with delaying additional departures but i think better to get in my opinion, my opinion always gets me in trouble i think better to restructure, and get the president's team together same personality as them. >> great to see you again news of the day mike pompeo new cia director rex tillerson is out, thanks to panel this morning let's get to stuart varney continuing coverage of the breaking news. >> thanks very much indeed pi politics rules shake-up in administration just announced rex tillerson out. mike pompeo in. as secretary of state good morning, everybody. now the president tweeted this moments ago, this is about the change, mike pompeo director cia will become our new secretary of state. he will do fantastic job thank you to rex tillerson for service gina will become new director of the cia and first

woman so chosen, >> more politics for you western pennsylvania is a referendum on the president's style and the president's policies. it is a special election. polls close and we'll know if president trump's full rick is enough to have the surge for carter lamb. a gop win would be a vote of confidence head hadding towards it the midterms. and democrat win would be a big setback for the trump growth plan and a hit to trump's presidential style. moments from now, air force one takes off for california. the president is going to the belly of the beast. the center of the resistance movement. he will inspect a prototype of the wall and he's walking right into the fire storm known as illegal immigration. there will be intense maybe violent demonstrations, and that itself may affect the immigration debate.

and then there is hillary clinton at it again insulting middle america she made a speech of her deplorable comment before the election. and she made that speech in india. yes on foreign soil she calls americans racist and sexist. we have yet to see any leading democrats condemn her remarks. my fellow americans have we got a show for you. wait with until you see what market is doing. "varney & company" is about to begin. all right we're going to get right at it big shake uup rex tillerson out at secretary of state mike pompeo in liz this comes in the milings of the proposed mealing trump kim jong-un north korea. >> that's correct and rex tillerson has been at odds with the messaging coming out about

north korea and it has they said surprised that north korea offer to talk. and then said it is not surprised. then started saying we are week away and not going it happen any time soon. this is -- secretary of state who has been publicly mocked and sneered at by a president in tweets. so he's often been at odds with the white house. he was caught out and caught by surprise at north korea's offer to talk and started give out mixed messages about it. >> show me please the future market let's see where futures are. because ash, before this news came out futures were up. 130 points. on the back of some good inflation news. that's what i think that's what the market focuses on. >> it does look we have the consumer prices out for the month of february. they rose just .% that was in line what was expected we have a nasty shot why consumer prices pup a half percent that rattled market so fear of inflation and a fed stepping in to raise interest rates quicker than markets would like. but we did not get this in in the february report. so initially before the announce

m on tillerson markets were showing nice gains. now still up what about 60 points. >> i should tell now president trump will leave the white house is on his way to california. he may speak to reporters before he boards marine one if he does you will hear what the president has to say. i want to gate back to stock futures let's see where we are going we're up about 60 points as i said a moment ago, we would have been up 130 odd points but then came announcement about rex tillerson up 65 points. jack is with us this morning. jack, is this a negative, this move is this a negative for stocks because it is more turmoil at the top in the white house? >> yeah, i mean i think i'll call it speed bump curet it is certainly not a surprise if you remember what was in middle of last year i think teller son called trump a moron and then trump came back and talk an iq

test and know there was tension between, between the president and secretary of state. i would say it was a surprise on the eve of, you know, north korean talks that, the president got rid of rex tillerson and replaced him so that was a bit of a surprise but you think you're seeing right now playing out in the stock market. the fact is futures were up a lot. now they're up just a little. >> but it is another turnover at the top. we've just finished hearing about -- the chief economic advisor, gary cohn, he's out. no replacement yet. not formally at least. u now tillerson out, mike pompeo in, that worries the market doesn't it? when you have that kind of turnover at the highest level of the administration that's the problem for the market. >> it is. it's the -- it's thing instability going on in that, you know, in the white house. essentially, and so you know we don't know what policy will be.

we don't know what direction they're going. and that is a cause of uncertainty for the environment and seeing it reflected. >> can i jump in for a second had it not been for philer son announcement just resting market performance todays on the inflation report we would be up significantly right? >> i think so. i mean remember the one worry on the economy was overheating and the -- and the fed would have to step in. i would say right now -- probably the biggest size of relief we're hearing are from the federal reserve themselves they don't want to have to step in if they don't, aren't required to. but to have steady, slow, increasing inflation is is probably exactly what, you know, jay powell would have written himself. >> jack a or very timely performance this morning. we preergt it. thank you very much indeed sir, good to see you. >> totally different subject now here we go i.c.e. agents did manage to interview an inmate in

a sphrifng san francisco jail earlier this month and calling that a deliberate effort by the fed to find weak points in her department's pro illegal state laws here's her apology. i'm quoting now. my staff made a mistake. and i have to hold account accountable i feel embarrassed by it and taken steps to mange sure it never whats again. look who is here acting i.c.e. director how do you react to that tom when you have of the sheriff of san francisco apologizes for allows you guys into the jail? >> it is just incredible. think about it you have law enforcement leadser apologizing for a federal law enforcement officer. to have access to someone who is o in the country illegally and was arrested for committing yet another crime, and apologizing for it. it is just ridiculous. >> nancy pelosi has repeatedly called mr. trump enforcement efforts cowardly that's her

words. i would like your reaction to it. >> well not only to say cowardly but i.c.e. was terrorizing imrangt communities. first of all you're talking about law enforcement offices. these are men and twheam put their lives on line for this country every day. they strp a gun to their hep and leave safety and security of their home to defend had this nation. how dare you call them cowardly and to say that we're -- terrorizing communities people arrested during california operations, loot -- acts with a juvenile, about assault with deadly weapons, murder these people were terrorizing communities and i.c.e. removed from the community so that's far from terrorizing but protecting american public. >> going head-to-head in california on the issue of illegals. if i say he's going into the belly of the beast, you wouldn't take objection it that? >> one big belly of the beast but orr bellies you have chicago, new york you have denver a lot of things sanctuary

cities to address. but yeah, california right now that's -- that's where all of the news is at. >> now, as you know, obviously, the federal government is suing california over these sanctuary policies. are you still being blocked at that lawsuit was announced are you still being blocked? >> absolutely, and if you watch the governor give a press kfns last week called administration liars because we do have access to the jails. well egg that san francisco apologized we have actually got access for a jail on one occasion and we have to remember that california sheriff association the governors own sheriff came out with a press release saying they were against these u laws and they are releasing public safety threats to the streets so they're upset is equally upset as isis. >> tom look thanks very much for join us today again it is a very important day and we appreciate your time on "varney & company." thank you, sir. much o obliged now i want to go back to the futures market for one second before the announce wasment was made that rex tillerson wases out as secretary

of state dow futures were up 130 maybe even 140 points. then came the announcement and we're now we're just up 60 points okay so there's been a change because of this turmoil in the white house that has been a negative it reaction on the market but it's not that profound still up 60ed a opening belch more ahead on president trump's decision to replace tillerson at state. the political and financial words are reacting and we are on it. of course, and how about this? a second round of tax cuts maybe -- president trump suggested it again. and we're covering it. this is "varney & company."

>> the brag news of the day rex tillerson out as secretary of state. mike pompeo in. joining us now congressman greg republican from oregon. congressman, this is more turmoil at the very top of the administration. u how do you feel about it? smg well, you know mike pompeo is a very talented public

servant in west point harvard law with kansas values he and his wife susan terrific people with the confidence of the president. you have turmoil many thissed a mrgs we know that. but president has great confidence in mike pompeo and concerned should as well market frankly ought to stable isize to take a look at quality of mike pompeo and he'll do a great job as secretary of state. fng okay i want to turn to something which you're introducing -- that is right to try legislation. now, this would allow for the use of unproven drugs for dying patients. >> that's right. congressman i'm told this is controversial and i don't understand why. if i'm on my death bed i will -- i want to be able to try anything and anything that will help me. >> that's right. and that's what this legislation does. you know, as a big priority for president trump, and mike pence the vice president has played a key role in helping us get this to a really good place with dr. scott and the fda helping as well. so that we balance patients

safety with the ability of a dying patient to be able to get help. you know, i'm going to meet later today with jordan's parents. he's got musk particular ties trophy big advocates for this legislation as is the vice president. and as is our members of congress because we want you to have that right to try. we want to make sure, though, that you're not being sold snake oil or something like that or being given false hope. so we've got propertier procedures in here to protect patients safety. but at the end of the day stuart you hit it on the head you're a terminally ill person there's a drug out there going through its trial that holds great hope to save your life we think you ought to save your choice. >> what about liability? do you ab, the treatment? >> we do. we do. we take care of that so it doesn't open door to the trial bar to sue but we try to empower the patient who is terminally toil get one more chance to save or her life by taking

experimental drug that's working its way through that hold great promise. that's what this is all about. senator johnson moved a bill unanimously through senate. we heard are from the fda about some improvement, the vice president played a key role in this and we think we have a good solid product on the house floor later todays. >> yes, sir. greg thank you very much for joining us. very important subject we appreciate it, sir. thank you very much indeed. now this, president trump has blocked broadcom takeover of qualcomm what's the story? >> did this on recommendation by foreign investment in the u.s. baskly he said, in his statement issued late last night when he announced this, that there's credible evidence as the president that leads him to believe the overtaking or buy of qualcomm might take action that threatens to impair the national security of the united states. they're concerned that what they call leadership in the next generation wireless technology would be squashed by based in singapore because they wouldn't carry on that investment leading

that particular area or development open to chinese companies. listen, went to say no threat to this country, in fact, it is better for you. we're combining our power with biggest. the biggest -- but the bottom line, in a one liner is, that president doesn't want china to have influence on our cutting edge technology. that's the fear. >> it is a chip it is a big deal and 5g is a big deal it's coming. >> liz, ash all good stuff. president trump is traveling to california speaking today 5 p.m. ian time that is. in san diego, and, of course, fox business will have full coverage it have. what do we have for you next i'll tell you house intelligence

