raise issue instead of broad tariff that actually hurts allies and american consumer and business. maria: he told me about the reciprocal tax a long time. tune into my conversation with joe on wall street this weekend, tonight 8:00 p.m. eastern and joining me sunday morning futures, big guest there. right to stuart varney we go. stuart: wait, maria. i think the president was watching you and i five minutes ago when we talked about reciprocal taxes. maria: i think you're right, stu. he has been on the reciprocal tax for a long time and that's why i thought to myself, why is he not enforcing this because it was a good idea because china charges harley davidson bikes, i think, i think it's 90%, 50 or 90%, why are we taxing them nothing? stuart: well done, young lady. the president imposes import tax, a trade war is threatened and the market is selling off

and doing it again right now. good friday morning, everyone, that's where we are going to start. stocks indicated sharply lower, down about 200 points at the opening bell. now this selloff began when the tariffs on the steel and aluminum were first announced yesterday afternoon. next day, today, here comes the reaction to that trade bombshell, many republicans just do not like the president's action and chief economic adviser powerful guy gary cohn he is firmly opposed. our trade competitors livid, china expressed grave concern, canada calls it unacceptable and here is the reason for the concern, number one, retaliation, it is possible that other countries will do tit for tat restrictions on american products and number there there's concern that consumers here will have to pay more. it is a political storm and, yes, a market selloff, follow it here, please, varney & company is about to begin.

♪ ♪ >> allowed to go on for decades, it's disgraceful, it's disgraceful and when it comes to a time when our country can't make aluminum and steel and somebody said it before and i will tell you, you almost don't have much of a country because without steel and aluminum, your country is not the same. stuart: they had it, simultaneously the president announcing the tariffs on steel and aluminum and the dow sold off in response, it happened simultaneously, the president this morning embracing the idea of a trade war, he tweeted this. when a country usa is losing many billions of dollars on trade with virtually every country it does business with, trade wars are good and ease --

easy to win, example, when we are down a hundred billion dollars with a certain country and they get cute, don't trade anymore, we win big, it's easy. come on in, please, john, chairman and ceo of new course steel, a major american steel company, so welcome to the program, it's great to have you with us this morning. >> thank you. stuart: you were at the white house yesterday. my first -- there's some concerns when these tariffs are imposed, number one, that we in america will pay more for products that contain steel because we are charging that tax at the border, will we be paying more, sir? >> well, it will be a little bit more but that's the amounts are deminimus, the average car in the united states is about $36,000, if steel goes up even 20% which i think is a number that is exaggerated, i think it'll be close to 10 or 12% but

if it goes up 20%, the cost since one ton of steel goes into the car and the cost of ton is $800, the total impact is $160, $160 on a vehicle that costs $36,000, the cost of the car will go up less than one half of 1%. not a huge impact on the consumer. stuart: john, the major concern is that other countries will retaliate, europe's largest appliance maker, holding off on 250 million-dollar investment in the united states because of the president's announcement yesterday. surely, you have to be worried about tit for tat restrictions from foreigners? >> we will have. what this will do is equalize the tit for tat. when you look at it today virtually every european company

charges us 25% tariff to bring american goods into europe, they call it a vat, value added tax. it's equal to about 25%, if you look at the countries of europe. right now, it's zero to bring their products into the united states, but we must pay 25% to bring american products into europe. so all we are doing is equalizing, leveling the playing field, leveling the trading field. stuart: in his tweet this morning, literally, a few minutes ago, the president said it's a trade war and it's easy to win, you think we will win this one? >> i believe that we have been in a trade war for over 30 years and it's clear that we are losing that trade war. all you have to do is to determine whether we are winning the trade war is the look at the trade deficit and it's clear when we are losing, when we have a trade deficit of $500 billion a year, it is clear that we are losing the trade war and we are

losing it big, it's time for us to prepare to fight and to get back into the war with the objective of balancing the outcome of the war. we don't necessarily want to win, we just don't want to lose, level playing field, that's all we are asking for. stuart: john feriolla new course steel, we are oblige today you. >> thank you. stuart: market reaction, big selloff yesterday, how about today? another selloff is coming. we are looking at a drop of maybe 220 points about 25 minutes from now. come on in jason, is this all about trade and tariffs, no other factor involved in this selloff? >> i would not say that there's no other factor. i mean, there's a huge other factor that is the central banks of the world reducing their zero interest rate policy gradually, obvious jarome powell, the bank of japan chief shocked the

markets by being more hawkish than the past several years. you have another perfect storm, mini perfect storm relative to the earlier one than in early february and you have these outlandish bold, i guess, is a more neutral way of putting trade policies that trump is starting to put out there and you have investors starting to be afraid that things aren't what they used to be at least for short term. stuart: this may be the start of something bigger than just a trade decline on the market? >> yeah, you know, i think that the -- that the gradual interest rate path going higher is not shocking to the market. maybe the fed -- the new fed chairman was a little bit more hawkish than the markets may have expected but i do just want to focus on one idea that i have regarding these steel and aluminum tariffs, i believe that these will not last, i believe that this is just another example of trump's art of the deal. he's had numerous other ideas

that he's put out there that haven't necessarily come to fruition which is not necessarily a bad thing but shocks people into making decisions and this is another one of his negotiating tactics. i don't think these will last. stuart: okay, we hear you and that's a very interesting point, jason. one more for you. i want to talk to you about jc penny, sales down, that company obviously hit very hard by online selling. it's down 12% premarket this morning. are we about to say good-bye to jc penny completely? >> frankly yes. i don't see another possibility here. i mean, you know, amazon is $1,500 a share and have a trillion dollar market cap for a reason. i've been reading that all amazon needs to do is take a billion dollars of shares and buy jc penny and turn jc pen any's whole foods into outlets. i don't think that makes sense. amazon is doing just fine.

i'm not bullish, jc penny, i hope they can figure it out but i don't see how. stuart: thanks for joining us on an important day. thank you very much. >> my pleasure. stuart: sales drop at smith&wesson, parent is american outdoor brands. this is a gun company, okay. they also say that demand for guns not expect today pick up for the next 12 to 18 months, that's very surprising given that gun control is under discussion, that usually increases gun sales. the georgia state senate approved a sweeping tax bill that punishes delta for cutting business ties with the nra and premarket delta is down 1%. what's happening? >> so they approved a bill to yank the sales tax break for delta on jet fuel, 38 million to 50 million. watch this. he was first a democrat and now a republican. he's the governor of georgia.

he's saying, i don't like these antics, he's calling it immature -- stuart: who? >> the governor of georgia may not sign the take away of tax break for delta. he's on the fence about it. he could sign the overall state income tax break but pursue a jet fuel tax break for delta separately. he's saying, this is uncoming squabble. we are not allowed to do that. it's immature fight. republicans are for tax breaks but now it puts the tax breaks versus the nra. republicans have never been in that bind. watch what the governor of georgia is doing. he doesn't like this at all. he doesn't like the fight. stuart: fascinating story, where are we in the market 20 minutes from now, we will be down approximately 200 points, that's the futures telling us we are down 200 and big drop for the nasdaq too, 80 odd points on the

downside there. senator schumer taking heat for voting against a trump judicial nominee. schumer did not vote against him because he wasn't qualified, he voted against him because he was a white male. how about that? no secret that president reagan was a movie buff and we are told a lot of the greatest movies of the 1980's have -- helped reagan define presidency, the author this hour. iran, building military basis in syria capable of launching a strike against israel. danny, israel's ambassador of the united nations on that one next.

stuart: a lot of retail news today and i'm going to start with the gap, premarket, the stock is up nearly 5.8%, why, we are buy august lot of clothing

at the gap especially at the gold navy brand. good rally for the stock, however, fewer visitors, fewer shoppers going into foot locker, sales down, falling far of expectations as they say and earlier we told you about jc penny, sales actually down. that stock is off 12%. now this, iran building a millrary base in syria which could be used to strike israel. joining us now danny, israel's ambassador to the united nations, mr. ambassador, welcome to the show. >> good morning. stuart: in previous years israel bombed iranian base in syria? >> we will do anything necessary to protect the israeli citizens and worried that iranians are putting so much money, so much into syria and why? to defeat isis, isis has been defeated already, why are they investing billions of dollars in

syria today? they want to take over syria to make it hub for terrorism, we will not allow it. stuart: i have seen these foreign reports that you're talking about, i'm sure you've seen report which is are much more detailed. what i saw was that the they are going to use the base as rocket base, a launch pad, do you have information that you can share with us that there are, indeed, rockets on that base aimed at it's rael? >> absolutely, only a few weeks ago iranian drone tried to enter israel and we had to interact. we know that they want to target israel. we saw what happened in lebanon, hezbollah, proxy of iran, they are threatening our border with lebanon, they went through border with syria. another militia from another direction. we cannot allow it to happen and we will do whatever necessary and prime minister netanyahu will come to u.s. next week, number one issue on agenda.

