>> to your point, all the people who are worried about the impact of the tariffs on the economy, all they have to do is step back and let it happen and watch this country crater. people keep tweeting at me what if we only use and consume what we make in this country? okay. all of a sudden that's called the great depression. >> yeah, we'll watch the implications. the big outcry. thank you, everybody. have a great day. "varney & company" and, stuart, take it away. stuart: thank you indeed. welcome to a brand-new week. let's get right at it. the president plays hardball on trade. he threatens an import tax on cars coming here from europe, and his top trade guy says no country gets an exemption from steel import taxes. if this is the president's opening position, it's a tough one and there is very strong opposition to it. the wall street journal says the reaction in europe is consternation. well, europe's elites are in consternation

themselves. angela merkel, she's struggling to lead a weakened coalition in germany. the centrist parties, which created european socialism, are in retreat. over there, the turmoil rolls on. over here, yes, another politicized oscars, despite a sexual misconduct scandal of historic propositions and the worst box office in generations, assume that we all share their anti-trump politics. and best picture went to shape of water, a no doubt artistic creation about a woman who has sex with a fishman. "varney & company" is about to begin. ♪ ♪ >> he was born in mexico and raised in kenya. let the tweet storm from the

president's toilet begin. >> we don't make films like call me by your name for money. we make them to upset mike pence. >> to all the dreamers out there, we stand with you. >> but tonight's documentary show us where there's darkness, there is also hope. except at the white house. hope quit on wednesday. stuart: oh, my. that was so funny, wasn't it? jimmy kimmel introduced the oscars as a night of positivity. it still got political, as you can see. he took shots at president trump and vice president pence. you could see it all. we'll have a bit more on this. how about futures market? it's monday morning. where are we going to start this monday? at a significant drop last week. well, we're going to be down over 100 points right at the get go. now, i want to move on to trade because that's part of the stock market decline. specifically, a tweet arriving this morning from president trump. here it is. tariffs on steel and aluminum will only come off if new and fair nafta agreement is

signed. also, canada must treat our farmers much better. highly restrictive. mexico must do much more on stopping drugs from pouring into the u.s. macintosh with us, a club for growth guy. david, i read that tweet, and it sounds to me like the tariffs that the president has announced are just the opening gambet, a very hardball position to take right up front, which will probably change later. is that your reading? >> i certainly hope it's a negotiating position and not a real policy. imposing those types of tariff taxes on americans punishes americans and frankly it doesn't give us much real leverage with those other countries. they'll just impose tariffs on our goods, and we'll end up with fewer goods, higher cost of goods, and as somebody pointed out on maria's show, could lead to the next great depression. i don't think the president wants that. he's done a great job of leading for growth with his tax cuts. and should ignore these

advisers kind of protectionist jihad committee over at commerce and ustr and say, no, we're going to focus on trade. better trade agreements are good. i'm glad he wants to do it. but this is a blunt instrument that will hurt americans more than it will hurt anybody overseas. stuart: well, if there is general agreement that america has been dumped on with cheap subsidized steel, for example, and or aluminum, what's the solution? if we don't impose a hardball tariff right up front, what's the solution to this dumping problem? i mean, it has been around for years. >> and the statistics show canada and mexico, they're just making less expensive. they're not dumping. they can make steel cheaper than we can. but china has been dumping. they're only 2% of the steel production. so a better course would be let's just focus on china and what we really don't like about china is they steal our intellectual property. so maybe put a 75% tariff.

my friend has been suggesting that and focus on china and negotiate a better deal with them. stuart: but isn't it a heads-up from the president? look, we're going to rearrange trade across the board because we don't think it's practiced in our interest. therefore, here's a warning shot across the bows. get onboard, fellas because we're going to change things. >> that's what he's going to do. but the problem is he had bad advice and what he's tossing across the bow hurts us way more than it hurts them. and they know that and won't negotiate. stuart: okay. well, it's there. it looks like it's staying there, at least for the foreseeable future. do you think we're going to have a depression? is that your reading? >> so i think we'll get away from this. the president's really wise about this in the end. may have tossed it out there. but i don't believe he wants to hurt the automakers in kentucky and tennessee and michigan, and they're the ones who will get hurt by that

steel tariff. he's a good man. i think we'll get back to realization. we need this trade. among other things, they don't count the services. you know, stuart, they talk about all of these imbalances. you and i get our haircuts, and we have a imbalance with our barber. we give him a lot of money, and he doesn't give us anything back. but we're very happy to do it because we like the way he cuts our hair. and those types of services happen all over the world, and we're actually a winner in that type of trade. stuart: okay. i'll try to include the haircut analogy in any analysis we had in our situation here. david, thank you very much for joining us this morning. >> great to be with you? stuart: yes, sir. joining us now is a market watcher. now, if i'm right, jack, inning i think you believe that the president will eventually back down and back away from these steel and aluminum tariffs; right? >> yeah. i think so. i think it's an opening sell, though. we are in the heat of the nafta negotiations. this has been going on now since 2017.

i think we're in round six or seven of those agreements, so i think that, you know, just throwing a out there saying he's watching and he's not going to let negotiators get away with whatever he believes that they're going to get away with. so, yeah, i think certainly he's watching this market reaction, but i think more or less it was an opening salveo. stuart: and what happens if it's not an opening salvo? does that pose a real danger for america's economy and our stock market? >> absolutely. i think it poses a real risk to the global economy. you could argue cost americans 6 million manufacturing jobs. but globally, we took 2 billion people out of abject poverty and moved them into the middle class. now, that's great for the global economy. not so great for

manufacturing. but we have to keep in mind, stuart, that america, germany, and france have the highest labor costs in the world. and so shifting production around to where it is most economically produced, generally improves productivity globally and brings inflation down. stuart: last one, jack. you're a market watcher. would you be inclined to buy into this stock market at this point if you thought that it was not just an opening salvo that we are on the verge of a serious trade war? >> not only would i not buy in, i would probably lighten up positions and reduce risk. so i did as an outlook for 2018 say there are a lot of great things going on. there are a couple of risks out there and one, of course, could be a risk that would upset this car. uart: we do hear y, and we

thank you very much for being with us. thk you, sir. >>hank you, sart,. stuart: we've got a whopping, great, big deal in the insurance business to tell you about, and i mean it is a big deal. they want to buy bermuda-based company xl. it's up 30% on the offer. and offered qualcomm to put off the annual shareholder meeting. liz, why? liz: interesting back story. qualcomm reportedly said to the u.s. government step in here, referee it, slow down the merger. we don't like this offer from singapore-based. we want to buy nxp semiconductor instead. qualcomm does a lot of secret work for the government. it's big in 5g for internet of things, robot cars. and now it could go even more hostile than it has to try to buy qualcomm. stuart: and they want the

american government to be a referee of whether a singapore company can take one of our big companies. liz: that's right. qualcomm going to a shareholder meeting tomorrow. now it's being held for 30 days. stuart: all right, liz, thank you very much, indeed. about a quarter of a million people are without power. and, by the way, liz is going to be a weather forecaster. liz: jihad janice dean, tomorrow. off the coast of carolinas, a heavy snow storm or heavy rain. same time type of precipitation. not sure about the wind speed. be careful about that. nine people now have passed away and were killed due to the recent nor easter that stretched from virginia to maine. most got hit by falling trees or tree branches or utility poles. stuart: we do hear you, liz. even if you don't want to. thank you very much, indeed. got to check futures because it's monday morning. we're opening up a brand-new week, and we're going to be down at the opening bell.

about 160 points lower. it's going to carry us well, well below the 25,000 mark. we'll be about 24 and change 20 minutes from now. we have an amazon story for you. we always do. the journal says amazon's in talks with some big banks. they want to build a new checking account product. how about that? amazon getting into banking. more on that coming up. convicted lyric chelsea manning invited to give a speech at ucla, the topic? ethics. judge napolitano's fired up about that one, and he'll be on the show later this hour. and president trump meets with netanyahu. the big topic. a possible military conflict with the military of iran. more varney after this to energy infrastructure mlps? to energy think again. it's time to shake up your lineup. the alerian mlp etf can diversify your equity portfolio and add potential income.

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. stuart: we open up this monday morning on wall street with a loss of over 100 points for the dow industrials. that's 15 minutes from now. amazon, they're going to get into checking accounts. okay. that's the story of the

day. what's this about? liz: watch out, banks. now wall street journal saying amazon is in talks, preliminary talks with banks like jp morgan chase to offer checking accounts to millennials who don't have bank accounts. so that's who the target audience could be. interesting data point. amazon's market value is now bigger than jp morgan and bank of america combined. so, you know, now they've got the big gorilla coming into its space and watch this. mckenzie is already saying companies like amazon that do payment on their internet streams and on their tech platforms will eat up 40% of banking revenues risk for the next seven years from companies like amazon. that's what mckenzie is saying. so now here comes amazon into banking. stuart: and amazon doesn't have all those expensive branches like ordinary banks do. liz: that's right. stuart: thanks, lizzie. prime minister netanyahu visits the white house today. john bolton is with us.

former ambassador to the united nations. mr. ambassador, isn't this all about a possible military confrontation with iran? and the discussion between the two leaders is really about asking for permission to go after iran. isn't that it? >> well, i wish that were it. certainly iran poses the greatest threat to peace and security in the middle east. not just israel but the arab states, the oil-producing monarchy and others. and i think iran has benefited enormously from the defeat of the isis territorial caliphate. and i think it's been continuing its quest for nuclear weapons, cooperating with north korea, among other things. and i think it's the danger to israel, particularly, was highlighted about two weeks ago when that iranian drone crossed over israeli airspace. so that certainly is something to talk about. but, look, there's a lot of turmoil in the middle east. the terrorist threat continues. you've got to deal with russia

at its highest level of influence in the region since the 1970s. there are a lot of things to be worried about. stuart: but the iran's of this world. haven't they lost a lot of their leverage? because the price of oil is 60 bucks a barrel and american frackers basically control what the price is going to be on the world market. they don't have the money any longer. we have leverage now, don't we. >> well, we have some. but even at $60 a barrel, it's still generates a lot of revenue for iran and particularly the interest of countries like china, which are prepared to invest very heavily in the oil infrastructure, which has been neglected over the past several years. i think iran's got plenty of money to make mischief to continue to be the world central banker of international terrorism. and they continue to pursue nuclear weapons and ballistic missiles, which it's doing. i think, obviously, had a deal with the iran nuclear deal is going to be a centerpiece of this.

