measures that would be considered antibusiness is a thing to watch. maria: we will see. dagen: i dreamed about ben bernanke, the overarching stepping out of the way and creating stimulus. maria: you dreamt about ben bernanke. have a great day, varney & company. [laughter] stuart: all right. maria: we are going to go to dinner. stuart: good morning, maria, and good morning, everyone, i got it, first thing you want to know how is my stock doing today, let's get right at it, maybe a modest bounce, quite a contrast to major losses across the board yesterday, half hour from now, we are looking at a solid gain for the dow, up about 180, look at the nasdaq, 70-point gain there. i'm going to call that a solid bounce. how about tesla? let's see what kind of bounce we get there because we've got news, more production delays and

elon musk himself will take over the job of producing cars, so they don't make money, they can't make enough cars, they're heavily in debt and having trouble raising new money, at once golden car maker tesla has its problems, i will get that quote on the screen for you a little later, a modest bounce for tesla this morning. how about facebook? the news there is a spat between mark zuckerberg and apple's chief tim cook, facebook wouldn't have privacy scandal if he would have been in charge. zuckerberg called that extremely glib, again, i will get to the facebook quote, it's up just a little. amazon, whoa, attacked by president trump as a tax avoider, the stock was pounded down $75 yesterday, i believe it's down a little bit more this morning, i will get you a solid quote shortly. profit reports they start to arrive in next two weeks, the market's future will depend heavily on how performance big

names produce. i have a political headline that i never expect today read, the crown prince of saudi arabia accepts israel's right to exist and he says, iranian leaders are like hitler. tuesday april 3rd, varney & company is about to begin. ♪ ♪ >> what a great team we witnessed in this tournament and tonight the nova nation has another national championship. stuart: well, as you can tell, big night for villanova. not enough could stay up late to see the end of it. they won the ncaa national championship, beat the university of michigan, thoroughly beat them, 39-62, second trophy in three years, villanova dante, he broke the record for the most points

scored off the bench, 31, he was named most outstanding player of the final 4. coach jay wright became only the third active coach to win multiple titles. well done, indeed. now, you would have thought that philadelphia would have learned after the eagles won the super bowl that apparently they did not, fans climbed lamp posts, lit fires in the street, general mayhem to celebrate victory. got it. let's get serious, let's talk about money. i want to go back to stock futures, solid bounce this morning, there were concerns over china trade yesterday but the real carnage was in technology, no question about it. across the board, the big names that led the market rally were the leaders on the way down. market watcher kristin is with us now, what do you think about this, that a rebound in the stock market depends heavily on really, really good profit reports two or three weeks from now? >> completely agree. you know, the economic

underpinnings of the valuations of stock depend on earnings and look like they are going to be up 17% year over year in s&p, technology up 22% forecast. stuart: surely that's good enough for rebound for tech, what do you think? >> i think so. it's buy the dip moment, they are going to grow earnings better than market and that's better long term. stuart: ladies and gentlemen, chris is a brave young man, we have seen a lot of buying opportunities, that didn't pan out very well. you think this is it? >> that's right. i talked about -- i thought we could take some opportunity early onto wait for a better price moment, i think this is a better price moment especially for technology stocks. ashley: i was in the new york exchange floor as the thing went down, it's like the fall in february, a lot of traders said they totally believe it was overdone, the fears of a war -- trade war with china were perhaps, you know, they didn't take it as seriously. they thought it was something lurking in the background. as for tech, come on, if we get

good earnings next week, when we kick off, that will be good. also we have the job's report that comes out on friday for march and if that is very solid and paints a rosy picture, then we could turn this thing. stuart: well, let's move onto tesla. [laughter] stuart: do you own? >> i do not own it and our firm does not own tesla. stuart: what are you saying -- okay. tesla announced just -- just announcing, just got this in, that's why i'm stuttering here. their production for the first quarter total 34,494 vehicles, 40% increase from the previous quarter. in the past 7 days, they produced 2,000 model 3 cars alone, okay, that just came in from tesla. much better production than everybody was expecting. i wish -- that's premarket. look at it. you should be buying that thing. tesla is up 9 bucks.

2.71. ashley: 2,000 model 3's? stuart: in the last week. ashley: target is 2500, still misses but a heck a lot more. stuart: you're still not going to buy it, chris? >> still not going to buy it. elon musk is sleep on the factory floor so this might be some of the effects. stuart: a sleeping bag in the factory floor. >> not a good sign of a stock that you want to buy, stuart. stuart:i will talk away from that one. profits will be so good we will get rebound in tech and you are going to buy it? >> that's right, technology is largest sector of s&p, 25% of makeup of the markets. stuart: i hope viewers feel better after yesterday's debacle. chris, thank you very much, i will switch gears to politics, why not, saudi arabia's prince slammed the iran nuclear deal, he does not like it and bet yet defended israel, backing right to exist.

lisa boothe is with us now. iran to a side, i bet you never expect today read a headline saudi arabia accept it is right of israel to live. >> i didn't, i think it's largely to iran as the conference says president obama completely misjudged what would happen with iran due to iran deal, basically president obama thought that the iran deal would temper iran and they would change their behavior, that has not happened, so saudi arabia is looking for other allies like israel and there's been other signs of thawing relationship one back in march, saudi arabia granted india's national carrier the ability to use its air space with trying to, you know, fly to israel which is a huge change in relationships and also the israel ie army chief had also announced that it's ready -- israel is ready to share intelligence on iran as well. there's admission that there was back channels of communications

between countries. some signs of, you know, sort of the changing relationships. stuart: looks like a real radical realignment of the alliances in the middle east. i mean, it's saudi arabia, the united states and israel amazingly against iran and hezbollah and backers. >> remember too, president trump went to saudi arabia, gave the speech to 50arab leaders basically call to go work together both against terrorism but to counter iran as well and also president trump has doubled down on a relationship with israel announcing the move and move of embassy to jerusalem. i think it's a culmination of how bad the iran deal was and president trump's steadfast support for israel and also changing relationships with saudi arabia because we know that president obama had a really poor relationship with saudi arabia. stuart: i just want to look forward for the november elections, i want you to listen to what oklahoma republican

congressman tom cole had to say about the midterms, roll that tape, please. >> i think there's going to be a very challenging election environment, nobody has had a good off year election since 2002. so i think republicans will be well advised to get ready. stuart: republican supporter, are you worried about november too? >> i have always worked in politics throughout my career. of course, i'm word about november. comes down to the simple fact that republicans are in the minority and when you are in the minority, of course, your people, your base are going to be motivated to turn out and vote. stuart: not in congress, i mean, they don't have minority in congress, they have the majority in house, senate and they have the white house. >> democrats are in the house and the senate. when you have in the minority as the base, voters, you will be more charged up than the party in control, so this is going to be a mobilizing factor for democrats to turn out and vote, we have seen this with the resistance and that is something of concern. also opposition drives people to

the polls more than support and for republicans what are you opposing right now, you have both bodies of congress, you the white house, the economy is doing well, you look at the tax reform deal, so what are they opposing? so that is my concern that republicans aren't going to be as motivated to turn out to vote as democrats. stuart: referendum on president trump in many respects? >> i don't know if it's a -- i think it's just a simple fact of being in the minority, we don't know how bad it's going to be, it's going to be worse in the house than the senate simply also due to the fact that democrats are defending ten states that president trump won, five by double digits, different stories with the election the house and the senate. stuart: you know one thing that you're not supposed to say, only time will tell and i suspect that only time will tell. >> well, you said it, i didn't. [laughter] >> i let you do it. stuart: thank you lisa, you're all right. president trump tweeting on immigration this morning, here it is, the big caravan of people

from honduras now coming across méxico and heading into our weak-law's border have better be stopped before it gets there, cash cow nafta is in play as is foreign aid to honduras and the countries that allow this to happen. congress must act now, what's the latest? ashley: yeah, i wonder how mr. trump feels about this, he said over the weekend that méxico was doing very little if not nothing in capital letters about this caravan of migrants from el salvador, honduras and guatemala, the word is that this caravan has been stopped, we should point out -- it's been stopped in the southern part of méxico, most of the people on this trip if you like have been registered, some have been put away to be deported, others have applied for humanitarian visas because they are especially vulnerable. stuart: méxico is responding, let me say this, the mexican government said this under no circumstances does the governor of méxico promote regular migration, we don't do this, we

don't let people through. stuart: they are responding from pressure from trump. ashley: yeah. stuart: check futures, please. nervous people this morning after yesterday's debacle, we will be up a pretty solid gain at the opening bell. it is a big weekend coming for golf, the masters start thursday, tiger woods will be playing first time played at masters since 2015. golf is pinning a lot of hope on a tiger comeback and we are on it. the epa rolling back obama era emissions standards for cars and vehicles generally, california says, oh, no, we are sticking with the old rules. does that mean car makers will have to build special models just for california? will they do that? [laughter] stuart: napolitano passes judgment next. t's right for our clients,

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stuart: the epa wants to lower

emission standards for vehicles, however, california says oh, no, we have our own higher standards and we are sticking to them. all rise, judge andrew napolitano is here. first of all, this is clearly a very divisive issue, it could really wreck the car market, but my first question is, can california set its own omission standards and defy the feds? >> as long as the standards are higher than the fed rather than lower. the fed set the floor, california can set its own ceiling, you're in my own home state of new jersey has the same high ceiling as california. now, can it do that to car that is come into california from other states? that's the problem. the problem is not registering your car in california, california can do what it wants with its own cars that it seeks to register, the problem is are they going to interfere with inner state commerce by making it more expensive for vehicles to come into california, stop

you at the border and test emissions, if they did something like that, it would be unconstitutional because it interferes with inner-state commerce which is federal or congressional area of regulation. stuart: california is a huge car market so you can understand that car makers could make cars to the standards required in california. >> yes. stuart: different model for everybody else. you can't do that, that's impossible. you can't do it. >> if california requires it, the car makers you do it because as you said it's such an extraordinary market and the consumer will pay for it. the consumer wants it because the consumer voted a government that requires it. aren't the voters of california crazy progressives just like their loopy governor? stuart: i didn't use those words. [laughter] stuart: if you want to use those words, use the words. >> here come emails. stuart: a serious situation because it would be impossible to have one set of cars and

another set of cars for different standards of california? >> a case involving mud flaps on the back of tractor trailers, one state wanted them rounded and one flat, and the supreme court said, you can't do that, you're making it more expensive to transport the goods by stopping the truck. stuart: so -- okay. >> set federal standard. stuart: i think california wins this one. they have such clout in the car market and the automakers will not be making two different types of car, one for california and one for everybody else, that's out of the question. >> if they're not going to make two different sets of cars california loses, california will win if it limits cars registerable in california with those with higher emission standards. stuart: wrong, they will win

because the car makers will adjust to california standard, california standard is universal. >> the cost of making that adjustment will be born by california consumers. stuart: no, everybody else as well. >> i don't think so, i don't think so. why would they put a device in a car that's not required of them when they hate this device. stuart: we can expect you to move to california to breathe the pure air. [laughter] >> you couldn't wait to get out. stuart: that's true, thank you, judge. where are we going to open this market, everybody wants to know? well, it's going to be up about 150, 175 points and the nasdaq, technology will do very well this morning, pretty good bounce. music streaming service spotify goes public today in a way it's not your typically offering, we will tell you what's different about this one, we will tell you

what's important and we will bring it to you next. nah. not gonna happen.

