i think although the left will be mobilized when the general comes along, probably won't hold up again. >> the treatment is evidential of why people hate the media and hate journalists because they should've not put them on the air at some point. if anybody may be impaired, that's a problem. >> thanks, everybody. i mean company right now. >> good morning, everybody. i'm ashley webster. stuart is out today. a number of them today. kim jong lin with nuclear talks without we had modest hopes and features tired looking at triple digit gains at the open and that is the second day in a row. two politics, the media hoping hoping for a smoking gun and they got something entirely else with them then heard. the campaign aide now says he may talk to robert mueller after

all. his performance during his media blitz yesterday raising serious questions about credibility. another major revelation involving peter strzok, the fbi agent removed from the moeller team. he knew of a security breach involving hillary clinton's e-mail server, but never followed up. we have a reversal from united airlines scrapping its idea to give bonuses based on a lottery. this after employees complained loudly. jampacked show as ever. saddling, buckle up. "varney & company" about to begin. ♪ >> you're sitting very close to me. we talked earlier about what people the white house were seen to you, whether you're drinking or on drugs whatever have been today. talking to you, i smell alcohol on your breath.

>> i haven't had a drink. >> you haven't had a drink. >> i know it's awkward. let me give you the questions. >> my answer is no. sure into former charm campaign aide sam nunn berg on erin burnett alla fine. he originally said that he would not cooperate with a subpoena. he's told "the associated press" that will probably end up cooperating with the special counsel. all rise, judge andrew napolitano is here. >> is this guy credible because based on the performance we saw yesterday. >> it was profoundly lacking in credibility. they were too profound legal issues. one is the following. three weeks ago, sam nunberg voluntarily agreed to an interview by an fbi agency come

interviewed him for 5.5 hours. whatever he told them, they decided they wanted to tally grand jury. we don't know what he told them. i doubt that he came across with them the way he came across on cnn and msnbc are they would've stopped the interview. there is something there. second legal issue and i don't know that it happened but he said it happened. he said they offered him immunity. that is a profound, profound offer which the government rarely gets out. sure into a suggest he has the goods. >> he also has personal exposure himself. they cannot prosecute you for anything in your life up to the moment of immunity unless you lie or commits another crime. they don't give this out easily. they can give it to you against your will.

they can't immunize you against your will. when that happens, you have no legal protection. you are forced to testify. if you refuse to with immunity or without, the judge will say you are a lawyer. do i have to explain a lot to you? it's a valid subpoena, valid grand jury. if you don't go, they'll lock you up. ashley: can you plead the fifth? >> no, you can only plead the fifth if there's a legitimate expose her to himself. he would've had to plug the fifth when he did the interview. the fact he gave the interview means whatever you talked about in the interview is not privilege any us to answer questions. ashley: if he's belligerent, doesn't do anything they can hold them in contempt russia and mark >> he said come get me to the fbi. they will show out. i myself was arrested and incarcerated people for choosing to speak before grand juries. it's a difficult thing to do. they are not bad people, not

criminals, not a danger to themselves or society. he taken note that the judge to uphold the law. the law is to grand jury subpoenas ballot, search. the guy or gal refuses to talk him you have to put them away. judith miller, was incarcerated for 85 days for failing to tell the government what they already knew. so i don't know where this is going to go. the last thing he said last night to ap was maybe i will. ashley: crazy stuff. thank you so much. we'll see you again at 11:00. coming back here. >> s'more nunberg news. ashley: another big story for you. north korea willing to denuclearize themselves or least agree to some of that with the united states. liz: that's right. state media north korea talking

about national reunification. the unification will be giving up its nukes anytime soon, but it seems like they are ready to emerge from isolation after a period of rapidly tightening economic sanctions from the chimp administration on it. is this an outbreak of diplomacy? talking about open-ended dialogue at the military threat is dissolved it can be guaranteed a normalizing relations. there will be a summit next month in south korea. ashley: hard not to be skeptical, but heading in the right direction verbally. thank you very much. the dow we think will be at triple digits 24 minutes from now. don riley, the economy is strong. there's no reason the market can't go higher. >> i agree with that.

good morning. ashley: i would argue the volatility of the north korea is and perhaps some pushback plans to put in tariffs on aluminum and steel. now it's getting pushback from his own party. is that plane into the movement hiring the markets right now? >> yes it is. coming out of february that there is a good. and reenter the market. it's good to see some of that because the decrease buying points. i'd rather buy a. that wasn't warranted. the economy strong and employment low. the market looks good. the president doing everything he said he would do in the beltway republicans seem to

answer in starting a trade war that we've been in for 30 years. i would dedicate his term on the trade war and it creates buying points. train to big retail names to tell you about. higher sales of target short in holiday quarter. a buyout offer was dead. starwood target. few -- should >> still trying to struggle on the big rocks retail side with how to compete online. targets, margins off a little bit. overall sales, there's just not a lot of growth. where is it going to come from, what are they going to do. how are they going to improve the customer experience? they've got a workout now. nordstrom's has a nice niche, but the number is sort of off the table.

does your family want to buy them out or not? you've got to think what the rejected $50 off for they will come back with a higher price. ashley: we will see. thank you for joining us this morning. hopefully you are right in the markets will move higher. thank you very much. appreciate it. fox news reporting the fbi agent peter strzok was told a possible breach into hillary clinton's server but didn't follow a tear this is why we had the judge with us. from what i understand, it was reached by then by fbi director comey. >> with fbi or comey issues a statement on july 5, 2016, exonerating, he said the following. it's possible there was a breach. lately the statement is of no meaning. we now know that he should've

said there was a breach. it's likely the actors gained access. somebody change the language. if peter strzok know of a breach and a separate felony. i don't know all the facts, but arguably he committed by failing to bring to comey's attention or whoever's attention needed to come to that the breach in fact actually occurred. it would be impossible for them not to have prosecutor if their recklessness with e-mails resulted in a breach of a hostile actor. >> he can be held accountable even though much has gone on since that point. >> the statue of limitation is five years. if this happened in 2016, still plenty of time. they'll probably say there is evidence of a crime here. doj you've got a look at

yourself. very, very significant stuff and it sees the narrative that the fbi had a political agenda. but actually, we are talking about a small group. we are talking about a dozen people. tragedies are people that had a significant impact on the investigation. judge coming thank you very much. now we will see you at 11. going up a little more coming top 123, s&p and nasdaq up half a percent we think in about 19 minutes from now. the cdc says the worst may be over when it comes to the flu. let's hope so. states reporting heavy foot traffic in the hospitals. 43 states reporting heavy traffic a month ago. dr. marc siegel coming up on that. sarah huckabee sanders getting into a twitter fight with the top white house correspondent.

sarah's dad, governor mike huckabee will join us next hour on that. the daca deadline has come and gone. no action for democrats. they don't care about the dreamers. more on that with more "varney" in a couple minutes.

ashley: president trump tweedy enantiomers this morning. totally inaction on daca by dams. a deal can be made. that is from the president tweeting this morning. desperate and fox news contributor lisa cruise. the optics are not grave. saying you let us down.

>> the video of nancy pelosi with immigration protesters as well in getting shouting down to which she didn't know quite what to do. president trump is right. when democrats had congress and the white house, and they promised immigration activists said they are going to get something done and they didn't. this is something they've been promising of failing to follow through with for quite some time now. i don't blame immigration activists for filmic they don't have a friend in the democratic party. president trump i think laid down kind of the middle down the road deal. he offered a path to citizenship of one playmate, the wall. rolling back chain migration and diversity lottery. he got attacked by both sides of the outcome of which is when you know that you have a deal down the middle. nancy pelosi's response to that was saying he wanted to make america weight again.

ashley: that makes no sense. >> and makes no sense. when he started that please you are serious about getting a daca deal done. ashley: very good. two federal judges said no you can't impose this march 5th deadline came and went yesterday. a third federal judge late last night agreed with president trump and he can set a deadline. that doesn't have much bearing on the situation right now. these people remain in limbo. every two years they have to reapply to stay in the country. >> you look at the top issues to american voters and getting something done with immigration does not make the list. they care about jobs, the economy. congress is going to prioritize the fact that it's the economy. president trump wants to get something done on infrastructure and other bigger ticket items the majority of americans care about. if there's not some external pressure on getting a deal done on daca, it may take a little

bit of time. >> i'm ready to deal. bring it on. where are you. >> i do think he meant that sincerely. he put the deal because he wanted to get something done. he wanted to provide a solution and insanity of the democratic party that makes this about a legit comments he made during a closed-door meeting to the price, making this about politics. this suite is 100% accurate. ashley: he is retiring because of health issues in april. that will trigger a special election. i would imagine mississippi is is registered as a com. they don't want another way more. >> this is where things get interesting for republicans. mississippi has an interesting state law for special elections were everyone is going to run in a nonpartisan ballot. depending how tight this midterm

election is, we may not know who controls the senate until after the november 6th date depending if nobody gets a majority on the nonpartisan ballot. that is where this can get interesting and you have a bunch of republicans likely running. and if there's just one democrat, you can have a special election issue where basically you have one democrat with a bunch of republicans splitting the vote on that side. nobody gets a majority and we go past the november base. things could get interesting. ashley: lisa, thank you so much. appreciate it. president trump just reading about talks between north and south korea. this is what he wrote. possible progress being made in talks with north korea for the first time in many years. the serious effort being made by all parties concerned. the world is watching and waiting. maybe false hope, that the u.s. is ready to go hard in either

direction. that is a tweet from the president. seems to say it all. liz: yeah, it does. ashley: yesterday united airlines to enough space on its widely unpopular plan to replace quarterly bonus replace quarterly bonuses with a lottery. we'll tell you what they are saying next.