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>> now, at this moment truch is speaking to reporters he's on his way to california we know

that andrew base got that. now he's speaking to tape. he know he's just said he disagreed. the president disagreed with rex tillerson on iran nuke deal and more on that tape and we will bring it to you as soon as we get it been but this is the breaking story tillerson out pompeo in at the state department and president is addressing that issue as we speak. you'll get more shortly. the house intelligence cheat says, no collusion. no evidence of collusion between the president trump campaign and a russians to influence the election. judge napolitano is here. now the republican on intel committee of the house say no evidence of collusion. does that influence the moore investigation? >> it doesn't influence it at all and helicopters frustrate mother to cherry pick from it and draw conclusions from it and other members of congress can

cherry pick from the same material and draw different conclusion. this is a committee that is really two cheats republican version of democratic version. it used to be one. because this is a patriotic not a political duty. to protect the national security secrets, the intelligence secrets of the united states. but doing opposite the cherry picking which secrets they want to reveal and doing it for a political narrative will this move bob molar in one direction or another? not at all he has power to subpoena, charge, indict, and incarcerate the committee doesn't. >> as soon as the republicans on the committee came out with this report saying no evidence of collusion, adam shift ranking democrat on parking the commentt out and said he made a personal comments about the president. an implied that there was something there. >> i -- i all of this and i don't

remember this whatting in any time in our history, the cherry picking of national security secrets or for a plel that arive it and i think, i think you might agree with me this is a dangerous precedent. and members of congress can do this. >> wait a second if the republicans on the committee say no -- no evidence of collusion, well then, isn't that also true of the moore investigation? because they have presented no evidence of collusion at this point, in fact, they've gone off on fishing expedition. every place else. bob mueller hasn't concluded his work at all. look at it this way putting together a jigs saw puzzle with 10,000 pieces and doesn't get them in rational order he can't finish part of the puzzle to reveal it until he finishes all. i'll tell you why. not all of his witnesses he can control. and -- if he says -- we're charging the president with this -- that is going to scare away withins on that. so these rorals that he's

looking at this he's looking at that. he's concentrating on this. yeah, he probably is but beginning to come out with everything all at once. >> again over this for well over a year now and spent over 10 million dollars on this thing. no idea it's just holding over everybody's head forever and forever. >> mueller has been there since last night so eight or nine, eight or nine months. i don't know when this is going to come out and i don't know wheres he's going to go. i know what he's looking at but i don't know what he's found and yotd know in the past three weeks he's got and a treasure-trove of information but witnesses he thought would never cooperate with him particularly from rick gates who is paul manafort's business partner and worked for donald trump when he was mr. trump. throughout the campaign, the transare suggestion and then into the first -- >> i have to tell you judge i'm frustrated about this. a senate investigation as well with not heard from them yet. >> even i who understand how

slow these things are are and -- how special counsels want to justify their existence and some of these -- they find something. >> nothing to do with the president. even i am getting a little impatient with this but i understand how long it takes to put puzzle pieces together. >> til tell you what will happen right about october we'll get an october surprise from robert mueller won't we? >> like we did from jim comey. in october surprise. trchght right. just to embarrass the president right before the midterm. >> did you know that the reason hillary clinton lost the election is because men told women not to vote for her. i've never heard anything like what she said in india. jim comey shall blame male telling people how to vote but never blame her defective self. she went to india to criticize middle americans say we're a bunch of racist. but india then she said, then she said what about conservative women voted that way because they were told to by their husbands, their boss, their son.

>> i do know a single human being told how to vote. >> hold on a second i'm told there's 90 sendings to go before we get the tape of president trump commenting on the tillerson removal secretary of state and the incoming of mike pompeo so you have a minute to go. and headline -- the president says he wanted a new team in place ahead of talks with north korea various ongoing trade negotiations. our blake berman did a nice job of running this down. he said look i very much pretty much what rex has done he felt disangtly about iran so we weren't really on the same page. mike mike pompeo different thought process i haven't discussed north korea much with rex which is really interesting given everything that's been going on. >> reached into fox news reporting that rex has not stone to president, quote, he is unaware of the reason that president is replacing him. >> few second to go before we show you that tape about 30

seconds. i should tell you that about an hour ago, before this news came out, dow futures were up about 130 because we got very positive inflation news at 8:30 eastern time this morning. there's no serious inflation problem as we speak. it is 2.2% year on year. that put futures up. now we're up 80 points because of tillerson removal of secretary of state. all right ladies and gentlemen, we have the tape. here we go. this is the president on the developments. >> work with mike pompeo noir if quite some time, tremendous energy, tremendous intellect we're always on the same wavelength. the relationship has been very good, and that's what i need as secretary of state. i wish rex tillerson well, gina by the way who i know very well who i've worked close will be first woman director of the cia.

she's gas standing person who also i have -- gotten to know very quell so i've gotten to know a lot of people very well over the last year. and i'm really at a point where we're getting very close to having the cabinet and other things that i want. but i think mike pompeo will be a truly great secretary of state. i have total confidence in him. and as far as rex tillerson is concerned, i very much appreciate his commitment that i wish him well. he's a good man. >> mr. president, mr. president what did you tell rex -- what it you say to rex? >> rex and i having talking about this for a long time. we got actually quite well, but we disagreed on thing what is you look at -- the iran deal. i think is terrible. i guess he say it was it okay. i wanted to either break in or o do something and he felt a little bit differently. so we were not really thinking

the same with mike, mike pompeo we have a very similar thought process. i think it is going to go very well. rex is a very good man i like rex a lot. i really appreciate his commitment to this service. and i'll be speaking to rex over a long period of time. >> mr. president -- >> i can't hear you. [inaudible conversations] >> no. i really didn't discuss it very much with him honestly. i made that decision by myself rex wasn't as you know in our -- many this country -- i made the north korea decision with consultation but i made that decision by myself. >> i actually got along well with rex. but really it was a different mindset it was a different thinking. [inaudible conversations] what? >> say it again. >> why --

yg now? >> i respect his intellect i respect the press that we've all gone through together. we have a very good relationship for whatever reason chemistry whatever it is why do people get along? i've always right from the beginning from day one, i've gotten along well with mike pompeo and frankly i get along well with rex well too and i wish -- rex a lot of good things i think he's going to do, going to be very happy. i think rex will be much happier now. i really appreciate his service. but with mike we have had a very good chemistry right from the beginning. well it sounds to me i'm speaking to theresa may today it sounds many me like it would be russia based in all of the evidence they have. i don't know if they've come to a conclusion. but she's calling me today. and as you know now we're going to the wall. we're going out to the wall

we're going to be looking at the prototype which is very important for our country but theresa may is going to be speaking to me today. it sounds to me like they believe it was it russia and i would certainly take that finding as fact. >> mr. president, do you believe -- response from the united states? [inaudible conversations] >> as soon as question get the facts straight, and we're going to be speaking with the british today we're speaking with theresa may today, and as soon as question get the facts straight, if we agree with them, we will condemn russia or whoever it may be. but i have not spoken to her but speak to her some time today. [inaudible conversations] >> we're very happy with the decision by the house intelligence committee saying that was absolutely no collusion with respect to russia and it was a very powerful decision a very strong decision. backed up i understand they're

releasing hundreds of pages of group and -- prof and evidence but we're very, very happy with that decision. it was a powerful decision that left no doubt. so i want to thank the house intelligence committee and all of the people that voted it shall [inaudible conversations] i'm looking at larry strongly but don't it agree on everything and i want a opinion but we agree on most. he now has come around to believing in tariffs as also a negotiating point. i'm renegotiating trade deals. and without tariffs we wouldn't do nearly as well. but larry has been a friend of mine for a long time we backs me early in the campaign. i think earliest one of my original backers he's a very, very talented good man, and i larry has a good chance. i'm also speaking to many

others. but i think larry has a very good chance. thank you all i'll see you -- i'll see you at the wall. i'll see you at the wall. >> outcue for you i'll see you at the wall let me wrap this up. the president has -- rex tillerson is no longer secretary of state he's now mike pompeo is in. the president was explaining that moments ago. to disagreements over iran nuke deal, and rex tillerson secretary of state then was not in the loop about that meeting between the president and kim jong-un of north korea. one reporter asked himming the russians and use of maybe their use of nerve agent in london to critically injure two former spies in london. the president said we've got to get the facts straight. he's going to talk to prime minister theresa may later on today. and if the facts point to the russian doing it, he will condemn the russians. last point on larry kudlow

someone that i have then for many, many years, he's a fine man. a truely good man. he is being considered for the top economic advisors job in the white house. that from the president moments ago. now the stock market has been open for all of five minutes. and we have a gain of 100 points in the very early going and as you can see we've got the dow industrials of the 30 stocks 26 of they will are up. now when this news and i'm joined by the way, by elizabeth macdonald ashley, and kr barr it been and mike murphy all or star teal is here on a very big day. first to you mike murphy now i think the market will react primarily today to inflation news which was very, very good as oppose to turmoil at the top of the white house news. >> agree initial reaction to the trump news, but then market will look yongd that and a the concern of inflation overheating and getting out of hand and causing interest rates to go higher. faster -- should be alleviated and should clear the way for markets to make new highs.

good news on inflation is big news for the market today dr? >> absolutely. we look at the size of the bars this premarket traightd how much market moved when the inflation news came out and it moved a lot when the -- tillerson news calm out it moved a lot. spot on stuart. and yield on tenure treasury because that's always the concern if you have any news on inflation do interest rates go up? well they didn't go up. we have what is it 284, in fact, on the ten year treasury yield. not bad. quickly an update here we're up 1167 point on the dow jones is industrial average. can you show me the big text i would love to sew what they're doing in early going i think they're up. i think actually they are leading this market. i can tell you now, that we have amazon look at that 1,614 a share it has crossed easily to 1600 barrier. facebook is at 185 and look at apple 182. as we speak -- all of them up and microsoft is

at -9d 6 just touch 97 very brieferly alphabet strong 11 bucks but 1177. so they are leading this market higher. >> is there any else place to put your money? again we've talked about it a lot if you're looking for growth, this is where you're going to find growth so stay with hot hand right here. this is where you want to be, and any sort of pullback like we have four to six weeks ago is an opportunity to the position. >> what was apple there 180, 182 bsh it hits 195 and for a trillion dollar company dr. and that is the mike is exactly right. you want growth you've got to stay there. i like the banks as well buzz all of the tax advantages, and the deregulation is going to help them a whole bunch. >> apple will hit it and be the first one trillion here's why. they're doing a big buyback push again, when you do stock buyback that makes earnings for share look great. market likes that so it will pop that stock high per to be the first one trillion markets.

