody, we're done with the up and downswings. dietz says no we're not. you expect to go down in the immediate future what are you buying? anything? >> absolutely. my top pick right here, i know it is contrarian, general electric. stuart: what? >> 13th largest company in the forbes 500. it is bigger than microsoft in terms of revenue. twice as high as facebook. if it was accorded same valuation as peer 3m you would have to 70-dollar stock. stuart: an analyst in my ear, deutsche bank says it will go down to $13 a share. you want to change your mind?

>> no, i don't. that makes me more bullish. all analysts have been wrong on this stock for years now. stuart: okay. shall i move on to tesla? >> yes. stuart: elon musk says they're making progress with the model 3, production thereof. he says tesla will be profitable sometime this year. are you buying that? >> i am not buying that. i'm so tired of those speculative dreams and losing money year in, year out. the new field will not be electric cars but autonomous cars. recent studies show tesla is way behind the field. ford, gm, google in terms of developing the autonomous car. that is what you have to be looking for. tesla doesn't rank up. stuart: is, deets, we'll test the lows, you love ge and you hate tesla. can i sum it up like that? that was a fine interview, young man. much obliged to you.

knew this this is fascinating. goldman sachs says most of these cryptocurrencies like about it coin to be worthless haven'tly, however our next guest is into the technology behind bitcoin. that technology is blockchain. special guest on the program today. bridget van colington right pronunciation? senior vice president of ibm. you are involved in ibm's blockchain project. as i understand it you will create a lab for blockchain technology and how you can apply blockchain for real life. is that what you're up to? >> 18 months ago we stood up business driving blockchain for our clients. ibm if you think about our company, helps our clients use innovative economy to make business work better. the technology behind brit coin basically is shared ledger where multiple patients in an exchange have an immutable record which

is able to change over time with the contract t can be seen instantly. because it is immutable it can be trusted between many parties and also permission so only people see what you want them to see. the business model implications are huge. stuart: give me an example how you at ibm could use blockchain technology, nothing to do with crypt toe currencies. how do you apply it to real life so i can understand this. >> there are many, many use cases and investments we stood up for blockchain but some fantastically powerful once, for instance the joint venture we announced a couple weeksing a with maersk. global shipping supply chain, 9% of the foods we use come through that. it is 8 trillion a year. 15% of costs are paperwork that go between individual parties which put in a blockchain can essentially be eliminated. which means we can accelerate trade an many more can participate. stuart: hold on. i'll trying to get to grips with

this. you have a partnership with mersk. they're a big shipping company. >> yes. stuart: some you merge blockchain into the supply chain is not the word to oust, put it on blockchain, totally private, nobody can hack it? >> permission to see it we at ibm recognize part of this is building technology that enterprises can run on. permissioned only those in the blockchain can see it. it is secure because we put it on ibm secure cloud. that sort pa of the investment we're making so an enterprise can count on the technology. stuart: how much money are you putting into the blockchain venture, not with maersk? >> you know about our strategic imperatives we transform ibm for the new era. it is one of our major investments. stuart: how much? can you tell me? >> a large amount of money. investment we're making for maersk. stuart: is it billions? >> ibm spends $6 billion every year on research. we're pulling our research.

you're pulling our software development into it. it is one of our major ccs for investment. if you think about it, impact for the world is huge. food safety, food trust. it take as week to recall a food product. blockchain with the work that we've done with wall mart and group of consumer companies they can get a recall and track the food in two seconds. half a million people get sick a year. 460,000 people die, sorry. stuart: i am impressed. i think we're all impressed. we'll listen very carefully. would you be insulted if i were to say ibm is -- ibm is old tech and you are -- >> not going to take that personally. [laughter] stuart: ibm is old tech and you and your blockchain division, you're doing your best to make it new tech, that rue? >> i would say that ibm is absolutely not old tech. we have been transforming for every era of technology for the last 100 years. this is the newest one. what is the transformation?

mobile, big data, artificial intelligence and cloud, all of those are part of portfolio transformation that is driven for ibm. that is very new tech. stuart: you have a slight accent. mind if i guess. >> you're absolutely brilliant. glad you didn't say i was australian. stuart: bridget, thank you very much. we enjoyed it. hope you come back. thanks very much, ma'am. >> thank you. stuart: senate leaders reach a budget deal. it would mean a trillion dollar deficit within a couple of years. how does newt gingrich feel about that? remember he balanced the budget back in the 199s. he got some help doing it of course. nancy pelosi's eight-hour marathon on the floor of the house. she wants the "dreamers" to stay. did she make any difference? we're asking that question. you're watching the second hour of "varney & company." ♪ and this, the philadelphia eagles victory parade starts in less than an hour i believe. more than two million people expected to attend. the five hour, five mile

extravaganza. philly fans known to be a little rowdy. we're watching it for you. you don't have to be there. we'll be there for you. ♪ ecurities 24 hours a day, five days a week. that's amazing. it's a pretty big deal. so i can trade all night long? ♪ ♪ all night long... is that lionel richie? let's reopen the market. mr. richie, would you ring the 24/5 bell? sure can, jim. ♪ trade 24/5, only with td ameritrade.

stuart: breaking news, nancy pelosi, top democrat in the house says she is going to vote no on the budget deal. she liked the product, the budget. she didn't like the process, how you got to yes. got it. let's check the big board. still down a little over triple digits, down 124 points, 24,700. some individual stocks are moving. strangely cvs is down a buck despite the fact they got a lot of cash because of the tack overhaul. that is cvs. a lot of individual stocks really moving today. there is clearly a deep state. an fbi informant connected to the iranian deal made written

allegations to congress that the russians paid 3 million to influence hillary and the deal. those text messages between fbi lovers suggest president obama wanted to be in the know in the russia investigation. newt gingrich is with us. the author of that book, "gnatting trump." newt, welcome to the program. "understanding trump." the uranium one deal, douglas campbell, take me through it. what are the implications here? >> the implications are very real. this was also a deal where millions of dollars going to the clinton foundation. bill clinton was going to moscow to give a speech for $500,000. the whole thing from the beginning looked really terrible and was terrible. all this is unraveling. the things you're describing, my first campaign was during watergate. every day i get up and something new would unravel. could you never figure out what was going to happen next. so if we had sat around a year

ago and said, it is going to turn out that comey was developing a briefing for president obama because he wanted to quote, know everything? we would have thought that was inconceivable. and i went back and i got howard baker's quote from 1973, what did the president know and when did know it? this whole thing is just going to keep opening up into more and more pieces. stuart: it is watergate style, isn't it? i hate to make a comparison is it bigger than watergate? >> it is different than watergate. look, watergate was a handful of people who did some really dumb things centered around president nixon and, in the end they all left office. a number of them went to jail. this starts with senior people in the fbi, senior people in the justice department. apparently some people in the

state department based on what story yesterday. i mean, this is the deep state. this is not a handful of people in politics in the white house. this is the deep state but what we're now beginning to be told is that maybe president obama knew about it, supported it, sent signals it was okay, maybe it puts back into a new question what attorney general lynch was saying on the airplane to former president bill clinton when they met the week that his wife was going to be interviewed which now looks more and more phony. since apparently comey began writing the explanation why they weren't going to prosecute her two months before he interviewed her? all of this just looks like the fix was in and the bureaucracy had frankly been corrupted. stuart: i think you used the right word, newt, that is unraveling before our very eyes. i want to talk to but the budget deal that has gone through the senate t would vastly increase government spending.