but i don't think at this point iran is anywhere like in a defensive posture. i think to the contrary continues to pose a real threat, a growing threat. stuart: tell me about the european elections. because in germany, angela merkel struggling to preserve a stable centrist coalition. and the elections in italy antiestablishment parties won big. they took almost half the vote. i put it to you, john. that essentially the parties which created european socialism are falling apart. they're moving to the sidelines. it's the antiestablishment people that are moving in, and that spells real change for europe, doesn't it? >> well, potentially. i think some of the parties of the center right are in trouble too. i think despite merkel's success in finally getting a coalition with the socialist approved again, i'm not sure it's not a mistake for both parts of the coalition. i think the socialists will suffer from this. i think they'll votes will move left, and i'm not sure the christian democratic party necessarily has benefited from this over the long-term. mechanical maybe benefited but not the christian democrats. and in italy, you know, you

look at the socialist party share the vote, it's a center left party as these things go. it's under 20%. and the five star movement center right coalition close to 70% of the vote overall. i mean, it's a phenomenal change. italy's now going to have difficulty putting a coalition together. but i tell you, it's not just due to immigrants. i think there's real problems for the european union lying ahead, not just britain's exit. i think the internal problems they've had remain unresolved, and i think a lot of this in central and eastern europe, in particular, has less to do with immigration than distrust of power being concentrated in brussels. stuart: but that chaos over there gives us leverage over here, that would be my point. on trade, for example. john, i'm terribly sorry. i'm ou out of time. you know how it is. john bolton, thank you. >> thank you. stuart: some residents of chicago not happy about president obama's plans for lavish presidential library on the city's south side.

the community turning on the community organizer. more on that in a moment to most, he's phil mickelson pro golfer.

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no. make that the password: "you_stillóhave_toóvisit_us." that's a good one. seems a bit long, but okay... set a memorable wifi password with xfinity my account. one more way comcast is working to fit into your life, not the other way around. retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across mtiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. . stuart: it's a huge project. it's the obama library project, and it's in jackson park, illinois. it's drawing a lot of concern

from local community organizers. bottom line here is organizers are opposing the community organizing in chief. isn't that right, james freeman where, wall street journal guy. >> yeah. it's kind of ironic. remember when barack obama ran in 2008. a lot of people said what is a community organizer? what does a community organizer do? and he actually did not get a whole lot done as a community organizer, but he kind of persuaded people that this was a real job. and now he's kind of questioning that job. he's arguing with community organizers in chicago. stuart: so he wants to move into this area of chicago, put down his whopping, great, big library. and the locals are saying are going to use local labor? and what did he say to that? >> he's not going to promise anything. they wanted him to sign an agreement that you promise you're going to build local housing and you promise a lot of the work is going to go to

the people in the neighborhood. they want to make sure it helps people already in that neighborhood, and he's unwilling to make that kind of commitment because he's saying, well, you know, you say you're doing that and then all of a sudden all of these organizations come out of the woodwork. liz: here's a direct quote. he said i was a community organizer. i know the neighborhood. i know the minute you start saying, well, we're thinking about signing something that will determine who's getting jobs and contracts and this and that. next thing i know, i have 20 organizations coming out of the woodwork. that's what he said. are you going to help local poor people and the working class to help work on your library. that was the response. >> so despite highs background, he seems to be saying he doesn't think much o of the community work organizer. i think that was a reasonable interpretation of his comment. but the irony here is amazing. it's going over a historic park. now, he has agreed not to destroy another park with a above ground garage that he had planned, but the main part of the center is still covering a park in the national register of historic

places. so quite a change. stuart: keep on coming back and reporting this chicago story for us. james, you're all right. by the way, we're going to be down about 150 points at the opening bell this morning. that is four minutes from now. we'll be back

that bell will ring in ten seconds time we closed on friday afternoon at 24 500 pretty bad week for the dow. we're going to open this morning, on the downside again, probably about 150 points. here we go it is 9:30 we're up. we're running down 82. we're down 82 points and the very very, very early going. most of the stocks had have opened the dow stock are in the red. i only see a couple of winners there. and now we're down 140 points. that takes us back to 24, 00 so 203 points away from the dow high for the dow industrial a half a percentage point and what's the loss there s&p. same story down about half a percentage point. now the nasdaq what's happening there? same story exactly. down nearly a half percentage point. so we've got a similar loss all across the board. now we've got the tenure

treasury yielding 2.585% a new feature on the show throughout the fox business network. on the bomb of your screens you'll be able to read two year and tenure treasury yield important interest rate indicators. amazon story of the die is this, "the wall street journals" amazon is talking about launching a checking account product. yeah they're get into banking by looks of it physical united airlines replacing employee bonuses that's a quarterly performance bonuses with a lottery. don't think that's going to be popular. but we shall see. who's with me on a monday morning we will elizabeth mcdonald there and james is with us, of scott martin as wel. scott we're down 99 points. as of right now, is this all about the tariff and trade story? >> yeah. it's uncertainty stuart. you know, i think trump is making some fair points with respect to our importing and exporting that say nasa partners

have to us when you look at canada, you look at mechanics and how much they export to united states it is tcially unbalanced. but when you think attacking sof the these trade deals and coming outright and saying we're going to blow these up or tear them apart they make markets get nervous as you've talked about it so far in the show it is not that easy to produce all of the things that we import in the united states it's not that cost effective so we do need to bring that stuff many. so that's a process that's going to immediate to take place over many, many years if we're going to indeed go that rout so until we figure out what exactly the president wants to do here, the marketings are going to sell off. >> james freeman a danger for tat here and expand tariffs against european cars coming here if they put tariffs on our stuff going there. tip -- >> very dangerous and could go a long way. the initial read is -- and blue jean and tariff or restrictions in europe but it could go yongd that.

we've seen the european commission doesn't mean a whole lot of excuse to start attacking american companies we've seen that even before this -- technology financial services, they forced ireland to raise apple tax bill so this is heading in very bad direction. ting that explains a lot of market they doapght like it. >> okay the amazon story of the day, it's another big one. tear talking with banks about launching a checking account product. tell me more about it. >> it directed at young millennial who is don't have bank accounts. so the journal reporting they're in talks with morgan chase and other banks who were just talking approvesly about how amazon majority value is now bigger than jp morgan chase and bank much america combine sod we already know that mckin subsidy is saying watch out big banks amazon and other tech platforms that do payments on platforms could eat up 40% of your revenue in 7 years time. [laughter] >> yeah that would hurt. all right there's another amazon story. they're not going to stock new products of --

google's nest -- a nest in response will stop selling through amazon altogether. remember, nest makes these thermostat and security cameras all connected to wi-fi home security system is basically what it is. all connected to your phone -- scott, it looks like, though, the titans amazon, google, they're on each other's territory now. and they're battling out. >> yeah. you know the world is getting i guess a little bit smaller for some of the big guy qhas you're see is you're seeing in some respect google protect their productses because they don't want them sold there and vice versa so each company continues to grow they're going to step on each other's toe but i'm guessing won't impact the sales too bad ily. >> won't i can't get the system to work. another story -- almost took hammer to it this weekend. i still can't -- [laughter] that just me. funny check the big board down 100 points. been some volatility it this morning down 150 then we were

down 90 now down 109 we're on the downside, though, in early going on a monday morning. how about -- boeing -- had gone straight up for many, many month. now down again this is one of the big degreeses on the dow it is off a 5.339. wal-mart launching line of meal kits. blue apron they make meal kits, down on that news wal-mart still only at $88 a share down $20 from the high in january. big tech names, what are they only one of theming them on upside facebook also -- is virtually flat at 176 alphabet at 10.78 microsoft 92. amazon 14.92 now snap they might release -- new versions of those spectacles soon. they are sunglasses, with built-in camera ares. you can take short videos with them and send them through snapchat. the market is not impressed

snapchat is down. united airlines they're replacing quarterly performance bonuses this is not bonuses connected to tax cut the is it corporate performance bonuses replacing them? with a lottery -- why would they do that? >> you know workers are really mad about this. they're saying hey wait a second our competitor jetblue, southwest airlines american airlines alaska air they do quarterly bonuses why with a lottery to chance to may not win that lottery so get nothing. so you know, got to watch it with this. because they could toward other airlines. >> james, they want to limit how much is going out to their employees. if you have a lottery i would say just for example a million dollar prize. then you've got to -- an outflow of million opposed to ten of millions you're giving bonuses. >> it's minding you would think octave how do we retain great

employees and -- allow the not so great employees to leave and this seems to go in the opposite direction. i can't imagine someone who is their top performer really wants and now it is based on luck. >> what do you think scott is this a good idea? >> a terrible idea if you talked about tax cuts breaks that some of the airlines got united never handed one out. american, alaska, southwest they gave bonuses to employees because tax cuts united didn't do that and come out to pull this lottery stuff. it's unbleeivelg. >> okay i have one more airline story for you. only 13 delta passengers bought tickets with that nra discount. georgia state lawmakers they've removed a $40 million tax break for delta after they dropped that nra discount so people those few people 150e78s to me -- am i right in this 13 people cost delta $40 million worth of

tax breaks is that right? >> really why should they have gotten the break it was basically an exception to the sales tax -- i hope what georgia is going to do is get rid of that exception and lower the rate for everybody. there's no reason that -- particular type of fuel or particular business like airlines should get exception exemption companies don't get. >> pay attention to bottom rngd corner of the screen now down a mere 8 l 7 points after eight minutes of by. senate preparing to scale back the sweeping banking regulations passed after the financial crisis. this will allow i think banks -- what -- what do you make this have? some of the shackles coming off community and regional banks i think it's a wonderful thing. senator warren thinks it is terrible. fnlings i think essential good news for regional banks that -- we're not going to apply this -- too big to fail regulatory model

to -- large universe companies but now it is much bigger but i think that model still has to go but what it has given us is a lot of regulation. a lot of compliance cost but still the same problem we had going into '08 where -- in worse in the sense where it used to be implied now it is accident police sit and lots of bad decisions from that. >> the joke in the sector was that government really does create jobs. and having to deal request government in terms of come compliance in the like you wonder now with the cap off a of this with the government out of this, is it going to see a lot of m and a deals among small or players in banking sector. >> i wonder if it will be any easier to get a mortgage off of these banks bauds getting mortgage these days is absolutely murder. >> a nightmare awful such. unfortunately it is that time i have to say thank you very much indeed james and you scott. good stuff indeed the dow jones

industrial average has come back nicely now we're up 60 points. 59 points okay -- so we've got the loss in half. if you're thinking about buying a new apple laptop. you might want to wait, new reports that apple is getting ready to launch some new cheaper mac books. we'll have details, of course, for you. dozens of states considering to let authorities take guns away from people deemed mentally infit for them pam bondi coming up next on that.