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leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. we're all under one roof now. congratulations. thank you. how many kids? my two. his three. along with two dogs and jake, our new parrot. that is quite the family. quite a lot of colleges to pay for though. a lot of colleges. you get any financial advice? yeah, but i'm pretty sure it's the same plan they sold me before. well your situation's totally changed now. right, right. how 'bout a plan that works for 5 kids, 2 dogs and jake over here? that would be great. that would be great. that okay with you, jake? get a portfolio that works for you now and as your needs change from td ameritrade investment management. stuart: auto sales for the month of march coming out now, ford sold 244,000 vehicles, that is up 3.4% from march of last year. the stock is up 1 and a half percent. then we have spotify, starts trading on the big board today, cristina is with us. all right, cristina, what makes

this listing different from all the other ipo's we have seen recently, can you tell me? >> stuart, i heard this you never used spotify, it's a streaming service where people can listen to music and curates songs and the difference -- big difference between this listing and regular ipo's is they don't go through the whole road show of trying to seek investors, they don't hire an expensive bank in order to list, they say -- save millions and millions of dollars in fees by directly taking shares and putting on the market and last but not least, one of the other differences between a direct listing as well as ipo is they don't have to deal with any lock-up periods, that mines investors don't have to hold onto shares for several months, they can immediately sell today. it'll be interesting to see which investors are going to be selling those shares, again, those are the three most common differences between ipo and

direct listing, this is a company that's been around for about 12 years and they have not turned a profit at all. they've -- it's not that they have been struggling, an example of unicorn company with billion dollar valuation that has yet to turn profit. this company is so aware of it that they actually made a quote in their filing and that quote is we have incurred significant operated losses in the past and we may not be able to generate sufficient revenue to be profitable. they continue to go onto say that they don't expect to make money, this is something from the company that's listing today, don't know what the listing price is at the moment but if anything, we will see, it's going to be exciting, a lot of the traders around me are curious as to howie: this will play out. stuart: cristina, you are a trooper, second day on the air on fox business network, you struggled through a report with the dreadful noise in the background, i don't think you could hear a word that we were

saying but you did well. >> thank you. stuart: cristina, i have to go, thanks very much, we will see you shortly. >> thanks. stuart: we will open the market in four minute's time, we will take you there, a modest, pretty solid bounce after yesterday's losses, here we go

stuart: all eyes on wall street at this very moment in time because we had a whopping great decline yesterday, we were down, what, 700 points at one point. closed down 400, still a big decline, bang, 9:30, we are off, we are running, where are we going this tuesday morning after big decline yesterday? well, the early answer is we are up, across the board we are up 106, 112, 115, 116. i'm getting tired of this. we are up triple digits. we are up 111. dow 30 in the upside in green. s&p 500 up a half percentage point somewhat similar to the dow, a bit better actually. now, show me the nasdaq, please, it is up three quarters of 1%. a pretty good gain, but then the huge drop yesterday, we are getting close to 7,000 on the nasdaq. big tech, that's where the action always has been recently

and look at them go, amazon is up 21, microsoft up about a buck -- 1.23, apple is up 87 cents, alphabet, $8, $7, facebook is up 1 dollar. there's the stock of the morning, it's tesla, stock now up as we speak 6%, huge rebound, that's $14 higher. they've got model 3 production up four fold from the previous quarter, that's a big, big deal, musk is now taking over production. now, we have ashley with us, we have d.r. barton and mike murphy, but i'm starting with tesla, i want those -- ashley: overall number 34,000 vehicles in first quarter, up 40% quarter over quarter. of course, the model 3 which is supposed to be the mass-produced vehicle for mass appeal, they doubled the weekly output of that model, they've addressed they say the bottleneck that

created the problems in the first place, they managed to stop production quickly to upgrade equipment and in the last seven days they produced 2,020 model 3 vehicles which is encouraging. they don't need to raise any more capital, as long as they can keep resisting line of credit based on the production of the model 3, they believe they do not need to raise any money. stuart: wow, what would mike murphy say about that. mike: normally bullish, i don't like tesla here and two main reasons, number one what ashley pointed out, i believe they will need to raise more capital and the markets won't be comfortable -- giving capital to elon musk as they were in the past. i think that's the biggest issue, the second issue is that this delay that they've had, stuart, it's allowing the competition to catch up with them, i think there's going to be other places to go if you want an electric car in the near future than just tesla. stuart: you're not a buyer at 264.

sell it. d.r., buyer or seller at 264? >> i am a seller, i agree with mike, they are going to need money, they are still burning cash and they say they've got the production going, there's still only about two-thirds of where they want to be and need to be to stem that cash drain. stuart: am i right, ash that was a huge improvement in their production -- ashley: absolutely. what were they doing, 150 a week, very poor, almost laughable. now into the range, okay, they are almost to where they said they were going to be. it's taken a while. stuart: 15, $16 higher, mike murphy went on the air and said sell the thing and it's up only $10. let's talk apple and facebook, apple's chief tim cook said apple would never be in the situation like facebooks, the mishandling of user data, now facebook chief mark zuckerberg said cook's comments were extremely glib, can i say

something here? ashley: you can. stuart: zuckerberg should come out fighting, defendwhat he has created. ashley: but he is. stuart: he should be pounding the table, i have a free service here and i would think that most facebook users would say, okay, leave things as they are, i'm happy, don't change, just get on with what you are getting on with, am i right? >> i think exactly is what so many of the people that i've talked directly to about facebook but i do am pleased that he did one thing here, he went out to tim cook and said, look, you're making products for the most wealthy people in the world, i'm making a product that everyone can use that everyone can afford and we have to do things differently than you can on your high, high margin pedestal. ashley: you took the quote perfectly, d.r., if you want to build a service says zuckerberg which is not just serving rich people, you need to have something that more people can

afford. that's a shot at the pricing of apple. stuart: i would be a buyer of facebook and i think you would too. mike: i'm pleased with what zuckerberg is doing. he fired back, he punched him back and now he's focusing on the issue at hand with the data and running his business, so i don't need him in a day-to-day confrontation with tim cook or anyone else. he's operating the business, he's doing a great job operating the business. ashley: tim cook was remarkably aggressive. the way advertisers follow you on the web as per the business model of facebook is, quote, creepy. stuart: creepy, he said that? ashley: he sure did. mike: follow you on iphone. ashley: they follow you everywhere. [laughter] stuart: all right, let's not forget amazon, please, coming off the biggest point drop ever, down 75 bucks yesterday, up 19 now, d.r., now that's a dip and a half when you are down 13.91, are you buying the dip? >> that's a significant dip, i think right now that we are going to have some up and downs,

we might be able to buy amazon a little bit better than right now, i am long term, this is a legacy stock, i'm long-term bullish amazon and will continue to buy it every time it gives us a good dip. stuart: murphy. mike: bought amazon on friday at our firm and i think that it's a key level here, i think to d.r.'s point, this could roll over and go a little bit lower, the thing with amazon is you can't talk about value, apple, facebook, i think you can talk about the value that's there on selloffs, amazon is not a value stock, it's not going to be trading cheep if it goes down 100, 200 points, they have health care, groceries, they have delivery business that i like the weakness and was too tempting. stuart: you bought it 1400. ashley: if the fight with the president gets resolved and the impact on amazon is minor, that should be a spring board right to big, big jump-up. mike: a concern that we have internally is you don't want to

be in the fight with the government because that usually ends -- that doesn't end well for you. that's the major concern, if you push that aside there's a lot of upside. stuart: check the big board, we are 6 and a half, 7 minutes into the session and we are up about 116 points as we speak. 23,700 is where we are. general motors said retail sales in march were up 14% from last year, remember ford came out earlier, they were up over 3% compared to last year, nice little gain for general motors, up a buck, that's nearly 3%. disney could acquire sky's news division to concerns of 21st century fox proposed taker of the parent sky both stocks are down a little as we speak. now, have a look at gu e, they are selling part of their healthcare information technology business to private equity firm, they are getting about a billion dollars for it and the stock is down a half percentage point, you're not touching ge with a ten-foot

pole, are you? >> no, i am not, stuart. it's probably down about another buck for me, i think that gu -- ge continues to selloff, i kind of like the business, the healthcare information business and that's gone. stuart: okay, judging by the market auction, the market didn't like the price, just over a billion dollars, didn't like the price, down goes the stock just a little bit. apple, this is a major story with huge repercussions, apple reportedly plans to replace intel chips in mac's with its own. ashley: that story hit yesterday and killed intel because that's the last thing they want to hear because it's their chips that they use mostly in the imac, interesting bad -- bad news by intel but interesting for apple. stuart: buying it? mike: we own apple. we bought it cheaper, although

nowhere near its high and nowhere near low either. i think apple is great here, but you will see a lot of consolidation in the chip industry although the qualcomm-broadcomm deal didn't go through, you will see small players -- stuart: which are the smaller players are you buying? mike: we haven't bought any of the chip stocks, we actually own qualcomm still. we talk about the good ones, qualcomm hasn't worked out will because the broadcomm deal fell apart, but i think there's upside there as we discussed on the air that the ceo turned away $82 a share, the stock is trading mid mid-50's, something has to give there. stuart: which stocks do you own? >> qualcomm. >> i think intel is a buy here, the pushdown yesterday is a good chance and i'm with mike on being bullish chips for the intermediate term. stuart: how about this from

toyota, toyota america, the president thereof says, toyota america says, those tariffs could raise car prices by $400 a pop and he says those costs will be passed along to customers, is that a big hit to toyota, where is the stock, i didn't see it this morning? >> it's not a big hit to toyota, in my opinion. i also think, stuart, it's something that's leveling the playing field, we want consumers to be the benefits of lower costs but if there are trade deals going on where we need to level the playing field and costs need to get passed onto foreign companies, sobeit, that's the way it should be, we should have level playing field, and if you don't like it, don't buy toyota. stuart: well, well. [laughter] stuart: we have to go, d.r. and mike, gentlemen, thank you very much for joining us. >> thank you. stuart: check out the big board, not quite the high of the day,

close, 169, 170 points 2, 3,800. a wave of teacher strikes move across the country, yes, teachers in oklahoma walked out of classroom yesterday, the raises that they were offered weren't good enough, more teacher strikes in other states may be coming, we are on that one for you. francés president emmanuel macron blasting facebook and google. we will deal with that in a moment as well.

