maria: thanks for being here. >> happy friday, everyone. stuart: good morning, everyone. take a deep breath, not necessarily a sigh of relief and look at this was the trend for the stock market is down again but only a little. the dow, the s&p is going to be up a fraction. i call that dead flat. it is a 15 point loss at "the opening bell". expect a lot of volatility. investors trying to figure out how to respond to china trade, government spending and the threat of regulation on big tech. develops overnight, china fires

back. they will impose tariffs on $3 billion of american products. more to come. we have this development coming at us this morning. a presidential suite. i'm considering a veto of the omnibus spending bill based on the fact the dac a recipient have been abandoned by the democrats and the border wall which is desperately needed for our national defense is not fully funded. there is more change in personnel at the top. john bolton takes over as national security advisor,

frequent guests on this program and he will join us today. he is very much in tune with the president iran, north korea and china. it is a very active day, big development in money and politics as always. "varney and company" is about to begin. i told you there was a lot happening and a possible deal in the making. target and kroger, reports that they are considering a merger. anything more on this? ashley: the amazon affect analysts are looking at reported in a couple places, they say it makes sense and that is where we are going as we see the move to online and the impact it has. stuart: and the move toward the

delivery battle. ashley: expanding the size of whole foods stores. the landscape is changing rapidly. stuart: target and kroger, you never would have thought of such a thing a year ago and now it makes sense. more breaking news, a hostage situation in france. i will call this a terror situation. ashley: that is what the french authorities are calling it. a person of moroccan descent, he took a shot at police from a car before heading to a supermarket in the french town, ran into a supermarket, took eight hostages six of which were released but two people have been killed, we believe he is in the supermarket with a hostage who happens to be a police officer and he has claimed allegiance to isys.

stuart: next case, the china tariffs. horizon investments. welcome back to the show. china trade very much in the news. donald trump's style is to open very tough and negotiated retreat a little. will he do that with china? >> the story is overhyped. he said he would put these tariffs on, yesterday he listed many countries that will be exempt. all the hysteria in the markets in china retaliated with $3 billion worth of tariffs. that is a rounding error. you are worth $3 billion. a $3 billion retaliation by china is pretty mild in my opinion. stuart: do you think when we impose tariffs on steel and aluminum that it raises the price of products in america and therefore gives us paz and

worry about inflation? >> some but i think the inflation has been grossly overdone. we still don't seating wages, inflation expectations are well contained, the bond market is rallied so i don't think inflation is a huge concern. we have exempted most of these countries in the last 24 hours. stuart: you are damping down on the passion involved in the china trade story that hurt the market. >> he will smash you in the mouth and get your attention and then there will be negotiations and when we look at the fine print it won't be as harsh as advertised. >> your world revolves around politics and money, you bring them together. a quick comment from you on the president's tweet tweet 10 minutes ago which suggested he might veto this gigantic spending bill. >> has to be a shock to most people on the hill. we could reopen the issue of

the dreamers. if they do that we have to do another continuing resolution. it doesn't mean a lot for the market, the government is not going to shut down. it drags the budget fight well into april before it gets resolved if he does veto. stuart: can you keep pace with it? i am having a hard time. >> my head spins like that scene in the exorcist. stuart: that is a nasty visualization. thank you. staying on this, the president tweet to do to the moment ago that he may veto the spending bill which did pass last night and avert a government shutdown. it is actually a huge increase in government spending and it means huge debt and deficits down the road. moment ago the president tweet did the did the he is

considering vetoing it. what do you make of this veto threat after a democrat dominated spending bill passed the republican congress last night. >> donald trump could be the hero of the conservative movement if he does veto come away too much spending, didn't get anything republicans promised they would deliver on, the funding of planned parenthood, getting the border wall funded, why do republicans think anyone was sent to washington to give chuck schumer and nancy pelosi more victories but to quote barack obama elections have consequences. stuart: it is the process. you have to get votes for that spending bill you get the vote by doling out money to constituents which raises spending. that is what happens. we can't break the cycle.

>> i got more things done when i was governor with a legislature that was 90% democrat, 90%, and these guys wave a white flag when they walk into the room. i'm angry and frustrated. they don't put up the fight. they assume america will be mad for shutting down the government, we are mad at them because they give up so quickly and give away things they promised they wouldn't and they don't play hardball. they have to say to chuck schumer and nancy pelosi and others here are some things we will put on the table that we are not giving up on it if you want to shut the government down and if you want us to tell the country the reason the government is closed is you want to continue to kill unborn children then fine, you go defend that but we will get the military front, we will do some things but we are not going to raise the budget to a busted level where people 300 years

from now are still paying for it. stuart: seems like the president is trying to assemble a hard-line cabinet, hard-line team in the white house, hr mcmaster is out, john bolton's is in as national security advisor, he is out, the president's personal lawyer, not including that in the hard-line lineup but that seems to be happening and i think you would approve of this. >> donald trump is going to fight for his life. the media is against them. swamps have a legitimate ecological value. this is a sewer. the sewer is after him and people in his own party are after him. he is lined up with an extraordinary array of detractors and enemies and he needs to assemble around him a wartime counsel and that is what he is doing with his legal team, his national security

team, he is in a battle but it is not just a battle for his presidency, a battle for people of this country who are sick and tired of -- stuart: thank you for joining us. good stuff. individual corporate stories, facebook, that stock is down 10% after the data breach scandal and top executives suggest the company is open to regulation. stuart: what is even more concerning, the honesty of mark berg, we can't uncover where all the data, we don't know where it is and how it is being used and that is the trouble for facebook. mark circa berg says where open

to regulation. the problem is they don't know how to stop all the data getting out there. we know apps can take your data and use it. they are looking at individual servers that belong to these apps developers and scoop up as much information back but this is the horse has bolted. we can try to reign it in. and i'm in favor of it. stuart: stock is 165, ever so slightly. the threat remains that if regulation crimps its ability to make money from our information. that is what is happening. ashley: for facebook and social media in general. stuart: sad story, the founder of toys "r quote us has died.

that is the gentleman, 94 years old. ashley: he was known as the father of the toward business, charles lazarus founded it years ago, at the age of 25 he realized in the postwar era there would be a baby boom and as a result a demand for baby supplies and toys so he opened his first store and never looked back. a tough time, they are shutting down their us operations and the founder of the company died, 94 years old. he was ceo until 1994. of the one he died literally on the day when toys "r quote us basically walked away from business in america. we are going to open the market shortly at 9:30 eastern time and we will be down a fraction. we were down 700 points

yesterday. fresh, donald trump approves a $1 billion arms sales to saudi arabia. it includes 6500 missiles. what will john bolton have to say about that? he is on the program today. charlie kirk, frequent guest, just hosted a millennial summit with donald trump, asked him what advice you would give a 25-year-old donald from. you will hear the president's answer after this.

>> what advice you give the 25-year-old donald from knowing what you know today? >> don't run for president. stuart: you can see that coming. that was charlie kirk in a sitdown interview with the president and charlie kirk joins us now. i used to say you are going to be the president of the united

states in 2040. now i think you will be the education secretary in the second trump administration. you in line for that? >> that would be quite an honor. stuart: it looked like it went well, you had a big audience, millennials talking to the president. go well? >> we had a packed house, this is so important and i love seeing the president able to be himself, open up, not scripted answers not that he usually does but had this great dialogue and we appreciated it because there is not enough outreach by the republican party and i had young people in the centerleft saying he really cares about us, fighting force in delivering results, terrific event and got wonderful response. stuart: substantive policy. last night the senate passed a mammoth spending bill. we had the president literally

minutes ago threatening via tweet to veto this omnibus spending bill. i will not read it all the way through but i want your reaction, the president is considering vetoing this giant spending bill. >> i hope he does. exactly why we campaigned and worked so hard to get donald trump in office, to have a check and balance against the bipartisan dc swamp that has bankrupted this country and limited our freedom and liberty, the president is looking to say iran on borders, this doesn't do anything for the wall, fixing immigration, this does nothing to that, ran on defunding planned parenthood and i don't have to answer anyone, i answer to the american people and fulfilling his mandate if he does veto this bill i hope he does because you cannot continue to allow leadership in both political parties to give favors to their cronies and out of the results to the american people. stuart: your summit with the president, at one point the

president that i have tremendous support on campus. i'm not going to take issue with the president on that but i find that hard to believe bearing in mind all you have told us about the situation on campuses. stuart: it was a very nuanced answer and what he said is there is more support than people give us credit for which i totally and completely agree with especially in the midwest. wisconsin, iowa and ohio the media would never tell you that, there are more trump supporters but they are not allowed to express their opinions. not as culturally acceptable to be a conservative as people might believe, the president articulated that there is a continued assault on conservative ideas and free speech on campuses. stuart: do you want a career in politics? >> know. i have too much fun talking to you. why would i want to do that. stuart: is easy to slough off a

question like that but your tailor-made, good-looking guy, speak well, have your facts down, talking points in place, you're going to be in politics. >> the honest truth is i'm trying to fight the culture war on campuses and i never met a politician who enjoys what they are doing. stuart: glad you are good at what you are doing. see you again soon. ashley: he to flex questions like a politician. stuart: come back to new york, nike up in an otherwise downmarket. looking down the road, sales in north america are going to get better. that stock is going to be up 4%. it is a dow stock. what do we have for you, check the futures market, now it says we are going to be up 35 points. we will see. i have some positive economic news. 700,000 people joined the millionaires club last year, that surging stock market, the

trump rally. back in a second. liberty mutual stood with me when this guy got a flat tire in the middle of the night, so he got home safe. yeah, my dad says our insurance doesn't have that. what?! you can leave worry behind when liberty stands with you™. liberty mutual insurance.

sure. momwhat's up, son?alk? i can't be your it guy anymore. what? you guys have xfinity. you can do this. what's a good wifi password, mom? you still have to visit us. i will. no. make that the password: "you_stillóhave_toóvisit_us."

that's a good one. seems a bit long, but okay... set a memorable wifi password with xfinity my account. one more way comcast is working to fit into your life, not the other way around. stuart: lots of new millionaires newly minted, did i say 700,000?

ashley: 700,000 new millionaires, up from 2016. the reason, surging stock market. the assets have gone up in value. there are an estimated 11 million million are households in the united states lose the number of new millionaires and the existing numbers new records but they also say the richer multimillionaires, they are those too. the number of household worth 25 million jumped 10%, 16,000 last year, 172,000 people. stuart: 16,000 new people? it is crazy. there you go. the good old days. look at that market. we open up in 5 minutes time, we are up 50 points. that is the 10 year treasury yield, why?