stuart: prime minister netanyahu visits the white house one-on-one with president trump next week, topic one is dealing with iran? >> topic one is dealing with iran. a threat not only to israel but other moderate countries in the middle east. not only prime minister netanyahu, when other dignitaries are threat of iran. stuart: i don't know the precise relationship with israel and united states, could it be that he has to ask permission from mr. trump to go after iranian base or he's telling him, this is what we are going to do, what is the nature of the military relationship? >> we have a strong friendship, ally of u.s. in the middle east israel, but we share intelligence, we share information, we speak about the issue, we don't ask for permission to defend our people, but we work closely with our american friends in the administration, we will continue

to do that and i think we share the same values and the same threats. isis is threatening israel and the u.s. iran is threatening israel and the u.s. that's why they work together in same boat. stuart: prime minister netanyahu is facing corruption charges. is he going to stay or will he be forced out? >> you know, it's strong democracy, i work at the un. most countries in un don't know democracy, don't know rule of law. netanyahu is busy working at prime minister, i count on the legal system. we need to wait, there is no decision of that to indict prime minister yet, many people in political arena want him to go but i work with the prime minister, he's going excellent work as prime minister of israel and i think he will continue to do that. stuart: has his very close relationship with president trump, about as close as you can get, has that hurt prime minister netanyahu in israel? >> on the contrary, when president trump announced that

he will move embassy to jerusalem, when he announced that the u.s. will recognize jerusalem as the capital of israel, we loved it. we acknowledged it, we are grateful for that and people thanks prime minister for the great work for doing with the u.s. stuart: thank you very much for joining us this morning. appreciate it. all right, check those futures, close touch on what the market will do when it hope in ten minute's time, we dropped a little bit more, now we are looking at loss of 280 points to have dow jones average. it's another down day on wall street this friday morning. we have a big north eastern, heavy rain, snow, hurricane forced winds an get this, it's so bad, it doesn't have to be that bad, but all federal offices in dc have been closed for the day. they close for heavy shower. more varney after this.

stuart: as you can see from the future's board we will be down again, a couple of hundred points at the opening bell. this is a selloff largely the result of the announcement of those tariffs in the middle of the afternoon yesterday. now, the president has just

tweeted this and concerns tariffs, he came out with this literally half an hour ago, when a country taxes our products coming in at say 50% and we tax the same product coming into our country at zero, not fair or smart, we will soon be. >> could end up being very negative, although the intent might be there, trump needs to really refine his message in order to get the point across that he's not going to put us in the trade war which is what people are afraid of. we will be up 250, 2 70 points. back in a moment.

stuart: one minute to go till the open of trading on this friday morning, a big drop for the dow yesterday. it was 4 can -- off 400 points. it was a large decline. much of it came late in the day when the president was talking about tariff on imported steel and aluminum. we are expecting another big drop, literally 30 seconds from now, tariffs still seem to be the motivating force behind this decline, i should say that we have interest rates actually down 2.81% as the yield on ten-year treasury, you would have thought that that would have been a moderating influence on the stock market but

apparently it's all eyes on tariffs and trade and maybe a trade war which the president has been tweeting about first thing this morning. he says a trade war is easy to win. bang, 9:30 here we go. we are off and running, we expect to see a lot of red on the right-hand-side of screen. , we are now 24,253. two stocks among dow 30 that are green and up. that would be coca-cola and ge. we have a loss now of just over 1% on the 30 dow stocks. let's have a look at the s&p, down 1% on the dow, down less than that, .7% on the s&p, much more broader base stock indicater, how about the nasdaq, which is still positive for the year i should say, it is down 1%. so you have a big drop in

technology, big drop for the dow, a lesser drop but drop nonetheless for s&p 500. now, steel and aluminum stocks rallied yesterday when tariffs were announced, big time actually, this morning they are pulling back especially u.s. steel is now down 4% after a big gain yesterday. you can show me more steel and aluminum stocks i will be obliged to you, they are down this morning after a rally yesterday. almost everything is down. who is with me on the friday morning, elizabeth mcdonald is back, of course, jeff sica, it's friday therefore he's here and david joins us as well. first to you, david, is this decline, now we are down 200 points, is this all about tariffs and that's it? >> yes, it is. interesting fact yesterday the steel stock market cap was up a billion dollars, the rest of the market was down $400 billion.

a very symbolic indicater of what protectionism does. little winner and huge loser. stuart: you don't like this in market terms, don't like it in economic terms, you don't like it? >> i'm a free market capitalist. i think it's awful. stuart: jeff sica s this all about tariffs, is that the name of this game? >> i think awful is a good way to describe these tariffs. they are atrocious, but what i will say is we have a market that's been up 200%, had a dip of 10%. this is a market looking for a reason to decline and there's another reason, the reason is now you have -- you have in powell somebody who was as dovish as yellen, we have the real possibility of interest rates going up and when this complacency turns to panic, that's when a lot of the investors that have grown used to an accommodating bed head to

doors. stuart: nervous jeff sica and david -- >> bonson. stuart: bonson. here comes the retaliation, largest appliance make ner europe, delaying a plan, 250 million-dollar investment in tennessee because of the tariffs, latest, please. >> it could cause significant increase in the price of steel in u.s. market and effect competitiveness there, also the energy industry saying this is a job-killing tariff. stuart: wait a second, this came from exxon. what's exxon saying? >> would increase cost of expansion, one of the biggest oil refineries in beaumont, texas, exxon telling reuters

don't like it. oil and gas companies not liking it. it could increase the cost to build out refineries and pipelines. stuart: we don't know how long the tariffs last and we don't know if any countries get an exemption or if all kinds of steel and all still kinds of aluminum are affected. we don't know. liz: the uncertainty is what's rocking the market because we didn't get the details. this is suppose today come next week. stuart: a lot of products that we use every day that could be affected by steel, aluminum and tariffs. ly start with automakers, they were all down yesterday. i am going to show you today, they are down some where. fiat chrysler is down another 2% and gm almost 2%. and brother stocks, beer companies, here they are today, you will change screen real fast, let's have a look at beer producers, busch is up 1.8%. that's a rebound, but craft brew

and boston beer they are down a little bit more. soda stocks were down, not much of a reaction this morning, coke is up, pepsi is up, dr. pepper, monster beverage they are both down. mixed reaction this morning after big selling yesterday. big sales drop at american outdoor brands, that's the parent of smith&wesson, gun company and the company says that demand is not expected to pick up for the next 12 to 18 months. i have to say, david, i'm surprised with a lot of talk about gun control that usually lifts the gun makers, it's down 5%. >> i think this is responding to what had they done quarter prior and the former guidance does seem surprising based on the recent conversation, normally catalyst pushes it forward or maybe setting themselves up for big speak next quarter. stuart: georgia senate did approve a sweeping tax bill that

punishes delta airlines because delta cut business with the nra, but, liz, as i understand it, the governor of georgia might not sign that punishment? >> yeah, it looks like he's on the fence. governor nathan, he is a republican, he started his political life at democrat, political antics in election year, he called it immature squabbling. he may look for another way to preserve that tax break for delta as he sign it is overall state income tax cut. stuart: six minutes in and we are down 220 points on dow industrials, we are also down on s&p and down on nasdaq. you are looking at 1% loss for the dow 30. more on guns just for a moment. youtube now says it was a mistake to remove some progun videos after the florida shooting, they said that was a mistake. i don't think that's affected the google stock, right, jeff, nothing to do with that? >> no, i think they are saying it's a mistake and i think that

was great that they lived up to this, they are not allowing just one side to dictate the communication on this topic, i think it was a good idea that they admitted, social media can't take one side or another, they have to keep advocating for this free speech or they are going to have a big problem. stuart: free speech, that's the issue involved here. we dropped some more, 295 to be -- 298, session low, that would be 24,300 and we are just about down 300 points. individual stocks, let's have a look. look at apple to start with. recently went to record high above 180, all the way down to 173 this morning and that's off a buck 80 as we speak in today's trading. how about amazon? firmly about $1,500 a share, now not exactly a route but way down

at 1467. strong sales at the gap especially at its old navy brand, there's a winner on otherwise down day, the gap is up 5%. nordstrom's profit down but sales were up, the market kind of neutral, actually it is down 2%. foot locker, store traffic flat, sales fell short, foot locker down 11%. cue the organ music. [music] stuart: jc penny sales are down and it didn't give a rosy forecast. david, i don't like the look of that. is it going to survive? >> no, probably not but we just only look at the bond spreads there, let the market markets tell you what's going to happen, we wouldn't touch it with ten-foot pole. stuart: you sell it ten minutes lathe and get 5 cents. >> we find that outside of mandate. stuart: amazon that's killing jc

penny, isn't it? [laughter] stuart: i'm not going to remind you but go ahead. >> no, you know what, i've been wrong on jc penny but i will say is i don't agree -- i think jc penny is going to survive. i see the model emerging that could have a very good shot against amazon. it's the treasure hunt model that tjmaxx uses, i think jc penny will adopt it and if they do adopt it they are going to survive. it's very difficult for me to fathom things getting worse for them and i do believe they are going to survive. stuart: are you going to put flyer money -- >> as soon as they come out, as soon as they come out and say they like the treasure hunt model, i will buy it, but until they come out and say that's what they are going to do, i'm going to stay away from it but i think that's what they are going to do. stuart: we are down 330 points. we are back to 24,281. david, the last hour of trading

especially on friday afternoon is always the one to watch out for, be careful for, what's going to happen, it's a difficult question, what's going to happen in the last hour? >> yeah, i really do believe that the most bullish thing to happen today is we drop 6 or 700, i think the administration needs to get the message that this is more severe, grand total of two people telling him this is a good idea. he has 20 people telling him it's a terrible idea, he believes, tweeted eight different times this morning, no, no, it's going to be just fine 2, to 300 points is not enough. there needs to be clear signals this markets are not going to withstand trade war. there's 6 and a half million jobs in companies that use steel, there's 140,000 jobs in companies that make steel. the odds are dramatically against him on this one. i think a big wash-out would

perhaps recalibrate him. stuart: highly unlikely that this president will turn around on monday morning to change his mind. >> at 700 down, i think he will. >> i think that that's the only thing that could give this market a quick fix, but the bottom line is we have a market that's going into rising interest rates and we have powell who is -- is more diligent when it comes to inflation than the last two heads of the fed. we have an issue there. stuart: all right, we hear you all, gentlemen, jeff and david, many thanks for joining us, we do appreciate it. all right, let's have another check of where we are. we are 11 minutes into the friday morning trading session, we are down 306. wal-mart making a big investment in gee whiz tech, new machine that tells when vegetables and fruits are rotten and pull them off the supply line, we will tell you how they work, a former

reagan aide of the white house tells how movie helped shape the presidency, really? more varney after this each day our planet awakens with signs of opportunity.