>> yeah we have with come back now we're down 70 points, 24,476 open now 100 now down 7 it. look at netflix, they did hit an all-time high. another one, they're introducing

new parents control features. that's not affecting the stock which has been over $300 a share. apple preparing to release a cheaper macbook there's a headline for you chopper macbook tell me about it please. >> analyst say if it is true more affordable macbook would push up sales of this 10 to 15% so this could be some good news. this is according to a very reliable analyst from kgi security that a new cheap or macbook air could be on the way. the cheapest one is 13 inches could be of a similar style or maybe it will be a complete resign. they do believe that it will have upgraded internal hardware. it will lukely come out in the second quarter of 2018. but it's not the only thing. macbook has doubled some of it and upgraded things to $5,000 but this will be on lower end and could boost sales and air pods about that in big demand. back to you. >> thank you nicole. outdoor apparel company rei,

they're cutting all ties with the ammunition maker mr. mr. outdoors i didn't know they have ties. >> 50 brands it's big and sporting goods or outdoor sporting -- you know, afnghts. and more than half 54% of its revenues of vista revenue come from shooting afnghts. so rei said what is your statement after park land this did not have a statement on clear plan of action what it was going to do in light of the parkland shoot. rei has cut off vista outdoors. >> we understand that got it. gun control legislation -- what is florida doing i'm talking policy wise here what are they actually done after the deadly shooting last month? florida attorney general pam bondi joins us now. ma'am, attorney general, can you tell us exactly what florida has done? know what you're debating not what you're taking about what concrete action has been taken? >> well it's in the process of being taken stuart. it is on the floor of the senate

today at 10:00. and then it will be in the house for final passage either tuesday or wednesday. so we're in the very final stages and what that bill includes is governor scott, rick scott has become a champion of this. he brought all fives together in a time of crisis it's about finding common ground that's what governor scott has done so a comprehensive package $450 million and speaker and a corcoran and they support this and it has been a great act of everyone coming to the $450 million. what it does is it providing school security tone sure that every school in florida is much safer infrastructure, everything that question need to keep our schools safe, it's beginning to provide law enforcement officers for every thousand students a school resource officer and thafsz something that was lacking in our state as well as mental health. which is huge it has a gun

violence restraining order in there that it raising age of purchasing an assault rifle to 21, and it's ban withing bump stocks. >> okay that's a comprehensive approach. i got it that's what you've about to do that. now, there are 24 states that are pushing bills that would allow for guns to be taken away from people who are judged mentally unfit. now, i don't know whether florida is one of those states but what do you think about that kind of move? >> well, here, here's what we're doing in florida buzz we have of to due process, of course. for those who have been civilly committed, and my done legal research here's what our proposal is in florida called gun violence restrange order called a baker or act. what will happen is law enforcement can and should automatically remove any firearm because that shows you're a danger to yourself or others. when you're civilly committed, then after someone is released from civil commitment, law

enforcement will have 72 hours to take, to go before a judge and ask the judge if they choose to hold those guns even longer if they feel that the person is again, a threat to themselves or to others. >> okay. you ever been in the room in the white house when the president was having an open free for all both sides of the aisle involved. i think this is my opinion now, i think that has made a significant difference in the gun debate. and you were in the room. >> i was stuart and you know i was also in the room for a very private meeting recently that the president had with -- with families from texas from sandy hook from, of course, o parkland, and he truly cares. and again this is about finding common ground that's why nothing ever gets done in congress in my opinion. people are so polarized to one side or the other and, you know, we experienced a traumatic

school shooting in physical and it is piepgding common ground something that both sides can agree on, and president trump has been just amazing listening to these families, and really being a mediator i think with congress and hopefully congress will follow florida's lead an what governor scott has been doing here in florida. all of a us working so quell together. >> and pam bondi of the state of florida thank you for beings with us. >> thank you, stuart. >> sure thing. check that market -- we're down, not quite as much as we were -- and most of the dow 30 are in the red. they're on the downside. but the dow at this moment is down, 92 points. new plan to fight opioids and the epidemic thereof lawmakers in kentucky want to start taxing sale of opioid pills, 25 cents for every dose every fill sold. i think every peel pill. 25% a pill. we'll have more on that after this.

>> we're down just over 100 points 24,422 on the dow as we speak. deutsche bank upgraded the beverage monster and beverage is up nearly 3% on an otherwise down day. now this -- the state of kentucky pushing

the idea of an opioid tax. all rise napolitano is here. now it's a tax of 25 cents per dose. i know that's not per pill but whatever those -- >> per dose could be one, would be 50 in there. it's -- it's knew mareically nothing. i don't know how the politicians can can try to inject themselves between patient and physician. every physician in the country who now could bear personal liability for overprescription and that liability can be civil and criminal. certainly is aware of the consequences of overprescribing opioids why do they need the politicians to come in between them and what is 25 cents per dose will raise for the state? >> nothing. nothing but are you tell ling me if someone goes to the doctor you're o in pain and doctor prescribes open yoidz you get addicted to those opioids, you can sue the doctor can you do

that? >> peenged what the doctor knew. for, you call up and give me opioids he's liable for that or she is liable for that they immediate to examine you prnlly and be familiar request with your medical history. whether you have addictive personality, whether you've been -- hooked on these things in the past. before they can lily nilly prescribe them and depend on harm to you and recklessness of the physician it can be criminal as well as civil. and the government entering this patient physician relationship even though this is a minuscule amount so small like they're not even there. i don't know why they're doing it will not make it better but worse. >> seems to me that the death in the opioid crisis are often not the result of overuse of opioids themselves. but the injection of fentanyl into those products. >> or the use of other drugs after the opioid prescription runs out because they're hook.

stuart is, we had a chief justice of the supreme court of the united states -- who was hooked on painkillers. no longer living -- and was actually stopped for dui, he wasn't drunk. he had just taken one too many when he left to virginia that began the public about 15 year ago now that began the public awareness of this crisis. >> what a mess. i -- i need your comment on chelsea manning convicted leakerrer she's going to give a lecture on ethics at ucla. your thoughts on that. >> she's according to her pr people is going to say what are you doing when you have two oaths, one to keep documents secret, the other to preserve protect and defense the constitution which the secrecy is assaulting. and she's basically going to argue that i have no problem with it and i look forward to hearing what she's going to say. sometimes people who have committed crime are the best people to explain what goes through the brain as you

rationalize your behavior. >> interesting, though, isn't it that lecturing on ethics. >> look at this offer to grave danger to america -- >> yes. but look at this fellow jordan who talks to you and us all of the time about how easy it is to break the law on wall street this is the wolf -- person about the wolf of wall street was based on with great insight. >> you approve of chelsea manning giving ethics legture. if i could be there i would prove. i prove of her expressing opinion but not of the obvious contradiction between lecturing on ethics and leaking dangerous information to -- >> highly unlikely judge. but you never know. thank you, judge. lawmaker it is in high tax blue state basically, california, and new york, north new jersey no ce but to lower -- wait a minute, wait a minute i don't know who wrote that. but that's not right. i'm going to be talking in a moment about democrats in high tax states on what they're doing

to protect the rich. we'll be back. hey, what are you guys doing here? we're voya. we stay with you to and through retirement. so you'll still be here to help me make smart choices? well, with your finances that is. we had nothing to do with that tie. voya. helping you to and through retirement. . . . .