a lot of money ran into treasuries. >> play safe. stuart: the money goes in and the yield goes down. how about gold. another traditional flight to safety. $1353 per ounce up $20. is a question. is because i'm an asset eurasian to in times of trouble? know. not this time. we are at $8300 per bit coin, $375 at this point. stocks way down, flight to safety. news backdrop this morning, we have developments on china trade and this will be a factor in the market today. china has responded to $50 billion worth. ashley: a come back with $3 billion which is a very muted

response. could have said $80 billion but they did not which suggests to me there is wiggle room for negotiation. stuart: we had a tweet from the president, does this right before we go on the air about 8:57, go on the air at 9:00, he put out a tweet suggesting he might veto the huge spending bill that did pass the senate last night. it is a massive spending bill that will give rise to massive deficits in the future. may be, thinking about vetoing this thing. surprise surprise, the market didn't react, up 50 points at "the opening bell". when you are threatening to shut the government down into veto would shut the government down. ashley: it adds massively to the death of clinton which is not a good thing for the overall economy and where we go

in the future. the president has gotten a lot of pushback, how many republicans in the senate voted no? 24? he is getting an ear full from a lot of conservatives that this is a terrible spending bill and maybe he is having second thoughts. stuart: literally two minutes to go before we open the market but i want to show you big technology stocks. this is how they are very likely to open. we have facebook slightly higher, amazon down some more. we open in two bouncing back. ashley: may be this is another shaking of the tree, selloff

the multitude of things, and get rid of it and start looking at these stocks that are no different than they were last week. stuart: are they going to buy this dip? stuart: some value. we 5 takes the worst. stuart: since the election of donald trump on november 8, 2016, you put money to big-name technology stocks, you would have made a lot of money. ashley: how many million is? 700,000? whopping great dip from stocks. if you buy them now are you going to make money? i don't have an answer. >> these social media companies that have led the way for so long that is the question. stuart: it is friday morning and everybody wants to know where we are going after

yesterday's great big drop? looking at my phone, are you telling me the truth? the dow is down 720 points. that was yesterday. we closed at 23,00957. that was yesterday. today, friday morning. and 3 seconds i will tell you what is happening. friday morning we are up 37, 46, 51, 48, back above 24,000. that is where we are, 56 points higher, 65 points higher. left-hand side of the screen, we have a sea of green, 25 dow stocks on the upside. three are down. 72 points, that is one third of 1%. that is not a huge bounce back. ashley: when it broke below 24,000 the algorithms picked

in. to entice more buying. and up 90. and the same amount. and the s&p, a key indicator. it is not up that much. and not rebounding, and facebook is up a dollar. they are shifting around. there is no huge movement, certainly no major rebound. we are up 95 points, an opening

monologue. you first, the bull market flat out over? >> it could be. it depends on washington. that is what we are watching. the tariffs, we woke up saying what is chinese retaliation? and the new retaliation, and -- stuart: it is muted, china beijing, $3 billion worth of american products to china, but they picked on $60 billion so i will call that muted at this point. >> the first of many such actions, trade war both sides

want to get into. stuart: scott facility, the market, 9 years old, is it now over? >> those dow futures, when i get out of bed in london it didn't look so good, we are down 200 in the dow and now higher by 95. taking the overnight move and how we open up this morning you have to feel good about where we are. stuart: i want to look at the share price of boeing and caterpillar who were slammed yesterday because they are major exporters but china could retaliate, with others of

course. and 322, caterpillar is up 148. the dow industrials up 133 points after the 700 points prop from yesterday. i want to see what other stocks we have got. a possible deal in the making, target and kroger are considering a get together, target is up $1.25. what else do we know? stuart: they first started talking last summer about a partnership that could improve target's grocery business and get kroger customers more access to merchandise and e-commerce was a literal merger of the two in that sense, they talked in the fall and i was reading target and kroger's

combined annual revenue was $195 billion in response to what we have seen elsewhere. >> retail is not done. it is changing, transforming and such combinations like these but the antitrust regulators stay out, that these companies merge and get big because they compete and ultimately win against amazon. >> this target kroger get together is all about same-day delivery and so is this, looking for bigger whole foods locations to serve as grocery stores and distribution centers all about same-day delivery. the battle is on to deliver whatever you want same-day. have i got that right? >> this time around i have done

all my shopping on amazon. i'm a prime member myself. when you get something the same day why would you leave your house or go through the problem of ever going to another mall ever again? this is what that is about and that is what people want and what they are going to get. ashley: bigger stores increased distribution capacity closer to consumers so they continue to ramp up express delivery services. they need bigger stores. stuart: and more stuff, not just whole foods grocery stuff, the warehouse can deliver argument kinds of amazon stuff as well, same-day delivery. here it comes, many parts of america. we paired the gain, we were up 130, we are now up 91. we are up 24,038. now we are coming back down 74

points. the 10 year treasury yield as of now, 2.83%, down because a lot of money went into that 10 year treasury as a hedge against the stock market. gold up nicely, $18 higher, another flight to safety, $13.51 per ounce. ge down this morning, down again, a 9-year low. it is $13 a share, down 1.2%. nike, rosie forecast about profits and sales in north america. the market like that even on a very shaky day, up 4%. better profits as kb homes. revenue fell short, they are up 7%. never forget facebook in this environment. mark like a berg says the company is open to new regulation. go ahead. >> it is bewildering.

he opened regulation. why not start with the post office? rather than regulating facebook, doing quite well on its own. perhaps he is looking to keep competitors out the 20 about regulation is it keeps smaller competitors out of the game. that is a negative not just for facebook but free speech in america, the equal time rule for facebook. stuart: i know you are in london but i can hear you in new york. >> can we stop and take a breath? what type of information is on facebook that is so dangerous? i don't like that everybody wants to you take it without my knowledge but when you are voluntarily putting on what you had for breakfast and what your favorite color was or what you look like with rabbit ears and a bunny nose, how dangerous? how much do we regulate that stuff when we have breaches like we had last year with a

quest ask - equifax? ashley: it is privacy no matter what information is out there. people are taking it without their knowledge and doing what they want with it but i don't have anything that interesting but others do. >> you voluntarily put that out and you lose the rights to it. equifax didn't do that but facebook did. stuart: news about citigroup, they require new retail clients in retail. they will ask them to restrict the sale of firearms. ashley: banning the sale of firearms, bump stocks, high-capacity ammunition magazines, the first financial entity to do this covers small business customers, commercial, institutional, those that do banking with city.

if they don't do this they ought not to agree to this, we respect their decision and will work to transition their business away so they are taking a stand. >> this is a terrific free-market solution. other banks might specialize in a firearms transaction, cannabis transaction, specialization of labor and the free market at work. citigroup saying it is a litigious society, we don't want to get sued for providing funds to these situations. stuart: starbucks executive chair howard schultz slamming washington's failure to address our country's $21 trillion worth of debt. nec slam to make. what is he going to do about it? >> one of the few times i aired on the side of howard shultz's politics. i agree with him on that. it is no longer a democratic infringement but an equal

opportunity infringement until both sides are serious about stopping spending. that is why the bond market after the initial flight to quality, higher inflation, higher interest rates and the business people they will blame. >> let me explain this. in 2014 our government spent $3.5 trillion. in 2019 it will spend $4.4 trillion. in 5 years our government spending goes up by one third. >> i would like to see gdp rise and economic indicators justified so that is encouraging growth. at the end of the day, it is unpatriotic. it was almost $20 trillion and

outspend all other combined. a large part of the deficit is down to him and let's see what happens when we get the economy rocketing on all cylinders. stuart: we want you at the beginning of market action it would be a volatile day and it is, the dow lost most of it to gain and we are up 21 points and we are falling towards a breakeven point. 23,900, i want to ask about politics, national security, the new guy is john bolton. the president also has pushed out john dowd as his personal legal lawyer. all this turmoil at the top, did all these changes, is this hurting the market? >> i don't think so.

we have seen changes from day one and the market has ignored along the way. of the market wants to get caught up, we have a problem. it has been generally ignored and will be the case. stuart: we have a volatile session, we are up 130, then 19, bounced back, the big tech stocks. most people who are stock market investors have a piece -- what is it? have to gain in the stock market, 5 stocks. >> where is the leadership? if it is not the paying stocks, facebook and amazon, they have been leading the market for the better part of the last 5 or 6 years. they are not going to be the leaders. going back to the late 2000s,

the entire nasdaq, you started to see those leaders, it wasn't amazon at the time but sun microsystems began to fade. it won't be the facebook of this case, what is going to be the new leadership group that will propel the market higher, won't be real estate or energy so a lot of investors are waiting to look for steel. what will leave the market higher if not technology? >> i will let these gentlemen get back to the trading desks. thank you for joining us. the dow is up 28 points below 24,000. what is the mood on the floor of the stock exchange? talking about china or the spending bill? nicole: the tariff is interesting, the viewpoint is there was a lot of talk and the

implementation, almost surprisingly pushing it off a little bit. as far as steel producing countries are all exempt so they are less worried about the tariffs. more so what to buy, the two sectors that do so well, technology and financial, facebook is a real cloud down 10%. we will see if tech can hold on. banks are another area. that ruined the banks. those are three sectors on the brink of positive and negative territory. the safe haven of consumer stocks general mills down 10% looking to buy something but can't figure out what. stuart: thank you. former california governor arnold schwarzenegger on a mission to revive the republican party in california. i will roll that tape. >> we have a president, we need to support that president no matter what.

you think it is this is wrong or that is wrong. we have to work together because we all know other places in sports, when the team works together they went. if they are fighting among each other they lose so it is a damaged america if we are attacking the president because we don't like his style or his politics. stuart: he was making those comments with an interview with our next guest, steve hilton, the host of the next revolution on the fox news channel. what else did you get out of that interview? gop is

shut down, and policy hurting the state with the economy and so on. you have to be a positive and optimistic message. one thing in our interview, his experience of being an immigrant, so inspiring about what he loves about america, something you and i also share. a real love, how amazing it is here. stuart: not sure he is going to reform the gop the rest of the country likes. he just launched a lawsuit against the oil companies clutching them with murder. >> one thing he does understand, i asked him, he had this twitter feud with donald trump back and forth, anything

the president can do to win your support? he praised the action on the economy, one thing that is an environmental issue and climate change, he acknowledges that talking about climate change has become a very divisive aspect of our politics and he makes the point in the end the conservatives can get behind an agenda about conservation. don't worry about carbon and climate change and the rest of it but think about pollution of our air and water, something conservatives can get behind and how he made the argument. stuart: we will be watching your show at 9:00 pm on the fox news channel. national security advisor john bolton, he is on the show after this. i am an independent final advisor. when i meet a new client, i start by asking questions like:

did you understand all the fees you were paying? was your broker a fiduciary? were you satisfied with the attention you were getting? then i explain that being independent gives our firm more freedom to act in their best interests. independence lets us do that. charles schwab is proud to support more independent financial advisors and their clients than anyone else. visit findyourindependentadvisor.com

retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered.

comcast business outmaneuver.

stuart: mcmaster out, john bolton is in. bernie sanders criticizing the move, john bolton was part of the effort to mislead the us into the disastrous iraq war

and supported military action against north korea and year-end, too extreme to be confirmed as a matter in 2005 and absolutely the wrong person to be national security advisor now. john bolton and a frequent guest on the program congratulations on getting the job done. >> talk about bernie sanders. stuart: go ahead. >> every sentence you just read is wrong. stuart: i will tell you that. you are a hardliner if i can put it like that. the air ran nuclear deal, do you want to tear it up? >> not being a private citizen for being an advisor to the

president. i don't want to get into what i say about the president because it should be confidential. my views on the air ran deal are laid out in what some would say countless op-eds and speeches and appearances was my view is the same as the president's, which he described as the worst deal in american diplomatic history. the issue is are you solving the problem or making people feel good while a country like you ran violate its commitments which is going on is north korea did with the agreed framework, as the russians do on their arms control agreement. i wonder if you could comment on this. let me throw this that you. north korea has released a statement internet it says it is time for dramatic reconciliation with south korea. that sounds like a very dovish overture to the south. are you buying it?

