freeman final thoughts. >> your interview put me in a really good mood with we open hire i'll call this the howard rally. thanks everybody. prump entitlement reform, buddy -- good day everybody i'm see you tonight on wall street and on sunday. stuart take it away. >> we'll see you maria we'll look. maria thanks thank you very much indeed. we've had the correction down 10% from the highs. now what? it has been a rotten week for your money thank heaven it is friday dworng everyone. all right here's where we stand the market will open higher toed tune of about 100 points. okay that's the morning that's friday morning. this follows a week like just really extraordinary. i've got to give you some perspective on the week and what we've been seeing number one all of the knew on the economy shows accelerate growth and rising wages economy is not the market's problem. number two, rising interest rates are a problem. a risk free 3% return from the

government bond is attractive compared to risk in stocks right now. 283 on the tenure. three, another problem is the internal workings of the market exotic product, robot trading up a pushing stocks to rapgd sell ising? as of now the dow is down 6.5% so poor this week. with will open higher. do not know how we will close or where we'll close. but back drop this morning is another chaotic night in congress. but we now do have a budget for the next two years. that's not necessarily great news for investors. but bottom line on this republican budget government spending goes way up and so does the deficit. again, we're hearing the words, debt bomb. "varney & company" is about to begin.

it changes so rapgdly that we're going to show you futures all over again. all right we were up 100 now we're up 60 you've got to watch this. literally moment to moment. wall street is on course for its worst week in six years. it has been a really qield ride for stocks just this week. these are the swings in the dow. we could go friday 600 look at that screen thousand point swings monday and thursday. tuesday 500 last friday 600 you get the story. that's a qield ride indeed. now, there are 17 stocks in the dow 30. which have reached correction territory that means down 10 prct that their highs and run through them this is how they're trading right now. may have been down 10%. but gemerk chevron rocketer and gamble are up in premarket trading today. same story with exxon. johnson & johnson intel and corrected 10% up premarket

today. fisa home depot all of them up better than 1%. now look a these four. disney united health american express dow dupont show is gains for year 2018. oh -- i'm sorry, they, i'm sorry misunked there. these four disney united health american express they are in correction territory. they'll all be up this morning premarket. now here's the forward dow stocks which which are still showing ingas for 2018 boeing, cyst can an wall with mart off those are up some more. a very interesting open to the market. for those big name stock. bob dahl joins us with new investments is on the phone. when does the volatility end? >> i think it will lessen from here. i think this was the high volatility week and will go down

from here but we're not going back to low volatility days that we enjoy most of last year into early part of this year that came and that went. investors need to get used to a little more normal volatility remember volatility has two sides not just down we can go up too. >> i want you to put yourself in my position speak to our viewers give them some advice what should they do now? >> first they need to recognize what caused this. you said it well at the front of your show. the beginning of interest rate increases that's what the trigger was. but this week wasn't about interest rates going up. this week is about the forced leveraging among exotic products. that's what took the market down. that's creating opportunity. because number one, the economy is good. number two, earnings estimates are still going up. number try, banking system is healthy. number four valuation levels have come down to where they were in early 2016. and number five companies are

buying back their stocks. so look, being a hero and trying to claw bottom is hard but i think yesterday was a good day despite being down a thousand point we saw all of the positive technical die fewer new low. less downside volume so i think the voltity is lowly lessens dollar cost averaging. >> how unusual thank you. thank you for being with us. exactly what we want on a day like this. you'll be back. thanks, bob. good stuff. now, i have to deal with this budget deal. the bottom line is that spending goes straight up. now, listen to what president trump just tweeted about the the budget. i'll read it for you. without more republican it is in congress, we will force to increase spending on things we do not look or what in order to finally after year of dmeetion take ire ka of our military sadly we needed dem votes for passage but elect more

republicans in 2018. with us rousers checks university of maryland i'm widely disappointed with are republican party and what they're doing to us. what say you? >> well budget is terrible but just engrass and wholly unnecessary. certainly we need to do something about defense. we need to spend more money in places but you know there are places where the defense budget needs to be reformed. and there are lots of places where it is entitlements need to be reformed to make room for what we need. instead qee going to go to one trillion deficit you know what will do to interest on rates to american debt. >> absolutely but look we always hear it be this debt bomb. it is expression i've been using for proablg 20 years. debt bomb welcome debt bomb but it never happens. nothing ever happens. when will it happen? >> well going into this mess we were already -- getting very, very close to the level you know over the next decade where we would be in same

boat as spain likely sooner 60% of the federal budget now goes to entitlements within ten years, entitlements will take every single dollar that federal government takes in. that was before the tax cuts. so the government will have to borrow just to keep the lights on. foreign investors are starting to see this. the premium that the u.s. bonds used to get that they used to be able to sell them at lower interest rates than say other government bonds is gone. foreign investors realized if they boy a 20 or 30-year treasury they're risking a major capital loss so we are starting to see it ease in. but because we print a reserve currency there isn't going to be some moment where they evacuate and abandon us. but rather we're going to pay more and more to threat our debt which is going to create more and more pressure on deficit more and measure pressure on budget answer sooner or later americans have to pay higher taxes and attack a big cut in starngd of living or o finally

do something about all of the debt beats getting, you know, fraudulent social security claims. 40-year-old guys are sit home and watch games and basicliest phenomenon and collect food stamps. something has to be done this. >> i don't think we will ever treads on the third rail of american politics which is -- the radical reform of medicare and social security. we will never do it. >> disability may be -- but not social security. but social security disability one out of 20 americans are on disability now. >> that's a beeted thing and do something about it been butout flow of money and medicare and social security that has to be stopped if you want a handle on government spending on the debt you've got to do that. and you can't do it is the nature of american plucks. just my opinion. last word to you. >> i think you're absolute right one of the things to remember about mr. o'connell is he's interested many making a good deal rather than doing the right thing he's a legislator not a conservative and he doesn't have 51 conservative votes. as long as you've got --

collins and who really come from welfare states. that's where these guys are. there you got leak one out of ten collected welfare you really can't get anything done. we saw that with with the health care debate. they simply weren't willing to vote for a bill that makes a reasonable reform on medicaid. it's perfectly fine for senate collins in maine to give out welfare to guys who are 5 years old and refuse to work. and until the senators purge people on their republican side who buy votes as if they were you know nancy pelosi, were simply not going to get progress on this thing. it's a political problem. >> dream on. [laughter] it is just the way it is. peter thank you so much for being with us. back to the wild markets. i want to bring in jeff sikher as you can see it is a wild week. i want to know how much of this -- wildness was the result of internal market movement. you know the robot trades ets unwinding that kind of thing.

how much of that? >> you have to -- on monday o the market is moved 1400 point down since monday and reality of this market is a lot of the volatility has created this incredible opportunity for professional traders and they're exploiting volatility to make money. and investors need to realize that they're being lured into some of this volatility only so that professional trader could wash them out and stream roll them. so what i said -- and what i said on your show -- not only do you have that. but you have a lot of investors that have been completely statived out of the bond market. and they're -- renting stocks and in order to get dividends. now, all of a sudden they are waking up to the fact that -- the opposite of complacency is always and has always been panic, and when we see this volatility, that panic is what results. dges jeff we're going to stick arranged please because we have a lot of big market to cover

today. hold on a second because i really got into it. get into a big deal. amazon here question go. they're preparing to launch a delivery service -- oivelg going to compete request fedex and ups. >> direct competition is called shipping with amazon but if yowpght to go with acronym swa is what it is called what it does is amazon picks pup packages from businesses and ships them on to consumers. those third party businesses that -- sell goods on amazon platform. it is not going to come out for a couple of weeks but start in l.a. it will undercut prices of both ups and fedex this is a big deal. don't forget they actually tested and rolled this out in london last year to great success they already have a network of their own drivers. they already have leased up to 40 aircraft. they have an air cargo hub. fedex on ups knew this was coming but this is huge direct competition from amazon. whole foods effect. the health care is effect. the delivery service effect. amazon is involved. got it.

senator rand paul spoke for hours on the senate floor last night and he held up budge vote one of the reason ares why government did shut down very briefly early this morning. well rand's father comes up later this morning on this program. look at future again you have to check them all of the time because it is moving rapgdly now we're going to be up about 90, 100 points to the opening bell this is how we're going to open after a truly wild week. more varney after this.

>> i keep checking those futures because all right now we're up 100 pointses that's how we like it to open on the upside, of course, we've got 14 minutes to go, that could change. apple's home pod well it huts had the shelves today. tell me it be. >> it is expensive two and a half times other devices people are loving expansionive lush sound coming out of the home pod review coming in better than the

cardin amazon echo two in terms of the sound and also talking to it pick up your voice and property from further distance and other home devices. so -- except for you you can still get the weather sports alarms but preem driven to distraction with their devices like your google mess. so -- [laughter] i do know. nothing drives people more to the brink of insanity than technology this device automatic sweeps up on your phone and puts it in the home pod you don't have to deal request it. >> something -- i'm in the a fan of apples you know what, what first of all what took them so long to introduce this? and second of all this is completely hostile to any link to any other -- device. so it really, it really enslaves people to apple which is what they're trying to do. but apple -- picking up. this two, three years ago. this is apple's tendency but wait until they -- wheel out an inferior product

but a win. >> we'll see. i doubt it. don't mock it too much. >> i'm staying on the majorities greg from -- is with us i've not heard from uh-uh you in a long, long time. now greg watches washington and he watches wall street at the same time. so i have the following question: we have a selloff and a half on wall street, does that upset president trump's agenda going forward? >> way too early to say in my opinion i think by labor day we have gdp growing at 3% which i think is likely if we have unemployment well below 4% i think is likely you'll actually be a beneficiary of this tax bill. maybe the big threat is that the economy could actually overheat. smg that's interesting so you think he could still the republican could still, win in november? : democrats have high motivators as we know but i think vote with their pocketbooks and this economy to me --

has surplus everywhere. tax surplus spending stimulus global growth labor tied market. i think bit enend of the summer it will be hot and help the republican. >> i have to tell you that the republican party is now -- vastly expanding government spending. and will vastly expand the deficit, the debt call it what you like. i don't like that. i think that republican party is -- abandoned its -- financial responsibility. what say you? >> it is an extraordinary story one of the biggest shifts on fiscal policy. i think for the next two or three year we're looking at one trillion dollar deficits with a goods economy. if you have a bads economy one trillion dollar deficits may be you could excuse. but the magnitude of these deficits have to choir at the bond market. i think that's why we have had such a volatile woke and getting nervous about deficits and economy that could overheat. >> greg do you remember i know you do. that bond vigilantes --

they were the people who jumped in there and corrected movements in the economy because we were borrowing too much. do you think they're vigilantes will come back? >> shea sure could. could be crowding out stuart. i think one of the problems in this town there's no one really who wants to take on any kind of spending whether it is a trim on social security and medicare. you look at the mag tutted of the spending increases we've gotten in the last couple of days and you shake your head i'm not sure the economy needs it right now. >> no, look we're already growing at 3%. we've already got tax cuts. we've got bonuses other goodies that are passed through and now comes 320 billion dollars of extra government spending in the next two years piling on the surplus here. >> also add a important element which is where to we get workers is when i travel arranged country see ceos they tell me their biggest problem is lack of skilled labor. yet we see the president running to cut illegal immigration.

