all right great show everybody thank you for joining us. yes so i think jay powell we have to focus on whether he's going to become more because of the trade conflicts. great information. don't miss larry here he is with stuart varney. good morning everyone. jobs, china trade, market reaction, yes, with big developments we're going to take them in order. first thing this morning, the government reported just 103,000 new jobs last month. wages are rising 2.7 rate of growth and 158,000 people actually dropped out of the labor force. the unemployment rate remains unchanged at 4.19% now characterize this report of disappointing although numbers could have been affected by bad weather which we did live through live with ratter or throughout the month of march. next, china trade, in a surprise

escalation president trump is now talking about a hundred billion worth of tariff its on chinese productses. beijing quickly responded they will fight this to the end they say. this morning, with in a radio interview the president accepted that the market and some sectors of the economy would feel some pain from the trade fight. so look at the market, where are we going a half hour from now? there's the influence of the jobs report and the influence of the new tariffs on china. the dow is going open down about 200 point, the s&p 18 down, and nasdaq down about 50 points of the opening bell. we have a lot to go at, and we going at it. "varney & company" is about to begin. >> from trade fierce. this a trade war varney gets powerful insight from larry

kudlow. >> overreact see how this works out. at the end of this whole process at end of the rainbow there's a pot of gold. >> reaction is in media from the nysc. >> what do you have to say move the market? >> across the country that's why more viewers keep turning to highest rate the market program in business television. "varney & company" only on fox business network. [laughter] >> well, isn't that nice. we did move the market when larry kudlow talked china trade on this show is the president tough economic advisor yes join us again today later this it hour. you got to stay tuned for that. quick look at futures as we told you we will be down across the board this friday morning. joining us now market watcher jeff seeger trade fight i can see that's a problem for investors i got that. but what about this disappointing jobs report could that be construed as a plus or for investors? >> yes about here's the why

investors have been worried consumed with the potential of rising interest rates specifically a fifth interest rate increase this report for investors first of all it was a weak report wage growth stagnant weak report concerns that the consumers going to be damaged by the -- by the trade war. now, what you have is fed that might back off on raising interest rates and that helps the market. doesn't help not good for the economy. but probably good for the market. >> okay. i characterize this as disapointing and yes -- >> yes it was. cranking it up and clearly -- there's a lot of hesitation among companies to go ahead and hire and expand. >> what's the enpliewps of the weather? i mean, it was bad weather in march does that account for some of this disappointment? >> it could. we know that government does mawk adjustments seasonably including for weather. i think this is an issue for the markets because we were expecting good jobs report to offset trade fight.

>> now the other big market story that's affecting the the market is -- president trump's considering another 100 billion in tariffs against china this is escalation and it is sudden. jeff, here's a question. what would you like to hear larry kudlow tell us later this hour? >> i know exactly what i want larry kudlow to tell president trump larry kudlow has been arranged for a long time he's seen the protectionism in japan. and what it did to the japanese economy, yes. in fact, we have to -- we have to reign in some of china's procedure processes but the one thing we have to keep in mind is that they will go with us to the extent that they will keep upping the ante because as much as people want to believe that they'll act in their best interest and is that this is negotiating tool it's are really

not. china wants to maintain dominance they want to win when you have a war there's a winner and a loser and in this case, if we take on protectionism as opposed to legitimately looking out for the consumer, this could be a problem. >> but they won or expanding on back of stolen r and from u.s. companies at some point this policy of strategic patience has to stop this has a whole new world with donald trump. >> here's the point in the news there japan and the eu have to join the u.s. to complain about that at the wto that was news that broke yesterday. >> they haven't joined ugh us on this latest 100 billion -- >> not yet but talking about stolen id property. >> but they've never been in the world of donald trump and don't forget when the president the chinese president was down in marlo go and launched that missile attack on syria they knew they were dealing with a whole different person. they're very different right now so -- >> you want larry kudlow tell

the president back off on the whole concept few that begs question it you back away from suggested tariffs, how do you get them to comply with -- quit taking our technology and -- >> keep in mind, that ultimate, the ultimate victim is going to be the consumer. china does it not import goods and services so they have other ways to retaliate and their retaliation will hurt the consumer. there's a way that kudlow could negotiate that could encourage the president to negotiate this by cracking down on -- on theft and there's a lot that could be done with that. but as far as tariffs, we will get hurt measure them to take it out on u.s. -- >> if you don't have a stick you've got nothing -- >> you get more of the sail nothing changes with -- >> although -- i have stay on this subject very

important po, obviously, listen to what the president just said in a radio interview. roll it. >> the easiest thing for me to do to close my eyes forget it and if i did that i'm not doing any job so i'm not saying there won't be a little pain but market has gone up 40, 42% so we might lose a little bit of it. but we're going it have a much stronger country when we're finished right -- >> congressman tom reid is with us republican from new york state. how do you feel about some sectors of the economy feeling some pain from this trade fight? >> well, i do believe stewart that long-term picture is what i focus on and i think at end of the day president is correct in the sense that he's disrupting trade policy and putting tools in tool box thafn never been used before and lorming going to come through this in a stronger position. short-term inldz that with tremendous amount of concern i have for individuals in that situation but if we don't change our policies we're going get more of the same which will put us further and further behind at

this point we lose the long-term fight. >> now you're from an industrial part of the country upstate new york. old line industrial part of the country if i may say that. >> it's a -- absolutely correct. you could take a hit. what to your constituents say about this? >> obviously, i've -- i do town hall out listening to foxes with a lot of farming activity in the director too so that's something i'm very concerned about. but i think everyone recognize ares they've seen it. they felt it. they've seen their technology being stolen by china and seen the modify rice for example was just stolen by a chinese workerr that got caught bringing back to china they see day in an day out a unfair practice and every tool in the tool box stuart going after this saying enough is enough let's compete fairly and if we do that we win in the long-term. >> i characterize as disappointing possibly to blame the weather may be a little. what's your snake >> yeah. obviously i was expecting better report. i do appreciate are the wage increases that we're seeing in those ruers. i watched that number in

particular. but you know, fundamentally this is something that we have to digest to see exactly what is causing hiccup here. but long-term we're on right trajectory. economy is growing a enwe're seeing tax reform take hold across all spectrum that's to me is a positive development that we with need to keep the eye on. >> tom reid look thanks for being with us on an important day. we appreciate it. thank you. >> so total change of subject look at that let's talk masses shall we ashley you're air force guy who is leading? >> that young man you saw there jordan speith in first place as they tee is up for round two today. tiger woods he wasn't all -- he finished a one over par tied for 29th certainly not out of to it by any means. which i don't know if anyone saw sergio garcia he took 13 shots kept hitting ball and rolling into water behind. remarkable. that winner of the last 12 masters have finished in the top ten after day one. >> but --

so you're in the top ten woods is at 29. but you know, that can easily, you know, not be true this year but i think that's an interesting stat. >> but very are tough for garcia to finish in the top ten. >> second to bottom. >> is that a record? >> tie the record. worst score on a masters hole i think in -- >> got to point where you couldn't watch it anymore. a tough moment if you've ever seen the movie concern keeps on going at it. keeps going in the water. and -- great. i felt exactly the same way. wow -- >> cut it off. open the market or in 20 minutes let me tell you where we're going down about 200 points now and down about 60 odd points for the nadz nasdaq composite president trump says he want it is two to 4,000 national guard troops to help secure the border. they will be there in a support role. they're not gobbing to make arrests this comes as we're learning about a surge in illegal border crossings. up 200% from a year ago.

and look at this. cherry blossoms full bloom d.c. the park service says they hit peak bloom yesterday that's the latest they've hit the peak since 2015. but you know, oh, dear they could all be gone soon. temperature in d.c. imponing to dip below freezing tonight. when they come up here. make it stop. >> more varney after this. okay'y this, but i found bladder leak underwear that's actually pretty. surprised? it's called always discreet boutique. it looks and fits like my underwear. i know what you're thinking. how can something this pretty protect? hidden inside is a super absorbent core that quickly turns liquid to gel... ...for incredible protection. so i feel protected... ...and pretty. always discreet boutique.

>> bringing up to speed on the market action we're still down about 200 points for the dow in 15 minutes time. i've got breaking news here we go. the treasury can want announcing new sanctions on russia. liz. >> striking right at putin intercircle seven of russia are richest men 12 companyies also 17 government officials close to putin. we're talking companies in oil sector, banking also companies that do weapon trading with the likes of syria, so these are close to putin. whanch do we do with them?