>> that's interesting i didn't know they would announce stock buyback program. big push hundreds in stocks buyback. all of that moneybag into their own stock and up it goes 180 almost 183. on the left land side of the screen president trump just coming out of marine one, is on his way to board air force one, he will then take off for california by the way, he speaks at 5:00 eastern time this often. he'll be speaking in san diego. he's going there to expect the prototypes for the wall. he will speak at 5:00 eastern and we guarantee to cover it all. there is -- the thumbs-up sign is off. he's into -- after the wall he's on his way to the belly of the beast as we like to say that would be -- california. >> of the heart of the resistance let me also pongt out that there is this special elections day in the pennsylvania 18th congressional district. that's a referendum on prumple his persona and how he handles the presidency and his growth

how that turns out may have complication for your money and certainly for the november elections. on your screens, intel is up. 2% very nice. j and y is up nearly 1%. caterpillar is up. mcdonald's 159. dow idaho upon the 71 dollar per share. take a look at broadcom also take a look at qualcomm after president trump blocked the deal. we have broadcom wanted to take over qualcomm but they are based in singapore. qualcomm has very interesting 5g technology. a lot of technology. the president did not want china to come anywhere near qualcomm's technology and nix the deal. >> clear that traders believe broadcom was overpaying look they're up -- 2.5%. >> and if i can add on we own qualcomm someone will acquire qualcomm and we own it a little bit higher than this but this is a great opportunity to own a

quality company that has been underperforming market to see more mna afnght within the chip. but i like qualcomm here. >> as we emerge into the trading session, looks to me like the inflation news -- up 2 president 2.2% year on year month to month. 2.2 month to month. that's taking the energy and -- ing yeah i think that's the prime mover we're 117. talk about amazon because -- what a push it is now doing amazon wanting to be and it is go to for household supply for many people in the united states. now wants to be the go to for office supplies that puts alexa in small businesses hooking up a jpmorgan chase for a small business credit card. it is basically saying, prime for small businesses you'll have office supplies free deliverly if you sign up with us and order office supplies through alexa so it's not just paper but it's also factory parts and so you

see under pressure. you see fast under pressure. you see office depot and staples under pressure now. maybe those two will merge because much amazon. >> i tell you the truth i do not have the stomach to buy amazon at 1,614 a share. maybe i should. maybe it is beginning to -- should i? >> you should not. >> should not -- >> anybody i think buying it up here if you want to own the big tech names you can boy a basket of them i wouldn't buy specifically amazon is up here at the level. >> okay now 1,613 a share up 15 bucks. okay. jpmorgan, has cut its price target on ge. >> 11. >> going down to 11. that's breakup value. first time in history 125 years ge said it didn't pay a cash bonus last year to top executives. >> right. >> you're not surprise ?td >> i'm not surprised. stuart you know i believe bonuses should be for merit not because you're in a position. i think this is -- a good thing.

you can see -- >> what about 11 dollars share? >> 11 declares a share that's the breakup value people are looking at between 11 and 13. we've been down below 14 and been down into the 13s on this stock. >> what point does it come out of the dow? i don't know. >> it's selling off it could yes because it's a price weighted index in relationship to other stocks they won't get wonky but 20 billion dollars worth of businesses which could keep that stock down because of that breakup. meaning that selloff of the businesses, and it is the oldest surviving member of the dow. stuart: go ahead mike. >> trade and multiple -- of their enterprise value so this analyst comes out and says it could trade down to 11 as breakup value. it could, anything could happen. but few believe any any turn arpgd in general electric and any value to their businesses, to pick any one part of the business for instance, the jet manufacturing business, if you

want to look at that, in an improving global economy, that is something where you should see growth so it is some point i think g serks worth a look down here. >> buy at 14. yeah. >> you are. we will. we own some a little bit higher and we will buy some down here to let the dust settle from this downgrade. but i don't put this is fascinating. >> wouldn't touch amazon but ultimate growth sell -- >> we have exposure to big tech through qqq a basket of the big tech so we pick facebook and -- apple to own versus amazon that should have owned amazon but i think ge is value here. so i'm willing to give it some time. >> okay look just update that market. look at it now we're up 169 points and going strong. >> yep. >> what's the biggest deal for the market? deal, is it tillerson out pompeo in? is it inflation very restrained? or o is it the pennsylvania election today which is a

referendum on trump and his style and his policies? what do you think? >> i think election will give it some most speed bunch either way it goes if it goes to republican side because the most recent poll it is show it going to lad the democrat. if we do that then we'll get a pretty good bounce i think. i believe this is all about what the inflation selling us that the fed is not going to further tighten up access to punch bowl. >> 2.2% inflation year over year up 2% month over month that's not inflation problem? flghts it's not a problem and dow is at 26,600 we had concerned about overheating economy. we had a big selloff in the market. so now. earnings are still is strong, and we're not having too much inflation in the market that tells me we should be heading back to 26 and then some. >> recession cause bare markets no where near recession we're tbroaing. profits are growing right? stuart: i don't to ignore the

news out of the national federation of independent businesses trying to look for it here they came out and said they're doing very well. small business is expanding growing trying to look for it. [laughter] [inaudible conversations] nationwide are have more confidence and showing more confidence they're it highing more people an spending more money and that is going to be a tail wind for the economy as question go forward. stuart: that's what they're saying small business economy heats up after years on the sidelines. i think that's -- >> they have a reason are to spend money with the new depreciation schedule is they have reason to spend money. stuart: we're 15 minutes into this it trading session. let me ree cap briefly here. about an hour ago, we learned that rex tillerson secretary of state is out. mike pompeo countrily at cia is in as secretary of state. okay he's got ton confirmed but that's what the president wants to do. that is turmoil at the top of this administration. when that news broke, dow futures because this was before the market opened, took a hit.

we went from plus 130 to plus about 30. then the market opened it, and we went straight up and now we're up 170 points the big deal here is the inflation news. it is not press. it's not threatening. and it is not raised interest rates. we're at 2.84 what was it on the tenure treasury. 284 and even was worried about going to three we're not. we're at 2.84% along the bottom of your screen you'll see it. nasdaq who ared big winners there put it up again briefly sir i can't squint. micron, lamb research western digital and broadcom all of them up nicely in percentage terms. now then -- joining us former david cameron strategy director, he's a brit and a british accent at least name steve hilton welcome to the show steve. timely appearance. >> how are you doing stuart

there's not enough beginning on. what are we going to do? >> i'm up in the air searching for news i'll tell you what, now the president just talked to reporters. and he said that if it is proven that the russians were involved in this nerve agent situation in london, the critical condition of two people over o there which is caused a raw in london if it is proved to get the facts straight. he will condemn russia. that's a break through, steve. >> yeah it's really good news and i think we need to see not just condemnation in form of words but some actions too. because in the end that is what putin will listen to because the truth is as you know stuart piewten has been going on like this and getting away for this for yearses he had that first chemical attack assassination in london in 2006 and basically nothing really happened he marches into ukraine and crimea nothing really happens. interferes in american election nothing really happens and

didn't change rulgt. but everyone can see they tried to influence a foreign election. and then you see this attack. so time after time he takes putin take aggressive move and doesn't face push back and that needs to happen after this. if >> what do you make of the observe per was white house, what do you make of this constant turmoil at the very top o of the administration? >> well, you know what had stiewrt, there's a very wise -- observer of the business scene who's actually a friend of ours staying with me right now. we were watching the news together. and he made a very smart point he said look, if someone -- opens, goes into a new area of business, and doesn't really know people many that area, in the first year, you'll expect that he's going to be learning about who he likes kind of people that are in that -- in that markets. final get a hang of people he

wants to hang around with him. he arrived new to politics if new people advising him on kinds of people to appoint and who to have around him. now he's been there a year he's starting to gets the hang of it properly and understand kinds of people he wants around him. and you're stheeg it happen i think that's a thorough oily good thing it means you have a more unified team in the white house good for the long-term. >> do you think we'll ever get used to him, steve he has a unique style of operation. it is a unique presidency and some of the thing he says -- are interesting. shall we put it like that will we as a country get used to it? >> i think so. and i think you know the thing that we need to be -- clear about is that this is really open and transparent. just now the tape you played of his -- of his sort of mini press conference there outside the white house on the way to california, a perfect example he

literally answers questions. when do you see that press people are probably going nuts in the background thinking he's generating a -- news stories in a couple of minutes but that's who he is. he's very open. he's very transparent. and i think that's a really big change in howing politicians operate. in a way i hope that it sets the tone for the future. and if politician after this president goes back to the old days, of speaking this these very term and never answering questions keeping themselves away from the press i think people will poingd that very propmatic and say in a way he's brought about the really big change in style of politicses that i think is really good. >> steve hilton we hear you and watching your show it's a very good show and we appreciate you being with us this morning steve you're all right. thank you, sir. quickly, let me just look at this market. will you just look at this. you've got turmoil in the white house. tillerson out, pompeo in, secretary of state. you've got the president, you've got the election today in

pennsylvania. which is a referendum on the trump presidency. and you've got the president himself going to the belly of the beast in california. and look what you've got. the dow industrials up, about 184 points. 25,363. why the rally? liz: not a lot of rate hikes because of that inflation point. stuart: point in about the fed without getting that -- [laughter] brilliant. we have a terrific -- we've a very interesting inflation report of 8:30 this morning. it was a very solid report. we don't have an inflation problem and that's why this market is up despite the turmoil in the white house. okay. here's the president, joking with congressman kevin brady about another tax reform bill. roll tape. >> join for additional tax cut i understand? he's the king of those tax cuts, yeah we're going to have a phase two you hear that john and ted

phase two. we're actually very serious about that cabinet. stuart: i introduced that as a joke from the president and bill is with us -- bill welcome to the program. >> good to be with you i have a soft rollout by the president on that one. [laughter] stuart: this is serious stuff. i mean, he's serious here. >> you might well -- stuart: would you welcome another round of cuts? >> yeah. first of all we need to make sure what what we did put in place is cleaned up and actually doing what we need to do. sphwhriewrt i wanted to talk to you about. there's a lot of to clean up. >> especially for new york and we have property tax issues i know. but a number of others. stuart: do you think they'll roll back that salt so at the moment you cannot deduct state and local taxes. do you think that will be rolled become to the point where you can detect the them again? >> i don't think it is going to be fully deductible but i think too much is going into where it

is. but question is are there things to go in and technical corrections and -- some other more minor things than working on how do we and ultimately this is question in my mind to make sure that the u.s. is the most competitive place to do business? and, you know you were talking about the volatility at white house i'm not sure that really all that volatile it looked like a pretty orderly rollout in a way having -- having -- >> hold on bill. >>ing having a -- wait what previous administration have you ever seen where a raft of top people leave in the first year? >> i'm talking about specifically the tillerson and pompeo transition here. where -- where it is as the president said i was listening in to some of his comments where he was saying look, rex and i have been talking about this for a while. mike pompeo who i came in with into this house, and in 2010, phenomenal guy great guy. his name has been floated about, and hopefully that's beginning to be a seemless transition as we're doing that. now having said that where there's a lot of balls in the

air right now. and both the domestically and internationally and we need to it make sure that we've got king the city. >> so the question is, is it beginning to be a correction bill to the last tax bill or is it going to be new tax cuts? correction bill? >> probably first step but i'm eager to hear what the white house would love to do and -- that would be a great way to go. because i think it just -- look, when i'm back in west michigan all i hear from people and small business owners is thank you. it has been higher wages it has been more money in take it home pay. it has been beneficial for small business owners looking to reinvest and now we're in finb i heard earlier as a member of a family business in small construction and sangd and gravel operation, construction is booming you know you cannot get -- you cannot get subs out there to be able to complete projectses. >> you know, i should apologize to our viewers because i kind of glossed over this.

we've got a whopping great rally on wall street, and i think part of it is from the nfib independent small business owners, the economy heat up after years on the sidelines. i don't know to forget that. >> small business owners time and time again qowld say i don't have predictability. i don't know what's happening my health care and regulatory environment and what's happening with my taxes but now getting clarity making decision and it is going in the right direction. >> the senate banking, senate may reform parts of dodd-frank you're behind that aren't you? >> yes. but plus additional things is what i would like to see happen. we've got something like 37 bills in house of representatives passed unanimously or with over two-thirds majority. and these shouldn't these things shouldn't be all that controversial. so i would love to take what the good start it was that the senate had. love to add a few things on there noncontroversial or certainly not -- not partisan.

