hotel, car and activity all in one place. ♪ dagen: thanks all, herman cain, stuart varney, take it away. stuart: good morning, everyone. the president orders truman to the middle east. a tweet just hours ago said nice and new and smart missiles will be coming. monday the president promised action in 48 hours, time is almost up. that has some investors worried. right after the tweet, a selloff picked up some speed. how big a strike will it be and what follows it? the price of oil has gone to 66 bucks a barrel, the dow is going to open 200 down. s&p down about 20, the nasdaq down about 50.

adverse reaction to the threat of the missile strike. next case, welfare reform 2.0, here it comes, yeah. the president wants to strengthen work requirements for people receiving medicaid, food stamps and other assistance programs that cost $7 billion a year. one more part of the president's agenda does look likely to happen. it is day two for mark zuckerberg, day one went well for facebook's stock that is, best day for a couple of years. he was on the stand for nearly 5 years, emerged as the sensor in chief for 2 billion users, 33-year-old antibillionaire has a say what gets on facebook and what does not. that kind of power look challenged. we are in the early stages of regulating digital media but regulation is coming. watch out, this is a live action news day, zuck, may be up staged, varney & company is

about to begin. ♪ ♪ stuart: how about this one, just in, fox business has confirmed that house speaker paul ryan will announce he's not running for reelection in november. joining us now congressman adam, republican from illinois. congressman, that spending bill was wildly unpopular, paul ryan got some of the blame, is that why he's out? >> no, no, paul ryan, look, we achieved tax reform, that was his dream for 20 years, he's been waiting on -- he's given a lot to his country and unless somebody questions conservative principles, he was the first that i know talking about entitlement reform requirements, paul ryan is a great man, in fact, he is retiring today, it's a huge loss for the house gop. stuart: you're worried going

into midterm elections because you lost quite a few republican leaderships, you lost them. >> it's to expect, we knew going into this year, last year before we even started whenever a party has unified control of government they are going to lose seats, very rarely has not been the case, i think it was 2002 under w. because that was right after 9/11, we have a lot of defending to do. we need to make sure nancy pelosi is not speaker of the house. a lot of people retiring after being here 10 to 15 years, there's no doubt that we have to take the message to the american people, what tax reform has been able to do, growing economy and how the gop can be a partner with the president to get things done. stuart: i want to move onto facebook because you'll be questioning mark zuckerberg, yesterday he was hinting as a subscription service for facebook, roll tape. >> a number of people suggests

that we should offer a version where people cannot have ads if they pay a monthly subscription, certainly we consider ideas like that, i think that they are reasonable ideas to think through. stuart: do you like that idea, facebook stock went up when the news came up yesterday, do you like the idea of paying facebook to keep your information out of bounds for everybody? >> if you ask it that way, seems animus, i do belief in the free market, if facebook -- they have to make money, if they decide that they want to offer a service where there's no ad, no information, and they can make money that way, we will see if the free market responds, i'm a free-market guy. i've been in congress since 2011 and we have been grappling with the issue of privacy and it's so broad we haven't been able to fully grasp, where does government need to come in, where is the free market that needs to be held in the bands, i'm looking forward to this

hearing today, somebody will try to get you tube moment, this is really about us learning from mark zuckerberg and where facebook screwed up and where they need to fix things. stuart: thanks, sir. let's get to that trump tweet first thing this morning that really royaled the market. look at this, russia strows shoot any and all missiles fired at syria, get ready, russia, because they will be coming, nice and new and smart, you shouldn't be partners with a gas-killing animal who kills people and enjoys it. well, look who is here pete hegseth, "fox & friends" week cohost and army veteran. tell me what is the military doing right now as they prepare what looks to be like a strike. >> you can talk all you want about what to do, the question is what can you do, we don't have a carrier strike group there, it'll take two or three weeks there.