>> they're going to freeze assets. straight for the money. >> that's correct. >> frozen can't touch if. got it. how about this? you going see this. the president goes off script in west virginia. roll tape. >> you know this was going to be my remarks tay take about tbhoins take about two minutes but that would have been a little boring. [laughter] that's the presidents and here is former governor of arkansas mike huckabee sir general you like to see mr. trump unscripted but do you like these sudden new tariffs threatened on china? i think president is getting undivided attention and not on behalf of the u.s. but on behalf of every country in the world with with whom china trades but finds themselves on short end of the cheating stick so if this results long-term in a more fair agreement for the u.s. and the

rest of the world, then i think what he's dong is absolutely the right course. we have played the chump long muff to i'm happy to do it and happy to see him throw notes away. that's classic to be a speech writer for trump would be useless to be a butcher at a vegan convention because he rarely is going to use the script that someone hands him and he's going to go off on his own i think that's what a lot of americans find charming about him. >> i'm sure you've followed progress of the boarder dispute sending two to 4 thorks national guards people to the border. but look at this we've got this report here. that illegal crossings, this year -- well i think last month are up 200%. what's going on with this? >> well, a lot of people fear that what's going to happen is a tight orer border so if they're going to get in they better get in while the getting is good and so this -- rush of people trying to come in and i think that's why the president says we've got to put more people on the border and

put guard there. they can't do police action that would be illegal. but what they can do is to free up some of the jobs that will allow border agents to go to do officers functions to law enforcement function it is that this can do. so what guard can do is to monitor surveil, they can man the towers and report where they see breaches. there are whole lot of things that guard troops can do. this is not unprecedented. it was done by president bush and president obama. i don't remember the big outrage or outcry i don't remember anybody, you know, caring their garments and shedding tears on television it about it. but when donald trump the president does it, it seems to bring out the worst in some people. >> do you think in some ways he's going after california? because the governors of texas, arizona, new mexico all said yes put the guard troop there is. no problem. california has not said yes, okay go do it but delaying on saying that. >> well i don't think this is

a -- directed action toward california as much as it is this is a fulfillment of a campaign promise that he made. a lot of people in the political world and in the journalistic world are not used to a politician actually doing what he says once he gets in office. they are used to saying well now that i know better and donald trump is say nothing. this is what i said i was going to do ab about i'm going to do if and it shoct be a shock to anybody would be a bigger shock if he wasn't trying to enforce the borders. but is going to have to decide are they one of the 50 states of the union? or do they want to be a separate country and if hay do do they want to be an exed by mexico because they're about to be anyway. that's where they're headed i don't know if that's what people of california want even if it's more ridiculous left leaning politicians seem to want. >> they may get to vote on them because they're trying to organize a statewide ballot initiative to say no end sanctuary state laws people may get to say on this. >> i hope they do. and if california does secede

from the union i want us to keep the valley and bread basket for the world and frankly we need it and they probably need to be free from excessive california regulation. >> you're just terrible huckabee you really are. [laughter] >> i do my best, stew, i do my best. >> very popular on this program i tell you that. governor huckabee thank you for joining us sir. appreciate it. >> always my pleasure. thanks, stew. then we open the market down about 200 on the dow. about 20 on the s&p. and about 60 on the nasdaq. we'll be down. about a half hour from now, the president's top economic guy larry kudlow joins us. he's talking jobs. he's talking tariffs. remember, we did move the market we spoke to him on wednesday. more varney after this.

if you're approaching 65, now's the time to get your ducks in a row. to learn about medicare, and the options you have. you see, medicare doesn't cover everything - only about 80% of your part b medical expenses. the rest is up to you. so if 65 is around the corner, think about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans,

they help cover some of what medicare doesn't pay. and could save you in out-of-pocket medical costs. so don't wait. call to request your free decision guide. and gather the information now to help you choose a plan later. these types of plans let you pick any doctor or hospital that takes medicare patients. and there's a range of plans to choose from, depending on you needs and your budget. so if you're turning 65 soon, call now and get started. because the time to think about tomorrow...is today. go long. stuart: here's the troop it was for stocks and that's going to into the market opening which will be a down day. see a down opening that's let's be clear about about that who knows how we'll close this market. i can tell you that we'll open down about 200 on the could you. there's a lot for investor to digest on all fronts. last hour, we received the march jobs report i'll call it

disappointed last evening president trump surprised us by saying, he's considering another 100 billion dollars worth of tariffs against china. jeff sikh seeger is with us this jobs report disappointing i see that as mildly plus for the market. do you? yeah. here's the irony of the market and here's how bad news is good news for the market. the market is -- has been panicking over this rate cut. this rate hike what this jobs report does most likely is gives the fed incentive to back off that fifth rate cut that may slow down the rate at which fed raises rates and for the stock market that's become addicted to low interest rates that is completely opposed to the fed raising interest rates to any extent of bad news is good news. >> so for the market to move higher, we would look to see progress on trade and move away with from the expression, trade

war. >> because keep in mind the back drop of this jobs report is the fact that the -- wage growth has been stagnant. now you're looking at the high livelihood of a trade war and the consumer will be the ultimate victim in the trade war that could affect the economy going forward. >> get ready everybody because we open this market in less than five minutes time. we will be down. we'll tell you how much we're down when we open -- you can follow it with us please. stay right there. how do you win at business? stay at laquinta. where we're changing with contemporary make-overs. then, use the ultimate power handshake, the upper hander with a double palm grab. who has the upper hand now? start winning today. book now at lq.com.

girl: to most, he's phil mickelson, pro golfer. to me, he's, well, dad. so when his joint pain from psoriatic arthritis got really bad, it scared me.

and what could that pain mean? joint pain could mean joint damage. enbrel helps relieve joint pain and helps stop further damage. enbrel may lower your ability to fight infections. serious, sometimes fatal events including infections, tuberculosis, lymphoma, other cancers, nervous system and blood disorders, and allergic reactions have occurred. tell your doctor if you've been some place where fungal infections are common, or if you're prone to infections, have cuts or sores, have had hepatitis b, have been treated for heart failure, or if you have persistent fever, bruising, bleeding, or paleness. don't start enbrel if you have an infection like the flu. girl: since enbrel, dad's back to being... dad. visit enbrel.com and use the joint damage simulator to see how your joint damage could be progressing. ask about enbrel. enbrel. fda approved for over 15 years.

stuart: you've heard expression volatility this has been a volatile week on mopgd, the dow swung in a 779 point range tuesday a 802 range, and yesterday thursday, 308. looks like we're going in for another day of shall we say volatility because in about 30 seconds we open this market and it will be down about 200 down 200 on the dow industrials. what's behind this? well late yesterday, i think it was about 6:45 p.m. eastern time, president trump suddenly escalates a trade fight with china. he said he would consider

another 100 billions worth of tariff on chinese products. that was a big development and had an immediate reaction on the stock market. futures as we call them were down 400 points at one. now we're down 200 and market is just open it is 9:30 eastern time it's friday there you go. we're off, running we're down. it's a sea of reds on the left-hand side of your screen that means most of the dow 30 stocks which have openedded are are down and dow industrial average is now down 235 points down hundred that is across the board decline -- show me the s&p 500 please. and yes it is. that is down about .9% at 23 point loss for the s&p. the nasdaq where's that this morning? it is down over 1% right hovering at 7,000 that means the loss across the board but concentrated on the technology

stocks. here's a one-week chart had of the dow. this shows you the roller coaster aspect of it up and down doesn't show you well but i can tell you it is a roller coaster week. how about big tech name sees them this friday morning one minute in. all of them down and substantially so. amazon is down 20, a is down nearly $2 alphabet six facebook down to 157. microsoft down 70 cents at 91. tesla what an extraordinary week it has had way down and then way up to about 300 becomes share and down 6 bucks as we speak. who is with me friday morning big day ashley webster elizabeth macdonald jeff and shaw. first you shaw you've been positive about the market you talked it up from are the election day all the way until january. then you turn cautious. you're still cautious? i think we have an audio problem -- awe or very cautious. >> friday gremlin.

>> we'll get him back i absolutely promise you. >> very cautious. stuart: i want to move to jobs report we've said earlier it was disappointing maybe it was weather had sympathetic to do with it 103,000 jobs -- >> you're right about the 15,000 construction jobs you know we're baskly -- cut. retailers shed 4400 jobs it was the snowstorms, the spring snowstorms and the like. so the jobless rate is lowest in 17 years six month average for job growth is 211,000 and job growth is double the pace of the leash force growth so some positive to be seen here. >> other side of the coin here there's a positive if the economy is slowing like this and it is weak job growth, and maybe the fed will not raise are interest rates as much as we thought they would raise interest rates. >> bad news is good news again. >> but bad news on the trades or pressure from trade is outweighing anything out of the jobs report and right now after what -- two and a half minutes we're 231

couple of other markets for you. the price of oil -- where is that this morning? it was it down yesterday it is unchanged today at 63. gold where's that when the market is selling off sharply where's the price of gold up $7, 1336 bitcoin where is that? show me please sir i don't have it on my screen bitcoin this morning is -- i promise you'll get there. at 6,586 dollars per coin. the tenure treasury yield would have been lower than this with weakness but 28 that's where we are. >> central bank not buying bonds that's why. >> whatever you say. okay. the fda warning twitter and facebook do more to crack down on illegal ownership i opioid sales. >> as if social networks need another black eye what this really means is you see this certain personality manifesting itself on the internet.