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ashley: i guess they thought it was a good idea, but not united airlines pulling back on the bonus program. >> would have been like united airlines that they had a great idea. let's replace the quarterly bonus program with lottery, which is one individual at 2,100,000. people started saying even if the tax cut do not give out bonuses like southwest, american airlines and jetblue did. so they're hitting a they are hitting apposite but none has come in dialing back. tree into the workers has spoken. liz: the workers have spoken. the never before seen lottery bonus that they'll do. traders said of everyone getting something they thought why doesn't one person get everything. liz: the reaction from the workers was so writing from the flight attendants to the pilots. the point that they made, less

income you need to pony up that the tax cuts with bonuses like southwest. i really hit them hard. ashley: news on wal-mart and sporting goods. a 20-year-old in oregon is suing the retailer's for their new gun policy. both chains recently announced they would no longer sell guns to anyone under 21. oregon law allows gun sales 18 or older both in the pre-mark -- moving higher in the premarket. as we get ready to open the tuesday session on wall street, pointing to a positive start. the dow could be a 129. 129 points, very close to 25,000. s&p and nasdaq up by half a percent when we get things going. we will bring that to you right

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ashley: the opening bell is ringing in about 35 seconds from now. starr is ringing a bell today. the winning women's u.s. i.c.e. hockey team from the olympics

will be there to get things underway. congrats to them beating archrivals canadians for the gold medal. north korea, south korea getting some advice from the market today. we will see the i.c.e. hockey team there in the left-hand corner. we are up and running come expecting a nice start. triple digits, yes. up 104 points. the dow at 24,983 could very well touched 25,000 today. big day yesterday. let's take a look at the s&p if we can. expecting again up about four times. 27.31 on the s&p 500. the tech heavy nasdaq also pass a percent 73 points 67. the nordstrom family's $80 billion buyout offer good. nordstrom down to 51 box, close

to 2% in the early going. higher sales, the profit falling short in the holiday quarter. target down 125% at 74 bucks. make donald swapping frozen beef patties for fresh ones. sounds better to me. by may, the quarter pound burgers in the lower 48. bad news for alaska, will be made from fresh beef. at 37 cents at 151-2040. he's joining us today as always? also with us today, mike murphy. the a-team with us today. higher open after a big rally last session. still a bit volatile out there. are we stabilizing a little bit? equities looking good. >> i think right now this market is so locked onto news. every headline is moving the

market majorly in one direction or another. what i think is going to happen will have this celebratory rally on north korea and it will become so focused on interest rates where interest rates are going because last week powell started talking and it started to sound like he's going to raise interest rates and 1400 planes disappeared and then the trade tariff top. that is the variable that investors have to wrestle with. that tariff in my opinion is a real negative. you combine not with potential love interest rates rising. you have a very volatile combination that i think could become an issue. >> banks, just for that. we are off to the races. by the lake in the jobs report on friday. come in, mike murphy. what are you expecting on the

jobs into jeff's point, adding to the volatility that boeing is loath to. people not jumping in with a lot of commitment. >> a little bit of volatility, but i take what jeff is saying and i look at it from a glass half-full perspective. interest rates are rising to normalized levels. i'm fine with that. it's because you have strong economic fundamentals under that. a positive for the market. as long as earnings continue to outperform or perform in line with high expectations coming 18% year-over-year earnings for the s&p 500. we are a levels that should be bought. the tariffs we sold out 1400 points on the tears because of fear of a trade war. i don't see a trade war. i see a better deal for the u.s. whether it be nafta or other countries. i think that's a positive. ashley: let's move on.

goldman sachs says gm and ford would suffer if steel tariffs are enacted. to mike murphy's point, he doesn't see a trade war, but many companies saying wait a minute, this will hurt the bottom line. >> here is that people have to keep in mind. what this trade war and paul specifically with trade and aluminum. the initiative to save jobs, what happens is trying to save jobs in the steel and aluminum industry. one job, trying to save one job jeopardizes 25 jobs in other industries. this has been a failed experiment. it was a failed experiment with bush when he instituted the tariffs. that cost hundreds of thousands of jobs. my opinion right now is yes, we do need to create new jobs. this jeopardizes jobs. liz: we don't have the tariffs

via. look at the hague goldman is saying because steel is used in carmaking. 12% had for gm and a 7% picked to ford. both of them under performing this year versus the s&p 500. when you look at what the president is doing with whirlpool, saying we will have tariffs in the lake. when you raise the cost of steel for whirlpool, what it was trying to do to help whirlpool. again, we don't know if this'll be bilateral or fair trade action. >> and you have awful contracts. our trade contracts are awful. but obviously, with all the contracts they need to be renegotiated, a trade war is not the solution. even if they were to get to steal to get the steel aluminum industry up to par here in this

country, it has more potential. then giving tax incentives here would allow for more competition. ashley: let's move onto retail. higher sales than target, but profit falling short in the holiday quarter. do you own shares of target? >> do not own target, would not buy target, but did by wal-mart because wal-mart announced earnings a couple weeks ago. similar story they sold off. ashley: because of their online growth. >> in this case, target is made up almost 30%. wal-mart missed on their online in the stock got punished badly. wal-mart trading more than 20% off its recent highs and i think you'll figure out the online component because they bought a startup and so they are really focused on competing with amazon. i don't think target is the one who can do it. target had a tough quarter and i don't see how they differentiate. the only one that can truly compete with amazon is wal-mart.

liz: and wal-mart hitting blue apron with it the okay. >> interesting. quick check of the big word for you. six, seven minutes into the session and the dow was up nicely. we lost a little bit of steam. not 68 points 24.948. we say it everyday. amazon and their all-time high up another $9 per share for amazon. stained story with netflix. the stock of $3 or north of $3 right now $318 up 1% in the early going. new fancy noise. noise canceling headphones. new headphones coming from apple. we will get more into that and a little while. stock up a bucket $1.77. probably like $5000. google is selling out where you

go for your restaurant recommendations here we bought it and i were going to sell it. 1097 or also that i should say. gun retailers saying the fears and strength of gun laws following the parkway and shooting last month have not boosted gun sales in the same way they did during the obama administration. these to call president obama, the greatest gun salesman in the world. are you surprised given all the rhetoric they gun sales have picked up? >> i am completely. regardless of who the president is coming used to see unfortunately after a tragedy that the concern once had stricter gun laws than the gun stocks, you could count on it they would always outperform. you're not seeing it right now. i don't know how to explain it but it's not the same patterns were used to. ashley: let's get to judge seekers profit. mcdonald's swapping frozen beef patties for fresh ones.

restaurants in the lower 48 will be made with fresh beef. the company seems to like everyone jumping on the healthy bandwagon here. fresh beef as opposed to the frozen ones is a game changer for mcdonald's? >> just so you know, i have a record. i used six big macs at one time in my life. i was challenged. i ate six. it was a horrifying experience. the bottom line and now i have performed and i'm a fan of organic food. the bottom line when it comes to make donalds is that if i want good organic food i'm probably not going to go to make donalds. i'm kind of wondering now that they are bringing fresh patties in what the old patties were. the reality of it reality of it is we have this new millennial generation they do like eating

organic healthy food. i think mcdonald's is learning. they should've did this a while ago. i don't own any make donalds.but they should've learned this a while ago. maybe it will catch on. maybe we'll change some of their demographics. if there's a company that can do it, they could potentially execute it. ashley: mike murphy coming to you on mcdonald's? >> it's a good move forward in the stock dropped 5% on the trade work. there's an opportunity here and mcdonald's. ashley: goodness. might come in just come in much. appreciate it. up nicely over 100 points in our start to edge backwards. the dow up 47 points at 24,920. look at ge. down more than 50% over the last year. next we have someone who says it's about to make her worry and come back.

it's primary day in texas, voters paying for the polls. ken paxton is coming up next and we have questions for him. should texas republicans steer away in texas? more "varney" after this. whoooo.

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this is where i trade and manage my portfolio. since i added futures, i have access to the oil markets and gold markets. okay. i'm plugged into equities - trade confirmed - and i have global access 24/7. meaning i can do what i need to do, then i can focus on what i want to do. visit learnfuturestoday.com to see what adding futures can do for you. ashley: let's check the big word for you. up 44 points. we were up nicely above 101 we started the day, but coming back a little bit. 24,910 on the dow. general electric. joining us by phone now is better at ge analyst nick aman with william blair. make coming you expect ge stock

to rise over 50% this year. of course it's on my than 50% in the last 12 months. make your case if you can. >> is just about perceived risk we weren't starting to shift. at this point we see no more unknown material make it is better likely to be forthcoming. we have some unquantified ones with lawsuits and litigation. when you do an inventory in a company's quiddity, it's very solid. the end of the year and over 11 billion in cash. they can bring back with no attacks from overseas. the 13 million of unused credit lines that 31 million access cash in illinois over $30 billion from asset sales between now and the end of next year. there are unknowns. these are offset. when you look at the free cash, not the metric you want to focus in on. it was five points 4 billion in

2017. this year it's guided six to seven. when was the 323.5 billion from three accounts, cash accounts, working capital improvement from a reduction in plant and equipment spending in contra costa coming down. you clearly see a line of sight. ashley: let me bring in my colleague, elizabeth made donald. she has some strong points she makes. >> is bringing up very important points. the capital investment outstripped its free cash flow in long-term debt shareholder equity. yes it's going to sell 20 billion in assets. that's the plan. will the sales then really kicked ge out of the dow because that will shrink even further. the last surviving member of the dow. still not off of the high seas. ashley: how do you respond to that? >> i would say at this point there's certainly continued factors that they've got to work

through in 2018. we do think your capital spending will be 3 billion this year, not for .65. we do think you have a line of sight a $10 million of free cash out of credits to $21. four or 5 billion of upside beyond the guidance and cash flow is 50% now of long-term and short-term compensation. >> thank you. you've made your case very well. appreciate your time. he said the ge stock could rise of 50% this year and he just made his case. text is kicking off primary season today with some bugs about democrats gaining momentum. joining us now to respond to that as texas attorney general republican ken paxton. thanks as always for joining the

show. this perceived blue wave, are you worried about it in texas? >> not so much. you can explain this by the fact they have so many contested primaries. we just have a lot more democratic interest in running anything that has a lot of democrats out. if you look at the numbers from early voting, which accounts for 50% of the votes. 86% voted in previous general elections. so they are not trying in a lot of new voters. 97% in the general election a pass. they are not new democratic voters still obviously that would impact the general election if there were a bunch of new voters. ashley: what is the key issue from a texas point of view in this election? what is the key issue do you believe? >> it's different in the republican primary. donald trump has a lot of democrats that are not happy with him. however, i don't and that affects the general election unless they find a way to get the voters out.

with republicans, the issues are buried. we have eight open seats set up for congress. six of those republican. a contested races in the senate and it's a variation of local issues and statewide issues. ashley: democrats continue to say we are so motivated. we will get the vote out there. we can feel the excitement. do republicans have an issue of getting out after this midterm cycle? >> we are up 15% on the republican side from last time. we had opened governor seats all the way down to destabilize open for the first time ever. and yet here, we have contested races, but they are not significant most of them were almost predetermined because they are not challenges most people know about. it's still interesting despite the fact we don't have a lot of big challenges come in the voter

is actually. ashley: no blue wave to worry about in texas. thank you so much. we appreciate it. thank you so much. the dow down 34 you. up about 120 points or close to it at the opening now things have changed and we pretty much turned negative may be on the plus side now up nine points. essentially flat as you can see more red than green meaning more stocks are selling off denying. we lost our groove early on in the session today. a troubling new trend. hospitals say there's a big increase in kids ending up in icu because of opioid overdoses. very troubling news in need. dr. marc siegel breaks it down for us next.