so i think a tight labor market is going to contribute to possibly an overheating in the economy. j i guess we shouldn't complain too much. i mean a very, very strong economy is good for every american but i'm worried about this debt bomb and deficit and the debt and government spending. a trillion dollar deficit scarce the hell out of me when economy is growing 3%. and you've got a trillion dollar deficit i think you have a fundamental problem. >> last word to you. >> you cannot grow your way out of this. a good economy will bring revenues up a bit. but at the same time there's got to be some fundamental changes and neither party has the political courage to do it. >> leave it at that. greg welcome back good to see you again, sir. thank you. thank you. got to check futures all a of the time now we're up about 80 points from the dow. 13 on the s&p. 60 on the nasdaq look like nasdaq technology going to do well. more varney after this.

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well he was a strong performer before the panic then it took a dip but look at this. in video just came in with strong profits and looking to the future saying it is looking pretty rosy in video is now up 9% that's a 19 dollar gain. 239 a share is on in video star performer. back to the markets overall,

we're heading into the last trading day of a wild, wild week to get us through this we're joined by david deet and jeff sikh or staying with us. first to you, dade a wild week give these poem some advice what are they supposed to do? those were at home. fng it's all about your asset allocation and risk tolerance. asset that means since 1987 we've seen u draw down between 56 and each time great but feds start tightening. if you can't withstand a bare market 20% or more -- then you need to start fulling back. but if you got a decent asset allocation there's tremendous out there and we're buying them today for our clients. >> i don't understand that at all. [laughter] now look tell me straight, for our viewers you're saying they should get out of some stocks? sell now and go into others? >> if you are too far over your squeeze -- in too much risk to get one or 2% more income if you've betting

on continued very low volatility you have to pull back but if you have a careful allocation between cash, stock and fixed income now you're down 10% in stocks because recent movement. get back in there get back on your horse and buy some good stocks with strong fundamentals. >> okay now i understand. so if you have some cash on the sidelines, look for bargain and buy them. >> absolutely. why didn't you say that? [laughter] >> okay. advice for our viewers. >> first thing is a that this market which has been -- which has been characterized by high level of complacency, i agree with david on the asset allocation but the fact is, most people have between 80 and a 90% in stock because they've been completely starved out of the bond market. and too heavily allocated in stock and -- >> is that too much? >> because he's the problem. would they sell now? >> if you're close to retirement an within a few years of retirement you have to look at -- are you going to be able to

endure a big decline because we could be on the verge of one. >> this won't bounce back to where it was. volatility and what i say don't be like a dog chasing parked cars and chase this -- because you are going to be steam rolled by the professional traders. >> here's the numbers you should keep in mind for the last nine decades the s&p 500 on average every six months or 237 months or so corrects down 5%. every two years or so it corrects down 10%. but then on average sweep double digit near 7% so group and down depending on asset choices but steady rise up in the market has been the story. when you get a nasty sharp move down hold on for a couple of years and it goes back up to where it was. is that accurate? thousand last couple of yearses you have to be honest. >> 10% goes down. but in the crash of 87 you were there. i was there. i believe we were recovered from

a 2 t 22% single day drop on that one day. we were back where we were within two years. >> yes. it wasn't, and that's true it's it all about time but keep in mind you have a lot of investors now who haven't acknowledged the fact that markets do thft go down. and those investors it's all about psychological and behavior and those investors need to behave rationally for this thing to work so i would not have too much confidence in their able to behave rational because they haven't up to this point. >> you could argue that perhaps they were overvalued in january but argue after that now, i don't think so. i think there are a lot of really good, i took a hit yesterday. financials are going to do very well once dust seelingses with lack offings are more higher interest rates and more money back on their loans i think there's real value to be had. >> but that spending bill that congress whipped through a time

when president wanted it a infrastructure spending and federal reserve is selling off treasuries off of its balance sheet this is like one big soap box derby with crackups. rates are going up. to get investors to attract into bonds. >> friday morning one minute to the open of trading on a very important day. looks like if from the futures we're going to be up about 100 point but that's not always been a really good strong indicator of precisely where we will open. we have absolutely no idea where the market closes. watch out for the last hour of trading, remember yesterday, i don't know what the swing was but it was close to 1,000 points i believe. a thousand close down 1,032 during morning part of the day we've been stable up maybe -- about out an a limb. i was out o on a limb. it's so kind of you to -- [laughter] and again it was on monday afternoon, i was watching it sink a thousand points in an hour. i think that was internal

program trades going on there. so here question go. 10 seconds to go friday morning we're going to be off and running we're expecting nice gain. let's see what happens in three, two, one -- bang, 9:30 eastern time. that's yesterday close getted rid of that. thank you we're up. look at that. up 166 points. 170 points, 179 i see a sea of green i haven't seen a single losing dow stock yet now we're up 192 points. with just recovered 24,000, 213 points. 200 points holding gain of .8%. read your screens ladies and gentlemen we're green on the left. 27 of the dow 30 are up. 3, i don't belove they've opened yet that will be bsh boeing and united technology. not openedded yet all the others are open and they're up. 202 point higher 232 points. 240 point higher we've reached

24,100. hold on. that's a gain of 1%. show me the s&p 500 i want to see a broader indicator is that also -- yes it is. precisely the same gain as the dow up 1 .04.. 26 point show me the nasdaq oh even better. it is up 1.1%. 80 points high or. okay pause everybody. show me the tenure treasury yield look at that. look at that. 2.86% that's a relatively high level. not the high in the last go arranged but it is high. market is moving higher to that i take that rise. 250 points at the level where we were in late november, december right now with the dow. >> we are precisely right. 25,000, 24,125 what you're looking at now these are the big names dow stocks -- which have corrected to the tune of 10%. this is how that performing this morning. g e, sorry -- it just got off the screen.

there was a series of them ge apple disney and ibm caterpillar up 1% or better back to that screen now. all of them up 1%. these are stocks which are down 10% that's called a correction. they're dow stocks they're all up. move up johnson & johnson intel home depot 3 a.m. all up 1% or many having been down 10%. got it? that's called a rebound we're up maybe, up 314 points as we speak. now those are the stocks which are stayed positive in 2018 and they're moving up some more. baoing is up 6 bucks. jpmorgan chase up nearly $2. cisco is up nearly 2%. wall with mart is become to 100 per share. take a big deep -- look fan we're open on this friday morning with a gain of 330 points in first two and a half minutes worth of business. ashley is here. elizabeth is here. david dietz is with us and so too is jeff what are you buying

deets? [laughter] >> so you know, i want those stocks where there are no momentum investors. there's no people chasing they will just for a little bit more yield. where they haven't been on tippy toes i would go with ge exxon and pfizer more than 3% and no moment in there they both all three lead their industry so the blue chip, cat lax, they've been through this volatility before and been through tough economy they can rebound. >> to repeat you are buying this correction. >> for these selective stocks absolutely. >> same question to jeff i want to know what you're buying. i'm not buying anything. >> i mean, i said on your show monday i said that i would not even look at this market. before the decline another 1500, 2,000 points we're 14 almost 1500 down from monday. i'm still not convinced. i'm very, very concerned about the traders playing off this momentum. i'm going to continue to wait

and let this settle out. >> look what you did we were up 330 points up nearly 360 points we have it somewhere. quickly to the -- [laughter] that's all right. the budget deal, the bottom line is that spending goes straight up. now, david, do you think that's a negative for the market? i mean, with we passed this budget in the middle of a night big increase in spend. i don't like it. but -- does it hurt the market? >> yeah you go from what 20 trillion back to 20.5 trillion i'm not sure that's driving them out. right now investors are looking at interest rates and there's three factors one we have a new federal reserve governor he's going to be tested. you've got inflation that is made an appearance on fridays and finally what are overseas banks going to do a lot of money come in here because of low interest rates in europe and japan and tighten that money goes up. those are wild cards although i

think corporate earnings and strong economy will trump. >> now i want to break into our horse race market coverage for a moment to bring you a development about amazon. this is worth breaking into our general market coverage. because -- amazon is preparing to launch a delivery service. now, that means they're going right up against ups and fed pex you look at two stocks you can see way down. what's the status of this delivery? >> roll out in los angeles in next couple of weeks they've tested in in london to great success. what it is is amazon will come along pick up packages from businesses, third party businesses that do their business on the amazon platform and deliver those packages to consumers. >> who is doing delivering? >> the drivers for amazon amazon already has a network of drivers the there has leased 40 plains with a cargo hub and it has got, i mean, this is -- this is we u knew it was coming to ups and fedex surprise but this is very much direct competition. picking up third party goods and

delivering them consumers. >> amazon effect jeff sikher. look for amazon to buy more shipping and freight companies because this is next step for them opening up other silo of business which makes jeff very intelligent man. >> look at amazon go up some more shy of 1400 mark it is at least 100 bucks away from its all time high but up 26. this remind me of when they bought whole foods the amazon effect on other groceries. was dramatic in the extreme, then they buy into -- talking about getting into health care. and down go the health care people, who wants to compete with amazon -- and warren buffett and jpmorgan chase, et cetera, et cetera back to the overall market we're up -- 246 points that's about 1%. so we're in correction territory that means we're down 10% from the high. we've rebounded 1% as of this friday morning. okay -- [laughter] >> so 9%.