virtually no government spending cuts. it will lead us towards trillion dollar deficits again in a couple of years. seems like the republican party has abandoned austerity. what do you say? >> well, first of all i hope we have abandoned austerity. i was a reagan-kemp republican. our model in the 1980sas masse economic growth, not austerity. 1990s i helped largest mpany tall gain tax cut in histor we had a huge boom you remember in the late 90s. we combined that with real reform. it was combination of reforming welfare, reforming medicare, opening up the communication system, reforming the food and drug administration. plus the huge tax cut which led to dramatic increase in revenue and stable -- stabilization not a big decline but stabilization in spending. what republican want to do to

get to a balanced budget number one is economic growth. put enough people to work, number of companies making a profit, enough people incomes growing with greater productivity, you get a big stream of extra revenue. we need large reforms. stuart: yes. >> for example, workforce improvement which will save tens of billions. stuart: you have to have social security reform. you have got to have medicare reform. that training the treasury as we speak but that is the third rail of american politics. and i don't know -- >> i want -- stuart: go ahead, sir. >> let me just disagree with you. if i were the republican party, i would say we'll not touch social security which is earned entitlement. we're not going to touch veterans which is earned entitlement. we'll not touch medicare which people paid into the whole life. that means you can reform disabilities you can reform medicaid. you can certainly go after fraud in medicare which may yield $100 billion a year. i mean there is, there is smart things you could do and as you

point out earlier, i did help balance la the budget for four straight years. i think we could have a smart approach over next two years to getting to a balanced budget. just look what happened with the launch of the falcon heavy which was a remarkable rocket launch and recovery by a private sector entrepreneur who did it for about 1/20th of what people thought it would cost the government to do it. there are lots of ways we can take cost out of system. stuart: okay. >> i think that ought to be our approach. stuart: we should talk more about that. newt gingrich. come back and see us some time. that is very important point. appreciate it, newt. good stuff. now we can all disappoint our parents at some point, yes, we can. yes, we have. but not always caught on camera. we'll going to explain the details behind the video you are watching. oh. we'll be back. hi, i'm the internet! you know what's difficult?

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stuart: we're down triple digits seesaw we're used to. 24,737. look at this, one of the country's top high school football players seemed to go against his mom's wishes when he announced his college decision at a news conference. it is jacob copeland. his mother was wearing a alabama sweatshirt, but copeland picked university of florida. she walked out of the news consequence. ashley: see ya. stuart: copeland wanted to go with his heart and not with his mom. she later came back. ashley: he said that is my mom.

she is one of -- they hugged. stuart: embarrassed the poor kid. liz: he said i never been as stressed about this i cried and cried about my decision. i felt badly about the mom. she came back and hugged. stuart: she did. fans lining streets of philadelphia. waiting the start of eagles victory parade. they expect two million people to attend. the parade starts near the team stadium. it ends after five miles at famous rocky steps. you know the movie. eagles brought home the championship for the first time ever. looked like you want to say something, liz? liz: you did. ashley: i rather watch it at home. i don't want to be where there are two million people. god bless them. hopefully they don't break anything. stuart: next case, more "varney" after this.

stuart: 24,600. that is a sudden drop. just in the last after hour. down 239. the big tech names, all of them down except apple which is up just a fraction. still shy of $160 a share. better sales at kellogg, the cereal company. tyson foods, profits nearly tripled because of tax cuts. really helped them. tyson foods up 10%. how about ge, down again today. deutsche bank says it will go down to $13 a share.

earlier david dietze said buy it. deutsche bank says it is going down. boeing reportedly in talks to buy aerospace partsmaker woodward. woodward is up. boeing is down. not much. 343 on boeing right now. still on market. jim ricketts is with us. is this the correction pace, the panic phase, we saw earlier this week, is it over? >> no. there is major headwind, stuart, which is the debt situation. not all debt is created equal. we're at 105% debt-to-gdp ratio. stuart: you're talking about the national debt? >> u.s. national debt. another trillion of debt because of tax cuts. you will not get growth, gang of four, steve forbes, steve moore, art laffer, larry kudlow, good guys. i know three out of four of them. we're to the getting that kind of growth. we're past diminishing marginal returns. stuart: what you're saying is, the deficit is going up, maybe a

trillion dollars in a couple of years. >> more like two. stuart: in two years. that is a debt bomb. it explodes at some point and market realizes that, before we get there and we'll selloff is that your -- >> bond market is very forward leaning. the bond market already sees this. the stock market is going down because interest rates are going up. they're not going up because of inflatio there is not much inflati on the landscape. concn about debt, more isance. theed is burning money. thk of the furce in fed, they'r destroying money reducing balance sheet. impact of balance she had reduction is greater than rate hikes. they're both both. this is unprecedented. stuart: that is real problem for the market. the market will sell off when that hits. gold, has not done much despite the turmoil but you say? >> this is the third gold bull market in my lifetime. 1971 to 1980. gold went up 2,000%.

1999 to 2011. gold went up 650%. we had terrible bear market from 2011 to 2015. the new bull market started decent 2015. it is up 30%. it has a long way to go. daily volatility up and down but fold goes up a lot higher. stuart: what is the single big reason gold goes a lot higher from 1315 where it is now? >> the thing we talked about which is the debt bomb. the debt will cause people to lose confidence in the u.s. dollar. u.s. will never default. we'll print the money. has implications for inflation. that takes gold up. this is two sides of the same coin. stuart: what about bitcoin? that would be, you're laughing, i don't know why you're laughing. goldman sachs says crip cocurrencies going to zeros. >> bitcoin has a case for $200 a coin. bitcoin going to 200, staying there. that is where it was before the bubble started. stuart: i would have thought if you're saying we have a debt crisis coming, stock market goes

down, gold will go up, i would have thought you say say things like bitcoin would be nice alternative investment. >> things like bitcoin but not bitcoin. like your prior guest, vice president of ibm. they will own the space. these will dominate the block chains. forget the coins. forget ether. watch the blockchain permission. that is the key word your guest used permission. that is how you get trust. instead of clunky math problems. costs me $50 to send you $60 of bitcoin not a good deal for me. bitcoin is dead end as currency. speculative bubble, we're off the top. going down to $200. blockchain, ledger technology, that is the future. stuart: fascinating stuff. you covered a lot of ground in about three minutes. we kind of like that. jim, thanks a lot. we appreciate it. very interesting. liz: really interesting. stuart: former vice president joe biden says the democrats will take the house back.

roll tape. >> i tell you what, tell you what though, i have committed and i mean it, i will, i plan on spending all the time any one of you want me to making sure we win back the house. [cheers and applause] not a joke. not a joke. stuart: look who is here, david bossie, citizens united president. gop kind of guy and a trump supporter to boot. now, joe biden says the democrats will retake the house. if you look at current polls, they got really good shot at doing exactly that. are you going to take offense at that? >> oh i don't think they're going to be able to take back the house because the economy is on the rise. stuart, i think we all know with the president's tax cut and tax growth plan he is just implemented we'll see by november all-americans being more prosperous than they are today, more money in their pocket, and a future that is brighter for all americans.

i think that's what they're going to be seeing when they're going into the ballot box. i think we have a very good chance. don't get me wrong, there is lot of historical trend that go in the direction of democrats but they still offer no, no plan for the economy. our national defense or any other issue the american people care about, you're basing whole theory here on it's the economy, stupid. that's what this is all about. you're saying that the economy and its success will sort of outmanuever mr. trump's unpopularity and -- go ahead. >> stuart, it's a couple of things. one, i put a lot on the economy and i believe that in the cycle that we're about to enter with a gdp that is strong, with unemployment low, with the tax cuts coming into effect. now over 300 companies giving their employees raises, bonuses, matching to their 401(k)s. i think that is going to explode over this year but we also see a

strong forward-leaning foreign policy that the american people want. the rebuilding of our military, to keep america safe and secure at home and abroad. i think that is another issue. look the democrats offer nothing but hate. they only hate this president. quite honestly they hate this president more than they love this country and that's fundamental flaw that i think will catch up to them in november. stuart: david bossie, forcefully putting his opinion right there. we appreciate that. david, much obliged. >> thanks, stuart. stuart: germany's angela merkel has reached a deal on a coalition government but there's a lot of skepticism about her future and the future of the very weak and shaky coalition she has put together. john bolton is with us, former u.n. ambassador to the united nations. john, this is all because angela merkel opened the doors to a million so-called refugees and changed europe forever. she is paying the price, isn't she? >> well she is, but don't count

her out. she is amazing political survivor. to me what is fascinating about this coalition i see no reason whatever why the social democrats agreed to go into it. i think this is the path to a real defeat for their party in the next election. merkel may benefit because of this miscalculation by the socialists but the underlying problems caused by some of merkel's immigration decisions aren't going away. in fact across europe reaction against this unchecked influx of immigrants i think continues to rise. stuart: might see that in the italian elections coming up soon as well. >> possibly. stuart: i have to turn to north korea. held a big military parade on eve of the wint olympics held in the south korea. kim jong-un's younger sister is going. she will not talk with vice president pence. do you believe in it? >> not a bit of it.