>> north korea has a playbook of phrases depending on their propaganda strategy. that is in the chapter on dovish phrases. the next chapter contains phrases like unleash a sea of fire across the korean peninsula. i think history over decades is that, like you ran and others use negotiations to buy time to conceal their nuclear weapons and ballistic missile activity. the meeting with donald trump when it comes will be an opportunity to see whether that is the same policy they are pursuing as they have in the past. they repeatedly committed to give up nuclear weapons and lied about it. stuart: the president's foreign-policy position is to take a strong stand and stick with it to convince the other guys that you are serious about getting something done.

with a ran and china and north korea. you fit right into that. >> i think in america plain speaking is still a virtue. it helps to cut through the fog in some cases and find out if that is something to talk about. when you put it on the table i found with countries we tend to see as adversaries, russia and china, you can get to the ground truth whether you reach agreement or not more quickly than more convoluted conversations with allies. you use the technique to achieve american interests which is what the bottom line of foreign-policy should be. stuart: glad to have you on the show before you totally claim upon us and it is wonderful, you have been a great freewheeling commentator and appreciate you being with us and congratulations. >> i appreciate it.

it is my valedictory, at some point when i get to be unofficial, if they allow me i will be pleased to join the company again. we when you are on, thank you very much, more varney after this. i go with anoro. ♪go your own way copd tries to say, "go this way." i say, "i'll go my own way" with anoro. ♪go your own way once-daily anoro contains two medicines called bronchodilators, that work together to significantly improve ... that increases risk of death in people with asthma. the risk is unknown in copd. anoro won't replace rescue inhalers for sudden symptoms and should not be used more than once a day. tell your doctor if you have a heart condition, high blood pressure, glaucoma, prostate, bladder, or urinary problems. these may worsen with anoro. call your doctor if you have worsened breathing, chest pain, mouth or tongue swelling, problems urinating,

vision changes, or eye pain while taking anoro. ask your doctor about anoro. ♪go your own way get your first prescription free at anoro.com.

stuart: president trump has changed a lot of things, and this morning, it looks like he's tired of the way politicians spend money. a little over an hour ago, he sent out this tweet. i'm considering a veto of the ominous spending bill, based on the fact that the 800,000 plus daca recipients have been totally abandoned by the deput ies not even mentioned in the bill, and the border wall which is desperately needed for our national defense is not fully funded. this is a warning shot to republicans, get rid of the big spending and the big deficits and that are built into the system and build the wall that i ran on. last night, a republican senate, part of a republican congress voted in favor of a gigantic increase in government spending.

how could this happen? well, remember the expression, bringing home the bacon? politicians funneling taxpayer money back to their constituents and it's how they get re-elected vote for me and i'll give you this and if i don't bring home the bacon you are going to be out. yes it has always been this way but since the vast expansion of government since the 1960s, there are more and more things for politicians to spend money on ever more people who want something from their elected officials and if those officials don't come through, they're dema gog' d to death. in 2014 our government spent 3.5 trillion and in 2019 it will spend 4.4 trillion spending up by one-third in five years talk about a speeding spree the process itself, the bargaining, the horse training occasionally descents and last night, the debate was held up when idaho republican objected to the

naming of a forest after a political opponent. debates stopped until mitch mcconnell had to make a technical correction to the bill , ridiculous. the process is not going to change unless the president does something about it and the likes like he wants republicans to get back to work and get it done. the second hour of varney & company is about to begin. all right listen to what governor mike huckabee said about the president's veto threat last hour. roll tape. >> well, donald trump could become the new hero once again of the conservative movement if he would veto this nonsense. stuart: all right there you heard it short and sweet. caught me by surprise there and on the phone now congressman jim jordan a member of the freedom caucus and i'm pretty sure jim that was music to your ears the

threat of a veto of the spending plan. >> it sure was, stuart and in fact we had sent the president a letter two nights encouraging him to do this very thing because as i said yesterday this is the worst bill i've seen in my time in congress by far, because it spends the $1.3 trillion and the fact is we only had 15 hours to read it, 232 pages before we voted on it and the president is exactly right it doesn't fund the things we told the american people we are going to fund like the wall and it does fund things we told them we weren't going to fund like planned parenthood like sanctuary cities and those kind of things so i do hope the president vetoes this thing and get back to work and do something we supposed to do. stuart: if he does then the government shuts down because there's no time to pass a new bill before the deadline of mid fight tonight. you're not bothered about shutting government down? >> no, no one wants a shutdown but we don't want to bankrupt the country either and spend on things we told the voters we weren't spending on and do a cr.

fund government and kick it down the road and congress has been doing that for months and months what's a few more weeks going to do so we can negotiate something consistent with what the american people elected the republicans to do. stuart: congressman jim jordan thank you very much for this interview at a very crucial time we appreciate it sir. >> you bet. stuart: no impact that i can see from this veto threat on the market. we've got a solid gain for the dow we're up about 100 points, but i do have new breaking news for you, economic data. >> yeah, seeing struggles with new home sales that plummetted the months before and are down again .6% month over month not great and also notice that the average or the medium home price now is up 9.7% or 326,000, what that is is a continued problem with a lack of inventory and that has pushed prices higher as we're getting a lot of people competing over fewer products so therefore, it certainly is a seller's market. stuart: the news i'm hearing is

that the median price, half more or half less is $326,000. >> correct. stuart: that's for a brand new home, 326. >> yes. stuart: huge. to the market, i don't think this news on the housing has had any effect on the market i don't believe so and we're up 120 points look at the big tech names facebook 165, amazon is down again down $8 as we speak, microsoft struggling back to 90, alphabet is up $10 and apple is up $0.24 so pretty flat for most of the big techs. gold run to safety in gold yesterday, and it's up again today, $21 higher, 13.54 is your price. picking on individual stocks now , nike it is the biggest gainer of the dow 30 and that stock is up 3%, $2 higher at 66 and come on in david bronson, david welcome to the program.

oh, you're the author of the book. i hope it's selling well. >> it's doing great thank you. stuart: i want to know where you think this market ends the year. 24,000 now, where at the end of the year? >> the problem is theres too many variables to give a sensible answer so what we have to do is continue to look at what's taking place to drive marketplace prices. this tariff thing is a disaster and the tax reform and the continued benefits from it are going to actually push more impact in a positive direction from markets throughout the year so there's push pull forces going on. stuart: okay but answer me this. we've had a whopping great big bull market, a huge run up i should say from the election to january 26. >> that's right. stuart: is that huge runup over? >> no i don't think so and one of the most encouraging things is how overreactive the response has been, so many people pulling money out of the market, the possess a mix coming in so quickly as a contrarian that's generally a very good sign. stuart: is this a flush out? >> i think it's a flush out but

again there is a volatility factor that different than fundamental movement. the volatility has been driven by the fact frankly there's a lot of volatile things happening and no certainly around the trade and tariff issues & company earnings are going to come in now for first quarter results starting in april and reinforce the benefits of tax reform. the very positive sign, but when you look at the monetary policy side which is what people should be talking about and then this whole new thing over the last six weeks around trade and tariffs there's plenty to justify the volatility. stuart: i think most of our viewers who are not, they're ordinary every day people who have some money on the side and they put it into stocks, a lot of them are putting it into the tech stocks because they've done so well. well those tech stocks are down significantly down. it would take a strong stomach wouldn't it for you to tell our viewers get back in there, buy some more amazon or buy microsoft. >> don't worry about my stomach i would tell viewers whatever i thought was the right thing to do and first of all like you said they got in because what you said because they had done

so well but the worst reason to ever buy stocks because they just got done doing well, we invest through the rear view mirror. looking forward where is the value in the market? do i believe the value is in the facebook, amazon, google? of course not. not even close. stuart: not even close? >> not even close. it doesn't mean they won't go higher or the sentiment fully changes. they have a great technical support okay? there's so much etf ownership that automatic buyers create a bid but it cascades the other way. fundamentally the socio political revolt against cool, big tech is in early innings. i'm confident about. stuart: what would you buy? just tell our viewers what would you buy? >> we talk all the time you look at what is most distressed that has fundamental value, where dividend growers. stuart: i want a name. >> i'm giving you several names, glaxo-smith kline today walking away from the pfizer deal the best news i've gotten this morning besides the possibility i don't really think it's going to happen that president trump will veto this garbage. stuart: so you like glaxo?

