maria: great panel today. see you here today. "varney and company" begins right now. early to you. stuart: you gave me an expert in second. maria: we didn't hear from you and i felt bad about that. stuart: let's not get bogged down with negatives, let's talk jobs, looking good and the president will talk it up in west virginia. first, the firing rate, the layoff rate, still a generational low. and unemployment benefits, very few employers are laying people off. good news. in contrast private-sector employers are hiring big time. 241,000 private-sector new hires last month, the job market is strong. that is what the president will tell voters in west virginia today to tweak democrat sen.

joe mention, jobs jobs jobs, that will be the president's message to back up the republican challenge. the president signed a proclamation that puts the national guard on the border. the governor's border states, texas, mexico, arizona, let's do it, california not so fast. this is the president tweaking governor brown. what is he going to do? open the border to that caravan or call out the national guard. on the corporate front facebook in the firing line, the bad guys took advantage of facebook's week internal controls to create full personal profiles that some consider starter kits for it theft. wait until you see how stocks open after the rally yesterday. you're going to like it, you'll like the show, jampacked with good stuff. marnie and company is about to begin.

♪ stuart: i promised to show you where it would open, on the big side, the dow is up 230 points, up 90 again today. whipsaw session yesterday. there is backwards and forwards movements, tech stocks, all on the upside, there's a change. premarket now, amazon up 24. alphabet up $13, microsoft $.52 but all of them are up. the coburg, on the data scandal. >> doesn't mean it will get better, it will get better.

and a year into a massive 3-year push. my hope is by this meal of this year we will have turned the corner on a lot of issues and people see things getting a lot better. stuart: the response is facebook's free market is up nicely. brian brent berg is here, business professor at the kings college new york city, seems to me there is some regulation coming down the pike, regulation of data collectors and data miners. is that regulation going to impinge on the profitability of this entire industry? >> absolutely because this is how companies make money, facebook wants to know you will microsoft, make a minivan, it will use that data to sell to companies that advertise to

you. the regulation will make it more difficult for facebook to do that. will have to ask your permission, can we share your data, you might say yes, you might say no but that is a hurdle for facebook that will diminish their advertising revenue. stuart: the idea that the bad guys got hold of this hacked information from the equifaxs of this world, stuck it onto the darknet or whatever it is and people bought that information, ran it through the facebook search box and came up with a match between anonymous information in your picture. and that is a complete personal profile because of facebook's lacks internal control. >> we can talk all day about this but the fact is if people put their information on the web and handed over and i don't see a slowdown that we are going to do that people will find a way around the

safeguard. unless we are self-governing this will not go away. facebook cannot solve this problem, google cannot solve this problem, people can solve this problem if they are careful about what they share and the sad truth is we are not. stuart: of regulation allowed us to lay down the law on what we will allow facebook to have, that turned the tables. >> it is not going to be facebook but other nefarious actors who want the data, we will talk about data breaches today and the next several months. if you put your data out there somebody is going to end up with it and you have to get used to that. ashley: even if you don't can you have it with equifax, it is the way it is, very difficult to stop. stuart: bring in the lawyers. donald trump wants congress to make cuts in the $1.3 trillion spending bill, the president can do that, he can request a hold on specific funding even though it has been signed into law. he can hold things up for 45 days, ask for specific cuts.

come on income republican from virginia, member of the budget committee, you must be ecstatic you can go back to that spending bill and make some serious changes. you are a happy guy. >> i'm a happy guy and the president was not happy having to sign the bill but even this process will require 51 votes in the senate so we have seen them fail on obamacare and the last budget. the house passed the budget, we kept everything else flat and when it goes to the senate they plus it up by $400 billion because they need 9 democrat so this time we are not placed with that high hartl -- hurdle. but they are willing to go down this road, last time i was on your so we made big news for the rest of the day. the senate put in last year's budget a few months ago they

will not do a budget and that means we don't get reconciliation. it is hard to do any policy. that is how we got tax cuts through. you had larry kudlow on. another round of tax cuts to make the individual side permanent you need reconciliation to put it through with republican votes. you'll make those tax cuts permanent even though that is what they were waiting on. stuart: i thought we were really going to cut that budget up, that spending is going to go. i wish i could hear that from you but i'm not hearing that from you. the president - >> in my dreams. stuart: sending troops to gaza southern border. he is tweaking governor brown who doesn't want to see the national guard on the border but has no choice.

>> california, other chaos and lawlessness in california intentionally, doing this, illegals can vote in california, fact backup the story. he doesn't want to see guards there and all of this is a function of globalism, tariff issues in the news, chaos at the southern border. children of god, that is not the issue, none of this is decided by the american people and democrats are silent on immigration, they know the middle class from bernie voters to trump voters are set up with this thing. if they have two kids in public school, that is $26,000 a year. they make $20,000 a year they are paying no tax whatsoever, no income tax and who is on the hook for $26,000 for two kids in school, the american

taxpayer, governor brown in california they want more illegals voting in california and the rest of the american people did not vote on that and this is a function of the executive. and the national security, border security and homeland security. i hope the president continues to take strong lead on this, the american people are behind him on that issue. stuart: i have got to run. we will see you later. jpmorgan chief jamie dimon has written about helping workers. how does he want to help them? liz: expand the earned income tax credit the irs says is one of the biggest tax scams and fraudulently abused programs out there, pays learners money instead of those low earners

paying income tax. jamie diamond is saying they should supplement low earners when the issue should be get better paying jobs for those low earners instead of having the government supplementing that income. the way he is saying to do it is take the earned income tax credit and reduce payroll tax credit, that is a lot of bureaucracy. stuart: the man once to expand the program, stop smiling. takes money from people who pay tax and gives it to people who work but pay no tax. do you think maybe they would say thank you on occasion or just give them even more? >> i can bring a big thank you card if you want. the choice is between welfare that you get for not working and welfare you get because you have a job and you are working in between the two which would you rather have? i would rather pay people a subsidy for working then pay

them not to work. liz: this is one of the most fraudulent programs out there. stuart: one in 5 claims are fraudulent, the most -- 20% is fraudulent. the third-largest welfare program in america, the medicaid food stamps and earned income tax credit. >> i'm not happy about the fraudster but i would rather if we are going to have a welfare system in this country i would rather people be paid to work than not to work. stuart: you made your point. i will tell you how the market opens this morning and the big rally yesterday, another 90 points when we start the day. the masters tees off today, tiger tees off later this morning. first-time party for the green jacket since 2015, huge helps on this guy's come back, legend greg norman will be on the show

in a little while. longtime varney viewers may remember this one, a bionic stew that helps paralyzed people walk, they demoed it here a couple years ago, a paralyzed man got up, walked around the studio. they have an updated version of the suit, it is later, easier-to-use. we will have one on the set and show you how it works with the white house says the mission in syria is coming to a end, isis on the run, type to bring our troops home. deck keen, general, with us. i suspect he is not happy about this.

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stuart: new tweet from donald trump about amazon, fake news washington post amazon chief lobbyist has another of many phony headlines. trump defined as china and trade penalties, wrong. should read trump defined as you as ads trade penalties, will end barriers and massive

ip theft. typically bad reporting. of that is not coming out with guns blazing how about this, the stock still up 21 points 1432, more on this, there will be more on this. military mission in syria as the president talking about it, roll tape. >> as far as syria is concerned our primary mission in terms of that was getting rid of basis. we have almost completed that task and we will be making a decision quickly and coordination with others in the area. saudi arabia is very interested in the decision. you want us to say maybe you are going to have to pay. stuart: donald trump. gen. jack keane is with us,

senior strategic analyst. you don't want america to pull out quickly from its military mission in syria. >> no i don't. there is nothing easy about syria. it is easy to be critical of people making decisions here but the reality is none of our military commanders want us to pull out prematurely. and other allies want us to leave. why is that? it is not sufficient just to win the conflict in the region. you got to win the peace that follows it and stop isys from reemerging. when obama pulled out after george bush won the war, the so-called surge, pres. obama came in and pulled away and al qaeda reemerged and became isys. 30,000 strong. all the barbarism that we saw. we have 2000 troops there and that is not a big investment. we have a few more thousand interactive a few more thousand in afghanistan. they are our forward defense

against radical islam and isys. like what we are trying to do on our border to protect the american people. this presence is directing the american people. stuart: do you think we will actually pull out, if the saudis pony up some money we stand your commanders, the commanders of our armed forces, might not actually happen. >> it is a leveraged guy out of respect for him. is promised $400 billion and we don't have a time. the president froze $200 million for stability and recovery to get schools open again, get water running, get electricity going. he is going to get the $4 billion and other allies have got to help. if we run out of there it is likely the kurds that thought with her so valiantly will be attacked by turkey and the last

thing is the troubles us, we lose all leverage against durrant and hezbollah in syria and they are conducting a military buildup against israel. that has got the israelis concerned about premature us withdrawal. stuart: reading between the lines, when push comes to shove we don't leave, we take the money from the saudi's and stay. that is where we are going. gen. jack keane, always a pleasure. check those futures. where do we open today? higher? not a huge rally, 90 points higher. big interview with donald trump's new economic guy, larry kudlow, we might have moved the market yesterday. we are going to replay some of that interview in a moment. let's see what we actually do.