this is pure propaganda by the north koreans. they played this very well. they're good at it. the idea of a joint north and south korean team, maybes our heartthrob. i think vice president pence actually just arrived in south korea to head the u.s. delegation for the opening ceremony. has a very did he cat, difficult diplomatic path to show we're sticking with south korea and japan but not let north korean propaganda effort dominate. kim jong-un's sister versus mike pence, i vote on mike pence. stuart: the whole thing could blow up easily, couldn't it? incident like whole bunch of north korean athletes defect, for example or kim jong-un test as rocket in the middle of the olympics. all kind of things could really erupt in the next three weeks i think? >> possibly but remember north korea has done this before. it is possible some of the athletes will defect. their families will die if they do. you can count on that.

i think what the north is doing here, is trying to throw up a smokes screen as they continue to get ever closer to thible to hit targets in the united states with thermonuclear weapons. they are counting on getting across that finish line before we're able to take effective action and this, the olympics is a very conveniently-timed excuse for them to throw up this wave of propaganda. stuart: very interesting. john, thanks for joining us. >> glad to be here. stuart: yes, sir. amazon, there is always a story about amazon. here is today's. launching free grocery delivery service from whole foods. what are they doing? ashley: what you can do, basically use the app from home, you place an order. they will be a picker, a staff member who picks up your order, takes it out and drops it off to a flex driver, an amazon flex driver, essentially like a uber driver, who brings it to your home within two hours. almost all the food within whole foods will be available for this, not all of it but test starting it in four cities

including austin, virginia beach, cincinnati. if this goes successfully, which they expect it will, then it will go nationwide. already amazon has 18% of the online grocery business, just by buying whole foods, they're already 1/5 of their way into this thing. so they continue to spread their tentacles everywhere. stuart: astonishing. thanks for the story. ashley: yeah, sure. stuart: california congressman john geir menddy, he told me -- garamendi, he told me yesterday, illegals can not register to vote after getting a driver's license but we heard a chorus of people saying the exact opposite. one of them, a california republican gubernatorial candidate, will join us in the next hour. first though, nancy pelosi, eight-hour marathon on the floor of the house, trying to get daca legislation into the budget deal but did anything actually come of it? we're asking the question. we'll answer it too. back in a second. ♪

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yesterday. she spent entire time talking about daca, a bill she is likely to vote against. there are republicans and democrats who want to solve that. we wanted to solve that for months, frankly longer than that. i think we'll get a deal probably next week in the senate and in the house shortly after that. it is very generous deal. we go from 700,000 kids or young adults we protect, president has afforded 1.8 million. but you can't do that not say we'll not protect the southern border. we'll not look at visa lottery. we'll make no sense not knowing who will come into our country. ♪ zicam cold remedy nasal swabs shorten colds with a snap, and reduce symptom severity by 45%. shorten your cold with a snap, with zicam.

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build a better website - in under an hour. with gocentral from godaddy. stuart: low of the day, i said relax, maybe you shouldn't. we're down 250 at 24,644. 28 of the dow 30 are down. only two of them, apple and merck, are up. minority leader nancy pelosi spent eight hours on the floor of the house trying to get the the "dreamers" included in the budget deal. didn't work. roll tape. >> all night, as i was seeing my-- blessed by the pope, in honor of my mother, i thought, say rosary on the floor. i'm reminded of my own grandson. had a very close friend, his name is antonio, from guatemala. i wish i had brown skin and brown eyes like antonio. stuart: it was kind of a house version of a filibuster i guess.

oregon congressman greg walden joins us now. congressman, your reaction to the eight-hour speech? >> i haven't checked i bet c-span ratings are down. i know republican numbers are up. she was the at table negotiating the agreement with the other three leaders in the house and senate. you know, we'll hear from chris stewart. we're all committed to resolving security on the border, dealing with the daca issue. i think there is a way to get through there. i was kind of perplexed by it all. it is called the magic minute, went on eight hours. you have to give her her due. she remained on her feet eight hours. quite impressive. stuart: i don't think i could do it. >> i know i couldn't. stuart: this morning, nancy pelosi says she is not going to vote for this budget deal. what are the implications of that? >> the implications are evident to americans when they look why washington is so dysfunctional they now know where to look. we said it for a long time. we want to get things done. even chuck schumer and mitch mcconnell got together

with paul ryan. nancy pelosi was at the bargaining table this is a bipartisan, bicameral agreement. solves a lot of country's problems. moves us forward. not perfect. clearly other things that should be in or out. we can all argue about that. but this is the same group that voted against children's health insurance. voted against community health centers. all the things they came they're for, when they get a chance to vote they vote to shut down the government and things that matter. this is coming together. there are things i don't want to swallow, i don't want to but i want to move our country forward. i want to get our work done. that is it what we're elected to do. stuart: congressman, hundreds of people protested president trump's offshore drilling plan, protesting in oregon. the plan to allow drilling all around the coastline. what do you say to that? bearing in mind that florida objected to offshore drilling and they got their way? there will be no offshore drilling off florida. >> you know, i'm, frankly i would say it is a much ado

abouting nothing because when you look at the data on the geology, there is probably nothing north of san francisco for oil and gas exploration anyway. i know ryan zinke well. i talked to him. think oregon es issues will be well understood i bet secretary. when their draft report comes out that will be reflected. people got spun up. stuart, i try to get the to the facts. that is old journalism to me. any gas or oil three miles off the coast of oregon or 3 moo miles. stuart: you started off as a journalist. >> i got a journalism degree from university of oregon and was in radio for 20 years. stuart: you have a great voice. >> my colleagues say i have a face for radio. they're not nice. stuart: makeup is a wonderful thing. thank you very much for joining us. >> thanks, stuart. stuart: you study, lazy and

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stuart: rain, this is the low of the day down 314 points, one 1/4%. maybe it is the debt bomb story coming out of this budget deal upsetting the market. now we're down 326. we're on it. keep an eye on the bottom right-hand corner of the screen. now this, aaa says drowsy drivers play a big role in accidents. jeff flock is on the road. how big of a deal is this? >> it's a big deal, stuart, in terms of what aaa did, because the government had said maybe one or 2% of accidents is result of drowsy driving. aaa did a real study where they actually put a camera on the dashboard of the car. they got 3500 people to agree to this. over three-year period they looked at people's faces. they had 700 accidents recorded

during that time. of those 700 accidents, almost 10% of all the accidents the person by looking at their face actually was falling asleep, had their eyes closed. when it came to severe accidents, it was even a higher percentage. this suggests there is a lot more drowsy driving out there than we thought, which i don't know, what it makes you think of, but it makes me think of autonomous cars. stuart: exactly. >> people may continue to poo-poo the idea, this will never work. if you could hit a button when you get drowsy and somebody else takes over, i mean, autonomous cars do not get drowsy. stuart: jeffs you're on to something there. makes the case for self-driving cars. got it. hold on, jeff, i have to get back to the market. we have another low of the day. now we're down 380 points, falling quite rapidly just in the last hour. i'm sorry folks. i went on the air this morning, said relax, maybe the worst is over, maybe calm is turn.

i was wrong. we're down 380 points. liz: apple and merck are only ones in the green or in the black right now. ashley: it kind of feeds on itself once it goes past a certain point. stuart: seems like it. we're down 379. there you have it. republicans who railed against president obama and the debt now running up the debt more. democrats who doubled the debt encouraging more debt. my take on the senate budget deal. more after this. ♪

stuart: not quite the low of the day but still way down there. we're off 324 points at 24,566. it's been a down day right from the get go. so there is a budget deal. two hungs stand out.