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>> where are we now 15 minutes in, 24,281. this is a selloff. let's go to the floor of new york stock exchange, i think this is all about tariffs and trade, nicole, what's the mood down there? nicole: that's absolutely right. fourth day in the row of selling ultimately. dow is down 346 points. mood overall, traders are okay, they are used to volatility, they were used -- three big days and now four down

days, volatility is back, but the big picture is what the tariffs mean, 10% on aluminum and 25% on steel u it's not just that but it's about kit pal or paying for more raw materials and could spark international trade war, what will the other countries do and european union to retaliate, and what kind of repercussions would we face and you don't want to take february 9th lows. stuart: that uncertainty pushing the market down. nicole, thank you very much, indeed. totally different subject. our next guest wrote book about ronald reagan and love of the movies, movie nights and how reagan drew inspiration from movies like when he quoted clint eastwood when talked about raising taxes, watch this. >> i have my veto pen drawn and

ready for any tax increase that congress might even think of sending up and i have only one thing to say to the tax increasers, go ahead, make my day. stuart: nobody delivered a line quite like ronald reagan. this gentleman is mark, assistant press secretary under president reagan and he's the author of that book. what's this about rocky fall being a favorite of the reagans and defining his relationship with the russians, i don't believe that. >> you can believe it. in movie nights with the reagan they watched rocky four and how much they liked it because it was patriotic the u.s. beat the soviet film. stuart: he obviously loved it but you can't say that he drew inspiration with russians by rocky four? >> he believed it before he got president but the movies that we saw at camp david reinforced some of those views and entertained him and mrs. reagan

on the weekend. stuart: like every friday night, saturday night, movie night with the reagans? >> pretty much, on friday nights and saturday nights at 8:00 o'clock precisely he would open the door of cabin, escort a small group in and watch movies. stuart: were you there? >> yes, i was. stuart: that must have been something. what's the movie war games, don't tell me that that affected mr. reagan's views on nuclear war? >> well, depends on how you define affected, the room was uncharacteristically quiet because it occurred to people that nuclear weapons could be launched by accident and i think weight on his mind and i say because he we wanted to rid the world of nuclear weapons and then it occurred to everybody that despite those efforts they could be launched accidentally and the movie had sobering effect. stuart: did mr. reagan had a

favorite movie other than one of his own? >> in movie nights we talked iconic 1980 movies including oldies, hell cats of the navy and newt rock all american. stuart: i remember -- what about days off? >> the reagans loved that and mrs. reagan recalled and was last interview she gave before she passed away in home in los angeles. she was tweeted about movie night with the reagan and we had a laugh. stuart: i haven't got it right. that was the first time that you can actually hack into computer and change your grades. >> i wish i had known that. stuart: didn't we all? that's a great book, thank you for joining us. >> thank you for having me. stuart: thank you. check the market, i'm afraid

friday morning and we are still down 300, 24,300 is where we are. angela merkel admitting that there's no go-zones in germany, neighborhoods controlled by muslim migrants that are dangerous and please do not enter them. we will discuss it and deal with it, more varney after this. at holiday inn express, we can't guarantee that you'll be able to contain yourself at our breakfast bar. morning, egg white omelet. sup lady bacon! fruit, there it is! but we can guarantee that you'll get the best price when you book with us. holiday inn express. be the readiest.

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stuart: we were down 340. now we are down 291 but we are down. now this, germany's chancellor angela merkel admits there are places in her country that not even the german police will go, these are the so-called no-go zones. joining us now the host of the next revolution with steve hilton, the man himself, steve hilton. now u steve u there is an election in germany this weekend, merkel's position is very dicey, why did she come out now and admit to something which really is an embarrassment for germany, no go zones because of muslim immigrants, why now? >> well, because her position has been dicey ever since that -- that terrible decision to throw open the borders and invite literally a million or so people to -- to flood into

germany. i mean, you mentioned earlier, stuart, that you were going to be talking about wal-mart high-tech to spot rotten fruit vegetables and ms. merkel needs one because it's been a complete disaster for her. it actually cost her the national elections a few months ago, she's still trying to put together a government and still hasn't happened and i think what she is now doing is clearing up the mess and trying to make amends for that disastrous decision that's having ramifications not just in germany but all over europe. stuart: well, yes, look at italian election this sunday in which you could see the return of the -- the five-star movement, the return of populism. it seems that angela merkel's decision, what was it less than two years ago, upset the entire european apple card and they still have not recovered and they still don't know what to do about the mass of immigrants coming to their country. >> that's right, because the

fundamental principle of the eu and one of the reasons that britain voted for brexit is the principle of free movement, once you are inside the eu, you can move to whatever country you want. they didn't combine that with tough outer border, when you germany said, come to germany and we will take care of you, actually, those people that come to germany can also go anywhere else in europe because of the principal of pree movement and they are not prepared to do anything about that because it's fundamental to their idea of what eu is all about. stuart: getting rid of open borders is exceptionally difficult once opened, that's a fact. john, he's threatening and promising a firm response to america's tariffs on imported steel and aluminum, is that an empty threat from the europeans? >> look, i don't think it's empty, i think they are within their power to do that, but remember that eu already has

tariffs that imposes in all sorts of goods. the thing i was instruct by -- i got his words, he described the tariffs as blatant intervention to protect and the europe itself protects its own industries slapping massive tariffs on all sorts of things that they -- that they want to protect domestic industry. this is going on all over the world and what president trump is doing is just actually finally introducing what's his favorite word and recippal, we will do the same thing that the eu does that china does and other countries do. it's not an empty threat but just actually -- the president is putting the u.s. on the same level playing field and the attitude towards protecting domestic industries. stuart: steve, we will be watching the next revolution with you at some point over this weekend, i believe it's sunday night, fnc? >> 9:00 eastern on fox news.

stuart: i will be there. >> good to see you. stuart: there will be more varney after this.

stuart: yes it is a selloff as we speak, the dow jones industrial average is down over 300 points it appears that the tariffs that is the catalyst for this selloff. it started yesterday afternoon when those tariffs were announced we were down 4 00 yesterday and, in fact, ladies and gentlemen on the stock market, we're down all across the board. 15 years, trump ran a highly successful reality tv show. now, he's putting on a similar production as president. he's taking political debate out of congress and put it in the white house. and he's put it on live tv. is that a good thing for america? in my opinion, yes.

congress is not a debating chamber. it is a voting chamber. but public doesn't get an airing of the issues they get a lot of talking points on c-span what trump has done is bring both sides in and open up the debate. he's held bipartisan meetings on guns, trade, opioid and any other subject that comes up in the general flow of confers. and on live tv, daily -- what's wrong with that? for years, voters have complained that congress doing nothing. the do nothing congress has been a long running headline. the trump show is attempted get something done to end the deadlock face-to-face debate where all opinions are aired. doesn't it offer best hope of actually doing something on guns or opioids and yes, immigration. congress on its own didn't do much. prod i bachelor's degree trump from the white house we may see some action. yes, the president changes his mind a lot. yes, he tend to agree with the

last person he talked to but he's a business boy and he's treating politics like a board meet oing. his objective is bring both sides together and thrash out a deal. get something done. and like him or not many people watch, it is entertaining. he's a great tv performer, and he's taking politics out of the congressional back rooms and put it in your living room. this is really different. the second hour of "varney & company" is about to begin. consumer sentiment a very important indicator, news on it, liz. >> university of michigan coming in better than expected consumer confidence is still at generational highs. that we haven't seen sips the year 2000. after tax income, is tbroaing thousand at rates we haven't seen in about 6 years. so you know, the tax cuts are

helping, and kiewrls spending remains flat so that could weigh on gdp numbers. >> but it's a good solid report that trend up continues. got it. we're down -- no impact on the market that i can see. we were down 300 when the news calm out we're down 294 now so i don't believe that news on sentiment really affected stocks. how about those big tech names, you always have to check them because that's where the money has been going. they're all down. apple is become to 173 this morning. facebook at 173. microsoft at -9d 1 alfa bet just town 13 dollars and amazon is down 22 dollars all the way back to 1470 big tech down. so is j.c. penney lower sales. they're laying off another 300 people that stock is down 12%. 342, $3.44 a share that is j.c. penney big sales drop at american outdoor brands that's

the parent company of smith & wesson they say demanding for guns not expected to pick up for 12 to 18 months. that stock is taking it down 6%. where's the price of oil this morning? we have a glut on our hands, america is the world's largest oil producer this year. and we're down to $60 a barrel. i want to stain the market, because that's where the action is this morning certainly the financial action bring in russell investment toes chief marketing strategist steven wood, is this selloff all about tariffs, that's the issue of the day. >> i don't think it is. i think the fundamental in the united states economy are good. >> that strong. stuart: industry strong. tax plan will help. >> i think when we're seeing in terms of the global economy look good. i don't think fundamentals have changed all that much. stuart: so what's wrong? >> i think coming into 2018 it got expensive and volatility too low and this is return to normal -- environment. so i would say to investors i would say to your viewers this

is -- more close to what normal feels like in terms of market action. stuart: well this is extraordinary dip we're down from 26.6 to 24.3 you're not prepared you have fresh cash you wouldn't be putting it in? >> fresh cash on the sideline we would be rebouncing and -- stuart: wouldn't be checking money into the boeing, caterpillar, the fox and microsofts of this world? >> no consistent because of the evaluation market is very expensive with good fundamentals. ly you're seeing a lot of opportunity and equity space europe, with asia, merging markets, so you don't get out of the u.s. but you have been up well over 300% to the peak that is a opportunity to reblays good forms in the u.s. and be very disciplined only >> where is bottom? >> there could be a chop in this range and evaluation we've saw in u.s. market coming into 2017 certainly into 18 when you look five years you don't need a

glamorous reaction but the go forward looks more like a three or three and a half percent annual return in u.s. equities which is not terrible. but globally you might be able to cobble together better return and multiassets. >> but where's the bottom for the dow jones industrial average as the question would -- [laughter] >> i don't know there is a direct answer to that very direct question right now. >> wait a minute you're advise ing people where to put the money -- >> in the short-term those opinions are elusive in the short-term you're probability. >> share one with me where do you think the bottom is? >> you probably correct down from here. so this kind of volatility multi100 point move on the dow are s&p 500 -- is a more normal environment. stuart: i don't give a damn about normal environment i'm asking you where is the bottom 24,276 as we speak. are we going down to 23,000? >> i think the magnitude is volatile to downside.