you see all of the process things you get from social media and then you see the darkside and then a lot of ways, the banning of things like krip are to currency people interacting drug purchases using cryptocurrency and government has to focus a tremendous amount of effort on making sure this doesn't happen. because when you combine the fact that -- now, these dealers have access to the entire universe of potential drug users, they need to make sure that the internet is not being used to kill people which is what the drug dealers do. >> well said young man. now, interesting story here. cereal makers are going back to sugary cereals, why? >> long live that's all i can say. aye-aye captain crunch. listen, they went to a more high protein, high fiber model as people became more health conscience they were going low fat greek yogurt and protein and

they said okay this is the trend turns out people didn't want it. taste is key. so they're going to double down frosted flakes and chocolate frosted flakes and kellogg back to sugar. >> keep the short it is important day. >> listen, i survived on lucky charm farce good part of my life. now -- look great. look like a lucky charm. fact is when you're healthy you're not going to cereal and especially high fiber cereal but going towards other things but cereal industry is smart to do this and it's a great -- a great -- >> sugar rush. may i point out that dow industrials are down 187 points not spepgding time on cereals fascinating as it may be. but coming become a bit down 250 now we're down 180 big deal. president trump targeting amazon this week several times actually. it says they're getting free ride from the postal service any attack washington post as amazon's chief lobbyist.

shaw have we got you back i don't imagine we do, nope not back yet. what's the end game with amazon and the president? >> amazon negotiated this deal with the post office and the post office is notorious for making bad dealings. this is about "the washington post" and the gripe that president trump has with jeff bezos and the fact that post office which is run by the government made a bad deal means they have to renegotiate the deal. there has no end game for this. the end game is a constant battle between jeff bezos and president trump. >> but shouldn't the president really be doing this? i thought were not about picking winners an losers on the market but gone after merk and time warner and host of -- >> ford. >> and i'm not going to defend the fact thatamazon does, in fact, poach a lot of kiewrls from other companies and has

done a lot of damage to brick and moore tar. but the reality of it is to make an antitrust case against amazon is a very, very tall order and the president should not be focusing so much attention on it. down and i expect political threat or. >> grand standing at the high fest for the lawmaker and more case of what zuckerberg does and handle hads himself in the hot seat. >> so could there be more damage to facebook stock? >> i think lawmakers are are going to say stop with the earnest claw, apologies and apologize four times since last year. get to the nuts and bolts how you make your money and people exposed on your website. wharchght will come l out of this facebook is and huge social companies have to clue how much is outs there and who is using it. >> what i got from -- what was said in his apology is that what mark said in his apology is not that privacy is a

primary concern. and if -- and it should be but if facebook does not make it privacy concern you have the government do it and if government does it that is problematic to facebook. >> we can look at tesla up and down week there talk of their collapse of the company of yes literally collapse of the company earlier this week. then it miraculously rebounded to the 300 dollar share is level. >> maybe it was on that report showed it was getting close to producing 2500 models 3 sedans. they also said they didn't need to raise anymore capital and exist on line of credit they have now. still a lot of doubters it shall >> which i'm one ever them. that -- i'm one of them they have about a billion dollars coming and the fact that -- elon again said they don't it immediate to borrow he did this last year if he does it consistently. they're going to need to go back to wall street. i would not believe that report.

>> the dow industrials are coming back a bit. not much but a bit. we were down 240. 250 now we're down 160. >> that cereal news. what do we got coming up for you don't forget more dts on data breach info stolen by bad guys. hundreds of thousands could be affected but we've heard this story before. and shortly -- larry kudlow is is back. we'll be back too.

each day our planet awakens with signs of opportunity. but with opportunity comes risk. and to manage this risk, the world turns to cme group. we help farmers lock in future prices, banks manage interest rate changes and airlines hedge fuel costs. all so they can manage their risks and move forward. it's simply a matter of following the signs. they all lead here. cme group - how the world advances. ♪ with expedia you could book a flight, hotel, car and activity all in one place.

♪ stuart: i'm not going to lay this on too thick but we're coming back a little bit. we're down 140 we were down 240 earlier. now, delta airlines another breach. nicole come on in this is the umpteenth breech give me the

numbers. >> for delta we're talking about hundred was thousands of customers that may have had their credit card information compromised they can't be for sure who or how many. they are looking into this. but this is all through a vender that works with not only delta but also with sears and k-mart so that's what we're looking at with the authority. they've done the usual. they're, you know, paying off some of the unauthorized transactions if any they've set up a website to help you out they're contacting customers but this is the ongoing malware that is hitting so many companies. forget it dawn are days of the horse and carriage where you pay with coins. i mean. i think we're all susceptible to this even we try to keep our privacy we really are -- putting ourselveses out to be exposed. >> nicole thank you very much indeed we'll see you soon. amazon getting into the -- person to person payments business. ash, i know you know about this but let me see if e i got this

right i've got alexa sitting there i say pay ashley webster 20 bucks a ten does it. >> that's exactly what that's what they want. >> borrow 20 bucks from -- >> yes. good luck. also brings up point if you have your child saying -- buy me a whatever, xbox 2 or whatever. it's really important to amazon apparently jeff gave a mandate to his employees to push into the financial services industry. this is one where you're doing it expanding into banking and finance in general. which is pretty interesting it's a huge area. and if the question being is that alexa needs a much more bank info from you that raises all sorts of questions you really want that out there. j look, i think this computerized assistance is bigger a development as the smart phone. >> police activated internet is -- >> that okay that we're going down that road. >> we are. like it --

like it or not well with said. all right check the dow 30 we're down 170 points in early going, and next -- round two with with larry kudlow last time he was on the show he turned markets affect ad markets we moved market when is he said we shouldn't worry about a trade war. what will he say to us today? stay is right there and find out.

♪ there's nothing more important than your health. so if you're on medicare or will be soon, you may want more than parts a and b here's why. medicare only covers about 80% of your part b medical expenses. the rest is up to you. you might want to consider an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like any medicare supplement insurance plan, these help pick up some of what medicare doesn't pay. and, these plans let you choose any doctor or hospital that accepts medicare patients. you could stay with the doctor or specialist you trust... or go with someone new. you're not stuck in a network... because there aren't any. so don't wait. call now to request your free decision guide

and find the aarp medicare supplement plan that works for you. there's a range to choose from, depending on your needs and your budget. rates are competitive. and they're the only plans of their kind endorsed by aarp. like any of these types of plans, they let you apply whenever you want. there's no enrollment window... no waiting to apply. so call now. remember, medicare supplement plans help cover some of what medicare doesn't pay. you'll be able to choose any doctor or hospital that accepts medicare patients. whether you're on medicare now or turning 65 soon, it's a good time to get your ducks in a row. duck: quack! call to request your free decision guide now. because the time to think about tomorrow is today.

>> when we started the market action this morning at 9:30 that would be 18 minutes ago, the market wect straight down. we're off 250 points. couple of negatives out there. new -- and new tariffs suggested against china, and all of the disappointing jobs reports. so now we're down 127 points so dare i say it, the market has come back just a little. and let me dig into that jobs report for a second only 103 thousand jobs report ared that's a low number frankly and 158,000 people actually dropped out of the work force. we're used to many thousands of people coming into the work force so that was a reverse of that trend. there's a suspicion that maybe in the first quarter this have year this economy is slowing a little compareed to the near 3% pace that we kept up for most of last year.

that's the back drop to the stock market this morning. and as of right now, we're down 129 points. we haven't seen much change in the price of gold or the price of oil. or interest rates, they're hanging right there around 2.8% on the tenure treasury those are are stable and billionth coin where is that? down about -- 6800. e yeah. that the days of the wild swings that gone i think. >> bring whistle ball twist become on. [laughter] >> where are they now that's right so right now we're down 112 points larry kudlow having a microphone put on is in our studios there, and -- he is the president's top economics advisor. and as he's about to speak on this program, i see the market coming back. >> yeah. yeah. this is what happened when larry was with us earlier this week. he was on at 150bg he started to speak when dow was down 400. the time he done it was done 300

so he moved market by about 100 points. and just in advance of him appearing right now, we've got the market coming back significantly. now we're down only 96. 93, 91 -- and he -- if i keep talking, and larry keeps getting my on we might get this to break even we have him larry are kudlow i believe you're fuelly micked up economic director sir welcome to the program. good to see ya. >> we've been around long enough to know that nobody really moves the market. i love you're staying with buy you dinner in new york no problem. but you know, there's -- there's no wonder woman wonder man so i'm just trying to get some analysis and trying to get out some fact about the president's -- announcements yesterday. trchg look the president announcements yesterday it seeminged to a lot of people this this was aggressive escalation in the tariff threat. and that it does actually bring us closer to a trade war.