two things stand out. number one, this deal gives the economy a whole lot more juice. it is what we used to call stimulus. it will stimulate the economy to produce even more growth. got it. number two, this deal means trillion dollar deficits within a couple of years. you are going to be hearing those words, "debt bomb." that's not good. let's go through this. the budget deal would raise spending on the mill dare by $165 -- militarity $165 billion. that's an extra $300 billion worth of stimulus. throw in the tax cuts, wage increases and the infrastructure plan and we are chucking a lot of money at an already-growing economy. it is a spending bonanza and will probably produce the kind of boom we've not seen in a generation. but the debt will skyrocket. there is no plan to reform medicare or social security, and both are pumping out more money

than they're bringing in. as a nation, we are overspending to the tune of almost $3 billion a day every day. strong growth will brung more revenue, concern bring more revenue, but we're still looking at to mom call debt as far as the eye can see. it is ironic that republicans are running up the debt and ironic, too, that democrats who doubled the debt are encouraging another increase. truth is there are no votes for austerity. neither party wants the gravy train to halt. that's why you'll hear those words "debt bomb," and at some point it will bite. the third hour of "varney & company" is about to begin. ♪ ♪ stuart: all right. i'm sure you heard my commentary on the budget deal and the deficit. i want some more perspective on this. liz peek is with us, foxnews.com

columnist along with gary caught balm. i know for a fact that you really hate this runup in the deficit. how badly do you hate it? >> how deep is the ocean and how high is the sky, stuart? that's the best way i can put it. let me give you some facts. schumer's bn in washington since '81, mcconne since '8 since that teur debt' gone om nrly zero t $21 trillion, headed to $25 trillion, $30 trillion very soon, and thousand they're running things. and let me give you my laundry list. i know schumer gave his yesterday about this program for two billion net. listen to these two numbers. next year the first 400 billion of tax dollars is going towards the interest on the debt that they've created throughout the years. not for the poor or the indigent or the highways and the byways and the bridges and the roads, but interest. it goes nowhere, into the

toilet. and four years from now that number's going to be $700 billion. if we continue this trajectory, all they are doing is taunting the economy, taunting markets, taunting the future of not only us, but our kids and our kids' kids, and all i can tell you is when i was hearing schumer yesterday say this is a win for the american people, two words came to mind: con artist. this is a con game, and nobody's doing anything about it, nobody on the left and, amazingly, nobody on the right. and if anybody on the right does shout, they are shouted down and can't talk anymore. stuart: gary, hold on for one second. i'll be back to you in a moment. liz peek, we're looking at trillion dollar deficits within a couple of years. that's got to worry you. >> yeah. i mean, really what we've seen is a complete reversal of the investment climate of the last seven or eight years. we now are looking at rising interest rates, an accelerating economy. not all of that is bad, but certainly the implications for

debt and debt service, as gary pointed out, are extremely bad. i mean, we basically went under obama from $12 trillion -- amazing numbers -- to $20 trillion in debt, but the debt servicing, the amount of interest paid only bumped up from about $431 billion to 430. so the answer is we didn't see it. no one was really aware of this gigantic increase in the debt. now that has changed. yes, we're going to be crowding out important programs. stuart: and right now we are down 270 points on the dow industrials, we've only come back a little bit. we were down 330, now we're down 270. do you think that's got something -- rates are rising, gary, do you think this debt bomb that we're talking about, huge deficits, is that a factor in today's market? >> a little bit. it's been the trajectory of rates going higher, but also the fact we were up 8400 dow points since the election without any correction. so you combine the two and that's why we're in the soup right now. and the one thing i'm watching for is the lows of tuesday's

reversal, big reversal day. if they get taken out, this is going to turn into a 15-20% drop, and then we'll reevaluate it from here. and watching the market today and at the close yesterday does not give me any solace right now. stuart: lizzie? >> bank of america is warning that the senate spending deal will contribute to higher yields on that ten-year. why? >> of course. >> when you unload a lot of government paper into the markets, you've got to raise yields to get more buyers to buy those government bonds. so the question is at what point when that ten-year hits, is it 4%, 5%, will you not only see a dramatic downturn in the market, but will it wipe out the president's tax cut stimulus? >> i think another way of saying it is everything that seems good news is, in fact, turning out to be bad news. one of the reasons the market spiked lower is unemployment claims came out at a 45-year low which signals an incredibly

strong economy finish. >> i just add one thing? stuart: gary, go. >> i want to add one hinge. the private economy is sizzling, is doing great. the people of this country are working their tails off to do better fun themselves and their families -- for themselves and their families. the problem is washington d.c. they can't stop raising the bar on how big government is and how big government intrudes into our lives every day. and the fact that i'm seeing mitch mcconnell yelping and all happy about the fact that they're raising it again, i don't even know where to begin. i'm looking for anybody on the right to do something about it, and they refuse to. stuart: liz peek, a sizzling private sector, a sizzling economy, will that pull the market up at some point? >> well, and we've seen that. i mean, that's what the market's been responding to. earnings are, you know, gangbusters. 20% increase likely in the first quarter, but obviously there is this other side which is that interest rates are going up, and that competes with stocks. now bonds are going to start

looking more interesting, etc. look, there's -- the only silver lining may be if, indeed, the economy continues to accelerate, tax receipts are going to be higher than expected. and, you know, that was a number that a lot of us argued about when the tax bill went through. the democrats, ironically, were talking about how that was too stimulative. but the is the tax -- the is the tax receipts may be better than expected, so maybe the deficit won't be quite as big as expected. it's a minor silver lining, but -- >> but they will not keep up with what they're doing in washington d.c. >> i agree. >> 100% certainty tax receipts are going up, plus coming out of the market that's been so strong, the capital gains. but they just can't keep up with what they are doing there. they continue to expand their power base, they're drunk with our taxpayer dollars, and again, there needs to be some sort of movement to stop them. and i don't know where to start. stuart: before you go completely apoplectic, gary -- [laughter] i'm going to -- thank you, very

much. >> serenity now. stuart: no, no, i'm getting back to you. you're not off the hook yet. talk to me about goldman sachs. they say cryptocurrencies like bitcoin will eventually be utterly worthless. now, i know you agree with that, so vent some more, gary. >> well, i just think this has been a big bubble, and the coin people went crazy. there's over 1500 different coins now and counting. and i just ask one simple question, what is the economic value of somebody making up a coin, and i still can't come up with the answer. i think you're seeing the comeuppance. prices as good as what somebody's willing to pay. maybe it goes back up a little bit, maybe even a lot, but i just think when all is said and done d-u-s-t, that's what i think these coins will be. [laughter] stuart: gary, thank you very much, indeed. i'm sure you had fun today. thanks, gary. now this, more people are giving credit to president trump for the economy.

new poll from quinnipiac says 48% credit trump, 41% president obama. this is the first time in this monthly poll that trump has surpassed president obama. all right. positive economic sign, the number of people filing for unemployment benefits dropped last week all the way down to 221,000. that's it. that's the lowest level in about 45 years. the number bolstering expectations of faster wage growth this year. cvs, their profits got a nice boost from the tax overhaul. the stock is down $2. gotta look into that story. they're getting so much more money from the tax break, why is the stock down? don't know. sales fall short at yum brands on weak demand for taco bell and pizza chain stuff. they also own kfc. that stock is down but not very much, 60 cents. boeing in talks, reportedly, to buy the aerospace parts maker woodward. woodward up, boeing down $6. the parade for the philly eagles

starting now. two million people will be part of a five-hour, five-mile extravaganza. they're celebrating philly's first nfl championship since 1960. first super bowl ever, wasn't it? >> i think so. >> yeah. first parade. stuart: they won a championship in 1960. i'll get it. don't to worry, folks, i know what i'm talking about. [laughter] that's a live shot of the crowd -- >> the parade route. stuart: thank you, the parade route. >> oh, it's fantastic. stuart: we're not going to let the california voting story out of our sights. the gentleman on your screen, doug, ose, says a new law will allow illegals to register to vote. he will join that intense debate. president trump going to unveil his infrastructure plan on monday. next up, the held of a construction company in the new york area behind the projects we're showing on your screen. he says our crumbling infrastructure is bad for business, and this plan is long

overdue. speaker ryan will take the podium in about 20 minutes. we could get news on that infrastructure program or the budget deal or the shutdown. all of it. if he brings a headline to us, you'll hear it first. [laughter] ♪ ♪

stuart: we're pretty close to the low oe day, down 344 points right now. interest rates appear to be the problem, and this budget deal that's been agreed in the senate will probably raise interest rates down the road. the market doesn't like that. we're down 345 as we peek. now, president trump's going to unveil the big $1.5 trillion infrastructure plan on monday, and our next guest is head of a big construction company in new york. his name is anthony rinaldi, ceo of the rinaldi group, and he says the current state of infrastructure is bad for business. give me an example.