stuart: what the hell disease that snow and come on i don't understand you. >> so -- you want to look at where markets are going a point stment is not ascertainable. you can't get that to look for one would be some i don't think to say fake news but face data point but what is the direction so when you play a longer term probability right now at this evaluation with these fundamentals in u.s. coming into this year, you've got an opportunity to be disciplined to rebalance. but going out to making enemy of evaluations is a bad strategy in short-term, long-term, medium term and in europe, asia, united states right now, can fund that rebalancing discipline. over time that will help you. >> i can give you a number if you want -- >> what's the number? >> 42 is what they said in hitchhikers guide to galaxy a number to arrive at with great caution. >> giver me the number -- what number? >> on the dow there's one number to give in short-term i think we're down lower today.

next week is probably some volatility i think what's happening on trade and tariff will add to that volatility be if it were go down 5 a% we might change our percent. >> so it is like pulling teeth. i'm telling you but thank you very much sir. >> you're welcome, sir. >> charles -- down 330 as we speak u now schumer voting now on -- judicial nominee one of prump's judicial nominees, why did senator schumer vote no? well, i'll tell ya. because he is white. south carolina senator tim scott calling him out on -- with a tweet. perhaps senate democrat should be more worried about the lack of diversity on their own staffs than attacking an extremely well qualified judicial nominee from the great state of south carolina. tammy bruce independent women's voice president newly elected to fully install in that position. >> i was tapped for that. yeah i was appointment --

>> tapped for that okay what do you make of senator schumer doing this ?j i agree request senator scott look the african-americans are about 22% of democrat vote. currently the senate staff has about less than 1% of staff that are african-american so there's the hypocrisy there. but more importantly, we went through a civil war. so that we wouldn't judge people based on the melatonin in their skin. so many americans have died to shift us out of this attitude that you're going to give a job or talk a job away from someone because of how they appear. to for for the senator to reestablish this notion regardless of whether it was white or black that americans should be judged on that alone or get a job or be able to have a career, or reputation based on -- their skin color is to what that nation stand for. that's what we're rejecting here but it tells you everything you need to know about the commitment to identity politics by in thes and why they fail in this country. >> well it's a commitment to

affirmative action all things being equal it is the minority candidate who gets the job. that is affirmative action. that's what senator schumer is pushing for. >> affirmative action is technically, opening the door and allowing the opportunity to compete. that's what affirmative action is. it is not a guarantee that you're going to get a job because of your gender or how you look, belonged or thin or beg or black or white or hispanic so affirmative action is opportunity to compete what schumer is saying you're going to succeed based on what we decide is an identity aspect of you. that may not have anything to do with whether or not you can do the job properly. this is why on the democrat side, their governorring fails their attitude about business fails because they're not looking atage of americans in general when you look in general you have a natural ability to have a more diverse staff. you can ask the democrat bs that if they're basing it on

affirmative action they certainly themselveses are failing because of the number of people of color on their staff. >> stay there please tammy more for you shortly big hour for you on "varney & company" nicholas -- launching his reelection bid. while dancing -- as his country collapses we ask it all of the time. what is the end game for that country and that man? the dancing president -- we have american olympians with us too. they won the bronze in pairs figure skating did i mention they were married? we'll ask them how that works -- i can't imagine. they're with me next. that's here in new york on the set. plus, amazon made more than $5 billion in profits last year but reportedly paid zero in federal income tax how did they manage to do that we'll break it down for you. plus a smart watch, that can help treat epilepsy by detecting seizures and alerting family members -- we have the invent tore you're

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>> well it's friday and i forget to tell you we're down 00 points down 400 had thursday. 300 on friday morning we're back to 24,2 84 couple of loses, look at boeing a wonderful run up but it's one of the biggest drags on the dow at moment it's down 3.5%. $12 lower hour wal-mart with a price target for wal-mart, 93. they used to be saying they go to 110. now they'll be satisfied with 93. wal-mart coming all the way down down 2 pblght again. let's switch gears i mean really

going to olympics. now they're the first married couple in two decades to compete and medal for team usa they got a bronze an they join us now in new york city. chris and alexa are with us now. ladies, gentleman women to the show. >> thank you. >> i know you've faced this question before but being married i'll ask you first alexa doesn't this impose extraordinary difficulties on your married life when you're out there training for eight to ten hours a day? >> how can there be any difficulties when you're married to such a cute guy like chris. [laughter] >> good answer. >> so i know an extremely personal question. but chris, if you have a fight off the ice -- how does your performance on the ice rate? >> it is 10 out of 10 still we keep them separate. >> you've had this question before. >> can't bring it on the ice or take it off the ice. >> you've had this practice

response isn't it? >> on the ice where there would be any kind of argument off the ice whole married life thing that's a breeze. it's more of like the technical parts of skating where -- there might be some bickering. >> seriously on the ice doing the pair skating, it is exceptionally reprice isn't it you've got to do absolutely everything -- perfectly together. >> uh-huh. >> do you have sort of a sense of -- being in touch with your partner? >> yeah. we can since when we're truly gelled that day. >> what? >> like one unit. >> got it. you know when you make your hair perfect and the gel in the place chris and i do our best and kind of difficult sometimes to be there. you know some days you're fatigue and a little bit more tired. >> got in a fight so we have to put in the effort to make sure we're united and one unit. >> so are you aware at all chris of the politics that was swirling arranged the olympics?

>> you know what being at the olympics anding being an athlete at the olympics you're focused you have your blinders on you're there to do your job so we weren't -- >> never aware of it? >> no we were there and a working and skating. >> what about that little -- argument about a young lady who took a selfie with ivanka? and people didn't like that perhaps because they don't like ivanka or the trumps. what's your response to that? >> i was unaware of it. i mean for me selfieses are such a big deal always trying to get chris to take a selfie with me everywhere and she shuts me down. >> that wasn't around the world and it wasn't -- a lot of people didn't like it for what she shouldn't have done it. but -- >> are you invited to the white house? >> well we haven't been yet but hopefully. >> you would go? >> i mean, it's the people's house it would be such an honor to be in there and see what is history in there we would be honored. >> what are you going to do now? >> your agent is sitting right over there.

i'm sure he's got planningsts i'm asking you what will you do? >> first i have a question for you. yeah. because i know you have a boxer who showed you his belt i want to know how you feel about real -- olympic medals? >> may had i handle it? >> it is heavy. can you handle it? >> i can -- [laughter] >> wow it is heavy. >> it is. >> that's got to be three or four pounds. >> yeah. sure. >> not all gold? >> in my heart? but seriously are you going to compete four years from now or go professional and doing the -- skating rink circuit? >> yeah, i mean, we're in the best years of our lives right now and we're not -- we're not going to stop. so we're -- ready to push forward and we have world championships coming up in two and a half weeks. so we still have a lot of training to do before the end of the season and we're skating and in love and nothing that we want to end right now.

>> how long have you been married? >> it's been over a year and a half just a little bit. >> early days. [laughter] >> we're in honeymoon phase. >> a terrible thing to say. shocked at what you can get away with on television. >> alexa chris an absolutely pleasure have having you here ad you've done honor to america and that's a fact. >> thank you very much indeed. something completely different. is that okay with you skate is centers let's do this. check it out. a supercolony of penguins scoffed in an extraordinary remote part of antarctica called the danger islands off the northern tip more than 1.5 million -- penguins i'm not sure a daily penguin i don't know what that meanses what's that mean anyway? were found researchers discovered the colony from satellite images. it's the biggest in the ant art tick just a note the expedition funded by the dalio foundation behind billionaire hedge fund we

thought you would like to know that one and we'll be right back.

>> there are some big losers among the dow 30 stocks at mcdonald's is rather biggest losers of them all a big bank that's cutting its price target down to 170. they had been expecting 190 at mcdonald's now it is 170 and stock is about 150. this bank is not positive about people buying into the new low cost menu at mcdonald's. next case. what do we got here? georgia state lawmakers -- approving a bill that kills tax

breaks on jet fuel this is attempt to punish delta airlines, because they cut ties with the nra. tammy bruce is with us still aren't you? yes you've made way for skaters now you come back. >> fabulous. there -- yeah. what do you think about this boycott business? boycottings businesses that have any ties with the nra i hate it. what say you? ings it's certainly not fair. well also do nothing on the issue that people say they're concerned about because they're targeting the individual american members, whether they might be like for myself a woman alone firearm that is a safety issue a self-defense issue. yes indeed hunters, but this is a core of the founders wanted us to have firearms in a sense that both hamilton and washington noted to remember the nature of our power. and the importance of being individually being able to defend ourself os. so it goes after an punishes individual member doesn't have an impact on policy or -- or or gun rights.

if you will or nature of the shootings that have occurred so it's i think petty and american people see it and backfiring a little. fedex say they weren't going to engage in that that's the best way and appropriatable way. >> to keep nra videos off youtube and goggle and apple all of the rest. that's a flat out denial of free speech. don't do it. >> it's a knee jerk reaction because the problem also is that we know issues involve a number of different issues that going right to the gun keeps us from being able to address the real issues jrngd lying these problems. >> you're absolutely is right. we want to check ge lees. okay we've got ge up today one of the u few winners look at that. how about that? amazon paid no federal taxes in 017 according to a report this as cities throw tax breaks at them in hopes of landing the building the guy who dug through the numbers will be joining us.

u coming up.