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you'll be bathing in savings! tripadvisor. check the latest reviews and lowest prices. stuart: what's this? democrats trying to help the 1%? the left having bashed the rich for donkey's years, and turns around and defends them? what? yes it is true. this does require some explanation. democrats in california and new jersey want to convert state and local taxes into charitable contributions. there is a switch. under the new tax law, local taxes are not fully deductible. so in high-taxed states like california and new jersey the 1% will be paying a whole lot more. the democrats take one look at that, instantly realize they have got a problem because the rich can move and take their money with them. it has happened before. in maryland, the state imposed a millionaire's tax.

many of those millionaires promptly left. maryland lost money. it is not that democrats suddenly love the 1%, oh, no. it is their money they want and need. california gets almost half of its income tax revenue from its high-income earners. even a few of them leave, california takes a huge financial hit. where would they go? how about nevada? no state income tax there. or new jersey and new york residents, how about florida and texas? no state income taxes there either. this is, what worries the democrats who have been running high-taxed states for years. the exodus of the rich. their answer to the problem, surely will not fly. the irs is highly unlikely to allow a tax to be converted into a charitable gift. ain't going to happen. bottom line? high-taxed states are stuck. they have one option. cut their own taxes and they will never, ever, do that. the exodus of the 1% has already

started. looks like will become a stampede. the second hour of "varney & company" is about to begin. ♪ stuart: now we're back down 129 points on the dow industrials, just above the 24,000 mark. we were expecting numbers on the service sector to be released at 10:00 eastern time. think they're two minutes late. have we the number? liz: 59.5. better than expected. 97 straight months were the service sector powering ahead, a slight hiccup late in the year last year. this is retail food services, health care services and the like, powering ahead again. stuart: big positive number. liz: that's right. stuart: service sector doing fine, very much indeed. the dow was down 125. now we're down 118 no immediate

impact i can see. big tech names only one is up facebook. amazon, alphabet, microsoft, apple, all on the downside. netflix that reached a all-time high earlier, it is there now. $301.50 a share. they have introduced parental controls for certain movies and series. that is not what is boosting the stock which is 301.40. blue apron sliding on news walmart plans a meal kit subscription service, direct counterpart to blue apron which is down 3%. we'll have more on the meal kits in just a moment. president trump seems to be playing hardball on tariffs. we have this tweet from him this morning. there were several, but we picked on this one. tariffs on steel and aluminum will only come off if new and fair nafta agreement is signed. also, canada treat our farmers much better.

highly restrictive. mexico us do much more on stopping drugs from pouring into the united states. keith fitz with us money map chief investment strategist. first of all that tweet from the president looked to me like it was confirmation that his opening salvo on steel and aluminum tariffs was an opening bargaining chip. could be changed in the future depending how the negotiations go. so not such a hard-hitting constant approach as we all thought, right? >> well, i don't know that we all thought that he thought. i'm very worried, stuart, by the nature of tweets. a, he is appearing to learn his comments have very real financial repercussions but he is not letting off the gas pedal. he is looking for bargaining chip. traders around the world are very uncertain about this seeming contradiction. stuart: this is upsetting the market, tariffs, trade war, steel, aluminum, maybe european

cars, maybe they put taxes on our harley-davidson motorcycles? it's a trade war that is pulling this market down, is that it? >> worries about the trade war because nobody knows where or what it will hit. so much of our technology is driving the markets. technology stocks, for example, maybe up 25.1% of s&p or something, highest ratio we've seen in a long time. that is particularly at risk if we get into tit-for-tat arrangement with some of our trading partners. stuart: if we got into the tit-for-tat trade war situation, if that materialized over next few weeks and monthss would you say that is a huge negative for stocks? >> yes. i would. because, nobody knows what that means for earnings. the ceos are going to figure it out eventually, but the question in the short term, what does this mean for earnings? do they have the appropriate reserves? do they have the sales chap nels necessary to overcome that? stuart: okay. i want to talk about a couple individual stocks, in particular apple. they're talking about releasing

a new and cheaper macbook air. now you have been bullish on apple for a long, long time. do you think that helps them sell more of their computers? >> yes i do. here's why. the line between a phone, a tablet and a small computer is increasingly blurred. i, for example, haven't carried a note book computer for several years now. apple feeling that. if they can produce a cheaper model gets them into that territory. they can defend and grow the brand. it is still hot around the world. stuart: apple is 175 per share, if it goes to 195, in other words, gains $20 to here, they become a trillion dollar company. do you think they are going to make it? >> i do. i think they're going to make it. i backed off my time estimate a little bit. i do think it will make it. it will be eco-sphere and services not the devices. stuart: want to talk about boeing ever so briefly. they are trying to look ahead.

they're testing i should say, a drone tax system. prototypes for a flying drone taxi. i don't think that affects the stock at all, does it? >> you know, stuart, not immediately, but to me this is extremely exciting development for one reason. boeing historically touched big institutional customers. this is the first product that gets it into the civilian market, the consumer market. they can bo much more directly into the consumer. developing software, collision avoidance, all things that make that happen it is still early. that potentially opens up entirely new market for boeing. >> good stuff, keith. thanks for joining us always, see you real soon. got it. how about this one, illegal i am my brandt in california has -- immigrant confessed stealing american sitten's identity and abusing government programs, to the tune of $361,000 of benefits over the two degg decades.

they caught him and stopped it. joining us arizona congressman andy biggs. congressman, is california protecting this kind of illegal as a sanctuary state? >> absolutely it is. that is one of the big problems we are going on, the federal government has to bring california to heal, they are flaunting immigration laws. they don't want the federal government to enforce immigration laws. this is just outrage just, quite frankly, now the proposal which i have seen, i believe it is from the president or certainly from the president, the administration, that we want to build the wall, we want to end chain migration and want to end the lottery, in return the republicans, gop and president trump would look favorably on 1.8 million daca people, "dreamers," by any other name, staying in the country and getting a road, pathway to citizenship. are you okay with that, 1.8 million, path to

citizenship? >> no. i personally am not okay with that. my constituents are not okay with that. quite frankly i don't believe, if we give that type of deal we'll see the wall. i don't believe we'll see end of chain migration. i don't trust people that way. number one, number two, the people that the "dreamers" should be mat aren't the government, you they keep coming at government. their parents they should be mad at, those parents came here illegally, brought them here illegally, over their lives did not change anything to illegal status. you will not end the amnesty at 1.8 million. stuart: but how do you get the wall built? how do you get the wall funded? how do you change to a merit-based immigration system if you don't give a little on the other side of the copy with the "dreamers"? you have to have the votes. you can't do anything unless you have the votes. >> i agree with but why are you giving 1.8 million people amnesty? stuart: that is part of the

deal, congressman, isn't it? you have to give something here if you want a wall, want the wall first, you got to give? >> well, you want, that is giving the store away. you're going to see end 1.8 million people getting amnesty. that is disproportionate deal in my mind. that is the problem. stuart: but there was 800,000, are you okay with that. >> you start talking 690,000, which is the real number of those who applied for daca status, that are still remaining then maybe. if you get the appropriate vetting and if you make sure that they, they're here. stuart: you would be okay with that? bring the number down to 690,000, and go with that number and you get the wall, you get chain migration, you get lottery, that is a deal andy biggs would go for? >> not until we see my end of the bargain performed first. in other words, i want to see the wall first. stuart: okay. >> that is the bottom line. i don't believe we'll see that if you give the amnesty.

stuart: understood, sir. understood. i think debate continues from here on out. andy biggs, we appreciate you being with us. >> thanks, stuart. stuart: check this out. it is a play made by a high school senior during championship basketball game. 70-foot miracle shot at buzzer. liz: miracle. stuart: he stole the ball. one-happened shot gave the win. he will play for marist college. my daughter went to mayor it, playing there in the fall. president trump threatening tariffs on european cars. we're talking to peter navarro, president's top advisor on trade. we talking about the oscars. we got the ratings. no surprise, down 16% from last year. not only did they get political, no up with goes to see the movies that they're touting for heaven's sake. we're on it. it's a great story. month ago that the

philadelphia eagles won the super bowl. one of the players here to talk about an app his team is back. did i mention he is an engineer, he is with us later this hour. you're watching the seg hour of "varney & company." ♪

stuart: we are down 130 points on the dow industrials, 24,400. is where we are. big, big insurance deal. france's axa buying bermuda-based xl for $15 billion. they are very much the center of the reinsurance business. president trump threatens a tax on european imports if the europeans retall eight on the tariffs of steve come being in

hire. if the eu wants to further increase their massive taxes and barriers on u.s. companies doing business there, we will simply apply a tax on their cars which freely pour into the u.s. they make it impossible for our cars and more to sell there. big trade imbalance. the man of the hour is with yous. white house top trade guy peter navarro with us from the white house. peter, welcome to the program, good to see you, sir. >> stuart, i would say you're the man of the hour always at this hour. stuart: flattery is the mother's milk of television, peter that is fine stuff. thank you very much indeed. down to business, you said absolutely no exemptions for any countries on steel and aluminum tariffs, that correct? >> that is the president's position on this. 25% tariff on steel, 10% aluminum, no country exclusions. let's understand, stuart -- stuart: can i interrupt for a second? i hate to do it.

>> sure quickly too, any exemptions for different kind of steel, different kinds of aluminum? the beer companies, they want an exemption on the aluminum use in beer caps. any exempt shuns going -- exemptions going be off of there? >> distinguish between exclusions for countries and exemptions for specific situations there. will be a clause that will have exemptions for very specific one-off type situations but nothing like for beer cans. funny you mentioned beer cans, a six-pack of beer with 10% aluminum tariff only goes up by september 1/2. i think americans are willing to pay that extremely small price to defend our aluminum and steel industries from extinction. aluminum industry in particularly distressed, stuart. stuart: okay. >> we have six smelters gone since 2013. we have only five left. two of them are operating at full capacity but the industry is only operating 43 capacity.