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ashley: nowadays. opioids believe it or not are putting more kids in the icu. fox's medical correspondent mark siegel joins us right now. what age group are we talking about? >> we're talking about the ages one to 17. tree into how they get opioids? >> one to five is one third. they have hospitalizations from

2004 until 2016. a third of them were the ages of one to five. u.s. the right question. how. they don't know what they're getting. someone is prescribed oxycontin after a procedure they put in the medicine cabinet because they haven't used it. their 2-year-old is rummaging around and grabs it. the reason we know it's it's accidental at the fifth of them are taking methadone, which is used to get off of opioids. so clearly the young kids don't know what they are taking. this is a real warning sign. >> especially for some of the young here these are powerful pills. >> in the amount of much more when you're young. you don't have the same way. when take the same pill intended for an adult, it decreases your breathing time you go to the icu. it absolutely can be fatal. 43% ended up in intensive care unit many on the respirators, cardiac arrest. many deaths. trained as a message for adults is make sure you lock up your

medication. >> the message for adult is do you even need this medicine? how long do you need it for? do you have extra pills? do you get rid of the pills are not going to use. that's the message. trade to the cdc says the worst of the flu season is over. do you agree? are we getting through the nightmare that it's been? >> we're not out of the tunnel yet but down to 32 is a switcher widespread, which is starting to add now. it should be over by the end of this month. it's been a very bad season. drink your talking kids flu. >> over 100 deaths. the worchester and is now decreasing. the strings now are the one to flu shots cover better. less hospitalization, less deaths. we are not completely out of the woods. they real warning sign, wakeup call. >> it's a guessing game.

>> it's a guessing game. we've got to get the universal flu vaccine. that will help a lot. this is a warning that flu is a very bad disease. trade do certainly this series. enablers like others like heart disease and pneumonia. ashley: very sobering report from the.today. if you live in the northeast, another big storm is headed our way. more than a foot of snow could fall in some places. we will tell you when it's going to hit anywhere. north korea promises not to use nuclear weapons against the south. open the top with the u.s. about getting rid of its new. this could be a big breakthrough. we are on it after this.

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stuart: welcome back everybody. it's nearly 10 a.m. on the east coast, 7:00 a.m. on the west coast, big hour for you on varney & company. the markets, well, we started off like gangbusters we were higher but now we've lost a little bit of that steam but

we're still on the upside. we've got more on the markets meanwhile cnn jim acosta says white house press secretary sarah sanders has been ignoring him at press briefings the poor guy so he went after him on twitter. mike huckabee and former arkansas governor and of course sarah's father will join us to talk about that. peter strzok that sends him anti-trump text messages was told of a possible breach of hillary clinton's server but guess what? did nothing about it. jim jordan he's leading the charge to get answers on this and he'll be with us later this hour. and the exodus out of blue states due to high taxes hitting illinois and now, illinois is considering a retirement income tax. of course they are. we're on it. i'm in for stuart varney today the second hour of varney & company is about to begin.

>> good morning everybody. happening this hour republican leadership holding their weekly news conference paul ryan of course is at odds with president trump on tariffs so we'll be watching that for you very closely, anything exciting comes out of that we'll let you know about it. check the big board for you, the dow began right out of the gates , up over 100 points but has since paired some of those gains. still up 46 points so 24, 915 on the dow. take a look at the big tech names we check them every day and they're all moving higher apple, facebook, alphabet/google microsoft and amazon hitting an all-time high $1538 up nearly $ 15, amazing. netflix by the way another all-time high that stock up $ 5.51 at $320 a share, that is netflix, meanwhile, higher sales at target, that's the good news the downside, profit fell short in the holiday quarter that's not good the stock down $3 at

72.13. all right let's stay on the market and bring in our good friends with tjm investments and scott, we are off the highs of the morning, thought the selling was over, little bit, well, i can't say the volatility has gone away but we thought we heading back in the right direction it does seem like the headlines are driving the market and that's never good news is it >> [laughter] no not generally speaking no and i tell you the volatility is here to stay that's absolutely not going away one thing we're going to see at least the rest of the year number one and number two i do think more of this was a little bit about north korea, that's going to be giving the market a little bit of a boost and folks are looking to buy but we have to slow our roll here and just remember we're only at where we were some time around the middle of december as far as equity prices go so when they were too high to be involved in december, all of a sudden they're a great deal now in march. you have to be a little weary there, so let the market do what it's going to do. it still has a lot of volatility to come out. >> the voice of common reason,

across the atlantic. all right scott another one for you. president trump not backing down on tariffs on steel and aluminum imports. i'm sure you're getting an ear full in the uk. you're also a former. do tariffs hurt, especially the american producers? the unintended consequences. >> i was going to use that term there's absolutely unintended consequences number one and number two, the tariff trend isn't really a good one right? trump's been great about breaking trends, so i suppose i'm going to have to give them about five minutes on this and see what he can do but generally speaking they're not good and they're not good because it's market manipulation and there's no easy answer because we've got lesser economies that are doing things cheaper paying their workers less destroying a more evolved economy like the u.s. so that's the problem. there's no easy answer so you can get in this generally there isn't any winners but i'll give him his five minutes because he's been good at bucking a lot

of other trends but i still say this tariff trend isn't a good one. >> and you know to that point goldman sachs says ford and gma loan would take a $1 billion hit in the steel tariffs imposed they are imposed, i mean by anyone's measure, scott that's a lot of money. >> i mean when you put a b on it it absolutely is a lot of money it might be a little bit over blown, but i still say that it can't be positive right? they're not going to come out and give you a good positive story so there's going to be a hit just how big and again this tariff trend is on a downward glide. see it's not a good one and i want to see something maybe he can do something that's more positive, anywhere i'd like to go and be a farmer right. they're talking about soybean tariffs now in china so it's going to hit a lot of other different businesses. >> very well put last one for you scott in the last hour we had a top ge analyst looking through rose tinted glasses

perhaps thinking ge will go up 50% this year, a lot of the bad stuff is out of the way. do you buy it? >> have you seen a chart on ge? >> not pretty. >> there there's thering there that says jump in with both feet and i'll give him a gold medal for being a hero because it's only at $14 so he can afford to be a bottom picker here. flannery has a big job and costs to cut. he does still have a minor cash problem so we're going to have to still wait and see on this one. we've been saying wait and see since 22, $21 so there's no reason to be a hero right now wait until the trend is your friend. >> we'll have to leave it right there great stuff as always, it's westminster live there, in the middle of land on scott thank you so much appreciate it. >> good to see you. >> now this, north and south korea have agreed to hold a summit next month, and the north says it's willing to talk about giving up its nuclear weapons and it all sounds so wonderful

doesn't it? kumbaya, joining us now to talk about it mike huckabee, former arkansas governor. mike, you know, i mean we're all skeptical let's be honest but it does sound like it could be, could be a major breakthrough. >> well i think it is after all these years of playing nice, and not resulting ignition other than an escalation of north korea's ambitions to be nuclear when donald trump basically says no we're not going to play that game any more we're going to play tough and come at you they start saying maybe we ought to sit down and tariff being so i hope all the critics of the foreign policy of this president will now admit that playing the wimp is not the way that a super power plays the game, and so i think it's working and they're going to sit down and talk. i don't know that it results in north korea doing better for its citizens and putting money into food for their mouths of their people so they don't have to eat grass clippings any more, but it's a step and it's the first step we've had in 25 years

toward a better situation in north korea. >> yeah, just to talk about it is a major step forward absolutely. governor i want to switch gears if i can and i'm sure you've been answering questions on this cnn's jim acosta going after your daughter sarah huckabee sanders in a tweet. he said third press briefing in a row the press secretary did not take a question from cnn. now your daughter responded with this. courage isn't taking a question from cnn. courage is combat veterans sargent peck and staff sargent d wyer, the two heros of the briefing, it's not about you. your reaction to that governor? >> you know, i would not recommend for jim acosta to mess with sarah. she has way too much of her mother in her and, you know, it's one of those things when you put your hand on a hot stove and you keep doing it, you're still going to get burned and i would suggest to mr. acostahad to get over yourself, to quit

thinking those press briefings are all about you and maybe if you behave more like an adult when you went in there you'd get treated like one in the meantime you're going to get treated like one of sarah's children when they misbehave and eat a whole bag of marshmallows or do something nasty to their brother or sister and he's not going to get any more questions. >> well having said that, you know it is a bit of a distraction would you say to her all right, sarah next press briefing give him the first question, make light of it would you think that's a good way to go? >> she very well may do that. she's a smart kid and she's also tough. she had two older brothers that weren't nice to her and she learned how to survive by putting up with them so if jim a costa thinks he gets the best of her good luck jim. >> governor thank you so much very much appreciate your time with us today as always. >> you bet take care. >> now this, bank of america has picked their top cities for amazon's second headquarters, e-mac, while we think we nowhere they're going to go. liz: they're saying atlanta. here is the short list.