positive. well done. give me a break. more money coming over the zillow -- even -- i have to straighten this out. more money coming and stock is it down 2.7% we have to fix that please. cybersecurity firm fire eye, they give a rosy forecast and they're up a buck naphtha is 11%. expedia profit, hurt by increase spending going to go down that's a loss of 14%. 18 dollars down for expedia. apple's assistance you know home pod goes on sale today. now, lizzy give me had the main point here price performance. >> 350 so the cost of other device, has a lush sound. you can talk to it from further versus other o home devices getting good reviews compared to amazon echo two and you can do all sorts of the same things with this device as you would with the amazon echo. >> this 15, 20 minutes ago and

jeff said apple is late to the game. johnny-come-lately a it will you know with -- all of the voice activated devices out there. they now are hostile to any integration with any other company sing a negative i would not be buying this product. what do you say david? >> i think it is attention from the ayed to x off to a slower start than people had wanted. i just bought one myself and quite frankly i'm disape pointed it doesn't have more features than they just got from the 7 plus. >> you got the ten. disaupon thed? >> not -- i don't think it justifies the extra price. market was up i use interchangeably there up 330 and now we're up 202. you can expect volatility and that's what you are seeing new the bulls at banks of america say that apple is -- a name to own in volatile market conditions. i think question discussed that. [laughter]

jeff thinks there's not a name to own -- of course bank of america say owner but -- >> i'll make the case that it is. and you were talking about the ipod iphone ten they cut production by 50%. i got one i did. you know because they slowed down my batly so much i had to buy one. bottom line voice activation 500 more for this phone. is not qort it. i want to throw it up bottom line is -- not wort it. i'll make the countercase you can tell me all day long that they are behind the rest are of the team okay got it but they have 285 billion in the bank i don't see how a stock can tank when you have that third of a trillion dollars in -- >> buy netflix they'll be the first market value company. >> that would i said to buy fleet flix when no one would want to own netflix 2011. bottom line if they buy netflix i will become an a it will lover i will wear an apple shirt on this show. they need to -- >> this show is not on the air

in 2010 -- 2011. 2012. didn't say in that. oh we were apparently. we learned -- you're dating yourself. a different time of day when you're on back in the day. we used to get up 5:00, 6:00 in the morning those were the the days we're on like 12 noon or something. what's our anniversary what is it? in january. did we miss it? is >> missed it. okay tiff to move on. flrve [laughter] a historic moment you have the trombone. just dropped a little bit down to 239. the dow is up 124 points cut the gain of the opening bell in half. let me show you in video, that's -- fine stock today. was up more than it is now. it is up 9 bucks, 4%, had been higher. do you like it in they make

chips for video gain and block chains. yeah. well evaluation is ridiculous. but you know i'm very concerned when they talk about their businesses being driven by cryptocurrency and looking at peel's bit coins they're down over half since december many -- you know the the economist said they're going to go to zero and this is -- >> vibrant -- i'll give you block chain and and heard of from the check yesterdays. block chain is here and it is real. but the extent to you depending on cryptocurrency business -- >> guy at wells fargo said if the bitcoin bubble burst, with kind of looks to me like it has haict. stock market may go down in other words guy is saying there's a relationship between downside move in bitcoin and the downside move in stock. >> delusional. i think you know, the bottom line is when bitcoin peaks i also thought it was too high and if you're going to invest if in it be prepareed to lose there's

no correlation here. but what i will say is that what bitcoin rlects is a highevel of spelation in the market. u're seegeople specute cryptocurrencies because there' aeeling that nothing could posbly go wrong. so what i do bieve is there' noit hav comply complacency a speculaon to foe somody int sething like bitcoin is very,ery evident righ now. and is something that nee to be paid attention to. there needs to be healthy level of fear and concern in a market. for me to be considered viable. >> keep making that same point. we aingt there yet where you will buy. that's what you keep on say. that's where you are. exactly it so you're saying we're going head south again. tnches yeah and -- i don't mind. cash is asset class i have a problem that you have so many people with so little cash to

buy into this. i think we're depending a lot on this money that is going to come from overseas like you mentioned apple with 280 something billion but depending top on that. where i would say is investors have got to feel okay with with cash. it is okay. it's okay to have cash in your account. >> dead safe that's for sure. you sleep at night. >> depend on your time. i don't think we can call it day by day cash is yielding 3% to three stocks i mentioned yielding more than 3% but five years from now you would be well -- rewarded if you get it and -- >> that is interesting your idea is if you think you're getting too much risk in the stock market, sell some of the stooks to go into high diffed end yield stocks. and then go to cash. so many people starved out of the bond market in high dividend stocks collecting dividends better they can get in bongdz and fed did this market --

a severe disservice by lowering interest rates and closing the bond market down to retirees they need bonds they need interest off of bond. they shouldn't be taking interest off of volatile stocks and couldn't agree with you more but bonds have a fixed payment and well chosen stocks will continue to grow that dividend and we know what we saw inflation and a ugly appearance friday and you want growing income. move on to another market that will be the oil market. the down over the fast six day i think it has gone down every simging day. i remember at the gichght week we're around 65. now we're at the 60. does that matter, jeff? >> i don't think so it makes a lot of difference but there is a lot of supply and when there's a lot of supply we are -- we are going to see these prices. >> it might mean lower gas prices a little ways down. i like that. that's coif a sort of surplus for the majority. $60 per barrel as we speak. all right now let's head where are we going here. i have the dow up, dow up 220

points as we speak i have a tendency to say thingses are settling down, no they're not. we were up 330 now up 230. we have been up 130 just a few minutes ago. we aingt settling down at this moment. >> do not become display sang the lees. >> never. new york city stock exchange it cannot be complaisant. >> you're one of those kind of guys stuart who likes to bring a sense of calm and i admire that about you. right now there's that tealing of calm about 229 point but everybody is really ready. don't forget what happened when we saw on hound we were down over 1100 points on monday up 56 and don't forget what a swing with that was. that was a 1200 point swing bottom to top throughout the day roughly. so we did sell off yesterday over the thousand points.

today we're seeing up arrows everybody is ready for volatility they're watching some key support levels on the downside. i will say because they don't necessarily feel like it's done. however, they still feel ultimately it moves higher but they have to see lows put in first. >> got it nicole thank you very much indeed. all right we finishing up a really crazy week. you saw that graphic just a moment ago there's wild swings for the dow. a thousand point on monday and on thursday. 600 friday, 500 on tuesday. i mean that's a qield week. so -- david dietz what's next week going to look like? [laughter] >> it's going to be volatile but i would be looking for feds speech. >> wait a minute? it is going to get volatile so more of this? >> i think people is a battle between fear and fundamental a lot of strong fund members of the juries out there but people are head hadding off -- >> money here. are we watching the new fed chair and whether he spikes on friday is it? >> talking about inflation next

week. so you know what's striking in this market is now that u.s. tenure yield is higher -- excuse me than ten year government issue in france, italy in japan, and in england so why is our tenure yield hanging in at 2.86 when i'm looking at italy at 2 you know what i mean? >> it is a good contrast for years question talked about how you get didn't anything on a european bonged now more than here. >> it was. cutoff and question is is can investors sustain rising interest rates? that's what investors need to ask themselves can the market sustain that? and my answer so that -- is they're going to have a hard time with this which makes the professional traders very anxious they're drooling over this volatility and i think it is a time to be cautious and definitely not complaisant. >> i'll give you a fair shake. even though you're killing my retirement. [laughter] jeff thank you very much indeed

thank you very much indeed all good stuff. oh, look -- look at this now back up to a gain of 318 points look at that every single down stock sup and i can't remember. is this march the 17th all green. >> stock is down -- >> in the green. every single one of the dow 30 on the upside and we're up 333 points. on the dow industrial average. vice president mike pence iowa rifes in south korea for the winter olympics will he meet with kim jong-un little sister while he's there? i think the market is more gripping than that question. nonetheless we will address vice president pence and little sis -- and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be.

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>> man, you that is manchester united that is a sock ore team that tax law is going to cost o them millions. i'm going to turn this over to my fellow british accent ashley. smgs that's right stew. listen, they say that actual we've seen this and companies reported the glazer family that owns the united they're listed on new york stocks exchange changing of the taxes from 35 to 21% good in the long-term. but it is going to cost them an accounting writeoff of some 28 million bucks which mean it is

that for the quarter will post a loft. however in the long run i stress in the long run that tank advantage will help. but you know menu one of the most -- storied teams in the world -- merchandising you name it they'll be be fine and not hurting us put it that way. >> not a long-term that's for sure . a strategist at wells fargo claims direct correlation between bitcoin selloff and stock market sell you have and president of the world bank slams bitcoin nothing but a ponzi scheme fox and friend weekend co-host who own couple of bitcoin -- is here -- i told you it would go down. i told you it was a bottle that would burst. >> it has but i think it bled off people with no idea what they're investing in the first place. >> did you? >> i don't think initial will you but i understood nature of it and got rid of the third party and the banking portion of it. now the question is will the technology catch up to the demand and could it actually

become a currency i totally get that. question is is pete when are you going to sell? >> i'm not selling you have to stick it in for the hall but question is will it be bitcoin but people jump into that market with no idea they were doing and long since gone and sold they're out. now as that -- report predicts next three to six months you see growth in more responsibility growth in the stock market and in bitcoin. >> all right. no problem. i have a bridge in brooklyn. [laughter] congress -- late night budget deal -- and here's what president trump tweeted about this this morning let me read it out for viewers without more republicans in congress we will force to increase spending oin things we do not like or or want in order to finally after many years of depletion take care of our military. sadly, we needed some democrat votes for passage must elect more republicans in 2018. all right, pete, up goes spend on the military but also up goes the deficit and the gop

remmation as fiscally responsible is out the door. >> it is out the door completely in washington, d.c. it at all and rand pall was right republicans look fiscally responsible and republicans in control there's no fiscal responsibility at all. what's the difference? the president wanted funding for our million which he got which a lot of people -- especially reallies -- >> needed about. but our deficit and debt bomb is going to come due eventually. and when it does, the deals like this will be part to why until we reform entitlements medicare, and social security not having any serious conversation about our balance sheet and spending plan. >> we talk about talk about the debt bomb always in the future. >> 1.2 trillion deficit coming in 2019 under a republican president with a republican controlled congress. >> 3% growth rate in the economy. go figure, i can't. quickly your response on this. we've got -- we've got that story on -- okay can you put that pup for me? yeah. we've got --

the nypd new york police department, they ignore had 1500 requests from immigration officials to detain illegals your comment. >> ignored it was bill de blasio this was a may or your driven sanctuary city policy you don't think the north dakota doesn't want to notify i.c.e. if they've got an illegal who has been commit crimes? of course they do. you know these men and with overwhelm walk the beat? you don't have to be immigration officer to do that. we're august about a 48 hour hold so that i.c.e. can make a determination whether they want to deport or not they're flawngting rule of law this is what sanctuary cities look like and makes cities or more dangerous to people who live in it -- >> 1500 times in new york city last year. 1500 times in one year. scary pete thanks for joining us spending going straight up. and so will the deficit -- i think america has got a problem. it's the way congress spends our tax money. fund members of the jury problem. my take on that is next.