what's your response? >> i don't buy it i don't know how you can get there. stuart just for a second can i -- i don't have a tell prompghter here, obviously. here's what the president said i want folks to listen to this. or better yet -- goen online to get it. he said and i quote -- i have not struck that's investor highser to or consider to consider whether 100 billion dollars of additional staffs would be appropriate would be appropriate -- under section 301 and if so to identify them and ambassador statement last evening underscores is that and says -- this will be a longer process. they will consider, they will study the 301 measures they're particularly interested in technology transfers and frankly technology ceiling what china has done that damages our economy. and after looking at that, they may make a proposal on tariffs or not -- but if they do, they will be

open for public comment that will go on for several months during which time stew varney discussions between the two countries may well be held. there are always talks going on. always talks but discussions may well be held. >> so you're walking away from the whole idea that this is a trade were and not the trade war. it is not a trade war tough it negotiating is that what it is? tough negotiating? >> you know. i think -- i like to think of this as a process. and we haven't had this kind of foundation on trade in many, many years. we have not had a president with backbone stand up to chinese and say you know you're breaking every law in the books so -- to refresh to look at this again not dodging this but saying this process it may include tariffs at the end of the day i say hay. it may also not. it may be solved by negotiation. i can't promise that or even forecast that. but the united states is simply putting these ideas out and

they're saying look we have to have a change and by the way, did you see yesterday? a whole bunch of countried backed usa offer ad to not coconspirator but friend of the court. i call it a trade willing -- a trade coalition per the willing who want to stop china lawmakers. i think that's great. >> are we going to sending a senior official like the treasury secretary and mnuchin or yourself to beijing to not wrap things up but to enhance these negotiations? face-to-face -- are we doing this kind of high-level face-to-face talks? >> well what i can say, stu is there are ongoing talks. i don't to name names and put anyone on the spot they'll be back and forth u.s. and beijing and so forth. so i'll just leave it there. constant communication and let

me add one more point. i -- president said to me yesterdays we're on the plane coming you know going back from west virginia. we have a long talk about this he said look, he said, i have a good relationship with president shi. shi has a good relationship with me. he said mr. trump, respects president xi negotiating powers and knowledge base and willingness to work. with the united states -- this is mr. trump told me put that out i'm putting out. now that's a positive. better to talk than not talk, okay. this is not about trade war. this is ongoing discussion but we will see. because frankly, u.s. government was really quite disappointed at china's response to our initial ideas and complaints. really we were very disappointed hopefully that will change. >> well larry what is the primary octave here is it to get china to stop stealing our

intellectual property, obviously, that's a goal you've been trying for this many, many years is that the primary octave or is it to get the trade surplus that china has with us and our deficit that we have with them. is it to get it down 100 billion l would you be happy if that happened? >> well, look, yes. look, the question is like they go hand in if stu if china lowers barriers and if china opens markets if china permits investment afnght. if chinass to stealing our key technology ideas then we'll have more trade between the two countries and we will have more growth. this is all about groat for the united states and the rest of the world. growth director -- >> is threat of tariffs is that the way to get to where you want to go? >> i think it has to be part of the process, doesn't it? it has to be. ultimately will go into the world trade organization, with i guess.

mr. light houser submit aside brief there and being joined by other countries to japan, europe and so forth. but i think it would be great. we didn't have to worry about tariffs and -- you know, that sort of thing. so let the chinese come to us. we will lower barriers, we will open markets, and we will stop stealing your technology. this is growth. stu, here look -- technology is a key to american growth. technology is the key to american innovation. we cannot permit another country, china is not third world country but a first world country. we cannot permit them to damage our economy by taking we our valuable technology. that has to stop. >> are you comfortable in this white house? you've been there about a week that's it. you're known as a free trade guy, i know that you railed against the idea of tariffs way back when two weeks ago, for example. now you're in the the middle of it. you're apartment of administration that it threatening tariffs are you

comfortable? >> look, i am because -- every free trader i know, really, every free trader i know in either political party, they know as the rest are the world knows that china refuses to play by the rules. or the laws -- and you can't have free trade unless you get through these illegal actions of china. and it has been going on for more than 20 years look president trump, believes himself to be a free trader. but he -- he realizes i agree with this. every free -- we will get to free trade as long as we can have china as a law-abiding citizen in the international world trading system. that's the key. and then we will go to free trade and then we will go to more tax reform and deregulation and grow the economy by four or 5%. dges real fast larry, elbow the the -- i believe the president news broke around 6:45 eastern time yesterday afternoon between then and now, have you heard from the

europeans or the japanese that yes, they're onboard with this escalation of the tariff threat? >> i can't personally speak for europe. but i've read all of the news accounts about japan. and japan is -- they're walking with us. they're supporting us on this. and i believe stu, just give us another 24, 48 hours, you're going to see a trade coalition of the willing to change and get china back into the world by abiding by the laws. rule law economic and trade as it is elsewhere in society. >> larry kudlow always a pleasure and thank you for being here we appreciate you larry. >> thanks, appreciate it. >> all right there will be i promise you -- [laughter] a more varney after this.

stuart: what a contrast. we are told the waivers coming

but despite a disappointing jobs report for march we are seeing the return of prosperity. why are democrats doing well, the republicans and donald trump have delivered steady growth and rising wages is the media leans left, eager to report anything negative for the president but the news on democrat success comes from republicans. marsha blackburn, republican running for senate seat is behind a democrat opponent by double digits. that is in tennessee. republican governor scott walker warns the gop to shape up or else. in oklahoma same story, watch out republicans, the gop is nervous. the central issue is going against the democrats, for the republicans, that is the growing economy and return of prosperity. we have been reporting on what

amounts to full employment. a record number of jobs available, a 17 year low, wages rising, bonuses for millions and the list goes on. the first taste of prosperity in years and should be an election winner. what has gone wrong? the media, everything you see and read is thinly disguised trump hatreds, that is a challenge for republicans. it will never change. identity politics. even though hillary lost her divisive approach is still with us. black folks, hispanics, women are encouraged to separate out, encourage narrow self-interest, not the larger goal of prosperity for all and there's another factor, the president's handling of the presidency. a lot of people don't like the trash talk. rising wages,

get out and sell it. democrats came up with the winning election slogan. it's the economy, stupid. the republicans and the president should be using that now. the second hour of "varney and company" is about to begin. the dow is off its lows. larry kudlow did not move the markets for us, we are down 24,300. big tech names, got to check them and all of them are down for amazon, microsoft, apple, alphabet and facebook. caterpillar and boeing it drags on the dow because major

exporters would be hit in the rising trade environment and they are hurting the dow. the price of oil $63 a barrel. stocks falling on fears of trade tension. jason rothman advises the president. have i got this right? the market is down because of trade tension and jobs report is a minor plus. what do you say? >> i am going to take the contrarian view. i have been checking the dow this morning. it is on a bullish note. it is a 200 points from the low. 103,000 jobs report in the prior fid regime and prior economic regime would be bullish. i think the rally is overdone even though we are down 103,000 jobs in this rising rate environment. it is a bearish sign.

stuart: a little overdone. i got it. you are not looking for a big selloff, a big rally, steady as she goes. >> the market is on shaky ground. the many points on both sides of the camp that i don't see a 5% correction or a 5% rally, the market has so much confusion as to the street for phenomena and that i think we are stuck in a tight range so investors don't have much to worry about. we are not going anywhere. stuart: i know you are a fan of facebook and the stock. mark zuckerberg will testify on behalf of the data harvesting scandal. i don't know what his performance is going to be like but he is not great on tv. he is not ronald reagan on tv.

he is mark zuckerberg, a little nervous. are you going to be a facebook supporter regardless of zuckerberg's performance? >> they clearly have an incredible business model if done correctly. the cat coming out of the bag causing even cheryl bamberg to say they are pausing and it will take years to fix this. my facebook bullishness over the years is a little less. i believe the rallies or upside is severely. i don't see facebook going to new highs. stuart: an interesting expression. put a lid on it in other words. thanks for joining us. is it lidoh or lidoh? with a british accent you can get away with anything. back to my take, editorial, top

of the outcome of the wave, democrat wave in november we are told despite return to prosperity. i have a full for you, middle tennessee state university, former governor has a 10 point lead over marsha blackburn, a friend of this program. this is tennessee. ashley: he was governor when i was there, very popular. stuart: look who is with us. pete exist, weekend cohost. >> not as popular. stuart: how do you account for this? despite this prosperity? >> all politics is local. a popular governor served 2003-2011, universal name it, tennessee is a center-right state and marsha blackburn a more conservative trump supporter, 70% undecided at this point.

there is a lot yet to be had. the contrast needs to be drawn. does tennessee want to be part of the resistance which democrat governors get pulled into because their base is moving further left? if marsha blackburn can draw the contrast do you want law and order and borders or lawlessness and identity politics? give it time. these things shake out. this is one of those polls that has been wrong time and again. look at the resin used in polls that had trump over 50%, reflecting reality and sentiment on the grounds of these polls do not. stuart: you are a military guy, this is a difficult story, more than a dozen military service people killed in aviation accident in the last three weeks. the latest incident, and air force thunderbird pilot was killed, crashed at nellis air force base.

that is a significant death rate in a short time. what is going on? >> a disturbing trend that comes with less flight hours, less maintenance, less training, older equipment you have to take from one aircraft to make another aircraft viable, less training, less up-to-date technology, less maintenance and when you edit together it leads to more incidents. sequestration was devastating for the readiness of the military, readiness of equipment and training. if you don't have those things you create uncertainty and opportunity for mistakes. stuart: is there enough new money from donald trump, $706 billion. >> it gets us close, if sequestration hadn't happened, we are not quite there. we dug the hole deeper.

the trend line, doesn't mean your equipment gets better and more well-trained and battalion suddenly larger. you have to invest in that equipment and 10 or 15 years to come on line. the president is continuing to fund it not seeing things like this the best military on the planet. that is the fault of political leaders in washington who did not the american military first. a big hour on "varney and company". crown prince of saudi arabia western i think the kingdom. he is embracing hollywood. we are on it. atty. gen. going after facebook and its handling of data. one of them zeroing in on google. he is running for the senate

and supported by donald trump. 2-time super bowl champ leonard marshall giving his brain for cte research. he will be here with me. you are watching the second hour of "varney and company".