stuart: try to -- or from my point of view, the one big thing that i would love to see would be to get this regulatory yolk off backs of community and regional banks i don't care what you do with the big guys on wall street. that's popping out again. but the smaller banks have been suffering mightily from dodd-frank and i hope you can get them off the backs. >> amen affected mortgages and small business loan and all kinds of things like that. so that's really got to be main focus, the large banks have been able to maneuver to figure the how to poarpt to be successful in the space. smaller regional banks community banks have not. >> bill, very good. [laughter] i do apologize. >> always great being with you. thanks for having me. stuart: i want to jowpt you on the market a nice solid rally up 170 points. 25,347 is where we are now. the background is -- rex tillerson out secretary of state mike pompeo is in. we have a report from the small

business people. the economy is heating up after years on the sidelines. and we've got a positive inflation report. up to 2.2.in the last year. . . . .

stuart: two big stories we're following for you. right-hand side of your screen, the market, that is a solid rally now up about 150 points for the dow. left-hand side of your screen, that is rex tillerson. he is out as secretary of state. mike poem pay yo, currently at cia, he is in as secretary of state. president trump spoke about this last hour. roll tape. >> we got along actually quite well but we disagreed on things. when you look at the iran deal. i guess he thought it was okay. he wanted to either break it or do something he felt a little bit differently. so we were not really thinking the same. with mike, mike pompeo, we have

a very similar thought process. i think it is going to go very well. stuart: right now president trump is on his way to california. this is obviously a very big day for politics and for your money. we have this. vice president mike pence, he is a good man, after his christian faith was insulted by "the view" co-host joy behar, she called it a mental illness, he graciously accepted her private apology. on "hannity" last night, he went further. roll that tape. >> i did encourage her, i'm still encouraging her, to use the form of that program or some other public forum to apologize to tens of millions of americans who were equally offended. stuart: he is right. miss behar publicly insulted christians and she should publicly apologize. this puts her and abc news, the parent company, disney, in a bind. what if she refuses to apologize

publicly? what would disney's chief, robert iger do then? he is said to have presidential ambitions, insulting christians, oh, that is not a good election strategy. what would abc news do? yes, "the view" is run by abc news division is supposed to be a objective. where is the object tim with four liberals and one conservative. got another question what if ms. behar insulted islam, do you seriously believe she would have apology or no? truth is you can say what you like these days and open season on white male christians. miss behar, abc news and disney have been called out. hats off to mike pence for his gracious of the acceptance of the phone call apology. hats off for offering miss behar a chance for redemption with a

public apology. he set an example for us all. he is a good man. the second hour of "varney & company" about to begin. ♪ stuart: well we were up 180. now we're up 120. not going to complain. we're just above 25,300. check those big techs because there has been all kinds of activity there. earlier all of them were up. now we've got amazon holding above $1600 a share. alphabet is up. apple, at 183, watch that one. the other couple of big techs are down. most of them are up. look who is here? that man is now joining news new york city. i shook his hand first time in 15 years i've known the man. jonathan hoenig by the way.

head of the capitalist pig hedge fund. >> my great pleasure to be here especially on an up day. you mentioned technology. what will keep this market down? tillerson, terrorists, trade war. as you said, some give-back today. amazon, netflix, zillow all or at near all-time highs or 52-week highs. stuart: the turmoil at the top in the administration is not having that big of an influence on the market. i think it is the inflation report. what say you? >> interestingly, inflation as you said was quite good or i should say low according to the rating but a lot of macrofactors seemed would be affecting market, like tariffs, for example, or inflation, they don't really affect technology as they would more traditional sectors like steel or more commodities-related. as long as these companies continue to inknow straight, they fly higher to pulling market with them. stuart: extraordinary thing, isn't it? the five big tech stocks have gone to the moon.

we're always saying oh, they're so expensive. oh, they're so expensive. >> look how they changed through the years. amazon started as bookstore. almost unrecognizable as it is. this happens in capitalist economy. companies change, adapt, create new sectors that is why they succeed. stuart: correct shun recalls hope anything, that is what happens in american capitalist economy. you can't knock down american capitalism. >> i would like to see more of it, thank you. stuart: stay with us, more for you in just one moment. i will go back to i call it my take the editorial at top of the hour. i will do that in a few moments. but first, tillerson out as secretary of state, pompeo is in. joining us the former press secretary for vice president pence. your reaction to the turmoil at the top, mark? a lot of people don't think it's a very good thing. what say you? >> i think the president is just continuing to show the strong leadership he has shown the last 14 months. he despited despite the fact

that rex tillerson is a great man, has done great work for our country that we needed change especially heading into historic times with negotiations or talks with north korea, confronting russia's continued aggression on the world stage. the president has a lot of confidence in director mike pompeo, and he will make an outstanding secretary of state. stuart: like to get back to my editorial at top of the hour. vice president pence calling on joy behar to make a public apology for her comments on christianity. i think the vice president is a good man. i think behar should make a public apology. what say you? >> i absolutely agree with you that the vice president is a good man and i do believe she should apologize. this is no different than what hillary clinton said in india today, basically calling the middle of america backwards. this sutter contempt left has for anyone who might disagree with them. wrong for hillary clinton to do it. wrong for joy behar to do it. she does owe anyone of faith an

apology for the comments. stuart: it is such a global standard, isn't it. had joy behar insulted any other religion, i don't care which one you use, she might have been out of a job. you insult christianity, insult the christian faith, so far, no public apology. i want to you address this double standard. go. >> it is so disappointing that the people on the left, especially consider themselves to be champions of tolerance are completely intolerant of anyone who does not think exactly like them. we're seeing it with joy behar's comments. we're seeing it with hillary clinton, calling the heartland backwards. it is just wrong. it is one of the reasons why democrats continue to struggle electoral because they just don't have a message that resonates with the vast majority of americans. stuart: quickly, what do you think of the election in pennsylvania today? i say it is a referendum on president trump, both his style and his policies. from your point of view, he better win.

>> elections are always turn on local issues but in this case i think it is more of a referendum on the president's policies, do you want more money in your pocketbook? do you want more jobs and economic growth in our country? if you do, vote for the republican. if you want to go backwards, back to stagnant wages, back to slow growth, vote for conor lamb take us back to when america's economy was struggling to keep up. stuart: marc lotta time flies with a jam-packed news day and it flew on by. thank you very much. >> thank you, stuart. stuart: jonathan hoenig has a taste for new york. >> i wish i could afford it. stuart: disney is ready to spend $30 billion annually on content. they're creating their own streaming service. may be poised to dominate netflix. what do you say? >> this is one reason we need the antitrust department out of

business. these companies need to get bigger, they need to get bigger and we're continuing to see that, stuart. big media companies are getting bigger and bigger. disney spending a lot of money. netflix spending a lot of money on content. who will win this war? who knows. 15 years ago, netflix was still sending out dvds. they were not in the content production. this is great time to be a consumer and also an investor. stuart: does it make netflix a takeover target? because they have all this content, they're a streaming company. >> yep. stuart: now they're faced with disney which is even bigger than them. >> yep. stuart: could you see apple buying netflix? >> very like -- apple denied it but just yesterday they purchased what is being described as a netflix for magazines. so apple certainly has very good intentions on upping their content game, stuart. apple has held off making these types of huge transformational deals. they're still sitting on tremendous cash. this could be a type of deal

that finally prompts tim cook to take the bite. stuart: apple is almost a trillion dollar company. boom, just like that. >> yeah. stuart: hoenig, you're all right. you live in chicago, don't you? >> i can't. can't believe that. stuart: time to move. >> thanks for having me. stuart: you're welcome, jonathan. march madness, gets underway tonight. we're expected to get betting of big money on the games. the american gaming association prediction we will bet, as in wager, $10 billion on the basketball tournament. only 3% of the that money will be wagered legally. liz: really? stuart: president trump is on his way right now to california. he is going to a state which is hostile towards him and his policies. california congressman duncan hunter is next. we'll go ask him. how does this illegal immigration battle between trump and california end? what is the endgame? i don't know. don't miss the president's speech in california, 5:00 p.m.

eastern tonight. fox business will have full coverage. the second hour of "varney & company," we're only just getting started. ♪ tomorrow, it's a day filled with promise and new beginnings, challenges and opportunities. at ameriprise financial, we can't predict what tomorrow will bring. but our comprehensive approach to financial planning can help make sure you're prepared for what's expected and even what's not. and that kind of financial confidence can help you sleep better at night. with the right financial advisor, life can be brilliant.

stuart: holding on to the rally. just, we were up 180. now we're up 130. 25,300. positive news on inflation and interest rates going down a fraction. all good news. the market likes it. the president is on his way to california as of right now. he is aboard air force one. come on in california congressman duncan hunter. welcome to the program, sir, great to have you with us today. >> great to be with you, thank you. stuart: can you tell me what the endgame is here? we've got president trump wants to build the wall. we have got california wants to be a sanctuary state, hanging

its hat on illegals. there is a titanic clash, predict, for me, please. what is the outcome? >> u.s. government wins, when it comes to immigration, comes to federal crime, the u.s. government is going to win, number one. we already have a border fence in san diego. my dad built it in 2005. hillary clinton voted for it. we have the secure fence ability. we have a secure border here in san diego. we'll make it better. he will extend what we've done through san diego all the way through the border. the only reason we have nice malls, we have apple stores now on the border, we have nice family housing, you never had that without a border fence t was no-man's land in san diego. now it's safe. in san diego you really have, you really have the nexus where national security is border security because we have nuclear-powered carriers here in san diego, the marine base, the marine airbase, we have marine bootcamp, you have the navy seals, you have all the navy here.

you have all of these things would be a terrorist heyday in san diego. you have got to have a secure border too. we're just miles across from mexico. this is where it happens. this is the nexus. stuart: i think you are going to the wall or the prototypes of the wall today. >> yeah. stuart: you're going with the president, yet you're expecting pretty strong reaction i take isn't. >> i'm expecting the president to be happy with what he seasoned for the border patrol to tell him look, here is the, eight different prototypes we have, here is how we want to change them to make them what we want. i expect them to take multiple things off different prototypes. that will be the fence or wall that they create. i think it will be exciting. stuart: the rest of the country is watching this very carefully. if they see violent demonstrations, i mean hatred of trump displayed out there publicly, if they see mexican flags waved in los angeles, i think president wins and california loses. what say you? >> i think you're completely

right. that is what they're going to see. california with the new laws that we passed in the state, california will be the magnet and beacon to every illegal immigrant criminal in the country. we basically raised our hands said, if you're an illegal immigrant criminal, come to california. we will not cross-check your immigration status with your crime. california has promised that. that is where we are as a state. that is a bad place for those of us who believe in rule of law and believe in security. that is a bad place to be. that is where california is. they have now placed the rights and betterment of people here illegally over their own citizens is that is what california does. california is on leading edge of stupid, whether it comes to taxes or business regulations, national security, immigration. california does some dumb things. i think you will see violent protests. but again just like you said, trump wins. that is why you have a show.