>> well, i'll give you an example here in new york alone. i'm a member of the american society of civil engineers, and in 2015 they did a study of the infrastructure in new york state which comprises new york city as well. in new york state, there are 17,450 bridges of which over 50% are 75 years or older -- stuart: well, is that -- why is that bad for business if the bridges are still functioning? i mean -- >> they're barely functioning. so here's what happens, your bridges start to go, your roadways start to go, they're in disrepair. all of what we do, all right, we build buildings. or i have products -- i have products and deliveries of materials each and every day. if i can't get my materials and can't get my workers to my job sites, my jobs start to go longer, and we don't get the job done when we need to get it

done. stuart: does that actually happen? i mean, do you have projects that are delayed because you can't get your workers there on time and you can't get deliveries on time? is that actually happening? >> absolutely. we constantly deal with having to lay out our directions and roads that we're traveling to get deliveries. for example, one of the projects that we're doing we were getting products from poland. those were being delivered to the ports in newark, okay? sizable oversized loads. those loads gotta go through the highways, roadways, bridges and make their way to the streets of new york city and get to our job site on time and under budget to mountain the schedule and to maintain -- to maintain the schedule and to maintain our budget with our clients. so if all of those means and methods of getting to our job sites are starting to deteriorate, so shall our projects. stuart: okay. last time you were on the show

you told us how much you've got to pay to licensed crane operators to get them to go to work -- [laughter] and i think you came in and said it was a half million dollars a year for a qualified crane operator to work in new york city. half million? >> and i said to you minimum. i said $400,000 minimum. i have a crane operator on a job that i just recently paid over a million dollars in a year. stuart: okay. >> $1 million. stuart: okay. i'll take my breath back. >> wow. stuart: listen to this. nancy pelosi had this to say about the trump infrastructure plan this morning. roll tape, please. >> now, public/private partnerships we're receptive to but not when the goal of the bill is to transfer the taxpayer dollar to the private sector, rejecting a plan that truly invests. what a disappointment, what the president put fort. i would just characterize it as something that privatizes our

roads, air traffic control and essential infrastructure, creates more costly tolls for commuters and shifts the burdens on to cities' and states' budget. stuart: she doesn't like privatization. do you. this is you. >> yeah. stuart: do ya? [laughter] >> listen, i live on it. [laughter] stuart: well, i think ms. pelosi was getting at the idea of you build a road with a public/private project, and you toll road it. that's how you pay for it. >> right. stuart: you got a problem with that? >> you know what? i think if they were to privatize infrastructure -- which they don't -- i think you'd see a lot of changes,, and i think you'd see a lot of projects come in under budget and on time which doesn't happen at least in our metropolitan area. stuart: that's for sure. anthony, thanks for joining us. can i be a crane operator? [laughter] anthony, thank you so much. we appreciate it. thank you. >> thank you, stuart. stuart: all right.

now, we've got a dow that's down 348 points, that is a problem for interest rates. that's the problem there. we're going down, down 350 now. >> yeah. stuart: kellogg on your screen right now, better sales at the cereal company, that stock is up nearly 3%. tyson foods, their profit nearly tripled because of an infusion of extra money from the tax deal, but they're only up 80 cents at $74 per share. how about this, "sports illustrated" honoring the #metoo movement in its annual swim suit issue. the photo series called "in her own words" features models with various words written across their bodies in black marker. the words include natural, human and truth. mcdonald's releasing an 18-carat gold ring called the bling mac. up next, we'll tell you how you can possibly get your hands on one of these things. [laughter] but first, you've bot to see this. -- got to see this.

instruments made from ice carved from a frozen lake in norway. up next you'll hear them play. you get it all on "varney & company." i don't think they play the beatles. >> norwegian ice. ♪ ♪ hi, i'm the internet! you know what's difficult?

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stuart: stock market alert, please. we're down 426 points. now, we're not seeing volatility in the classic sense of up, down, down, up, down, big moves like that. that's not what we're seeing. in fact, what we've seen so far today -- and the market's been open nearly two hours -- is pretty much straight down. it's been a gradual straight down movement, and we're now down 430 points, 24,450. and that's a one and three-quarters percent drop, 3.74% drop -- 1.74% drop. we also have significant drops in the nasdaq composite index, the s&p 500, all of them down about 1% or a bit more. so this is a broad-based, continuing selloff. 24,469. >> yeah. the vix is now up 9% above 30 again, which the volatility has

returned. you've got a lot of itchy, twitchy investors, and they push the sell button pretty quickly. stuart: okay. i think interest rates are the problem. >> it is. they are, yes. stuart: the two-year treasury is 2.8 6. >> this is the same action we saw happening friday. so, you know, it's going to be a rocky ride, i i think, into the close. stuart: could be. we also have -- we've been talking a lot this morning about this budget deal which will inject an extra $300 billion of government spending into the economy in the next two years. that will raise the deficit. we've been talking today, and we've got experts to confirm it, that we will have a deficit in the neighborhood of a trillion dollars a year starting, what, about two years from now, maybe 2019, maybe 2020. >> right. stuart: but that magic number, a trillion dollars' worth of spending extra, overspending if you like, at a time when the economy's going 3%. >> yeah, this -- stuart: trillion dollar deficits in 2008 coming out of crash.

>> it's interesting, the story was last year deflation. it's inflation now. the story is inflation and interest rates going up. stuart: but gold is not up. >> no, not much. stuart: still around $100 an hundreds -- 1300 an ounce. >> yeah. >> i think you're seeing a rotation out of some of those equities into bonds which actually has the impact of bringing down the yield on the ten-year because money is seeking a safe haven, that's why the yield goes down. it's ironic, really. stuart: that's a good point, because you sell stock, you liberate the cash -- >> correct. stuart: you put it, you buy the ten-year treasury, that pushes the price down. >> correct. stuart: so the yield goes up. >> but it's the other way around. stuart: it's the other way around. i'm sorry, i didn't mean to confuse anybody. you sell stock, you liberate the cash, you put it into the ten-year treasury -- >> right. stuart: -- the price goes down -- >> no, the price goes up and the yield goes down. >> the demand is there, the price goes up. stuart: seesaw movement between

stocks down and yields down a fraction momentarily -- >> that's where the equity money's going. >> you don't have to attract money with higher yields if the money is pouring out of stocks. we're still coming to grips -- stuart: we're down 453 points now. on your screens, some of the dow's biggest losers; walmart down 2% at $100 a share, johnson & johnson down 2%, coca-cola is down 1.5%, nike down nearly 2% and american express, 1.7%. moments ago we had on our screens the big technology companies. we focus on them because they're so important to this economy and for this market. >> yeah. stuart: all of them are now down, every single one of them lower. all right, we -- dare i say stabilize, no, i shouldn't say that because we're still down 450 points. a big tech, facebook is back to 176. it's down $3. amazon is down $27 a share at

$1388. microsoft is down nearly $2 at $87.74. alphabet down $22, barely above $1,000, it's at $1,033. apple is just a winner up five cents, up three cents now, maybe it'll turn negative. 159 is the price on apple as we speak. and the economy -- the markets -447 points. i'm going to try and bring you as many stocks as we can. almost all of them are down. again, apple is the only winner. not much of a winner at that amongst the big technology stocks. and is we're now down 442 -- i'm sorry, points on the dow. >> yep. stuart: i want to bring in russell price, senior economist with ameriprise. welcome to the show, russell, good to see you, sir. >> good morning, stuart. thanks for having me. stuart: now, i'm trying to explain this sudden, this decline today in terms of rising interest rates. what do you say?