stuart: we opened down 250 and we are down 160, 24,003. the price of gold is up $7 and 1335. the price of the coin was down, and is still down. saudi arabia's crown prince is trying to western eyes his kingdom. he is embracing hollywood, allowing movies to play in saudi arabia. black panther is the first movie screens in 35 years. walid phares joins us now. long time no see. hope you are well. i have to ask you, i have never

seen such a far-flung transformation of any muslim society ever before, probably since atatürk. miami right grounds? >> you are especially with regard to saudi arabia. it is one of the most important symbolic countries in the muslim world. what we see right now with the crown prince is not an overnight pr operation, with hollywood, not to please the us administration of congress. it is a serious deep change, monitoring this the last two years, he has achieved two things, very important, one is to stop religious police from being effective inside the kingdom which was the major issue with the international community and allowing women so many additional rights. we are not at the end of the process and the statements about the peace process and it

ran, in saudi arabia. stuart: you approve of it i'm sure. >> any direction in liberalizing and democratizing is absolutely in the right direction. there is time to give that the final situation. stuart: donald trump told the saudis to fork over 4 billion us soldiers to keep 2000 troops in syria. >> sometimes unofficial cases. the discussions should not be on twitter. it demoralizes friends in the region by optics, and the previous administration would you go against it ran, this is

kept in diplomatic encounters but the saudi's and others in the gulf and elsewhere were ready to be part of the multinational force, and the only point is what is the plan. stuart: we don't have a complete realignment of powers in the middle east. it seems to me america, israel and saudi arabia in a loose coalition against it ran. >> it became reality. addressing 50 arab and muslim leaders, that is a benchmark change. how do you translate that on the ground including what we are going to do in syria. the nato like arab force, the

direction is good in a right way but we need practical steps. stuart: good to have you back on the show and we would like to see you again. fears of a trade war or multiplying trade tension rattling the farming industry. jeff locke is at a pig farm. however the threat of tariffs affecting the heartland? find out in a moment. ♪

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 through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade

weli can tell you about...re. streaming the most free tv shows and movies on the go. yeah, and... xfinity internet. it's so fast! and you can save by... by getting up to 5 mobile lines included.

whoa, you're good. i'm just getting started. ♪ simple. easy. awesome. come see how you could save $400 or more a year with xfinity mobile. plus ask how to keep your current phone. visit your local xfinity store today. stuart: we are going straight

to jeff locke who has a hog farm. the story as you know because you are about to report it, what impact on farm country from these proposed tariffs are going there? >> larry kudlow can say what he wanted there is no more trade war going on, there is already a trade war when steel and aluminum tariffs got slapped on, the chinese put tariffs on among other things pork. that already happened. and what it has done at the cme. it dropped off the table. that kind of a loss you are incurring you can say there is no trade war but someone got shot. >> it is concerning. we produced a number of hogs,

25% of our meat is exported. >> reporter: the president talks about jobs? >> 550,000 jobs. >> reporter: growers? >> exporters. >> reporter: he doesn't want - he still hopes there is a negotiated settlement that at all works out. they always say, heads prevail. i'm getting less and less optimistic about a reasoned outcome. you buy that? >> correia and the us.

and optimistic things can move forward here and cooler heads prevail. >> reporter: when you talk to these guys in private, talked a lot, they are very concerned and worried after the news that came overnight. this is jobs right here. stuart: we hear you, jeff locke, thanks so much. coming up homeland security says there has been a big spike in the number of illegals crossing the border as donald trump prepares the national board, what a story and we are on it. ♪

stuart: she was just 17 if you know what i mean. the way she looks was way beyond compare. how could i dance with another when i saw her standing there? we are done 190 points and falling. we are up 24,300. the tech names, all of them lower before. all of them still lower. amazon, microsoft, apple, that, facebook down. look at when? they expressed interest in buying it. it is down $.50. facebook clearly under fire for the way it mishandled user data. missouri's atty. gen. i know

you signed that letter. you are investigating google. what did google do wrong? >> i want to know what google is collecting, what it is doing with that information, is it using its market power to box out competitors from the market, taking data from competitors and using it for its own advantage, engaging antitrust violations, i want to get the facts and get to the bottom of what is going on. stuart: you are just asking questions, looking for answers but in a roundabout way are you going after them for antitrust or do you want a new form of regulation what they can do with the information or who they can sell it to? where are you going with this? >> missouri's law protect

against antitrust violations and consumer privacy and use of confidential information. our subpoenas issued under that authority, is google engaging in antitrust violation by using its market power and market platform to privilege its own products to the detriment of others but i also want to know as it relates to facebook what these companies are doing with the private personal information they collect from consumers and do they know what these companies are doing with it? stuart: you are questioning the whole business model of social networks, great service in return for them getting information and selling it. >> consumers consented to this data and whether they consented to it being released. wanting to gather information to sell it or make it available if consumers are aware and consented. my question have consumers

consented, have they signed off, given permission. stuart: your inventory, running for the senate seat held by claire mccaskill. she assumed to be vulnerable because missouri is trump country, you're a trump backer. what is your main line of attack against sen. mccaskill? >> he is part of the washington establishment that has failed my state for decades. she has been in politics for a lifetime. in missouri we have healthcare costs that are out of control, wages that are flat, education so expensive you can't pay for it with a second mortgage, she has been there forever, and hasn't done anything to make anything better for families and workers, time for change. stuart: early poll suggests what? >> the missourians want to change in washington, they are fed up with the status quo in washington dc and they should

be. time to make a change. stuart: i will ask what might sound like a flippant question, and don't know how to pronounce your estate absent name, is it missouri or missouri? >> users choice which i say missouri. i'm from rural missouri, i'm sticking with it. thank you for joining us, mr. atty. gen.. homeland security says illegal border crossings surged, 50,000 arrested as they tried to cross the southern border in one month up 37% compared to february. lawrence jones, conservative

commentator joins us now. that is a whopping great big surge. why now? >> there are multiple factors. a lot of these illegals trying to find loopholes in the system. they found across the board with their families. it has to do with catch and release. and to get something done. and we don't want amnesty. i am willing to compromise. 1.8 million citizenship if you give me border security. stuart: the president plans to send 2000 files to 4000, they will not be arresting people,

said purely support personnel. are you disappointed or would you rather see armed troops? >> we have to do this in a legal way, the president understands the loss but we don't need people with guns lose our border agents need backup from a technology standpoint attract these guys and the rest them. we don't need people with guns to get this problem solved. i was talking to them in the green room. they need the assistance of our government that sometimes has more tools they are able to use instead of using just manpower. stuart: what is the feeling in texas about the illegal immigration question? there is a large hispanic population in texas, it is a gung ho dynamic state, what is the general sense where it should be going? >> we love illegal immigration in the great state of texas because that is where it starts. we have a nice business climate

in the great state of texas but at both meal of the day we went to done the legal way. we look at cities that have been hit hard by this, this is a president, this is a state that will be welcoming of immigrants but at the same time we have to do it the right way. stuart: lawrence jones, thanks for joining us, see you again soon. donald trump just tweeted about china. china, which is a great economic power is considered a developing nation in the world trade organization. they get tremendous perks and advantages especially over the us. does anybody think this is fair? we were badly represented. the wto is unfair to was. as the president was tweeting that the stock market continued to fall. it is down some more since the tweet was made public. we are down 250, 260 points.

stuart: he said china is a first world country that needs to play by first world rules. liz: it is not free-trade of china has been breaking rules of evidence to join the wto in 2001 but this is uncertainty on steroids when you have the number one and 2 economies going at it. it is in the planning stages, 6 months out, being talked about. that is a great number, the size of it. >> i like to see the president articulating his case. that was a thoughtful tweet, it is accurate across the board. he is making his case. >> republicans don't like it, you're using the wrong tools to stop intellectual property

theft. stuart: suggesting another tool that would work, we will take it. coming up, members of the freedom caucus airing their grievances in a documentary. the documentary is called the swamp. it sounds like they are going after republican leadership. a freedom caucus members with us in our next our. are quite a week for tesla. the company says stepping up model 3 production, they might not need to raise any more money. is tesla out of the woods? jean munster will answer the question next. ♪

stuart: the president's chief economist played down the idea of a trade war with china despite the threat of new tariffs. >> we haven't had this kind of focus on trade in many years with the backbone to stand up and say you are breaking every law in the books. to look at this again i am not watching this but this process may include tariffs at the end

of the day. it may also be solved by negotiation. the united states is putting these ideas out and saying we got to have a change.