stuart: now hear this, both the dow and the s&p are above their 200-day moving average. now, to a lot of people that's intensely interesting and

ponder. the dow -- ashley: big wonky too. stuart: dow is 140. have we got that one, yeah. look at alphabet, that would be google, they are installing wi-fi on school buses in 12 states. all right, lauren, come back in again, please, what are they up to. lauren: if you take a look at the shares of google's parent company they are in correction mode, they are down about 15% from a recent high. we are seeing the so-called stocks come back today, here is the specific story that the wonk is done about google, in 12 states in rural districts they are giving out chrome books and free wi-fi to school buses, if you think about if you live in rural area, you likely do not have high-speed internet connections and long bus ride to school, now it's a free chrome book and connection and you can spend all the time in school bus

learning, so -- ashley: hopefully not the driver. stuart: that was very good but not wonky at all. you're okay. lauren: did ashley just say except if you're the driver? [laughter] lauren: although you could get good directions. stuart: we are moving on. appreciate it. the president of france mr. macron warned that facebook and goog rl becoming too -- google becoming too big to be governed. ashley: normally they just fine them because it's huge revenue for europeans, mr. macron is saying they are getting too big, heading in the direction and too big to be governed, however, he did point out that they have been good for france, they have created jobs and created ecosystem in france and he's thankful for that but he does say they have a classical issue and monopoly situation mr. macron says and they are huge players and at some point

in time it will be a u.s. problem and not european union problem, your people may say, wake up, they are too big. stuart: okay. i will leave it right there. i really am. it has clearly been a rough road for stocks lately, however, i have to tell you that companies start reporting profit at the end of next week and two weeks from now the really big stock companies start rolling with profit reports, joining us now chief equity strategists bob dole is back with us. in two or three week's time we get profit reports, do you think that -- i'm told they're going to be really strong like technology profits up maybe 20%, is that good enough to turn things around for technology and turn things around for the whole market? >> let's hope so, stuart, i think so. the fly and the ointment i want to put on the table, remember how earnings come in versus expectations, when expectations are really high, you have to exceed them.

that's what happened all last year, we kept beating expectations and the market went up. now expectations that are higher, i think we will be fine, the market will breathe sigh of relief but, boy, they better be pretty good. stuart: the key for stability is reports, that's accurate? >> ten days from today and until then speculation about the earnings and focusing all the other things that we have been consternation about, stuart. stuart: how do you think profits will come in? >> i think they'll be quite good particularly in technology, energy, comparison should be pretty easy, health care should be pretty good, there are hardly any place where is earnings won't be good, i think we will be watching carefully what do the revenue lines look like, how much is the company growing and importantly what does the cost

pressures look like, are we having issues around labor shortages or higher wages, we will be watching those things carefully but our expectation is earnings are what we need to settle things down, stuart. stuart: have you ever seen anything like this before? you and i have known each other for at least 30 years and been commenting on the market for a long, long time, have you ever seen a market so dominated by just maybe what, five stocks, big-tech stocks, have you ever seen this before? >> yes, it happens every so often. actually it was even more in late 1990's in so-called tech bubble when it was fewer than that that were carrying the market. we have a lot of stocks underneath those big 5 that are making a difference as well. stuart: it makes -- shows the change in america's economy, we are not an industrial economy any longer, we are a technology economy, isn't that true? >> absolutely right. technology and more broadly

services, there's no question about it, and those things are harder to measure. you can count cars, you can count widgets but it's hard to measure a service economy and that's one of the challenges we all in this business face. stuart: i'm waiting for those profits, bob dole, see you again, soon, promise. show me the dow 30, show me dow industrials, are we bouncing back that much from debacle yesterday? the answer is yes but ain't conclusive, we have what -- i can't count. ashley: 7, 23 in the red, 22 in the green, one unchanged, 6 in the red. stuart: i need glasses. [laughter] stuart: math as well. we are up 160 points,i will leave it right there. big weekend at augusta national, tiger woods makes return to masters, first time he's fought for green jacket since 2015. we will deal with it in a moment.

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stuart: this is a big weekend for golf, tiger woods making return to masters, first time we have seen him play for green jacket since 2015, big deal. look who is here, his name is jeff benedict and wrote the book on tiger and joins us now.

the actual title is tiger woods. >> great title. stuart: tells the story, does it not? here is my point, tiger has to make the cut for sure, he's got to be on the leader board on saturday and leader board on sunday and if he is, golf wins, if he's not golf loses. >> i think he's the one guy that moves the needle for golf. he makes people tune in who don't even care about golf and probably nobody who enjoys the pressure that's on him than him. stuart: he does, he enjoy the pressure? >> he thrives off of that. that's what made him so tough to beat all the years, he can block things out, he functions under pressure differently than all the other guys. stuart: now, people, i think, look at him a little differently now compare today say 10, 15 years ago. >> yeah. stuart: he's had problems inside his head with personal life and medical problems, but this is more than just a comeback, isn't it? >> it really is. this is a story that transcends golf, in fact, it transcends

sports, this guy has been through more things off the course than probably any athlete you can point to in the last 20 years, and he's been scrutinized more than anyone else and sometimes unfairly but he's been through a lot of things from infidelity crisis, divorce, losing sponsors, all the injuries, the back problem, he had arrest last year, who would have thought ten months ago when he was found on the side of the road slumped in the car that he would even swing again, never mind be where he is right now. stuart: do you think america is rooting for him? i think it is. >> absolutely. people like me, i don't even play golf, i don't really care about golf, i'm rooting for him. there's a lot to root for here because he's come back from so many things. americans love the idea of a guy dusting himself off and in a sport of golf you can't hide under the helmet. it's just you in front of cameras and crowds and when he gets out there, he does things that nobody else can do.

stuart: you have to make a prediction, you can't walk on the show without prediction, does he make the cut? >> i hope he does. i would love to see him on the leader board. stuart: is he going to be on the leader board? >> i hope so. if there's anybody who could come back and do it -- stuart: what are you doing? you don't play golf but you've written a book about the ultimate golfer? >> you don't have to like golf to be interested about tiger woods. stuart: appreciate it. we are, yes, we are starting to get the numbers, real numbers and it's just like we thought it was, the president's tax plan is really hurting the blue states like new jersey and new york, you'll get my editorial on that at the top of the hour, stay right there, please. hey, what ag here? we're voya. we stay with you to and through retirement. so you'll still be here to help me make smart choices? well, with your finances that is. we had nothing to do with that tie.

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stuart: this looks really bad for those high-taxed states.

they are already taking a hit from the new tax law. in manhattan, new york city, chock-full of 1%s condo, co-op sales down a whopping 25% in the first three months of this year. that is on top of a big decline at the end of last year. i understand that our viewers will not lose much sleep over poor old manhattan real estate but the democrats who run new york, new jersey, california are worried stiff. you see if you make good money you live in those states you face a whopping tax payment increase because only a small fraction of state and local taxes are deductible on your federal return. why would anyone who makes money buy a home in new york city? why would you do that? just by becoming a manhattan resident you are guaranteed to pay a lot more in tax. no wonder high-end real estate sales are dropping like a stone. and don't think you can move across the river to new jersey to escape. oh, no. the new tax law slams new jersey

harder than any other state. 10.2% of all new jersey households will pay more. that is 300,000 households. you will pay more. new jersey people already pay high taxes and the new governor wants another tax hike. if you want to get out. the state will charge you an exit fee. why on earth would anyone who makes good money buy real estate and move to new jersey? you're going to hear a lot more about this as the bad news sinks in. as we said high-taxed states are getting clobbered. by the way it's a double shot. as the decline in manhattan real estate shows, people are not moving in. just wait until you see the numbers for people moving out. after decades of democrat-led, tax-and-spend by new york, new jersey, california and others, the tax chickens are coming home to roost. the damage to these states will be severe. and the win for low-taxed florida, texas nevada, tennessee

and others will be huge. the second hour of "varney & company" is about to begin. stuart: this is breaking right now. president trump just tweeting about amazon again. here is the tweet. i'm right about amazon costing the united states post office massive amounts of money for being their delivery boy. amazon should pay these costs plus and not have them borne by the american taxpayer. many billions of dollars. po leaders don't have a clue or do this, question mark? that is very strong stuff from the president. what happens to the stock t was up significantly. now it is up just a buck after losing $75 a share yesterday. that ain't no rebound, folks. more on that in a moment.