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visit your local xfinity store today. >> no trade war here. the early stages of a process that will include tariffs, comments on the terms and ultimate decisions, back channel stocks going on.

i understand the stock market anxiety but on the other hand don't overreact. stuart: larry kudlow on the program downplaying threat of a trade war. we may have moved the markets which was down sharply when larry started and started to move back up by the time it finished. larry kudlow was on air this morning and here's what he had to say about growth. >> i think it is possible to be in the 3% to 4% growth zone. stuart: 3% or 4% growth. brent berg is still with us. will beget 4% growth this year? >> we can probably get to 4 but it will be more in the 3 range. a lot of big stuff facing us if we can get through the trade stuff quickly, the tariff stuff quickly we have a chance to go higher. there is a lot of underlying momentum but things could get in the way.

larry doesn't want those things to get in the way. stuart: before we get carried away, 3% or 4% shall we be clear? this calendar year, 2018, the rate of growth in this economy will be way above what it was in 2015-16 before the election of donald trump. >> it should be at has to be. unless we get something catastrophic with tariffs that is a possibility. larry is talking about growth, not continued barriers and we could get above 3% and that will get jobs and wages. ashley: tax form is a huge injection for these companies. if we get the trade stuff out of the way we are off to the races. stuart: we will open 90 points on this thursday morning, 90 from the dow, 50 points for the

nasdaq, back with "the opening bell" after this.

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we had extraordinary trading sessions. and 700 trading points to the down industrials. where will we end up, into second i will tell you exactly where we open, we are off and running and up we go. 58 points, 95, 103, 105, we will take a, triple digit gain, the dow is a 0.4%, plenty of green. the s&p 500 is up 0.54%. a stronger gain and a broader market indicator, the s and p, the nasdaq over the technology stocks much stronger gain up 0.5%, 53 point gain, nasdaq back above 7000. we start with facebook, sharply

higher this morning despite what appears to be a worsening of its scandal, up 3.8%. tesla same story, up again. just yesterday was in the 250 range. now it is 290. who will help me figure out what is going on? ashley webster is your, liz mcdonald is here, brian brent berg and scott martin. the economy is looking very strong. donald trump will count the economy in west virginia today. scott martin, a strong economy, is that more important for the stock market then trade or scandal? >> what we learned in the last few weeks and months, there are times the market wakes up, the sweets that it sees, this is gospel or truth and i have been

watching since i have seen them on the show, this stuff needs to be moved through quickly. you get a good job number, it leads into a gdp report, that is economic fundamentals as far as i am concerned. ashley: let's not forget earnings. the projection 17% growth would be terrific. that would go a long way to the market, focusing on the fundamentals. stuart: strong profits in the next few weeks. ashley: the data in the midwest, more job openings. and labor shortage and construction and manufacturing jobs.

stuart: dow industrials at 24-3. facebook says cambridge had data on 87 million people rather than 50 million we thought, scott martin, negative stuff on facebook, going real strong, it is up $5. >> it got over done. the news got ahead of the stock and stock got ahead of the news, however you want to phrase that. facebook is going to be fine. and changes are made, mark zuckerberg getting in front of this, i know the apology wasn't great but he continues to talk here and there. he is against tim cook but this has been my point.

zuckerberg fan or fanatic about what he did, about what he stood by what facebook is and what they have done and how they are going to improve, he is always taken these lessons and made facebook better, this is no different. ashley: scott is right, the comments we had has soothes fears among investors. if he failed miserably and looks out of his depth, that will hurt. stuart: dow industrials up 163 points. let's look at tesla, another stock that has been in the news with a lot of negatives but that stock is up again this morning. it is 291. you want to explain that? >> this is a simple facebook situation where some of the

news got over done. the problems with the manufacturing and this terrible, mistimed tweet from elon musk about bankruptcy on april fools' day when rumors were circling which was now well-timed or well thought but the reality is tesla should be okay because they have the golden goose everybody wants which is demand. these manufacturing and production issues, technologies a concern with the accident on the 101 in san francisco. maria: tesla will not have to come back to the capital markets and raise capital embargo money this year. stuart: stock is up. check the big bordello the high of the day, we're up 172, 24,300, 24,400 is where we are.

bit coin doesn't leave the market. it is below 7 grand this morning, $670 per coin. the gml company, genetically modified organisms, tentative is the gml, and general motors. goodbye to their subcompact car. smallest cars they make, going away from them. this is all about cheap gas. >> i don't want to sell cars nobody is buying. big cars are more fuel-efficient, a bigger vehicle and get the benefit of the cheap cost of gas. there is very little reason unless you like being in a tight space, environmentally or economically to buy one of

these cars. >> by 2020, 90% of its inventory will be suvs, trucks or crossovers, 90%. it is about better fuel efficiency with gas and bigger cars. apple is working on touchless gesture control for future iphones. in the future my iphone, put the camera on me please. in the future we are told you better do that and you get a different page, or that, the volume goes up. liz: or that and email is shut off to your phone. stuart: is this a big deal? ashley: you can do it but do you need it.

stuart: i am a neanderthal. ashley: a lot 8. >> this will make it easier for you to give your data to facebook and google which is why the stock is back. you can have it all. stuart: google employees protesting company involvement in a pentagon project, defense project, they don't care for the business of war or drone technology. liz: they are saying they will damage google's brand. at a time the eu is coming down hard they need all the contracts they get. >> this is supposed to help you target bad guys better and limit damage to civilians. google would be interested in being part of that?

ashley: it is so good there are people who will work with the pentagon to keep this country safe. >> evil to defend yourself against maniacs, don't get me started. the latest data breachs, delta and sears. this is the new normal, don't tell how many people have their information breached. this is another one. the dow is up 172 points. it is almost 940. i will give you the last word. what do you have to say? >> this is a way to open the names you are holding off on. facebook, apple, amazon, all

names we told you, this is no different. stuart: equal time? >> good numbers, watch the wages near 3%, this could get interesting in the market. stuart: the dow is up 140 points. hillary clinton has blamed her election loss on everything from russia to sexism. now she is taking shots at fox news, you are going to hear it after this. my mom's pain from moderate to severe rheumatoid arthritis was intense. i wondered if she could do the stuff she does for us which is kinda, a lot.

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stuart: we are off the high of the day, we're up 148 points higher for the dow industrials. a couple days ago spotify went

public. what is -- look at that, doing well. >> it is just under 152. the opening price tuesday of 16590, it is down considerably from that price. the unusual direct listing went off without a hitch but there are questions about the valuation of this, buyers on the sideline, everybody had their opportunity to sell on day one is who is going to sell their share on the market now and what is the valuation of this company and looking what is going on in the big tech companies and waiting it out a little bit. a good day for spotify. stuart: hillary clinton coming up with excuses for you losing the 2016 election.

roll tape. >> fox news is always trying to impeach me. someone needs to tell them. >> did you catch that? fox news is always trying to impeach me. in new york, larry o'connor. you would like to keep hillary around. >> please stay hillary, we need you wherever you are. stuart: why does she keep doing this? >> she is a clinton and they have a big ego and they want money. she's not doing the speeches for free. it has always been about hillary. if you talk to democrats in washington dc when the camera is not on they hate these people because they are sucking up all the oxygen. who needs the democratic party nationally? there is no leader. stuart: sen. schumer, nancy

pelosi. >> they are not doing these things, getting this kind of publicity. stuart: do you think hillary wants to run for public office? >> part of her believes this was stolen from her. of democrats were through to their ideals, trump stall this. give her the nomination. stuart: you are a republican and wants to run against hillary. >> the market surged. i want to move the needle on something. stuart: c if you can move the needle. the president ordering the national guard to the border,

and and and the century state policy was enacted. and donald trump does best with any can identify an enemy and go after. this is where he searches, to show his muscle. and jerry brown and his sanctuary state policies. they are more republican and conservative than the rest of the state. they are close to the border. this is a bigger political problem for jerry brown than people think. california is not a monolith the. stuart: california looks like they want to secede. they oppose donald trump on everything. at the end of the day who wins?

>> when it comes to immigration policy the federal government will win. they have primacy over that and jerry brown who is not running for reelection, the governor's race going on right now, he is done, i think he will allow the national guard in, he will acquiesce because he recognize he has to ultimately. stuart: if the caravan arrived at the california border and the governor says come in, that will be a huge political problem. >> weiss and every reporter and every journalist asking every democrat right now what would you do about the caravan? how would you stop them? make them stand by the rhetoric. stuart: never does that, on the spot when they should be -- >> fox news doesn't, that is why hillary clinton lost. stuart: larry o'connor, see you

again soon. check the dow 30, all 30 dow stocks, most of them in the green. we only have eight in the red and overall the dow industrials up 135 points. next case, a bionic suit helps paralyzed people walk again, they have a brand-new version of it, lighter, smaller, easier to use. we hope this thing can banish the wheelchair. we are on it after this.

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>> i leave. stuart: yes you do. you can turn. you turn okay. stuart: that was a disabled man walking with the help of an exoskeleton suit developed by re-walk robotics. that was four years ago on this program. now they are back, a new product for stroke survivors who can no longer walk. joining us is ceo larry

chinsinski. you are doing find work. this new suit, lighter, easier to work. did you develop it specifically for stroke victims? >> this is designed specifically for stroke but also can help people with ms and parkinson's. it is one seventh of the weight and cost of the types of product made from the paralyzed community so there are a lot of economic and physical benefits. stuart: not a huge suit, and appliance to a specific part of the body. >> we stripped away a lot of things that held up the human body and focused just on what is needed. if you need to move the hip joint it can do that in a miniaturized way and is reliant on a combination of sensors that tell it how to move and unique sensors that are's soft. stuart: kathleen o'donnell is a project manager, she is in our balcony. we have one of these skeletal,

exoskeleton all suits with us. welcome to the show, good to see you. can you move it? i don't know if we can pick up the movement but you show us. >> we stripped away the natural gate. they run across the ankle joint. and the ankle is free to move. >> don't think the audience can see that. the person injured disabled? >> it picks up on the way they are walking and automatically adjusts? stuart: sensors on the foot, muscle contractions. >> it synchronizes based on how

long they are steps are, if the physical therapist asks them to change their gate they can respond and they respond to their change in walking. stuart: just by thinking it and getting their muscles to move they are helped in muscle movement and leg movement. >> it will physically assist the foot to lift up for ground clearance and the heel to push them forward during walking. stuart: you have full fda clearance to market suits like that? >> the big news, we finished it and we are commercial now and started a major clinical trial which will be used for the basis for so we see fda clearance coming in 2019, we are on the way with a commercial product. stuart: and that paralyzed man literally walking in the studio. you sell a lot of those suits, was a wild success?