>> the market is down

significantly. we have this tweet we received from the president, china, a great economic power is considered a developing nation with the wto. they therefore get tremendous perks and advantages especially over the us. does anybody think this is fair? we were badly represented. the wto is unfair to us. the president is stating a hard-line position. he doesn't think china should be regarded, getting advantages because -- ashley: first world country, major economy. it is a hard-line position in the market is selling off on that and other things. elon musk reassured

shareholders the company is able to keep production up, increase 2000 products in the last week of march. jean munster is with us. he also, in capital markets. are you going to tell me they are out of the woods? >> not out of the woods yet and i want to remind you this tesla story will be a wild ride. the stock was down 35%, rebounded 25% in the past few days and that will continue. tesla did take two important steps forward and i want to put detail on them. the production number of model 3 doubled and they're producing 2000 per week and they want to get to 10,000 and that number

will double again, consider them 40% through the woods. and the cash piece that they will run out of cash and that won't be the case at least in 2018. stuart: they won't run out of cash in 2018, in the long term they will emerge as a brilliant technology battery company? >> i do. it is back to the mission statement to accelerate renewable energy. the reason i mentioned an admission statement, that some of the massive tech wave we will have in the next decade around renewable energy, batteries, electrification of cars, tesla plays in all four of those. stuart: apple's tim cook hired

apple's chief of search, army official intelligence, hide them away from google, brought him to apple. he is -- not tim cook but the when he brought over is a specialist in artificial intelligence. what is the significance of apple's higher? >> they rang the bill with this. his name is john andrea and he was the search and ai head it google. stuart: look at that. when you do live television you have to be very careful, be prepared to jump right in. you can't be swigging on your coffee or eating a doughnut on the side but wait to see if jean munster reappears. he is there? he is back there. significance please of apple's hiring of google's chief of ai? >> this is a huge week, they

rang the bell, john john andrea not only ran search at google but head ai. there is an arms race going on for ai technology. the irony around artificial intelligence is you need human intelligence to build it. having someone like john john andrea is a recruiting to to apple to win this talent. and talk about apple has been criticized, not enough and they jumpstarted it this week. >> do you think apple would have to give this man $100 million to come over? >> probably not. a few million dollars, probably has 10 or $20 million in stock options. stuart: you guys in technology,

that is nothing. jean munster is blushing. four states are considering laws that prevent kids from playing tackle football, what would leonard marshall say about that. he is bringing cte research, he is with me next. ♪

retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. this wi-fi is fast. i know! i know! i know! i know! when did brian move back in? brian's back? he doesn't get my room. he's only going to be here for like a week.

like a month, tops. oh boy. wi-fi fast enough for the whole family is simple, easy, awesome. in many cultures, young men would stay with their families until their 40's.

stuart: new tweet from donald trump. do you believe the fake news media is pushing hard on a story that i'm going to replace jeff sessions with epa chief scott pruitt who is doing a great job but is totally under siege, do people really believe this stuff? so much of the media is dishonest and corrupt. that came in about scott pruitt and jeff sessions. california, illinois, maryland,

under the age of 12, wait before they can play tackle football. it decreases the risk of brain damage. our next guest is donating his brain to cte research, his name is leonard marshall, 2-time super bowl champ. welcome back to the program. these four states you got to delay before you get into tackle football. doesn't that hurt football in the long run, keeps youngsters out of the pipeline. >> you hope that it doesn't. the idea we are pushing for concussion legacy foundation, to have kids play between age 8, and 14 but to play noncontact football, you need to wear a padded helmet and you play two hands touch, put a kid at risk of having a severe head injury. stuart: that is a good thing but it could be bad for the sport itself in the long run. >> you hope not. stuart: look what happened to

baseball. people start playing baseball the way they used to play baseball, the sport among adults is in decline. >> an american kid stopped playing baseball, you go to puerto rico, some of these other south american countries, they love baseball. the driver driving me in, dominican athletes that played baseball versus football, in america, this is our sport. we developed this game in this country, played it is kids and to do what i did as long as i did to play kids game the king's ransom i'm a blessed man. stuart: tell me about this drug derived from marijuana which could help. >> it is called cdd. what happens is say this is a

marijuana plant. the thc side and the feel-good side, we strike the feel-good side and turn it into 40 different components, we make dummies, we make capsules, we make oil, it is utilized by players all across the country for recreational and professional, the one thing i like is we have been able to start talking to nfl players. stuart: what does it do? >> it is an anti-inflammatory, it has been around the thousand years and it is derived from the him plant. we when it doesn't make you loopy. >> it doesn't have thc. we utilize the feel-good side. we when you are good man and you better come back. check the backboard down 300 points. the president tweeting about trade again.

we are back after this. : . : .

♪ with expedia you could book a flight, hotel, car and activity all in one place. ♪

what a jampacked week. jampacked with news and that is an understatement. of course you could say that about any week of the trump presidency but this has been a classic all about, trump. california feels and talks like an independent state. a million illegals given driver's licenses and it's easier for them to vote illegally. this weekend internal revote against situated laws started to bubble. trade, we hit china, china hits us and we hit back harder and they say they will hi

fight to the end. all that in about 72 hours. the market went wild. stocks up and down in huge swings. they are down at the moment. the president bashes amazon several times. the stock takes a tumble. faced challenged on the information they collect and how they use it. mark zuckerberg doesn't come across well in interviews and he scheduled for capitol hill next week. to cap off the week, remarkable news on the economy, for employment, more jobs and rising wages and prosperity like we haven't seen in years. i repeat, what a week and we are very happy you have chosen to follow it with us. the rest of the media wallows in scandal. the third hour of "varney and company" is about to begin. ♪ ♪

♪ >> technology is the key to american growth. we cannot permit another country. china is not a third world country. it's the first world country and they need to play by first world rules. we cannot permit them to damage our economy by taking away our valuable technology. >> i was larry. reporter: here on our program on trade negotiations. after that the president tweeted and reinforced his argument. we are down almost 400 points on the dow industrial. 29 of the 30 dow stocks in the red. they are down. i want to bring in fox news contributor jonathan. trade is the reason for this selloff, correct. >> it is. it started last night after

the president talked about potential trade tariffs. that's what it is, every day traders have to have another screen up and that is the president's tweets. i'll tell you, if you opposed the stimulus under obama, you really should oppose these trump under tweet. it's about this involvement in the economy and whether it's good or bad you can't deny it's greeting havoc because you're not investing on fundamentals. your investing on the whim of a twitter feed. >> but that's just taking the stuff as just a twitter war or statements, i think it's going to far. we are not in a trade war. tariffs have been threatened and the president said look, we got a good case and the only way to stop china from stealing our stuff is to go this tariff rout route. if you can come up, if you can come up with a better solution to this problem, you know you gotta go with the president, having you.

>> while there's a very easy solution to the problem, the same way a lot a movie company salted in the 80s and 90s, it's an issue of property rights. items that are stolen and imparted should be banned from coming into the country but that's not what tariffs are. the solution is that trade is somehow bad. that's the justification of the president. you're waiting every day to see how i am best for the long term. how can you look three or five years out when you don't know what elements of your industry might be further taxed and let's not kid ourselves. we talk about retaliating on china with tariffs, those are taxes on americans. china doesn't pay those taxes americans pay the taxes. stewart you talk to a farmer in your earlier segment who said we are already in a trade war. he is standing in hogs and feces and to trust him and he knows what he's talking about.

>> so the current selloff is the result of the trade friction with china. that's it. >> i think you can say a lot more than that. you can certainly say that government intervention creates instability. it reduces liquidity because you're starting to now invest not at all on fundamental issues but as i said on a whim. we all should know the long-term impact stewart, of tariffs. we know it from ronald reagan, we know it from george bush, we know it from the wealth of nations but we know it from, this isn't a question. that's why i think the economy is really fundamentally changing because you are seeing people invest for political reasons, not for economic reasons. that is a negative long-term. >> we hear you, we take it and thank you for joining us. look at that big board. we are down 388. basically, this market is down one and a half percent.

i want to get to the jobs report that came out earlier this morning. it shows employers added only 100 30,000 jobs last month. if i'm not mistaken it was a hundred 58000 who walked away from the labor force. i haven't seen on a long time. paul conway is with us former labor department chief of staff. i'm calling this a disappointing report but i don't how much you can lay on the weather which was bad in march, but what say you? >> i think it is about report. there are some studies that show that since 2010 in the first quarter two out of three of the reports will be positive and there will be one operation. hopefully that aberration is this month and not last month. if you look at the trend we are heading in the right direction, but the folks coming away from the labor force, you really want to see that, we will see if it's whether or not month and if there's any adjustments made to this month. >> could you extrapolate for just a second and say look, the first quarter of this year is not going to be 3% growth. >> yes, i think you can say it

won't be 3% growth but i think the important thing is to take a look at how were doing over 12 months over 24 months. i know our numbers, people don't tend to look at that type of thing, but i think on this one you have to say no, these are not the numbers we want, we didn't create the number of jobs in this month, the new entries to the labor force itself which is usually around 150 or 175,000. >> paul, i'm in a change subject entirely, but something i think is very positive. cbs, they are going to start treating kidney patients for kidney failure with dialysis at home. i bring this up with you because you've received a kidney transplant. our audience doesn't know it but you did and you are the president of the american association of a kidney page patients. i take it this is a wonderful move. >> it's fantastic for the word disruption is ounce around a

lot. you have all these other types of things that are disruptive but this is something that for kidney care in the united states it's a 98 billion-dollar healthcare problem. for kidney patients in particular, more patients are looking for treatments that match their aspirations meaning they want to be able to stay employed part-time for work full-time. home treatment actually allows you too flexibility to do that. for cbs health to come into the marketplace, dialysis care has done almost by two major companies. they do a good job, the folks do great but this shakes up the dynamic and what it does is you have cbs coming in and they can intervene earlier in someone's healthcare and they can say you're inclined to kidney failure, here's a series of intervention including transplant and if you are going on dialysis, we want to be your partner and do dialysis at home.