>> well, certainly the points lost are very large, but on a percentage basis we're still within that range of about 5-10% off of the recent highs, so this is a normal correction. it is right to be a little bit worried about higher interest rates. higher interest rates make borrowing costs of consumers and corporations more problematic. they take away some purchasing power. and they take away some of the attractiveness of stocks. so higher interest rates -- and we'd expected interest rates to be higher this year somewhat, but recent activity as you've been talking about with the budget spending agreement implies that the government's going to be borrowing more, and that should push interest rates -- or pull interest rates up a little bit more. stuart: now, do you think that that rise in interest rates that we are expecting and you're expecting it, is that going to put a top on the stock is market? in other words, is it not going to recover to its previous highs? >> well, by the end of the year

we still think it's somewhat reasonable to see the stock markets generally higher than where they started the year. we still think it's going to be a positive year primarily because corporate profits should continue to do very well, and the economic outlook is quite solid also. it really is a story of just how high interest rates go and how much pressure we get from inflation. again, how much of economic growth potential is shaved away by just being lost to higher prices in the form of inflation. stuart: well, if that's your brief, that we'll end the year -- the market, that is, the stock market -- higher than the way we started the year, if that's your contention, are you advising people to buy some stock at bargain prices now? >> well, we, from our perspective we maintain balanced portfolios. we think in the long run that is really what is the best strategy for long-term investors. and so during these periods we

advise investors not to really change their strategies. if they do have additional capital on the sideline, maybe they did get a little bit of a bonus from the tax cut that was passed for corporations and maybe their particular company passed on a little additional bonus, then we do think it's still appropriate to and reasonable there a risk perspective to add it to the market. stuart: well, apart -- other than investing in a balanced portfolio as you do, what's your advice to viewers at the moment? >> well, we still think that this period of volatility will pass. right now the market is incorporating the expectation of higher interest rates, and i think at the gunning of the year -- the beginning of the year the market did expect higher interest rates, but the speed at which they did jump over, say, the last two weeks took the market off guard a little bit. and certainly the news over the last few days that the government will be seeking to borrow an additional $300 billion over the next two years,

that's adding to that fear. somewhat of a cushion to the interest rate outlook, however, though i think is important to note that right now usually corporate america would be looking to borrow also. and that is still likely to be the case, but corporate balance sheets are in such strong condition today that there is less likelihood that they're going to be pushing the rates higher than they normally would. stuart: all right. so russell price expects the dow -- the stock prices to be higher at the end of the year than the way they began the year. the voice of calm. all right, russelling thanks for joining us, sir. we appreciate it. on the phone, d.r. barton, are you also a voice of calm? i mean, we're down 466 points now. what's your advice to viewers? >> well, i think there is a very important thing for everyone to understand right now, and that is that we have a period of jittery markets. we would use something that

could get a buzzer of the word volatility in the trade, but the markets are just bouncing up and down a bit right now because of some uncertainty. we've had this 15-month run without a 3% pullback, stuart, and now a little bit of downdraft. we are in no danger until we get near tuesday's lows. so nothing to do unless we get near tuesday's lows. stuart: okay. so sit tight, don't move a muscle, don't sell or don't buy whatever it is -- >> keep calm, carry on. stuart: keep calm. but a lot of people have told us this market is going to test the low that it hit on tuesday which i believe was somewhere in the 23,000 area. do you think that's going to happen? >> i think that is, that is a possibility, but i believe that if we do, stuart, that that will be a bouncing point. you know, right now we're getting a lot of people worried about several different things; the interest rates which you folks have covered so well and what's going on there.

but i believe that some of the calm that's coming from washington and just -- [audio difficulty] for a second and look at the fundamental picture, how well tax reform is going to be reflected in this market, how well global economies are doing that this is by no means a panic state. it's just the first -- [audio difficulty] we've had in forever, so everybody's a little spooked. stuart: thanks, d.r. barton, for joining us on the phone. mike murphy is with us, i believe, usually -- >> what's so nerve-wracking is when do you buy the dip. that's the anxiety. when do you step this? nobody can call a bottom, but a number of names -- [audio difficulty]

stuart: we're still down about 1.5%. mike murphy on the phone. advice to viewers right now. let me go further than that. would you buy the dip? this is a dip, would you buy it? >> like we discussed earlier in the week, the advice to viewers is not to panic. there are no good decisions being made by panicking in the market right now. let the news settle in, but if you see quality companies that are trading at a discount due to volatility, you absolutely step in and you buy. stuart: okay. you've always been a big champion of facebook. it's dropped, i think it's down to about 170 and change now, 176 at the moment. do you buy facebook at 176? >> well, if you remember, i bought it earlier this week. i wouldn't buy here because it's only having a pullback of just under 2% on the day, but i'm watching all the quality names, facebook being right at the top of the list. i'm also watching your

microsoft. i have all of the banks on a watch list also. the quality companies i want to buy because i believe this volatility will settle in. and, remember, nothing fundamentally has changed on these companies in the last week. you have volatility in the market which is bringing some sellers in, but that's creating opportunity. stuart: mike murphy, thanks very much for joining us this morning. >> thank you. stuart: the dow industrials are down 361 points. we were down 450 just about ten minutes ago. >> i'm telling you, look at the blue chip names now in correction territory. we're talking -- stuart: that's down 10%. >> correct. chevron, johnson & johnson, intel, caterpillar. so you talk about buying the dip when, you know, these are some of the names that people -- i would think -- would look at. stuart: okay. i want to leave the big board on the screen and bring in dan henninger who just happens to be with us at a very opportune moment -- [laughter] and i say that because the title of his piece today in "the wall street journal" is the trump panic. but you are not referring --

[audio difficulty] >> panic does seem to be in the air, doesn't it? stuart: is sub-headline is the elected president was unacceptable and had to be stopped, so they panicked to try to stop him. >> the fbi. well, what i'm writing about, stuart, is in the context of what we now have in washington, dueling memos over the fbi's fisa warrant. ing you had the republican memo last week, question is whether the democratic memo will get released this week. at the center of it is the fbi and the steele dossier they submitted to the fisa court. why did they submit something as dodgy is as the steele dossier. and i think the explanation is what happened on november 8th, 2016. two things happened. donald trump won the election and, secondly, the trump panic began. we all remember the reaction when the runup to the presidency and when trump won, we had friends who thought the world was -- a totally unacceptable

person had become president of the united states. stuart: true. >> and this view was held -- remember all those lists of foreign policy who said they would never serve in a trump administration? the never drum pers, foreign policy -- drum pers, foreign policy leaders, they thought trump was unaccepting. and this infected the fbi. i'm absolutely convinced it caused them to break professional discipline. all the rest of us can have our opinions about donald trump, but if you're in the fbi, the cia or the military, you separate your politics. and the fbi, at least some of the people in the washington headquarters such as peter strzok, andrew mccabe, bruce orr, i think, broke -- sally yates. remember when sally yates was the attorney general? she refused to enforce the travel order. she said as long as i'm attorney general, we are not going to enforce this travel order. what is she talking about? elliott richardson resigned during watergate rather than enforce a directive from richard nixon. you don't simply say you're

refusing to do something like that. that was part of the trump panic that had spread through washington among all of these bureaucrats, and that's what caused the fbi to go off the rails with the fisa warrant. stuart: they panicked, and now they're finding out what they did -- >> yeah. stuart: -- to back up their political opinion. >> a lot of it's e-mails or texts between peter strzok and liza page. liza page sent a text to peter the day of the election saying, oh, my god, i am freaking terrified about this election. or he writes back to her later, oh, my god, i'm depressed. he was the head of counterintelligence for the fbi involved in the clinton e-mail investigation and then with mueller for the russian meddling. stuart: and she said in a text potus wants to know everything we're doing. >> yeah. stuart: and the president had previously said he'd never talked to the fbi or the justice