the big board show as triple-digit gain just. we're up 101 points, -- 23,745. microsoft is down, apple is down, facebook is down, all big losses yesterday, most of them down again today, look at that! how about tesla. a positive production number came out first thing this morning. they said they don't need to raise more capital if they produce at this rate. initially the stock is up $16. now it is up only seven. pullback. ge, a stock we used to follow because it is great. missing out on the rally. biggest loser on the rally. toyota sales up. they sold 222,000 cars. the stock barely budging on that. my take at the top. hour, high-taxed states like ones you see on the screen

shortly, they're taking a new hit from the tax law. california, new york, new jersey, illinois and connecticut. are they taking a hit. grover norquist, americans for tax reform president is with us now. grover, i quoted real estate sales in manhattan way, way down. households getting hit in new jersey. am i exaggerating? that i think these high-taxed states are going to get killed? >> you're not exaggerating. the price they are selling for also dropped dramatically on the very high-end condos and apartments. we, we, the american taxpayer have been subsidizing big government in expensive and corrupt cities and incompetent states and the problem is when those states would spend and spend and raise taxes on higher income people, they would allow them to deduct that, those tax payments to new jersey, new york city, chicago, l.a., and deduct them and the rest of the country ended up making up

those tax deductions which were skewed to people, rich people, living in blue states and blue cities incompetently or corruptly led and have tremendous overspending. we've ended the subsidy for corruption and incompetence. and governors and mayors who thought, nobody-minded if i was corrupt or incompetent or spent too much because they didn't pay full fare, now they are. so liberal democrats living in new york city will have a conversation with their mayor and their governor and they can't argue with washington. washington just took away the unfair subsidy they were getting. they now have to have a conversation with democratic governors and mayors to reduce spending in the overspending states. stuart: they won't have a conversation, grover. they will leave. >> that's a conversation. stuart: that is a conversation. i get it. >> it is a parthian shot as you

leave. i'm leaving because of your tax policy, you ding bat. stuart: give me the end game here. it will be a year here, wealthy people, elites in blue states they will go to their accountants say, what is the damage? the accountants will say, it is huge. what is the endgame. it is mass exodus or what? >> there has been a exodus from high tax spending states to the 10 states with low -- nine states have no personal income tax. you go from the high-taxed states, the high-spending states. people are leaving there by the millions, oaf a decade and moving to low-taxed states that has been going on for some time now. that is why the electoral college tend to be settling into and, settling into no income tax states and leaving high income taxed states and there is in the middle competition. arizona is looking to phase out

its income tax. north carolina is looking to phase out its income tax. wisconsin. there is a rush to get rid of the state income tax so you can compete with tennessee and texas and florida and other no-income tax states. stuart: fascinating stuff. i'm waiting to see how many people leave. i would love to see numbers how few people move in. that is the other side of the coin, isn't it? if you're a executive making good money in someplace in america with a low-taxed state, why on earth would you leave go to new york, new jersey, connecticut, whatever. you wouldn't move in in the first place. last word to you. >> good news, this will keep taxes from going up in states. new jersey collapsed quickly, 1965, they have their first sales tax. 1977 that i first income tax. back in '65, new jersey, no sales tax, no income tax. they got those two taxes to reduce the property taxes. today new jersey has high property taxes, high sales tax,

high income taxes. they can turn it around. they got themselves in this hole rather quickly. stuart: they won't turn it around. i know new jersey. >> trying to be nice here. stuart: grover norquist, thanks for joining us sir, appreciate night you got it,. stuart: to president trump going after amazon. i'm right about amazon costing the united states post office massive amounts of money for being their delivery boy. amazon should play these costs plus, not have them borne by the american taxpayer. billions of dollars. leaders don't have a clue or do they. is that post office leaders? ashley: yes. stuart: or do they, got it. dennis gartman with us, the gartman letter, editor and publisher. some attack on amazon, it appears to have an effect, amazon rally pulled back significantly. what do you make of all this, dennis. >> not the last attack that will happen to amazon by the

president. not the last attack on amazon by the congress. more will come. this is not a good thing to see happening. amazon is in very difficult dire straits at this point. quite honestly i disagree with most of the president's tweets on this one i have to agree, amazon should be paying a higher price. they are being subsidized by american taxpayers. you talked talked about american taxpayers subsidizing new jersey. why should i subsidize new jersey and amazon. won't be last time you see more of this. stuart: why is amazon in dire straits? they are at $1367. they dominant certain businesses? >> i see congress will take up antitrust and problems with amazon over next several years. i have one rule of trading everybody seems to like. i have stated that when problems occur there is never just one cockroach. there is us a more. these sorts of things seem to play out for a long period of time. if you're an owner of amazon. if you're a technician, look at

trend line on the lows over the last year. it has been broken. you have a massive top having been formed. the public bought into late. i think there is more to be seen on the downside. i think problems will occur from amazon both from the presidency and the congress over the next year or two. that is just my guess. stuart: you made your point and we appreciate it. how about tesla, they came out with the much better production numbers first thing this morning. you're laughing. what do you make of tessa? >> well, i think it is one of the great scams of our time. it's a great automobile. those that have been produced however, why would you buy stock in a company whose president continues to have three different venues that he's spending his time upon? shouldn't he be focuses on the problems with tesla? this is the first time they have come even close to any of their projections. they are very close to dire straits as far as bankruptcy is concerned. they need to come to the capital markets continuously more doubt

which has been downgraded several times. i think tesla has problems. stuart: you're down on amazon, you're down on tesla. is this sour grapes, forgive me for pointing this out, mr. gartman, you have not been a technology investor? >> no, i have not been a technology investor. i probably won't be. it is beyond my kin, stuart. i'm much more comfortable owning things that make sense to me, automobiles, steel, copper, lumber, the, as i have said on the show before i'm comfortable with the things if i dropped them on my foot will hurt. i will leave technology to the people who are wiser than are, probably wiser than i, i just don't get it. i don't get spotify. i don't get the high-tech industries at all. if i learned everything in 40 some years of doing it, invest things you have some comfort in and you know something about. i simply don't know anything about high-tech. i will leave that to others. i wish them all very well. i hope it works for everybody

involved. it is just not for me. stuart: okay. i am older than you, yet i'm the guy who -- >> we analogy. stuart: we got emails than that as well. dennis, cheer up, lad. it ain't that bad. see you soon. >> i'm always happy. stuart: i guess you are, actually. good stuff. all right another win for philadelphia last night. villanova beat michigan 79-62. very late. i couldn't stay up to watch. fans flood flood the streets in anticipation of philly fans, light polls were greased. two fans were arrested. fair to say less rowdy than the eagles super bowl win. coming up, saudi arabia's crown prince slamming the nuke

deal and defending israel's right to exist. i bet you never thought you would see that but we did. prepare for a blue wave in november, question mark? that is what republican congressman is warning about. kevin cramer running against democrat heidi heitkamp in north dakota, he will respond to that. what would nancy reagan think of the current occupants of the white house. nancy reagan press secretary, long-time friend and colleague with us later this hour. you are watching the second hour of "varney & company." ♪ how do you win at business? stay at laquinta. where we're changing with contemporary make-overs.

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stuart: we certainly pared the gain. now we're only up 40 points, 23,600 where we are. here is something i never expected to see. the crown prince of saudi arabia

has affirmed israel's right to exist and has criticized former president obama's iran nuke deal. that kind of signals support for president trump's new middle east agenda. joining us doug schoen, former clinton pollster, fox news contributor. i never expected to see this. >> i never did, stuart. as a younger person i expected israel to be at war with saud saturday am some point this is ratification of part of the trump agenda, with el-sisi in egypt and saudis, united coalition with israel against iran, save the possibilities in syria. stuart: i say a win for president trump. realignment of the forces in the middle east. a clear-cut statement who is with us and who is not. what is this about the u.s. pulling out of syria. you don't think that is a good idea? >> no, i don't. that empowers iran and isis.

stuart: they haven't done it yet. >> the president said explicitly he would cut off the money and get out. that bothers me. he changes his mind. we know that. let's hope on this one he does. stuart: well he could be persuaded if the saudis were to pony up a little money like $4 billion. >> that would be very great, stuart. i would be supportive of that. stuart: successful move on the part of president trump. >> that would be segacious. stuart: get the buzzer on that. >> come on. stuart: california senator dianne feinstein tweeted about president trump and daca. i will read it for everyone. president trump is absolutely wrong on daca. that will be the dreamers, okay? he unilaterally rescinded daca for no reason and has rejected he have single bipartisan proposal that would protect dreamers from deportation. it is simply false to say that democrats walked away from the table. >> stuart you know i'm sympathetic to that view and

senator feinstein. if we got a deal for the wall plus the dreamers, it was a step in the right direction for both sides. i know the president wants to move to merit-based immigration system and i'm not necessarily against it but take the parts of the deal you can get done that would be win-win for america and i dare say both parties. stuart: as i understood it, president trump wanted $25 billion for the wall and in return for that money he would allow 1.7 or 1.8 million streamers, daca people to stay. >> right. stuart, wasn't that deal on the table? >> he wanted more than that. it wasn't just a -- stuart: he wanted to end chain migration and wanted to end the lottery. you can throw that in as well. >> those are big deals. those are big deals. it is not the deal that the democrats would get. to get the wall which was his principle promise in the campaign which could reelect him, do daca, which could help reelect him, and not do it is a

mistake. stuart: senator feinstein is wrong if she suggests donald trump, president trump, never offered that deal on daca. he did offer it. >> the deal you're describing he certainly offered. it is not acceptable to the democrats. there was a pared down version, stuart, that would have helped him, helped the dreamers and help the democrats. sadly he didn't take it. stuart: we'll leave it at that because i'm out of time. >> see you in florida, stuart. stuart: i know where you're going. >> i'm going. stuart: miami. >> you got it. stuart: are you really going? >> absolutely. stuart: you're moving? >> i'm spending more an more time there, seeing what it is like. you just reported on the hit we've taken in new york. i see it where i live. i see the impact on retail. i see the impact on culture, commerce. stuart, it's bad and it's just a result of high taxes. i'm heading to florida. stuart: we're in agreement on something. >> exactly. stuart: okay. i have got to move. teachers around the country striking from oklahoma to kentucky to west virginia.