we have a specialty steel, only one company making that. which is needed for our defense needs. and this is what this whole thing is about. stuart, it is protecting our national security and economic security and the president has made it clear, without a steel industry, without an aluminum industry we don't have a country. stuart: now the president has gone right out there with a very tough opening stand. it seems like it is an opening gambit, an opening negotiating position, which may be moderated in the future. is that accurate? >> that is not accurate. the president is clear about this there is no, there is no backing off from this in the sense that that this is the minimum we need in order to defend our industries from extinction. if we don't impose the tariffs we'll louisiana the aluminum industry in matter of a few years and our steel industry will be crippled forever. we have lost 75,000 steelworkers

jobs since the year 2000. these are industries that are important to our national economic security. the president wants to defend them. stuart: did you expect this near universal opposition to tariffs? >> of course. if you go to ohio or pennsylvania or go to the heartland of american main street there is universal support. of course, k street lobbyists are going so go nuts over this. we'll have the politicians. i would remind you that when the president ran for president back on the campaign trail 16 of his republican opponents all opposed tariffs and trade reforms. then when he beat all of them, he beat hillary clinton, who was on the other side of the trade fence as well. so, only people who are surprised by this, i can't figure out who they would be. the president has been abundantly clear about this stuart, talk a little bit about the markets because there is some spin here somehow this is

going to upset the markets. i think if you're an investor right now at this point in time trying to look at the chessboard here, it is really important to understand that the impact of these tariffs from from a macroeconomic view are zero. the impact on the inflation rate are just close to zero. it is like a nothing burger. if you look at this in the clear light of day, positive economic indicators, consumer confidence, the business confidence, ism manufacturing index off the charts, as you announced the ism service index going upper to months on end. europe hello think, asia healthy. this is global economy that is moving forward. this is a bullish time. you know what? you can thank president donald j. trump for that because when he came into office he promised tax cuts. we got those. he promised deregulation. we're getting a lot of that. he promised to unleash our

energy sector so we have low prices for movers. we're getting that he promised trade reforms. from day one, signing getting out of the trans-pacific partnership. he did that. we are renegotiating nafta. nobody ever thought we could do that. renegotiating the south korean deal. we're putting on aluminum and steel tariffs. stuart: playing hardball too. thank you, peter navarro. >> no curves. stuart: right. hard ball. that interview did not move the market. we were down, started talking to peter navarro. we're down 112. no movement from the market on that interview. hundreds of thousands of homes up and down the atlantic seaboard still without power. bad situation. another storm could bring more problems this week. how bad and where does it hit? we'll find out in a moment. ♪

stuart: whoa, thousands of homes up and down the eastern seaboard still without power this monday morning. by the way there is another winter storm heading into this area. janice dean joins us. janice, how big, how bad, when does it arrive and where? >> all good questions. we're still refining the forecast. tell you some areas that didn't receive snow will get snow from this storm. part of the energy is moving across the northern plains where we have blizzard warnings. some of the energy works its way towards the northeast, combines with energy off the atlantic.

we have our next nor'easter. new york city, you're right on the line between rain and snow. north and west of new york that is where you get the snow totals, certainly all up and down the i-95 corridor. you need to pay attention to the local forecast. long island you could see measurable snow. north and west of new york could hit a jackpot of maybe six to 12 inches of snow. still refining the forecast again, stuart. as we go through time. we'll have a better handle on tuesday. but the worst of it will come wednesday afternoon, wednesday evening for the commute. as we refine the forecast tomorrow, people need to be on alert especially for the commute on wednesday, north and west of new york city. we'll keep you posted. back to you. stuart: we'll take the warning, janice. thank you very much indeed. >> you to you got it. stuart: president benjamin netanyahu will meet president trump in less than two hours. could talk about military action against iran. we are on it.

♪ this is popular with our viewers. the beatles at 10:30. put as smile on my face. we whether down 140 or 150 at the low. we're down 24,462. only one of the big tech names is up, facebook at 177. snap might reveals new versions of the spectacles. they are sunglasses with built-in cameras. no change for the stock, dead flat at 18. top of the hour, i said high-taxed blue states need to do something to keep the wealthy

from leaving. and listen to this, forbes is out with a list of america's fastest growing cities. seven of the top 10 are in low-taxed states. precisely the places where refugees will be flooding. texas, nevada, and florida. let's bring in first, america first policies advisor andy puzder. he is also author of that book, the "capitalist comeback." i like the sound of that. >> nice to be here. stuart: welcome to the program. the democrats in new jersey and california they're doing utmost to convert a tax into a charitable contribution to get around around the president's tax proposals. it is not going to work. i see a massive exodus coming. do you? >> florida, texas, tennessee, washington, those are not low, nevada, those are not low-taxed states. those are no-tax states. all of the top 20, there as one

california city, san jose made it probably because of silicon valley, but everything else was low-tax and no-taxed states. people will leave because their economic incentive is to leave. california, most of their revenue, i can't forget, very high percent an, is all from personal income tax. so this is a big problem for these states. stuart: half of california's income tax revenue companies from the 1%. >> yep. stuart: so heavily-loaded toward that 1% which under this new tax law will be utterly clobbered. they will be pay tens of thousands of dollars more in tax. i don't see -- one thing that these states could do, is lower their own taxes. but they will never, ever, do that. >> well, they can't afford to do it. they have got these unfunded liabilities to pension fund basically, state employee pension fund, that are on top of their budgets. they can't even meet their

regular budgets, but they have these huge unfunded liabilities. makes it impossible for them to do anything other than to continue to tax. so they have got -- there is a big dilemma in the states. they need to figure out what to do. i think there will be big problems in new york, california, new jersey, illinois. stuart: i think it is coming. you can see it a mile off. i have to ask you about united airlines. >> yes. stuart: new system for their quarterly performance bonuses. instead of offering the performance bonus to all employees they're going to bring in a lottery, cash prizes, 2000, to 40,000 bucks once a quarter, one lucky employee gets $100,000. why on earth would you substitute a lottery for a performance bonus? >> i can't imagine. i am absolutely no idea what they're trying to do other than to reduce costs. this is a terrible idea. you give people performance bonuses for go purposes. one you want to keep the best

performers, two you want to compensate them. two you want to incentivize everybody to try to be a better performer. you want people to give the best customer service if they -- what incentive to be top performer if you didn't have chance to get better than anybody else? it would incent you to do less rather than more because you don't get a benefit for doing. this is terrible, terrible idea. i have no idea what they're doing. stuart: the stock is falling as we speak. i think investors agree with you, andy. i have to ask you about delta. they stood firm on the decision to cut ties with the nra. then it was revealed that only 13 people actually took advantage of the nra discount and got a delta flight to their annual convention. am i right? it seems like 13 people cost delta $40 million worth of tax breaks? >> well $40 million is just, that is the bottom line cost.

what you see here is delta being completely off message. now this was a, almost a reflexsive reaction. i don't know if the ceo has some position on the second amendment that he felt he had to act or, there could be a lot of reasons you do this but delta is a company that, that is to appeal across every demographic. they con pete with southwest and united and american for every american citizen who wants to fly. you don't want to alienate anybody. because of discounts for 13 people, they're completely off message. nobody is talking about delta as a, their airline of choice or how good the service is or what deals they offer. everybody is talking about their position with the nra. which alienates -- no matter which side of that you're on, it alienate as huge number of people. this was a big mistake. they reacted too quickly. all the companies that cut discounts to the nra acted too quickly and it was useless.

nobody joins the nra to get discounts. you join the nra because you feel strongly about the second amendment, not because you expect to get advantages in the market to make purchases. this was a terrible, terrible decision by delta. stuart: a couple of airlines making bad decisions in my opinion. >> yes. stuart: andy, thanks for joining us sir, appreciate it. >> thanks, stuart. stuart: next case. israeli prime minister benjamin netanyahu will meet with president trump at the white house later on today. this comes after satellite photos showed iran building a military base in syria. come on in london center for policy research president, herb london is with us. herb, i can sense a military confrontation coming here between iran and israel and the united states and maybe even saudi arabia. >> very likely, keep in mind the russians have veto here. russians clearly play a role with iran. several weeks ago russians attacked an american brigade.

they got mauled in the process. they don't want direct confrontation with the united states or confrontation with israel. netanyahu mentioned putin seven times in last few months, stay out of harms' way. if we attack hezbollah we do not want to kill russians in the process. stuart: how many meetings? bebe had how many meetings? >> at least seven. stuart: in recent months? >> that's correct. stuart: seven? >> that's correct. stuart: did bebe go to moscow? >> a lot is back channel activity no reason the israelis should in any way tolerate this kind of iranian border activity because if in fact that is going to occur, they're going to be obliged to attack. what will the russians do under those circumstances? the russian alliance with iran as undoubtedly created great confusion in that part of the world. the united states not entirely sure about its policy in the

post-isis period. so the united states is now saying you know what? we're going to play a role here but we want to make sure that the iranians are not going to build in base. we're going to be sure -- stuart: they're building it. >> you say they're building it. russians have a veto. my suspicion is that the united states is probably speaking to the russians right now saying peel off from your alliance with the iranians because it is going to put you in direct confrontation with the united states yet again. stuart: i find that fascinating, russian veto possibly. that is fascinating. i wasn't aware of all this. i didn't realize what is going on in the background. i'm very aware of the european elections. so are you. the parties which created european socialism are losing power, they're falling apart. anti-establishment parties in italy won big in the elections yesterday. angela merkel, she is having real trouble maintaining a

stable, centrist coalition. >> this is true throughout europe. it is radicalization of european politics. it has been brought about in large part because of the migrant crisis that merkel introduced. they're facing a problem in all of europe. eastern europeans said march through hungary, march through poland an, on the way to germany but don't stop here. in the rest of europe there is no doubt that seeing radical sentiments now emerging on political front. stuart: we were told populism was dying, it had reached a peak in europe last year or whatever. but no, i mean very much a force. i think the unraveling of europe as we know it continues. now that could be a very dangerous thing. >> it's a very dangerous thing indeed. europe represents the first barricade against radical behavior in the western hemisphere. we are very much concerned about what happens in europe if in fact we start to see radical

parties on the left or the right, seems to me you will see a europe very different from the kind of moderate european attitudes we've experienced in past. liz: liz: striking phenomenon. reuters reporting that countries in europe built 750 miles worth of fencing and border walls throughout various countries in the eu. stuart: really? who says things fall apart, center can not hold? liz: churchhill. stuart: yates. >> very famous poem. stuart: he wrote it 100 years ago, could write it today applying to europe. >> used it as first pay graph in a book i wrote. stuart: did you? >> strikes me, 21st century, center may not hold. may not hold here. stuart: well-said, herb london. thank you very much, sir. draw your attention to the big board. come all the way back, almost all the way back, we were down 140 i think was the low. now we're down to 30 points. back to 24,500.

oscar ratings, i could see this coming a mile off, down 16%. so fewer people say jimmy kimmel gave away a jet-ski to the person who gave the shortest acceptance speech. mark bridges, who won the oscar costume design, got the jet-ski. liz: didn't help ratings. stuart: worst ever. we're talking about the ratings and politics, no one will see those movies. we'll be back with that. ♪ no matter how the markets change... at t. rowe price... our disciplined approach remains. global markets may be uncertain... but you can feel confident in our investment experience around the world.

call us or your advisor... t. rowe price. invest with confidence.