i think it's a very significant thing but it will disrupt the market. it will change the behavior of the other two companies that dominate the space because they will have to change the legislation a lot before and not to be more responsive to it and to patients. it is significant. >> paul, we are glad your well they were glad we could bring some good news into an otherwise difficult situation. >> of 5.3 earthquake rattled southern california centered in the pacific ocean. no reports of damage or injuries but we like to bring it to you. >> that was a web shot of the eagle on the channel islands. they have 60 bald eagles there. that mother took off and now it's back. >> we are going to look at individual stocks starting with tesla.

they are way down in their way back up to $300. share, up five bucks at the moment. pick one, no report would be complete without this. $6602. coin. price of gold not moving much, a little bit higher, eight dollars up. getting back to trade-in tariffs, states like iowa could be hit if china implements tariffs on our farm exports going over there. we're going to talk to iowa republican about this and he's not happy. i don't think he's happy. we will certainly find out. president trump says he wants too, maybe 4000 national guard troops at the border to help support the effort there. they will not make arrests or carry guns but this comes just as we are learning about a surge in illegal border crossings. would you believe, up two 100% from a year ago. now look at this.

the national anthem for the minnesota twins, and eagle continually tried to land on the pitcher james paxton. the bird is called the challenger. finally, his handler came out and helped spread the word. of course we are watching your money as the third hour of "varney and company" rolls on loco ♪ ♪ ♪ ♪ ♪

this came as a surprise. illegal border crossings are surging. last month agents nabbed more than 50000 people trying to get into the country illegally at the southern border. that's a 37% increase from february and a whopping two 100% increase from march of last year. president trump says he wants to - 4000 national guard troops at the border.

those would be support roles only. they would not make arrests. this doesn't sound like a large number, to - 4000 on a multi- thousand mile border. do think it's enough? is an effective. >> i think it's effective. here's what were talking about. it's an investment if it turns out that levels are insufficient, the president has the ability to calibrate upward upwards. when you are looking at the cost associated with this, it is a smarter idea to go in with the recommended amount that you recognize as sustainable. as you know, the president has indicated this may be a long-term commitment. if you went in with triple that size, you would be talking about a much larger footprint and a significant cost associated as well. >> the governors of texas, new mexico and arizona said okay, we like the plan, go for it,

but california has been very reticent about the spread they haven't really approved of it that much. to think president trump is having a go at california, forcing their hand, forcing them to say we just wanted to come pouring in. >> i think the democrats in california, and the democrats in washington really need to be paying attention on this issue. we had a federal government shutdown over the issue of immigration and overwhelmingly, democrats admitted they were receiving a great amount of negative pressure. this was one of the first shutdowns where it was democrats who ended up feeling the pain over having done this. the fight over protecting our borders is likely to create, in november, a counter cyclical force that can be very, very damaging to the hopes and aspirations of democrats, especially when they have been talking about the big blue wave.

>> to think we will get that wall built, and if so, do you think we will get mexico to pay for it? >> here's the thing, a lot of the issues associated with illegal and unlawful immigration, democrats have been very thrilled to have the issue, and in their mind, that has been good for them politically. in this case, it looks like the issue works for the president and the republican party. the question is going to be, how badly will it damage them, i remember after 2001, we had a big fight over the creation of the department of homeland security. there were some senior democrats running for reelection that wanted to support unionization of this new entity. those democrats found a very unpleasant outcome in the first off year election they

lost ground. if the issue stays the way it is, it might be prudent for democrats to rush up and say let's take this off the table. after the debacle that will occur in 2018 if they are not careful, they are looking for another setback in 2020. yes, i think it's likely there will be bipartisan consensus that we better go forward with getting this wall because as long as the issue remains, it's going to be a lot harder for democrats. >> this is fascinating stuff. you have such a logical forward-looking brain. you've got to come back on the show. we have missed you. where have you been. ) we think you're alright and we want you back. thank you very much. >> about this one. cereal makers are going back to sugar and healtheast cereals don't sell like they used too. lucky charms, count dracula,

with the other one, frosted flakes, chocolate frosted flakes, they're coming back. skip the fiber, give me the sugar. universal studios is teaming up with netflix to bring strangers things. there will be haunted mazes and guests will be stopped by the monster from the hit show. a major milestone virgin galactic space company successfully launched a test flight. this is the first time virgin galactic tested a rocket since 2014. a crash that killed the pilots. virgin galactic plans to eventually carry tourists into space. i had a bet with richard

branson. the bat was all the ice will be melted in the north pole. if it's not, i get a free ride on his spaceship. he never throug came through. if you had to take a guess which space. [inaudible] which one would you pick? we will tell you, next. >> it's in the south, i bet.

we asked you what's the most stressed-out state. the answer, louisiana. the website wallet hub looked at factors like median income, share of adults worried about money, divorce rate, physical activity and the average adults getting seven hours of sleep. new mexico, west virginia, mississippi and nevada round out the top five. the lease stressed-out state state is minnesota. wallet hub says they have the lowest percentage of people worried about money. only worried about the

climate. north dakota, utah, iowa, south dakota. what are you worried about when it's 40 below. producers are on my back, the hubble tells telescope found the furthest star ever observed. 9billion light-years away. they were only able to detect it because the light from the star with the hubble telescope was magnified 2000 times. next, chris and jordan hicks are on the screen. two months ago you watched them win the super bowl with the philadelphia eagles. now they are wealth managers. they will be in my studio just a couple minutes. google employees trying to stop the company from working with the military on a project involving grounds. the drone warrior is with us, he is the guy who brought us

that story first. the markets right now selling off. case closed we are down over 400 points. we will be back. you wouldn't accept an incomplete job from any one else. so why accept it from your allergy pills? most pills don't finish the job because they don't relieve nasal congestion. flonase allergy relief is different. flonase relieves sneezing, itchy, watery eyes and a runny nose, plus nasal congestion, which pills don't. flonase helps block 6 key inflammatory substances. most pills only block one. and 6 is greater than 1. start your day with flonase

for more complete allergy relief. flonase. this changes everything.

were very proud. 29 are in the redbird we are down one and a half percent. come on in, ted oakley, managing partner. this is clearly a dip.

you're saying don't touch it with a 10-foot pole. >> what i'm saying is we have a different kind of market right now. typically we been having lower highs and lower lows in but were really looking at right now. >> so you wouldn't be in the market today on the step, were down nearly 400 points. you wouldn't buy in at this point. >> i would not because we are already set. we have a certain amount of cash that we are holding right now. >> about the big tech companies. you are a fan of them at all. the problem is, i have

probably been around longer so i remember 1999 and dell and cisco and those stocks that everybody couldn't get enough of them and they thought nothing whatever change, but it always changes. >> that was called the.com bubble, i understand that. you're not likening the current situation to big tech to the situation several years ago. >> some of them make money now but as people get you name it with a certain set of stocks and they can't see. they get caught up in a number of stocks like that. the only one that's gone on from that level to reach higher heights is microsoft. >> as you know i do own a couple shares of microsoft. now you say that people should

have more cash. if you look at your overall you have more dollars in actual cash and you think we should have more dollars in actual cash. make your case. >> here's the thing, if you don't have any liquidity, if you have money coming in, that's a different situation but if you have a finite amount of money invested, then when you have prices extremely high and you know valuations are hi, you have to really create some liquidity or on the downtick you will go through bear markets from time to time or even flat markets were you waited out and you find things that are really attractive and you can't do that unless you have liquidity. >> we are coming up to the weekend. it's friday.

you're saying don't buy the step before the weekend because you have no clue what china is going to say and you don't know what president trump is going to say. we don't have many things that hit our value screens right now that we want to buy. if we did we would buy it. we don't have that many things on the list. >> the one thing i'd really like you to say and what you did say was about microsoft. ted oakley, thank you. >> thank you stewart. >> google employees, they are trying to stop google, their own employees trying to stop the company from working with the military on a project involving grounds. bret is with us. he is the author of the book the drone warrior.

you were the first to come on the program and tell us about this project, this drone project that some google employees don't want to work on. remind us, what is that project and what is it trying to do for the military. >> the original military project was to provide ai that was able to look at massive amounts of big data and provide that information to analysts so they are able to look at all this imagery coming from drones so essentially it was utilizing google technology solutions to assist the soldiers on the battlefield. >> i'm appalled at the spread the idea that americans working for an american company would not help the american military in a project of this kind. you share my feelings. >> you and me both. silicon valley is losing its mind. for a company like google that employs some of the smartest people in the planet, they are

making some pretty dumb decisions when they are coming out saying they don't want to assist the war fighter. it was a sense of pride. they should be proud that they're providing these technology solutions to the war fighter and saving lives. instead we have silicon valley engineers living in a bubble and have no idea how the drone problem works in the us extent is to stabilize and not take it and they think they should be able to decide how our world should operate and what we should do with the technology available to a sprint i'm starting to see this with companies, even startups. for some reason they believe working with this is a crime against humanity like there's a moral or ethical dilemma that's involved and instead they don't want to bother providing these technology solutions that are saving

lives and instead they'd rather do things and tell themselves that essentially they're contributing to the rest of the world and making it a safer place. it's absurd to me. >> what should we do? we put it right to google management and said you want to help america or not. >> i think so, in this case it looks like the executive understand the underlying issues and they also come from the misunderstanding of how the drone problem works. there's this misconception that guys like me were sitting there indiscriminately killing people and anyone who looked at us the wrong way are going to send them hellfire so there's this misconception that these programs are not helping people and the fact is, i can tell you from someone who is there that it is saving lives. they need to be better educated for this debate, which quite frankly in my

opinion is larger than google and drones in these engineers during a fit. this is a larger debate that should take place about the emergence of private sector and the emergence of their technology with big government, but at the same time, why would you not take a technology solution that we know is stopping the most evil people on the planet that are coming after us wherever we are and using that same technology to benefit us. just blows my mind. >> it makes no sense. i find it appalling. thanks for joining us. i'm glad we agree on this. >> the european union dealing with the surgeon homelessness part however the one exception is finland. the number of homeless people in that country has dropped from 30,000 down to 7000 in the last seven years. i'm sorry, and last 20 years. finland credits a program called housing first.