i think you're totally right. stuart: okay, that is good. thank you, duncan. on business of national security, president trump says no, broadcom can not buy qualcomm. qualcomm is big in 5g. i don't think the president wants to allow china to get anywhere near qualcomm's 5g technology and broadcom is a company based in singapore. so do you, duncan, do you approve of mr. trump blocking the biggest tech deal in years? >> absolutely. i think he waited too long. it was great seeing him do the executive order. qualcomm is not just doing 5g. they have chip-sets in everything out there. our military uses their stuff. we upscale it to do defense stuff. we have to remember, it is not just china. it is communist china is a dictatorship around just voted their lifelong president into office. i mean that is what you see in iraq. that is what you see in iran.

now it is in china. they shouldn't have any control over any u.s. technology that can be used against u.s. citizens, number one, or number two, against our u.s. military. stuart: duncan hunter, thanks very much being with us today. we'll see you next with the president when the tape comes through. duncan hunter, we appreciate it. quickly, show the market, sorry to do it to you, i want to get to the market, put up the big board please. we're coming back again. ashley: yep. stuart: when we started interview with duncan hunter, we were up 120, 130. now we're up 166. 2/3 of 1%. good inflation news, low interest rates helping this market very clearly. >> 10-year gone up from 2.84, to 2.87. not to get too excited. wanted to point that out. stuart: a manhunt underway in austin, texas after two people killed by exploding packages.

we will go to austin live for the latest on, basically, those are bombings and the city is on edge. we'll take you there. my mom's pain from

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stuart: the rally holds. we're up 169 points. good inflation numbers. interest rates up only a fraction. the market likes it. 25,347 is where we are. now this. two people are dead, two more seriously hurt, exploding packages left on people's doorsteps in austin, texas. fox news correspondent will carr is in austin. will, these packages were left at the homes of minorities, minority people. are the police considering this to be a hate crime? reporter: they're certainly looking into it, stuart.

motive is the biggest question this morning as the fbi and the atf are in this neighborhood after three bombs went off here in austin in just 10 days. yesterday morning, a 17-year-old in this neighborhood, picked up a package, walked it inside of his house. that package exploded in his kitchen. it injured the teenager, killed a 40-year-old woman. several miles away, another package exploded that ended up putting a 75-year-old woman into critical condition. this comes on heels of a third bomb that went off 11 days ago that killed a 39-year-old man. the only correlation thus far all the victims are minorities but at this point there are more questions than answers. >> what we do know is that the individual or individuals that are involved in this, these suspects, they do have a certain level of skill, to be able to construct a device like this, and deliver that device to your target without having it explode

reporter: this is all taking place with hundreds of thousands of people in town for south by southwest. so there is a major sense of urgency here, stuart. the governor is offering a $15,000 reward for any information that leads to an arrest. stuart: will carr in austin, texas. will. millions of workers continue to benefit from the new tax law but does congress need to pass a bill correcting some of the law's mistakes? grover norquist is next on that one. stuart: tiger woods, came in second, up nearly 200% from last year. looks to me like professional golf needs tiger. kilmeade on that coming up. ♪ [fbi agent] you're a brave man, mr. stevens.

your testimony will save lives. mr. stevens? this is your new name. this is your new house. and a perfectly inconspicuous suv. you must become invisible.

[hero] i'll take my chances.

♪ quote baby you're a rich man ♪ stuart: i've been under strict orders not to sing. good news from the small business people. they're picking up some steam. the business roundtable, the big guys, they released their ceo. >> they make all the decisions. very positive for the first quarter of 2018. they put a number on it, which means nothing to anybody. 118.6. that is the highest number since they started 16 years ago. why? two things. the president's tax cuts for

sure and die regulation. the addendum they're concerned about looming threat, tariffs leading to a trade war. that is it one thing the ceo, that puts a little asterisk this incredibly positive outlook. they are concerned about it. liz: dow 30 guys are in this. stuart: small business, big business. ashley: they love deregulation. stuart: lit me get to tax reform, there are some people, perhaps myself included calling on congress to mix some of the mistakes or problems with the first tax law. americans for tax reform, the president thereof, grover norquist, is with us now. what do you want to see, grover? do you want to see a correction bill to fix the mistakes, or want a second bill with more cuts? >> a correction bill stand alone is probably less likely because the democrats are not going to cooperate.

when the democrats put together obamacare, it was all thrown together last minute in darkness. there were many mistakes in the obamacare. the republicans in the house said we're not interested in fixing your problems. the ds are taking same approach on the tax reduction. stuart: i hate to do that, grover, hold on a second. surely if the republicans were to say we can make state and local taxes deductible again, that would be some leverage with the democrats because it is democrat states, new york, new jersey, california, which will suffer mightily from that inding of that deduction. that is leverage. you could can get them to agree to something else. >> you would think so, except the democrats came out with their tax package which is a trillion dollar tax increase which puts the alternative minimum tax back in place, which is a body blow to all the people who live in blue states with high property taxes and high income taxes. so instead of, in their tax plan, they don't restore salt. they leave the salt, lack of

salt deductibility in. the republicans changed and then they pile on an amt. so the democrats caring about middle, high income people in blue states that was last month. it is just for show. stuart: is that the same thing with rich hollywood types, for example, movie stars? they have agents and they pay them, 10, 15% whatever the fee but they pay them a fee. that used to be tax deductible. now it's not. that would surely be something, i mean to restore the deductibility of agent fees, surely that will be popular with democrats? >> there may be some possibility. i think most important thing to look towards the next significant tax reduction. one option to end the taxation of inflation in capital gains. that could be done about it secretary of the treasury, by executive order. it doesn't take a vote of congress and speaker of the house and head of ways and means committee, both support that

effort. others to come back legislatively. the individual rate is now at 37%. it was 28%, 9 points when republicans and democrats together under reagan came up with tax reform. the top tax rate has gone up nine points since reagan. that needs to come down. we need to take the corporate rate to 15, not 21. 21 is good first start, like starter house but not where we need to be. we need to be 15 to compete with singapore, hong kong, very pro-growth countries. stuart: grover, we're on the same page. i would like to see a corrections bill. >> i vote for that too if the ds will help. stuart: good luck, grover, see you soon. >> take care. stuart: cia director mike pompeo will take on a new role. he will become the new secretary of state. rex tillerson current secretary of state, out. come on in is christian whiten. all right, christian, the

president said this morning that he had some problems with mr. tillerson over the iran nuke deal, and mr. tillerson was not in the loop about this meeting with north korea's kim jong-un. so is, what kind of a secretary of state was tillerson? not good? >> you know i think he was the right secretary of state for 2017. you have to remember, when trump was elected, this was huge surprise. every foreign government, all of their sources in washington, basically said that hillary was going to win. when trump came in, they thought america might actually withdraw from the world based on a lot of fake news about the president. rex performed a very important job which frankly was going around the world, soothing our allies, explaining trump in 2017. with turbulence in washington i think he was important but frankly the white house wanted the state department to be more of activist institution, to put a political network in place at the state department which tillerson never really did and

turn it into more of a real tool to be used. stuart: the problem is that there is more turmoil at the top. we just had, its top economic advisor, he's gone, gary cohn. now we have got rex tillerson, secretary of state, top diplomat in the country, he's gone. does that tour moyle worry you? >> not really. this is the natural course. this was not just a handoff from the democrat establishment to the republican establishment. you're seeing change in washington of the form you haven't seen since andrew jackson, complete discarding of an establishment. you have new people show up. you have transitional people. it is sort of thought that tillerson might be around until the end of this year. he is going a little earlier, he outlasted a number of stilts. i think it takes time for someone new to politics like donald trump, at least new to the presidency, get used to a team and again, you know, just people who are being brought from unconditional,

unconventional background, you will have a lot of chop. stuart: christian, thanks for joining us this morning. what a day in politics. it is huge. see you later, christian. joining us on the radio, brian kilmeade, the host of the brian kilmeade. i join him and he joins me on a regular basis, 10:36 eastern time. your reaction to the tillerson news and turmoil at the top, brian? >> reports were last week, donald trump had the best enjoyable week as president because he started asserting himself again. he had a lot of people say, don't do it like that, mr. president. mr. president don't do it yet. all of sudden from last week, north korea on down he was taking more control. that rally saturday was a guy clearly not looking at the teleprompter, pure trump, for better or worse. guess what happens? one thing he wanted to do all along he does. he and secretary of state tillerson has not gotten along.

in turn he is ignoring the state department. the state department has a great player in tight with the president, mike pompeo, as soon as he confirmed. that makes the state department, diplomacy, brings him into the fray. on other side you have a great moment for female by all accounts extremely impressive, gina who was there since 1985 and was the deputy. john roberts, he had mike pompeo off-camara, how long does it take to get used to the what the cia does? took me months. gina haspel is popular, from the institution and has the president's respect. keep in mind, when pompeo is away she briefs the president. this is a win-win. it also showed a guy i decided myself was the quote. rex tillerson i feel bad for but he was just not hitting it off with the president. bad news for iranian deal by the way. stuart: you got it. brian, you cover politics and

sport. i cover politics and money. i want to refer to sport for a second, because that is your area. tiger woods, big comeback, the ratings, they were through the roof. you saw this? woods playing in the final round of the valspar championship over the weekend. ratings up 190% compared to last year. in my opinion, brian, golf really does need tiger woods with the masters, what, three or four weeks away? >> no question. they got a 5.5 rating, which is highest rating over any golf event the last five years non-major. tiger woods has something special, even if you don't like him. you didn't like mike tyson but you have to watch him. he has done the thing not seen in many athletes i like him when he is not doing the sport, he is walking between holes, i rather watch that than watch somebody hit live. he has a presence about him. same way when mike tyson entered and a rena, there was a buzz in

the arena before even punched the the guy in the head. he is ripped again. i know i talk about a man's body and posture. he is ripped again. he is in great shape again. he has the presence and look. we'll factor something else in, when people ahead of you, ranked ahead of you are pulling for you i never see that in sports. this next generation of great golfers, almost to a man has been inspired by that guy, who had three back surgeries. now has a fused spine. now with that spine, putting him out of pain? he says i can do this thing called practice. because he couldn't practice, and was worried about getting hurt he couldn't be effective. now he feels as though he can do anything. that has a lot to do with it. at 42, like watching a great player have one more shot to leave canton, leave cooperstown, to go back and play their sport. that i think is kind of special. now the masters will rise.