searching for answers may feel overwhelming. so start your search with our teams of specialists at cancer treatment centers of america. the evolution of cancer care is here. learn more at cancercenter.com/experts ♪ liz: last hour florida attorney general pam bondi told us what measures the state of florida is taking to protect their children from future school shootings. roll tape. >> $450 million. what it does, it provides school security. it is going to insure every school in florida is much safer. infrastructure, everything that we need to keep our schools safe. stuart: okay. >> it is going to provide law enforcement officers for everyone thousand students a school resource officer. that was something lacking in our state, as well as mental

health which is huge. has gun violence restraining order in there. raises the age of purchasing an assault rifle to 21. and banning bump stocks.

stuart: deutsche bank comes out and said, buy the stock of monster beverage.

apparently some people are. it is up 3% in otherwise a fairly down day. monster beverage. the ratings are in for the oscars. no good, bad indeed. down 16 percent from last year. hollywood producer gabe hoffman is with us now. look, it seems to me that the audience, we americans, we don't like being lectured to by hollywood with their liberal elites. i mean that's the problem, isn't it? what am i missing here? >> you're not missing anything other than the fact that they're making movies that america doesn't want to see. i mean yes, they were down 16%, that sounds bad. they went light on politics compared to the big music awards, grammys, which were down 24%. the bosses at oscars tried to put out the word, lay off the politics. only big zinger, where jimmy kimmel, about not mike pence not

liking the movie, call my by your name, the only difference between hollywood and mike pence, you can trust mike pence with your wives and children. stuart: why do they do it? they talk as if everybody in the audience shares their leftist politics. don't they understand, that they're not preaching to the choir? they're only talking to their select little group. the rest of the country really doesn't care for their point of view? why don't they get it? >> you know, it's a fun -- funny thing. nba, national basketball association ratings are up a lot. one of their alumni, kobe bryant won for a short fpl, by the way gave me a little bit after hit. you need to hit them in the pocketbook. hollywood needs to continue to learn that the american people don't like what they are giving us. for crying out loud, the best pictures, highest award to, the

shape of water, that is a film about a mute woman who falls in love with a sea monster. they have sex and live happily ever after. no wonder we don't listen to what hollywood tells us. stuart: they knew this. you know this. the last summer box office last summer, i think it was the worst in about a generation, worst in 25 years. they knew that people are not watching the movies which they give awards to. yet they still keep on doing it? >> in fact, our film, which was free on vimeo, an open secret, documentary exposing child sex abuse in hollywood, we had over 4 million views in a little over four months. stuart, that is more than every single nominee for documentary oscar put together. and in fact, best screenplay "call me by your name." that relationship would be illegal in most states and the state of california.

when you want to talk about hollywood isn't connecting with america, ask yourself, your truck driver or the guy who cuts your lawn going to watch a film like that? absolutely not. stuart: do you think in my lifetime, or, in my lifetime, shorter than yours, but in your lifetime, do you think hollywood will ever change? will we ever see an oscar awards ceremony which a lot of people watch and enjoy and politics is absent? >> only when ratings go down enough to make them feel enough pain. eventually it will. it is headed in that direction, no question about it. stuart: gabe, nice to hear. good luck with that movie of yours. >> thank you. stuart: up next super bowl champion who is also an engineer, naji goode, he has an app backed by the owner of the eagles. it helps monetize social media. he will explain it. he is an engineer by the way, and a football player. we'll be right back.

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stuart: have we got a guest for you. this guy is a super bowl champion. he is also an engineer. better yet, he has developed a

new app and his team is behind this app. look who is here. naji goode, philadelphia eagles linebacker cofounder of veepio. >> i like that. stuart: that is the name of the app. you're a linebacker? >> yes. stuart: you know, linebackers are supposed to be 6'10" and 300 pounds. >> the game has changed. stuart: spell it out. this app, what does it do? make me understand what it does. >> more so than the app, it's a mobile technology that is easily integrated by any ios, any android system app that currently stands in the store right now. what it does, it makes any media interactive. stuart: what does that mean? >> what you can do, see something in the public, has our technology capabilities you can click on it with picture and video. if you're watching a highlight of the super bowl, you're watching your favorite play, the philly special, click on the

jersey, you can buy it right then and there. stuart: oh, it's a marketing tool. to buy your jersey, is that it? >> more so than marketing. you can do anything. see something you're unfamiliar with, you can click on it. say you see the bridge or flatiron building, you click on it. somebody has it in their technology. they have existing platform. we can make it all interactive. stuart: you're the engineer behind this. >> yes. one of the engineers. stuart: yes. are rest of the team invested in it? >> we have very fortunate team. philadelphia eagles with jeffrey lurie is huge on innovation. he pushes hard to act sell at it. our nice we started, jonathan, the guy we worked with, they're doing huge things. what kind of a piece do you have of this app? i mean are you in for 20% of it or 25% of it? >> got to keep that -- stuart: with about the revenues

coming at you, what is your piece? >> so, i have a piece in the existing, what we first founded it. stuart: you are having such fun, aren't you? >> more so i helped design the initial things. helped out with the logo. i went to school for engineering and art background. interested in art and engineering. we have logo. they posted pictures of it in the technology. it is a hand, you can click, touch, boom. stuart: that is remarkable stuff. that's great. i have to ask this. you won the super bowl. >> yes. stuart: it was a nail-biting finish. you must have had a heart attack? >> we had a lot of them. we had a lot. it was cool. it was the most amazing game you can play in. cream of the crop. stuart: it really was. i watched it. it was fantastic it, was really was. >> thank you. stuart: you played a great role, young man. shake that hand. name of the app.

veepi. stuart: you have to have a british accent, veepio. i will charge you for that. morvan any after this. -- more "varney" after this. that's a promise. . ..

stuart: this week the split within the democrats becomes even more apparent. the senate will start to dismantle the intense regulation of the banking industry that followed the financial crisis ten years ago. they are taking it to pieces. about two dozen financial companies will get a break, regional banks in particular will have the boot removed from their necks. i think that's good. they didn't create the financial crisis, but they sure were clobbered by the regulations to deal with it. here is the split, about a dozen senate democrats will vote yes, almost all of them voted for the regulations ten years ago but now they see the damage and are prepared to retreat, big time. the hard left is not prepare

today retreat. senator warren is angry, characteristic of socialist, they are permanently angry, they assume sharp-edge demeanor to rail against the rich and capitalism generally, but on this one, they will lose and president trump will win. he started reversing obama's policies the moment he took office and this shift in bank rules is one more rollback, the sooner the better. regional and community banks are the ones you and i do business with. i'm tired of seeing them go out of business, i'm tired of seeing hundreds of dollars added to the closing costs of my mortgage, you're not going to hear much about it, but this is going to be a win for all of us. the third hour of varney & company is about to begin. ♪ ♪ stuart: yeah, look at this, by

the way, that's senator elizabeth warren, look tat bottom-right hand corner, we are up 50 points. we have had a 200-point reversal in the past 90 minutes. we are up 60. 24,500, almost 24,600. you heard my take, the bank will start rolling back rules, democrat elizabeth warren absolutely furious, john ellison former bb&t manager, joins us now, what say you on this? i think this rolling back of regulations aspecially on regional and community banks is a wonderful thing, what say you? >> absolutely. i totally agree. in fact, i agree with everything you said just a minute ago. dodd frank has been destruct i have to community barnes and therefore communities, it's been

particularly destructive in terms of small business lending which is what community banks and regional banks do which drives innovation and creativity in the economy. stuart: is this a lost for the hard left, i'm pointing to senator elizabeth warren who is furious on changing the rules, is this a good thing for the moderates in both parties? >> yes, it's nice to see consensus on something that's very destructive and the vast majority of democrats, including probably some that would be called hard left know that dodd-frank has been bad but they hate banks so much and that's been part of sales pitch that they don't want to deal with legislation that they know is destructive. stuart: okay, i have a census report, census bureau report, it shows that renting a home is cheaper than owning a home, interest rates rising, et cetera, et cetera, what do you

make of that? i was brought up on the american dream, you buy a house, that's the first thing you can possibly do, it's a good thing too. has that gone by the wayside nowadays? >> i don't think so but i do think that people ought to buy houses because they want a house. you know, what happens in markets sometimes you get inflation and n housing and people start buying houses, bigger houses than they need and housing over the long term has not been a great investment but not terrible investment but you really shouldn't invest in houses, buy what you need to live in and for reasons from personal perspective and things that have better long-term return. stuart: ownership is good, you take care of your property, enhance your property, you put money back into it if you own it and i think that's what's made america's housing stock so particularly attractive. i'd hate to see that go away, wouldn't you? >> yeah, absolutely.

and i don't think it's going to go away. but if you are to officially inflate housing prices and make it harder for people to own houses, you drive people into the rental market. what you don't want to do is use incentives that don't make economic sense to encourage people to buy housing, raise prices and therefore freeze a lot of people out of the market. so you want more people owning houses, not necessarily a lot bigger houses. stuart: you know, the economy is on a roll, we just reported numbers about an hour ago that the service sector is doing extremely well and so is manufacturing, okay, so we are on a roll. what do you think might stop it, a trade war? >> well, a trade war would certainly be very destructive and that concerns me, if you look back at the great depression, the two factors that caused the depression are errors that the federal reserve made in tightening the money supply and the huge tariff that created a worldwide trade war, i hate to

see either one of those happen, the federal reserve places a problem without raising interest rates too dramatically, the good thing is things are going very well. the challenge is that we need to undo some of the excesses that we created in a way that we don't create another correction. stuart: we appreciate you being with us, john. check the big board. we are still in upside, 200-point reversal from opening bill. went up 35 points. global head of investment strategy, now, i know because you've been on the show before, i know that you are bullish on the economy. >> yes. stuart: because we are doing extremely well. are you there for bullish on stocks as well? >> i think as we talked about last time, i think one of the enduring features of return this year will be the serial

corrections because we are as mr. allison said, we are going through this period where the economy has achieved escape velocity, number one and federal is going to normalize interest rates and you have what people are going to pay for equity prices. when that happens, you go through these series of volatility bouts. the last time we had something like that in '94, we talked about this before, over the course of the year, we had three different episodes of 8 to 9% pullbacks. i don't see why there would not be the same type of thing occurring this time around. stuart: you need a strong stomach but hang in there if you've like the stocks you have? >> stick with them, there's opportunity to sort of pivot to

more late-cycle investing which is the appropriate thing to do now and make sure your fixed income portfolio is in good shape. stuart: on friday morning we get job's report, big deal in economic's community, i think we are likely to see unemployment rate of exactly 4.0% historic low almost. i think we are going to get a speed up in wage increases, we had that last time, i think we will get more of that and i think we might get more than 200,000 new jobs, that's strong report. >> you have momentum now. stuart: does that mean the stock market go down? >> that's the perverse thing about all of this. we are moving in organic rate that we no longer need the help of central bank. the economy has achieved what we all wanted it to achieve for some time. stuart: we are going get prosperity. it's staring news the face.