>> love it. they have 5.8% dividend and threatened if they went forward buying pfizer's unit, lever up their balance sheet to do it and walked away. stuart: glaxox pays me 5.8%, and that's a secure dividend no problem with that. well a secure dividend is a relative term but covered by free cash flow which is what we monitor and the answer is yes. stuart: give me another, a stock a big name. >> i think -- stuart: i want 6%. >> well then i'll give you an 8% name plaquestone, bx. blackstone again covering their dividend from free cash flow the best run asset manager i've ever observed in my career both alternative and real estate credit exposure the absolute cream of the crop, paying an 8% dividend. stuart: see that's what i want, with cash flow to back it up love it carve id you're all right thanks for joining us on a very big day.

we appreciate that. come on in tammy bruce fox news contributor okay i want to talk to you a, the huge spending bill last night. >> the boondoggle. stuart: this morning the threat of the veto from president trump do you support the veto threat? >> oh, absolutely but normally you'd issue a threat when you want to influence the process before itself before it finishes and this is a situation now where the president and senate also just passed it needs to about so whether you veto it or you don't so what i think he found out was in the overwhelming rejection on the grassroots and think tanks and everyone else was that he had really been tricked and this is a man who in business you expect people you have a deal with to come through but there is a realization and this is his issue. the americans voted for him regarding policy so this isn't about nuances or, you know, to try to one-up each other. this is about passing a policy that obama would like which we've rejected in 2016 versus what the president was elected on.

policies that make government smaller not larger, being smart about where we spend money. the issue of daca is important to the president. the wall, paul ryan said smuggle yesterday, we've put money to the wall. there's a trench and we're going to put a fence on it. it's almost as though they're mocking him and when they mock the president they're mocking the people that voted for him and this is why i think the president understands he needs to do something other than sign so i hope he does veto it. stuart: got it tammy stay there please. big hour for you here on varney & company the president's top lawyer resigned, and national security advisor h.r. mcmaster out john bolton in so does the president have what some are calling a dream team in place? we will ask the question. john bolton talking tough on north korea and iran, the former commander of the uss cole says understanding the threats facing the u.s. better than most and he will be next. much more on president trump's threat to veto that massive

spending bill, and doesn't like the bill tweeted this picture of it yesterday and his dad, ron paul is on the show a little later. and check this out. after the house passed the spending bill the mass exodus of lawmakers getting out of dodge. happy friday, everyone. this is the second hour of varney & company. >> ♪ ♪

stuart: all right it's not a huge gain, we're up 96 points you've got to remember we were down 700 points yesterday. we're barely at 24,000 as of this morning. if you look at the dow 30, there's quite a few in the green as in up, just about to what is eight or nine of them are down. dow is up 115.

now i've got to update the hostage situation we told you about earlier in france. tell me. >> french police eventually stormed the supermarket he was holding one person at this stage the french police officer the surveillances the attacker has been shot and killed and in addition this person is believed to have killed two people one earlier before taking hostages in the supermarket while steal ing a vehicle, shot someone in the head and he was screaming and the french president says has every appearance of being a terrorists and apparently demanding the release of one of the surviving attackers from the paris attacks back in 2015 but that wasn't a french police raid , to get inside the supermarket and the suspect is dead. stuart: is dead. done. >> there we go. real hot right now. stuart: try not to cheer. right. stuart: all right i want to get back to the spending bill. please bear in mind that president trump has threatened to veto it, but basically, that spending bill last night that did pass the senate, it will be

a huge boost to the military. here is what the president tweet ed about this huge increase in military spending. most importantly, got 700 billion to rebuild military 716 billion next year, most ever , there's a lot more to that tweet but he likes all this money going into the military. come on in now, commander curt liphold former uss cole commander. i'm going to call that a reagane s que military buildup. am i going too far? >> i think you are going a little too far stuart the troops only get about a 2.4% pay increase whereas in the reagan years it was upwards of 10 plus percent when you look at the amount of material that we're going to be buying with 700 billion while it is a lot, when you compare it with the increase compared to gross domestic product it's only .2% so while a huge increase you have to remember it is a down payment now on eight years of sequestration and degredation of the military that we're living

with. it is going to take years to rebuild back up to a point where we can effectively project u.s. power around the world. stuart: okay so we need a lot more money going to the military i got that one commander. next case, last hour the incoming national security advisor, john bolton, he was on this show. here is what he had to say about north korea. roll tape. >> i think that their history over decades is that they, like iran, like others, use negotiatings to buy time to conceal their nuclear weapons and ballistic missile activity so the meeting with president trump when it comes i think will be a real opportunity to see whether that's the same policy they're pursuing as they have so many times in the past. stuart: well, commander john bolton is known as a hard line guy, hard line on iran, china, north korea. you approve of that? >> i don't think ambassador boulton is hard line.

i think he's absolutely accurate north korea cannot be trusted they've demonstrated over and over again they're willing to lie and they've continued to build ballistic missile technology, nuclear weapons technology and for the first time ever we have a nation that is offensively threatening the united states with the use of those weapons that is an unacceptable red line and we are going to have to do what is necessary hopefully on the diplomatic side which is why i think it's very critical for trump to meet with kim jong-un but by the same token be prepared otherwise because every minute of every day that we are waiting and talking, they're continuing to develop that program that threatens us. stuart: in the past john bolton has said be prepared for a first military strike on north korea. you're a military guy, what do you say? >> i think there's a lot that goes into it first and foremost number one is it going to serve u.s. national security interest to do that. number two, who are the two countries that are probably going to live with the outcome of that south korea and japan. we have to make sure that first

and foremost that they can hopefully be willing to put up with that. it has to be our interest first but nonetheless we need to be prepared for the fall out that mayo cur with those two countries in the aftermath of a u.s.-initiated strike. stuart: yes we do commander thanks for joining us sir much obliged to you. >> thank you stuart. stuart: all right, china threatening to retaliate against president trump's tariffs lifting items like torque and apples, aluminum, fruit, nuts the president's point person on trade, peter navarro is going to join us next hour. is he going to reassure us there ain't going to be no trade war? we'll see. >> ♪ ♪

if you're approaching 65, now's the time to get your ducks in a row. to learn about medicare, and the options you have. you see, medicare doesn't cover everything - only about 80% of your part b medical expenses. the rest is up to you. so if 65 is around the corner, think about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans, they help cover some of what medicare doesn't pay. and could save you in out-of-pocket medical costs. so don't wait. call to request your free decision guide. and gather the information now to help you choose a plan later. these types of plans let you pick any doctor or hospital that takes medicare patients. and there's a range of plans to choose from, depending on you needs and your budget. so if you're turning 65 soon, call now and get started. because the time to think about tomorrow...is today. go long.

stuart: we like to keep you in touch with general electric because it has performed so badly recently, the news this morning is that $13.21 per share , down another 1%, poor old ge. higher profit at kb home and that stock is a nice gain there at 4% higher. how about facebook? the house energy and commerce committee has officially invited mark zuckerberg, invited him to testify. >> and so it begins he's going to face the music in the hot seat all those analogies basically they want they have concerns of course as everyone else does about the social media this company's use of data, formally requesting now that he testify at a hearing, what happened in this case of 50 million users information out there being used potentially during the 2016 election and elsewhere. the question is will he himself

testify, that's what they're asking or will he send a tough executive, maybe thought that could be the case. zuckerberg at this point has said yeah, i'll testify we'll see. stuart: if i'm the right person for it. >> correct. stuart: gives him an out. do you think this could be one of those moments like the tobacco executives or the auto executives or the banking executives, where they stand up and tell the truth the whole truth and nothing but the truth it's like could it be that? >> well that of course implies that there's legal responsibilities here but we could be at one of those tipping points where the americans realize an entity that is not the government that's not controlled by like oh, the first amendment et cetera but is larger even and has even as much control over our information but is unregulated, can't be trusted even mark zuckerberg at one point said maybe it is a good idea to regulate in other words even he doesn't trust himself

because these are things that he could have stopped, that remember this is not a hacking. this is about available information that was being sold which is perhaps the ultimate value of facebook and of course the stock is going down that is another signal of course to the board about what americans are thinking about this, so we as a society have to realize and deal with that this is something that the founders none of us could have anticipated but has a direct impact. peoples lives are wrapped around this. their businesses, we've shaped ourselves around an entity that is something that is completely separate from the government and from the things we trust like the constitution and the bill of rights. stuart: if they restrict their ability to make money from our information facebook has a problem. >> exactly. stuart: well we do have changes at the top of this administration. the president's top lawyer out, national security advisor h.r. mcmaster out. so, we're asking the question. does the president now finally have his dream team in place? well we'll answer the question, too.

>> ♪ ♪ i'm just worried about the house and taking care of the boys. zach! talk to me. it's for the house. i got a job. it's okay. dad took care of us.

especially if you need to get to a bathroom a lot. used to be me, before urinozinc with the ingredients in the special formula that can help you with your problem day and night, and supports a healthy, normal prostate. urinozinc, the number one prostate health brand. >> ♪ ♪ stuart: you're allowed to do the air guitar, all right, every morning ladies and gentlemen, 10:30 eastern time we play the beatles religiously dow industrials as we speak up 76 points please remember we were down 700 yesterday. how about those big tech names, the news is, well there's the nasdac loses, a lot that some big time losers right there, and i'll tell you right now, there is no significant bounceback for those big techs which have been horribly beaten down recently.

now, as everybody knows now, there's been a big shakeup at the white house. john dowd, the president's personal lawyer out. h.r. mcmaster, national security advisor out. john bolton in. whose with us now? nick johnson whose axios editor in chief a man with extraordinary sources in washington don't you? >> i do thank you very much. i've got great ones what do you want to know? stuart: i want to know if now the president has established a new team essentially. some people call it the dream team because it is full of hard liners who very much reflect the president's position on things. is it the dream team? >> i would look at this two different ways the first one is personality trump never gotta long with mcmaster or tillerson so he's starting to push out people which he didn't have a good relationship with and you've got a regreat relationship with pompeo whose going to stay. stuart: is it just a personality -based thing? >> very much the president the way he runs the trump

organization is the way he runs the white house he likes hanging out with people and when he has a great relationship those are the ones he brings in the second part gets to your point on ideology. how much of those people are aligned with president trump and boulton is more hawkish than the president on this, and -- stuart: but it's the cia. >> right exactly. stuart: okay, so very much intune with the president. >> right much closer to the president i think than like gary cohn or the globalists were so i think he is bringing together people who are more in line with him just personally people he would like to hang out with and then of course politically as well and what our reporting shows a lot president trump is closing in the administration around him and wants to run it like the way he ran the campaign and the trump organization. we can see that playing out just this morning in his veto threat remember yesterday, all of his staff is out there saying no chance. we love the spending bill and this morning no the president is in charge he tweets i think i'm going to veto it. stuart: literally 90 minutes ago in case you're just joining us ladies and gentlemen he suggested he might veto that gigantic spending bill, which