>> it is growing gradually. 500 people use them worldwide. the main challenge is getting insurers to cover it. we had great success in germany and italy and somewhat with the va and their expectation will continue to work with the us to get insurers to cover here. stuart: you are making progress. larry, kathleen, thanks for the demonstration and thanks for being with us. you are doing great work. what is coming up? i will tell you. donald trump is heading to west virginia touting tax cuts and job growth and now the president wants to make cuts to the massive spending bill even though he signed it. mark short, white house legislative affairs guy with us next, top of the hour, here we go.

. . .

stuart: the bad guys took advantage of facebook to create personal profiles of ordinary people. those profiles are starter kits

for identity theft. in other words, facebook messed up much worse than we first thought. now here is what has been happening. we all heard about the major league hacks, equifax. criminals stole your information and they put it up for sale on this thing, the dark web. another bun. of bad guys bought that information and fed it into facebook's search box. using that tool, facebook's tool, they were able to match the anonymous info with full names, addresses anding else that you put on facebook, including your pictures. that amounts to a very full and complex profile of you, sometimes to be used for malicious purposes like identity theft. facebook there for has been instrumental in letting bad guys exploit your information. their internal controls were lax. they failed to get a grip on

their own system. it has been going on for years. now what? it looks some kind of restriction that facebook can do with your information. there has to be a new rule. surely you will be given more over what facebook can do with your stuff. this is very big deal. this will shake up the entire data mining industry, the info collectors and the info miners which brings us to mark zuckerberg the facebook founder. he faces politicians next wednesday. they will be grandstanding, showing voters they care. he will have to show contrition and will have to take responsibility but he will have to defend the business model he created which is a free service that links the world in return for the use of your information. it will be one of those moments of great political theater deciding the future of a gigantic global industry. of course we'll cover it. the second hour of "varney & company" is about to begin. ♪

it is thursday morning 10:00 eastern. we've got the latest mortgage rates. ashley: every day we say back in the day we used to pay 16%. today it is down a little, down for the second week in a row at 4.40 on freddie mac fixed. mortgages are up 5% even though lack of homes are for sale, prices are going up, but mortgage applications are going up but over time 4.40 is a good rate on 30-year fixed, let's be honest. as the 10-year treasury yields come down. stuart: do people still get 30% fixed loan rates? they certainly should. liz: you can prepay it. stuart: that is true. 4.4%.

ashley: yes i remember -- stuart: president trump heads to west virginia today. he will focus on taxes and jobs. white house legislative affairs director marc short is with us now. welcome to the program. always good to see you, stuart. >> thanks for having me back. stuart: the truth of it is the president is going after senator manchin a democrat senator for trump country up for re-election this november, and he will stick it to him on jobs and the economy, isn't he. >> stuart we're excited about the results of the tax plan. we think it benefited to millions of americans. five million americans have received a bonus or increase. many companies in west virginia, worldwide bank, walmart employs thousands of employ west virginia. we're disappointed we couldn't earn one vote in the house or senate to a tax plan that helped lower unemployment to 17-year low. provided enormous benefits and

pay raises. disappointed not one democrat came across the aisle to support that plan. stuart: president is going into trump country, west virginia, stick it to the senator manchin who is up for re-election. i knew you would agree with me. the president wants to make cuts in spending bill he signed. legally he can do that, at least hold up funding measures for 45 days. what are you looking to cut? >> stuart, we'll have more on that in the coming days and weeks. as you say though, the president has been granted recision authority. other presidents used that as well. when you have a giant $1.3 trillion omnibus spending bill, in many cases you put it in the bill because the president is looking to make sure we rebuild the military, make sure we do the things he promised provide security for funding and 10% increase in i.c.e. $1.6 billion for the wall. there is a lot of other spending foes in that, because members

know so many positive things they will sign it. we need to get back with the normal appropriations process with individual bills as opposed to one giant omnibus. stuart: if he singles things out in the spending bill, says i don't want this, it goes to a 51 vote majority vote in the senate, doesn't it? >> that is exactly right. stuart: if you can hold the gop, if you can hold the gop senators in line, all of them, you can in fact make cuts to the spending bill? >> that is exactly right, stuart. i think in many cases members like the president who signed the bill say there is more things that have positive in the bill and negative. if you pull out individual items a lot of members wouldn't like individual items either. you will see us coming forward with plan for funding we don't think is necessary or members individually wouldn't support. stuart: i want to talk to you about amazon, president trump because president trump tweeted again about amazon first thing this morning. here it is. i will read this, marc, for the benefit of our viewers and for

you. i know you seen it. the fake news "washington post," amazon's chief lobbiest another of many phony headlines. trump defiant as china adds trade penalties. wrong, should read. trump defiant as u.s. adds trade penalties. will end barriers and massive ip theft. typically bad reporting. so, mark short, we know where the president stands. i suspect he is going after jeff bezos, owner of "the washington post," founder of amazon, and it is personal. your response to that? >> i don't think it needs to be personal. reality the president is pointing out for many, many years other administrations point out that china is stealing intellectual property but unwilling to take action. this president is looking to make sure we protect the intellectual property of the united states. i think "the washington post" has a agenda, they have been biased pursuing that agenda for quite some time. they making a obvious case they

will not get a fair deal from "the washington post" for coverage. stuart: that is a nice deflects shun, mark. president trump tweeting about democrats heading up nominations. 39% of my nomination including diplomats in foreign lands have not been confirmed due to democrat obstruction and delay. at this rate it would take 7 years for great people to start working. never happened before. disgraceful. there is a limit to what the president can do about this, right? >> we need help from the senate. here is the reality, stuart, in the last four presidents from george h.w. bush, to bill clinton, to george w. bush and barack obama in entire first terms can you guess number of filibusters they had? stuart: tell me. >> 32, 32 nominees in 16 years combined. in the first is 5 months, democrats filibustered 79 times

our nominees. more than twice as many as the last four presidents con bind in the first term. it is historic obstruction. the president said would not get nominees by time he completed two terps in office. they need to change rules and limit amount of debate time or action to hold members here on weekends. keep them here, if democrats plan to string this out, make members work throughout weekends until they they relent. stuart: has the president decided to put mitch mcconnell to end the filibuster? >> stuart we've been having conversations with leader mcconnell. republicans are frustrated with amount of obstruction. we're optimistic changes will be coming in the forthcoming days. stuart: marc short, thanks for being here. >> thanks for having me. stuart: move on to facebook, ceo mark zuckerberg he is going to testify next week. scott shellady, with us,

managing director of tjm investments. scott, regulations are coming and i suspect it will affect all data collectors and data minuters? what do you think about this? i suspect this will restrict profitability of globally very powerful companies. what say you? >> i would say that is the case at a minimum, stuart. and number two i think the emperor we're realizing he is not wearing any clothes. i need to stress this. to buy a car you need a credit score, to buy a house you need a credit score, this is voluntary information. we're projecting ourselves as victim here. we don't have to be victims. we can take control. we don't have to have confess take control. we can take our information off of facebook or move on to another social platform which might happen where we don't have to worry about these types of things. but at the end of the day whatever you don't put out there they can't have. stuart, people have been trying

to manipulate me since i had a wallet, proctor & gamble putting something on the right shelf in the grocery store or somebody trying it sell me something in the department store. marketing engineers out there been trying to manipulate us all along. i understand that will be case for social media. i get it. that is necessary evil, but at the end of the day i don't have to be a victim here. i really can't control my credit score unless i'm doing something stupid with my money. stuart: there you go. real fast, scott, earnings season coming up couple weeks time are we, are investors waiting for that to confirm where the market is going? we have a two-week pause before we find out the profitability? >> yes, i think so. once, the thing that is really interesting here, stuart, is this. as the valuations have come down over the last four or five weeks as we had the wobbly market. but earnings estimates are not coming down. stilts are still there. valuations are coming down because people are nervous. waiting to see if we hit the numbers f we do that will be good for the market.

stuart: i think you're right. that is why the market is up nicely today. scott, see you soon. >> all right, soon. stuart: during a family contest at the masters, jack nicklaus's grandson, gary, he was caddying for his granddad, he hit a hole-in-one. wait for it. see the thing go down. you know it will go down. yeah. he is 15 years old. 15, that young lad. it was his first career ace. well-done, young man. later this hour, legendary golfer, greg norman, he is at augusta. he is watching the action. we'll talk with him later this hour. tesla, the stock fighting back today, because tesla is ramping up production, at least trying to. however, one hedge fund manager still predicting tesla's collapse. he is using that word. we have him on the show shortly. nigel farage is with us slamming london's mayor sadiq

khan, he should focus on london's murder rate, surpassing new york, rather than slamming america's president. nigel is with us. big hour. you're watching the second hour of "varney & company." ♪ [ 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. knowing what's important to you is why 7 million investors work with edward jones. stay at la quinta. where we're changing with stylish make-overs. then at your next meeting, set your seat height to its maximum level. bravo, tall meeting man. start winning today. book now at lq.com

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the kohler walk-in bath comes with fully adjustable hydrotherapy jets and our exclusive bubblemassage. everything is installed in as little as a day by a kohler-certified installer. and it's made by kohler- america's leading plumbing brand. we need this bath. yes. yes you do. a kohler walk-in bath provides independence with peace of mind. call to save $500 off bath walls with your walk-in bath, or visit kohlerwalkinbath.com for more info. stuart: we're up 221 points now, 24,000, 482. -- 24,482. where are big tech. amazon, apple, microsoft all up. amazon up 24 bucks despite the latest anti-amazon tweet from president trump. caterpillar has been dragging the dow down because of trade tensions.