we have aircraft assets in the region, some allies willing to contribute possibly in france, depends on the size and scope of what this administration wants to do, last time they took out on airfield, do they want to do something more symbolic but something that takes a hit at the assad regime. stuart: you have to hit assad regime either air force or artillery which launched the gas attacks. >> you have to take out the very advanced antiaircraft systems they have and where do they get them from, russia. you know where i love the tweet from the president, has to do a lot with bashar al-assad and chemical weapon use but everything to do with russia who is propping this regime. if we are going the strike the targets, we need to put russia on further notice, if there are russians and iranians they are going to die. stuart: you go after the sights and you will kill russians

and/or iranians at that point and you escalated. >> you don't have to. they will move assets even though we are surveilling, making sure you do it right, you put a little notice that you don't cause escalation, we should take out air force and let him fend for himself after that. stuart: what happens after a strike of that magnitude, what follows it? >> russia and iran have to make a choice, they want to further continue to prop up assad, they had more interest than we have, we have been focused on isis and not necessarily on rolling back assad. all depends on how they react to our strike. stuart: by making the strike if we do and looks eminent, we are putting the ball in their court, it's up to them to either get out of the way. >> they've been controlling the court, stu, the russians do, we have been focused on isis but they have much more strategic imperative because they want to

be shed to israel, iran wants that, russia wants to continue to have a puppet regime there. this could be an opportunity to take the strategic initiative and forge a solution that we want that recognizes isis needs to be up, kurds need to be supported and a butch e like assad won't be tolerated. that's why you see -- stuart: no doubt in your mind that a big strike is coming soon. >> i think so so and i hope so and more than tomahawk missiles into the airfield. stuart: appropriate day for you today, thank you very much. futures, that is stock futures took a big turn lower as soon as the tweet from president trump came out. right now down about 200. liz peek is with us, foxnews.com columnist, is it possible, when and if the missiles are launched that the market might reverse and go up, it has -- >> it has happened in the past, the question is how much

anticipation on conflict in the middle east. if response is modest, then the market could rally. i think the united states is realliy for this president to assert the american power in the middle east in the way that we haven't in a long time. we want to get out of syria, yes, but we cannot allow this kind of behavior from assad to go on. trump has made that pretty clear. stuart: in general terms would you say that investors approve of going after assad after that gas attack, do they approve? >> i think the whole world approves of this. stuart: do you agree? >> i agree. stuart: except the russians. ashley: what all paul ryan, another thing thrown in today, does that hurt the market, moderate voice in the administration when it comes to policy. liz: you have kevin mccarthy. stuart: you've asked the right question. liz peek answer it. >> the raid of trump's lawyer's

office. you know, i think the market is trying to figure out what the big news story. i don't think paul ryan leaving today is not good news, i will bank on that. stuart: as president trump considers response to air strikes, she did ask that question, and, of course, you will see the response. [laughter] stuart: you will love it. another win for the trump agenda, the president looking to strengthen work requirements for people receiving medicaid and food stamps, welfare reform 2.0 and day 2 for zuckerberg, the stock went up on day one, follow it on day two right here. this is just the first hour of varney & company.

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stuart: in less than one hour on this program you will see paul ryan announce that he is not seeking reelection in november. look who is here, howard kurtz. you have a point there, howard. >> a little crazy. stuart: why is paul ryan out, because he has trouble with mr. trump? >> long answer, yes. i think he's very frustrated in dealing with the president because paul ryan is conservative who would like to have smaller government and president reluctantly threatened veto for spending bill. paul ryan may have felt the number one goal, tax cuts through. he never wanted to be speaker. he was drafted for the job. he has a young family and he said he had enough. stuart: you said he's a conservative, good conservative principles, how come he allowed that awful spending bill to get through? it was the senate that really pushed it but it went through

the house like that with all the extra spending? >> i think ryan was in a box. his caucus is divided, they didn't want to shut down the government, you know what this really speaks to can anybody be a successful speaker of the house with this gop majority because boehner was frustrated and quit, ryan was frustrated and quit and you the real split when those who really want the smaller government, roll back regulations, don't spend a lot of money and you have a president who goes his own way. stuart: republicans are divided and act on that division, it's obvious. the democrats are divided, it's not obvious that they are divided, they can come together. >> it's easier to do when you're the minority party. we hate trump and things better under our rule. stuart: are you having fun? >> well let's just say a pretty busy news environment. stuart: they have for you, listen to the question from april ryan at the white house, the press briefing, white house

correspondent for american urban radio networks and cnn contributor, now ral -- roll tape. >> with all of the turmoil, has the president at any time thought about stepping down before or now? >> no, and i think that's absolutely ridiculous question. [laughter] stuart: do you think it was a ridiculous question? >> out of left field literally. the president is thinking maybe i don't need this job and go back to mar-a-lago. she knew that sarah huckabee would smack it down. that's when cnn hired her as contributor. she offered contentious questions. there was nothing to back that up. that was a way to get some attention, make a little news for yourself. stuart: she did. [laughter] stuart: howard kurtz you're all right. research paper alleges big

airlines used to collude. >> basically cut back seats to raise prices. there's no proof that there's any agreement with the airlines that they are doing that, what the economists did was look at earnings stretching back to 200 the -- 2002. other airlines copy that. the federal government has tried to prove collusion in this -- in the airline space for years and this paper tries to do that after they found that one airline says we are going to cut seats, the number of seats go down 1 and a half percent. they try to establish the paper trail of collusion but you don't agreements on paper we are going to do it ahead of time. ashley: to emac's point they use capacity discipline. that's the code word between major carriers, let's cut back on seats available.