department about investigations. so he's now caught up in this, as you call it, the panic -- >> the trump panic. and i think fbi director christopher wray has a big job restoring the sense of professional responsibility and discipline inside fbi headquarters. stuart: thanks for being with us, dan, very timely piece right in the middle of a market -- >> more panic. stuart: not quite a panic -- >> opportunities. stuart: that's interesting. opportunities. when you've got a selloff like this, we're down 348 points, we turn to a guy like charles payne who in the past has said, he's salivating at these lower prices because he wants to get in, into a panic, and buy. yes? >> absolutely. absolutely. i heard you had kevin kelly, i think, a moment ago -- >> mike murphy. >> mike murphy, rather, and before that -- >> d.r. barton. >> they both were calm about everything. barton, i like that he pointed out to the week's lows. i think that's going to be a number a lot of technicians will watch to see if that holds. i was in transit, unfortunately,

from jersey city to here, so i missed a lot of the action. stuart: the bottom line here is that you are not concerned about this dramatic selloff of this week, you're not concerned, you regard it as an opportunity to pick something that's of value that's gone down too far. >> absolutely. absolutely. i went and talked to my office today and said i'm going to put out a piece called today is yesterday. stuart: okay. >> do you know what the premise of that is? stuart: no. >> how often have people looked at the market and said, oh, man, twitter's up 25%, i was going to buy that yesterday. well, guess what? yesterday is coming. [laughter] that's the message i want to echo to folks. yesterday is coming. you missed it. guess what? now you have a chance. i do understand the anxiety, and my first full year as a broker was 1987. so imagine this -- [laughter] this is a life-long dream. >> october 19th. >> and i'm working hard, i'm cold calling people, they never heard of me, they're slamming

their phones, i'm building a little book, and the market crashes. the market crashes. and there dose my life-long dreams up in smoke in my first year, or so is i thought. stuart: but -- >> but? >> the next month was better, the next month was better than that, and i went on with the markets, and i enjoyed it, a 13-year run. so, you know, the problem right now is a lot of people got into this market late. >> right. >> and those are the folks who are getting whip sawed right now because how many people always say i'm not get anything the market because as soon as i get in -- >> guess what? [laughter] >> goes down. >> right. >> don't make it a self-fulfilling prophesy. if you took a shot on something, well, that's something different. >> he's a good man. >> he's a great man. >> not bad at all. stuart: i'll watch your show tonight. >> watch it with some notes, bring a pen. [laughter] i'm going to give a coupling names out tonight. >> great. stuart: we're going to leave on your screen what's going on with the dow industrials because this is a very sharp decline. we're down 1.5%, almost 400

points to the downside. whilst you watch that, let's deal with this: the congressman congressman, john gaer moonty, yesterday on this program said illegal aliens, illegal immigrants will not be registered to vote under a new law in california. roll tape. >> they cannot register to vote. there's a different system for registering to vote for those who are citizens versus those who get a driver's license that are not citizens, legal or illegal. that's a fact. stuart: okay. dramatic statement there from john. i had gone to him saying that a new policy, a new rule in california would allow illegals voting rights because they registered to vote as soon as they register to drive a car. come on in california gubernatorial candidate doug ose. doug, you've got to get into this discussion here. can -- will illegals be able to vote in california under this

new proposal? >> so congressman garamendi needs to come back to california every now and then. the form that is used at the dmv requires self-selection. you have to check a box to say you're an illegal alien. if you don't check that box, you go on the voter rolls, and nobody's allowed to ask you for identification to prove who you are. so congressman garamendi needs to check out how the system works, because we are subject to illegal voting as it stands today. stuart: thank you, sir. thank you, doug, because i, i missed -- that interview i did not handle properly because i didn't know the facts. i didn't realize what you've just said. the bottom line -- >> i'm available, i'm available to come work for you. [laughter] stuart: the bottom line is that it's not that difficult for illegals to vote in california. >> to cheat the system. stuart: to cheat the system. in fact, it's extremely easy.

and at the voting booth, you can't check. >> that's correct. and the system was set up this way on purpose by the democrats. stuart: and that will insure a permanent democrat majority in the state of california and will interfere in federal elections like the presidential election where california has 55 electoral college votes. this, sir, is a disgrace. go ahead. >> that's correct. we have a system here that the democrats put in place, the secretary of state -- a guy named alex padilla -- refuses to clear the rolls of ineligible voters or people who have passed away. in some instances we have communities with 140% of registered voters who are on the rolls. this is a mess, it needs to be cleaned up. the democrats own it, we're trying to change it. stuart: okay. one more for you. free education in california. there seems to be a movement to make a serious push for free college. is it free community college for a couple of years paid for by the taxpayer in california? is that what you're going for?

>> so let's be clear, there is no such thing as free when you're talking about a government program. somebody has to pay for that. and in this case, what they're trying to do is shift the cost from themselves to the taxpayers. they're missing the point. if you make something free, it loses value. it undermines the interest of children who are in k-12 to excel at what they're doing so that they get admitted into university on merit. there are lots of scholarships available. this is a, this is a very bad policy move. it will undermine the ability to deliver higher education for engineers and scientists and doctors. it just -- this is terrible policy. stuart: okay. >> terrible policy. stuart: doug, i'm almost out of time, and i do apologize for that. we've got a very active and busy marketplace right now. thanks for the information, come back and visit soon. >> always a pleasure, stuart.

stuart: yes, sir. thank you very much. we have christian mcgoon on the phone commenting on the market. advice to viewers right now, christian. >> yeah, hi, stuart. i think viewers who are long-term investors probably need to stay put. if you have some cash on the sidelines, i think you wait another day or two to potentially deploy that. i think we could see a dow can point drop that's larger than the largest one we saw in history several days ago. watching the 0-year treasury bond here -- 30-year treasury bond here, and as long as that continues to be red, i don't know if we've seen the bottom in equity markets. i think we're going to second test here of the bottom in the coming days. for investors, again, who are long term i don't think it makes a huge amount of difference over the next 3-5 years, but those who are tactical or have cash on the sidelines, i think there's some more bargains to come. stuart: we hear you. i think we're getting advice similar to what charles gave us, look for the bargains.

and if you're long term, stay in, don't panic. >> that's right. stuart: that's the advice, right, charles? >> that's it. stuart: all right. let's get back to politics. this is hard core, actually. bombshell report on the uranium one deal. an fbi informant gave written testimony to congress that the russians paid $3 million to influence hillary clinton on the uranium deal. the money went from russia to an american lobbying firm that provided help to the clinton foundation and then the uranium deal was signed. russia got 20% of our uranium. doug schoen is with us now, he's a former clinton pollster -- >> that's right. stuart: and you worked right in the middle of the clinton white house. >> i was. that was 20 years ago. i wasn't involved, mercifully, in this scandal. stuart: does this sound like something that the clintons would be behind? >> no, the clintons aren't behind this. the russians are behind this, and that's the point in this story. look, the russians felt they could effectively launder $3 million through a public affairs firm in washington to influence

the clinton foundation. there's no evidence that the influence itself they sought was achieved, but it is clear they had a plot and a plan, and i think that it merits further investigation. stuart: but the clinton -- the uranium deal was signed. >> it was. but the nexus that you're hypothesizing has not been shown or proved which is not to say we shouldn't ebbs mother what mr. campbell -- explore, what mr. camp dell, the source, has said, we shouldn't investigate, but so far we don't have evidence that the money that was paid by the russians to the clinton foundation influenced hillary's position on uranium one. stuart: the money went from russia to an american lobbying firm, i think it's called apco. >> that's correct, yes. stuart: they provided not money to the clinton foundation, but free services. >> correct. stuart: free labor with a view to getting the foundation and the future secretary of state, hillary clinton, to giving a nice, favorable view of the uranium deal and other -- >> i'm not sure that last point

has been established. but certainly, that was the russians' goal -- stuart: you were involved in plausible deniability. >> no, i think what i'm trying to do -- stuart: this is plausibly denial. >> there are no facts to support your final assertion, but it is clear the russians were doing something malevolent, evil and dishonest. it's clear there was complicity of a lobbying firm in activity they shouldn't have been -- and all i'm saying is let's investigate, stuart. let's get to the bottom of it. let's not rush to judgment. [laughter] i'm not defending hillary, i didn't support her, the clubtops are not happy with me -- clintons are not happy with me, but the evidence doesn't support your position. stuart: wait. why did the clinton foundation take so easily this help that came from russia. >> because they were taking help from everybody. stuart: and they shouldn't have been suspicious? she was about to become the secretary of state, and she's taking help from the russians? she took the help, come on. >> no, the foundation did. she was not part of it then.