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stuart: we're getting car sales numbers. gm coming in with a 14% gain in sales compared to this lime last year. gm no longer will report auto sales monthly. that is quite -- ashley: they say it is not accurate because it doesn't pick uptrends. we'll find out at the end of the quarter as opposed to every month. stuart: can't wait. as you know teachers across the country are going on strike, shutting down schools, amping up pressure on lawmakers to meet their demands. thousands of teachers in oklahoma and kentucky walking out. more states.

what have we got. ashley: arizona, west virginia and oklahoma want more pay. they say they are not paid enough. kentucky, teachers are walking out upset with changes in pension. arizona teachers want a 20% pay raise. oklahoma teachers got a 16% pay raise, but the teachers union says quote, that is incomplete and are still striking. west virginia, they got a 5% raise after nine-day strike in february and march. bottom line their pay not kept up with the cost of living. they want more money. as with everything on this case i always believe that tie it to performance. if you can tie it to performance then i have no problem with that. but to give someone across the board raise and that class is failing i don't agree with that. stuart: another problem is, it is not so much the pay, it is the pension. ashley: yes. well, yes. stuart: how would you fund a pension which is extremely generous. ashley: without bankrupting the state? stuart: a lot of states at the

moment laying off active teachers so they can pay retired teachers. ashley: kentucky went to hybrid of traditional pension and 401(k) style savings plan. they're not happy with that. stuart: that is the way to go. ashley: that is the way to go. stuart: the way everybody else is. come on, sports fans. coming up an ipo like no other, talking about spotify listing on the new york stock exchange. but is it worth your time or money to get into it? we'll discuss it of course. the tiger effect, ticket prices for the masters up 15% in some cases, this son the secondary market golf pinning a lot on a tiger come back. brian kilmeade on that in a moment. ♪

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♪ stuart: yes it is. in some aspects of life. i wouldn't say everything is getting better all the time. we'll put a smile on our faces for this one. it is the beatles at 10:30. check the big board. we're moving up again. now we've got a gain of 94 points, 23,738. how about those big tex? all of them were down earlier. all down earlier accept microsoft, apple, facebook are all down. follows huge losses for all of them yesterday. it is happening right now, epa administrator scott pruitt about to hold an event to announce new fuel efficiency standards. there is talk that pruitt may be the next cabinet member to go. but a top administration

official tells fox called mr. pruitt last night to offer support. pruitt may address that when he takes questions we will bring it to you live. we'll figure it all out right there. now this, tesla, positive production numbers this morning. they don't need to raise more capital if they continue to produce at this rate. tech expert lance ulanoff is with us this morning. what are you laughing at? did i get the name wrong? >> no, you didn't. 100% right. stuart, will tesla survive and thrive? >> i don't know but i'm really encouraged 2000 cars a week, model 3s. that is really important, close to the goal of 2500. i know elon musk has taken to sleeping at the factory. i don't think he kicked out the guy doug, who he basically put in there to manage it. elon is very hands-on guy. he will go in there deep and try to fix things and make sure because he made promises.

you had a guest on before who called it one of the greatest scams in history, i was really bothered by because elon musk is somebody who executes, who does start businesses, multiple businesses, makes all them of work. it is a struggle on the car side because of the environment he operates in. it is difficult to meet and beat people like gm who have all the factories. but i'm encouraged and i know it is also doing a lot in the competitive market space because a lot of people are starting to build electric cars or promising they will have more of them by 2020, including volkswagen and gm. i think that is good. what he has done for this market is actually good. stuart: so the whole world, not the whole world, a lot of the world is coming down on elon musk and down on tesla, but you're a true believer? >> yes, i'm a true believer. i'm certainly wored, no i'm not. i suggest he maybe should sell tesla he will not fully compete

against these guys, when gm and others ramp up on the car side but i believe very strongly in elon musk. stuart: we'll leave rightright there. spotify is about to trading on new york stock exchange, first time the private shares will be publicly-traded. it occurs to me spotfy has a lot of competition here and they're not making any money. >> so they had to compete for example, with apple music, which has $15 family plan. multiple people on it. of course spotify did something very similar, 14.99, i don't know, five members family. when you don't charge people individually you make less money. they have a great plan with hulu, 4.95, students are one of their big markets. they're trying to compete with apple music growing aggressively. spotify is 71 million paying customers. which is quite good.

they have 159 million total, mostly customers not paying. apple music is surging. they have probably close to 40 million paying customers on their own. stuart: 40 million? >> yeah. i know they had 30 something before. stuart: how many million for spotify? >> 71 million. stuart: 71 million for spotify but 40 million for apple music and it is coming on strong. >> they have less time in the space. apple offers hardware. there is the music already on the device. you just have to sign up for it. you will get it free for three months. so they have levers that spotify does not have. stuart: sort me out for a second here because i don't, i'm not a music kind of guy, like the beatles but not much else. i don't listen to music very often. i listen to news all the time. >> okay. stuart: if i join spotify, can i get any music i want at anytime?

>> pretty much. pretty much. that is the idea, whole idea of paying. if you don't pay but less music but all the advertisements. the idea of subscription services all-you-can-eat all the music you want, differ stations and artists don't think about it. ownership of music has gone down. people are doing a lot less. music industry is totally upended by all of this. stuart: totally. >> i'm glad i'm not a musician all i can say. stuart: i have xmy satellite radio, there is beatles channel. >> that's it. now we know a lot about your music taste. stuart: or lack of it. >> i like it. stuart: lance, you're all right. we'll take you another time. thank you very much. show me the big board. we come back nicely. now we're up 125 points and climbing t has been a volatile day. lots of up and down but now we're up 124, 125.

23,766. this rye bound is not being led by the big techs which are really lagging. yesterday they took a huge hit, amazon especially. no significant bounceback for those significant names in technology. 10:36 earp time, time to come on in brian kilmeade, host of the "brian kilmeade show." i want to show you the latest tweet from president trump about the caravan of migrants, i know you've been dealing with this, brian. here is the tweet. the big caravan of migrants coming across mexico heading to our weak laws border had better be stopped before it gets there. cash cow nafta is in play as foreign aid to honduras and other countries allow this to happen. congress must act now. brian, the president first tweeted about this caravan after a "fox & friends" report on it. i believe it was over the

weekend. you started this, brian. >> i didn't work sunday. bus feed put some one embedded in there. "washington examiner" wrote about it. we confirmed it and covered it ever since. people say where is your heart and women and children coming here. wait a second. what about the women and children waiting in line like you did? what about the others with green cards, trying to work to keep a perfect record to stay here, writing huge checks in order to do it, many are not wealthy. why do they, this group of people, who might be fine people, number between 1200 and 1hundred, as i mentioned today on "fox & friends." it is like a kong -- conga line, more people walk and grab the waste of the other. they are within 400 miles from our border. why should about get in here ahead of everybody in line? >> there are pressure sure that president says mexico, you have to stop this. there are signs mexico is taking action. we understand the march have

been the had. -- halted. they are trying to blunt it. i suspect mesh cans are responding to pressure from president trump, you want to renegotiate nafta, you better do something about the caravan. >> i heard your tweet about nafta. they are loving nafta. we could have announcement of modernization of our nafta agreement as sometime this month. so it was on track for a big announcement which the president promised. and we urgently need, our trade experts all agree on that but i would say this. the mexican authorities say stop it by wednesday. why wednesday? they will take pregnant women and young children. what are you waiting for? what are you waiting for them to get a little further, to rotate through their shoes? make the move. we know if mexico wanted to stop them, they would have stopped them on theirrd boor. they thought it would be same old drill. i don't know if anybody from your panel is from long island,

we got hundreds of those refugees that stormed their way to the border under president obama, teaming into classes already oversized into public schools. they never called the mayor, governor, many didn't know about it, many are which ms-13. many people may be great or all are great people, i don't want to take the chance. if you're the president you have to worry about here first. stuart: if they go to california, set one foot in california you stay, you are golden. i don't think most americans think much of that. >> right. stuart: before we close i have to tell you about tiger woods, playing in the masters, first time since 2015. say i that golf is hanging its hat on a tiger comeback, what say you? >> no question. there is just nobody to replace him. think about it, reading that book by jeff benedict and arm men katayan, when tiger watched jack nicklaus win at 46 his last

masters. he hung up what jack nicklaus did through there. he was ahead of jack nicklaus. for 10 years he didn't win anything. he finished 12th, 5th, 2nd in his last three tournaments. at 43 can he go from 14 to 18? las vegas doesn't like to throw their money away, he is having a good time. he is golfing nine holes with his arch rival phil mickelson. he is calm tiger. he is more happy tiger. he is a guy evidently according to the golf experts he is hitting with the same club speed he did 10 years ago. so this could be fascinating. i'm not a huge golf guy but the whole world will watch on sunday, what about you? stuart: i'm glued. inmplied for the entire weekend.

i'm watching practice rounds. >> wow. stuart: it is greatest golf tournament in the world. intrigued that tiger playing nine holes with mickelson. they were supposed to be rivals and not get along well. this is setting the scene for a golf comeback. >> yesterday is a lot of fun for golfers out hitting it. i love your producers, you have a team 45 separate producers many work with you 24 hours a day, find that footage of tiger hitting the putt goes up the hill around if there was a magnet at the bottom of the cup. check that out. you can imagine if you does that thursday, friday, saturday, sunday. stuart: will do. tiger fan, kilmeade, your time is up. >> i love comebacks. stuart: obviously. coming up, senator feinstein says the president is absolutely wrong on daca. that he has rejected every bipartisan proposal. kellyanne conway, counsel lower to the president will respond to that at the top of the coming hour. republicans being warned of a blue wave in november.

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♪ ashley: in the last hour wall street bob doll told us a strong earnings season will help settle these markets down. take a listen. >> i think they will be quite good, particularly in technology, energy. a comparisons should be pretty easy. health care should be pretty good. there are hardly any places where earnings won't be good. we'll be watching carefully what do the revenue lines look like, how much is the company growing and importantly what are the cost pressures look like? are we having issues around labor shortages or higher wages? we'll be watching those things carefully but our expectation is, earnings are what we need to settle things down, stuart. ♪ [ phone rings ] hi, tom. how's the college visit? does it make the short list? yeah, i'm afraid so. it's okay. this is what we've been planning for.

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stuart: oklahoma republican congressman cole says that the gop should beware of a democrat wave in november. >> nobody had a good off year election since 2000 two. i think republicans would be well advised to get ready. stuart: interesting, tom cole is a republican from a very republican state. that would be oklahoma. joining us now congressman, kevin cramer, i'm tearily sorry,

kevin, i do apologize. you're running against heidi heitkamp in the dakotas for the senate seat, is that correct, sir. >> that's correct. senator heitkamp and i were elected to respective offices in 2012 on the same day. stuart: are you worried about a democrat wave in north dakota. >> well i'm not because the senator heitkamp is only statewide democrat elected elecn north dakota. we have a large majority notice house and senate. we have a long history of that in last couple decades. to my initial point, sort of gets to your point and this is that north dakota has always gone against the wave anyway. we are fiercely independent people in north dakota. the fact that i was elected to north dakota's only house seat same day senator heitkamp was elected to the senate by very same people tells you who independent north dakotans are. stuart: i get it. i would have thought that you would have a fairly easy time of

it because north dakota has done very well from president trump's growth agenda. and his deregulation of the oil and gas industry. i would have thought you would be a shoo-in? perhaps. but a lot of people thought the patriots were a shoo-in for a reason. the good thing by elections in our society we are evaluated by people we work for, in a small state of north dakota, which is the some total of voters is is 300,000. we size them up at a personal level. to your point you were right, the trump agenda is very good for north dakota. senator heitkamp voted against the trump agenda when it really mattered, and tax cuts and roll back and by the way we're not up for sanctuary cities up here. stuart: who are you running against? who are you aiming against?

is it senator heitkamp -- is it nancy pelosi or hillary clinton? >> we hope hillary clinton continues to campaign for democrats. the great thing about north dakota the politics are very local. i'm very pleased to run on my agenda. to representative cole's issue where he said something to the effect that we should expect a blue wave in the midterm because there hasn't been a good term for the party in power since 2002. i feel we're prepared for it. as republicans we can run on the agenda so good for our country. democrats have to run away from their agenda and away from their record. i get to run on mine. i kind of like my chances but still takes a lot of work. stuart: is president trump personally popular in north dakota? the way he handles the presidency, his tone, his manner, his demeanor? do north dakotans like that?