did pass the senate last night. he's thinking of vetoing this. >> when his budget director was at the white house yesterday and asked will the president veto this he said no. stuart: right. >> 12 hours is a long time in this administration. stuart: it's an eternity all kinds of things change. answer me this one are there more changes at the top still to come? >> we don't have anything reporting changes right now like a great game in washington to play is how much longer will john kelly be around. i don't have any reporting right now at the moment that there's more changes but remember what president trump said last week he likes little changes and likes to keep people on their toes and there are a couple openings we need a coms director at the white house so there's more staff moves. stuart: that is his style keep people off balance. he does that with foreign leader s, with north korea and china. keep them off balance even with members of his own staff keep them off balance. >> this is the same donald trump we've known all these years go back to when he was a real estate invest or when he was

there everyone said maybe the presidency will change him a 70 year old billionaire with his name on the door he doesn't tend to change. stuart: he's 71. you wouldn't know it. where do you get that energy from good lord. nick johnson you are all right sir we thank you for joining us. >> great to be here. stuart: back to i think one of the biggest stories of the day is the president's threat to veto the big spending bill. dave brat is with us republican from virginia and i'm pretty sure that congressman bratt is going to say yes mr. president veto this thing because it's a beast. is that right sir? >> yeah, you've got it exactly right. i agree with the last conversation you had, and the president has a million variable s he's got to, you know, manage on a daily basis foreign policy all this, and then his advisors are not serving him well, this is just the premier issue he ran on and he's getting nothing at the end of the year right and this is our big leverage moment and the folks back home may not know the

senate put in the last budget they're not even going to do a budget next year so no chance for wall funding or to get the goodlatte bill in the major immigration piece of legislation in the house that addresses the daca brings the kids out of the shadows but in exchange for rational policy going forward that the president believes in. so yeah he ought to end this thing until he gets something of what he asked for as president when we have the house and the senate it's quite amazing. stuart: if he does veto it, you have no problem with the government shutting down, look i know you could have a cr, a continuing resolution. i know you could have that but odds are you're going to shut the government down. you don't have a problem with that? >> well i do have a problem with that. the leverage is setup that way in d.c. on purpose. there's a bill in which ends that. we should always just revert to last years funding right? it's always like hostage taking at the end of the year that you got to shut the government down if the swamp doesn't get its way

it's engineered that way on purpose and so no one wants to shut the government down that hurts the military. stuart: but if you did that, congressman brat, if you did that, if you reverted to last year's spending, then the military would not get this big interest increase in spending $80 billion this year they wouldn't get it. >> that's right but it would just revert to the term of the c r. two weeks to three weeks like you're saying until you solve the border issue and then you relieve tremendous pressure on the military so it's a win win for the military and securing the border and security for americans. the border situation is devastating, over half the people stay over on visa stays that's why you need the goodlatte bill. the wall is a start but not the primary problem over half of the illegal immigration and then sanctuary cities now protecting known felons accused of murder in san francisco and you can't make this stuff up right? you've got folks saying we're

not going to follow federal law any more and so it's really a rule of law issue and the president knows all of this. he ran on it, his team is for it but he's got some advisors that are just saying to go along to get along and let's add another trillion deficit this year and 21 trillion in debt we're passing right now and we've got 100 trillion in unfunded liabilities. stuart: by the way, congressman i'm out of time, i do want to add there was no punishment in that spending bill there's no punishment for sanctuary cities, sanctuary states period. they just go along as normal and that's really extraordinary. >> absolutely unacceptable. stuart: congressman dave brat thank you for joining us at the last minute we do appreciate it sir thanks a lot. >> you bet thank you. stuart: want to get back to the markets and bring in todd had. bubbatrading.com, i hate the name but you're all right there, now i know that you're a debt bomb guy. i know that you believe that there's a debt bomb is going to explode at some point in the future and last night's spending bill will make things even worse

, so hold on a second. are you telling hour viewers, investors are you telling them get out now, sell your stocks is that what you're saying? >> good morning stuart. if you're an invest or you should not get out of the market if you're an invest or you have to weather the storm, the markets in history have gone up 8% year-over-year just not every year so if you're a pure invest or that has money in the market you can afford then stay with the market. it's hard to pick time in the market. stay in the market do not try to guess when the top is i believe the bull market is over as of january 29. i think we're going lower, however, five or 10 years we'll be a lot higher than we are now so if you're a pure invest or, i do not sell my long term portfolio, i do not get out of 401 (k) and i stay in and stay long all the time and i day trade to the short side right now. stuart: okay, now you've said on this program that the debt bomb

will explode. forget the timeframe i think you said like five to 10 years down the road i'm not sure whether it was you that said it or whatever but if this spending bill is not vetoed by the president, we are looking at much bigger deficits in the immediate future so watch the timeframe for the explosion of the debt bomb. >> well i think the explosion is a lot sooner than we think and i think this is the real cause of when the selling will accelerate i'm hoping and praying that president trump vetoes this bill because it's against everything he ran against and this is only adding more to the problem. this is going back to the same old same old government adding more debt adding more debt adding more spending. this is not a good thing we need to stop it here i understand our military could suffer and there's issues that will be along with this but the only way we can clean it up is to stop spending and move on because between the credit card debt the student loan dead auto loan dead everything out there is nothing but one big debt bomb going to

explode very similar to what happened in the housing crisis of 08. stuart: gotcha thanks for joining us sir we'll see you again soon. >> got it. thank you. stuart: we're one hour into the session, and we're pretty much flat on the market but look at this. invitations for the royal wedding are officially out. 600 people have been invited to the may 19 wedding of prince harry and meghan markle. no you're not invited takes place at st. george's chapel if you've ever been there it's absolutely beautiful followed by a lunchtime reception hosted by the queen. dress code very important. morning coat. >> no shorts. stuart: or flip-flops either, morning coat or lounge suit for men, a day dress with a hat for women. all right totally different subject, next, ron paul on president trump's veto threat. i'm going to do that i think he loves it and we'll be back.

stuart: well the california governor arnold schwarzenegger is on a mission to revive the republican party in california, and in the last hour, we spoke with steve hilton, who recently interviewed the former governor. roll tape.

>> i said look, in the end, is there anything that the president can do to win your support and he praised the action on the economy but he did say the one thing that really the passion for him is this environmental issue and climate change but it's interesting, he acknowledges that talking about climate change has become a very divisive aspect of our politics and he makes the point that actually in the end, the conservatives can get behind an agenda much more about conservation don't worry so much about carbon and climate change but actually just think about poll august of our air and water and protecting our natural environment because that's something that conservatives can get behind. hey maya. what's up? hey! so listen, i was taking another look at your overall financial strategy. you still thinking about opening your own shop? every day. i think there are some ways to help keep you on track. and closer to home.

i'm all ears. how did edward jones grow to a trillion dollars in assets under care? thanks. by thinking about your goals as much as you do.

stuart: down 700 yesterday, up 89 now, at 24, 047 that's where we are. got to get back to that spending bill, huge spending bill, passed by the republican control senate last night. the president tweeted about it this morning and he may consider it, well there it is let me show it to you. i am considering a veto of the omnibus spending bill, based on the fact that the # hundred thousand plus daca recipients have been totally abandoned by the democrats not even mentioned and the border wall desperately needed for national defense is not fully funded. ron paul is with us, favorite guest on the show, former texas congressman and host of the ron paul liberty report. all right, ron.

>> good morning. stuart: i'm sure that you really want this president to veto that spending bill don't you? >> oh, yes, that would be good but i think it's a dream. you know, yesterday's tweet was saying all the good things about the bill. today all the bad things, so no, i'd be willing to bet the gold coin he will not veto it. that's just being so so bizarre, but i'm not a betting person so i'm not going to make that bet and i do not believe for a minute he's going to veto this bill because tomorrow, he's going to praise the good things again but it sure is big in the republicans are going to be responsible for it, so i guess republicans aren't conservative. i wonder if they ever are. stuart: welfare question, sir, but look, are the votes there for a cut in spending? i mean i don't see it. ultimately if you really want to cut government spending you've got to have a bill, you've got to have the votes to do that and

it's all very well said and what we've got to stand on principle but if you don't have the votes, you know, you don't have it do you? >> no, but if you had more people who wouldn't vote for these increases it would help. okay one answer to that is vote to freeze the budget. just don't increase it, but it was massively increased in order to get this passed they had to give an additional $118 billion, a bunch to military and a bunch to welfare and guess who was the happiest this morning? pelosi. that has to get some republicans pretty upset, you know, after all that's been going on and people wanting to defend trump and republicans, but it's sort of a sad story as far as i'm concerned because i think deficits are very bad. i think big governments very bad and you can get away with it as long as people will take our dollar, but you know what? they're not taking our dollar as readily as they used to and it's the dollar that's part of this trade deficit that participates in that too. so it's coming to an end so

regardless i've always argued we'll never get the votes in the congress, but the marketplace and reality will set in and this whole system will quit function ing. stuart: i want to talk to you about the president and his tariffs on steel and aluminum coming into the country. china is threatening to retaliate. i don't think you like this whole idea of the president imposing tariffs in the first place. make your case, please. >> well first it's unconstitutional. the control of foreign trade is with the congress. it's not in the executive branch it's not in the wto. it's not in nafta so trump is right on those issues but it should be bilateral agreements designed by the congress and the president should decide whether or not he'll go on it. it's to me absurd that is what is going on in the last couple weeks is done by one man. that is, you know, the way we go to war too. one guy, but are we going to invade this country so now we

have a trade war going on one person but they say well it's legal. yes it's legal in the sense that he was given that power but it was unconstitutional that the congress transferred that power to the executive branch its been that way for a long time but this is just another example of our careless attitude about trying to follow the rules which i took very seriously about trying to do my best to take my oath of office seriously. stuart: okay, it's always a pleasure to have you on the show ron and welcome back to our program. we love having you on and i hope you won't be a stranger to us in the future ron paul. >> thank you stuart. stuart: yes, sir thank you and our next hour, the woman going head-to-head with senator elizabeth warren, republican candidate hoping to unseat her she says warren represents all the worst instincts of the democrats there will be more varney after this. >> ♪ ♪ i'm very proud of the fact

that i served. i was a c130 mechanic in the corps, so i'm not happy unless my hands are dirty. between running a business and four kids, we're busy. auto insurance, homeowner's insurance, life insurance policies. knowing that usaa will always have my back... that's just one less thing you have to worry about. i couldn't imagine going anywhere else. they're like a friend of the family. we are the cochran family, and we'll be usaa members for life. save by bundling usaa home and auto insurance. get a quote today.

there's nothing more important than your health. so if you're on medicare or will be soon, you may want more than parts a and b here's why. medicare only covers about 80% of your part b medical expenses. the rest is up to you. you might want to consider

an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like any medicare supplement insurance plan, these help pick up some of what medicare doesn't pay. and, these plans let you choose any doctor or hospital that accepts medicare patients. you could stay with the doctor or specialist you trust... or go with someone new. you're not stuck in a network... because there aren't any. so don't wait. call now to request your free decision guide and find the aarp medicare supplement plan that works for you. there's a range to choose from, depending on your needs and your budget. rates are competitive. and they're the only plans of their kind endorsed by aarp. like any of these types of plans, they let you apply whenever you want.