they are major exporters. those trade tensions may be off a little bit this morning. boeing and caterpillar up very nicely. where is the price of gold? it is at 1328. that is down 11 bucks. more to the point, where is bitcoin? it is below $7,000 a coin, 6987 to be precise. tesla's chief, elon musk is now overseeing production because of those recent production problems they had with the model 3. john thompson is with us. violet capital management. john, you are one of those saying tesla is going to collapse. make your case. >> well, stuart, you know, tesla came out with the electric car five, six years ago and they have had the market to themselves. they have built a beautiful car that is selling fairly well and they have been losing two billion dollars a year selling cars for $100,000. their story is that they're going to sell a car for

45,000-dollars and make money on it. they're losing $20,000 per car on the 100,000-dollar but somehow make money on the $45,000 car. give the fact tax subsidies, the 7500 per car subsidy will go away over the next 12 months as they hit their 200,000 car limit. so i don't see, the company is saying we're going to make money miraculously on this model 3 but my sense is is that, i think that is actually hype and that the reality is they will lose more money on this car. stuart: why is the stock up so much? just the other day it was around 250, 258 i remember seeing. now it is at 295. i guess the market doesn't agree with you. >> well, the company came out and said they're going to make money in the second half of the year because they will sell a lot more of this model 3 and you

know if you look at any other car company, you know, general motors makes far more money on cadillacs than they do on chevrolets. since tesla has been selling cadillacs losing money at it, they will come out with chevrolet and somehow make money i, i find that statement in their most recent press release to be troubling. stuart: can you bring me up to speed on their battery factory? we were told it was revolutionary, brand new kind of battery. will really open up electric cars. give me an update. >> well the reality is that they built a building and leased space to panasonic who is putting their equipment in there and they're buying batteries from panasonic. volkswagen is buying $25 billion of batteries from lg and samsung in the free market. we think, i think it's a much better way to do it is not build your own factory. is to play all the different

battery manufacturers off each other. you don't have to spend the capital. you're not committed to any technology that may become obsolete if any better technology comes out. i think it was mistake. stuart: collapsed is another word for bankrupt? you think tesla will declare bankruptcy? >> i said in a note to my clients in the next three to six months i think the stock is going to crash and that you know, because of that they will be on the verge of bankruptcy because they need the capital markets to survive. they have to raise money. >> what was the response to that? >> they can not survive -- pardon? stuart: what you put out in your note was widely read. as you say, it was heavily critical of tesla going towards bankruptcy. what was the response to that? >> well, you know the company, you know, he sort of joked i'm nuts or something but i think if

you looks at moody's downgraded their credit to triple c, which having run bonds for 16 years that is a horrible credit rating. it is almost on impending insolvency. you know, so it is not, it is not just me that is saying this. it is sort of a, even goldman sachs and jpmorgan and merrill lynch are all saying the stock is worth far less than where it is trading. stuart: okay. >> and you know. stuart: i get the message. you're not necessarily out on a limb be but you are sticking to your guns. john thompson, thanks for joining us, sir. we'll see how this plays out obviously. >> thank you. stuart: we said saudi arabia is undergoing massive change. yes it is. got an example for you, the crown prince is courting hollywood, yeah, making major deals. who would have thought. ♪

stuart: until very recently there was no cinema in saudi arabia but now saudi arabia is embracing hollywood. major announcement while the crown prince visits los angeles. what has he got? ashley: saudi arabia banned movies 35 years ago under pressure from the religious clerics. now the crown prince wants to change all that as we know. he has done a deal to bring cirque du soleil to saudi arabia, perhaps more interestingly, amc theaters signed a deal to open 100 movie

theaters in saudi arabia by 2010, in the next 12 years. that is a big deal because movies there have been banned for so long. the prince is on a extended trip, the crown prince, to the united states. he is meeting with hollywood bigwigs. and he is trying to diversify the economy off of oil. he is trying to modernize the society. and he is doing this and taking a leave out of america's book which is, we never thought we would see the day and to top it all off he is reportedly scheduled to meet oprah. my how times have changed. stuart: welcome to america. ashley: amazing. stuart: now there is a story here. president trump met quietly with the head, ceo of a big tech company which is competing with amazon for a pentagon contract. give me the full story. liz: safara katz, brought to a dinner at white house. she is the co-ceo of oracle. she is in a bidding war to get the multibillion-dollar contract

to run the cloud, the big server in the sky. 10-year contract. peter thiel brings her to dinner with donald trump. salve from katz says, you know this bidding process is skewed towards amazon. we know president trump doesn't like jeff bezos and washington post. jeff brace soes runs amazon. amazon needs cloud because that is where it gets money. we don't know who will win the contract but the white house is saying no, the president is not interfering, that would be against the law. listen, he has gotten involved with lockheed martin, saying f-35 costs are out of control for that fighter jet. with bowing saying air force one is too expensive. he is saying it is illegal for the president to get involved in contracts like this -- stuart: but all kinds of ways he can tip the scales. can we say that? yes we can say it. president trump going after amazon, yes he is. larry kudlow told us mr. trump wants to create a level playing field between online and bricks and mortar retailers but is the

president going after amazon because of that man on the right, jeff bezos? we're on it.

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♪ stuart: yeah, liz. liz: i love it. stuart: try to see it my way. dissent in the ranks. we're not at high of the day but we're still up there, nearly 200 points up for the dow, 24,400. big tech names, last time we checked they're still all up except for microsoft which i have a sliver of, all the rest on the upside. spotify went public a couple days ago. a lot of companies putting out a buy on it. it is up 3.3% as of now. but it is not near the price it

reached on the opening day. president trump, yep he is going after amazon all right. hear what harry kudlow had to say about this. roll tape. >> i don't want to judge amazon. i don't know the beginning, i don't know the end. i'm not an analyst. his principle issue is make sure online retailers are paying the same taxes at same tax rates as the state and local governments as land-based retailers. i think that is very reasonable point of view. stuart: is that what it is all about, the spat between president and amazon is all about a level playing field in terms of taxation? greg valliere with us, horizon investments chief global strategist. i would be inclined to say it is more personal than that. greg. >> i think you're right about that as someone reads "washington post" every day, "the washington post" is scathing toward trump, they mock

him regularly. he has a rival with jeff bezos. that is the center of this fight. stuart: is the best tactic by the president go after amazon, go after jeff bezos or leave it alone, walk away? >> would say the latter. the problem stuart is this. the economic fundamentals are great. we'll get a good unemployment number tomorrow, corporate earnings are good. there is one thing the market has to worry about the president himself is a headline risk. who knows what he will say tomorrow about amazon or drug companies. he does have a habit of being a headline risk which i don't think is healthy irk but, okay, but look, you know who he is. we know what we've got. >> right. stuart: we know who we elected. you know what to expect. it is not going to change, is it? >> right. so here is the key, stuart. you have to say what policies could actually get enacted that would affect amazon? frankly i don't see it. i don't think there will be an antitrust hit. i don't think there will be huge increase fort post office which is making money off of amazon. so it is just the bluster, it is

headline risk. maybe it is good for an hour or a day but i think investors should fade the rhetoric and look at the policies. stuart: we've been looking at it for weeks, greg. we don't see this thing fade. >> right. stuart: you mentioned the economy. i think it is very strong. >> yeah. stuart: i don't want to put a number on it but good jobs reports probably a good one tomorrow, the economy is growing. 3%, 3% plus. that is the backdrop to the stock market, isn't it? >> absolutely. and that means good earnings, good real disposable income. it visiterrous cycle. i think if there is surprise for this economy here it excels to the upside, especially in the third and fourth quarters. stuart: do you think we hit 4% growth rate? >> i think in one of those two quarters, yes. you see job creation with real disposable income is great. there will be more spending. i think the economy is poised to do very, very well. that is the big wild card for the fall election.

stuart: surely good news for the stock market as well, isn't it? 4% growth in any quarter is looking pretty good. >> and with relatively modest inflation. i mean, we haven't used this word for a while, stuart, but the word goldilocks still applies in my opinion. stuart: you think the economy will be really humming along right around september, october time, right before the elections. is that a plus for the president trump and gop? >> what a coincidence, huh? i think they can say the tax cuts were a major factor. right now the house does look like it could flip but we have a long way to go. i think a strong economy is the great wild card of this coming election. stuart: greg, we hear you, thank you as always for being here. >> you bet. stuart: we have two gop lawmakers, oklahoma congressman tom cole, wisconsin governor scott walker, both of them are warning about a democrat wave that is coming in november. brad blakeman is with us. brad, do you think that the democrats, i'm sorry the

republicans really do have to worry? bearing in mind what greg valliere just told us, they will get nice strong growth, september, october, good profits, good stock market. do they have to worry, the gop? >> we have to be concerned. i wouldn't say worried because that is the defeatist. we have a lot to be proud of. your prior guest, you said the economy could not be doing better under donald trump. and we're humming along. i suspect that is going to happen around the time people go to vote. we know historically that when people go to vote in midterm elections they do it with their pocketbooks. am i better off today than i was? should we keep this team in place? we have full employment. we have interest rates that are favorable to first-time homebuyers and to investors in business. we have jobs created, three million jobs. but historically, stuart, we know that since the civil war that the party who controls the white house loses on average of 32 house seats. we can't afford that. we lose about two senate seats. can't afford that. we have to run on a record.