he will be playing this weekend. a 6 to 1 favorite to win. besides that i don't have opinion. stuart: i didn't know that he had odds, 6 to 1 to win in the masters? >> masters in two weeks. he is playing this week in the tournament. ashley: bay hill. >> very good tournament. arnold's palmer tournament. stuart: six to one favorite to win bay hill? >> right. you hang out with a lot of rich people. i would not be surprised if we affected the odds with that how much money will you put into that, stuart? because most of your kids are out of college. you can start playing odds a little. stuart: are we done, 3 1/2 minutes with kilmeade and he did all the talking. i didn't get a word in edgewise. he appears on my show and i don't get to say a thing. >> our on my show. my lines lit up thanks to your tv network. stuart: i want equal time with

you next week. >> only problem we had quality time in the studio. that really affected me. could you do a normal later time slot with me. stuart: no, could you get a later time slot? get off my air. see you soon, brian. >> thank you very much. stuart: now this, extraordinary stuff here, the san francisco sheriff apologizes for letting i.c.e. agents interview an inmate in her jail. all of this part of on going battle between california and feds when it comes to illegal immigrants. we're on this story. ♪

♪ ashley: in the last hour we spoke with congressman bill highs singer about a second round of tax cuts. he says yes. we need to focus on making america competitive. >> i don't think it will be fully deductible. too much time, distance and effort to getting it where it currently is. the question, are there things we need to go in and technical corrections and other more minor things than working how do we, ultimately this is the question in my mind. how do we make sure the u.s. is most competitive place to do business? you were talking about the volatility at the white house.

i'm not sure really all that volatile. looked like a pretty orderly rollout in a way. ♪ hi, i'm mindy kearns. it's great to finally meet you. nice to meet you too. your parents have been talking about you for years. sorry about that. they're all about me saving for a house, or starting a college fund for my son. actually, i want to know what you're thinking. have a seat. yeah. knowing that the most important goals are yours. with 15,000 financial advisors, it's a big deal. and it's how edward jones makes sense of investing.

stuart: it is a heavy news day. the market is up 100 points. good news on inflation. the president is going to california. tillerson out as secretary of state, wrap it all up the dow is

up 100 points. now this, the san francisco sheriff is apologizing for allowing i.c.e. agents to interview an inmate in jail earlier this month. here's the statement. my staff made a mistake and i have to hold myself accountable. i apologize on behalf of the department. i feel embarrassed by it. i have taken steps to make sure it never happens again. she also claims this is deliberate effort by the feds to punch holes in the department's pro-illegal immigrant protocols. former sacramento sheriff, john mcginnis joins us now. sheriff, you heard all of this. you heard that the san francisco sheriff is apologizing for letting feds interview someone in jail. i want your reaction, sir. >> it is shocking, stuart. good morning. thank you for having me, by the way. it is absolutely shocking we have evolved to this point or devolved to this point where there is conflict between state and federal law. this was never intended to be the case and of course the

reality is, when it comes to immigration law the federal government does hold supremacy. very, very clearly covered in the constitution in terms of where that conflict goes. this created, this whole challenge, the sb 54 in california, has created a very confusing set of circumstances for california law enforcement which they're being given conflicted information from the state versus the federal government. you're a guy that raised six kids. think about the idea of parents giving conflicting information to their children, with a level of authority. so california law enforcement officers are desperately waiting for, searching for, clarification on this. stuart: well, who wins? i mean this is the classic standoff between president trump and the administration, which says, look, we don't like this sanctuary city, sanctuary state policy. the government and authorities in california say, we've got a sanctuary policy, and we'll not have i.c.e. agents interfering with us. it's a standoff. give the endgame here, who wins

and when? >> honestly, stuart, that is a very, very good question, the answer lies to the extent the which the public is informed about the truth. there is tremendous amount of hyperbole and false information being pushed forth about the immigration issue in california. stories about law enforcement officers ripping children from their mother's arms to deport them to the country of origin, that is simply not the case. i have nearly 40 years in law enforcement. i investigated everything from pet think thefts to homicides, never once i asked a person their immigration status, frankly it doesn't matter to me. i understand that to be the sole purview of the federal government. that is the way the law works. that should be respected. stuart: are we now in a situation where california authorities are protecting criminal illegals? they're not allowing i.c.e. to talk to them, arrest them, take them away, and then those same criminals go out and commit crimes. has that happened? >> that is absolutely the case,

stuart. and in fact despite what the governor said in reaction to the lawsuit filed by jeff sessions that is exactly what is taking place in california. i think the sheriff in san francisco has affirmed that. she censured her staff for cooperating with the federal government and i.c.e. agents. it is absolutely true. i tell you something takes it to worse levels. dealing with law enforcement that is one thing but state of california right now per sb 54, private employers, property owners, who rent to tenants are constrained by law from answering questions from federal agents. that seems to be me just overtly violative of the first amendment of the constitution, to silence people and take away their prerogative to answer questions when they're asked by people with authority no less. stuart: well-said, john mcginnis, former sheriff of sacramento i do believe it is. thank you for being with us. come back and see us. >> thank you, stuart, will do.

stuart: again more liberal lunacy on college campuses of the there is a new report, that shows well-known state university is giving liberal student groups 20 times more money than goes to conservative groups. we shall report that accurately. ♪

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duck: quack! call to request your free decision guide now. because the time to think about tomorrow is today. stuart: check this one out. research shows that liberal groups at the university of wisconsin receive 20 sometimes sometimes -- times more funding than conservative groups at the college. campus reform.org, lawrence jones, almost called him larry. i'm very sorry, brother. >> come on, brother. stuart: your site conducted this study. how do you explain this, 20 times more money going to the liberals? did they ask for more? >> well, stuart, thanks for having me on. we've been searching this at leadership institute for campus reform and we found out they are giving more money to liberal groups than conservative groups.

stuart, they get the money for $50 million they receive from the students fees. part of what you're contributing to the education, they have those surcharges and those fees when you're paying for your tuition. they take the money, they put it in the pot and student government association decides what department gets what. and so, what we're seeing is that, they're giving special treatment to those liberal groups. stuart: i will show you and our viewers some video of treasury secretary steve mnuchin being heckled constantly during a speech in february at ucla. i will keep it running. you hear it in the background. lawrence, is this common in american colleges these days? he is the treasury secretary. he couldn't open his mouth without getting shouted down? >> stuart this, is business show. this is our next generation we're talking about. can you imagine those young people being in boardrooms,

these are future leaders. they can't a allow a member of our government to have a conversation. many of those students didn't even say what they objected to. they just screamed. stuart: yeah. they even objected to any sanctions on north korea. they were suggesting that we were bullying the north koreans. that is ucla, lawrence. last word to you. >> see, stuart, that tells you what our education system is doing. the fact that our young people don't know north korea is a real threat. that they are willing to wipe us off the map, if we didn't have a president like donald trump putting pressure on them, should be of concern, these are our next generation leaders. average person that goes to college stuart, is leaving with $40 of debt and this is what they get in return? this type of education? i think it is a reflection on those professors that are teaching those college students, stuart. stuart: well-said, young man. you made the point, brother.

you come back on the show real soon, i hope. thank you very much, lawrence. >> thank you. stuart: hillary clinton slamming millions of americans calling them racist and sexist. my question is will democrats finally condemn her and what she has to say? i think it is unlikely. my take on that next. . .

stuart: hillary clinton is at it again insulting middle america. this time from foreign soil. here she is on why trump won. roll tape. >> you know, you didn't like black people getting rights, you don't like women getting jobs, you don't want to see the indian american succeeding more than you are, whatever your problem is, i'm going to solve it. stuart: in short, hillary clinton again labeled america as a racist, sexist reactionary society. it was repeat of her deplorable speech only this time she was speaking in india. well, is she right? is america a deplorable kind of

place, in my opinion, no, absolutely, it is not. it is hillary clinton who is deplorable for, a, insulting tens of millions of decent americans, b, blaming everyone else for her loss rather than her poor performance and endless scandals and, c, further dividing our country with her own hate speech. there's no joy in reporting this, no, certainly not. it just makes you mad, she lost and she can't get over it. now she travels to india to tell the world what a rotten place america is, come on? but, wait, there's more, she said he had not done well with conservative women, why? because her pressure to vote the way your husband, your boss, your son says you should. in other words, women can't think for themselves. this from the women who fought politically reasons stood by her husband and beat up the women he

filanthered with. democrats represent elites and the elites look down on middle america. looking down on america, calling names is not good strategy, it just makes people angry. but then what else do the democrats have? no growth plan, they support illegals over citizens and they consort with hate amongers like farrakhan. hillary clinton can't control contempt for america. the third hour of varney & company is about to begin my fellow americans. ♪ ♪ stuart: well, i heard, hillary

clinton insulting americans. karl rove is with us, do you think the americans will ever disown hillary and her views? >> well, disowned her after the election when everybody ran rapidly to criticizing her and she should have been. two minor corrections, stuart, in your diatract you left the selection she was saying all american felt this way, no, no, she was specific that it was the trump voters who were bigoted against blacks, bigoted against asians and minorities, i assume that i assume that everybody voted for her had pristine emotions. when you talk about comment about women, it was not all women, it was specifically about white women, she said white women were driven by their husbands, their male children or their male bosses to vote against her. so, again, once again, you know, if you voted for her, you have