. .

>> america has a problem, it's called congress or the way congress spends our tax money and the way they authorize the borrowing of money. politicians know spending cuts will not get you reelected. nothing makes the point more clearly than the budget passed in the early hours of this morning. our government will spend an extra $300 billion in the next two years. we are overspending. this will mean a trillion dollars worth of overspending very soon. our economy is growing at the best plac pace in years and we have to borrow a trillion dollars.

why are we doing this? if you are a politician and you vote to cut spending, your opponents will demagogic you too death. you will be a accused of starving children and killing seniors and you'll probably lose the election. so you say okay, we will spend a little more and will borrow what we don't have. you will get reelected, but you've kicked the can on the road and added to our already astronomical national debt. how many times have we been told that the debt bomb will explode, but it hasn't, at least not yet. that too is a problem because irresponsible spending has no impact right now. you don't pay the price immediately. what is particularly on settling is doubling the national debt and now they run the house, the senate and they increase spending all over again. there's a fundamental problem in the way we organize our nation's finances. it ought to change but it won't. until that debt bomb explodes. that it's too late.

the second hour of "varney and company" is about to begin. literally four minutes ago we were up 330. now we are up to 70. this is still a volatile market all over the place. big tech names, here we go. they're all higher, significantly so. bank of america says apple is a very good name to own in these about the markets and apple is up three dollars. amazon, this is an important story. they are unveiling their own delivery service for that is really hurting fedex and ups. this is the amazon effects just like the amazon affect when they bought whole foods and got into the healthcare business. down goes fedex and ups. strong profits, up $16 and they make chips for video

games and block chain two. bring in jason rodman, president of lido isle of geysers. have we hit bottom? was that the bottom? >> yes, that's what i've been saying for the past seven days and on various channels i really do believe the major selling is over. the volatility is not over and typically higher volatility does equal a more bearish disposition but i would not see any major reason for another blower. this was just a very, very ovbought condition.

you had fed the that was bearish and that was about it. this is a short-term pullback. >> are you buying? you manage money for all kinds of people. are you telling them to buy now. >> some of my, i'm focused more on the alternatives so the long short hedge fund so in my general opinion, i've always liked microsoft, i still love microsoft, that's when my two pics of it out. microsoft is kind of like the david of the david and goliath story. microsoft is encroaching on them so they're kind of an underdog and on a 10% correction of microsoft that pays a dividend, it's a no-brainer. >> right now it is up a dollar 60, $86. share. there are 17 dow stocks. 17 have slipped into correction territory that means they are down 10%.

i want you to toss which ones you would buy. go. >> i'm not quite positive if j.p. morgan is on there. i know microsoft was down over 10%. look at j.p. morgan. they are not going away. higher rates as long as they don't go to the moon will benefit all their businesses, lower corporate tax rates will benefit. i growing economy will benefit them so i think it's a solid pack. especially when it's down from all-time high and microsoft as well. >> talk about volatility, when we went to the top of the hour we were up over 300 points. now we are up 200 points. this is a volatile market. we are still on the upside but it's all over the place. a wells fargo analyst says if the big point bubble burst, some would say it has already,

the stock market might go down with it. do think there's that kind of influence on big coin in the stock market. i think the world is really starting to understand that fundamentals of the coins and the fundamentals of the stock market are not even on the same continuum. right now the market cap of crypto currency is less than half a trillion dollars. that's a fraction of the stock market. they are not competing with each other they are just different balls of wax so the answer is no. whatever has existed is very, very temporary. >> thanks so much for being with us. i get back to my editorial at the top of the hour. president trump tweeting about the spending plan. here is the tweet we have this morning. without more republicans in congress we will increase spending on things we do not like or want in order to take care of the military. sadly, it must elect more

republican in the 2018 election. i am saying the gop is no longer the party of fiscal responsibility and you say. >> i agree. >> what they were seeing is that it behaves differently and they're able to use the theater and demonstrate principles, but when they are in power, a very different dynamic happens which confirms what people have felt which there is no real partisan difference in washington. it's the bureaucracy and the managers of the monster and it's in their nature to want to grow and be bigger. the problem is they see themselves, the government as the feature and i have to call in, yes spending is a problem but it's also about the waste.

the first small audit of the pentagon, they found $800 million is unaccounted for and they say it's a weakness and will fix that. in 2015 they can account for $6.4 trillion. grassley said after this pentagon audit said how can we do an audit when they are no paper trails. this is from a brief audit for 2015. this is the point. the talk about entitlements, why don't we start dealing with what seems to be money laundering or at least chaos economically in the government itself before we start cutting up with the making people

expect. when we are looking at hundreds of billions of dollars that they can't even find, they have no paper trail and they don't know where it is. nothing changes. >> it's about the money, it's being treated like water when it's other people's money. >> bella, we have intense volatility on this market. let me just digress. now we are up just 160 points. in other words, we were up 330. ten minutes ago now were up 170. that is volatility. we haven't slipped into the minus column yet today but at this point we are trimming the game. this 10% down, do not affect president trump's growth agenda going forward. >> occurred, and this is where the politicians will use this. he wants 26 billion for the wall. you are going to hear the same people that approved this massive budget buster to say we don't have that kind of money. we just had to do. then the market will be somewhat volatile, elements will go down in the silicate,

there's some big risk and we just had to spend hundreds of billions of dollars. there's no money for the wall. that's weird to hear from the same people who set this up. the president has to be ready for that i must push back and deal with the waste in the fraud in the management that he talked about in the campaign. >> good luck with that. >> thank you. >> now this. goldman sachs says they are still buying opportunities despite the wild swings that we've seen. >> nursing when the market is rolling over and so is your stomach, here the sectors you want to look at when the market is in meltdown modes. they're talking about companies that survive inflation, that have low labor cost and basically have fortress strong balance sheets. the second is the low labor cost of the silicon valley company, tesla, amazon, the guys who have basically

automated the labor force in the company and their talking apple, even generally comes up, valero energy. >> they did mention those names. >> so they say it's balanced with this, by the stocks. >> it's a scary market with inflation filling up. >> all right, thank you liz. check this out. new imo g's coming to your phone later this year. 157 new ones including a bagel, lobster and a pirate flag. we bring you everything on "varney and company", including that his was coming up. kim jong-un's little sister a arriving in south korea, shaking hands with south korean president purchased the first in her family to visit the south in decades. is this a sign of diplomacy or just for show. trump is talking about much waste in the spending bill, i

agree. we are on it. you are watching the second hour of "varney and company". so i got an offer on the business, and now i'm thinking... i'd like to retire early. oh, that's great sarah. let's talk about this when we meet next week. how did edward jones come to manage a trillion dollars in assets under care? jay. sarah. so i have a few thoughts on that early retirement... by focusing our mind on whatever's on yours.

you're looking at volatility because at the top of the hour we are up over 300 points and we cut that lead and not gain in half and were up just a hundred 40 right at 24000. the price of crude oil down for six days, down again today. sixty dollars. barrel. the price of gold, $1315. ounce as we speak. freezing temperature at the winter olympics are to blame but what you expect. some have needed to throw away their expensive equipment. >> it's cold at the winter

olympics. >> it's so cold. temperatures in the single digits, wind chills down to 30 below. here's to the bottom of this key that it twists them and warps them. snow crystals become very sharp at that temperature. they are literally having to throw the skis away and they are not cheap. she shook hands with south korea's president, that the historic show of diplomacy. both north and south will tell me the joint hockey team. are you buying this? everyone happy and getting together, do you buy it? >> i think this is part of

their cycle of aggression where they want to attract some goodness from south korea, always easy to get where north korea goes through a cycle of acting out and then will extend a big move, if you will. the south korean government was very much involved with the last round of appeasement so i think they're looking to drive a wedge between south korea and the u.s. and get to the negotiating table. >> this could head south rapidly. for example if a north korean athlete defected a large group of them, that would not go down very well with kim jong-un or if vice president pence made a statement about even more sanctions, that too would interrupt the lovefest. that kind of thing could happen. >> vice president pence is doing the right thing. he met with the father of auto worn beer who was murdered by the regime. he's playing a major role in asserting himself quietly in

the administration that's why you saw human rights mention north korea human rights in the state of the union and there were defectors there and he is opening up a third way between negotiation and appeasement and stagnation or military strike to put political pressure on the regime. >> you think there will be a crunch, and by that i mean, the north koreans launch another missile that flies over japan, something like that would be really provocative. do you expect that. >> i would. it's very hard to time. they usually enter cycle of docility when talks are going on but will act out when they want a better deal. i don't think it will be peace, love and happiness from here on out. >> we are told older people in south korea want to reunify with their brothers and sisters and fellow koreans in the north, but younger south koreans don't want anything to do with it. is that accurate. >> i think so.

there are many koreans who have studied the unification of germany and that was very expensive for west germany and north korea is in a much worse position than east germany ever was. >> it's a mess. it's not going to go away and it could turn even messier still. last word to you. >> yes. the other big factor his china and whenever we are focused on north korea it tends to take our eye off the ball which is a threat to the united states. >> things for being with us today. >> a democrat senator reportedly texted with the russians to get in touch with the person who wrote the dossier. how about that. we are on it. back in a second. building a website in under an hour is easy with gocentral...