liz: that's why they assert, there's no proof that the airlines are using the dog existle -- dog whistle words to do that. it's wall street getting that information. >> they are not stupid. liz: it's a stretch. this felt like a stretch. stuart: now this, ladies and gentlemen, kim jong un and president trump possible summit meeting next month, but there's something that maybe standing in the way of actually getting the north korean leader to wherever the meeting is a plane, we will explain after this. see that's funny, i thought you traded options. i'm not really a wall street guy. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that.

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hm. i'm thinking... will i have enough? should i change something? well, you're asking the right questions. i just want to know, am i gonna be okay? i know people who specialize in "am i going to be okay." i like that. you may need glasses though. yeah. schedule a complimentary goal planning session today with td ameritrade. stuart: check those futures, they have come back a bit. we were down 250 now 180. syria and what we are going to do weighs on stocks. next case, president trump plan to go meet kim jong un in person, there's a, question, however, how kim will get to the meeting, tell us about it. ashley: most of the money in north korea goes to military, even own planes and the planes dictator would use are very old. brings up the question if they have a summit between dmz, fine,

he can probably take the train again, if it goes further field, maybe somewhere else, requires long-distance flight, he doesn't have a plane that could reach there without refueling which would be embarrassing. he could hitch a ride, he be offered a ride by the south korea or sweden which is always considered neutral in all of this, that's embarrassing. he could borrow a plane from russia or china, embarrassing because you have to give it back once you landed. bottom line is his father was notoriously dead scare of flying and he took trains everywhere. kim jong un has showed that he's not afraid of anything, we have seen pictures of him flying places, not very far because the plane couldn't go very far and dubbed air force utin than air force one. there remains a question if the summit site is picked, how is he

going to get there because he's con have i saided that he doesn't have a plane -- liz: doesn't project leader when you have to stop to refuel because your plane dates back to cold war. >> maybe trump can pick him up in air force one. [laughter] >> give him a lift. stuart: taking advantage of your opponent's disadvantage? ashley: yes. >> enjoying it. [laughter] stuart: you have the smile on your face, i know you do. do we have the statement yet? we are awaiting a statement from paul ryan's office, 10:00 o'clock eastern time this morning, about a half hour away, he's due to make a statement and we have confirmed that he will not be running for reelection in november, he will issue public statement, here it is, this morning speaker ryan shared with his colleague that is this will be his last year as a member of the house. he will serve out his full term, run through the tape and then retire in january.

he's no longer going to be the speaker and no longer going to be in the house of representatives. ashley: yeah, he goes onto say that he's ready to devote more of his time to being husband and father which is what howard kurtz was saying. >> he has young kids. steve scalise to be in the running for that. we have to wait and see on that. stuart: we got the statement, he announced it publicly and go in front of the cameras at 10:00 o'clock this morning and you will see it. 4 and a half minutes away, opening of the stock market this morning, we will be down but not as much as we were going to be down if you have taken the reading an hour ago, 170 points to the downside, 35 down for the nasdaq. stay right there, please, another big day coming up including the open of the market after this

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♪ i made my own way, now it's time to make yours. ♪ ♪ everything is working, working, just like it should ♪ stuart: well, in 30 seconds we will open this market, it is going to be a very interesting day looming in the background is what we think is an imminent missile strike or some kind of military strike on syria and later on this morning, zuck goes back for another go at congress,

this time is the house, his stock price did well yesterday on day one of testimony, how will it do today? there's lots of factors in this market today, it's a live action news day and that will be reflected in stock prices, in your 401(k), bang, here we go, it's 9:30, i have indication that we are down, 179. we are down 180 and almost all of the dow stocks which are currently open are down. they are in the red. up 200 in the first couple of seconds of trading, down 200. down .8%. how about the s&p? that is also obviously lower but by less. it's down .5%. so not quite such a drop there and tech-heavy nasdaq is also down a half percentage point. ashley webster, elizabeth mcdonald, liz peek and shah