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♪ >> love it. >> awe -- stuart: awe -- back in the day. you dance to that one all right. >> daily dose of beetses. sphwhriewrt the beetles will be played 10:30 eastern time. bottom right hand corner of the screen and center of your screen we're down 360 point how about those big techs. i believe they're all still down, yes, they are apple pike, microsoft alphabet on the don side. by about 1% or more. president trump says he's going to impose hefty tariff on steel an a aluminum he made a case

with the tweet this morning. here's what tweet when a country is losing billions on trade with virtually -- with every country it does business with trade are wars are god and easy to win. exactly, when we are down 100 billion with a certain country and they get cute, don't trade anymore. we win big, it's easy. clark is with us. he's the trade policy counsel, the r street institute. sir, i know you disagree with the president. i know you think these tariffs are just flat out wrong. but what's your solution? these countries have been dufn uing their steel on us for a long, long time other presidentd sanctions trade tariffs in the past what's your solution? >> well first thanks for having me on. i think that the true solution here is to look at more targeted

remedies. the problem with what the president proposed yesterday was we're taking a very blunt instrument that claim of national security to hit china. but ultimately we're going to hit a lot of our allies i think that's the big problem and it's beginning to have negative ramifications for the ripple and throughout the economy. >> i got it you don't like it. i understand that and a lot of people really don't like this and market is in a tail spin because of it. but when you say targeted -- what does that mean target certain companies or certain countries? or certain specific items is that what you want to do? >> sure. i think a blanket tariff is a really bad idea. but there are remedies available under u.s. trade laws that would target china bad actors, countries excuse me, that are abusing or o dumping products unfairly on the market. i think we have better remedies again, because the claim is national security.

it's a very, very serious and very blunt instrument that we're trying to use here. >> now, the president also tweeted this morning about i think he called it counteractive tariff i can't remember exactly what it is but if they tax something, 25%, our product going there -- they tax it at 25%. we tax one of their products coming here at 25%. what do you say to that? >> i think that's a really bad idea on both sides. i think that no one wins in these sort of trade wars. history has shown this as you mentioned earlier when president bush imposed steel tariffs back in 2002. it was estimated that has we lost 200,000 jobs and nearly $4 billion in wages over -- the 18 months that tariffs were in place so i think again, history shows that these things don't always work very well. >> could it be that the president is just -- putting out an opening gamut here's what i'm doing with steel

and aluminum we're on it. everybody -- let's go. it's just an initial bargaining position. >> potentially, i think that that is kind of king the consistent request negotiating tactics but look at the severe market reaction. there was a huge selloff within -- two hours of the announcement yesterday. the dow was down 500. again, it's down 3 to 350 this morning. so i think it's fairly irresponsible approach if that -- if that's your opening negotiating tactic because what we're talking about is -- real people losing value in their 401(k) the stock market being down, i mean this will ripple throughout the economy. >> okay. clark we do hear you. thanks for joining the debate we with appreciate it. thank you very much clark. >> thank you for having me. now turning to that congressional race in pennsylvania a tight race yiewrm when democrat candidate koller lamb put out this ad trying to distance himself from thaps.

nancy pelosi roll tape. >> bigst issue is nancy pelosi it's all a big lie. i've already said on front paifnlgt newspaper that i don't support nancy pelosi. >> trying to put distance. well now the republicans have an ad that puts him back close to plosi. >> fresh face or two face he's a liberal, but truth connor another two-faced liberal he'll say flying to get elected. >> the battle here is whether or not house democrats standing for reelection or for election want to get close to nancy pelosi. fox news contributor and former clinton political shawn is with us thousand. that is the issue how close do they want to get to nancy pelosi what do you say? >> not at close at all you can tell from the ad from a tight special election pennsylvania that connor lamb wants to stay

as far away from -- former -- speaker and current leader pelosi that she's the best republican that they have? >> she's surely one of the best weapons weapons that they have. hillary bernie sanders, they're -- right there too. but connor lamb is running as a former prosecutor, a former marine running on apple pie issues. so he's trying to run mainstream and right now stuart,s at least that race is very close. stuart: bring us up to speed on the division within democrat party is there a group of younger insurgents who want to make waves but thwarted but nancy pelosi is that extreme? >> i don't think it's extreme. i mean, there's a challenge apparently stuart in, nancy

pelosi's own congressional district and shoos she's the most conservative candidate running you can believe it and the progressive wing of the party or -- effectively socialist stuart, they're not free market capitalists by any means, and it is not clear to me whether they accept the basic organizing principles on which our democracy has been founded in terms of markets, social, safety nets and robust military. >> has the left really taken over the rank rank and file party members? >> stuart, i don't think they're going to make me man of the year this year or any time going forward. i think -- as a moderate i'm a lonely man i have a few cohorts but yes, the energy in the democratic party is with the left and far left i think to the -- detriment of the party and i dare say the country. >> you're still a democrat that you -- >> still a in the and i hope connor lamb wins i think that would be good for thing that i

believe. stuart: where are you right now? >> i'm in salt lake city but don't worry stuart i'm heading to florida soon. >> i don't think you're going to live in new york much longer. >> i don't think so. [laughter] >> you're not? >> really? going to leave? >> trying to move down there because -- the crippling burden of taxes is such -- that it's not good for those of us who are mainstream capitalists. >> tough saying this to you for years glad you've seen the light. he's all right seen the light. now this amazon ranked in what 5.6 billion profit last year. reportedly, though, they paid $0 in federal income tax. let's talk, bring matt gardner with taxization and economic policy now you did the research -- so amazon paid $0 to the federal government is that accurate? >> that's the best estimate we have from annual financial reports yes. we don't get the tax return but

that's pretty much the same thing they say they earned 5.6 billion and actually paid negative federal income taxes in 2017. >> yet we have local authorities bend over backwards to give them tax breaks to build that second headquarters in their local district. how do you explain that? >> it's a pretty interesting junction position given amazon's history i emphasize first of all this one isn't one office cheer or rei pick and go back five years seeing amazon earned 8.2 billion and paid 11% tax rate. and going back even further we know that amazon has been -- groundbreaking company in finding ways to sell things across state is line without collecting sales tack on it so tax aa voidance has been a big part of their -- of their profit max myization strategy. >> matt am i right in saying that we always think that amazon is head qeerted in --

head quartered in seattle but i've been told, in fact, their headquarters is in lux m luxembourg in europe? >> they have affiliate in luxembourg that they have allegedly been using last few years to avoid taxings on their european sales so i think idea is that they're shifting their sales from britain, france other companies other countries -- into lux luxembourg to avoid tas there. >> i have to tell you i find it extraordinary that regular brick-and-mortar retailers they pay a very high profits tax, in fact, some of the highest there is. they pay more than 30% most of them and yet the company which is destroying brick-and-mortar companies, amazon, they pay no tax. that's an extraordinary juxtaposition when you think about it? >> absolutely. i think there's two important clarificationings on this one you're absolutely right. company like wal-mart of brick-and-mortar company that's

been -- competing with amazon fref they've been paying close to 35% tax rate a huge gap between 35 and zero but i think it is important to remember that amazon is not an outlier this goes way beyond them. and last -- two weeks since our amazon report came out, we've seen exactly the same disclosure lots of profits, no tax. from ford motor company lockheed martin and company of kfc dean foods the list goes on and on so the real story whether our helicopter tax i think is one of inequity between those who pay nothing and those who pay the full share. >> matt fine report very interesting sir. we appreciate you being with us this morning. thank you. >> thank you very much. >> yes, sir. checkcoming up we say it all ate venezuela on the brink migrant crisis comparable to war on syria, what or what is the end game is this we'll try to bring an answer to that one. and the market falling on president trump's announced

tariffs so where do we go from here? big name market watcher, once called the trillion dollar man he's with us next hour. ♪

>> last hour markwineburg art of the book movie night with the reagans described how movies effected president reagan made some surprising assertions in the book. also how the cold war thriller war games, supposedly had a special effects on the president. let's wafn. watch. >> well dpengdz how you define effected it was a sober movie i remember it well and describe it in movie nights that at the end of that movie, the room was uncharacteristically quiet because it occurred to people that -- nuclear weapons could be launched by accident. and i think that weight on his mind a little bit. i described his relationship with gorebit why it was so important to him because he wanted to rid the world of theps and then it occurred to everybody that it could be lanched accidentally so that movie had a sobering effect.

>> well, coming back a little but it doesn't amount to a whole hill of beans now down 250. we were down about -- 350. i've got to move to the crisis the ongoing crisis in venezuela deepening and said that many, many times. and venezuela report losing an average of 24 pounds in weight per person. look on your screens, that's the president nicholas dancing on

stage when he announced his bid for reelection. by the way, the starvation crisis has reached the local zoo. animalses are eating each other that's not funny but it whats to be true. joining us now is the author of blood profits that's the book. and president venn is a newman who always works at our reporter on what on s.e.r.t. going on down there. now how many times have we said i have to ask you, the end became. the end of the regime surely -- it's week away rather than months away. isn't it? >> i hope so -- so do the venn way plan people but second cousin guy who is actually a u.s. citizen and lives in miami long history of relatives not getting along. it was in the u.s. congress begging for a military humanitarian intervention. in the country to overthrow his cousin.

because the situation is so bad. >> wait a second he was looking for the american military to intervene not with guns blazing but with food for everybody. is that it? >> correct. so they want -- interim american in the volume is growing they wanted interamerican defense force led by the u.s. but also presumably other countries in the region like columbia, brazil effected by the immigration crisis, and peru to go this there with humanitarian aid. but the humanitarian aid would have to be secured by guys with guns because right now in venezuela you have a horror show of what's going on. >> do you think there's any chance that america will use its military to go in there and secure reserves with guns? >> it very well might volume is growing requested by venezuelans themselves and requested by neighborses and brazil and argentina brazil and columbia are facing exodus and now we

have the -- you know, child mortality here. so once you start compare aing the xrnt to syria you're dealing with a very big problem and big source of cocaine and oil. it's a unique and horrible situation. >> do you think this guy goes down fighting? i mean, mr. madiro retreat to a bunker at some point? >> i think rex told him to go to a beach in havana and go back and retire with his masters in cuba. because it's cuban intelligence services that's really running things down there. and i think that u.s. is looking for him to sort of offramp jengtly unfortunately i don't see any way that -- that that's going to happen. and the elections are far a way to buy more time to trick opposition getting into legitimacy so people will fund him. there are to real elections and

opposition isn't going to go. >> by the end of this year is he gone? >> he has to be. i just don't see how there's -- there is no way this can hold on. i mean as you say people are actually fighting with each other for food. every day now, i had a friend come in yesterday telling me she looks out her window and every day in a -- and every day there's someone -- growing through the trash she comes home and three people are begging her because she's a journalist fade many american dollars. if they could give her some food and how do you decide who do you feed? and it's aggressive and it's just sheer desperation. >> okay. vanessa thank you as ever for being our reporter not on the scene but you know what's going on and we appreciate it. vanessa newman everyone. >> thank you very much. >> how about this a smart watch that can help treat epilepsy by detecting seizures and alerting family members. medical break through, we have the inventor with us.