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to mark warner is the top democrat on the intelligence committee. he texted with a lobbyist. he was trying to contact the dossier author. >> so he got caught having a conversation with a lobbyist, a russian oligarch, one did not want to paper trail on a private meeting in london, all tied into crooked hillary. tammy bruce, he is the top democrat on the senate intelligence committee. those tax exists. it looks like they are trying to contact the dossier people and keep it quiet. >> very specific text messages using this lobbyist, wanting to talk to him and meet with him, the lobbyist said he

wants a bipartisan letter and he wants to go in testify and warner was a no, let's keep this between us, let me come meet him in london, it was a lot of weird stuff in that regard. then eventually, the cochairman at the committee and everyone else found out about it because the lobbyist had to give them the text messages and they also began to just say what we knew about it and it's no big deal. that's strange, but in the same period of time, warner was also trying to get julian a sanchez away from the russians, getting him back in the country. wikileaks got the john podesta e-mail, john podesta said that was also a russian effort to try to help trump. i think what the democrats wanted was months of hearings with christopher steele, and

julian about russian meddling in the election. none of this occurred. steele did not get what he wanted which was a bipartisan effort but unfortunately no one in the committee or certainly with the republican party at the time were calling him on the fact that he was trying to independently collude with the russian lobbyists, this oligarch in an attempt to privately meet with christopher steele. >> i'm shaking my head because of the twists and turns of the stuff. he is the top democrat on the senate intelligence committee which has access to all kinds of stuff that you and i never see. >> indeed, and we want, they are supposed to be doing oversight. here is someone on the committee doing these things separately and sang specifically he didn't want bert to know or anyone else but how can you be on the oversight committee looking into finding out the truth of the matter when you are doing something on the side that you refuse to let anyone else know

and you don't want them to know about. it's pretty extraordinary. >> i have to tell you, we debated whether we should run the story in the middle of the day where the market dominates the news. i think we made a good call. it's worth covering the story. >> wild swings and market all week long. question, is it may be behind us now? you see the swings on your screen, is that behind us. we will ask that question throughout the show. congress is going to spend billions and billions, adding to our debt. since when do republicans agree to that kind of thing? we are on it. akin moment. (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,

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♪ ♪ i predicted it. how did you do that. >> i don't know. 1967. i was living in east africa and we played this all the time. all right. quick check of the big board. the gain was more than 300, it's been cut in half, but were still going to gain 150. look at the big tech stocks. they are mostly higher. amazon has switched to the minus column and is down four dollars despite their announcement that the getting into the delivery business. facebook, microsoft, alphabet and apple are all up. the president signed the spending bill and includes an actress $320 billion over the next two years. mark is the former press secretary for vice president mike pence. what are the republicans doing

with all this extra spending. you gotta tell me? >> well, the governing. the fact is that the way it works on capitol hill right now, we have to have democrats in both the house and the senate to be able to pass spending bills and budgets. they insisted that any increase in defense spending which is greatly needed and the president is very much committed to doing also had to include mastic spending increases. that's the only way we are going to keep the government open and in a divided government that's the only way to go. the answer, looking forward, we've got to get more republicans on capitol hill to help control spending. >> we have this volatile stock market with big losses, down 10% for a lot of people and at the same time looking forward in congress, the president might be in trouble with the votes he needs for the democrats. you think all this combines to create real problems for the real genuine trump growth agenda going forward? >> i don't think so. in fact, stewart you're more

next. than i am, but a lot of the stock market could be attributed to the fact that were growing so fast which is worrying the market but that's good for people at home. i think we will get through this pending crisis. the key is we are investing in our military. we are providing money to help fight opioid addiction, were doing the thing the american people want if they want to help join the president in controlling spending will have to get more allies on capitol hill. >> i think the republicans seem to be thanking everything on a rip roaring economy come november. you get that and you probably think you're going to keep the house and make a gain or two in the senate but that's your only real hope, a grown a economy to be back the democrats. >> president clinton, he coined it it's the economy stupid so i think it always is and always has been proud let's not forget that the other real changes we are seeing under the leadership of the president, we are taking the world with us as were confronting north korea, the

vice president is there right now to make sure the world remembers the atrocities of that regime during the opening of the olympic games. we are defeating isis which the president promised he would do, those are the things the american people can see. they are tangible. add the economy to it and it looks good for republicans in 2018. >> but what about immigration. they started the debate. mitch mcconnell said will start that debate across the board, the wall the chain, the lottery, the daca people, the debate starts on monday. what does president trump have to get border security and the reform of the entire system if he's going to give in on daca. >> it has to be like that. you think he can get that deal. >> i do think he can get that deal. the democrats want to get this done. republicans want to get this done as a relates to the dreamers and the president said he wanted to deal with them compassionately but he is very serious and sore republicans about securing our

border, stop the flow of illegal immigration, stop the flow of drugs and gangs into our neighborhood which terrorize our families are the only way we do that is to get serious about border security and to reform a broken immigration system. i think there's an opportunity there if democrats want to join with us to make real progress for the american people. >> border security has to come first. >> it has to. >> absolutely. the president is committed to it. >> thanks for joining us. we appreciate it. >> it is a big day on the markets, that's for sure. we are still up but not as much as we were. we were up over 300 half hour ago now we are up about 170 points. come in christopher whalen, whalen global advisors chair. nice bounce, will take it, is at the end of the correction? are we bouncing up from here. >> stewart, unfortunately it's not. the global central banks in the feds did too much. they've distorted the credit markets in the stock market and housing so all of these

markets have to readjust now. they have to try and figure out what normal is. you're already seeing this in high-end real estate. >> i didn't mean to interrupt you. the central banks are unwinding the free money of the last decade. all of them. >> exactly there's two pieces. the fed kept rates too low for too long, they bought lots of securities and a lot of the debt market was used to buy back stock. central banks of the world own one third of the stocks in the world. >> yes. >> i didn't think we know that

the european central bank has been buying stocks, japanese have been buying stocks. we have enormous intervention by the government in the stocks and bonds market and they were trying to unwind that. weise suppressed volatility for 70 years. now big surprise when they stop doing what they been doing the volatility is coming back. i'm waiting for the last hour of trading today because that's when you can often trigger a lot of this heavy-duty selling. we saw that last monday, we saw yesterday, are we going to see it again today? will the last hour of business go down. >> it's possible because these products, as they unwind, all of these exchange traded funds, when the manager has to

sell stocks to meet redemptions, he actually forces the market down. the vicks is falling the same thing happens. tends to push the market down faster as the vicks goes up. these are all very strange derivative products that tend to have outside of facts, particularly compared to investor expectations. things have been so call unpredictable for the past five years, now all the sudden we don't have that anymore. >> got it. one last one for you. i know you follow the bank stocks in particular. i know that powell is going to make a speech at the end of next week that will outline his ideas here, is there a bank stock that you like that you would buy in this environment. >> i tend not to like the large banks because the risk adjusted returns are small and the volatility is large. the best returns in the whole industry are the smaller banks.

i like pnc, i like the group basically if you start with u.s. bancorp and look at the next 20 down in terms of size, i think those are better value for investors and will be less volatile. big point for investors. >> christopher, you are the only person successfully explained to me how the unwinding of an etf forces a lot of selling. that is not an easy thing. >> that's very good and you will be back. thank you so much. >> thank you. >> a news alert, a smart tv owners, consumer reports warning your set can be controlled by hackers exploiting easy to find security flaws. how do you can bet the. >> most all tvs are smart tvs. "consumer reports" found that samsung televisions and those brands that use roku tv as the smart tv platform are vulnerable to hackers. they can't spy on you or steal

information but they can, to some extent, take control through the internet of your television set. what can they do, they can change channels and start playing offensive content, they could crank up the volume which would be a little alarming and this could be done from thousands of miles away by some teenager in the basement. look, when you have a smart tv there will certainly be questions raised about privacy, you can put away, prevent some of your privacy be taken by taking certain measures by pushing this control this way or that way. it's not easy to do and they say when you do that to take away some of the uses. >> are you just trying to hook up your smart tv. >> i can't even turn on the television. just one button but i can't change channels. >> with the big board. look that up. this is a change, 40 minutes

ago we were up 330 points. now we are up 87 and coming down a bit. that's where we are right now. rand paul delayed the senate vote on the spending bill and that angered senators on both sides so some called it grossly irresponsible. russia paid $3 million to lobby for the iranian deal. that's next. ♪ ♪ ♪ for all the noses that stuff up around pets. there's flonase sensimist. it relieves all your worst symptoms including nasal congestion, which most pills don't. and all from a gentle mist you can barely feel. flonase sensimist.

they are being lured into some of this volatility only so a professional trader can wash them out and steamroll them. >> what i said on your show, not only do you have that but you have a lot of investors who have been starved of the bond market and they are renting stocks to get dividends. now all the sudden they are

waking up to the fact that the opposite of complacency has always been panicked. when we see the volatility, panic results ♪ ♪ ♪ ♪

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this is important. 45 minutes ago we were up 300 points. now we are up just five. very close to tipping into negative territory. we just did. now we are down one and a half points. that's not a big drop but it's certainly a big drop from where we were 45 minutes ago. right now almost dead flat, 23800. that is the level. keep your eye on the bottom right hand corner of the screen for the progress of the doubt. now, a deep state controversy. fbi informant douglas campbell made written allegations to congress that russia paid $3 million to influence hillary clinton on the iranian one deal. would you please give us the big picture because so many people are confused by all of the names, the occasions, who met who and with what. take me through the whole process as alleged by your client. >> yes. we have to start in 2005.