stuart: oh, yes. plausible deniability. >> you keep throwing that phrase around, and i don't quite know what it means -- [laughter] stuart: wait a minute. doug schoen knows the meaning of -- >> in this context, i must confess i don't know, but i do know that there's plenty to investigate and that you as a naturalizedded american should -- [laughter] give the clintons the presumption of innocence in the absence of any facts that show -- stuart: and i will. but i'm just asking how many times have i had to give the presumption of innocence -- >> a lot. stuart: -- to bill and hillary clinton? i could list them. >> you could. but, again, let's prove it. and if it is proven, i hope there are prosecutions. if, and that's a big if. [laughter] stuart: okay. you're funny, doug. you really are. >> i'm going to florida too. [laughter] stuart: there you go. doug schoen -- >> take care. stuart: thank you. back to the markets. let's not forget where we are. this is a serious downside move. we're up 330 points now, have been down 450 just moments ago.

david barnes on the phone, he's one of our market watchers. advice to viewers right now, please, david. >> well, let me tell you something, stuart, the dow is now down a whopping .6% on the year. so in the midst of this just kind of crazy week of volatility, you basically have a flat market in the last five weeks. so we have to take it in perspective. the volatility right now is not being driven by fundamentals, nobody thinks it is. a lot of technical factors and pressures that would bore people to pieces to hear about, but i'll give you the big fundamental encouragement. right now corporate bond spreads have come in meaning people are so afraid of risk out there that they're actually taking less compensation on corporate strategies than they were a week ago. that doesn't sound to me like a fundamental risk off. stuart: do we have a problem with the debt bomb?

this new budget deal in the senate add $300 billion to government spending in the next two years, and we've been talking about trillion dollar deficits within two years. surely that is a factor in the market today. >> well, it's a factor in the bond market in that the bond yield's pushed up to 2.85% on the ten-year, and as that happens it reallocates and reprices more income or more assets out of equities. now, is it a real fundamental problem? i think it's a political problem. but, of course, we have had these deficits before. they're brutal, they have to be dealt with, but we have to have the growth to be able to offset it. i've said it on your show before and i'll repeat, the $300 billion i don't like. i like the military spending, i don't like the rest. but the real issue is entitlements, and we haven't been willing to address those for some time. the bond market, look, if the bond market was really, really ready to kind of throw up on all of this, we would not have a

ten-year at 2.85. >> good point. stuart: okay. i help you. i don't know about the bond market throwing up, but we'll leave it at that. david, thank you very much for joining us at short notice. we've had a modest bounce off the lows, but we're still down 320 points as we speak. headlines from paul ryan. he just said he supports the senate budget plan. when asked about the debt he said economic growth will help pay for it. he also said an immigration deal will be done separately. chad pergram, fox news senior capitol hill producer, chad joins us now. chad, i heard earlier this morning that nancy pelosi will not support the budge that's come out of the -- the budget that's come out of the senate. does that make a difference to the progress of the budget in the house? >> very possible because the vote mixture in the house of representatives is going to be crucial to get this across the finish line. they don't think that's going to be a problem when they move this in the senate later this afternoon or in the early

evening. but you're going to have a number of defections on the republican side of the aisle, members of the conservative freedom caucus don't like how this is exploding the debt. this also suspends the debt ceiling through march of 2019. so in order to make up the difference, they have to get democrats onboard and, again, democrats don't want to vote for this, especially liberals, because this doesn't do anything for daca. so pelosi making her stand literally on the house floor for eight hours and seven minutes yesterday, you know, that was her sort of whipping against this bill and indicating that she wasn't going to support it. kevin mccarthy, the majority leader, however, points out, you know, that she was part of the big four, the negotiation here, so why, if she was at the table, is she working against immaterial. that's a lot about internal politics with her trying to solidify her position inside the caucus because, you know, people might say, wait a minute, she's going to be 78 years old next month, there's been some push from younger members to get her out. that shows that you have the stamina to still be the leader. stuart: ah, show you've got the

stamina when you're 79 years old. i certainly admire that. chad, thank you very much, indeed. good stuff, sir. we're down 324 points. bouncing off the low a little bit around 318. you know, charles, a lot of our market commentators have said the same thing as you've been saying -- >> right, right. stuart: -- 2k0e7b9 panic, we're not going to go all the way down to 15,000 or whatever. stay in there and look for bargains. repeat that. >> i do agree 100%. the only thing that i'm doing right now is trying to see if this is a smoke screen, if there's something else we should be looking at, if our attention is being diverted because everyone's saying the same thing, right? >> maybe. >> the debt bomb didn't mushroom overnight. we added $10 trillion to the debt -- stuart: hold on a second, hold on, charles. look, we've been talking on this program this morning -- i don't know whether anybody else has, but we certainly have -- about trillion dollar deficits within a couple of years. now, that's a scary number.

>> it's a scary number, but it didn't emerge last night. all i'm saying is that we came into president trump's presidency with $20 trillion in debt. so, you know, everyone knew when interest rates went up, servicing that debt would be a problem, perhaps a trillion dollars a year just to service it. but as someone who watches the markets very closely, i get worried when everyone's echoing the same reason why it's gone down. of course, we keep hearing bond yields, right? i keep reminding people in 1980 when the market peaked, the yields were 12%. in 2000 the yield was 6%, 2007 yields were 4.a 5% and coming down at that moment, not going up. historically, 3% yield on a ten ten-year bond should not crush a stock market. >> been so low for so long, that's the problem. >> there's a complacency issue. >> yes. stuart: i'm worried stiff with an economy on fire, 3, maybe 4% growth, and you've still got a trillion dollar deficit.

>> well, you need a strong -- listen to what paul ryan said. you justed had the -- there. he's saying that we're going to have a strong supply side economics means that you have an amazing economy. that amazing economy grows receipts at the treasury department. stuart: it does. >> right. and that's how you pay off the debt rather than kneecapping the economy with higher taxes. in other words -- stuart: i'm with you. >> -- in this scenario, the american public and corporations come first. they generate the economic opportunities, and that money comes in to this treasury. they make more money in the long run because you're generating greater economic activity. stuart: growth will not balance the budget. lizzie, you've got dow stocks which are in correction territory, that means down 10% from their high. >> from their high. chevron, ge, ibm, merck, exxon, p&g, intel, pfizer, caterpillar, 3m, unitedhealth. the sector really getting hit is industrials, so they're capital-intensive. in a rate-rise environment, that kind of stings their balance

sheet and their cash flow. but, you know, i'll tell you something, we are back at where we were in mid december, so we've lost about a month and a half of gains. stuart: now, can you tell me the yield on the ten-year treasury? >> 2.853. stuart: and actually falling. >> yeah. stuart: that's interesting. again -- >> money coming out of equities, going into the bond market. bond prices go up, yield comes down. to charles' point, . >> we're it trouble. you know, very low. we're in a lot of trouble. liz: it feels like a technical comedown from markets, excuse me, stocks being overvalued. taking some -- >> you could argue last year was the most complacent year ever for the market. liz: no kidding, it doesn't go down 3%. >> volatility emerges. dow down 1100 points. a lot of people not seen that anymore. regular investors and people on wall street. liz: stay on that just a second. the s&p never went down by more

than 3%. anytime last year. we never seen that in the history of markets. stuart: now we are. >> making history again, stuart. stuart: i'm afraid we are. down 370 points, 4,522. neil, u.s. neil: we're following what is on stocks and bonds and 10-year note. at what point would you see and look at relative safety of a 10-year treasury note? what would be the trigger point for you? it might have been 2.87, 278%, from home mortgages to a lot of car loans. now in that is something that holds here, in order words buying a 10-year note at 2.88, enough to bring it down to 2.86, you know the the