the good news is, democrats have the history for them. the bad news for the democrats they're defending many more seats. guess what, the dnc is out of money. stuart: will democrats run against president trump, not against the economy, which is going to be doing well but against the persona and style of president trump? that is what they're going to run against. the republicans have to balance this. the success of the economy versus a difficult, personally difficult president where some voters don't approve? >> that is true but you know, i've been speaking it voters, i speak to people in taxicabs, i speak to waitresses and waiters, i speak to businessmen. you know i as you get the same story. is the economy doing well, yes. who do you credit? i credit president trump? do you like him? sometimes i wish he could tone it down. the bottom line is, while they may wish the president tweeted less, toned it down a little, they give him credit for the

state of the economy and i think that weighs to his benefit and i think the more people start running away from the president they do it at their peril. he defied all odds when he ran for president. beat 16 competent candidates in the primary and skunked a political institution in the general election. i would not bet against donald trump. stuart: now, let's consider the senate for a second. today, the president goes to west virginia. i think he is going there to run right up against senator manchin, democrat, very much in trump country. i think the president is going to tout jobs, strong economy, right in senator manchin's backyard. >> absolutely. that is exactly what he should do. the president coming into the midterm has to use carrots and sticks. he will give people things to tout and that he is also going to punish those who have not supported him. that is what presidents do. they use the power of bully pulpit. the president has a great record to run on. we shouldn't be ashamed of it.

we shouldn't be scared of midterms. we should tell the american people a story. you are much better off republican leadership and president trump than you were under president obama. state the facts. stuart: okay. you got it. brad blakeman, thanks for joining us. see you real soon. >> pleasure. stuart: i'm trying to get a grips with this story. it is about the activist investor bill ackman. he runs a big fund. i think he has about $8 billion in it and he makes invests out of that fund. he is losing investors. they are taking money out. ashley: his private hedge fund. why? she years of subpar performance. investors pulling cash out as you say, stuart, a fast rate. blackstone which has been a big backer of this fund taking cash out. jpmorgan chase no longer recommending fund. he made a big bet on valeant pharmaceuticals, bet 4 billion and lost. big battle with herbalife saying it will go to zero, never did.

cost him a billion dollars. these are big hits, people taking money out at pretty fast rate. it hurts. stuart: does indeed. thank you very much. google employees are trying to stop the company from making software for military drones. google employees don't like that involvement. i find that incredible quite frankly. we have the story for you. nigel farage on the road with former mexican president vicente fox debating nationalism. nigel will tell us what that is all about after this. ♪

♪ ashley: in the last hour congressman dave brat told us the middle class is plain fed up with the financial burden caused by illegal immigration. i can take a listen. >> the folks coming across honduras all children of god, that is not the issue. the issue none of this is decided by the american people. the democrats are silent on immigration. middle class from bernie voters and trump voters are fed up with this thing, right.

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stuart: lower sales, a weak forecast that will knock your stock around every sipping gell time. that is what is happening with conns, a look electronic and retailer. down 15%. big loss there. a big surprise to us, london's murder rate is surpassing the murder rate in new york city. our next guest says london's mayor should spend less time criticizing mr. trump and more time fighting crime in london. nigel farage is with us, fox news contributor. nigel, we have a lot of stabbings. guns in new york and knives in london and knives win out. i don't me to be facetious here, what else is going on? >> we have breakdown in law and order in certain is districts in london. remarkably this mayor of london has not visited sing is gell one of the crime scenes. he has not not met any of bereaved families and simply

burying his head in the sand. we had a policy few years ago, stop and search. which meant in the bad areas police could search people at will to see whether they were carrying knives, if they were, they were carrying strong sentences. the problem many of the years are where crime is happening, areas with high immigration rates. everyone is scared of the police and authorities being called racist. so we have taken our foot off the pedal. i would say the political correctness has directly led to the murder rate going up in london. stuart: what has the mayor of london, sadiq khan, what does he have to say about this? he must have had some kind of public announcement? >> he writes letters to downing street. writes letters to the prime minister, can we spend more money on the police rather than making sure, working with london's metropolitan police to make sure we are policing those bad districts, doing it properly. we bring backstop and search. and you know what? if people want to scream racist at police officers, the police

officers job is bring murder rate down but they need direction from the mayor of london, frankly through all of this he is pretty much absent without leave. stuart: i find that hard to explain. i don't know why he would do that. generally speaking the man is fairly popular in london. he was quite easily elected. >> yeah. stuart: do you think they will bring backstop and search? >> i hope they do but there is, as i say this fear that if, if you were to stop, even in an area like tottenham london where the shootings, stabs taking place, one of the worst parts of london, happens to be an area with a big black population, if this imagery put out by the left of police officers stopping black people on the streets, that is what they're scared of. they're scared of being criticized for being thought to be racist rather than dealing with the crime itself. so i hope, i do hope the mayor actually does his job. stuart: okay. nigel, one more for you.

you and mexico's former president vicente fox, you're touring the united states, talking about nationalism and globalism? how are you, i mean, i imagine that vicente fox is well-received in many parts of america but how about you? >> well there are lots of students out there who seem to have far too many professors of a liberal disposition, very few professors of conservative disposition, you know something, stuart, they have been told that "brexit" and trump, return to national system somehow, awful dangerous thing and my job is to explain to them through the boos and jeer is, you understand, my knob to explain nationalism or nation system the desire for people to live democratically in a country where the decisions are made by people they can elect, made by people they can get rid of. i try to make them listen to the argument that immigration

matters. a country that gets this right, that makes sure immigrants make a financial contribution, speak the language, integrate within society and obey the law, that is what we need. and i warn them, that if you look whats mrs. merkel did in germany, by just opening up the doors to countless numbers of people she effectively directly imported terrorism into europe. now i know some people find these arguments tough to listen to, but actually there has been far too much safe spaces and banning of speakers from universities so i'm enjoying the challenge. stuart: exactly. at least they let you speak. surprise, surprise. >> yeah. stuart: this is really good. this is really healthy. we've done two debates already. two more to come. i don't agree with vicente fox's globalist out look, but the point is we're also showing these students that you can have debates on tough issues but you can do it in a civilized and grown-up way. stuart: well-said, nigel farage.

you're all right. come to see us in new york next time you're here. >> certainly will. stuart: nigel. thank you very much. sir. appreciate it. the masters in full swing. wait for it. greg norman on this program live after this. ♪ welcome to the xfinity store.

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stuart: well it has started just moments ago. tiger woods teed off in the masters in augusta, georgia. look who is with us now, greg norman, international business guy. set ceo of greg norman company and investments all around the world. greg norman. how are you? >> very well this morning, stuart, yourself? , i'm in great shape. i love the masters, to me it is the start of spring. every time it starts i'm a happy guy. is your money on tiger woods? >> no. i will take the field. i bet you a cocktail we go to new york next time. stuart: what i want to see is a

very solid comeback for tiger because i think that would really help the sport itself. are you with me on this? >> oh, absolutely. look, i think he has had a very solid comeback this year. look at his perform ans in the tournaments he played n. a ten 10, top 20, that is indication of the magnitude of effort he put into it. not only on the golf course physically but mentally as well. he has gone through a tumultuous couple of years. you have to give the guy credit for stepping up and staying focused on his true passion and love, playing the game of golf. we'll all be the benefactors of that. stuart: i saw him at the press conference the other day. seemed like a different guy. a lot of smiles. he was very gentile, personable sort of fellow, different from 10 years ago. i understand he played nine holes with phil mickelson. they used to be rivals, not

enemies. all kumbayah again, good for the sport. >> good for the sport and it is good for the u.s. ryder cup team , tiger will be captain engaging with these guys. he is definitely getting good advice unless tiger made the decision on his own. he seems like he is listening, doing right things for the support in general, stuart. i'm encouraged to see it. quite honestly i truly believe there is probably two dozen guys out there today that, tiger at is had best right now, there are 2,000 nice playing who are not intimidated by him and are better than him when he is at his best now. stuart: greg norman, big statement. stirring it up, greg. i know you retired but given your druthers, wouldn't you love to be playing today? >> oh for sure. look, once a competitor, always a competitor.

i just changed my direction in being a competitor, that is in the business word. i think it is fascinating this world i'm in now. i learned so much but i learn new things. i do miss it. i was at augusta national with my son and one of the members and i love walking around there, playing there, feeling the energy of the place. i mean, i do miss it when this time of year comes and you guys in the northeast white stuff all around you, down here, 85-degree weather. ashley: yeah, yeah. stuart: greg, lad, your time is up. you're done, son. i'm jealous. i wish i was there. i wish i was on the way to augusta. can't do it this year. i wish i could. greg norman, you're all right. come back anytime. >> anytime, thanks, stuart. stuart: got it, sir. positive effects of the trump tax cuts. we're still figuring them out, they're rolling in. lower utility bills, bigger

paychecks, bigger bonuses, my take on that, state of the economy after tax cuts after this. and a perfectly inconspicuous suv. you must become invisible. [hero] i'll take my chances.

stuart: i think it's time for an update on who's doing well from the trump tax cuts. i can't help but mention again nancy pelosi's crumbs comment because it's increasingly obvious that ms. pelosi is dead wrong with. grover norquist follows the flow of benefits from tax cuts, and here's what we have. try this. 91 million americans have lower utility bills because utilities passed along their lower profits tax rates to their own customers. 90% of workers have seen bigger paychecks because their individual tax rates have been cut. four million and counting have received a bonus from their employer. that was a direct pass-through of lower corporate tax rates. 500 companies and counting have offered those bonuses, and that's just big companies.