>> wow. >> that is when bill clinton went to kazakhstan with his millionaire buddy frank and they lavished all kind of praise on this undeserving dictator and guess what, when they left, they had rights to the iranian mining in kazakhstan. imagine that. it was at that time that my client learned later because he got into it a couple years later that vladimir putin started putting together the strategic plan to control the world's uranium and specifically the united states. this is how they'll the mayor pruden was controlling various places that were part of the russian empire way back. energy. if georgia misbehaves take away the energy. he wanted to control the uranium in the united states. hillary clinton was senator at

the time but imagine their thrill, the russians were just beside themselves when hillary became secretary of state. so, they started recording the clintons at that time. you talk about the $3 million, did you want me too talk about that. >> yes please. >> the big marketing man in the nuclear russian industry and he told my client mr. campbell that the russians were going to pay apco, the big lobbying firm in washington and it's full of democrats like clinton people, they were going to pay them $3 million and they would do some work, but not $3 million worth, but a lot of in-kind work for the clinton foundation in return. that was the russians greasing the palms of the clintons. so that's the $3 million. but the russians were telling

my client this is a shoe in. we've got the clintons. there on board. they even had my client open an office in early 2010 and remember this didn't take place till october. >> that group voted unanimously for the uranium deal and hillary clinton is using that in her defense, this whole group said yes unanimously. >> aha so if it has to be unanimous, one vote can change it. so hillary clinton is without a doubt, we can stop this so you better be good to us. why else would bill clinton received $540,000 for a 40 minute speech four months before this approval. >> have you got a clean-cut case of pay to play? >> you never have a clean-cut case because you cannot find

somebody to say i'm in a give you this and you can give me that. you don't. when you take a case like this to a jury, the jurors decide whether getting half million dollars for 45 minute speech four months before this approval amounts to a paper plate. you know who paid the $500,000. >> renaissance capital. they are, i didn't even know they had this capitalistic investment firm and guess what stock they were pushing. >> uranium one. >> picture you, thank you very much for joining us. i have to break away because we have a market development which is on our screen right now. we will bring you up-to-date. at 10:00 a.m. we were on the air and the dow industrial were up 330 points. as of now we are down 170 points. that means we had a 500-point swing in a space of 45

minutes. that's a pretty big swing. it's somewhat similar. my producer is talking my ear, at the time, 29 of the 30 dow stocks were in the green. now we have the majority of the dow 30 in the red and we are falling. that is volatility. >> it's a 2.833-year-old. the yield is actually coming down as the market comes down. >> you nailed this yesterday. as money comes out of stocks, it goes into the ten year treasury and that pushes the yield down. the prices go up, and the yield goes down. >> that is still higher than italy. u.s. italy is higher than france, italy, canada, the uk. >> 2.83% right before previous big time drops on the market, we were much higher. we were 6% or even 12% if you

go back far enough. now we are just shy of 3% and the market sells off. i think that's one of the reasons that have gotta believe this internal workings of the market, that's the problem too. as we speak, we are now down 130 points. you gotta keep your eye on it. if you want to follow the market moment to moment, watch this program or watch the bottom right-hand corner of your screen. look at this. now we are down 100 points. now are down 97 points. moments ago, it's hard to keep track of it. >> all the market indices were in the green and now they're all in the red. >> by the way we have news on apple because they are now selling the home pod as of today. lots of criticism, they're saying a lot of people are saying there late to the game and that it's more expensive than the amazon and google home voice machines. is anyone buying those things?

that's what you see on your screen. i don't have one, i'm not going to buy one either but will discuss all of it in a moment hi, i'm the internet! you know what's difficult? armless bowling. ahhhhhhhh! you know what's easy? building your website with godaddy. get your domain today and get a free trial of gocentral. build a better website in under an hour. here's something you should know. there's a serious virus out there that 1 in 30 boomers has, yet most don't even know it. a virus that's been almost forgotten. it's hepatitis c. hep c can hide in the body for years without symptoms. left untreated it can lead to liver damage, even liver cancer. the only way to know if you have hep c is to ask your healthcare provider for the simple blood test.

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. stuart: you can now buy the homepod from apple. deirdre bolton is at a store where you can buy them if you

want them. so deirdre, is there a line out the door? reporter: absolutely not, stuart. it is nothing like what we saw back in november when that iphone x was released. you remember that? there were lines around the block. there were tourists from all different countries. i heard all the different languages. people camping out overnight and using new york holiday visiting time to wait in line to buy one of the new iphones. today very, very quiet. a whole different structure. i want to point out what you already know, that is to say iphones are about two-thirds of apple's revenue. i reached out to apple to ask what expectations were for the apple homepod sales. i still haven't heard back. this product is three years late to the party. amazon, echo, google home, they've been out. google is out and apples is at least a double the price of its

competitors, and it does less, if you want to focus on the functionality. but where the apple lovers weigh in is the sound structure is amazing. stuart: hard break, hard break, hard break, more "varney" after this. ♪go your own way copd tries to say, "go this way." i say, "i'll go my own way" with anoro. ♪go your own way once-daily anoro contains two medicines called bronchodilators, that work together to significantly improve lung function all day and all night. anoro is not for asthma . it contains a type of medicine that increases risk of death in people with asthma. the risk is unknown in copd. anoro won't replace rescue inhalers for sudden symptoms and should not be used more than once a day. tell your doctor if you have a heart condition, high blood pressure, glaucoma, prostate, bladder, or urinary problems. these may worsen with anoro. call your doctor if you have worsened breathing, chest pain,

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. stuart: it has been a dreadful week for your money. thank heaven it's friday! no guarantyees it's over, no guarantees it will be different next week and no guarantee there will be a bounceback any time soon. however, let me offer a couple of bright spots. some of the selling was as a result of internal factor. it's complicated. exotic financial products that have not been tested before in a serious downturn. they've not done well. robot trades fed on themselves. the computers intensified the selling. this is not good. but at some point, the

computers adjust or rather humans adjust the computers and things settle down. whoa, wouldn't that be good? second, the economy is doing very well, the market is not predicting a recession or even a slowdown. we have every reason to believe that profits are going to be extremely strong for the rest of the year, and good profits are the bedrock of a strong stock market. at some point, stocks return to a value that reflects those higher profits still to come. one more plus, all the signs suggest infrastructure plan soon, that's good. because the country needs to rebuild, and when we do, the profitability in several industries will go up some more, that too is good for stocks in the long term. i the not trying to talk the market up. there are plenty of negatives to keep it down. i'm simply saying don't panic. the third hour of "varney & co." is about to begin.

. stuart: you got to follow this minute to minute, moment to moment. look at it now, up 43. a couple of minutes ago, we were under water. now back up 41 points. an hour ago up 330. how about that? bring in jack alban, chief investment officer for crescent wealth advisers. jack, is it over? is the sharp selling -- you're laughing. i know i'm on dangerous ground asking this question, but is it over? >> no, i don't think it's over, stuart. i think that -- i agree with a lot of the points you made earlier that fundamentally things are sound. you know in many respects it's sort of like buying oceanfront property. just paying the wrong price, thaunt oceanfront property is great. you know the house will be

there. you know it's a great place to be, but if you pay too much, you're going to have to adjust. i do think they're the underpinnings of everything you described is exactly right. one of the things i look at is the credit markets. the willingness of lenders to extend credit has not missed a beat. there is no backlash, there's no retrenchment. i don't think lenders believe that the borrowers ability to pay back loans has changed one iota. i may change my opinion, but this is a technical correction. stuart: okay, interesting, advice for our viewers. now our viewers are not the bigtime traders of this world. they're ordinary, regular, everyday people who probably got bucks in the stock market. what's your advice for them? >> yeah, i think your viewers are like me, big fans of yours, stuart, and what i would say is

-- stuart: flattery will get you a long way, but not that far! [laughter]. >> first of all, i would say just statistically speaking, you know, if you want to put a dollar into a stock portfolio and be relatively certain that dollar is going to be there, you're going to have to wait close to ten years. statistically speaking, you have a 96% chance of having that dollar in that portfolio ten years later, when you are willing to wait that long. so for me, my advice to your viewers are first of all, if you're playing in stock us and don't have a 10-year time horizon. you are taking -- you are taking a risk that you may end up having to sell at a loss. stuart: wow. okay. >> that said, that said, i do think the market's still a little expensive, relative to where bonds are. but here's the issue -- stuart: hold on a second, i'm sorry, i've got to interrupt you because we've got this

volatility. look at this. the dow is up 122 points. up 300. down 200, up 100. stuart: that's right, that's right. up 300, down 200, up 100. that's a difficult thing to play. don't panic in here. jack, one more quick thing with you. an analyst at wells fargo says if the bubble burst, i think it burst already, it could have broader consequences for the stock market. is there a linkage? bitcoin stocks? >> the only linkage that i see is really sentiment. i do think that bitcoin's movement tends to mirror investor bullishness. going into this downturn, investor bullishness was in the highest dessile that i've seen in a long time. and bullish investors have high expectations and high expectations are subject to

disappointment. that's the only linkage, it's just investor attitude, i wouldn't link a bubble bursting in bitcoin would be a bubble bursting in the stock market. absolutely not. >> jack ablin, we appreciate it. thanks, jack. >> thank you, stuart. >> i want to get back to politics. democrat senator mark warner, the senior democrat on the senate intelligence committee tried to get in touch of the author of the russian-trump dossier by texting a lobbyist for a russian oligarch. the president tweeted this about this development. listen to this -- joining us now harlan hill with the trump for president advisory board. why don't you just -- this is so complicated.