there's no enrollment window... no waiting to apply. so call now. remember, medicare supplement plans help cover some of what medicare doesn't pay. you'll be able to choose any doctor or hospital that accepts medicare patients. whether you're on medicare now or turning 65 soon, it's a good time to get your ducks in a row. duck: quack! call to request your free decision guide now. because the time to think about tomorrow is today. stuart: espn announcing it plans to launch a new morning show this new show is geared towards a push towards leftist social justice agenda. larry o'connor is with us, washington times associate editor. if this is a play for ratings i

think it fails. you say what? >> yeah, i'm with you stuart. you know, i'm here in las vegas watching my incredible michigan wolverines in the college basketball tournament none of the sports fans around me wanted to talk about the me too movement or gun policy or black lives matter they wanted to talk about sports stuart why is disney allowing their amazing brand that for decades has built themselves around the idea of this is where you go to talk and learn and enjoy sports why are they letting it get hijacked by left wing political agendas. stuart: answer your own question why would disney do that? >> well part of the problem with espn specifically is that this is a new england northeastern new york connecticut kind of place. you month who you're surrounded by there in that island of manhattan stuart it's a bunch of left wing liberal people they like this political agenda. it's not getting them the ratings though, that's the problem. varney & company is a perfect example. you talk about what's important to people.

all subjects are on the table right? but you also have divergent smart opinions going on. if they were smart and really wanted to do this and talk about something other than sports they should have people from all sides of the political perspective engaging in that conversation including some sports figures who happen to be conservative. stuart: by the way did you see this eric reed, football player one who was kneeling along with colin kaepernick he's still not signed to any major team and he says he will stop kneeling if he is signed to a major team. that seems to me like the kneeling protest, the anthem protest come back to bite them all. >> yeah, it sure is and it certainly come back to bite the nfl as well. it's a smart move by him on a personal level and of course if the nfl were smart they would actually jump on board and say this is our policy and you notice in the nba none of the players kneel and it's because the nba has a rule contractually the players don't have that option and the nfl should do it

and move out of manhattan put their corporate headquarters in canton, ohio so they're surround ed by middle america because that's where their fans are. stuart: now you're talking time is up, we've got a full news day back to the table, back there. >> thank you and i'm available for the royal wedding to be your plus one. stuart: good luck. china threatening to retaliate against president trump's tariff s going after things like pork, apple, aluminum exports and the president's point person on trade, peter navarro is on this program and he is next. .

.

sometimes, they just drop in. obvious. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group - how the world advances. ♪ stuart: in a moment peter navarro will join us, he's driving the new china trade policy. he's the man at the center of the action and make no mistake, china trade is helping drive the stock market lower, certainly yesterday, there is a big fight and it's about tariffs. that's a tax on import by any

other name. now, president trump announced america will hit china, overnight, china said they will hit us. their commerce ministry said that we had set a vile precedence. right now it's tit for tat on a limited scale. among expresswayses, some business people and investors alarm bells are ringing, fair enough, nobody wants an old-style trade war, step back a moment and ask why president trump is doing this, he promised to take on china during election campaign and that's what he's doing, taking aim. he alleged that china was stealing our intellectual property and they are. he told voters agreements had given advantage and they had. the administration's argument that they started it and we are going the fix it. i think the president, america has a pretty strong case, so let's talk to one of mr. trump's pointman, we could use

reassurance that things don't get out of hand, we would like to know if there's going to be any shift in the china strategy in the future and just how far are we prepared to go, the third hour of varney & company rolls on with peter natch -- navarro. ♪ ♪ ♪ >> we have a $500 billion deficit, trade deficit with china. we are like the piggy bank that's being robbed. it's the greatest theft in the history of the world. stuart: okay that was president trump on campaign trail two years ago. look who is here, peter and a half navarro, one of the president's main people on trade, good to have you back, sir. >> stuart, are you trying to stir up trouble when we come in

peace, all we want to do is defend our economy and corporations and workers from unfair trade practices by countries around the world that are doing this. the coverage universally today is everybody acknowledged that china basically is stealing technology and they go over and if you want to go do business there as company, you to give me your technology, so we need to address that. stuart: well, yeah, can you reassure our viewers and investors, reassure america that this thing is not going to spiral out of control. >> absolutely, i can, we do come in peace. this is not going to be settled by a fight but through negotiations, we have behind me in the white house the best negotiator in the world, the man who knows the art of the deal and we have ambassador robert lighthiser at the united states

trade representative who is a phenomenal mind on these kinds of things. all we are working as the president said fair and reciprocal trade. we run 347 billion-dollar trade deficit in goods with china every year, what does that do? we ship off our money to china and our factories and they get the job an wealth, but we also have trade deficit with europe, 150 billion and, stuart, 6,000 jobs per 1 billion-dollar a trade deficit means there's a million american jobs in europe instead of here and 2 million in china because of deficits. we come in peace, all we want to do is get better deal for the country. stuart: on steel and aluminum tariffs, you pulled back, exemption to the european union, south koreans, australians, are you going to pull back in a similar kind of way with china?

>> on the 232 aluminum steel, the paramount goal of the administration is to defend our aluminum steel industries as the president has said we won't have a country without them, and so we have instituted tariff regime and for a limited time we are allowing countries to negotiate a way in which we can maintain the integrity of steel industries and deal with other national security issues. and that's a great thing, this illustrates both the strength and flexibility of this president and i can assure this country and the aluminum steel industries, that they will have interests defended and ensure the world that we will have better and stronger trading system because of donald trump's leadership. stuart: you are suggesting flexibility in the future? >> that's who we are, stuart. that's why i can provide reassurances to investors here that this administration is committed to a strong economy.

i mean, today, think about what happened today, the durable goods order came out, it's one of the most tangible fruits of the tax plan, right, capital deep, the key to higher wages and productivity was read into the numbers today, very bullish, that's what the investors were looking at today when they were thinking about whether to go long or short in this market. stuart: we heard overnight that china will impose tariffs about $3 billion worth of products going to china through -- not aluminum, that kind of thing. that's response to large tariffs which we were announces the other day, would you regard it as muted response? >> i would let you, folks like you characterize that. we are not trying to pick a fight with anybody. we are trying to get a better deal for the american deal, that's all. stuart: are you trying to inflict any kind of pain on china, that's what tariffs do?

>> absolutely not. china is a sovereign nation, one of the great super powers in the world. the president has a great relationship with president xi of china, all we want to do basically have fair and reciprocal trade, level the playing field, not just for us but for the rest of the world dealing now with china. china has basically gotten away with highway robbery since they joined the wto and all we try to do is create better situation of stability and global markets, so this will all be settled through negotiations and we will be in a better place because of donald trump's leadership on this. stuart: what we hear a lot about and we have been hearing this for generation is that china steals our intellectual property, software from microsoft, that kind of thing, can you tell fuss there's something going on beneath the surface which would resolve that central question?

>> nobody has ever challenged china on this even though we know they are doing it, but the bigger thing for your viewers now is this issue of forced technology transfer which ambassador lighthiser has highlighted in the report to the president. here is how it works, if you're ford or gm trying to sell cars to china, you face a 25% tariff. ours is only 2.5% here if china sells to us, instead of producing here, american company will jump the tariff and set up facilities over there. guess what, they only can do a joint venture with a minority partnership and in order to gain access to the chinese market, the american company has to surrender its technology, so what happens, stuart, american company may make a few books in the short run because access to that market but over the long run they create a chinese competitor that competes first with them in china market and then around the world and as a

result corporate profits over the long term for the corporation are much less than they otherwise would be. what we are trying to do is change the situation. that's going to be very, very bullish for american corporations trying to basically produce and sell in china. stuart: peter, would you like to use this program right now to offer any kind of olive branch to china? >> the olive branch is out there. we -- look, here is the thing, stuart, this goes back to 2003 in the bush administration when the bush administration, people like hand carlson, started doing the economic dialogue and for what, is it 15 years, administrations attacked on the wall the demand to stop stealing and play fair and the chinese to date have not responded to that. all the president is doing with this is standing up for america,

defending america against these unfair trade practices and we think the chinese will respond quite favorably in terms of discussions, remember, stuart, they benefit by $370 billion, they have more to lose by disrupting the relationship. we are going to work with them, it's going to be great. stuart: it's going to be great as you say, peter navarro, thank you very much for joining us, we do appreciate it. dow industrials 83 points higher as we speak, 24,043, i have not noticed any response to what peter navarro. ashley: went up to 116, oh, they are getting comfort from mr. navarro, but still a little volatile. stuart: see bottom of your screen there, big number, the number of millionaire household

in this country increased by more than 700,000 last year. this is mostly due to the surge in stock market and to some degree rising home values, by the way, there are now more than 11 million millionaire households in the united states. what was that number -- 25 million. ashley: jumped 10% last year, increased by 16,000 or 172,000 households in america currently with worth of 25 million. stuart: we like that number. all right, thank you very much, ash. okay, interest rates, key indicater thereof is 10-year treasury bond which yields 2.83%, i'm going to say that's rather depressed, why, a lot of money is going into it as source of safety. same story with gold, money is flowing it because it's considered form of safety. gold is up 13 -- $19 an ounce,

13.52. bitcoin not a flight to safety, it's down 8,600 bucks per coin. facebook, the house commerce committee has invited zuckerberg to testify, the stock no response to that news, 164 still, jam-packed hour ahead for you, new report that starter homes are nor expensive, smaller and harder to find and in bad shape, whoa, property man bob massie on that. from july 16th to july 2017 one person left illinois every four minutes. people are leaving the state in droves as you can tell. we will have full details in a moment. we will also be joined by beth, she's taking on elizabeth warren this november, calls warren hypocritical, in effective and thirsty, yeah, thirsty, i'm not sure about that one. that's what she said. of course, the big money, your money, president trump threatens to veto the spending bill, the market seem to kind of like

that. third hour of varney & company just seems to be getting underway.