>> north dakotans are pretty plainspoken people as well but they're polite people. while some north dakotans are concerned about the tone and rhetoric he is immensely popular, him personally and his policies. president trump works to my advantage in north dakota. stuart: they really want you to win, the republicans really want you to chalk up a big senate win. kevin cramer, thank you very much for joining us this morning. we'll follow your progress. thank you, sir. >> look forward to it. thanks, stuart. stuart: yes, sir. what would nancy reagan think of the current occupants of the white house? hers president secretary, long-time friend and colleague will join us after this. ♪ ♪ with expedia you could book a flight, hotel, car and activity all in one place. ♪

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about the current occupants of the white house? >> well, you know that is an interesting question. i think she would focus on melania. stuart: right. >> and she would offer her assistance. she tells, tells the story, she told the story to me and i tell it in the book that jackie kennedy reached out to her when she got to the white house and offered to help her. so she always tried to do that as well. i think she had be on the phone to her, one thing she would tell her, take your time, whatever you decide to do, make sure it is something you really care about because that is what she did. stuart: please tell myself and our viewers the story of the little girl who needed, i believe she need ad liver, is that correct? >> yes. stuart: tell the story. >> i won't cry. stuart: i will. >> it was dr. tom starsel, the

pioneering transplant surgeon who trained under her father, trained in surgery under her father, told, called her and said could you help me and use your publicity machine down there to get me some widespread coverage of this poor child. she is not going to live two weeks without a new liver. and so nancy reagan invited the press, as she did every year to see the christmas decorations. well, the christmas decorations were back, they got short-shrift. this little girl was wheeled out, she was yellow. nancy reagan said, ladies and gentlemen of the press, we need a liver for this child and i need your help to get the word out. stuart: did she get the liver? >> yes. stuart: oh. >> and i talked to her. stuart: that is a wonderful

story. i'm afraid we're out of time. but i want to tell you, lady in red, i have not read it yet. i will read it. my kind of stuff. sheila tate, thank for being with us. >> you're welcome. stuart: more "varney" after this. omega-3 vascepa. the one that's this pure... and fda approved. look. vascepa looks different... because it is different. it's pure epa. vascepa, along with diet, is clinically proven to lower very high triglycerides by 33% in adults, without raising bad cholesterol. that's pure power. proven to work. vascepa is not right for everyone. do not take vascepa if you are allergic to icosapent ethyl or any inactive ingredient in vascepa. tell your doctor if you are allergic to fish, have liver problems... or other medical conditions and about any medications you take, especially those that may affect blood clotting.

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stuart: call it the great divide, california v. the rest of the country, california v. or trump. the division is getting worse and two new items. the administration wants to lower emission standards. california does not. we are headed towards dueling rules for the road. what's a carmaker to do, make two different models, one for california, one for the rest of the country? that won't work. imagine, you buy a truck in nevada, drive it across the state line to california and get stopped for driving a non-conforming vehicle. or carmakers could build all vehicles to meet california standards in which case california wins, and california would be calling the shots to the feds.

president trump would not be happy. here's another one. who controls federal land in california? the feds, right? ah, not so fast. california has passed a law that gives the state, california, control of federal land sales. and they put this clearly, california doesn't like trump's plan to develop federal lands. well, the feds are suing. then there is this caravan of migrants heading this way. now, i don't know how big it will be if and when it arrives at our southern border, but i'm pretty sure most of america will not be happy about a new wave of illegals. but california, oh, that is a sanctuary state. all a migrant has to do is set foot in the golden state, and he or she is truly golden because you stay. this is what happens when a large and powerful state just can't accept the results of a presidential election. california is in open ring volt. revolt. but that's not the end of the story.

large and important parts of california are in open revolting against california. several towns in orange county are opting out of the sanctuary state. san diego county, they may join in too. this is a unique situation. california v. america, parts of california v. california. what's the solution? votes. california can maintain its revolt only so long as california voters allow the revolt to continue. watch out, democrats, the republicans in california are gaining a lot of ground. the third hour of "varney & company" is about to begin. ♪ ♪ stuart: we have reports that mexico has stopped that caravan of immigrants trying to get to the united states or certainly moving through mexico. meanwhile, president trump is blaming democrats for letting daca die.

senator dianne feinstein says that's not true. here's her tweet. stuart: well, joining us now is kellyanne conway, counselor to president trump. welcome to the program, it's good to see you back. >> thank you, stuart. my pleasure. stuart: give us your response to senator fine stein. >> yeah, so respectfully, senator fine stein is in error. the president literally brought democrats and republicans to the table in the cabinet room, the whole world saw it live and unfiltered, and the president made it very clear that he was willing to have a disposition of not just the 600,000 daca recipients who had come forth, but the 1.8 million or so who would be qualified under that particular action.

it's president obama who took the action unilaterally by himself. he didn't even put it to the senate, to congress because he knew it probably would never pass. this congress had nine months in 2017 to do something, stuart. like many other issues, they failed. the president gave them another six months, still failed. and this president made a very simple request. on his way to a merit-based immigration system, to ending catch and release are, to funding our i.c.e. agents and our border security, he wants the funding for the wall, the $25 billion for the wall in exchange for daca. what the democrats offered was inadequate, and they know it. so saying that the president walked away from a bad deal, this is donald trump. he's a master negotiator, communicator and dealmaker. he's not going to accept a bad deal that completely upends what he's promised with respect to protecting our national sovereignty and keeping the poison, the drugs out of our communities and people who shouldn't be here out of our nation as well. goodness, look what's happening

with the caravan. we're working with mexican counterparts to come up with a great solution, and yet mexico has a problem on their own southern border with people illegally entering, and they're taking action there. we just can't have people always flouting our national sovereignty birdies respecting our border -- by disrespecting our border. this is simple. stuart: president trump continues to go after amazon. earlier tweeted this one, i'm going to read it for our audience: stuart: what's the end game here, kelly, with regards to amazon? >> the president's making a very simple point here which is that the postal service, as we know, was created about 200 years ago for a nation that is very different from the one we have now, the way we communicate and disseminate services and packages, obviously, for that matter. but what the presidents' point

is, is that amazon does rely upon the u.s. postal service which is a government entity, subsidized government entity to help it deliver its packages. you've got many other companies in this country that have built their own infrastructure, own private fleet services, for example, and that's very expensive. and so i think what the president is talking about is the same type of fairness that he always addresses. he ran on fairness when it comes to immigration and trade and school choice and taxation. and in this case, he just wants there to be fair play. and that really is what the president's talking about here. he's very concerned that amazon, you know, that the postal service is being used as a private delivery service as well. stuart: okay. i want to draw your attention to a report we had earlier this morning that condo and co-op sales in manhattan are way, way down. this is clearly a result of the new tax law which penalizes

high-tax, blue states. was that deliberate? >> oh, that's -- i disagree with that. i've lived in manhattan for a very long time and was an owner in man that the tan for -- manhattan for a very long time. i think it's reaction to mayor de blasio. the governor of new york is a big tax and spender. that is a state where up in albany and certainly there in manhattan and the five boroughs you've got a mayor of new york city and a state government that never met a tax they haven't liked. [laughter] it's a very liberal state which is all about taxing and spending. they won't even allow hydraulic fracturing, they won't allow energy development. stuart: no, they won't. >> look what they've done in upstate to free up energy and create jobs, and yet people are going with over the border in pennsylvania to find that kind of work. so that's a reaction to progressive liberal tax and spend policies. stuart: can i just jump in for a second before we close? i'm sure you seen it, but it's the front page of "the new york

times." that's a picture of the egg roll -- >> i did see that today. two sisters. stuart: yeah. and there's a little girl crying her eyes out in "the new york times," and i think that's because it is president trump's easter egg roll, am i right? [laughter] >> i beg to differ. i memorized their name, victoria and ella, so i'll give a shout out. i attended the egg roll with my three daughters, my son was up in new york for the opening day for the yankees, but there were thousands of kids here yesterday, and the first lady especially did a phenomenal job yet again welcoming the nation here to the white house for a very festive, nonpartisan day of fun. look, egg rolls -- not the kind in a chinese restaurant, the egg roll here -- and the easter bunny and writing those wonderful cards to our soldiers, a new feature yesterday, bowling on the lawn. all of that made for a great deal of fun. the weather be darned yesterday. stuart: yeah. [laughter] >> i think even though one was happy, one was crying, those parents have a great memory of yesterday. stuart: that's good news,

indeed. thank you very much for joining us. >> thank you, stuart. stuart: yes, ma'am. check that big board. oh, we're back in rally mode, look at that. after a big drop yesterday, we're now up 246 points, okay? that's recouping half of yesterday's loss. >> yes. stuart: let's not forget. 29 of the dow 30 on the upside. jack ablin with us now. all right, jack, i'm looking forward to the two or three weeks from now when we get the big profit reports. not just from the big technology companies, but from all the major corporations. what do you expect in those profit reports, and will it stabilize this market? >> it should, stuart. in fact, not only are profits strong, right now analysts are penciling in nearly 20% year-over-year profit growth for the s&p 500. but the interesting thing about it is that they've been raising their forecasts as we approach the quarter. that's a reversal of what's been going on for the last few years,

that as we approach the reality of reporting that analysts have been lowering their expectations as companies perhaps start to guide lower. this is the reverse. so i think that if investors focus on the fundamentals -- dividends and earnings -- we'll actually see good news for the stock market for a little while. stuart: okay. now, there's an interesting -- well, spotify begins trading today. that is private shares can now be traded publicly as a way of going public. very interesting company, music streaming service. would you buy it, jack? >> i wouldn't, stuart. i just don't know the valuation of spotify. it'll be an interesting thing to watch how this price discovery unfolds because they're not using an investment banker, they're literally doing it as almost like an auction, open,

you know, open season so to speak. and so it is going to take a little while to settle out. but perhaps, you know, this is a trend that, you know, could start to move some of this ipo business away from these bulge bracket firms on wall street that have cost these issuing firms and lot, and we'll have to see how it plays out. stuart: very interesting, jack, okay. i'll puck you up on that -- >> yeah, i've been a wall street customer for 30 years, so if they're calling me, chances are they're calling everybody else, and now it's my turn. stuart: thanks for joining us, sir, see you soon. >> yes, sir. stuart: the trump administration has been tough on opioids, calling for the death penalty for traffickers. the lieutenant governor of arkansas, tim griffin, supports the president in that, and he will join us this hour. listen to this, iowa has an employment problem. they have too many jobs and not

enough people to fill 'em. we're on that story. and the trump administration rolling back emissions standards for automakers. yes, this will be another fight in california because right now they set their own standards. we've got a jam-packed hour, and we're just getting started. ♪ be. ♪ ♪ my mom's pain from