it helps put homeless people in housing and gives them access to job counseling service. at what cost, we do not know. >> big tech names, all of them down earlier. look it wind, they expressed interest in maybe buying it but they said they have not had any discussion with mgm or their advisers about a sale so it's now on the downside. from football to finance, chris and jordan hicks and they want to help others manage their money. they are in the studio with me, very shortly. fun states like iowa could be the hardest hit if china implements tariffs on american agricultural exports. we will talk to rob blunt about this.

he surely can't be happy. the park service said they hit peak bloom yesterday. temperatures in d.c. will dip below freezing. that's beautiful. a gift from the japanese government in 1939. we will be back.

>> i have your foxbusiness brief. a third-party hack. the stock is to the downside and also, for the week down more than 1%. you can see right now it's 53.68. here are some details of the hat. hundreds of thousands of customers credit card information could be affected. transactions between september 26 and october 12 may be compromised. the company is working on this. the breach details on their website. they work with delta, kmart and in this case they are working, they are contacting the customers and they have a dedicated website for customers in order to help them out and address customer concerns.

termites.

we're on the move. hey rick, all good? oh yeah, we're good. we're good. terminix. defenders of home. >> could doing the rock johnson be considering a run for the presidency? he admits he's been having under the radar meetings with political experts. he said he is trying to learn as much as he can but he says it will probably be years before he is ready to jump into politics. is he a republican or democrat. i don't know his party.

let's get back to trade and tariffs. farm states like iowa could be hard-hit if china goes after our agricultural exports going to china. joining us now is rob blom, republican from iowa. congressman, you can't be happy about all of this trade tension surrounding agricultural experts, exports, when you come from iowa. >> morning story. it's good to be with you. needless to say, we are very concerned at this point. if we look back to 2010, corn was around seven dollars. bushel. today it's rush roughly 50% of that, $3.70. soybeans are down 40%. our farmers and the breadbasket in our country, in iowa, are hurting are ready. to have tariffs and trade wars on top of that, with obviously it would not be a good thing. it seems to me the retaliation that the other countries give takes the form of agricultural products. iowa is a net exporting

state. >> china is deliberately going after you because you are an exporter and because iowa, i'm not sure recently, but i was pretty much a trump state. >> yes, iowa was a trump state and i heard china is going after 14 midwestern states, 12 of which went for donald trump. obviously they have looked at the politics involved. >> one in five jobs depend on exports so we are very concerned about this because we need more markets for our farmers products, not less to get their incomes up and have them buy more john your tractors, which you are well aware of john deer tractor. >> you never forget that, william. >> no. >> i love them by the way. >> i know you do. thank you for that. >> you and three other members of the freedom caucus, you are going after the swamp with a new video and the video is

called the swamp. i'm just going to let our viewers see a little of it. >> i think both parties are engaged in a quiet deal that we will support our base and if it leads to bankruptcy okay, and you will support your base and if it leads to bankruptcy okay because both parties are more interested in supporting the special interest groups. >> congressman, i read between the lines, you are going right at speaker ryan and senate leader mitch mcconnell, aren't you. >> i don't know if those two in particular, but were going after the system. shortly after i was in my freshman year, my first vote was against then speaker john boehner. i had a meeting with then speaker weiner and he said to me, he pointed at me and said we don't reward bad behavior around here. at the time i was a 61-year-old self-made businessperson and it struck me as being treated like i was in high school again and that

type of attitude, that type of atmosphere i think is ridiculous. it's counterproductive. >> the problem with the system is when a politician goes back home to his constituents he has got to show he brought home the bacon, that money was spent in his or her constituency. the impetus is always keep on spending money. that's a big problem, isn't it. >> it is a big problem. as a career businessman, i have said from day one in washington, the incentives are upside down and there's a hundred reasons to say yes to spending and is not a single reason to say no to spending. we have to get the incentives more aligned with the taxpayers who are paying all the bills. >> okay. i'm sorry, i'm out of time but it was a pleasure to have you back. keep on turning out those tractors because i need a new one. thank you. >> by the way, look at caterpillar. this is one of america's great

exporters doing this trade tension that you got going here, caterpillar takes it on the chin. it's down five dollars over 3%. same story with boeing. major exporter, trade tension brings the stock down to half% steak, eight dollars lower 327. now this. two super bowl champs headed down the hallway. they're not here to talk football, not with me, they are here to talk money and they will, after this. avel... for leisure. so i go national, where i can choose any available upgrade in the aisle - without starting any conversations- -or paying any upcharges.

what can i say? control suits me. go national. go like a pro.

weli can tell you about...re. streaming the most free tv shows and movies on the go. yeah, and... xfinity internet. it's so fast! and you can save by... by getting up to 5 mobile lines included. whoa, you're good. i'm just getting started. ♪ simple. easy. awesome. come see how you could save $400 or more a year with xfinity mobile. plus ask how to keep your current phone. visit your local xfinity store today.

it's extraordinary who shows up on "varney and company". these super bowl champions with the philadelphia eagles and active investment managers. there with me right now. you don't actually give advice to individual client. >> we don't. we eventually will but were focusing on football.

>> what you want to do is give , make sure young athletes who are making attentive money keep that money for the long haul. that's your objectives. >> ultimately you come into the league with an idea of how to preserve wealth and that's where we bridge the gap. there's a lot of financial guys out there that are managing money and we are trying to be the guys that bring the trust factor. players for players in the industry. there's a lack of trust and that's what were trying to get to. >> chris, i want you to be honest, when you first started playing, you were making attentive money all the sun. i don't know where you come from. [inaudible] >> you doing okay, when you first get the big paycheck, your instinct was a rolls-royce, i want to for ari. >> you did, then you. >> it may be cross my mind for a second but then th mature

person in me kicked in. >> sleeve managed to keep it. >> absolutely. large in part because i was raised with a good family, that was able to give us some financial literacy and unfortunately, not out everybody has that luxury. that's where we really want to help nfl players to be able to say listen, let us help you out. >> help me out. when it comes to a good deal money, how do you convince someone don't spend it all, don't live beyond your income, save some. how do you convince them. >> with the end goal in mai mind, your planning and the thing we would say is get a financial planner. find summary who can give you a plan because being in the nfl there is a lot of intricacies that you have to deal with. >> so they can say i trust you, opposed your cousin's long-lost brother or friend. >> exactly. we been there before and he's a two-time super bowl winner and i'm on my way up and we've

been there were trying to do things the right way and hopefully guys have been around us, guys that have seen us, they understand that and that's what were trying to present. >> your vote still active in the nfl. you've just won the super bowl. how does that feel. >> it felt great. to pour in all the work that you do to go into and to finally get to reap the benefits is phenomenal and something that we are so excited for the fans. >> forgive me if i ask, do you get a bonus for winning the super bowl. >> each week that you win you get a bonus. you get a playoff bonus. that's the way it structured. >> typical question would be how much. would they sell your company for a hundred million. >> no. no shot.

>> we are building this thing. we take pride in what we do have a great time doing it. >> chris and jordan, it was a pleasure having on the show. congratulations i think you're doing a fine thing. thank you very much. there will be more "varney" after this. >>

stuart: lunch time and we're down over 300 points, we have been down 400 at one stage, and if you look at the chart that's the progress of the dow throughout the day so far. its been pretty much straight down, kind of stabilizing in the last say hour, with a minus 300. i do think more investors are getting into cash right now. we have the earnings season around the corner going into the weekend i could see why investors would take a little money off the table. stuart: exactly you'd have to have a strong stomach. liz: you made the good point when do you buy the dip because you don't know how far the dip will go when there's so much

chop in the market. it erodes that desire to buy the dip. stuart: when are you going to buy the dip? liz: maybe next week. >> can i get some salsa with it stuart: liz, ash, great stuff thanks very much indeed. my time is up. neil it's yours. neil: thank you very very much stuart a lot of people still talking about your chat with larry kudlow particularly the end where the economic advisor hinted that a trade coalition of the willing to take on china is imminent. i think that i've got that right , stuart? we'll follow that very closely because this could be one thing that sort of unravels this selling spree, the notion that there are similarly-minded countries like our own who have had it with the chinese cheating on trade because whatever your views of the president's response of this fighting tariff for tariff and escalating no one denies that the chinese rigged their economy and currency, even their economic numbers making it very very difficult for the u.s. and other firms to compete. what is lost in this argumen