remember, please, the promise of tax cuts and growth set up a big stock market rally, and that has helped the 55 million americans with a 401(k) and the tens of millions with an ira. they have seen a very nice pop for their retirement funds. as we go through the year, the news about bonuses and paychecks is being pushed onto the back burner. we seem to be more interested in scandal than prosperity. this is unfortunate, because to most people the economy is job one, and it's a job the president is handling rather well. two news items to back that up. first, the jobs numbers. they've been very strong recently. nearly a quarter million new private sector jobs reported just yesterday. and this morning we find the tiring rate, the layoff rate -- firing rate remains close to a 40-year home. second, wichita railway services. never heard of them? understood. well, you're gonna hear about themed today. they're offering the biggest

bonuses yet, up to $6,000 for employees. hardly a crumb unless, of course, you're a soup orer-rich elitist from california. the wichita railway ceo coming up as the third hour of "varney & company" gets rolling. ♪ ♪ >> trump has ended the war on business, he's ended the war on investors, he's ended the war on success. he doesn't want to punish people, he wants to reward them. you can see the pick up this year in activity. this is great stuff. stuart: you know him, that's larry kudlow earlier this morning with maria on the fox business network. later this hour we're talking to a ceo who's giving his employees the largest tax cut bonuses in the nation. that's shortly. now this: president trump wants cuts in the $1.3 trillion

spending bill which he has already signed. he wants to go back into it and take stuff out. jason chaffetz, he can do this so long as he says specifically this, he can say get it out, and there's a 45-day period, then congress has to vote, it's 51 votes and he's in. >> the president can actually do a few things. just because the money's appropriated doesn't mean it needs to be spent. the other dirty little secret is if you're appropriated $50 billion and you only spend 49, that doesn't go back to the treasury. they bank that. they have this little reserve slush fund. so mick mulvaney, who's the office of management and budget director, he understands this. i think he's going to say, look, you've got to tap into some of those funds, bring down some of these other numbers, and if the president wants to build the wall, they can easily transfer money. they have to get signatures from appropriations chairmen, but that happens all the time. stuart: you see, we were all

thinking it's over, he signed it. it was a rotten bill -- >> it was. [laughter] stuart: i know you felt that way. >> yeah. stuart: it's not over, is it? >> no. stuart: i mean, you really might see cuts. it is possible, isn't it? >> it's still a net increase, you know? they will say, hey, it's a cut from what we've appropriated at record levels, it was still a 13% increase in domestic discretionary spending. so it may be, you know, 12 or 10, but it's still an increase. it's still a ridiculous amount of must be, and we're still -- of money, and we're still paying more than $600 million a day in interest on our national debt. we spend about $12 billion a day as a federal government. i mean, the numbers are just absolutely stunning. stuart: $600 million every day -- >> every day. stuart: -- in interest payments on the established debt. >> and that's just -- remember, the rate's near zero. if you do have rising interest rate, you're going to be approaching a billion dollars a day. we don't get anything for that. there is a consequence to this

accumulation of debt. stuart: it would be very nice to have just a little bit taken off, symbolic. >> yeah. i think the president was really torn. they want the money for the military, but i can't believe congress -- think about it, over a ten-year window, nearly $46 trillion appropriated, they couldn't give the president 25 billion for the wall? be he'll figure it out. he'll get there. stuart: you were about to say -- >> mick mulvaney will figure it out for him. stuart: jason, thanks so much for being with us. who do you like in the masters? >> justin thomas. the guy's a stud for as young as he is. in my pool, i'm all about justin thomas. stuart: justin thomas. [laughter] >> you can't change your pick now. stuart: jason, thank you so much. >> thank you. stuart: check that big board. whoa, high of the day, ladies and gentlemen. we like this. we're up 245 points, reaching 24,500. take a look at facebook. it says cambridge analytica may have had data on 87 million people, not the 50 million we first figured out.

however, the stock is up $4 at 159. fox news contributor gary kaltbaum is with us. can you explain why it is that facebook's stock is up when the publicities about it is still down, i mean, negative? >> mark zuckerberg came out yesterday and said there's been very little impact with all the nudes that's been surrounding -- news that's been surrounding. keep in mind the stock is way down from the highs, and now he's got to get in front of the hill, and that's going to be interesting tv that day. stuart: do you see regulation of some kind coming down the pike at the data gatherers and the data miners? that's a gigantic global industry. i think that kind of regulation is coming down, what say you? >> you can bet they're going to the try. i don't know if they're going to do, but they're definitely going to try. politicians love looking at this. and, look, facebook earned this. they've been acting like the nsa with our price, and they get an

f- on transparency also. and i suspect they're going to continue. you're also seeing a bunch of confessions come out of them, who the heck's been running facebook the past couple of years with all these things we've been hearing? stuart: we're going to see zuckerberg next wednesday liven on this program, that's for sure. jamie dimon, top banker in america, he wants congress to expand this earned income tax credit. as you know, gary, that is a way of taking money from taxpayers and giving it in a check to all non-- low income, non-taxpayers. what do you think of the idea? >> talk about redistribution of wealth. it is people that do work and have kids but are below or around poverty line. met me just say this, it is -- let me just say this, it has actually helped get these people above the poverty line, so in that context it's worked. also what they need to fix is some people don't even know they

get it, so they're not getting it. if they do it through the payroll system, that'll help. i'm actually okay with it. i'm not big into taxpayers paying for others, but it is something that has kind of worked. it's not a big, big, big dollar item, so i'm okay. not thrilled, but okay. stuart: it's the third largest social welfare program in the united states, and you're okay with expanding it. caught balm, you just lost me -- i'm a nice guy, i'm moving on, i'll ignore what you have to say, i'll move on. [laughter] i won't embarrass you. bitcoin is down to $6,700. you keep theming us -- telling us this thing is going away. when? >> i don't know when, but i do believe when all's said and done, it's going to be dust. i was amazed last week some silicon valley dude said it's going to be the only currency down the road, and i'm also amazed the people who told you to buy it at 19,000, 10,000, 15,000 are still telling you to buy it. and, stuart, i have to mention long fin because this is a name

we talked about a few months ago when it was $140. it's now at 11 down from 70 in the last week because the sec is all over them with the enforcement division for being maybe not a company. it's called pick your poison, be careful. i think there's, you know, it's at 6,000 and something. i don't think there's going to be much left down the rooted, i just don't know when. stuart: i take it you do not own any of these clip cocurrency or -- cryptocurrencies or block chain -- >> negatory. stuart: we'll let you off this time. you're all right. thanks for joining us, gary. >> thank you. stuart: a couple of stocks in the news, look at ge, a little bounce there. not much. you know when you go from the -- 12 to $13 -- >> back to life. stuart: that's good. the stock of tesla, where is it? i'm pretty sure it's up this morning despite some -- yes, it

is up. >> look at that. stuart: it's on the cusp of hitting $300 a share. literally a couple of days ago that thing was 250, 258, i saw. >> wow. stuart: what a recovery. nearly 300 on discuss la. robert mueller reportedly told president trump's legal team that the president is not, repeat not, a target in the russia investigation. the judge coming up on what does that mean? more real estate firms are turning to artificial intelligence to help sell homes. sam dibianchi, former star of million dollar listing: miami, she is with us on that one. and in california a new ballot initiative to repeal the state's sanctuary law. oh, yes, please. second, more than a million illegals have received driver's licenses in the last five years. the california republican party chair is next. ♪ ♪ let's begin.

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stuart: where's the lowest jobless raten the country? i'll tell you, it's hawaii. 2.1%, is the rate, and employers are having a hard time because they can't find enough qualified workers. >> shall we go? off we go to honolulu. [laughter] stuart: analysts say those unfilled jobs slowing the state's economic growth rate. i can believe that. california, a ballot initiative there aims to repeal the state's sanctuary law. joining us now, jim brulte, california republican party chair. jim, it's not on the ballot yet, is it? it is a proposal, correct? >> it's a proposal. and voters of california who benefit from the structure of government crafted by the reformers ability a hundred years ago -- about a hundred years ago, they gave voters three tools to make sure government reacts to the people.

the first is the initiative which allows the voters of california to pass a law. the second is referendum which allows voters to undo a law the legislature's passed. and the third is the recall which allows voters to un-elect someone they've elected. and this is an initiative -- stuart: okay, jim, tell me honestly, give me an honest response to this. don't grind your republican axe. if that ballot initiative were voted on today, would californians reject sanctuary state status is for california? >> i believe they would. all of the polling we've seen is that voters collectively in california do not like the idea that california's a sanctuary state. republicans really don't like it. independents like it -- dislike it but not by the margins that republicans do. and by a very slim margin, democrats in california oppose

sanctuary state as well. stuart: well, that is fascinating. one more for you. the california dmv says more than a million illegals have received driver's licenses just in the last five years. tell me, jim, what is there to stop those illegals with a driver's license or who are -- what's to stop them voting? >> actually, there isn't anything. and the california government is making it easier for people who are not registered to vote to vote. used to be that when you went to the dmv to get a driver's license, you would have to opt in to voter registration. now under california law you actually have to opt out. and we have evidence that people who are here illegally but do obtain driver's licenses legally are being registered to vote by the dmv. we also, you know, since it's

doctrine in california for liberals, we actually have cities that are allowing illegal immigrants to vote. stuart: you know, this is what drives the rest of the cub crazy, because it is -- the country crazy, because it is quite possible that california will pollute presidential elections by making it rather easy and without penalty for illegallies to vote. >> well, it should drive the rest of the country crazy, and it strives a lot of californians crazy as well. but the liberals are in charge of this state and making sure, making sure citizens aren't the only folks that are allowed to vote is part of liberal doctrine in california. stuart: here's another one that drives us all crazy about parts of california. google employees, they're trying to stop google from working with the military on military drones. i find that incredible. i mean, what's going on in california that you've got people who won't work with the military to defend america? what's going on? >> you know, i don't understand

it. i understand google's motto is do no evil, but the fact of the matter is if you used artificial intelligence to help the targeting of drones, you'd have less accurate9al damage -- collateral damage. and that is, seems to me, to be a very, very good thing. and most of these drones are being used to target evil people. so it strikes me that taking out evil is actually a good thing. so i don't quite get it. stuart: nor do we. >> but then i'm not an engineer at google. [laughter] stuart: no, you're not -- >> by the way, they didn't mind declaring war on conservatives. maybe they just don't want to fight war against bad folk. stuart: oh, that was the sting in the tail. well done, young man. jim brulte, everyone. thanks very much, indeed, sir. appreciate it. two more data breaches to tell you about. delta, delta airlines, and sears. what is, the new normal? >> yeah. >> it was a third-party company

that was looking after their details and got hacked. stuart: both stocks up. >> hack du jour. stuart: this is the new normal. emergency crews at yellowstone preparing for a possible volcanic eruption. it's unlikely it will erupt in our lifetime, but officials need to be ready. [laughter] >> you think? >> okay. stuart: i could drink to that. coming up this fall, limited edition beer from budweiser and jim beam. they're teaming up to make budweiser reserve copper lager. it's brewed with two row barley. never heard of that, i don't know what that is. and aged in jim beam bourbon barrels. got that? volunteer group that helps raise and train service dogs brought the group of pups to disneyland. the dogs were all sporting their favorite mickey mouse ears, and even got to take a whirl in the famous teacup p ride. >> i love that. [laughter] stuart: without getting seasick.