♪ approaching medicare eligibility? you may think you can put off checking out your medicare options until you're sixty-five, but now is a good time to get the ball rolling. keep in mind, medicare only covers about eighty percent of part b medical costs. the rest is up to you. that's where aarp medicare supplement insurance plans insured by unitedhealthcare insurance company come in. like all standardized medicare supplement insurance plans, they could help pay some of what medicare doesn't, saving you in out-of-pocket medical costs. you've learned that taking informed steps along the way really makes a difference later. that's what it means to go long™. call now and request this free decision guide. it's full of information on medicare and the range of

aarp medicare supplement plans to choose from based on your needs and budget. all plans like these let you choose any doctor or hospital that accepts medicare patients, and there are no network restrictions. unitedhealthcare insurance company has over thirty years experience and the commitment to roll along with you, keeping you on course. so call now and discover how an aarp medicare supplement plan could go long™ for you. these are the only medicare supplement insurance plans endorsed by aarp, an organization serving the needs of people 50 and over for generations. plus, nine out of ten plan members surveyed say they would recommend their plan to a friend. remember, medicare doesn't cover everything. the rest is up to you. call now, request your free decision guide and start gathering the information you need to help you keep rolling with confidence.

go long™. ♪ stuart: right, what am i looking at right now? what am i looking at? new numbers, exodus from illinois, 80% of all the counties in illinois lost population last year. cook county, that's chicago lost more than any other country in -- county last year. on average one person moved out of illinois every 4.6 minutes. ashley: how long before it's empty. stuart: to politics, our next guest wants to take on senator

elizabeth warren this november, beth linstrom one of the republicans running in massachusetts, varney & company is friend of free enterprise, elizabeth warren, it's not. >> no, there is nobody in this country who got rich on his own, nobody. you built a factory out there, good for you, but i want to be clear, you moved your goods to markets on the roads the rest is paying for. stuart: we will be running that forever. you're a candidate among the republicans to take on elizabeth warren. what's going to be your main line of attack on elizabeth warren? >> she's a national agenda and i want to repped the people of massachusetts. she's been out to california talking with bernie sanders, michael moore, that's not representing the people in massachusetts. i've been around talking to many people and, you know, her

left-wing agenda really doesn't go with american people. stuart: i happen to think he's a neo socialist. >> so when she asserts this, hey, i did build this, you know, the blood, sweat and determination, i did build that. stuart: will that fly? you are a capitalist, entrepreneur, you've made money and started businesses, shape enterprises, does that fly in massachusetts? >> absolutely, we have great businesses in massachusetts. we have a great economy, we need to keep that, her agenda is going far to the left, let me tell you something, when he ran in 2012 she said she we wanted to write book, teach and throw rock, i'm not a rock thrower, i'm a bridge builder and here is the crux of this issue, to be able to get things done for people in massachusetts, you need someone who can work across the aisle, she cannot. that's example of different style. very different from mine.

stuart: fair point, beth, but it sounds like you're not a firm huge straightforward supporter of president trump? >> i have supported president trump in a lot of his agenda, tax reform, immigration, deregulation, absolutely, tone, temperament and twitter might be different. stuart: i understand the difference. you have a new law that takes effect on monday. >> yeah. stuart: in massachusetts that is, and the law says you want to vote -- you have to have proof of citizenship to get a driver's license. >> verifying your identity. stuart: proof of citizenship. >> which all i'm for but here is the thing, this speaks to our bigger broken immigration system and we need to fix that. and, you know, i'm in favor of getting rid of sanctuary cities, elizabeth warren is around the city advocating for them, how do you do that? so you have to follow the rule of law, for us in massachusetts, we need to -- in the country

define our borders and, you know, for me we cannot tell the rest of the world that it's easier to come here illegally than legally. we need to -- we need to fix our system, we need to tell -- my sympathies for the 4 million people that are waiting to come in. stuart: beth lindstrom, very much for being in new york. best of luck with process going forward. >> thank you. stuart: california, john cox moving into second place in the race for governor in the formally golden state. new poll from the public policy institute of california shows cox moveing forward antonio villaross. top two candidates, we have us a party, they move to final ballot in november, john cox will be on the program next tuesday of next

week. mentalist, he's on the show today, he started on wall street but after years in finance, he now stuns the world with what i'm told is his mind reading skills, can he read my mind, i hope not. on the show today. ashley: watch out. stuart: senators jeff flake, cory booker bad -- battling out on capitol hill, booker lost snow fight ball and had to buy pizza for all of senator flake's staff. [laughter] stuart: can you tell which one is on top. it's not in america. stay right there. the news will follow this commercial. [laughter] ♪ ♪

are finding themselves morin a chevroletple for the first time. trying something new can be exciting. empowering. downright exhilarating. see for yourself why chevrolet is the most awarded and fastest growing brand, the last four years overall. switch into a new chevy now. current qualified competitive owners and lessees can get this 2018 chevy equinox for around $199 a month. chevrolet. find new roads.

that's it. i'm calling kohler about their walk-in bath. nah. not gonna happen. my name is ken. how may i help you? hi, i'm calling about kohler's walk-in bath. excellent! happy to help. huh? hold one moment please... [ finger snaps ] hmm.

the kohler walk-in bath features an extra-wide opening and a low step-in at three inches, which is 25 to 60% lower than some leading competitors. the bath fills and drains quickly, while the heated seat soothes your back, neck and shoulders. kohler is an expert in bathing, so you can count on a deep soaking experience. are you seeing this? the kohler walk-in bath comes with fully adjustable hydrotherapy jets and our exclusive bubblemassage. everything is installed in as little as a day by a kohler-certified installer. and it's made by kohler- america's leading plumbing brand. we need this bath. yes. yes you do. a kohler walk-in bath provides independence with peace of mind. call for a free kohler nightlight toilet seat with consultation or visit kohlerwalkinbath.com for more info. sure. momwhat's up, son?alk? i can't be your it guy anymore. what? you guys have xfinity. you can do this. what's a good wifi password, mom? you still have to visit us. i will. no. make that the password: "you_stillóhave_toóvisit_us."

that's a good one. seems a bit long, but okay... set a memorable wifi password with xfinity my account. one more way comcast is working to fit into your life, not the other way around. retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. stuart: we we wanted to bring this yesterday, breaking news broke in so to speak, what you're looking at is the world's most expensive suv, it starts at 2 million, but you can easily double that with luxury options,

it actually includes luxury seats, gain console, expresso machine and the big thing it is bullet proof, they only plan to build nine of them. before the break, we asked what's the best airport in the world, number one -- ashley: laguardia. stuart: no it's not. free 24-hour movie theater, rooftop pool. pretty good, i've been there. number two, south korea, number three hanida airport in tokyo. okay, what do you think is the highest-ranking american airport? ashley: laguardia. stuart: no that's number 1,472. denver which is 29. check it. new residential developments in sidney, australia, the world's tallest vertical garden, 33 stories straight up, the facade 24 panels made of 250 species of

plants and flowers. a pair of mirrors at the top to reflect light on to the lower levels. now you know. okay, we have lots of news today, the market is pretty much dead flat despite news on china trade, despite news that the president may consider vetoing the big spending bill that the senate passed last night. see all those dollars descending. ashley: raining dollars. stuart: that's government spending at large. we will be right back. ♪ ♪

stuart: two hours ago when the market opened we were up about 130, now we are up 30. so we have paired the gains, so to speak, we are relatively flat at this point. the big news president trump threatens to veto 1.3 trillion bill passed last night. starter homes becoming more expensive, they are smaller, harder to find and they're in bad shape, joining us bob

massie, what's going on here. is it all about the shortage of supplies of homes on the market, is that it? >> yes, stuart, i'm so frustrated right now with the real estate market because these reports coming out are true, number one it's exactly what you just said, we have the inventory shortage, you also have another part, stuart that's what is happening, it's been going on and as you know and reported how the hedge funds have purchased so many profits all over the country, so what's happened is, the inventory is low for several reasons, but in addition to that, they are renting out the hedge funds renting out homes, young couples can't find the homes because they get outbid for anything that's available on the market and as a result things are what they are supposed to be. so the homes that they do find, they are smaller in square footage, they really need fix and as a result even lending is not necessarily easy on homes.

so a -- i'm very, very frustrated on how stagnant it is right now. stuart: other side of the coin, bob, rents are rising, the fastest pace in two years, again, this a shortage of supply of homes for rent; is that right? >> it's because there's a shortage of homes to buy, shortage of home because apartments are basically occupied, there's not a lot of inventory to buy and, again, investors who have the inventory, they basically just jack up the rent. the frustrating part is what this is going to mean in the long run, unless we go more vertical, unless we get more homes being built and because as you reported in the past, stuart, materials are costing more now than ever, labor not available in southwest part of the country. this is something i'm not sure

it's going to roll out. it's a little complicated right now in the overall picture. stuart: i have to tell you, bob, i think it's a crying shame. when i first came to america, i joined the american dream by buying my first house, best thing i ever did, i wish all the youngsters could do that today. bob, we will be watching the property man here on fox business network, fridays 8:30 p.m. eastern, that means tonight. we will see you then, bob massi. now this, tariffs, we have marsha on the phone? we do. republican of tennessee, marsha is running for the senate in the state of tennessee. marsha i want to talk about the spending bill which senate passed light now which this morning the president is thinking about vetoing it. would you like him to veto it? >> i am pleased that he is

talking about vetoing this bill. i think that he has every right to do it, priorities such as dealing with the issue on dreamers, money for the border wall, the fact that this bill spends too much, we are not taking the steps to address our debt and our annual deficit and as a mother and a grandmother, this is a bill that you think about how is this going to end up affecting the growth of government, how is it going to affect those grandsons of mine. and we are putting them on the hook for a lot of debt. stuart: let me press this issue, do you want president trump to veto that spending bill? >> it wouldn't bother me if he were to veto me if he says bring me something that spends less, bring me back something that's going deal with a border wall and the daca issue.