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stuart: iowahas an employment problem. that would be too many jobs and not enough workers to fill 'em. employers say too many people are leaving the state to head to urban areas, and those that remain don't have the skills needed to do the jobs on offer. we thought you'd like to know that one. the trump administration rolling back emission standards for automakers. this sets up a fight with california which is currently allowed to set its own standards and has done so. joining us now, mark moran know, executive director of climate

depot.com and author of that book, "the politically incorrect guide to climate change." all right, mark, seems to me that california might win this one, because they have set their own standards, they're allowed to set their own standards, and maybe the rest of the country has to adopt california's standards which is a setback for president trump. what say you? >> well, what says me is this is the first administration that's directly challenging the tyranny of california, which is one of the most overregulated states coming out and setting federal auto policy for years now. and california doesn't want to give up this role. they're trying -- the feds are trying to revoke the idea that california standards become the national standard, and they want to return that back to make this reasonable. they're talking about suvs being extinct at 55 miles per gallon on a corporate average, and that's going to happen by 2025. so the trump administration is trying to stop the regulatory nuts in california from

controlling industry. stuart: so if california moves to these new and higher standards for emissions and mileage, what improvement does that offer for the climate change people? >> well, it offers a lot. first of all, the reason california's been doing this is to meet climate change targets set up by these various global warming policies. now, keep in mind even the u.n. admits that even if fully implemented by their own science there'd be no detectable impact in a hundred years. so this is all virtue signaling, out has no impact on the climate. it's a game they're playing. they've already had the agreement. the obama administration has the agreement in place that suvs are going to be, essentially, lighter, smaller and virtually nonexistent if this goes forward. trump is trying to stop it. california wants to now take them to court, and we're looking at a protracted legal battle. but it's probably one of the best arguments for secession of

california. for far too long, they've been regulating industry and making it to their whims and dictates and forcing the rest of the country to go along with them. and suv sales, by the way, are now one-third of all cars in the world, they've tripled in the last ten years. not only americans like bigger, safer cars, but the rest of the world is discovering them too. so these are bureaucrats trying to regulate their ideology on people based on climate change, ultimately. stuart: let me get this clear, mark. if california gets its standards, does the state get rid of suvs? [laughter] >> well, no, but it makes suvs harder and harderrer to manufacture and sell. we're talking about our current mileage is 38 corporate average fuel economy. it's going to jump to 55 in 2025. so what that means is suvs are going to have to shrink, get smaller, other cars are going to get smaller. there's verified studies showing smaller, lighter cars are more

dangerous, and essentially it's a way for nameless, faceless bureaucrats in california to dictate car policy. that's what they've been doing and they hope to continue doing. trump administration's standing up, fighting it. the obama administration's already agreed, california's talking about taking it further. trump wants to reverse and go the other direction, setting up a classic court battle that could be epic, it could take years, but at least we're finally having that fight. stuart: got it. mark morano, thanks for joining us. >> thank you, stuart. stuart: let's check that big board. we've got a rally here. it's modest compared to yesterday's selloff, but i'll call it a rally. we're up 210 points. better check bitcoin, it was in the $6,000 range yesterday, it's now moved up to $7,300. how about gold? in terms of volatility for the stock market, this morning we are down $13 an ounce, $1,333 per ounce for gold. yesterday was national

autism awareness day, and sesame street had a special announcement for the occasion. sesame place is now the world's first theme park to be designated as a certified autism center. that means sesame place is required to train team members to provide proper knowledge, skills treatment to interact with all the families and children with those special needs. got it. in recognition of autism awareness day, landmarks around the country turned blue. the white house, the empire state building, got it. even niagara falls shining bright last night to raise awareness. >> that's beautiful. stuart: it is beautiful, isn't it? check this out. spacex successfully launched its falcon 9 rocket sending up more than 5,000 pounds of supplies and experimental stuff to the space station. it got away okay. >> that's almost a daily occurrence. [laughter] stuart: we like to coffer that stuff, it's is so -- cover that stuff, it's so interesting. we'll be back. ♪ ♪

stuart: yeah, we've got some pictures of this, a shipwreck from world war ii raised from the bottom of the harbor in vir lank ca -- sir lank ca. it was hit by the japanese in

1942. authorities decided to move the ship to create more space in the harbor after all these years -- >> fair enough. now they do it. [laughter] stuart: all right. the most collectible modern roll lex is now available in pink. 36 sapphires, 56 diamonds, 18-carat pink-gold crystals, and the hands, oh, themselves, are made by rose gold. the price is available upon request. the last limited edition watch went for $86,000. if you have to ask the price -- >> you can't afford it! stuart: now this, hotel project illinois funded in part by chinese investors, raising concerns about a visa program. jeff flock will report from rockford. and the trump administration suing the state of california again. what's this all about? well, the judge will explain. ♪ ♪

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stuart: it's a 200-point rally. not much of a comeback after yesterday's 450-point loss, but we'll take what we can yet. we're at 23,848.

not a big bounceback today for big tech companies. they are up -- [laughter] they were way down yesterday. on your screens big tech as it's performing right now. membership el green is -- mitchell green is with us, he's back despite it all. [laughter] with lead edge capital. of those stocks on the screen, those companies -- we'll put 'em back up in a second -- the big techs, would you buy any of 'em? >> look, we own a little bit of facebook. i think facebook is really cheap. i think when people put stuff on facebook, they know what's going on there. i think all the big tech companies use data in all kinds of different ways. do i think there's probably going to be some regulations,? yes. you typically make money in tech, sell 'em to all the suckers when it's too high. yes, i'd be a buyer. stuart: at 156, you would buy facebook? >> i would, yes. stuart: let me inject my personal opinion -- >> i bet you have one. [laughter] stuart: 80, maybe 90% of facebook users are perfectly

happy with the way things run. wonderful free service, hooks everybody altogether, and hay don't care if you sell your information so you get nice ads targeted at you. am i right? >> i agree with you. 100% agree. maybe 98%, actually. stuart: really? >> by the way, what i love is the 2 percent or some small percentage decided they wanted to leave facebook. i saw some great quotes saying i'm leaving facebook, but i'm going to instagram. you do realize facebook also owns instagram, right? [laughter] stuart: that's funny, actually. you're welcome back. now, spotify, it's going to begin trading at some point. music streaming service. i don't think it's started yet, but it will fairly soon, we think. would you buy that? >> it is trump-proof. stuart: wait, wait, wait. trump-proof -- >> what does that mean? >> if you can argue facebook and amazon and google, all these things have been hit because of the risk of regulation, think about a company like spotify. it operates in over 60 countries. there are no antitrust, you

know, concerns like, you know, people say the competition. three, it's a european company. european data privacy laws are way stricter than u.s. laws. so it was built off of european privacy laws. trump-proof. i think it works. stuart: i wonder how many people in our audience know that spotify is european -- >> it's swedish. >> yeah. stuart: how many people knew that? >> i would guess very little. stuart: i said, would you buy it? >> at the reference price where it was initially listed at 132 we would be buyers. of course, other prices since we invested several years, are there prices we would sell it at? of course there are. stuart: it's indicated to open between 155-165. >> i think that's probably where it's going to open. stuart: you know, american technology really rules the world, doesn't it? even if spotify is a swedish company. >> the chinese boys are big, think of the likes of an

alibaba, and the great thing in china is the chinese love monopolies. [laughter] they like to concentrate the power in a new because it's -- few because it's easier to manage them. imagine there's no way a ten cent or alibaba could buy a snapchat or twitter. the u.s. government would never allow it in a million years. they could go buy spotify because they're a european company. they're not regulated by the united states. stuart: you know, you're an original thinker. where you been all these years? [laughter] you're all right. mitchell, thank you. >> absolutely. stuart: see you again soon. the legal war, another one between the feds and california. this new one heating up. the justice department suing california over a state law, california state law that limits transfers of federal lands. i will explain this. and so, too, will judge andrew napolitano. may i? see if i get this right. california really does not like president trump's plan to develop federal lands. >> right. stuart: so they're saying, hey, you mess around with federal lands, and we are the first

takers of those federal lands. what say you? >> well, you know, it's gone even farther than that by the imposition of unique zoning laws on closed post offices so that they cannot be sold to developers to whom or to which the federal government would like to sell them because the developers fearing lawsuit from the state of california preventing them from developing the property. bottom line is this is a slam dunk for the feds. the constitution could not be clearer. i may disagree with what the federal government wants to do with their lands. too bad. the constitution says the federal government determines what they will do with their own land. california loses on this one. stuart: so the feds, president trump goes into a legal fight against california on constitutional grounds. >> should be a very quick legal fight. it should be a motion for summary judgment made at the outset, and the feds should win. stuart: and who decides which federal court adjudicates?