you get it all on "varney & company," do you not? ♪ ♪

stuart: i've got to tell you, this markt went straight up right from the get go at 9:30 eastern time, less than two hours later we are

now up 322 points. that is the high of the day. straight up. check this out, please. a great white interrupted a police operation off the coast of australia. two cops in a small boat trying to get to another boat, the shark began following them. you can see it, look at that. huge! both boats were able to get back to shore safely. this ain't no jaws. scientists say they discovered dinosaur footprints in scotland, found dozens of fossils. on the right of your screen, a rendering of whattists believe -- what scientists believe they looked like. 49 feet long, 10 tons in weight. big. >> wow. yes, indeed. stuart: fiery bubble off the coast of hawaii, this is the u.s. geological survey. it tweeted it out, this is marking throwback thursday. that photo was taken in 1969. >> look at that. stuart: shows a rare love of v.a. dome fountain. it was a bubble spewed out lava

65 feet into the air, but that was 1969. that's a photo and a half. look at the markets, look at the big board. yeah, new high of the day, 232 points higher -- 323 points higher. dan henninger on the show in a moment. he's got a new piece in the journal. he says the jobs are there, but we don't have the people to fill 'em. dan, next. ♪ ♪ alerts -- wouldn't you like one from the market when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today. fidelity. ♪

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stuart: yet another high of the day. look at this, now we're up 342 points. we have reaches 24,600. >> hello. stuart: 29 of the 30 dow stocks are up. only pfizer on the way down. check out facebook, that stock is up nicely this morning at $159. zuckerberg will testify before congress next week. the stock moving -- it was at $160 earlier today. now this, robert mueller reportedly told president trump's legal team that the is not a target in a criminal investigation. now, what does that mean? [laughter] the man himself is here, judge andrew napolitano. >> very good question, what does that mean. stuart: i don't know what it means. >> it's a legal term which means a lot to those of us in the

business but not to the general public. so a target is a person the government has decided to indict. and they will sometimes say to the target, we're about to indict you. you are welcome to come in and try and talk us out of it, something that rarely is done. a subject, which is what president trump is, is a person who remains the focus of a criminal investigation. meaning they need more, more evidence to indict. stuart: so he's not off the hook. >> no. and i would encourage him not to boast and not to relax. he's very much not off the hook. in fact, when do -- here's a cocktail party question for you. [laughter] when do subjects become targets? when they go in and try and talk the prosecutors out of indicting them, they usually end up as targets. stuart: so your telling mr. trump do not under any circumstances -- >> correct. and i am shocked to learn that there is a split amongst his two or three lawyers on this. this is criminal defense 101. you don't talk to a guy that

owns a grand jury. we've been going through this for so long. the issue is the president's personal self-confidence and the president's statements ad nauseam to the public, i will talk to bob mueller, i'm not afraid of bob mueller. he should be afraid of bob mueller. he can't indict bob mueller, mueller can indict him. stuart: but the president is certain there is no collusion, therefore mueller's got nothing. >> mueller has well over 100,000 documents that his team has scrutinizeed going back to deutsche bank loans to the trump organization right up to as recently as in the white house last month. the president has not reviewed those documents. the president had a member of his legal team who reviewed every one. where's that guy now? he quit. stuart: ah. >> so this is dangerous territory to the president. do you remember signing this? of course i remember signing it. then they find things to contradict it. stay away from them, don't become a subject who becomes a

target because of what you told the government. stuart: you know what drives me crazy and a lot of our viewers, all this concentration on mueller, russia, russia, russia, trump. what about hillary, the fbi, the justice department, collusion -- >> well, that is a very, that is a very good question. the attorney general has appointed a u.s. attorney from utah to investigate why hillary was exonerated. he's toothless in utah because a utah grand jury cannot subpoena documents from fbi agents in washington d.c. stuart: what do you mean -- >> is this a real investigation or isn't it? stuart: is he going to stay in utah? >> only if he comes to washington -- tell you in a minute -- puts together a grand jury, hires federal prosecutors, hires fbi agents and then he becomes a de facto special counsel. guess what jeff sessions -- where jeff sessions said in the letter of appointment he's going to work from? utah! >> oh. stuart: you're killing me.

you're killing me. >> i'm trying to present uncomfortable truths in as pleasant and informative of a way as i can concern. [laughter] and i love that powder blue necktie. [laughter] stuart: what was the name of that movie, "an inch convenient truth." -- inconvenient truth. >> yes. that was al gore's movie. stuart: you're quoting an inconvenient truth to me on my program? >> you said it. [laughter] stuart: this is going to go on forever. >> i'm sorry so say i am convinced this goes at least into 2019. stuart: that's the mueller problem and the utah prosecutor probe? is. >> yes. now, there are rumors last night that paul manafort's lawyers are trying to negotiate something with president -- with mueller. if there's a guilty plea there, the president has a lot to worry about. if there's no guilty plea there and manafort has to be tried, it definitely goes into 2019. stuart: it was a great pleasure having you on the program. [laughter] >> danny, bail me out with something happier. stuart: he will. [laughter] judge, you are all right.

thanks very much. now, it really is jobs week, and our next guest says, hey, look, we are at full employment, period. dan henninger, "wall street journal" guy, is with us today. you say, and i've read the article here, you say that there are is it millions of job openings but no workers to fill 'em? is that it? >> yeah. i mean -- stuart: millions? >> i don't know whether it's millions, but it could approach millions. there are help wanted signs everywhere. i mean, skilled workers, semi-skilled, unskilled. there's a great sign out in front of an arby's restaurant in mason city, iowa, if you're smiling, we're hiring. [laughter] they're that desperate. so why -- the problem now is not that we need a trade war to protect american jobs because, as the federal reserve has said, we are at full employment donald trump won the jobs war, but he didn't win it with china, he won it with barack obama. it was during those eight years of the obama presidency when we had high unemployment. trump comes into office, does

really significant deregulation, doesn't get talked about enough. at the beginning of the presidency, at the end of the year passes a 40% reduction in the corporate tax rate, and by march we are at full employment. in virtually 14 months, an extraordinary achievement. the job now, stuart, is to find the people inside the united states who are impacted, they stay home, they will not move, they will not go to the jobs available -- stuart: but they are there. we have a very low participation rate -- >> yeah. stuart: -- implying there are millions of people not in the labor force, but in america who are not taking these jobs. >> because -- stuart: why aren't they taking the jobs? >> well, it's a complicated problem, there's no question about it. united states is famous for its labor mobility. if you live in pennsylvania and there's a job in michigan, you move to michigan to take the job. now people won't move, and it's for a variety of reasons. one thing is they, the home mortgage deduction, very valuable. there's a housing shortage.

it's too expensive to move somewhere else. we now by now have a huge entitlement system. a lot of people are on medicaid or on disability. they have enough money living in an inexpensive place, they feel i don't really have to move somewhere else to take another job. stuart: what about all these youngsters? the millennials.i hate to malign them. >> one more fascinating reason, there is a cultural polarization in the united states right now. a lot of young people who live in small towns, rural communities don't want to go to the big city because they don't think the cities share their values anymore. and they're right! stuart: yeah, but that's a cultural shift and a half. that's poe aroundization -- polarization, actually, cultural and political polarization is what you're talking about. >> and it is affecting the economy, because a lot of these employers are saying whether they're manufacturers, whether they're in tech or whether they're in fast foods, the hospital industry, with we cannot get enough workers to fill the orders we have. stuart: but there's an obvious

answer, you raise wages. you make it financially attractive for people to go take another job. >> well, perfect example is the california agricultural industry. crops are rotting in the fields out there. they have raised wages. they've got the highest wage rate now for agricultural workers that they've ever had in california. they still cannot get enough workers. now, one solution to all this is, indeed, i would say to use immigrants in a more rational way. remember back when we had a program you had work visas, people came in, did a job, and when the job was over, they would go back to the country they came from. when the work was available again, they would come and work. that was another kind of labor mobility that would fill this jobs gap. stuart: except they didn't go back. >> they didn't go back because they weren't allowed to come back once they had gone back. stuart: i'm really troubled by this. i came to america as a vigorous, dynamic place. everybody's moving around all over the place. >> yeah. stuart: climb that food chain,

make more money, take advantage of the opportunity. and now dan henninger, "wall street journal" guy, is telling me i came to the wrong place. that's just terrible. [laughter] you've been my -- >> it's a good news problem. we, everyone who wants to work has got a job or could have a job. there's a lot of people though at the margins who are ambivalent about whether they want to work or whether they want to move to where the jobs are. stuart: that ain't the america that i know and love. it's not. >> do something about it. [laughter] >> you know, mr. varney, you are stuck here. you can't go back because you renounced her. stuart: i did. [laughter] >> you called that right, phillip. stuart: despite it all, you're all right. [laughter] the company on your screen is cons, they are an electronics and furniture retailer. seems like a strange combination to me. they made a poor forecast, and down goes the stock 11%.