atlanta, denver, washington d.c. , boston and raleigh, north carolina so now the d.c. selection includes northern virginia and montgomery county, maryland reports are out amazon officials were seen recently in those areas talking to local officials so we know jeff bezos owns a home in the d.c. area. he owns the washington post and amazon is moving full bore right now into the healthcare space including cheap drugs, potentially, cheap drug deliveries,, so do they need to be in that area to do lobbying over congressional politicians? possibly. so this is a story right now. >> interesting. liz: yeah. >> the hype about where they put their second headquarters. e-mac thank you. check this out records from the uss lexington, a u.s. aircraft carrier sunk by the japanese during world war ii has been discovered 500 miles off the australian coast, how did you find that billionaire paul allen

microsoft co-founder led a team of explorers, the boat sunk in may 1942 with a ship with 216 crew members still on board. it was located nearly two miles below the surface and it is way out there and very deep. the uss lexington and ussyork town were credited with helping to stop japan on new guinea and australia. fascinating stuff. coming up, former trump campaign aid sam nunberg says well he may talk to robert mueller after all all of this after his very interesting performance during a media blitz yesterday. the left of course was hoping for a smoking gun. they got something completely different. we're on that, plus, the daca deadline has come and gone. the president says the democrats just don't care about dreamers, congressman jim jordan with us later this hour, he'll tell us if there's any deal in the works for that and oh, yes, you're watching the second hour of varney & company.

>> let's check the big board for you we started off the day very impressively up over a hundred points now we've gone in the other direction the dow off just down slightly off 23 points to 24, 852. mcdonald's announcing they're swapping frozen beef patties for fresh ones that's good right? well the stocks down just a little bit down a third of a percent down $0.52. now this, the eu threatening, what they do, on all american products like blue jeans, bourbon, let's before we do that go to paul ryan and the gop leadership conference. for starters, new data revealed that consumer confidence hit a 17-year high last week people were optimistic about the future

which encourages more spending more investments it's a sign of a healthy growing economy. second of all, labor department reported that jobless claims in the united states the number of people filing for unemployment dropped to its lowest level in almost five decades. think about that for a second. we saw just last week the number of people filing for unemployment rates going to the lowest level in 49 years. people are getting work. companies are hiring more workers this is very very important. also, u.s. manufacturing is expanding at the fastest rate in nearly 14 years. these are all very encouraging numbers and it's undeniable that real people are being helped by the personal tax cuts and the tax cut and jobs act and to top it all off two more major companies, carters and mission produce announced it would pass along the benefits of tax reform to its workers. thanks in large part to the bonuses given by hundreds companies due to tax reform, the

bureau of economic analysis estimated that americans took home an increase of $30 billion alone in january. the agency also said the law reduced personal taxes in january by a rate of $115 billion per year. that's huge. that is more evidence that paychecks are growing, that take home pay is bigger, that workers have more for their families. one thing that i've got to say hasn't gotten a whole lot of attention is the fact that this law doubles the per child tax credit to $2000 per child. that means moms and dads often people who need this relief the most are going to be helped in a really big way. take new jersey. andy told the asbury park press he will put the extra money because of the $2000 per child tax credit he gets in his paychecks towards his college tuitions so this tax reform law is really making a positive difference in people's lives that's why we're here to make a difference in people's lives and what we're seeing is it's

helping families save for college and put money away, putting more money in people's pockets and it's also expanding the economic growth to the point where unemployment is now at a 49-year low. that is exactly what we were hoping to achieve when we passed this law and we're very excited to see those results materialize any questions? reporter: [inaudible] >> yeah, so let me just that's fairly broad. let me say it this way. there's clearly abuse occurring. clearly there is overcapacity dumping and shipping of steel and aluminum by some countries particularly china but i think the smarter way to go is to make it more surgical or more target ed so i think 232 is too broad and i think it's more prone to retaliation and so what we're encouraging the administration to do is to focus on what is clearly a legitimate problem and to be more surgical

in its approach so we can go after the true abusers without creating any kind of unintended consequences of collateral damage. reporter: [inaudible] >> i'm sorry we don't do the blurt out thing. anna? reporter: [inaudible] >> you know, honestly i'm not watching the gyrations of the market what we're trying to do is make sure we have good economic policy and just to repeat what i said we think the best approach and the president 's right to point out there are abuses. there clearly is dumping and shipping of steel and aluminum. that's absolutely happening. there's a big overcapacity problem. let's go focus on that and let's focus on the abusers of that and that is why we think that the proper approach is a more surgical approach so that we do not have unintended consequences that's what we've been encouraging the administration the person running point on us is the ways and means chairman kevin brady working on solutions with the administration and those talks are ongoing and i'm

encouraged we can get to a good place. reporter: [inaudible] >> well look we think the economy is doing very well and we want to make sure every step we take helps the economy. we want to make sure abusers are held to account especially with china when it comes to dumping but we also want to make sure every step we take forward does not create any unintended consequences. reporter: [inaudible] >> look i'm not going to go into our private conversations. we've had multiple conversations about this he knows our view. every now and then we'll have a different approach how we should tackle these problems but it should be acknowledged that there is a problem that needs to be addressed here we just want to make sure it's done in a prudent way that's more surgical so we can limit unintended consequences, thank you. >> all right, so there you hear paul ryan gop house leader talking about well he talked first about the booming economy but then was asked first question in the big topic of the day is the tariffs that the president has been proposing, 25 % tariff on steel, 10% on

aluminum. he says that's too broad. the house speaker is saying they need to be more surgical when they talk about the abusers. he said there are clear abuses and we should focus on the individual abusers and he talked about the collateral damage is what we don't want. liz: that's exactly right so he's saying do surgical targeted bilateral fair trade tariffs instead of the two broad tariffs that they're talking about now is prone to retaliation and collateral damage. >> thank you e-mac and who better to talk about this than americans with tax reform president grover norquist, grov er you heard paul ryan speaking there. >> yeah. >> look the fear is this just grows into one massive trade war , the problem with unintended consequences. do you think the house speaker is right there should be more targeted on who we are, you know , point out is carrying out these abuses? >> oh, absolutely. trump is correct that there are abuses. they postally come from china because they have a socialistic economy and so they invested

much too much in a non- competitive aluminum and steel production and now they sell below price because they don't have a market economy. canada, you shouldn't be hitting canada. if you want security on aluminum production in north america, we produced all of our own. why? because the canadians have very low cost energy because they have water energy and from waterfalls and that's good, and it produces aluminum right next to us. why in the world would you include in canada to discourage production near the united states, contingent to the united states, when the people you're angry at is the chinese socialistic government which is going to miss allocate resources and frankly as japan did 20-30 years ago which caused all sorts of problems and now china is doing it even worse because they don't even have democratic oversight on stupid. >> so sorry to interrupt, grover

, but so what you're saying is better to get into an individual trade war with china than with the rest of the world? >> well hopefully this is the problem we need to fix this if china wants to get mad about something else i suppose they could but right now the european s are looking at targeting everything from bourbon to blue jeans to agriculture very targeted, states that are important to the president, citrus, high florida, high california, so why in the world enter a war of choice with europe when you have a disagreement with china. the president's quite right that there's a problem with china but this blender bust approach will hurt the united states and ultimately kill more jobs than it's supposed to protect and that's always the danger of trade wars and getting involved in this sort of approach. >> yeah, it's interesting isn't it? and listen, there is definitely

an abuse when the country like china dumps all of their subsidized cheap steel and anything else into this market and makes it impossible for american companies to compete. it's just not a level playing field, but grover on the other end, how are american imports in china treated? do, you know, is it a one-sided battle in other words has china been getting away with this for a long time? >> there are a number of countries, south korea, japan, china, that discriminate against american products that make it tough to sell things into their countries and we have relationships with them on other issues. south korea exists as a country because the united states gave people's lives and money to protect them and then they are very very unfair in terms of keeping out cars and other imports that we should have. we should say to them look, knock this off. one on one private conversation, nobody gets humiliated let's stop it. same thing with japan not

letting us sell them rice for crying outloud and china has their own series of restrictions that we should be negotiating one on one, to drag the european s into this when you are trying to fix one on one problems is a huge mistake and i hope the president having made his point can focus as the speaker says and take a surgical approach to what we need to fix. not some sort of poking other people in the eye who are just doing their job, making aluminum at reasonable prices, not, you know, handing it away for free. >> we'll have to see whether the chinese will play ball but certainly is getting a lot of attention right now. grover norquist as always thank you so much appreciate it. >> good to be with you. >> all right now this. it may be march but heavy snow, blizzard conditions in minnesota kind of expected there this time of the year but forecasters say it's all heading to the northeast next, no.

janice dean i think i'm going to have a tough travel day top tell me about it. >> yes absolutely. i think the worst of it is going to come mid morning, so people might be able to get into work but getting home from work is going to be a problem. we're going to have school closures as well and travel delays and cancellations so current temperature is 40 but the temperatures are going to be cold enough for snow especially north and west of the i95 corridor so here is the system we are wapping right now. blizzard conditions across the northern plains the energy from this is going to combine with a coastal low and that's what's going to make our nor'easter overnight tonight and into tomorrow and the temperatures are going to drop so we're going to see cold enough air for some snow. now, that line between the rain, the sleet, the freezing rain and snow is going to be right around new york city so depending on where that line is going to be, ashley, is going to be the difference between maybe a couple of inches to a foot or more so this is going to be a tricky one but i can tell you the latest forecast models show

the potential for eight to 12 inches around the new york city area definitely north and west of new york, you're going to get big snowfall totals but places like long island will cut back because of the rain, sleet, freezing rain mix, a mess a total mess i'll see you tomorrow >> i live north and west of new york. i'm just saying. >> maybe i won't see you tomorrow. >> see you next -- >> do you want me to write you a note? >> please do janice that would be lovely and i'll see you in april. janice dean thank you so much. >> of course. >> appreciate it. after saying had ewould not cooperate with robert mueller and it would be really funny if he were arrested for it, i kid you not, former trump aid sam nunberg says he may in fact talk to robert mueller after all. interesting story strange story we're on it. >> ♪