outline what you think happened here. >> senator mark warner went out of his way to have a secure conversation with the lobbyist for a russian oligarch to discuss the steele dossier to arrange for a private meeting with mr. steele in london, and mark warner, senator mark warner and his staff took the utmost precautions to ensure there were no paper trail and any conversation that was had between senator mark warner and this russian associate would be destroyed and there would be no record of it. it could be foiaed or investigated. this is quite curious. democrats have accused the trump campaign and the trump administration of collusion for far less than what senator mark warner has done for far less than what some people at fbi and hillary clinton campaign did to use this steele dossier to undermine the incoming president of the united states. the real collusion here was

between democrats looking to harm president donald trump and the russians. that's where the real collusion that can be proven is. we have evidence now. stuart: what is the evidence? is it texts? . we have texts, a screenshot it. appears that must have been taken by the gentleman on the other end of the phone from senator mark warner, the russian. so they were capturing screenshots as this conversation unfolded, and you can read them online. stuart: let me get this straight, hillary clinton campaign paid for the russian dossier. >> yes. stuart: and the democrats under mark warner, we know that in particular, he went out of his way to get that dossier made public through the author of the dossier to present it in america as a way of undermining mr. trump. that's in a nutshell. >> they had the good sense to not do this on paper. to not do this through official

channels, through official e-mail. to do it through official government phone. he did it in private with the signal app which uses encrypted messaging that is automatically destroyed after it's read. stuart: thank you, harlan. >> why would you destroy the message if you are not looking to hide anything. stuart: that's the question. thank you very much indeed. you got to keep it on track with the extraordinary developments. >> complicated. stuart: very complicated and you did a great job for us. thank you very much, appreciate it. a message from the president of the world bank. jim yong kim, he says cryptocurrencies like bitcoin are basically ponzi schemes but also said the world is looking to use it block chain technology. he says block chain could be used in developing countries to follow the money more effectively and reduce corruption. bitcoin no, block chain, yes. amazon is actually down on

news at this moment, down $19. $1331. look at fedex and ups, caught in the amazon effect. they are both down significantly. ups down 2%, and so too is fedex, down 2%. now fedex is responding to the story which first appeared in the "wall street journal" this morning, here's the quote -- and they sent this video, that's on the screen now, that shows what it takes to ship packages around the world. okay? they got a response out, there but they're feeling the amazon effect. >> shipping wars. stuart: jam-packed hour ahead. we'll have martin moussa, candidate for secretary of state in california. i want his take on the mass exodus out of san francisco and elsewhere. the highest level in more than a decade out of san francisco. senator rand paul spoke for hours on the senate floor last

night holding up the budget vote. one of the reasons why the government shut down briefly this morning. rand's dad ron is with us.

. stuart: uber and waymo have reached agreement in ongoing case about trade secrets. uber agreed not to use waymo owned by alphabet google in the self-driving cars. uber's chief doesn't believe proprietary information was taken from waymo. the fight goes on. cell phone could get more expensive this year. sprint and t-mobile said they will significantly cut back on discounts after failed merger attempt. sprint doesn't need to offer more discounts because service

has improved. sprint down, t-mobile up, not by much. the spending bill passed by congress signed by the president. it will add an estimated $320 billion to government spending over the next two years and significantly increase the deficit. look who's here, former texas congressman ron paul. welcome to the program. great to see you again. >> good, stuart, nice to be with you. stuart: i've been hearing about the debt bomb for 20 maybe 30 years. so far it has not gone off. when do you think we will be hit by the debt bomb? you got to tell us when. i know how it works, but you got to tell me when. >> well, i think it's constant. i think it's ongoing, and that's every time you see a recession or the markets go up or the markets go down or interest rates are out of whack or the fed has a balance sheet they don't know what to do with, they don't have any concept what they need to do about the balance sheet there. i would say it's constant. you're looking for the big one

and, of course, they're unpredictable, and i'm not sure it's in the next month or two, but if the stocks don't go up to that near high of a couple weeks ago, i think people are going to throw in the towel and you'll see pointwise it's heard a big deal. but i think percentage wise it will be a big deal, but i think it's out of control by the fed. i think the interest rates, i think that ten year bond is giving us a message and it's not the fed. the fed hasn't raised the rates enough. the markets saying there is something wrong with the system. stuart: what's wrong with the gop? this is a republican house, senate and white house, and they still passed a budget that increases government spending by $320 billion. i got say, the gop has abandoned financial responsibility. what say you? >> well, you have to blame it on richard nixon, and there's a famous statement by nixon when he closed the gold window and the things in the 70s and got

rid of any link to gold and said we're all keynesians now, we're economic keynesianism and they don't believe anything is wrong. that's what the universities don't team. you heard the liberals say this all the time. conservatives won't say it but they do it because they are controlled by a sentiment that is taught to almost everybody in the congress. don't. you talk about the deficit but don't worry about it, it will take care of itself. i don't believe it. there's a lot of people in the libertarian conservative side that don't believe it. you can get away with it when you're a rich country and have a strong currency. when the country gets weaker and the currency is weaker, it will end. stuart: your son, senator rand paul, he held up the passage of the budget, forced a shutdown albeit briefly. why does he always seem to be saying no? >> i've never heard him say no.

they used to tell me what we say and what rand was saying is he's saying yes to sanity. saying yes to a good budget, you know. say yes to your promises. stuart: the trouble is you cannot get this congress or any other congress that i've ever seen to say yes, let's cut spending dramatically, and i don't think we'll ever see it. >> no, no you're not. i've never predicted that's going to happen. i think we should get as many people there to speak out like rand did last night, try to convince the people that it's in their best interest not to ask the government to take care of them and we're the policemen of the world. when that comes, the empire shrinks and the welfare shrinks but will not happen by the republicans and democrats getting together. what was the secret deal? they get together and raise things, when they talk behind the scenes, they endorse conventional policy of spending, militarism, the whole

works is a bipartisan deal, and so it is going to get worse, and you won't -- don't expect the congress ever to come to their senses, only after they have no other choice. stuart: you got it. when their back's against the wall. maybe. ron paul, always a pleasure, thank you, sir? >> thank you, stuart. stuart: we have a reverse on the market. it was up 100, down 63. the homepod goes sale from apple. 349 bucks, three times the cost of amazon echo. apple says the homepod is worth it because it has better speakers and a richer sound. okay. more money over zillow but gave a weak and soft guidance, don't do that. the stock is down 1.5%. there's a cybersecurity firm called fireeye, very well known. they gave a rosy forecast and they're up 6%. nice gain. a sports headline for you. the san francisco 49ers signing

jim jimmy garofalo to $27 million per year. he has played seven games in his career. >> he's a veteran. stuart: he's a veteran. [ laughter ] >> and, yes we promised you this video yesterday, the instruments are made out of ice from a lake in norway. you will finally hear them play but after this. first, check this out, please. fireworks of the opening ceremony at pyeongchang, the winter olympics. we'll be back after this. let's begin.

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>> can't believe this. one of our camera guys said this is stupid. [ laughter ] >> we teased the video yesterday, but we didn't get to play it because of the market. it's from norway where people are using ice to make instruments. >> what else are they going to do? stuart: they carve them out of blocks of ice from a frozen lake, the big problem, the more they play, the quicker they melt. >> i find it lovely. stuart: started to tell but this yesterday. started, didn't finish. mcdonald's releasing one of a kind big mac, the bling mac, 18-karat-gold stackable ring representing the ingredients of the big mac. they'll give the ring to winner of online contest for valentine's day. got it. a one-year-old boy with down syndrome is the gerber baby, lucas from georgia.

he is the first child with down syndrome to win the title since the contest began nearly 100 years ago. well done, young man. familiaring the market closely. wild swings, up 300, down 200 and now down 50. don't turn away from a moment from this market. just watch this show and stay informed. ♪ baby boomers,

here's something you should know. there's a serious virus out there that 1 in 30 boomers has, yet most don't even know it. a virus that's been almost forgotten. it's hepatitis c. hep c can hide in the body for years without symptoms. left untreated it can lead to liver damage, even liver cancer. the only way to know if you have hep c is to ask your healthcare provider for the simple blood test. if you have hep c, it can be cured. for us, it's time to get tested. it's the only way to know for sure.

for us, it's time to get tested. ...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: it really has been a wild week for stocks. the dow-point swings we've seen each day. still pretty much the same. look at the big board and the dow 30. remember, we were up 300, down 200 and then up 100 again, and now we're down 14. let's see that. dan shaffer is with us, schafer asset management. and also with us, steve wood russell investments chief strategist. both names on either side here. i want advice for our viewers, first to you, dan, i know what the outlook is, you told us many times, the big drop is coming, that this is a bear

market. all right, our viewers, you look into the camera and tell our viewers, these are not hot shot investors with a billion dollars. they're ordinary people, what should they do now? >> again, i'm going to give advice but doesn't mean this is what you should do for the viewers. this is the cycle i see. we're in a downdraft that will eventually end in this level or a little lower and the updraft. and the updraft is a selling opportunity. i wouldn't be panicking today but looking to get out and sell rallies. that's now the next step in this cycle turn of the markets. stuart: i got it. >> right in the camera. stuart: that was very specific. excellent young man, well done, you are learning on this job. [ laughter ] >> steve wood is with me, i know you have a different opinion. >> we do. stuart: you do not believe we're getting into a new bear market, you don't believe we're heading south, south, south. >> correct. stuart: look into the camera and tell our viewers, ordinary

people what should they do with money? >> be in an actively managed portfolio. we've seen the issues with indexes. stuart: what's that mean a mutual fund? >> mutual fund, actively managed, professionally managed mutual funds where people make decisions -- stuart: what kind of mutual funds? >> i think globally diversified multiasset. stuart: international funds? >> international funds. we've been selling the rallies in the u.s., using that to buy in europe and asia, bonds and stocks, globally taking profits to fund that. stuart: okay, you don't think we're in a bear market but think this volatility, the ups and downs and that stuff stays. >> clearly that stays. stuart: why? >> actually where we are in the last couple of weeks is normal. we've been pushing two years of not normal. you need almost a jeweler's loop to see the volatility in u.s. equity markets. >> what is a jeweler's loop.

the eye thing. >> to see things very, very, very small. what we're going back into is a more normal volatility environment. the markets pay one to take risk and pay one to absorb volatility. the rates of returns that investors probably need mean more normal up and down volatile market is reasonable to expect. stuart: but you don't think we're heading for a big drop any time soon? >> i don't think one that will stick. the fundamentals that you mentioned earlier are good. stuart: okay. >> and they are improving. there is one yellow light that we want to put into this. if you look at the tax plan economy, but what the fed's going to do in the response of this good news, i think is something you need to put in your asset managing. stuart: back to dan shaffer, i'm interested in the drop, you think it's almost upon us. >> yes. stuart: how far down do we go? give me a number on the dow. >> monday morning i said we would be at 23,800, which we are right now.