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>> a tech company developing a watch to detect epileptic sere sures joining us now, i think that's it. no that's right impatica rose

lienal welcome to the program good to see you. >> good to see you stuart. >> so it's a smart watch. does it warn of an impending epileptic seizure or does it say you're getting within now. alert the relatives? >> it says you're getting within now. and it automatically alerts the people that you designate you want with alerted. >> how does it work? >> it senses electrical changes in surface of your skin and your motion. it uses advance mosh learning onboard running inside the watch. and it is continuously running and trying to detect when these events happen and when it thinks that one might be happening it notifies your smartphone which notifies your loved ones. >> do you have any competition on the market or is this a brand by the way do you have fda approval for this? >> we have just received fda approval for this. and we're told by --

digital health experts this is not just the first seizure detection device that's fda approved worn on the wrist but first smart watch fda approved. >> may i ask how much does it cost? >> right $250 plus a monthly subscription fee. >> $250 a monthly subscription fee alerts you were your phone and relatives when there is a e seizure and there's nothing else like it on the market. >> that's correct nothing else that is convenient to wear on the wrist on the market like this. there are other clumsier things that one can wear. >> heaven for bid and name your company is -- >> it is impatica it's like the -- it is italian word for empathetic and device is called embrace. >> embrace thank you very much for being on the show it very interesting. we appreciate you being here.

thanks very much ma'am. >> pleasure. >> next hour form orer vice chair of ge to tell of thing a company can survive in its present form. we'll be back. ...

stuart: good morning, california 8:00 on the west coast, and this editorial is for you. do you know what your government is doing to you? apparently not, because you keep electing the same party to run the same government, and that government is not working in your best interest. item 1. california has the highest poverty rate in the nation. one in five state residents is poor and that's according to the census department. these figures are not rigged. they are real. item 2. income inequality the gap between rich and poor, one of the highest of any state. item 3, taxes. again, some of the highest rates in the entire nation, and it's

going to get worse because californians can no longer deduct their state taxes on their federal returns. item 4, quality of life, the golden state is dead last in the u.s. news and world report rankings, the cost of living, traffic, education standards, why on earth is california still called the golden state? of real concern is the crime surge. recently aided and a betted by local officials who in the name of humanity are protecting criminal illegal immigrants and as we reported, the mayor of oakland recently issued a warning that the fed's were coming. hundreds of criminals ran for cover and escaped. in november, california must elect a new governor and a new state attorney general. do not expect any change, far left democrats are locked in, government worker unions and family members both in lockstep with the left which

rewards them with fat pensions and benefits, unpayable. hollywood and silicon valley wouldn't be called dead voting republican and hispanics now out number white people in the state and they too are a permanent democrat voting block. in the immediate future, nothing changes. what a shame. california has to learn a harsh lesson. it's a one-party state and that party is making california the last place where middle america actually wants to live. the third hour of varney & company is about to begin. good morning, america. >> okay, you heard we're talking to judge steven bailey, he's a republican candidate for california attorney general, we're going to ask him what the devils going on with your state. all right, let's get to the market check that big board we're still down 300 points

lower, we're at 24, 300 and most of the dow 30 stocks are in the red they are down. very soon, we'll be joined by bob dahl, he's been called the trillion dollar man, big name market watcher and he's here with us on this big, very big day for your money. first though i want to talk about general electric. it's up today, the stock is up today, but its been beaten down recently. bob wright is here the former ge vice chair and he knows the company inside and out and welcome to the program very good to see you again, sir. >> thank you very much stuart and by the way you're probably going to have to sell your home in san francisco. stuart: sell my home in san francisco? i sold it actually in 1980, to be precise. and i thought i was a genius because i made a lot of money but anyway that's another story but you know ge. you were vice chair of the place do you think it can survive in

its current form? >> yes, i do. stuart: look the big problem at the moment sg e's unfunded pension liability, $29 billion. how do you do that? >> well, you know, that's a function a lot of that's a function of interest rates and interest rates have been very low and a result returns on pension funds have been much lower than anticipated. this is true at all companies it's true at towns and cities and that has put a big dent in many many pensions as interest rates go up, the reduction of that shortfall will be pretty dramatic. i don't think there's anything really to worry about, because the focus at ge right now is on cash flow, and john flannery, that's his highest priority is cash flow and you'll hear that first in any kind of earnings and things and growth is so

important but cash flow is. they had a very good cash flow in the fourth quarter. i expect you're going to keep seeing that all the way through 2018 and i'm not worried about them being able to catch up. liz: i don't know if you give market advice i suspect you don't but for all of our viewers who remember the hayday of general electric it was the ultimate company in america for a long time would you suggest that if you got a little cash you might want to put some into ge at $14 a share? >> well, i have certainly a lot of it at $14 a share. [laughter] so well you know, i don't know where ge goes down on this. i think they have very strong plans. the power business looks like it's on a fairly good resurgence that's a very big cash company when the market is high in terms of oil & gas. aviation they're the best in the world in what they do there and

medical they are very very large in medical especially in radio logical. i don't think any of those things are in any kind of trouble. they may not be at their peak although aircraft engine probably is. they are going to be major cash generators. he's already signaled $20 billion of sales of businesses that are profitable but not profitable enough. stuart: okay i've got to move on because as the former vice chair of ge, you know a lot about my next subject which is the present's tariff decision. do you approve or not? >> on the tariff? well you know, i think our president is a negotiator and i think he does things in ways that people aren't used to. he's put this out there now. you know, the market moves a couple 300 points that's only 1% and i think he's negotiating. he's negotiating not so much

with just the steel and aluminum people. he's negotiating with other countries saying, you know, we've got to step up on these discussions that we're trying to have with you, but we'll see. it's certainly a shock and for a lot of people, but he's done this before and its worked out very well. stuart: okay you're the founder of the suzanne wright foundation to help combat pancreatic cancer and i know you've been on the program for, yes put the hat on there, that's very good obviously everybody approves of what you're doing here with pancreatic cancer because the diagnosis is a death sentence and we know that and i know that you're working to get an advantaged health research agency. that's what you're pressuring the government for but i just have to ask. do you go to the apples and the microsofts of this world which have the technical expertise and mountains of cash. have you tapped them for support , with what you call the harper, this advanced health research agency?

>> this is a publicly funded agency and they will be able to be part of it by taking on a project or bringing a project to the agency and then they will be involved in it to the extent that they're willing. they all support it. i have lots of support from biotech companies in particular are the ones that we have a lot of support for, and i can show you something here that i believe you might even have it. it's a picture of this is in manchester, new hampshire at the va hospital and here is a man with bilateral military injuries who lost both his arms and he's getting fitted with a new prosthetic that's called the luke arm and the people in that are the people from the va and the people that designed and developed it. that came out of darpa, and it came out by the very person that

i am championing to run this. that was his project and they align themselves, this is a great thing. now dean cayman is one of america's foremost inventers is heavily involved in this and it brings together people you're going from the bench to the bed side here and with the information available from the n ih and the nci and the technical expertise that harper could bring, we could do a lot of biological medicine and biomechanics that would be so important. stuart: bob, please keep up the good fight. everybody is with you on this. everybody. >> well i'm going to see the president tonight and i'm going to remind him how well we're doing and some of his very strongest supporters in the health and human services are behind us. stuart: excellent. bob wright, always a pleasure having you on the show and you do great work, thanks for joining us appreciate it. >> thank you very much. stuart: i'm going to go through

some individual stocks which are moving a big sales drop american outdoor brands now has the parent of smith & wesson, a gun company demand for guns they say won't pick up for the next 12-18 months i've got to say i'm surprised at that with all this talk of gun control the stock is way down 3%. look at delta, the georgia senate approved a tax bill that punishes delta for cutting business ties with nra. the governor of georgia may or may not sign that bill, so that's kind of still up in the air. delta's down nearly 2% and the nor'easter now hitting the northeast with devastating winds , heavy rain and snow and severe flooding and the national weather service in boston calling this a life and death situation. you can see it right there. high wind warning and watch issued for parts of new jersey, new york, connecticut, all the way through tomorrow. massachusetts governor urging businesses in flood-prone areas to close parts of pennsylvania hit with heavy snow overnight

and according to flight aware, 2100 total flight cancellations in the u.s. so far just today. all right, and you heard my take at the top of the hour, a new study reveals california has the worst quality of life in the country. we'll talk to judge steven bailey he's a republican candidate for california attorney general. and benjamin netanyahu is set to visit the white house next week. very soon, we'll be joined by one of the six rabbis who attended president trump's inauguration. is the visit all about iran? we'll also be joined by the secretary of commerce and the trump administration,

stuart: happening right now, the president and first lady have arrived at charlotte douglas international airport, that of course is in charlotte, north carolina. shortly the president and first lady will exit from air force one. they will then proceed to the funeral of the reverend billy graham. now, this. uber teaming up to provide transportation for patients to and from medical appointments. you don't even have to have an uber app. reception receptionists or a staffer at the doctor's office can schedule a pickup in advance or on the spot that's new from uber. there's fallout over the tariffs sweden says it's delaying a $250 million investment plan to expand and modernize a plant in tennessee. the company says the tariffs could cause a pretty significant

increase in the price of steel on the u.s. market. the company will make a final decision when the white house formerly announces the plan. okay? and leland:s see now check the market please we're down 331 points as we speak, 24, 278. i want to bring in bob doll, he's now the nuveen asset management senior portfolio manager chief equity strategist used to be called the trillion dollar man because at one-time i believe you managed or oversaw a trillion dollars is that accurate? >> yes, sir. stuart: so you're a big hitter? >> [laughter] it's all in the eye of the beholder i think, stuart. stuart: i think you're a big hitter bob and that's a fact. on the screens right now the president and first lady just have arrived obviously at the charlotte north carolina airport they will meet and greet and then proceed to the funeral of the reverend billy graham. bob doll back to you. the market sell-off we're down