-- you have excellent character and if you voted against her, you are either dumb, stupid, you know, impressionable, bigoted, whatever adjective you want to ut it, if you voted against her, you're a bad person, if you voted for herby body you will go to heaven and be on golden tree. stuart: turned off tens of millions of americans. i simply don't understand why democrats going into the november election don't turn around and say, hillary, back off because we are not in agreement with you, they won't say it. >> look, i think there is a great sentiment among a big bunch of democrats, progressives, resistance that anybody who voted for trump is a moral idiot and everybody who voted for hillary, even if she was a flawed candidate they were i think to the right thing for the right reasons and this is going to cause them big

problems. let me give you one example, the democrat establishment in west texas -- in west texas congressional district, the most vulnerable republican in texas, congressman, congressional district 23, all democratic got behind former prosecutor, veteran, raised $500,000, had the support of the castro brothers, former cabinet secretary and current member of congress, big political machine in san antonio, he came in fourth in the primary, behind the front runner was a woman who served in the obama administration supported byless -- lesbian and gave -- gay groups and fourth place was the establishment candidate, but the people who are more left wing and more in their depiction of republicans as being, you know, morally reprehensible they ran

ahead him in the primary. stuart: on today's election in pennsylvania, president trump is on the camp of rick saccome and essentially putting his own presidency out there, it's a referendum on trump's presidency, predict the results, why don't you? >> well, i hate to say it but i think we are going to look. i'm talking to people that look at the numbers, the numbers appear to be across the board but they tend to be on the losing side. i hope that's not the case, if rick saccome wins donald trump is the reason because he went in there and put personal prestige on the line. if he rick loses because the election was only about donald trump. saccome said i was trump 2.0. i took it at a bad sign that president trump put steel tariffs. they didn't do the thing of allowing some former union officials to come out and

endorse saccome, united steel workers endorsed lamb and i didn't think that was a good sign. stuart: we will get the results i think 8:00 o'clock, 9:00 o'clock results we should get early results from there. karl, thanks for joining us. stuart: yes, sir. rally has clearly faded. we were up nearly 200 points on some pretty good inflation news, now we are up 50, 25,232. who is with me? ryan payne is the answer, that man right there. he's with payne capital management. now, i wanted to talk to you because -- [laughter] stuart: i won't rant at you, you're not hillary clinton. you think the bull market is back, don't you? >> well, let's face it we are only about 3% off the highs, nasdaq is all-time high right now, you know, since we hit the peak in february, any short-term selling that we saw in february is pretty much gone, we are back on track here. we had big employment numbers on

friday. stuart: terrific numbers on friday. big business, round table doing very well, so do we go up and beyond the old high on the dow, 26,000 and change. >> yeah, this is a big booming bull market, nothing will be linear, if you look at earnings perspective, look at the consensus this year, most analysts thing we will see about 19% growth. stuart: 19% grain per share, that's huge? >> that's not great, it's huge, we are going to party like 1996. stuart: 1999. you say there's a boom in housing, make your case. when you say a boom, higher prices for home sales or more homes sold or what? >> well, as investor you want to look at construction stocks, if there's demand for housing,

those building the housing will be the place to be. we are in a great position because housing stocks sold off this year, 20% from their highs, if you look at them they are relatively cheap, trades at 17 times. so, the lower the number is, the cheaper the stocks are and the growth looks phenomenal, i'm a mel inial in 30's, late to the start but we are starting to see housing formation, starting married and having kids and we have housing shortage, all the things play very well. stuart: you may be well in 30's but you talk like an old man. [laughter] >> i just turned 40. stuart: you did? you're all right, son. good stuff, indeed. you'll be back. >> great. stuart: now, oregon has become the first state to set up its own ira, individual retirement program, individual retirement program for workers who do not receive retirement benefits.

over the next two years, every employer in that state who doesn't currently offer retirement plan must enroll their workers in something calleddor saves, that's the oregon plan. enrollment skyrocketed in december, over a thousand back then, 27,000 today. i say that's a really good thing. and we first brought you this story yesterday, the trump administration telling i/dd, -- idaho, you can't dump obamacare. brad little, i'm going to ask him, what are you going to do now, and a steel plant in illinois reopening after president trump announced tariffs on steel and aluminum import, we are in illinois where thousands of workers are going back on the job. love it. president trump on the way to golden state, no, sorry, the formally golden state, big day for politics and, of course,

your money, stay with us, this is the third hour of varney & company. to most, he's phil mickelson pro golfer.

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stuart: steel factory in illinois is reopening because of president trump's tariffs on imported steel, jeff flock is there with more on this. what do you have, jeff? >> i've covered the steel industry, stuart, for 30 years, believe it or not, and i have never detected the kind of positive morale that i see right now. that blast furnace, that's a granted city furnace, that will start 500 extra workers, dan, you could not be any happier? >> we are thrilled. >> you had promises before but nobody actually gone through it. >> that is correct.

there's been promises here and there, something comes up and the rug is pulled off from underneath us. >> 500 jobs. >> at least 500. jeff: i have to ask you about the trade war, everybody says -- everybody but a lot of people say there's going to be a trade war, you have taken the action to help steel and will help other industries? >> that's speculation. we are crying the sky is falling and we haven't seen it yet. if you look at price of aluminum over the next couple of years, april of last year was the lowest it's been, four years on the charts and i don't remember seeing a break on my can benches when i went to buy them so the cost savings from that wasn't passed from the end user and now all of a sudden they will raise the price, aluminum went up 10% and steel 25%, where was the cost savings for the young guy? jeff: stuart, they say, the changes in policies, sometimes

they hurt people and help other people, i tell you these folks have not been helped as i said in 30 years of covering this industry, i've never seen the kind of morale boost that we have here in a town like granite city that i'm seeing today. stuart: good point, jeff, gentlemen, thanks for being with us, both of you, appreciate it. now, the trump administration told idaho, no, you cannot dump obamacare because it's the law of the land. joining us now the lieutenant governor of idaho brad little, mr. lieutenant governor, i'm not sure the correct form of address, sir, welcome to the program, glad to have you with us. >> close enough. stuart: okay, you in idaho, you we wanted to allow insurance companies, i think, just offer policies and if people want to buy them, they buy them, you we wanted to offer that and the fed said no, you can't do it because obamacare is the law of the land. what are you going to do now? >> well, not exactly. we had indications from the president and from health and

human services given the failure of a wholesale repeal of obamacare for us to look at new alternatives. we came out with a plan. we have the most affordable health insurance of all the 50 states prior to obamacare, we want to go back to that option to where we have affordable insurance for individuals and small businesses. we came up with a plan like that. we believe that the correspondence we got from health and human services was premature because if you look at the entirety of what we do of health insurance in idaho, vastly superior to all of the people being priced out. health insurance not only in idaho but all over the country has gone from car payment to a mortgage payment and as a result people are on their own dropping health insurance. that's not good for the system. stuart: yeah, suppose your plan will put into effect, i mean, and i'm sure it probably will be at some point in the future.

let's suppose it goes into effect, what about those people who choose not to buy any insurance at all? do they go to emergency room, for example, and the taxpayer picks up the tab? >> that safety net is always there. that's part of the law of the land. you show up in an emergency room you're taken care of. first it shows up in the cost of health care, then it shows up in idaho, shows up on your property taxes, then the state picks up the problem and people go to bankruptcy court. we want people insured. we want affordable health insurance to where biggest amount of people in the pool by their own choice not by a government mandate. stuart: okay. we hear you. we will be back with a longer explanation of what you really want to do, brad, thank you very much. >> thank you. stuart: now, this aaa says national average for regular gas is 25 cents more than it was at this time last year.

>> oh, no. stuart: oh, no. [laughter] stuart: aaa says it could go to 2.70. prices are still recovering from hurricane harvey. also supply and demand for oil, there you go. rally is almost gone. we were up nearly 200, now we are up 26, 25,205. the higher profits at the shoe profit and the stock goes up, 10% for that company. coming up, we have the author of a new book which exposes the hypocrisy of jet-setting yachting and limousine driving hollywood liberals, one example leonardo dicaprio, outspoken on climate but turns around and hops on private plane as you can see. we will be joined also by andy puzder, reports that he's being considered to replace gary cohn as national economic council.

how about that, you get it all, i will try to get an answer from him as well. first, robot named animal and it dances, but it changes rhythm depending on the song. we will play the full clip with sound next. total of 15 bald eagles have been found in the san bernardino and san joaquín mountains, 158 people helped count them, in february two baby eagles hatched near big bear, that's a live camera as of right now. they are sleeping. wake up, you're on varney & company.

stuart: there you have it. the momma eagle knew she was on varney & company and came back to the nest to make appearance. it just happened. ain't that cute? you have to check this one out too. this is a robot, it's called animal. >> i'm not looking. stuart: outdance you, liz, and anybody else, sways to the rhythm. >> bring it on, baby.

stuart: watch this. ♪ ♪ ashley: there you go. stuart: doesn't exactly sways but it does dance. created in a lab at a university in switzerland. got that. now this, president trump wants to expand nuclear power. we have the head of u.s. nuclear fuel company with us. i thought nuclear power was dead in america, i wonder what he will say when i say that. the house intelligence community says there's no evidence of collusion between campaign and russia, i will say it again, there was no collusion, will judge will discuss that one too. here, there's a positive economic sign, good one. small business owners confidence in the economy is at all-time high. the markets were way up, now we are up 19 on the dow at 25,000,

just below 25,002. we will be back. 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.

stuart: you know i thought for a

moment the dow will turn negative. it just held onto a tinny gain, we are up 9 points. we had been up nearly 200 this morning. pretty good inflation news. let's get back to tax reform. president trump hinted at a second round of tax -- new tax policy, come on in andy puzder, policy adviser for america first policies. first of all, are we going to get, do you think, a correction bill, fix the mistakes of the last one or a brand-new bill cutting more taxes? >> well, i would love to get the correction's bill at least and we didn't give democrats obamacare and they may not give us one, it's important that they do that. i always like tax cuts but the results of the first bill are so spectacular, i don't know if you have seen the national federation business that came out with report this morning, it was absolutely marvelous. for the first time since 2006 taxes weren't small businesses

concerns. obama administration, number one, taxes and regulation major concerns, now finding qualified employees. stuart: is that right? >> if that doesn't tell the whole story, it's no longer taxes and regulation, we are trying to find people that we can employ. what a great turnaround. stuart: last friday we got report that 806,000 people came back into the workforce, there's your supply of qualified labor. >> yeah, and that's, i think, why wages on a year over year basis went up 2.6%, not a terrible number, enough, once people have come back to labor force, people sitting in the sidelines rejoin, you leave wages go up. it's -- the economy is booming, i think everybody should be excited about it and i'm not surprised the market is doing better. stuart: we have the turmoil at the house, rex tillerson out and

that follows the departure of gary cohn. you're looking at me because you know what's coming. [laughter] stuart: your name is out there as the person who could replace gary cohn. >> i've read that, i haven't had any contact with the white house about it. stuart: nonwhatsoever? >> i know people who said, andy, we would like to see you do this, but i've had no connection with anybody in the white house who could aver you a job. stuart: would you like a job? >> if the president asked you, i would be happy, larry would be very god at this. stuart: larry would present the other side of the coin on steel and aluminum tariffs. what side of the coin would you present? >> using tariffs to get people to the negotiating table. you have every country that has a trade surplus with us scared

to death. china -- you hear china talking about working with us to reduce the deficit $100 billion and talking about no longer having an economy dependent on exports. well, they weren't talking about a month ago, they are talking about it because the president set really good negotiating position, but i think he will get good deals. the president may want people with contrary opinions, he will make the call. it'll be his decision and i'm sure there's a lot of good people out there. stuart: if asked, you would take the job. >> when the president asks you to serve, you serve. stuart: i think we will leave it right there, sir. andy puzder, you, sir, are all right. show me the big board, we are up 24,000, i thought we would split to the negative. we didn't, but we are holding on to the tinniest of tinny gains, got it. dow up 18. there's a u.s.-base nuclear fuel company light bridge and teaming up with a huge nuclear company, the biggest in the world actually, framaton, i believe

they are french, the two together will develop license and sell nuclear fuel assemblies, it just so happens the the ceo of light bridge zeth is with me today. you've been on the show before. >> yes. stuart: i will say the same thing to you again, you know as well as i do that the nuclear industry in america is dead, isn't it? >> absolutely not. [laughter] stuart: show me where the new nuclear power plants going up? >> two being built in georgia as we speak, 56 being built around the world and 160 on order, over a trillion dollars of new construction. the question is whether american firms can compete or dominate, the administration is working with industry to make sure it dominates and this is really exciting a lot of young people who are coming into nuclear now, going into the navy to be trained in nuclear and to university programs, there are american companies competing for projects domestically and all over the world.