>> well, the federal government can pretty much decide that by where they file the suit. stuart: okay. >> but they're stuck with the ninth circuit which is all of california, it's all the 15 western states of the united states. but i don't even see this as being a close call -- stuart: california -- >> even the very, very liberal-leaning judges in the ninth circuit who have championed federal power until california wanted to resist it should side with the federal government on this. this is such a clear case. and this is a brand new statute, it just came into existence two months ago, and it was written for the purpose of frustrating donald trump. stuart: well, why isn't there a clean-cut decision on sanctuary cities and sang sanctuary statef california? i would have thought that was a slam dunk too. >> i tell you who you can blame that on, paul ryan. the spending bill that president trump signed does not have any strings attached. so san francisco and chicago and

new york will continue to get hundreds of billions of dollars with no requirement that they comply with i.c.e.. they could have done it in a sentence, stuart. stuart: and that goes on for another six months. >> yes. and we'll see what happens then. we'll see what president schumer dictates then. there was a great op-ed -- [laughter] stuart: careful, judge. >> i mean, i almost lost my breakfast in "the wall street journal," president schumer which was boasting how he bested the president. what? did i wake up and something happened? [laughter] stuart: glad you're still smiling, judge. thank you very much, indeed, sir. >> pleasure. stuart: now this one. new hotel could revitalize northern yi, a town -- illinois, a town in that area. a visa program that opens a path to foreign investment makes it possible. jeff flock is in rockford. tell me about this special deal, because i think it applies to chinese investors. you tell me. >> reporter: it does, to all

foreign investors. and i tell you, sparks flying here in rockford, illinois, just like the varney show every day. this eb-5 visa program, if you invest up to half a million dollars in a u.s. project that creates jobs, you can get a green card and a path to citizenship. i presume, stuart, this isn't how you got your path to citizenship, but this is open to foreign investors. and i've got gary gorman with me, gorman companies. i wanted you to tell stuart how important this project was, the eb-5 visa program, to getting the investment to build this hotel, to revitalize rockford. >> yeah. there is no way that this project would have gone forward without the eb-5 program. it's $30 million out of a total of $87.5 million, and it doesn't cost the treasury a dime. that's the magic of this program. it's inexpensive capital that comes in from overseas, doesn't cost the u.s. taxpayers any money and stimulates growth in

high unemployment areas that will act as a catalyst for additional economic development. >> reporter: stuart would argue, hey, isn't this just dollars for green cards? >> what they're doing is creating jobs in economically challenged areas. the exchange for that is that they do get a green card for themselves and their family. >> reporter: and this building, stuart, was a knitting factory in rockford back in the day. it's being revitalized, and it'll be a hotel and a convention center open soon. stuart: jeff, i think you read me incorrectly. i have no problem with bringing money into this country. and if a green card is the price for a half million dollar investment, look, i can see how that could be perfectly okay. don't read me wrong, flock. >> reporter: i love putting words in your mouth. [laughter] stuart: but, you know, you'll be back despite it all. [laughter] thank you, jeff flock. we'll see you soon. thanks very much. i want to alert this story.

panera bread's web site is reportedly leaked millions of customer records, and they kept it up for eight months, education exposing names, e-mail addresses, birthdays, the last four digits on a credit card. one report says the company knew about this back in august, did not fix the problem. got it. president trump calling for the death penalty for drug traffickers. the lieutenant governor of arkansas, tim griffin, supports this call for death penalty for drug dealers. opioids. he is with us this hour. two more places taking on california's sanctuary laws; huntington beach voted to file a lawsuit against the state they're in, and it looks like sand san diego county could be next. it's a revolt, and you're watching it all here on "varney & company." stay there, please, it's fun. [laughter] ♪ ♪

♪ ♪ >> i'm lauren simonetti on the floor of the new york stock exchange, and we are talking about media stocks right now. there is a lot of interest in sky news, 21st century fox -- the parent company of fox business -- is either looking to sell sky news to disney, of course, disney is trying to buy some of fox news' assets or willing to make sky separate to insure the editorial independence of the company. all of this, obviously, to get

british antitrust regulate arers to green light the purchase. why is sky news so appealing to disney, fox as well as comcast? here's your reason. they're kind of a smaller version of what many u.s. media companies want to be. they've got the phone lines, the internet and the content all in one. >> more "varney" after this. ♪ ♪

stuart: california, millennials reporteg to buy homes in a new development just east of los angeles. they're rushing there. the development is called new haven. homes start around a quarter million. ing homeowners say the dwopt has, they've got pools, parks, fastest internet speeds in southern california. only takes six seconds to download a full movie. that is attractive. staying in california, huntington beach the latest city to challenge the state's sanctuary law. last night voted to file a lawsuit against the state on that issue, and san diego county could be next. listen to what the san diego county supervisor is saying. roll tape. >> public safety is the number one priority of government. that's the reason governments were pounded in the first place -- founded in the first place, keep people safe. and that's the number one priority in san diego county. so i'm hopeful that my board in san diego county will join

orange county in their fight against this really bad law in california. stuart: all right. dave harrington is with us, the gentleman on the right-hand side of your screen there. he is the mayor of aliso vallejo in california. ty did i get the pronunciation right? >> close enough, stuart. [laughter] stuart: is your town going to break away from and challenge the sanctuary state law? >> so what we're going to do tomorrow night is we're going to discuss joining as an amicus brief all these cities and also the county board of supervisors in their effort to combat this really bad public safety policy. we're a general law city, so we can't exactly opt out the way some of these charter cities like huntington beach last night. so we're going to do what we can do, and we're also going to discuss a resolution to adhere to the rule of law. stuart: seems to me, david, it seems to me -- look, i'm a totally outside observer here,

but we report on the news every today about this -- seems to me that there is a revolt really brewing against sanctuary state laws in california. >> so i think what you're seeing, stuart, is this is a culmination of a lot of really bad public safety policy. you know, i was a veteran of the orange county sheriff's department for almost 29 years, and i'm telling you it's simple for me. these laws make us less safe, period. we had prop 47 which decriminalized a bunch of criminal activity, prop 57's going to let 10,000, you know, convicted sex offenders out of prison and now s.b. 54 which, you know, handcuffs our law enforcement, local law enforcement from communicating with the feds. this is just a culmination. you're just now finally seeing some pushback, and that's what you're seeing. stuart: i don't get it. i thought the pushback was against sanctuary state and city laws. it sounds like you're pushing back against a whole variety of law enforcement rules and regulations and laws in the

state. >> yeah. i think the s.b. 54, the sanctuary state thing, i think those policies just pushed everybody over the edge. jeff sessions filed the lawsuit to challenge the unconstitutional parts of that law, and lossal me dose really was the -- that's really going to be your shot heard around california, because that really was the impetus for everybody else to get in. and you're seeing this wave now, you want to talk about a wave, you're seeing it now against all of this. we're also going to, stuart, we're not only going to talk about s.w. 54, we're going to talk about an initiative of keeping california safe. and this initiative which we're going to try to get on the november ballot is going to fix some of the problems with proposition 47 and proposition 57, the parts of it that make us really less safe. and so you're seeing this finally pushback, and -- stuart: what's the end game? look, i see this rolling revolt against some california authorities, but i want to know

what's the end game. i mean, you file suit here against this and file suit there against that. what's the end game here? does california have to roll back all of these special provisions in california? >> well, i think, you know, the courts are going to decide a lot of the constitutionality of these laws, and i think also the law-abiding citizens in this state, people who are concerned about their safety, you know, i live in the state of california, and i live in the united states of america. i want to be safe whenever i travel, and these laws make us less safe. the end state is to get these laws, some common sense in these laws. that's the end state, is to bring some common sense back into our public safety policy. and that's why you're seeing all this pushback. that's why i'm doing it. stuart: okay, we've got it. dave harrington, thank you very much for joining us. please come back, we want to keep in touch with the progress of what i'm calling the internal revolt in california. thanks very much, dave. >> sounds good. thanks, stuart. stuart: now, this is an issue related to opioids. there's a new study, and it

claims that legalization of medical marijuana may reduce the prescribing of opioids. researchers found that states that allow medical marijuana had a 6% lower rate of opioid prescribing than -- for pain hand those that do not allow medical pot. by the way, if states went further and legalized recreational marijuana, there was an additional drop of another 6% down for opioid prescriptions. more on opioids. arkansas lieutenant governor says it's time for congress to listen to president trump and start getting tough on opioid traffickers. he will join us after this. ♪ as a control enthusiast, i'm all-business when i travel... even when i travel...

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under the current federal criminal code, under 18usc3591b, the death penalty is authorized for large scale drug trafficking already. now, the issue there is there's some constitutional, there's a possibilitying that under supreme court precedent it may not be constitutional. so there's a constitutional question there. but this provision is already in the law, and it does not, does not require murder. but, you know, that could end up, the constitutional question could stay in the courts for a while. if we really want to do something about the opioid trafficking that's going on -- which is different than the prescription drug issue, right? stuart: yeah. >> then we've got to deal with the chinese, the chinese smugglers and the mexican cartels who are pushing fentanyl. what has happened, stuart, is that just like with meth, when

we started to raise awareness of the meth problem in the u.s. and get that under control, the mexican cartels started producing it in meth factories across the border and bringing it in. now that there's raised awareness on opioids and the prescription drug component of that, what has happened? well, the mexican cartels, the chinese smugglers have identified a market for illegal as opposed to prescribed drugs, and so they are pushing fentanyl -- which is a synthetic opioid -- 50 times, 50 times more powerful than heroin. and there's actually a bill that tom cotton, senator tom cotton, has in the senate right now that will deal with some of this. stuart: previously, just a couple of minutes ago, i read a news item about where marijuana, medical marijuana is legal prescribing of opioids goes

down. and if recreational marijuana is legal, opioid prescriptions go down even more. what do you make of that? >> well, look, for me this is not just about statistics, this is personal. my, my brother has dealt, had to deal with the issue of opioids after a back surgery gone bad, and i know firsthand or through him what he's been going through. and i can tell you that relief for pain is what a lot of these folks, at least initially before they get addicted, relief from pain is what they're seeking. so that doesn't surprise me that you have statistics like this. but let me tell ya, as we have gotten our arms around the broader prescription drug problem with some medical professionals prescribing too many and lack of awareness and

what have you, as we've got withen, started to -- gotten, started to get our arms around that, the mexican cartels and the chinese smugglers are pushing these even more dangerous synthetic killers. you know, these synthetics are so dangerous that just the dust, just the dust has sent law enforcement to the hospital. stuart: that is extraordinary. tim griffin, lieutenant governor of the great state of arkansas, thanks very much for being with us, sir. come again. i want some more time. >> thank you. i'd love to. thank you. stuart: yes, sir. extraordinary. more "or varney" after this.

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stuart: it is tuesday, that means another round of practice games, practice rounds as augusta national. tiger woods is going to be there. a lot of people pinning their hopes for golf on a tiger rebound. what is the odds is. ashley: currently being quoted

at 12 to one. the favorite is jordan spieth and tied with dustin thomas. rory mcilroy is 12 to one. stuart: tiger playing with mickelson. i'm sorry i dragged on. but masters is very important. but now it is yours. neil: is this golf? i was looking for the 18th hole with the clowns. stuart: i just hit a hole-in-one. neil: thank you, buddy. checking up. thank you for keeping us up to speed on that. i have the latest results. meantime, look at this, taking back one-fourth of the ground lost yesterday. we had come back double this earlier on. this is market weighing on the trade war thing. going after amazon thing. i know i wasn't here for the amazon thing,