the eventual move will be to the original amount, the level on election night, 18,000 level. that's the level on the dow i'm looking forward to retrace all of this fluff that was built into the market, and the market predicts six months ahead under normal circumstances so it's already predicted evensa the fundamentals as steve was talking about get better over the next few months, they're about to turn, and that could be dangerous and the market's telling us that. stuart: we go down 18,000 by the spring, early summer of this year? 18,000? >> the way the market is trading, i can't tell you exactly -- we think by the end of the year, we can't tell you. >> that's a deep bear market. >> i want to know how the market closes out this afternoon. very difficult thing to predict. it really is. are we going to have one of the last hour of trade wearing we go up and down and down and up. >> reasonably -- that's a reasonable expectation, because what we've seen --

stuart: in the last hour of business, sharply lower or sharply higher? >> i suspect that you probably have people getting out of positions going into the weekend. stuart: sharply lower? >> could be a possibility. i would say, however, look longer term and the global markets are doing better. global economies are doing better. this is opportunity for disciplined investor to take short-term volatility and reposition that global portfolio and i advise that. stuart: gentlemen, thank you very much indeed. dan shaffer, steven wood, appreciate you being here. difficult day. so that's what the market watches think the professionals, what are people on the street saying? hillary vaughn is in los angeles. what are people telling you, hillary? reporter: i talked to doctors, nurses, construction workers, people grabbing coffee today. everyone says they're keeping an eye on their 401(k)s and retirement, but they're not too worried just yet. one woman i spoke to is watching it out of the corner of her eye but doesn't need to

worry yet because they're still way up from where they were before and expect this up and down. here's a look what other people had to say. >> i'm not worried about it because i don't plan to cash it out any time soon. i'm taking a long-term view. >> the economy is basically strong. we are on up cycle, and the fundamentals are right, so i think things will turn out okay. >> it's going to recover. not that worried. reporter: stuart, one woman told me that she is keeping her eye on the volatility. she says she gets a call from her retirement fund manager, she knows she needs to worry, she's not worried just yet. stuart: thank you very much for joining us, hillary, good stuff, thank you. now this, the budget includes some major government spending, which will increase the deficit and then increase the national debt.

national radio talk show host lawrence jones, is he with us after the break or now? he's with us now! let me see lawrence, where are you, lawrence? there you go! okay, okay. i want your take on this debt bomb. we've talked about it all day. actually talked about it for a generation, what's your take on the debt bomb? >> stuart, when i think about it, i think about my generation, because although i love you and our audience members, a lot of you guys will be dead and gone and my generation will be paying for that. so i'm not too happy about that. stuart: so you're saying, essentially, look, i take your point, and you are dead right, because we have to pay the interest on all of this debt. occurrencely, i think it's like $400 billion a year. and i think it's going to go up to at least a half trillion fairly soon, and you don't want to pay for me, do you? >> i'm not interested in paying it, stuart. in the most disappointing

aspect of this is that we had a lot of republicans that promised that they were going to get the deficit and the debt under control, and things like now because of where the democrats are playing this game and the way they're playing this game, they've caved to the principle. i don't think there's excuse considering we have control of all three branches of government. stuart: i would say that they have no choice. if you want to get something passed, you have to spend money because you really -- i hate to use the word bribe, but in some cases, you got to bribe a politician with money for the constituents back home to get them to vote for something. there are no votes in austerity, lawrence, none at all. >> well, see, stuart, i love you, brother, that's where my libertarian card starts twitching over here. i don't believe the votes

should be bribed. that's why i was so against earmarks and talking about bringing earmarks back which is going to make this get even worse. the bottom line is a lot of these people made commitments to the american people they're going to get it under control. i'm pleased they got tax cut, i think they could have gone farther on the individual side but got get the deficit under control. if you love your grandchildren and love your children, you'll get it under control. and right now the politicians in washington nar this swamp don't seem too concerned about them. stuart: lawrence, you are young enough to be my grandson, theoretically, at least -- >> i thought i was your brother. i thought i was your brother. stuart: grandson. keep paying for my retirement, okay, son? come on soon, we'll see you in new york. gotcha man, thanks. the "los angeles times" and the san diego "union-tribune" got a new owner. health care executive patrick soon-shiong bought the papers for $500 million.

the good doctor acquired the papers along with several other california publications from the media company tronc. that happened this week. expedia profits hurt by increased spending on their part. that stock taking it on chin, down 16%. strong profits and a very good outlook from the chipmaker nvidia. they are up 4% at the moment. they had been up more than that. more on that in just a moment. look at the price of gold, near a one month low despite all the turmoil, gold at $1316. and the price of oil down for six days in a row, and today dropped below $60 per barrel. no impact on stocks but probably have impact on the price of gas in the future. and now this -- san francisco seeing an exodus, biggest in a decade. why is that? we'll have an answer from mark musa running for secretary of state in california and he's next. ♪

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week, john garamendi appeared who assured us there is absolutely no way that illegals can get a driver's license and then vote. i believe he's wrong. tell me why he's wrong. >> well, he is wrong for one simple reason. the law says that every person who has a driver's license is to be automatically registered to vote. and that it was up to the secretary of state to pass regulations on how they're going to remove in the voter rolls those people who are not citizens. and the secretary of state has done just the exact opposite. he has put in place a regulation that says every noncitizen who does not want to be registered to vote must go to local government and remove their name from the voter rolls, and as such, it doesn't matter if you are legal or illegal, california is going to send balloting materials to every single voter or every single person who has a driver's license who registers

-- will be automatically registered to vote, they'll send balloting materials, they will rely on the government sending balloting material, and as soon as they do that, they'll vote and be felons subject to deportation under federal law. stuart: you, sir, are candidate for job of the secretary of state in california. the job of the secretary of state is to deal with this kind of voting and driver's license, i believe. so what are you going to do about this if elected? >> well, number one, the state law in california says that the secretary of state is the sole individual responsible from removing from the voter rolls those people who are noncitizens. also federal law says that it is up to the secretary of state to get all the data from the dmv so they can keep the voter rolls clean. and here in california, the secretary of state is telling dmv please don't give me the data of those people who are not citizens, and so what he is trying to do, he's playing a

shell game here and saying the dmv is not giving me this information but he is the only person who is supposed to have the information to remove from the rolls those people who are not citizens -- stuart: i've got to move on. i think it's a disaster for our electoral system. i've got to move on because the san francisco area, there is an exodus, number of people leaving the bay area hit the highest level in more than a decade. what's this all about? why the exodus? >> cost of living. it's a sad state of political affairs here in san francisco. they are not building enough homes to keep with demand. people are having to drive couple, two, three hours to come into work, and people are just giving up. they've got jobs in austyn, jobs in sacramento. why do i have to live in the most beautiful part of california, the bay area, and pay an extraordinary cost of living, i mean, where high

income earners can't afford to buy a house in the bay area. it's atrocious. stuart: okay, you're the candidate for the republican party for secretary of state and we wish you well. thank you very much. >> thank you very much. stuart: back to the markets, where are we now? that's a very good question, we changed rapidly. if i say we're settling down, don't ever say that again. not on a day like this. not on a week like this because we've been up 300, down200 and now we're down 50. okay, and the yield on the ten-year treasury has come down 2.84%. i'm not going to say stability. i'm going to say down 50. 2.84 is the yield. the spending bill passes, doesn't take into account the deficit or the debts. in my opinion, the republicans have abandoned sense of financial responsibility. we have a republican congressman on that next. ♪

. stuart: we're down now about 100 points, it is a wild and wooly market. down 100 right there. i want to get back to the two year spending bill passed by congress very early this

morning. a lot of people worried about it. it is going to add to the deficit and the debt. joining me is republican francis noonan from florida. sir, i'm saying republicans have abandoned financial responsibility. why are you increasing government spending 320 billion in the next two years when the economy is growing at 3%? >> i don't think anybody feels good about the fiscal state this country is in right now. our national debt doubled since 2008 and president obama gutted our military, we have half of our airplanes can't fly, we have the smallest navy since before world war i while china is plowing the south china sea. i voted this thing in the 60 billion of incentive compensation to get enough votes to get to 60 in the senate. stuart: you used the right word, you purchased the votes, that's the problem, isn't it? >> it's a sick system. stuart: it's a sick system, because to get re-elected, you

can't be standing for austerity. there's no votes for austerity. there's all kinds of votes for keep the money flowing to the constituents. it's a real problem, isn't it? >> super problem, and the other aspect is that almost a little over two thirds i think of the federal budget is these fixed locked in place entitlement programs, medicaid, food stamps, et cetera, and social security, and nobody wants to touch those. look what happened to president bush when he tried to consider privatization aspect for social security. stuart: if we'd have had the bush system in place now, i don't believe we would have such a deficit in the social security account. i think it would have fixed it, but you can't do it. it's the third rail of american politics, don't touch, it please. that's the way we are. >> we would be in such better shape if we had done that especially with the increases in the stock market in the last few years, and entitlement

reform like speaker gingrich and clinton did. >> you voted for the budget, you held your nose because you want to see our military restored but you had to vote for it. >> yes, i felt that securing our country, not only did the last 8 years undermine our fiscal security, it undermined our global and foreign policy and security. look what's happened in the middle east, in north korea, still venezuela is a mess. stuart: yep. >> i want to fast-forward to monday of next week. mitch mcconnell says that's the day when the comprehensive immigration points will be discussed. build the wall, end chain migration, end the lottery. talk about daca, people. are you going to insist on a strong law that we do get border security before we get the daca people accepted? are you going to be strong on this? >> i absolutely am going to be strong on it, and one of the

things that i'll give our leadership credit for yesterday and the day before is they kept daca out of all this like two weeks ago so the american people are getting a good clear look when the vote on daca comes down who cares about securing our borders and who doesn't. congressman, thanks for being with us i know it was short notice and we appreciate it. >> thank you for having me on. stuart: appreciate it. there will be more "varney," that's a promise. after this. : . : .

>> the story this morning's volatility. not so much on the downside. we were up 300 and then down 200 an hour down 150. we have been all over the place. >> that's the story of the week. how we will finish in the last

hour, some might take the money and run. >> i will not make any predictions but i will not touch it. i will leave that to neil cavuto who is so fortunate to be with us now. how will we and the dale. >> thank you very much but i have no idea. we are on top of it. to think all of this started a week ago. it started with the jobs report that would normally be in a reminder that everything was fine with the economy but the interest rates is lasted too long. this is a market that just won't quit. >> who knows how it will look at the end of the day. we have seen wild swings