it's just around the corner. >> i think it's there. if you look at wages and surveys of companies plan to go raise wages, planning to invest in businesses and planning to expand plants, you can triangulate but it's in fact, happening. stuart: they did very well in olympics? appreciate it. some individual stocks that are in the news and making moves. the wall street journal reports amazon is in talks about launching a checking account product, amazon is at 1509 as we speak, united airlines replacing quarterly employment -- employee performance bonuses with a lottery. liz: what? stuart: yes, employees are not happy about it and the stock is down, not much but the stock is down. by the way, the dow is now up 78

points, how about that? we have a jam-packed hour ahead, andrew palock. son of meadow, killed in parkland, he is with us next. we also be joined by republican gubernatorial candidate in california and we will ask him what happened. big day in washington, president trump and melania trump will welcome israel's prime minister. this is the third hour of varney & company. we are just getting started last years' ad campaign was a success for choicehotels.com badda book. badda boom. this year, we're taking it up a notch.

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moderate to severe rheumatoid arthritis was intense. my mom's pain from i wondered if she could do the stuff she does for us which is kinda, a lot. and if that pain could mean something worse. joint pain could mean joint damage. enbrel helps relieve joint pain, and helps stop further damage enbrel may lower your ability to fight infections.

serious, sometimes fatal events including infections, tuberculosis, lymphoma other cancers, nervous system and blood disorders and allergic reactions have occurred. tell your doctor if you've been someplace where fungal infections are common. or if you're prone to infections, have cuts or sores, have had hepatitis b, have been treated for heart failure or if you have persistent fever, bruising, bleeding or paleness. don't start enbrel if you have an infection like the flu. since enbrel, my mom's back to being my mom. visit enbrel.com... and use the joint damage simulator to see how joint damage could progress. ask about enbrel. enbrel. fda approved for over 18 years. stuart: hundreds of thousands of

homes and businesses remain without power even this morning after the weekend nor'easter, by the way, another storm is on the way. let me explain it this way, a powerful storm that's hitting the northern plain states right now, but the energy from that storm will reach the east coast and create another nor'easter in the middle of this week, you have been warned. all right, now, we are going to focus on separate subject. the florida -- florida and the parkland shooting, meadow pallock, one of the 17 people killed last night, her father andrew is on a mission to make schools safer and he joins us now. andrew, thank you very much for being on the program this morning, you have been out front on the school safety front right from the get-go, what kind of progress do you see thus far? >> i feel a change in momentum, you know, there's been 200

school shootings in this country and after every school shooting the focus is on gun control so obviously it's not working. i'm here, i'm the guy that's going to change it. i want to put school safety first and that's what's going to change right now. i'm the guy that's telling everybody, listen, it's not about the gun control, that's other issues that we could take up on a later date, but right now the american people, myself included we just want our schools safe just like an airplane is safe, just like when grow to a concert you are safe, our kids deserve that and we love our kids, it's nothing more precious than our children. so they deserve it, they deserve to feel like a judge, when they go to work, they need to be safe. stuart: earlier this morning on the program, the attorney general of florida pam bondi was on the program, and she outlined many of the things that you're talking about which they hope to

have enacted this week to the florida legislature, that includes a great deal of money, i think it's about $400 million to -- if i can say this, pardon schools, school safety offices everywhere and limits on the age in which you can buy a gun, assault rifle, you are happy with the progress thus far in florida? >> well, i had met with governor rick scott several times and we went over -- he went over the bill, all the points of it and it's a common sense bill that every parent or grandparent would want implemented in florida and the votes over the next couple of days and i'm thinking positive that it has to pass and then florida what i want is florida is to set the example for the rest of the country about school safety. >> i saw you at press conference held by governor scott, you were standing next to him, he asked you to say a few words, you

stood up there and you said, i want to be the last father who has to go through this and i believe you said said to other school districts, talk to me, i want to lead this charge, i want to lead the school safety movement. that's what you're doing, correct? >> that's correct. i want to be the parent that's had enough. i want to be the last one to bury a kid and it shouldn't, you know, everybody should be in the same agenda, so anyone in the media that starts focusing on gun control, they don't care about our kids, you care about your kids, the media cares about their kids, let's make schools safe, that's what they should be talking about, how many officers are going to be at the school, what type of security measures are we going to make in florida, that's what we should be talking about, that's what the kids should be talking about. school safety. stuart: have other school authorities made contact with you and are you taking this up

as now your life's work. >> this is my life's work but right now i'm so passionate about this bill that the governor put together and we -- if we can't get it passed in florida with 17 murderers, then there's another agenda somewhere that just doesn't make sense to me. so i'm -- i'm positive it's going to pass. stuart: andrew, our hearts go out to you and other families and we really appreciate what you're doing and appearing on the program this morning, andrew pollack, thank you very much, we appreciate it. >> thanks. stuart: what a guy? >> smart. stuart: doing the right thing. now this, i want to bring you up to date with delta-nra thing, georgia lawmakers removed the 40 million-dollar tax break for delta after they dropped the nra from those -- the discount program, turns out only 13 delta

passengers had bought tickets with the nra discounts, so i think you can say, 13 people cost delta airlines $40 million, i think that's accurate assumption there. >> yeah. stuart: delta stock is virtually dead flat. these are one-way flights on tuesdays and wednesdays, flights on other days starting at $39, denver, atlanta, the sale ends tonight at midnight. check this, a billion dollar super yacht that can turn into a submarine, can you take a wild guess on how much one of these would cost you? we said it was a billion dollar yacht. house of cards fans, this is for you, netflix releasing teaser for sixth and final season, however the first season without kevin spacey, how would they manage to turn this around, you

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stuart: well, well, it seems like what was negative two hours ago has now turned positive because the dow industrials are up 131 points. that means in the space of two hours we've already had a 300-point swing for the dow industrials. we are now 24,664. the popular netflix series house of wards has released a trailer for final season. watch this. >> we are just getting started. [laughter] >> the show halted production. robin write takes over as the leader and by the way, all-time high for netflix stock. >> a heck of a series. >> a heck of a series like he

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stuart: the 300-point turn ashed for the -- turnaround is holding, the dow is up 132 points. who would have thought? we have several big winners. caterpillar and mcdonalds. they got clobbered last week, big rebound right now, same with ge. they are rebounding from last week's losses, they are all dow stocks. interest rate, 2.87% to 10-year treasury. president trump will welcome netanyahu shortly. blake berman, blake, everybody is assuming that they are talking about iran and confrontation with iran, is that

what the conversation will be about? >> certainly one of the topics as benjamin netanyahu is set to arrive in the next half hour or so, in fact, before he left to the united states, netanyahu telling the local media there in israel that iran was first and foremost what he wants to talk to president trump about. certainly a couple issues will also be at the forefront, though, later today especially the president, president trump's desire to move the u.s. embassy in israel from tel aviv to jerusalem. we await here to see whether or not the official invitation is extended from the israely prime minister. this also, stuart, is somewhat of awkward moment for benjamin netanyahu to be coming here to the white house before the cameras as it was nuanced earlier today that one of his former spokesperson will end up becoming a state witness in corruption case that is evolving against the israeli prime minister in israel.

i bring that up because the two appear off the cameras, we will see if that is one of the questions that is fired away to the two world leaders. stuart: it will be, blake, blake berman, right there. i want to bring in david rueben, founder of shiloh israel children's fund. one thing that you want is that our president, president trump goes to israel and attends the opening of america's new embassy in jerusalem, you want that, correct, david? >> i think it would be a very nice thing, stuart, i don't think it's an essential thing. i'm very happy that he's moving to embassy and that president trump has announced that he's going to move the embassy and have the official -- the official move in may during israel's independents day, i think it's a great thing. stuart: will benjamin netanyahu

be the prime minister of israel later this year because we heard that a former spokesperson is forming state evidence against him, can he last, david? >> oh, for sure, these things take time, stuart. we are talking about an investigation that's going on and it takes time. nothing will happen until the attorney general makes a decision and the attorney general will not make a decision about whether there's going to be any sort of indictment until the israeli investigator and research and word has it that it's not going to happen for quite a few months yet, so, yes, in may, independence day israel, for sure benjamin netanyahu will be prime minister and if he's removed, you know, it's not going to be from a corruption scandal that's going on in the

next year. the elections might be moved up but the earliest new elections in israel would be the summer time. stuart: you must talk to us about the conversation that's going to be carried out in the white house today. we are all assuming that it's confrontation with iran, iran is building that base in syria, a launch pad for rockets into israel, we are all assuming that the two leaders are getting together to plan military strategy against iran, that is surely accurate, isn't it? >> well, for sure the topic is going to be iran, iran and iran. they are building bases, they are building attack launches from syria through hezbollah and also through the revolutionary guard, the iranian revolutionary guard which is quite active in syria right now.

it's right over the israeli border. you look from the heights, you can see the enemy right over the border and iran establishing bases in syria is a nonstarter, it's a red line and it has been crossed already, so, yes, there will be, mark my words, stuart, there will be a confrontation and it's going to be in possibly in the next three to six months. stuart: okay. david rueben, thank you very much for joining us, always appreciate it. >> you're welcome, stuart. stuart: now this, the government has ordered qualcomm to delay its shareholder meeting this week. this is very unusual. wants more time to review broadcomm's proposed merger or takeover of qualcomm. judge napolitano is here. hold on a second. let me see if i have this right. >> you probably do.