gmo company, that's -- >> monsanto. stuart: thank you very much, indeed. other side known as a seed company. the stock's moving higher, up $1.34. the europeans detest gmo, genetically-modified organisms. what did you call it? >> franken-food. stuart: nonsense. absolute nonsense. [laughter] check this out. [inaudible] expelled american diplomats leafing the u.s. embassy in russia. russia ordered 60 diplomats to leave the country. we think those are the buses taking our guys out. very soon we'll talk to a ceo of wichita rail services. his company is succeeding because of the president's pro-business policies. he is giving his employees the biggest tax cut bonuses anywhere in america. he's on the show. more real estate firms turning to artificial intelligence to help sell homes.

one of our favorite real estate agents is with us next. ♪ ♪

♪ ♪ >> i'm lauren simonetti on the floor of the new york stock exchange. watching shares of equifax at this hour.

a massachusetts judge ruling that a lawsuit by the massachusetts attorney general can proceed. shares up just fractionally. claims equifax failed to safeguard the personal information of three million folks in massachusetts and waited too long to disclose the breach. obviously, that breach affecting basically half of the country. let's take a look at a 52-week chart here, because you can see when equifax disclosed that to the public last september. look at that red dot. shares hit a low of 89.59. of course, the company faces other lawsuits going forward. more "varney & company" after this. ♪ see that's funny, i thought you traded options. i'm not really a wall street guy. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you

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stuart: home prices in san francisco gog straight up. the median price of a home jumped to 1.6 million -- >> whopping. stuart: that's up 25%. >> oh, my goodness. stuart: from this time last year. that's a housing market, san francisco. some real estate firms are using artificial intelligence to help sell homes. samantha debianchi knows about this stuff. give me an example of artificial intelligence used to sell homes. >> so what a.i. actually is in real estate is it useds behavioral-targeted marketing or

ads. let's say, for example, i live in a two-bedroom home, but i'm searching on the internet for baby furniture. so you're going to assume from there that maybe i will soon need a three-bedroom home, and suddenly i will see homes all throughout my social media or whenever i'm on the internet. or let's say my pattern is every two years i'm buying and selling a home. again, i'm a target. but if my patterns show that i'm searching for makeup or pretty dresses, i'm probably not going to be the target, and the money won't be spent on me. so it's pretty simple in that way. stuart: okay. so who's reading my personal information, for example, and interpreting what i want to buy next in real estate? who's doing that? >> big brother. stuart: well, no, who's doing it? [laughter] is it the real estate company? >> it is a real estate, it's a real estate company. so i actually just interviewed the ceo of rex real estate, his name's jack ryan, really nice guy. but i did say, you know, look, it's great to have a.i. and all

of this technology, but do you really think that there's no place for the realtor? he did agree that you do need the human component, realtors to an extent. he actually also uses robots in open houses that can answer up to 75 questions, which is great. but again i said, well, what if the robot malfunctions, or what if somebody needs other assistance or has other questions that aren't a part of those 75? and even with that he said there is someone there from his company that sits there with the robot to answer things and to, you know, make sure that the home is prepared accordingly. so no matter what even with technology, you still need a realtor or that human component. stuart: well, you're talking up your own business, of course. [laughter] >> i mean, come on. stuart: guys cannot go it alone, they need samantha debianchi -- >> a human. >> 6%, a.i. brings and locates the buyer, but you still need me and a real or to have to sell it. i mean, who's going to

negotiate -- >> how do we know she's not a robot? [laughter] stuart: you guys can use artificial intelligence to enhance your marketing, pull in clients who are pre-prepared to buy the houses that you've got available. that's it. so you approve of this. >> correct. i do approve of it. but, you know, it streamlines the process. it's going to help me find that buyer that much faster. but again, you know, in this case we're talking about a company that solely uses a.i. and no realtors at all and takes a deduction of a 6% commission. i mean, i'm sorry, a 2% commission. stuart: so rex real estate, the guys who are assembling all this information, they've got to buy that information from the facebooks of this world, correct? >> correct. correct. stuart: so they're buying personal information, matching it up with real teem, sending out -- real people, sending out ads to those people to enhance the marketing of a house. that's what's going on? you have no problem with that? >> right -- i don't have a problem with it. i think it's another avenue. but again, you know, for me i

have buyers, for example, that don't even know that they're searching for a home. so, for example, i might have a great property, i sent it to a friend and said, hey, this is the perfect house for you. they come back and say, sam, i'm not even in the market. i say, yes, you are because this is the house you need to own. they might not even know they need to buy a house until they meet me, and suddenly it's done, it happens. especially in a great market where, again, it is changing to a buyer's to market. deals are going to be made. stuart: okay. samantha, i do hear you. and if ever i want to buy another home, i'm sure you'll be sending me all kinds of information, okay? >> i'm already targeting you, stuart. stuart: i know you are. [laughter] you're profiling me. i object. [laughter] samantha, thanks for joining us. good stuff. we'll see you later. >> thank you. stuart: thank very much, okay. individual stocks, here we go. the big techs, look at them go. all of them on the upside. amazon, very nice gain, $37 higher for amazon despite another attack from president trump on amazon directly first

thing this morning. apple is up, alphabet's up, facebook's up, etc., etc., etc. how about boeing? now, there's a stock that's gone up and down with all the news on trade. today the trade news is out of the headlines, boeing back up to the tune of $9. that's nearly 3%, $337, back there again at boeing. next case, promised you this all day. the ceo of wichita rail, he's the man handing out the biggest bonuses in america. and he joins us after this. ♪ ♪

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stuart: our next guest is giving out the largest bonuses, as in tax cut bonuses, in the entire country. his name is bob aldrich, and he is the president and ceo of wichita railway services, and he joins us now on the phone. all right, bob, i am told that you gave out up to $6,000. is that accurate? >> yes, sir. and how you doing? it's -- it wasn't that big of a

deal. stuart: i'm in great shape here. i'm sitting in new york, it's rather cold, and i'm interviewing you because you've given out the biggest bonuses in the country. i am told that you gave out just envelopes, sealed envelopes to your people, and they figured out how much they got when they opened the envelope, is that right? >> well, pretty much. you know, we're a small company, and the employees are just fabulous. we work our tails off. and, you know, we started the company in 2013, and, you know, it just, it's grown really good, and i just wanted to say thanks. stuart: the bonuses were between, what, $3,000 and $6,000? >> yes. stuart: that's a lot of money. that's the biggest in the country. >> well, that sort of surprises me. i, you know, i think it's, you know, again, it's a good thing for the employees. they'll spend the money locally, and, you know, it'll help spur our economy there a little bit. but the main thing is i know how i got here, and i just want to

say thanks to my employees. stuart: that's really cool stuff. you're doing it because you're a generous man, your company's done very well. was there another motive here like, for example, you want to keep the good staff that you've got because you can't find anybody else? >> well, that's -- again, that's part of it. i've got a great staff. but, you know, the whole thing boils down to is the tax cuts and the job act, and i think that was just fabulous. the outlook, you know, for this year is very good, very strong in the rail industry, and, you know, so i figure this would be a good time to do it, and so we did. stuart: how -- what was the reaction of the people when they opened the envelope? [laughter] >> well, they stared at it for a while. i had a couple of the employees who got a little teary-eyed, and that made me feel good. but, you know, they have families too, and the whole purpose of me having this company is to, you know, not only for my retirement program,

and taking care of my family, but taking care of the employees that i have. stuart: forgive me for asking, but are you a high-wage company? if you are, then a $3-$6,000 bonus i understand is proportionate. but if you're a middle income company, you know, paying people $25-40,000 a year, then 3-6,000 is a real shot in the arm. what kind of company are you? is. >> pretty big shot in the arm. they, again, they work very hard. they've earned it, they deserve it. and we try to do as much as we can for the employees. you know, we're a family-oriented type business. stuart: well, good for you. >> not that much to it. stuart: we take our hats off to you, because we do believe that you're offering the biggest and best bonuses of any company in america following the tax cuts, and i think you're a generous guy. i want to thank you very much for coming on the show today, bob, you're all right. >> i appreciate it. thank you.

stuart: yes, sir. we'll see you again soon, okay? dow industrials now up over 300 points. more "varney" after this. ♪ ♪ . . whoooo. when it comes to travel, i sweat the details. late checkout... ...down-alternative pillows... ...and of course, price.

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stuart: almost the high of the day. the dow is up 321 points. elizabeth macdonald telling us why it is up 300. liz: boeing and caterpillar responsible for 3/46 the dow. this is where i think it is headed, a wto fight. the u.s. has not lost pens china 14 years at the wto. they could say china is violating trade rules, you're not supposed to be forced to share intellectual property. that is the trading rules.

boils down to a wto fight where the u.s. is winning. stuart: turn over to the wto. ashley: negotiations. liz: process of negotiations, right. stuart: we're at the high of the day, up 342 points as we speak. my time is up. neil, it is yours. neil: thank you very, very much. big reversal from what is was going on yesterday. same issues clobbered, i wouldn't say a ven fans on issue basis, but more so this time yesterday when a lot were getting clobbered. a lot of them goldman, caterpillar, goldman. facebook and amd. some more battered issues of late coming back. again is this a good thing or a bad thing? is it a trade tiff, a trade war? i spoke to larry kudlow on this same issue yesterday. maybe we both had different dennis definitions take a look. >> you can't allow them to break