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♪ everything is working, just like it should ♪ >> what's wrong with you? it's the beatles. >> thank god stuart isn't on here. >> stuart would be very upset with you young man take a quick check of the big board we're up a hundred points and briefly turned negative for now we're up 32 points so we've gone five miles to go one mile really. the dow up 24, 90 # the big tech names we check them all the time because they're so big, and so much money goes to them. they're all in the green right now, facebook, amazon, microsoft , alphabet, apple, all on the up, amazon on the way up $17 hitting new highs at $ 1540 per share. ge not up when we say this, top gainer on the dow of course only up $0.20 because it's a $14

stock but good for one and third percent gain on ge. now, this. illinois is considering a tax on retirement income. of course, they are. let's talk to syndicated radio host harry elder for his take. your laughing, listen, look illinois residents already getting the heck out of town to avoid taxes, so what do they do? to get them to stay? they add more taxes. what the heck is going on? >> well that's right. you know, from maggie thatcher, the problem with socialism, and on top of the tax bill that now eliminates state and local deductions, they now want to tax pensions in illinois, i mean what more do they want to do to them? how much more can you get out of them my goodness? >> ring them dry baby how soon larry before california starts saying oh, great idea. >> well, we already have, we already have lawmakers trying to do something about that already. you know, california has been

rated by ceo magazine ashley as the worst state in which to do business for the entire time the magazine has been in operation and illinois is not too far behind. >> [laughter] >> sooner or later these guys have to understand maybe just maybe you might want to think about i don't know cutting expenses. >> yeah, well yeah. that's dirty words for those guys but illinois, california, new york, run by democrats that's all you have to say. next one for you larry, 20 year old in oregon is suing both dick 's sporting goods and wal-mart over their new restricted age limit on gun sales, no younger than 21. was that inevitable? what's your take on all of this? >> well it's in inevitable there will be a lawsuit. there's something called the malitia act and everybody a male between ages of 17-45 years old is part of the citizens malitia and this is what the founding fathers setup and designed to make sure it wouldn't be some sort of government takeover.

that's the whole point behind the second amendment. i'm not even sure it's legal to raise the minimum age to 21 given the fact we have the malitia act that says every male from ages 17-45 is in fact part of the malitia. i think it might very well be unconstitutional but as far as this lawsuit is concerned look these guys are private actors if because of pressure they want to alter the age at which people can buy firearms that's on them. i just wonder why the same thing doesn't apply to somebody whose a cake baker. how come i can't refuse to turn down a gay couple who wants me to bake a cake for their wedding why doesn't it work both ways? >> plus you could be in the military and be under 21 and my god you need a gun then right? >> that's right you're 20 years old you served two tours of duty in afghanistan and iraq you come home can't buy a firearm what is that? >> crazy next one, larry. former trump campaign aid sam nunberg god bless him flip flopping now on whether or not he cooperates with special counsel robert mueller's investigation and then came this interview with cnn's erin burnet

te. >> you're sitting very close to me you talked earlier about what people in the white house were saying about you whether you were drinking or on drugs or whatever had happened today. talking to you, i have smelled alcohol on your breath. >> well, i've not had a drink. >> you haven't had a drink? >> no. >> so i just because it is the talk out there, again i know it's awkward let me just give you the questions you can answer you haven't had a drink today? >> my answer is no i have not. >> well fascinating interview larry look, this guy is not exactly the smoking gun in the russian investigation that the left was hoping for. what did you make of all of that >> well that's why they put him on they were hoping he would trash donald trump and have some smoking gun about collusion. look two days ago i couldn't have picked the guy up out of a lineup. apparently he worked briefly for the donald trump campaign, got fired twice nobody knew him two

days ago and now he's the man the big guy. >> it's fairly strange and to erin's point she wouldn't say she smelled alcohol if she didn't, so it's almost like, you know, why would she suddenly out of the blue say do you know what you smell like alcohol. the fact that he denied that was awkward but it was almost sad wouldn't you say. >> well maybe it's almost obligatory if you go on msnbc to have a little something to make it palletable i don't know. >> who knows, but just another bizarre chapter in all this. very quickly by the way midterms getting underway in texas i've got about 30 seconds. we talk about or we've been hearing about this blue wave. i'm not so sure right now. >> i'm not so sure either as long as the economy continued to do well we get to be about 4% gdp i think a good chance the democrats will not take control of the house. >> wow. very short and right on point as always larry elder, thank you so much appreciate your time.

we had a lot of topics to cover and you did very well as always larry thank you. >> my pleasure ashley. >> very quick check of the market for you, we're flat right now on the dow we were up a hundred points now all of a sudden we're flat so there you go. a tuesday morning flat start. right. let's bring in go live on the radio brian kilmeade posted the appropriately named brian kilmeade show. >> yes. >> brian we've been having some fun i guess you could call it fun but it's kind of, bless you to e-mac, we're getting your take on this nunberg drama we've been playing this clip where she says i smell alcohol. why would she say that if she didn't smell alcohol? it's all very bizarre. >> actually i have a couple theories if you're interviewing someone today like for example, if liz is a little drunk -- liz: i never drink i don't drink >> let's say hypothetically she was so you get through that interview toss to break that's it. >> yes. >> now if they come back later

and lou dobbs books liz and then we have everybody else booking liz all day and then we book liz with neil cavuto at 4:00, then that's a problem on the network and judgment. sometimes you book somebody you have no idea what their blood alcohol is but if you know he's acting bizarre why are you on five more shows after that? i watched it all night. it was a slow motion car wreck who by the way the only reason he was booked is because his message was so anti-trump they thought they were going to have some headline finally a former trump aid explodes and says there is collusion and he did go in and out of that but his personal insult of what he views the appearance of sarah huckabee sanders was so out of line especially in today's climate as well as the restaurant or somebody in the hall to say that and get away with it is in excusable. >> absolutely agree. the left wanted a smoking gun and that's exactly what they didn't get. next one for you brian a new report says the houston texans not interested on bringing on

free agents who protested for the anthem. interesting what do you think? >> well they deny it but two agents said no, no, they did, my clients are the ones they talk to and they said they're not going to be interested. when i say it's a free market no one mandates players have to be pros or you sign players. free agents he didn't say i'm going to cut players under contract which by the way is still right but it's a red, white and blue state like almost no other in texas. it hurts their product to have players kneel. it divides the fans. they need fans to exist. you do not have to sign someone you don't want especially it's a free agent and if you're taking a knee, that's like the attitude that is so important to the success of the player and the team. so that's an attitude he doesn't want. he has a right to do it however the houston texans owner got themselves into a lot of trouble last year when he said we can't let the inmates run the asylum and a lot of people took that as

racist and he later apologized. >> look i'm all for free speech who isn't but it works both ways and the other team just wants to make a statement like that it's a business they can do whatever they want. >> yeah, that's i agree but they did backtrack on that so let's see who they sign. the nfl they're on park avenue right here have to find a way to solve this issue in the off season because every owner, every coach, every player is going to be dealing with this on a almost daily basis because of these questions. they got to make it about football again. last year they should have learned their lesson. make it about football. make do what the nba did. everyone stands for the anthem it's in the player's agreement they got to get that into the agreement now. >> couldn't agree more brian kilmeade great stuff as always and brian is one of the few at fox news because he does say hi in the hallway very nice day. liz: great guy. >> brian as always thanks so much appreciate it.

>> sanctuary hi to your panel too they seem very nice. >> i would do that and they're not drinking at least i don't think so. liz: thank you. >> now this, espn has a new president e-mac. liz: yeah, he's the head of digital at disney and here is the thing with espn. it has lost a whopping 12 mlion subscribers in the last eight years, so this is considered the premier sports channel, can this guy turn it around in a world of streaming and a lot of competitors a lot of sports competitors sports channels that customers can turn to. >> and also change the political climate because they had a lot of issues with some of their talent spouting off some of whom has since been let go but it certainly hurt the political environment system as well. liz: it's interesting as old media hooks up with new media, you know, disney, is that old media attaching itself to a new media can they combine the two? it's still a tough road right now for disney with its stream

ing push, you know is it integrating it well versus what other companies are doing so we'll be watching james pataro at espn. >> e-mac thank you coming to a fox food chain near you, flippy, the burger flipping robot could be a game changer for the industry, the owner of a couple dozen applebees is interested but first peter strzok the fbi agent that sent anti-trump text messages that got him demoted from mueller's russian team reported he was told of a possible breach into hillary clinton's server but guess what? he did nothing about it. jim jordan, congressman from ohio, next. >> ♪ so i got an offer on the business, and now i'm thinking... i'd like to retire early. oh, that's great sarah.

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once a day. tell your doctor if you have a heart condition, high blood pressure, glaucoma, prostate, bladder, or urinary problems. these may worsen with anoro. call your doctor if you have worsened breathing, chest pain, mouth or tongue swelling, problems urinating, vision changes, or eye pain while taking anoro. ask your doctor about anoro. ♪go your own way get your first prescription free at anoro.com. >> last hour texas attorney general ken paxton said he's not worried about growing momentum for democrats in the state of texas as the elections there kickoff. watch. >> he can explain this by the fact that the democrats have so many contested primaries there's nine on the governor's ballot so we just have a lot more democratic interest in running so i think that's drawing a lot more democrats out. if you look at the numbers from early voting we have about two weeks of early voting which accounts for 50% of the vote. about 86% of those democrats

have voted in previous general elections so they're not drawing in a lot of new voters 97% voted in the general election in the past so these are not necessarily new democratic voter s so that would impact the general election if there were a bunch of new voters.