300 as we speak. is this all about tariffs? is that the reason for today and yesterday's decline? >> that's certainly the latest chapter stuart. remember we had a lack early in february related to concerns about rising interest rates and rising inflation and then we came back oh, so fast, it was too fast, we hadn't healed, and now we're selling off again and tariffs are the excuse sadly it's a legitimate excuse, tariff s are not good news for markets. stuart: are we on the way down some more? right now we're at 24, 200. can you see us breaking much further south? >> i think the lows of a few weeks ago on the s&p that was roughly 25.25 probably will hold this is a test of that pattern which is not a lot lower in down terms either stuart and then will bounce and see what the character of that looks like,

but we've got to get past this period. a tariff is a tax and while you're trying to protect somebody, you tend to hurt a bunch of other people and then you it site more from other countries so we're hoping the president backs off. stuart: do you think we'll ever get back any time in the near future to the glory days right after the election all the way through to january of this year when the market just about went straight up? we're going to get back to back -- >> on the rally a lot of good news during that period capped off by the tax cut bill which is good news for the economy for most americans and therefore for the markets. we've got to get past this period. look the economy has picked up stuart and you remember when the fed was our best friend, a lot of things were going well. the fed is not yet our enemy but they're moving in that direction when interest rates and inflation move up financial markets start doing less well. i still think we'll have an up year but nothing like last year. stuart: so the glory days are

not going to return that was the bread and butter of this program are you telling me that my ratings are going to go down now >> [laughter] you know volatile markets also cause high ratings and your expert coverage of it also adds stuart. stuart: you've learned a few lessons over the years flattery is the mother's milk of television well done bob dole. i'll call you the trillion dollar man again if you'd like. >> great to chat happy friday. stuart: see you again soon. and first off bitcoin where is it, 10, $789 a coin holding right around there for a few days actually. how about the price of gold? where is that in all this stock market turmoil we're up $15 today, $1320 per ounce and now this. we're going to put it on the screen he is the world's best car salesman and he recently broke a 44-year-old record. he will join us shortly.

p diddy is no longer the biggest money maker in hip hop. can you guess who took the top spot on forbes list of richest rappers? yes, the answer, next. hold on a second. check this out, please. an asteroid about the size of a bus approaching within 70,000 miles of earth. you can watch this asteroid on a live stream provided by the virtual telescope project. if you miss this one don't worry there's another one coming next week and that flyby will be about 870,000 miles from earth, march 7 is the date. it's coming up for you.

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stuart: yes, we asked before the break who is the wealthiest rapper of them all? and the answer? jay-z. he tops forbes list of the wealthiest hip hop artists he knocked out p diddy his net worth surged to $900 million in the past year due mainly to list investment in a champaign and co gnac maker. good call young man. a robotic virtual assistant heading into the international space station step aside alexa

and siri this is simon designed by the airbus company. it's a free-flying robot that can move around independently and it will be the first time that artificial intelligence will be used on the space station. the oldest, oh, i hate this. who in the world have been found on two 5,000 year old mummies in egypt and the tattoos are a wild bull and a sheep on the upper arm of a male mummy. an s-shaped motiff was found on the upper arm and shoulder of a female mummy. researchers believe the tattoos denoted bravery status and magical knowledge. >> why do you hate that? stuart: i don't like tattoos. liz: even on a 5,000 year old mummy? stuart: showing jimmy hendrix's fingerprints and signature when he was arrested for drug position is going up for auction next week arrested to sell for $15,000. next case, benjamin netanyahu

visiting the white house next week, we'll talk to the rabbi i want to know is bb coming to ask trump permission to bomb iran's base in syria, and we are of course monitoring your money, up next, wilbur ross, secretary of commerce the man behind the tariffs that have sent this market into a tailspin. last years' ad campaign was a success for choicehotels.com badda book. badda boom. this year, we're taking it up a notch. so in this commercial we see two travelers at a comfort inn with a glow around them, so people watching will be like, "wow, maybe i'll glow too if i book direct at choicehotels.com". who glows?

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stuart: all right we're still down almost 300 points, 24, 300 that is the level and i see plenty of red among the dow 30. scott red is with us, wells fargo senior global equity strategist. scott i know that you think the economy is strong you're bullish on the economy so explain why, we've got this great big sell-off, is it all tariffs is that it? >> stuart i don't think it is all tariffs. i think that's just what it is yesterday and today. i think really what it comes back to is is the fed going to make a mistake? are wages going to surge? is inflation going to surge so we think wages will be a little higher. we think inflation will be a little higher and we think the fed's going to go three times which i don't think would be a

mistake in 2018. we're looking for 2.9% gdp so i think we would have retested these levels. i mean we're battling the hundred day moving average today this is a trader's market. i think we would have tried this , you know, whether or not the president had announced potential tariffs yesterday. stuart: so for the benefit of our viewers who are sitting on some stock, they're not traders they are investors should they hang in there and maybe add some into their stock market portion of their investments? because if the economy is doing so well, and you only got what, three rate increases this market should go up again shouldn't it? >> well i agree with you stuart because our, we were in it for the long-haul here and what we've since february 2, since that employment report came out and average hourly earnings kind of triggered this stumble here, you know, we have told our clients that when the market trades like it has been, multi hundred points in the dow, you know, big point ranges in the

s&p 500 you want to be buying on these dips. our forward outlook is good. our clients have more cash than we would like them to have. they've been underinvested so we're looking for opportunities to step in in a market like this that's as volatile as this you do have to think a little bit like a trader. you need to say, where is there likely support? i would argue 125 day, 100 day, 200 day moving average so that's what we've been talking to our clients about. you know, we don't get all into technicals normally with them all the time but in this kind of market, you need to think like that and if you have a positive outlook going forward, you need to be in here buying some stocks stuart: do you like senator elizabeth warren? >> well, it depends, [laughter] stuart. stuart: oh, sorry i couldn't resist. >> [laughter] stuart: because she hates you and your company. >> i'm mum on that topic. stuart: i know you are and i shouldn't have asked you but i couldn't resist. scott wren, thank you very much.

>> have a good weekend stuart. thank you. stuart: i want to get back to the tariff question, the tariff issue and bring in the man whose idea it was, wilbur ross is with us he's the commerce secretary. wilbur welcome back to the program good to see you sir. >> good to be on again, thank you. stuart: so one of the criticisms was that these tariffs would raise the cost to american consumers. it would raise the cost of steel in the united states and we had exxon this morning saying that it would add $300 million extra to the cost of building the keystone pipeline. 300 million extra because of the tariffs that you proposed. what's your answer? >> well, my answer is several things. first of all, let's put it in perspective. i just bought a can of campbells soup today at the 7-eleven and it was $1.99 for the can. there's about $0.03 worth of 10

plate steel in this can so if it goes up 25%, that's a tiny fraction of one penny. that's not a noticeable thing. stuart: but the exxon keystone pipeline, $300 million, they came out and said that this morning. your tariffs, the president's tariffs had $300 million to it. that's huge. >> well it is huge but it's a huge project. it's a multi-billion dollar project and what they did, they bought a lot of their steel from india prior to the president putting in the buy america build america thing, so what they were doing was profiteering steel. that's something we're not going to tolerate because it costs american jobs. everybody talks about the price but what about the jobs? stuart: okay, the other

criticism, politico potential criticism is that you face retaliation from other countries and this morning, we had sweden 's electrolux, the biggest makers of alliances in europe, they pulled oregon delayed a $250 million investment in tennessee in the united states, because of those steel tariffs. they say it was simply raising the cost of steel in america. they've delayed the project. your answer? >> well, any time you get rid of dumped product, there will be a price increase. the question is what does it amount to? take a car. there's about one ton of steel in a car and if that goes up 25% from a 700 odd dollar base, that's under a couple of hundred dollars, that's around five-tenths of 1% of the price of a car. that's no big deal. so the people are exaggerating

it considerably but you've got to look at the job creation and the impact on american employees american employees have born the brunt of all the imported steel and aluminum that's been coming in. stuart: okay. >> so corporate america may complain. the president is taking up the banner of mr. and mrs. america. stuart: do you think the market therefore will come back from this, as a nasty sell-off down about 700 points right after the tariffs were announced. does the market come back? >> well sure. first of all it wasn't just the tariff announcement. you also have the sayings by federal reserve board chairman powell about more rapid rate increases than people had been anticipating before. you just had on someone who said he made things three increases before he was thinking two, so i

think you can't separate market action totally from other events as well, but whether the market went up or down, they took over $2 billion off the price of general motors. if i'm right, that it's under one-half of 1% difference in the price, is does that really justify all the $2 billion of market value loss? i think it's an interesting question. stuart: okay, wilbur ross you are the man of the hour thank you very much for being on the show we appreciate it. >> thank you, but remember think jobs. stuart: we always do and we shall. thank you, wilbur good to see you. thank you. stuart: markets still down 300 points by the way we're back at 24, 280. now, left on the side of your screen israel's prime minister benjamin netanyahu will visit the white house monday joining us now rabbi marvin haier. rabbi, iran is building a base

in syria. is prime minister benjamin netanyahu coming to america going to ask permission from president trump to knock that base out? >> well, it's an absolute possibility. both what is happening in iran and lebanon is an existential threat to the state of israel. for americans, what if we woke up one day and found out that like lebanon, cuba had 150,000 missiles what would be the reaction of the united states? that's how israelis feel they are threatened. it's a small country. lebanon is 300 miles from tel aviv and last week they said they're going to destroy tel aviv and surely that's going to be one of the points that prime minister raises with the president. stuart: the biggest topic of conversation i take it is israel , iran. iran is the focus of the conversation in the white house on monday correct?