[laughter] stuart: qualcomm does secret work for the united states government. >> among other things. stuart: america's government does not want qualcomm to be taken over by boardcomm. they stepped in and said, watch out, delay this meeting. >> here is how it happened, when you are a target for takeover by an entity that could implicate national security, you have the option of forwarding the fact that you are a target to an interagency committee, chair of the treasury and that committee gives you shelter for 30 days, while it investigates the national security implications, so qualcomm didn't receive an order, qualcomm sent notice to interagency committee and said give us a 30-day greater --

breather and now you have members of the qualcomm board, some want $17 billion because they are going to make a lot of money, others at home don't want this because of the national security implications. it's a clash between freedom of commercial enterprise and national security. so it's basically a 30-day cooling off period, while government investigators can see just how national security is implicated. i've not heard of this before, have you? stuart: i haven't. >> to me legally and politically it's absolutely fascinating, for once the government did the right thing in my opinion, the target did the right thing, though the target qualcomm is conflicted. there are members in the board that want the cash and there are members on the board that do not want the cash. guess what singapore is saying, we are moving back to san diego. that's what they are thrown in the mix to get the 30-day period

fogged up even more. stuart: i want to leave time for this, as i agree the federal judge has agreed to suspend production of oil pipeline, looks like victory for environmentalists. >> starts all the way up in nebraska, the last piece that will allow crude from louisiana to be shipped all the way to the northern plains. this judge has twice before refused to environmentalists' request, she gave them three bites to have apple, the third she bit, she basically said stop and this is strange, federal judges are not permit today issue orders without giving reasons, she has given no reasons, the reason you have to give reasons is so that the agreed party here the people building the pipeline and the american government can challenge her decision before an appeal's courts, no reasons, no challenge, it's very strange, i have never seen anything like

this. federal rules of civil procedure, reason to be given at the same time the order is signed. stuart: the pipeline is on hold. >> they already start today build -- started to build it in louisiana. stuart: they know this stuff. >> we will see where it goes. italy and germany, italy had an election, germany had politically maneuvering, angela merkel did secure a fourth term. very shaky coalition at the center. in italy no outright winner but the antiestablishment parties claim huge increases in the votes, they now claim they've got a right to govern the country, lizzie. >> italy has had 66 different governments in 72 years. stuart: how many? >> 66. stuart: shows that you can do quite well without a government,

right, judge? >> have they had period with no government? [laughter] stuart: moving on, look at snap, it reportedly has two new versions of its spectacles in the works and they didn't sell well the first time and trying again, snap is up 1 and a half percent. look at apple, it's close to all-time high. actually it was above 180 last week, they are talk about some new and cheaper mac books, got it. up next, we have gubernatorial candidate in california and no longer running, i want to know what happened, why did he drop out, we are also being joined by the american of prosperity against tariffs and calls them harmful and says the government will hand pick winners and losers, i want to know what is your plan. varney & company continues.

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stuart: bounce-back, you're looking at it, now we are up 180 points, 24,722. let me remind you we opened down 140. we have a significant swing. looks like we are heading for 200-point gain. there you have it. powerful new satellite capable of tracking extreme weather launched by cape canaveral, florida, it monitors storms, wild fires and volcanic ash plums, it's up there, it's there now. california, our next guest was a gop candidate for governor but now he is not. doug ozzie on our program recently, yeah, he's running for governorship and now he's not,

what happened? >> the facts are that there's to appetite in the republican donor community to fund the statewide campaign and in california campaigns are expensive, so i just pulled it down. >> bottom line is that the republican cannot win and a lot of republicans donors, they are not prepared to put money into what is highly likely to be a losing effort. >> that's correct, right on point, stuart. stuart: last time i was on i said you don't have a prayer, i'm sorry i said that. >> you jinx me. [laughter] stuart: any republican candidate faces a coalition that is unbeatable, hispanics now the largest group voting group within california, the greens, government worker unions, women, trump haters, you get that coalition together and they are very powerful in california, you absolutely cannot win.

>> and the irony here is that they all know the state is going to pot not literally but it's going downhill and yet they won't -- nobody will take any effort to change the path we are on. it's like the movie idiocarcy that you see on tv. it's crazy. stuart: the report, survey, california has the worst quality of life in the entire country. it ranked number 50. ranked poorly in natural, social, veermtal call goirs, i mean, the writing is on the wall but, again, you can't beat it, can you? >> actually the special interest groups look at it the other way, they say we are number one. they look at that and say, we are number one. it's just unbelievable. cost of housing is out of control, k-12 is failing, homeless everywhere. traffic gridlock, no jobs, it's just like go down the checklist and they are 0 for life.

stuart: california, the democrats there are now in the crazy position of defending and helping 1% people, because if you don't protect them, they get killed under the new tax law in high-taxed state, they get killed, if you don't protect them, they leave. >> well, they are leaving. stuart: they are leaving, aren't they? >> yes, they are. i've had two sisters move out of state, my friends in the middle class are saying, why do i stay here? i can go get a job in washington or texas or oklahoma, why do i stay with this stuff and the thing i say to all of your listeners nationwide is do not let california politics take root in your state, do not let that happen because you will be in the same boat we find ourselves today. stuart: but that is what's happening in other states because the democrat party has a lock on certain states and certain electoral districts and they move to the far left, there's no moderate there, they are all going far left.

>> well, that is true. i mean, new york, illinois, california arguably are gone but i will tell you like oklahoma and idaho, do not become california, i just tell you that, do not become california. you want your life to remain sane, do not become california. stuart: you know, there's a spare room in my house in new jersey, doug, and i'm quite prepared to offer you reasonable rent on it but i don't think you will take it. it's a high-taxed state, what can i say? >> i appreciate the offer. [laughter] stuart: we will be back shortly and thank you very much, doug, for being on the show. >> thank you, stuart. >> stuart: by the way in california, the housing market in san francisco is so dire that people are spending more than a million dollars on earthquake shacks, okay, these were tinny homes built after 1906 earthquake and the fires which devastated the large part of the city, the shacks were built, sheltered more than 16,000

people, today many of them survived, they are being remodeled and now being sold as housing. a million bucks a pop. liz: start of the mini house movement. stuart: that's right. that's right. next up the president -- the president of americans for prosperity, he is against tariffs, i want to know if you're against tariffs, what's your plan to deal with dumping? any moment now, we could see israel''s prime minister netanyahu arrive at the whrows and we will take you there, of course, and the markets nice strong rally, real turnaround, we are up 177, we will be back. , you should know that chevy silverado's are the most dependable, longest lasting full-size pickups on the road.

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stuart: any moment now president trump and first lady melania will welcome israel's prime minister netanyahu and wife sarah, if anything comes from the meeting, you will know it. back to president trump and proposed tariffs on steel and aluminum. the president standing by his tough stance. he tweeted this this morning, tariffs on steel and aluminum

will only come off if a new and fair nafta agreement is signed, also canada must treat our farmers much better, highly restrictive, méxico must do much more on stopping drugs from pouring into the u.s. tim philips, americans for prosperity, the president thereof joins us now. it seems to me that the president is opening up with a very tough line taking a very tough stance right from the start to establishing a hard line bargaining position, what do you say? >> negotiations are one thing but the threat of eliminating nafta which has done so much for our nation, job creation, prosperity enhancement across our entire nation, that's not helpful and these tariffs, frankly, are just as bad. think about how prices will rise on consumers if the president actually follows through on the tariffs, that's not helpful and one last thing on this is so important, the president ran on draining the swamp.

well, what's more swamp-like than government picking winners and losers in the economy which is exactly what they are doing if the tariffs go through, wrong approach. stuart: the president has done this before. he goes into a situation, he takes a hard line right from the get-go and says, look, this is what we are doing, watch out, let's see where the chips fall, he gets a response from the political opponents, he adjusts his position and they maneuver themselves into an agreement situation. what's different this type, surely that's exactly what he is doing? >> we certainly hope it's only rhetoric and that has been the case over the last year and a half but the tariffs, they would be a disaster long term for the nation, it's wrong approach to take, retaliation from other countries and it'll drive up consumer prices and that's just at a moment when the economy is starting to take off, the tax cuts that this administration deserves so much credit for and

the congress, last year they are now fazed in, we are seeing benefit on americans and we hope the president is listening and looks at the progress and decides not to take a huge u-turn with the tariffs. stuart: we do hear you, there's universal discontent and we are reporting on it. appreciate it. again, we are waiting for the arrival of benjamin netanyahu and wife at the white house. we have a rally for the dow industrials, we are up 24,700, a 300-point swing from negative to positive during this trading session. we will be back.

. . . .

so, how's it going? well... we had a vacation early in our marriage that kinda put us in a hole. go someplace exotic? yeah, bermuda. a hospital in bermuda. a hospital in bermuda. what? what happened? i got a little over-confident on a moped. even with insurance, we had to dip into our 401(k) so it set us back a little bit. sometimes you don't have a choice. but it doesn't mean you can't get back on track. great. yeah, great. i'd like to go back to bermuda. i hear it's nice. yeah, i'd like to see it. no judgment. just guidance. td ameritrade. stuart: we're waiting a big arrival at the white house. we're watching a nice rally on wall street. lizzie, give me the oscar numbers again.

liz: down 16% from last year. which was also down. this is hitting near an all-time low, the worst in 10 years, for the oscars. stuart: what do they expect? why do we want to listen to political lecture from this bunch on sunday night? liz: your point is well-taken. >> your point is well-taken. alert on "cavuto: coast to coast." for next two hours i'm connell mcshane filling in for neil we shift over to the white house. we're moments away from hearing