>> well a couple of big retail names to tell you about higher

sales at target, but profit falling short in the all-important holiday quarter that's not good target down more than $2 at 72.85 meantime the nordstrom family's $8 billion buyout offer was rejected by special committee of the board, nordstrom down just slightly at 51.44 down about $0.46 and fbi agent peter strzok allegedly failed to follow-up on a report of a possible breach of hillary clinton's private e-mail server and this story goes on and on let's bring in ohio congressman jim jordon pushing for a second special counsel to investigate the clinton probe. congressman what i can tell is mr. strzok new there was an abnormality with the mega data on mrs. clinton's e-mail server but there were grounds to take a look at this but we know that the secret information being put through this server but in the end, he never

followed up. >> yeah. >> right? >> right and that shouldn't surprise us after all this is the same guy who changed the now famous exoneration letter from the term gross negligence which is a crime to extreme carelessness so we all thought the fix was in with the clinton investigation at the top levels of the fbi. now that we've seen the strzok and page text messages and get this story, we know the fix was in because this is the agent. this is the super agent, peter strzok former head of deputy head of county intelligence who ran the clinton investigation, he interviewed secretary clinton and then it shouldn't surprise us that he didn't follow-up on something pretty darn important. >> you mentioned the editing because james comey at the time said it was reasonably likely that hostile actors gained access to then secretary of state hillary clinton's private e-mail account. that was watered down to say it was nearly possible. it's a huge difference. >> right so he changed that part

of the exoneration letter to merely possible. he also changed the overall view of this from a gross negligence which is again tracking with the criminal standards with the statute itself to extreme carelessness and what is also interesting is of course this is the same agent who launched the trump russia investigation. he is the agent who said this george paparazzi issue which also had information coming out he started the russia investigation so the guy who interviewed mills, changed the exoneration letter didn't follow-up on this important breach of her computer of her server is also the guy who launched the trump russia investigation. that's why we need a second special counsel. >> it's not exactly difficult to connect the dots next one for you congressman. president trump calling out the democrats for dragging their heels on daca, now this morning he tweeted this. total incabbies his on daca by dems where are you, a deal can

be made your response to that congressman? >> we could do the right thing and the right thing is consistent with what the american people said on election day they were very clear about this because president trump campaigned on this bill the border security wall stop chain migration get rid of the visa lottery deal with asylum policy and this crazy sanctuary city policy we see all over the country deal with all those things and then oh, by the way we can also deal with daca individuals in the appropriate fashion. so let's have that kind of legislation passed that's what we all campaigned on consistent with the mandate of the election and more importantly that's exactly what is in chairman goodlatte, chairman of the judiciary in his legislation that we in the freedom caucus and we in the house republican conference are trying to get passed. >> it's interesting congressman because yesterday we had protests outside the democratic national committee headquarters protesters, dreamers upset with the lack of action and ability to negotiate by the democrats,

so, you know, those would technically believe that the democrats would be behind them they're kind of turning on themselves a little bit. >> right i think there's an agreement that could be had consistent with what the american people want and consistent with this country and an agreement there but many democrats are more concerned about politics and the political benefit they think this will give them this fall than they are with solving problems and doing what the american people elected us to do. >> fascinating stuff as always thanks so much congressman appreciate your time this morning thank you. >> thank you ashley. >> we've told you the stories of apple employees running into the glass walls that their new headquarters. but now we have actual transcripts of what went down. not going to believe it, that is next. >> ♪ whoooo.

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>> workers with apple calling 911 because they keep walking into the glass walls at the new headquarters, do you know what that could be painful right? liz: here is what's going on. apple futuristic $5 billion new spaceship campus they thought

this would help the work flow. people would not be distracted they would get to their work faster, turns out they're on their smartphones walking into walls. it was so bad that last year, a building official from cuppertin o, california visited apple saying you're going to have problems with this people walking into the walls and right when he was meeting with them somebody walked into the glass wall. >> are you kidding me? >> at that moment last year so you know, it's disorienting to work in a circular environment anyway. >> it's just a wall of glass that is circular in nature. liz: that's right. >> it's just so clean apparently they do a great job of cleaning the windows they keep walking into it so you think it's people looking down at their phone because we see it out on the street in new york every day they bump into something. liz: that's right now people are calling three or more phone calls to 911 people getting head injuries, concussions, cuts on their forehead so apple is saying we're sticking with the

design. >> at least you wonder from a legal point of view whether this has been raised and they do nothing that whether they leave themselves legally open. liz: i don't know. >> or they issue crash helmets to all their employees. it's a beautiful looking building but my goodness. liz: i don't know if i want to work in a circular environment it feels disorienting anyway. >> doesn't take much to throw me off. >> mississippi senator thad cochran says he's stepping down on april 1 democrats are hoping they can get the seat as they happened in alabama, rnc spokesperson kayleigh mcenany will join us next hour. >> ♪ . .

ashley: good morning, everybody,

it's 11:00 a.m. we are close to it in new york. 8:00 a.m. in the west coast in california. i'm ashley webster in for stu today. here is what's new this hour. check this out, meet flippy, the robot-flipping robot. flipping hamburgers, cali burger in pasadena, could be the beginning of the minimum wage fallout. doesn't ask for time off, doesn't need vacation, doesn't need benefits, that's flippy the bo -- robot. xe is new york city the next big tech hub. we will ask the committee from california about that. plus majestic field, they stopped processing, how well would a company be affect bid the tariff proposal. we will ask the ceo what he thinks about that.

the story of the day and every day, your money. we are down 83 points after going over 100 in the beginning, we will get into that and so much more, the third hour of varney & company begins. ♪ ♪ ashley: breaking news happening right now, on cam -- capitol hill, the senate will vote on full bill, repeal parts of dodd-frank act. that should thep regional banks which you see on your screen, they are all moving lower in tough environment right now, but the regional banks are being hit hard by dodd-frank which weren't designed -- designed for bigger banks. forbes with the fastest growest city in america.

boise. joining us now peter mauricie, peter, most of the cities, no coincidence here are in low-taxed states, right? >> why would you want to go to new york and pay all those taxes including the family leave tax when you can go to pennsylvania and pay lower taxes and, you know, have blue skies and fresh air and good schools, why do you really want to stay -- mayor lindsey was told by xe to ative moving to connecticut, you can't expect everybody to live on the corner of broadway and 42nd second so you can tax them. every so often we have to repeat that. that's going on right now where you live, mayor belasio, they need to be taxed because they are moving. millionaires especially. ashley: number two on the list, peter, seattle had big growth in wages last year, 7.52%.

i don't think it's particularly low tax. >> maryland is the quality of life, they do have high taxes like minneapolis, it's such a lovely city and they were both settled by norwegian lutherans and you don't want to leave. unfortunately, your career dead ends if you stay in a place like that. ashley: call it what it is. >> instead of flipping hamburgers, it does anchors. >> number three on the list, dallas, top three texas cities, low taxes in texas. >> well, you know, texas is a great place, they don't have a sales tax, they don't have an income tax and they are only 11 regulators in the entire state and most of them have been buried under the alabama, you just about have to burn down city hall to see a regulator in

texas. ashley: god bless them. number nowr, orlando, strong wage growth up nearly 5%, lots of hospitality business in orlando. yeah, that's a cluster effect. it's like antique dealers. one of the few things that if there are two side by side they do better than one because of a variety of products. the same goes for theme parks. the real temptation is will the city think it has monopoly on theme parks and start taxing out of them. i'm convinced that there's a special gene like for anemia and that gain is -- gene is called politico. ashley: i wonder what bagebor is. number five, i have to get through the list, fort worth,

texas, they are strong wage and job growth, population is up significantly. a lot of people going to dallas-fort worth. >> the thing about is land prices are lower than say in houston and the climate is better. actually dallas has a pretty decent climate compared to houston, no natural barriers to growth the way they are in new york, hudson river and so forth. ashley: you don't mess with texas, bottom line, peter, great stuff, great tour of the country, thank you so much. >> take care o. ashley: all right, let's check the big board for you, dow 30, stocks as we said fishy, sitting right around session lows, 86 points down and 788, a lot more selling than buying as you can see on the left-hand side f my eyes are right, intel is leading, i can't see the bottom-right-hand

corner, more sellers than buyers for sure. let's bring in ryan payne, payne of capital management, any -- hy get or player. >> that's right. ashley: we are looking ify on the market. there's pushback on president trump's tariff proposals from people of his own party and maybe not. >> day-to-day unfortunate market will not go on linear -- ashley: why not? >> all right. ashley: where do we go from here, can be tough for average investor when you have one decent headline, market goes up, next day somebody says something is considered off and the market falls 200 points, how do you play that?