stuart: i'm hearing a lot of opposition on what the senate passed last night and what the house passed earlier. thank you very much for joining us. i know it was a short notice. >> good to be with you, thank you. stuart: those tariffs on steel and aluminum import, they are going to effect today by the way, i didn't know that, it is today, our next guest not a fan. he says the steel tariffs will harm his business, in fact, they have already. joining us dan, the ceo of canary, that's an oil field service's company and they use a lot of steel, right, dan? >> yes, we do, thanks for having me on. stuart: you're welcome, good to see you. you're pretty much a trump supporter. >> i'm very much a trump supporter but not a fan of the steel and aluminum tariffs. stuart: what has it done to you so far, the tariffs were only announced in the last few days? >> sure, what happened to us 3 business days of when he announced of looking into doing it, our steel cost went up 20, 22% and they haven't come down

since. stuart: 20% up just like that? >> over 3 business days. stuart: because you used imported steel and it'll be more expensive. >> we use steel, we don't know what percentage it's imported and what percentage it's not. the stock price went up immediately on us. stuart: are you worried, is it a possible -- possibility that steel producers would not be in the market and run out -- >> we can deal with price increase but i think this is going to cause problems with the supply chain later on, 30 days out, 60 days out. i think there could be supply chain disruptions which might hurt medium-size companies like ours. stuart: the european union, huge area, the south koreans, big steel producers, australians, they've been exempted from these tariffs, they are not part of it, tariffs only aimed at china, russia, how come it's had an

effect of you? >> and vietnam. it doesn't -- it's like the oil -- gasoline in the car, you don't know whether it came from venezuela, the u.s., texas or north dakota, it's just gasoline in your call. steel is based on the spec and what we are buying. who is exempted or not doesn't seem to be affecting us. what affects us is the price that we have to pay and make it is american oil business less competitive with opec and other international producers. stuart: dan, thank you very much for joining us. i didn't realize the effect could be so dramatic, canary oil field company services. >> thank you. stuart: you may have seen on the left-hand side of the screen, dropbox opened, nice pop, up 44% from its offering price, that's $9 higher. ashley: 21 bucks. stuart: that's right, dropbox

for those of you and myself who do not understand, it's cloud storage for everyone. i do know. i'm just being -- ashley: store, share, collaborate documents in one place. stuart:ly come to you for technical advice? >> i wouldn't do that. stuart: in paris tens of thousands of people demonstrating against macron's labor reforms, some protestors started looting, it got violent, police responded with tear gas all of that in center of paris, they don't like macron's views on labor. check the big board. the rally is gone, we are up 130, now we are up 13, highs of the day gone. jam-packed hour ahead. mentalist is on the show, he started in wall street after years in finance, he now stuns

the world with his mind-reading skills. he's going to try to read mine. good luck. and we have this news, on the eighth anniversary of obamacare, the spending bill does not include a bail-out for health insurancers, we will deal with that. do you remember when president obama said this. >> if you like your doctor, you will be able to keep your doctor, period. [applause] >> if you like your health care plan, you will be able to keep your health care plan, period. [applause] >> if you like your doctor, you can keep your doctor. if you like your health care plan, you can keep your health care plan. if you like your plan, and you like your doctor, you won't have to do a thing, you keep your plan, you keep your doctor. ♪ just one free hearing test at

his local miracle ear helped andrew hear more of the joy in her voice. just one hearing test is all it took for him to hear more of her laugh... and less of the background noise around him. for helen, just one visit to her local miracle-ear is all it took to learn how she can share more moments with her daughter. just one free hearing test could help you hear more... laughter... music... life. call now! for a limited time, you can get $500 off miracle-ear hearing aids! but i'm not standing still... and with godaddy, i've made my ideas real. ♪

♪ i made my own way, now it's time to make yours. ♪ ♪ everything is working, working, just like it should ♪ nicole: i'm nicole petallides with your fox business brief, a look at dropbox, stock is jumping, 31 bucks. this was -- that was the high of the day, 31, right now at $30, you can see the stock is up more than 40%, highly-anticipated tech stock, the largest to be

debut in over a year since snap. it was extremely strong demand for this one for relatively small, competes against others google, microsoft, docs inc and has 5 million users, the ceo has 24% of the company, the markets opened short omit ago, dropbox picks it up on winning day on wall street.

>> we have to pass the bill so that you can find out what is in it. affordable. there's a reason. affordable. affordable. affordable. affordable. affordable. [laughter] stuart: i told our producer, you are cruel, you're cruel to keep doing that, that was nancy pelosi over the years on obamacare. by the way, eight years since president obama signed it into law. today we have this news, the spending bill, while it passed last night but it does not include an obamacare bailout for the health insurancers, joining us betsy mccoy author of beating obamacare. >> it's not affordable unless you get a free ride from the taxpayers, this is not affordable. we have a whole new class of

unensured in the country, the middle class. stuart: there's no money to bail out the insurance companies? >> look for big increases in premiums. they are predicting premium increases of 20% or so, you will see dramatic declines in enrollment because if you're an individual and you earn more than $30,000 a year. you will be paying 250% of what they were back in 2013. stuart: this is a nail in the coffin of obamacare. >> the if i believe -- the final nail because obamacare plans have been proven unaffordable. stuart: wait a minute. what are our viewers supposed to do? >> fortunately president trump has through deregulation opened new avenues for buying health insurance on the individual market, the so-called short-term plans you can now buy them for

up to a year and then provided you're still healthy renew. stuart: do i have to have all of the things covered which president obama insisted. >> absolutely not. that's one of the things that drove price so high. you had to have the one size fits all washington design package. stuart: but it's not totally dead yet because i'm still paying the surtax to pay for obamacare. >> that's right, the taxes are still in place, some of the regulation that is were authorized under the law are still in place and, of course, the vast expansion of medicaid, the other side of the law which is thriving the nation toward entitlement crisis far bigger than medicare. stuart: that's true. you first came on the program seven or eight years ago when obamacare passed. >> nine. stuart: carried that thing around with you ever since. are the days now numbered -- >> if lawmakers would have read this, they never would have voted for it.

stuart: are you going to be back on the program at some point in the future hawking that thing around? >> no, pretty soon -- stuart: retire it? >> congress will come to senses, half of the law that's in effect because medicaid we now have 75 million people on medicaid, 20 million more than medicare, enrollment is increasing rapidly, the per enrollee cost of health care is going up far faster than medicare and it is threatening to bankrupt this country. stuart: you still have work to do, betsy. don't slack off now because you beat this thing. betsy mccoy, thank you very much, indeed. now, new york -- wait for it. new york city is considering a law that would make it illegal to walk and smoke at the same time. if you're caught smoking and walking, you could be fined $50, the supporters say, this bill would keep second-hand smoke away from pedestrians.

>> time to give up walking. ashley: you're still putting out secondhand smoke. stuart: check the big board. what a turnaround. now we've turned to the downside, that is the low point of the day so far, 23,896, that's where we are. next as i promised, he is going to try to read my mind. ashley: good luck. stuart: not easy. [laughter] ♪ mom, dad, can we talk?

sure. what's up, son? i can't be your it guy anymore. what? you guys have xfinity. you can do this. what's a good wifi password, mom? you still have to visit us. i will. no. make that the password: "you_stillóhave_toóvisit_us." that's a good one. seems a bit long, but okay... set a memorable wifi password with xfinity my account. one more way comcast is working to fit into your life, not the other way around. retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce.

real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver.

stuart: i've been waiting for this. our next guest has performed in front of president clinton, eli manning to name a few. the mentalist is going to read my mind. >> we are in the same business, my friend. right now you are reporting on trade wars, tariffs, interest rates going up. but those events independent of the human mind don't mean anything, it's people's reaction. people are unpredict i --

unpredictable. i want you to imagine right now the dow jones industrial average, 30 stock that is supposedly indicate, you know, the economic health of the country. i want you to picture for a moment, i will have each do this in a different way, take the list, you know the companies all the way down the wal-mart and visa, you go and you cross out one and you cross out another one, you cross out a few, you see are seeing in your mind, ashley, and then you circle one of those companies. ashley: yeah. >> there's no way what you circled or crossed out. you are getting de javu. i tell you you want to go to underdog. you probably crossed out apple. you looked around and you kind of went back and forth and you debated, close your eyes, for me. ashley: all right. >> now, if i was a viewer at

home and was skeptic, we must have set this up, we must have talked, is there any way, shape or form anybody would know which one you circled inside your mind turn around. stuart: that's really good. stuart: what about me? what about me? [laughter] >> this is no way to learn what the entire landscape is. i want you to expand s&p 500, suddenly more companies, now this becomes almost impossible, 30, i could watch his face, ashley poker face. think about the industry. every time i ask you a question, say no. human lie detector, i'm going to ask you industries, if you're thinking about alphabet which is a tech company, say no when i say tech, i know it's not

alphabet. i was watching his face. say no to all of them. is it a tech company? >> no. >> is it energy? >> no. >> telecom? >> no. >> manufacturing? >> no. >> automotive? >> no. >> technical? definitely hesitation. stuart: i flinched. stuart varney flinched. >> cracked under pressure, my friend. look at me. no. too obvious, you considered, you said no. just like you didn't wanting to with the big ones. >> right. >> what did you think of? >> ford motor company. stuart: now that's good. >> gentlemen, let's thank of

important stuff, think about bank account numbers. ashley: good luck. stuart: our viewers are intrigued by this, where can we see you perform? >> if you're in new york city i have a show taking place every friday night, called truth be told, unlike anything you've seen, like this, interactive, not just about the stock market, bringing my a game to fox business, but pretty much where we involve people, you learn how the human mind works, very wholesome for the family, i pick theater, have you ever been there? >> no. [laughter] >> i know that you're telling the truth. the lush leather chairs and you get to see me in action, bring the whole family. stuart: say it again. >> truth be told, ipic fulton market. stuart: we have a commercial break coming up. are you going to tell me how you did it during the break? >> no chance, i will leave you wanting more. number one rule of show biz.

stuart: ladies and gentlemen, there will be more varney after this. [laughter] ... baby boomers,

here's something you should know. there's a serious virus out there that 1 in 30 boomers has, yet most don't even know it. a virus that's been almost forgotten. it's hepatitis c. hep c can hide in the body for years without symptoms.

left untreated it can lead to liver damage, even liver cancer. the only way to know if you have hep c is to ask your healthcare provider for the simple blood test. if you have hep c, it can be cured. for us, it's time to get tested. it's the only way to know for sure. stuart: i've got to tell you that ashley and i were just blown away by pearlman. he did this mentalist trick, forgive me for calling it a trick and he got the right, the company that i was looking at the company you were looking at the man got it dead right now can we get neil cavuto up on the screen please? is he there yes he is. put neil full on, please. neil? you're going to work and he's going to read your mind. >> rapid fire where are you neil neil: in my studio. >> we are numbers folks here think of a number between 1-100

right now. neil: i am. >> i want you to change your mind at this moment change to a different number. neil: okay. >> nobody likes to go smaller, let's go with this. can i hand you the pen stuart? stuart: yes. >> i'll have you lean over so tell us what were you thinking about what was the number? neil: the latest one? >> whatever is in your mind right now. neil: 4. tell him what i wrote down please? stuart: 4. >> it's true. reverse psychology you went bigger and back down to 4 neil i'm inside your head. neil: no, i started out with 2. i'm kidding. i don't know what i did. i heard that stuart was going to have you on so i wanted to try to telegraph what i thought the market would be at when we would be picking up from stuart at noon and look what i did. stuart: neil we don't believe you. neil: i