stuart: wait a second, your company lightbridge, you make new nuclear fuel assemblies, you create the mechanism by which nuclear fuel is created, that's what you do? >> we design and with our partner we make it. stuart: framatom is your partner, french company? >> we are working with u.s. subsidiary and exports will be from the u.s. stuart: tell me where the nuclear industry is expanding most, is it china? >> mostly and china but chinese and russian venders working all over the world. russian reactors being built in turkey, nato ally relies on russia for energy supply, hundreds of russian personnel go into turkish ministries, what could go wrong, better to have americans. stuart: i understand, couldn't you make a nuclear bomb from a nuclear power plant? >> well, first of all, that's never been done, that's very hard. stuart: i don't know the technology. >> a technical article came out you could read from the european

nuclear society's journal last week that showed how it could be used to make a bomb and new technologies for the existing reactors, new reactors are solving the proliferation problem. stuart: why do you keep coming back on the program when i constantly tell you that the nuclear industry is dead in america? >> forget the word, the reality is that the administration has taken material steps, putting money where mouth is, taken serious steps and new bills passed in senate committees as well as support for action at state level that's pulling american companies through the supply chains and enormous amount of new business. stuart: zeth, you're all right, and thanks for coming back. appreciate it. all right. the house intelligence committee says there's no evidence of collusion between the trump campaign and russia. all rise judge andrew napolitano is here.

>> why do i keep coming back after getting beat up twice a day? [laughter] stuart: great friend of mine. i mean, the house intelligence, the republicans on the house intelligence committee say, look, there's no collusion, no collusion, what do you make of that? >> i don't know the answer to that but i do know that they are looking at top secret materials and cherry-picking what suits their political narrative and the democrats are doing the same thing and the practice of that hereto for condemn not occurring at all under clinton, under either of the bushes or barack obama will bring us to our ruin because it will cause the intelligence community to hold back what it shares with these politicians who can under the speech of debate clause which says you can't punish them for what they say on the floor of the house way or on way reveal whatever they want. stuart: you can understand frustration, we have been going off well over a year.

>> we will have to -- we will just have to wait for bob mueller to conclude, but i understand the frustration, the senate has its own investigation, two investigations in the senate, the intelligence committee and the judiciary committee, these things take time. mueller is putting together a puzzle with 10,000 pieces, i don't know how many pieces he has, but he doesn't have enough to show the picture yet. stuart: i'm frustrated and i expect one of these reports come out in october right before the november election during democrats bidding. >> and you are the most patient of men. [laughter] stuart: no i'm not. [laughter] >> thank you, ashley. stuart: the creator of the worldwide web -- >> don't tell me it's another brit? stuart: it is. [laughter] stuart: not now, i'm an american. he wants to regulate technology giants. what do you say to that?

>> the creator of this wonderful mechanism of freedom wants to choke it? he wants a government to do it? the whole purpose of the first amendment is to allow individuals to decide what to read and see and hear, free from the government's influence. the government can't deliver the mail, we are going to let it regulate speech? stuart: you're having a good time. [laughter] stuart: all right. yes, i did. [laughter] stuart: i've never been back, 25 years. >> i don't think they'll let you back. [laughter] stuart: i carry my american passport. this is extraordinary, we reported yesterday that arnold schwarzenegger is planning to sue. >> he flies the gulf stream jet. stuart: calls out celebrities

for hypocrisy. he will take on arnold. he just tweeted about sanctuary cities and we have that for you, expected to be greeted by protests, several groups at the bother, we will take you live and that's a promise.

nicole: i'm nicole petallides with your fox business brief, as markets move higher, the nasdaq hits third record in a row. we have a keen eye on am. apple hits yet another new all-time high today. stock is currently at 181.96 and maybe these very first company, the united states of america to have a trillion dollar market cap, can they do it? when we look at the company overall, the idea here is the analysts who look at this, they look at some of the parts and they believe that this will be the company that has that 13 digit market cap. the first u.s. company to do so, as the stock hits all-time high today again like others suggests amazon and microsoft over the last 52 weeks, if you have apple somewhere in portfolio, the stock is up about 30%, so the myth of the trillion dollar market cap may come to fruition.

stuart: border wall prototype this afternoon. of course, he's going to be met by a lot of protests, hillary is there, how many groups are expected to show up, can you tell me? >> hey, stuart, five different organizations expected to meet near the san isydro border.

two organizations, not walls will greet the president, it's not just protestors that are getting riled up for this visit, one group called san diegoans for secured borders is planning a counterprotests in support of trump's ramped up immigration policies, parents whose parents have been killed by ig legal immigrants plan to join in. the visit is rallying up mexican coalitions, plans to march from local college in méxico tall way to tijuana border crossing all as president trump is expected to land in just a few minutes. stuart: thank you very much, indeed, we will see you later and that's a promise. still in california, i want to bring in retired state senator jim, jim, this just came to us from the president, it's a tweet and it's about california, i'm going read it for our viewers.

california's sanctuary policies are illegal and unconstitutional and put the safety and security of our entire nation at risk, criminals alliance are released as a result of sanctuary policies and set free to prey on innocent americans, this must stop. jim, california is kind of hung its hat on support for illegals. >> well, the democrats, the democrats in california hung the hat on that and the president is absolutely right. illegal immigrant felons commit crimes in some of the poorest communities and middle-class communities, they shouldn't be allowed to do that. and what the oakland mayor did to give warning to the felons up in her city against the ice raids was just criminal. stuart: jim, is it accurate to say that these warnings given to illegals, hey, watch out, ice is coming, did that prevent the

arrest of criminals who have having not been arrested went out and committed more crimes, is it accurate to say that that happened? >> you know, i don't know because it only happened recently, but what we do know is a small population of felons commits the vast majority of the crimes against our citizens, so i think over a period of time we will find out that the mayor of oakland actually was complicit in crime against someone, somewhere in the bay area. stuart: is it possible that the president's visit will stimulate a deal, the deal being we will build the wall and in return, 1.8 million daca people can stay, can you see that kind of deal emerging? >> well, the president has proposed that and, you know, my democrat friends seem to have gotten amnesia when it comes to

border security. barack obama when he was a member of the u.s. senate voted to fund the wall, chuck schumer as a member of the u.s. senate voted to fund the wall, border security is unbelievably important, if you don't have borders, you're not really a nation and this radical leftist open border crowd that currently control california are dramatically out of step with the people of this country. stuart: i don't want to be sarcastic but i would venture to say that if hispanics voted republican, democrats will be clambering to build the wall, but that's jury sarcasm and i shouldn't do it. i want to talk to you about california gop two candidates for governor, travis alan, john cox, you're asking one of them to drop out because you think that gives them a better chance of actually being on the ballot, is that accurate? >> well, i had -- we had three candidates and i was very, very clear, you can't get into the

top one unless you get into the top two. and i thought three candidates kept us out, one of the candidates ultimately dropped, would have been my preference for one of the other two to drop, but we have two good candidates for governor and good willing one of them will get in top two. stuart: the way california organizes the ballot, the top two may be democrats, is that accurate? >> yes, we have a jungle primary, the voters of california enacted that about six years ago and it's the election regime we are under until it's changed. stuart: yes, it is. jim brolte, we will see you again shortly. now this, the elites who preach climate change are among the worst defenders and we have examples and that will be next

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climate chaining. joining us now climate depo.com executive director and the author of that book climate change, the guide, incorrect guide to climate change, our guest is mark moreno, let's talk about -- it's been a long time since we saw you, let's chalk arnold schwarzenegger, he's suing for murder. >> arnold would have to sue himself, arnold schwarzenegger is probably one of the most oil-intensive human beings on the planet, owning hump v and private jet and also threatened climate skeptics, he we wanted to strap their mouths to tail pipe so they can understand that carbon is pollutant. he has no authority to speak.

he wanted people to air dry clothes and there were no reports of clothes hanging at the governor's mansion or out of many homes floating in the wind. stuart: i don't like the cliché you can't make the stuff up but it's applicable in this instance. let's move onto leonardo decaprio. >> he goes in speaks in new york, all the conferences, this is a man who flew 8,000 miles in private check to pick up environmental award, he's often seen on yachts and owns multiple homes and even fellow criticize for making small to practice what he teaches. stuart: last one, al gore. >> al gore is now in deep water because he's being exposed that

he has personally benefited from own lobbying on capitol hill. a former vice president lobbying congress to enrich companies that he himself founded or was a director of and he went from one million dollar network to at least 100 million-dollar net worth and before he sold tv network to oil rich al jazeera network to horror of former staff, they wouldn't take fossil fuel advertising. this is a man who immensely benefited off of fossil fuel. lavishly funded fossil fuel in the climate debate. he's seen as concern former vice president not as lobbyist. stuart: he did sell tv station. al jazeera. >> hundreds of millions of dollars and former staffers were appalled. gore had made the pledge, they wouldn't accept fossil fuel advertising, his lifestyle, frequently on private jets,

flies around the world. in fact, sequel and first film both have him at airports traveling around. he's not willing to make an ounce of sacrifice, i put windmills on my home but has 21 times and sometimes 30 times local use of average american. no concept of sacrificing for the climate. stuart: we hear you mark morano and we will read the book. there will be, here is a promise, more varney after this. this is my headquarters. 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. . . . . whoooo.

when it comes to travel, i sweat the details. late checkout... ...down-alternative pillows... ...and of course, price. tripadvisor helps you book a... ...hotel without breaking a sweat. because we now instantly... ...search over 200 booking sites ...to find you the lowest price... ...on the hotel you want. don't sweat your booking. tripadvisor. the latest reviews. the lowest prices. stuart: that, that is an eagle's nest. what you're looking at is eaglets. that is the correct name for baby eagles. >> yes. stuart: we showed you this at 11:20, 40 minutes ago. at that point mama eagle came back and fed the babes.

she has been feeding them solidly for the last 40 minutes. there she is. liz: ah. stuart: this is feeding process going on. having done that the eaglets probably went to sleep. they are now asleep, okay? you get it all on "varney & company." ain't that right, charles? charles: it is. thank you very much. i didn't they you were such a nature guy, stuart. stuart: oh, yeah. charles: welcome to "cavuto: coast to coast." i'm charles payne in for neil cavuto. president trump ousting rex tillerson and putting a n.o.w. team in place. we'll look at fallout, economy, markets, foreign policy blake burman starts us off with the latest from the white house. blake? reporter: hi, there, charles, president trump effusive in the his praise for the new secretary of state nominee mike pompeo in paper statement and spoke to us out on the white house lawn before his departure to california.