>> you have to look at underliers of the market, they are called goldilockses economy, inflation hasn't come up, employment numbers came out which is positive, global growth around the world, not only are companies in u.s. growing out earnings but you are seeing on a global basis too. it doesn't happen all of the time. if you look at the last nine years, it's a u.s.-driven market. all those dynamics are changing. ashley: only game in town. >> yeah, that's not the way it is now. ashley: rising interest rates should be considered a good thing because it shows the health of the economy, it's tougher because it costs more money to borrow money to expand, there's negatives to that as well. it also gives competition to equities, right, because the bond market looks more attractive with the yield. >> that sounds about right but in practicality and in ten-year treasury it's not even 3% yet. it's not that attractive even if rates do move up here, i don't see that being a driver to put

money in the bond market all of a sudden. >> we get february job report friday and does good report give us the second leg up? we were getting close to 25,000, do you see another leg up? >> i think part for the course. we are expecting a good job's number on friday, i think that's what you'll get. that's probably baked in the market. that's not going to be something that will blow somebody's socks off. i don't think that's going to affect the market m. ashley: any particular sectors you like right now, ryan? >> i love housing market. i think it's a great place to put money. let's face it, millennials are finally moving out of parents' house, form families, that's going to drive the housing market for the next couple of years. ashley: we will have to leave it right there, ryan, the get or player. >> thank you. ashley: some individual stocks, amazon at all-time high. same story over here, there you go. same story with netflix both

doing well, amazon up nearly 10 bucks, 1533 up, netflix at 321. new fancy-noise canceling headphones from apple, that sounds pretty good. that train is noisy in the morning. i can't get on a quiet car. we will get into that a little bit more but apple got another product coming out. headphones, you can go to restaurant recommendations, the stock, alphabet up slightly, 1,096. meanwhile goldman sachs says gm and ford would be hit about $100 billion worth of profit if steel tariffs are enacted, according to goldman sachs, forbes down slightly today, general motors, ge is up 1.01, flat for general motors. all right, this is another story we have been talking about, getting weather update, the

northeast bracing, oh, boy for another big winter storm, heavy wet snow, strong winds expected starting tonight and continuing into tomorrow and thursday. i can't wait. new york, philadelphia, boston, all in the storm's path, if you're flying into the northeast, tomorrow, watch out, there could be problems, part of new england could get more than a foot of snow, how exciting. last week's nor'easter took a tree believed to be planted by george washington. the storm ripped the washington mount vern nonin virginia on friday, terrible storm on friday, nor'easter the particular tree, 227-year-old canadian hemlock could not survive those winds, by the way, the nor'easter uncovered revolutionary warship in maine, the structure of the boat appeared in beach in the town of york yesterday, the ship wreck has appeared before. it only happens when a major storm passes through the area dragging enough sand away to

unveil the buried treasure, kind of interesting. mississippi senator thad cochran to retire because of health issues, democrats hoping they can flip the state from red to blue, good luck in mississippi. a federal judge says the trump administration can continue to withhold a one million dollar grunt to california over sanctuary state policies, judge andrew napolitano coming up on that and we will not talk with oscar's coverage but i have to mention this number, this year academy awards hosted by jimmy kimmel, lower rated oscars ever, 25 million viewers, that down 19% from just last year, glad to share the number with you. stay tune, the third hour of varney & company just getting started last years' ad campaign

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ashley: now this, a computer glitch caused hundreds of high school students to believe they've been accepted to the university of colorado at colorado springs when unfortunately they hadn't. the school mistakenly sent out 11,000 emails that read, welcome to uccs mountain lion family, they all went, hey, morn 100 students had been denied acceptance so the college received that e-mail as well. kind of cruel computer glitch for those students in colorado. to politics thad cochran will step down and democrats hope to go change state from red to blue. kayleigh, great to see you. >> great to see you. ashley: we don't want a repeat

in alabama, are you worried about mississippi? >> i'm note worried. we are going to have great candidates out of the state of mississippi, we trust voters to empower the right choice to lead our party in the state of mississippi when it comes to the senate races that will be down there, two very important senate races, we have to keep those seats read but, look, we are encouraged because mississippi is red, donald trump carried the state by 18 points and they haven't had a democrat since 1982, we are optimistic. ashley: talking which the midterms get underway in texas today, obviously a strong red state, any concerns there? >> no concerns there, but i think you should have some concerns if you're a democrat because what we are seeing in a lot of the primaries are the far-left flank of the democrat party attacking the democratic establishment and what that means is that democratic voters in the state of texas are left with two bad choices, do you want the corrupt hillary establishment or socialist bernie sanders, most voters are very moderate and don't quite

want socialism and definitely don't want to hillary corruption. ashley: interesting to follow that, on the other side, president trump kayleigh, he put out tariffs on steel and alum, level the playing field, there are other paul ryan for one in wisconsin who are pushing back. how is that for the party overall? >> i think it's fine, this is a healthy debate. you know, a debate on policy, our party is united but i love that we have diversity on some of the minor issues, i would argue that this isn't a huge difference between the two sides, we look at ronald reagan, though, he leveled tariffs, like wise richard nixon put a quota on steel and george w. bush tariff on steel as well. it's not uncommon to see the divisions on this one issue in particular. ashley: and just very quickly, gun control could also be a very difficult issue. you know, republicans not in agreement, the president saying he's open to perhaps some

reform. does that create a split within the party? >> well, there's disagreements, yes, but we have a pragmatic president at the top leading us forward and that's what we need, someone who can put partisan aside and lead us and we have ultimate deal-maker in trump. ashley: thank you so much for joining us. >> thank you, ashley. ashley: okay, now this, 2018 vote, florida senate approved safety plan to allow some teachers and school staff to carry guns, the plan will impose 3-day waiting period on gun purchases and raises minimum age of purchase from 18 to 21. the bill is heading to florida house of representatives, thought you want to know that. take a look at bitcoin just under 11,000 at 10922, down 662 bucks. that is bitcoin at this hour. take a look at paypal, by the way, paypal may get into crypto currencies, reportedly has filed

for a patent, a system that could speed up bitcoin transactions and be anonymous, not big impact on the stock, paypal up 22 cents at 79.32. pennsylvania attorney general is suing uber for not disclosing a major data breach until more than a year after it actually happened, we will have the judge on that issue, and this, housing cost in san francisco have gotten so expensive, how expensive? well, middle-class workers are moving into dorms and you won't believe how much they cost per month. >> wow. ashley: that's san francisco, and forbes has come out with a new billionaire list, i checked, i'm not on it, what they call the meet the members of the three club, can you take a guess who topped the list? we will tell you next

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is number four, mark zuckerberg tops the five people, those are rich dudes. check this out, ferrari unveiling the most powerful v8 in history at motor show, twin turbo 3.9 litter engine, two-seater has a 211 per hour top speed, 0 to 62 miles per hour. i don't know why 62, but can do it in 2.85 seconds. the price, well, hasn't been confirmed but you can expect at least $250,000. the 1.6 million venomf-5 making debut, 1600 horse power car, expected top speed of more than 300 miles per hour, only 24venoms will be built, ten of which have been orderer forked. hopefully i can get it by the end of the year. a couple in florida loves target so much they took wedding photos

there, michael and isabella, said they made so many trips in local target when they were dating, felt right to have wedding photos, they go to target 2 to 3 times per week. that is the kind of stuff that target wants. china, may -- will likely fall into the earth's atmosphere, during those dates look up, expect today land in southern europe, we should be okay here. anywhere from spain to greece, hopefully it will be des -- desintegrate before landing. how would a company like this be affected by president trump's tariff proposal? we will ask the ceo next.

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ashley: well, things went south, check the big broader and the dow 30 for the lows to have day, dow down 130 points, we were up

about that much at the start of the day so it's been a big turnaround, as you can see stocks in the red in the dow 30 than the green. intel leading the -- the dow at this hour but certainly a selloff of sorts. let's check the ten-year yield, 2.86%. nothing great there. has been up about 2.9%, so the yield on the ten-year not exactly, you know, worrying investors but there you have. let's turn to politics now, president trump will be welcoming sweden's prime minister into the white house. blake berman there as always. blake, a change of plans for the agenda this meeting, right? >> yeah, potentially, this was ashley, is going to be rather the first visit to the white house from the swedish prime minister, other leaders from the region have come as well. in advance, they had put out the swedish did, we want to talk growth, innovation, job creation, defense, et cetera, now after the president has made

announcement on tariffs, you can expect that to be a huge point of the talks here, in fact, sweden's enterprise, innovation are told news wires there the following, quote, this visit is now each -- even more relevant and important, we have chance to talk with president before they make final decision, you know the stance that the european union has taken in response to the president's measures, now you have world leader from within the eu coming to the white house so you can expect that to be a focal point and potentially even a message delivered. by the way, ashley, it's going to be a press conference after this with the two of them, so we are going to at least expecting from the media trade, tariffs and even potentially north korea, the president might have to answer. ashley: very interesting, blake berman at the white house. blake, thank you very much. mnuchin said that the president's proposed tariffs won't apply to canada if méxico

if nafta talks are successful. joining us now, the ceo of majestic steel, you're in the steel and know about cheep chinese steel or from else where, you have to compete with it, what's your take on the president's proposed tariff? >> hi, ashley, how are you doing? ashley: go ahead, give me your opinion, if you can. >> yeah, my opinion on the proposed tariff is, you know, there needs to be -- we need to take action, we need to do something. you look at the steel industry, globally over the last 20 years, china's capacity has risen to 800 mill tons and we are in a global over capacity and u.s. has been the dumping grounds for steel and that cannot continue. it's not a simple solution but when you take action to prevent continuing to be the dumping ground for steel in the world.

ashley: is china the biggest abuser of this todd, or are there other countries in the world that tend to dump their product in the united states? >> yeah, there's others as well, china has been the biggest abuser. we put tariffs in place to protect china dumping here and where they are taking product from china and shipping to other countries and still bringing to the u.s., so it's really been a guacamole game where you try to handle the issues as soon as you make one move, the issue moves some whereelse, unfortunately this this is the action you have to take to continue the guacamole game. ashley: is 25%, would a 25% tariff create a level playing field? >> i think it's a start. i think that it's not as simple as that. i think longer term you have to look at it at entire supply

chain. steel, you know, there's so many products and markets that it's going into and it's been produced in so many different countries, i don't think it's necessarily long term a simple solution, if you look at the big picture, right, we have seen capacity shift across the world where the u.s. is now making about 5% of world capacity and we have seen the domestic steel industry deteriorate over the years and so we have to have a long-term plan to make sure that we are not dependent on other countries for steel-making, that we are dependent on the u.s. and that we also think about downstream because you can't just have that negatively impact the manufacturing sector, you to make sure downstream we are continuing to make things here and we are not penalizing them. ashley: yeah, very quickly, i have 30 seconds, you know, the reaction by other industries has not been as positive, they say, look, this is going to lead to retaliatory trade war where everybody loses. >> yeah, i would say that we have already been in a trade war and we have been at the wrong side of that and this action is