>> absolutely. the iranians first of all they deny the holocaust. they hate jews. they are very anti-semetic and on top of that, they for example ,, they carry out demonstrations weekly and they say that we're coming, referring to tel aviv. now, the only good news is that the gulf states, including the saudis, are also holding up signs, so while the iranians are saying to the israelis "we're coming" the other arab states are telling the other arab world "we're leaving." we want no part of this. we've had enough of this. so i think that is the good news stuart: real fast, rabbi, president trump is a fine friend of israel and yet many american jews do not vote republican and certainly don't vote for president trump.

can you explain that? >> well, i think that many american jews from the depression, they remember f f f fdr and they remain loyal to the democratic party but i will say this. five presidents have said jerusalem is the capitol of israel. democrats and republicans but they didn't do anything about it donald trump said it and delivered and that makes, should make a big difference to jews all over the world. stuart: okay reverend rabbi marvin hier. thank you for joining us it's always a pleasure and we appreciate it. >> thank you. stuart: this is an unusual item here. miami's airport now using facial recognition technology on newly- arrived international passengers, to verify their identities. the technology was unveiled earlier this week. officials say its been able to screen as many as 10 passengers per minute. i hope it works.

liz: wow. stuart: and now this the man shortly to be on your screen right there, he is the world's best car salesman recently broke a 44 year world for number of cars sold in a year. he's going to try to sell me a chevy equinox, so i'm told. and you heard at the top of the hour new study revealing california has the worst quality of life in the country. next, we're going to be joined by judge steven bailey a republican candidate for california attorney general. >> ♪ ♪ today, the new new york is sparking innovation. you see it in the southern tier with companies that are developing powerful batteries that make everything from cell phones to rail cars more efficient. which helps improve every aspect of advanced rail technology. all with support from a highly-educated workforce and vocational job training.

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i'm nicole petallides with your fox business brief taking a look at jc penney which is down over 9% today the latest numbers were a disappointment for the quarter but also the company is announcing job cuts. the company is saying that it's cutting 360 jobs and it will also shuffle some of the leadership among the jobs, 130 office positions were eliminated in various departments. just the savings, the annual cost savings from all those changes will be between 20 million and 25 million. big picture, how straight of juan de fuca c penny doing? well, this year is up about 24% but over the last 52 weeks down 38%, and it had trouble competing and gave a forecast

that was below the analyst estimates and of course the latest sales numbers were also a disappointment.

stuart: california has the worst quality of life in the nation and now that's according to a u.s. news and world report ranking the best and worst states to live. the golden state came in dead last number 50 and ranked poorly in natural, social and

environmental categories and scored low in air quality pollution and came in second to last in terms of voter participation by the way california also has the highest poverty rate in the nation one of the worst income inequality rates, and there's been a recent crime surge. not good. coming judge steven bailey california attorney general candidate there for that job. judge, i think you've got a problem here. it's a one-party state. you are locked out. what are you going to do about this? >> well we're going to make a fundamental change here in california. we're going to talk to voters, message to voters whether they're republicans, democrats, or independent and we're going to convince california voters frankly we don't have to convince them. they already know that the crime rate is going up at double-digit s every year, that their negotiatings neighborhoods are less safe, their kids are

being victimized and their grandkids are at risk and we're simply telling them what they already know and we're going to make a change here in california and take us in a different direction in 2018. stuart: what can you do about the mayor of oakland, for example, who warned residents of that community, here come the fe ds. run for cover, if you're an in legal criminal alien run for cover. what can you do about that? >> well, you know, i don't want to make her a marter. a failed policy that protects only criminals and then we couch it as some type of sanctuary is ridiculous. the voters of california are fed up with this issue of sanctuary state. they are not supportive of sanctuaries. what they want are criminals off the street, alien criminals deported from our country. we're tired of being victimizeed by those who are violating the law in this state. we used to have some of the

toughest crime laws in the country and all you have to do is look at the type of policies that have been parameterred by the democrats in sacramento by this california attorney general whose worked hard to let criminals back on the streets to victimize our citizens. california voters are fed up with and they're ready for a change and we're going to take that message to california voter s and we're going to make the change in 2018. stuart: what do you think are the odds of you winning? i've got to say i think they're slim and none, that's the way i see it. are you going to give me a hard time? >> i am going to give you a hard time. let me tell you. crime is not a republican, democrat or independent issue. it affects us all and when you're on the street corner and the pimp is on your street corner trying to recruit your

kids, that has an impact. when you're a law abiding citizen whether you're document ed or not, and you see gang members and human traffic kers in your neighborhood you start looking around and saying these are failed policies we need to make change and they're going to make a change in 2018. stuart: all right judge steven bailey, the jury's out shall we put it like that but look thanks very much for joining us sir, we do appreciate it very much so. thank you sir. >> i appreciate it. thank you. stuart: yes, sir. check out jd.com, the rival all of alibaba. profit didn't measure up to what they were expecting that stock is down nearly 6% that's jd.com. jc penney, you might as well queue the organ music here. liz: yeah. stuart: sales not good. actually down and the stock is all the way down at $3.61 a share that is a loss of nearly 8 % as we speak.

next, we have the world's best car salesman. he broke a 44 year record and he's next. can he sell me a car? before we go, check out the big board now we're down 200 off the lows of the day. we'll be back. >> ♪ ♪

stuart: i love the media, they n ab that composite index however a lot of technology companies has rebounded it's on the upside a 12-point gain the dow industrials are no longer down 300 the dow nearly 200 and our next guest wrote a 44-year-old record when he sold 1582 cars in one year, last year. ali radar known as the best car salesman joins us now, already you don't have much time let's get straight at it if i walk into your office and sit opposite you i want to buy a car what's the first thing you say to me? >> well thank you, stuart first thank you for having me on your show i'm very grateful to be

here, and we'd be sitting down just kind of getting the big picture finding out what's important to you, what's not important to you, finding out your budget and we'll match the right vehicle for you. stuart: now you tell, you say that the 2018 equinox, the chevy equinox, you said that that is your best seller. if i give you 30 seconds right now, sell it to me. >> well right now, it's a brand new sleek design. we have a great gas mileage on it you're in the high 30s, new technology, so it's offering a lot of great features that's very beneficial for the consumer today. stuart: that is not a very dynamic approach, sir. >> [laughter] well we need to make sure what the right vehicle for you is so we're asking a bunch of questions when somebody comes into find out what's important to them and what's not important to them as far as budget and -- stuart: you start with the price right? that's what you do is start with the price? >> well not necessarily it's not

always about price. you know, this business has turned into a people business and we as salesmen are nor advisors now than we have been and for us to put you in the right vehicle is more important than anything. stuart: no, more important than anything is that you make the sale. >> not necessarily any more. yeah, that's not the approach any more, so sometimes not selling you the car may be the right thing to do. stuart: wait a second wait a second. you wait a second. come on. you can't fool me. >> it's true. stuart: wait a second. >> nope. it's a true statement. stuart: i know for a fact that the guy whose record you beat is very angry about it. you were chasing the record. you're not going to turn down a sale because you think it's the wrong car for this particular customer. you're not going to do that. >> stuart that is a true statement. yes we will. we are advisors and the record was not won here.

that record was 17 years in the making and that's something that we didn't set out to do but something that happened and we're very proud of it but you know we're more advisors. i'm here to solve automotive needs, not create new ones for you. stuart: okay. >> not create new problems. stuart: look congratulations on breaking the record that is an astonishing record to break and if ever i'm in your area i'll come in and see if i can pick up a chevy equinox. >> you're always welcome. stuart: thanks very much. >> appreciate it. stuart: there will be more varney for you after this. >> ♪ ♪ more and more people are finding themselves in a chevrolet for the first time. trying something new can be exciting. empowering. downright exhilarating. see for yourself why chevrolet is the most awarded and fastest growing brand, the last four years overall. switch into a new chevy now.

current qualified competitive owners and lessees can get this 2018 chevy equinox for around $199 a month. chevrolet. find new roads. :

. stuart: well, what do you say, liz? i'm going to put you on the spot. >> yeah, you are. stuart: we were down 330, now down 170. what are the odds that we close higher? >> you are really doing that on a friday? you stinker!

>> obviously. >> slightly to the downside. slight to the downside. stuart: that's a great hitch. >> it's a great buying opportunity. stuart: really? >> absolutely. i love microsoft, apple and facebook. >> and this nor'easter whatever up to the call it and, of course, the west coast dealing with the storm as well. so many storms, so little time. get the read an economic one. adam shapiro with the latest in washington. adam? reporter: we're all talking about the tariffs that the president intends to impose next week on steel and aluminum. 25% for imported steel. 10% for imported aluminum. the president has been tweeting and said among other things -- so senator orrin hatch is