fighting back. i think what we need to do, though, is have a longer-term solution so we continue to make steel in the u.s. and we don't affect downstream manufacturing because it's important that we think about this from the big picture and not just from one perspective. ashley: all right, very interesting, todd, thank you very much for joining us, appreciate it. >> thanks for having me. ashley: former trump aide now says he will probably end up cooperating with special counsel robert mueller, change of heart coming after a bizarre interview with cnn, roll tape. >> you're sitting very close to me. >> yeah. >> we talked earlier about what people in the white house were saying about you. >> yeah. >> i don't know if you were drinking or on drugs whatever had happened today, talking to you, i have smelled alcohol in your breath. >> well, i've not had to drink. >> so that's not -- >> no. >> so because it is the talk out there, i know it's awkward, let

me give you the questions. >> my answer is no, i have not. ashley: all rise judge andrew napolitano back here was. judge, the question people are asking, can we take anything that he's given the serious of interview. >> i think he took charlie gasparino's advice. bob mueller is not going to let anybody -- exactly. and either he has acknowledged that he needs help or he came to his senses at the end of the day, but we may see more about this today, i really felt that when blake berman was ticking off what the president might be asked about when he had the joint press with the president of sweden, north korea trade,

nunberg. 2014 to 2015. and when donald trump sued nunberg for $10 million, you're speaking about me publicly and you know what nunberg counterclaim was you used trump organization to fund campaign-that's a felony, guess what happened to the lawsuit, it went away. [laughter] ashley: another one for you, judge, the trump administration can continue to withhold a 1 million grunt to california over its sanctuary state policies which i didn't think they could do. >> this is very odd because we have federal judges disagreeing with each other. we have a federal judge in chicago saying you cannot add strings to the cash after the fact. if you want the strings on there, they have to be on there. by the way, trump has been in

office for 14 months. no budget has been adopted, so they are no strings even though republicans in the congress, now you have a federal judge saying, i'm not going to enjoin the president at this stage of litigation but i will hold a trial, i will decide if it's fair and i will decide what the law is, so this is not a ruling on the merits, this is a preliminary decision even though colleague in chicago did restrain the president and the attorney general from holding back funds. mainly law enforcement funds. ashley: all sorts of topics, pennsylvania turning filing lawsuit other uber. >> i don't blame him for doing that at all. pennsylvania has some of the strictest guns in the country requiring immediate revelation of hacking, you know, you're hacked, you can't stop it but you have an absolute moral and

legal duty to tell your customers that their personal information might be out there. so this wasn't just drivers, it was customers, drivers and customers. ashley: what we have to prove they knew about it in such and such a date and didn't reveal it in date. >> pennsylvania plugs a hole from the budget and it comes -- ashley: a lot of topics. now this, talking about a judge, the judge ordered martin shkrli to forfeit $5 million in asset, 5 million e-trade account, picasso painting and wutang. we have a reversal from united airlines scrapping id to give bonuses based on a lottery after employees complained. and it's flippy, that's what

they call it, the burger flipping robot. flippy is cooking hamburgers in caliburger, is this the beginning of falling minimum wage, could be? some claim silicon valley is over, could new york city be the next tech hub? we will ask, we will be right back. whoooo.

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...to find you the lowest price... ...on the hotel you want. don't sweat your booking. tripadvisor. the latest reviews. the lowest prices. nicole: i'm nicole petallides with your fox business brief. netflix has answer, disney getting ready for streaming service. of course, you remember that disney last year announcing cutting ties with netflix and have own streaming service with family-style focus. netflix says we are going to have controls, pin protection, give guardians and parents more control over what the kids are watching. they'll be more clear content ratings, more informed viewing and you will have the pin controls which you set and there will be a code in order to access certain maturity levels and if parents seen a certain film or movie, your to date,

disney down 4%, netflix up 4%. . i even accept i have a higher risk of stroke due to afib, a type of irregular heartbeat not caused by a heart valve problem. but no matter where i ride, i go for my best. so if there's something better than warfarin, i'll go for that too. eliquis. eliquis reduced the risk of stroke better than warfarin, plus had less major bleeding than warfarin. eliquis had both. don't stop taking eliquis unless your doctor tells you to, as stopping increases your risk of having a stroke. eliquis can cause serious and in rare cases fatal bleeding. don't take eliquis if you have an artificial heart valve or abnormal bleeding. while taking eliquis, you may bruise more easily... and it may take longer than usual for any bleeding to stop. seek immediate medical care for sudden signs of bleeding, like unusual bruising. eliquis may increase your bleeding risk

if you take certain medicines. tell your doctor about all planned medical or dental procedures. i'm still going for my best. and for eliquis. ask your doctor about eliquis. ashley: repeating the news from the treasury secretary this hour, he says the president's tariffs will not apply to canada or méxico as long as nafta renegotiation talks are successful. canada or méxico not included if they can get nafta sorted out.

you can see the dow there up 127 points. and this, the senate just voted to proceed with the bank reform bill, the vote was 67 to 32. now they will debate the bill. it will ease regulations by the way on small and mid-size banks, expect today pass later this week or early next week, could be good news for regional banks even though they are moving lower in today's market. cost in san francisco have gotten more expensive that middle-class workers have move intoed dorms. wait list of 8,000 people. now the dorm rooms are about 130 to 240 square feet, shared bathrooms at the end to have hall, no individual kitchen or living room. they cost anywhere from 1400 to 2400 a month, that's with utilities and wi-fi included. how generous. now google planning 2.6 expansion of new york city

offices, this comes as some tech workers say, silicon valley is over. joining us now is sean republican committeemen. i love the hat, you look dapper, are you worried about exodus of silicon valley? >> i actually welcome it. we have been watching this for 20 years. california is outmigration people, we lost people and now san francisco the number one city in america losing population because it's become a south american plantation with the wealthy elite with 90% of the people serving the elite. it's a war against the middle class. if you have a u-haul trailer san francisco to vegas 2, thousand dollars. opposite way from vegas to san francisco, $100, what's the market telling you right there. ashley: that's insane.

>> san francisco is insane, you have it the same kind of level of diseases with hepatitis and other infectious diseases in a third-world country. remarkable what's going on in san francisco. the mayor wants to go to jail, he should go to jail for that alone. ashley: god for bid that you have any other view than liberal view because there's no tolerance at all. >> well, here is the irony, it's left-wing versus left-wing. left-wing versus elite and hard core anarchist. they have buses following the google buses that takes techs out of city, people are shooting at the google buses, that's not a very friendly environment. ashley: that's incredible. sean, as you just mentioned, san francisco mayor farrell is

willing to go to jail, basically the same like mayor of oakland. i feel like these people, politicians are encouraging people to break the law and putting their citizens at risk for illegal aliens to maybe criminals. >> it's actual literally -- our gang lookouts for organized crime. the ice had -- when they do raids, they are looking for illegals with criminal records not people that are trying to mainstream and be nice, they are going after bad actors. and they had a thousand targets but they only got 200 because to have mayor of oakland. this is a criminal obstruction charge. this is something the u.s. attorney ought to look at and by the way, we don't have a u.s. attorney that trump has been able to appoint in san francisco because of liberal senators. san francisco is literally a

disease town with disease politics and number one building is one of the greatest architectural catastrophes is leaning to the side, the so-called millennium building for millennials, a perfect metaphor. ashley: leaning to the left. i have to ask you, sean, what is it like being republican commitman in california, i would imagine an endangered species? >> that makes unique character. i live in orange county, we have islands -- there's still 5 million registered republicans in california, it's the biggest republican party in the country, but we have a whole new level of -- i figured my job on the rnc is to export republicans to the south, to the midwest, the upper midwest and we are doing a heck of a good job of that. ashley: keep up the good work. it's not an easy task, i know that in california, sean, thank you so much for joining us, i appreciate your time and how

dapper you look as well. thank you so much. what a character. flippy the burger flipping robot. is this the fallout of minimum wage? more varney next. mom, dad, can we talk?

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ashley: check this out. a robot named flippy, we have been showing all morning is now cooking burgers at fast-food restaurant. joining us to talk about is apple metro ceo, we were just talking about this in the commercial break. is this stwhat of a reauction to let's keep hiking the minimum wage, at some point to make it more economical like flippy will be used? >> sure. ashley: would you use something like flippy? >> we are in a different space where we have a counter between you and the guest, we are in a

table service business, so we still need to have and probably always need to have a personal touch to it, can we get more mechanicallized, yes, we are doing that with table top. ashley: ipads to order. i know you like the personal touch but automation ultimately is going to take some jobs? >> there's no doubt. it's everywhere. it's taking out auto-driving cars. and the trend more and more in the food business, has more channels, ie, prepared foods in super markets, whole foods on delivery, home delivery, more and more channels so our -- our challenge is to make people want to come to us vis-a-vis the other channels and how do you do that? ashley: create a difference. >> how do you do that other than warm-kind of feeling and good service.

ashley: always important, believe me. i wanted to ask you about mcdonalds, going to fresh beef for quarter pounders, but 14,000 of restaurants, you're telling me you did this. >> yes, we did. ashley: six years ago. not easy transition. >> it's a whole different business quite frankly when you are dealing fresh food versus frozen food. >> what's the difference? >> first-born illness first that there. the freezing process and all that keeps that out, your storage and inventory control, it has shelf life, put it in freezer, we call freezer pulls, you pull as you need, if you have fresh food, you have a shelf life for that food, three days, four days and all of a sudden the red meat starts turning brown.

from where you buy it from and where you handle it, chop meat has more tendency for illness. ashley: good move for somebody -- mcdonalds? >> i don't know. we will see. ashley: great stuff as always. >> thanks, ashley. ashley: thanks for being here, we will have more varney after this. . . . .

ashley: we started the day so brightly up 100. but now we're down 100 on the dow, although charlie brady, our senior editor, pointed out of the losses on the dow, 60% of those losses are boeing and

unitedhealth. not sure why. maybe tariffs for boeing. >> the market is struggling for direction. paul ryan came out with negative comments about the president's tariff. >> we did our best. have to leave it there. connell mcshane is here. connell: welcome to cavuto coast to coast. i'm connell mcshane, filling in for neil. despite pushback for his own party. we've seen stocks move up and down. certainly more down than up. reports on division in the white house over the tariffs. comments coming in from capitol hill, the speaker of the house, who seems to talk the president of the ledge on all of this, that would be his point of