galani. if we get the missile strike, a big strike, that's what we are expecting, how will the market react? >> it'll react negatively, stuart. the market has been rather weakened here. i was surprised that we haven't seen buying and some support to the contrary we have seen more selling on days where volume is high as opposed todays when volume is low, we see buy-in come in. if we get a missile strike, that could turn into a larger, bring in the russians, of course, iranians, i think the market will immediately react to that and very negatively. stuart: what do you say liz peek? >> i think it's already in the stock, the market is down because of the tweets, i would disagree because i thought yesterday we had an avalanche of bad news and the market went up. i think the market wants to go higher. stuart: split decision among experts this morning. how about the profit season, profit reporting season, kicks off on friday with big banks, now we are expecting pretty good

results, liz peek? >> we are looking at big numbers for the first quarter for sure. it's up 17%, some people think could be as 25% and that's why i think the market wants to go higher. stuart: that baked into the market already? everyone has been saying, 15, 17, 20%, surely that's in the market already. >> i think there's been so much noise, stuart, about so many other things going on, people haven't really focused. let's see what the numbers look like, then i think the market will react. stuart: i want to move onto facebook. zuckerberg goes onto capitol next hour, what's the difference between yesterday when he appeared before the senate and this morning when he appears before the house? >> the house could be more aggressive and try to really pin him down. he showed he can't be trusted to even give a straight answer, facebook really does prey on the gullibility of users and senators and refused to directly answer whether they have fake

accounts, data transfer to third parties, whether, you know, you know basically you are tracked offline. by the way, facebook does track you when you go off website, he did say tens of thousands of apps are investigated for misusing data on facebook. stuart: the market thinks otherwise. the stock is up. >> he said he's open up to regulation. ashley: he has no real handle on how much information is out there, who is doing what with it and all the rest of it. i do think that he did better than we thought he would be. liz: schooled by washington, d.c. consultants. ashley: nevertheless he did hang in there. >> isn't it remarkable that expectations were so low for the ceo of tens of billions of dollar company. >> that's why the stock rallied. stuart: shah, would you buy? >> no, this is only the beginning, the stock rallied because expectations were low, he exceeded them.

the senate was very weak-handed questions, i don't think there was much pressure put on zuckerberg, today might be very different. facebook is going the face it. liz: he still faces ftc investigation and fine. he didn't even notified the ftc about the data breaches which is what he was supposed to do. stuart: four minutes into the trading session, we are down 188 points. bitcoin, where is that today? it's been pretty stable around 7, $6,000 a coin. as of now 6,900. how about gold? i would expect a rally there, yeah, 1355, because we may be getting a missile strike on syria at some point soon. now move onto tesla, it's been around 300 per share but goldman sachs lower price target and says the thing is going down to 195 because of tesla's production issues. sha galani that's quite a

haircut if it goes below 200. >> the few times i've done it i've had my hand handed to me. i'm apprehensive about doing that. i've never understood the metrics in terms of tesla, production schedule, i don't understand the capital raises and they consistently need more and outspend the raises, i think they are going to need another one despite what elon musk has said, probably by the third quarter, certainly fourth quarter. i'm with goldman sachs. stuart: okay, would you -- anybody here buy facebook at 166? >> no, no. stuart: facebook, sorry, tesla, tesla at 300. i'm sorry. tesla at 300? nobody is buying it. ashley: built on hope. >> concept. ashley: an idea. stuart: gorgeous products as you say. ge, now listen to this, jpmorgan

says it's expensive at 12, $13 a share, morgan says it's going to 11. liz peek, would you buy it at 11? >> no because i think sha galani said the last time we talked about ge, a lot of great companies that don't have much problems, we don't know the depths to have problem in the financial arm it turns out, the only surprise issue here warren buffet continues to kind of hint around about value, it's exactly the kind of company that warren buffet might take interest in at 11, he might be tempted and then the stock will do quite well. stuart: it goes to 12, what do you have? 9% gain. >> selling 20 billion of assets which could force it out of the dow and drop further. [laughter] stuart: okay, we spent too much time on ge. 20 years ago -- ashley: below 20 we made a big deal. stuart: we did. ashley: wasn't that long ago. stuart: this is an interesting

one. look at apple, over 80% of teenagers prefer an iphone to an android. is that a big deal? >> it actually is a big deal, in your opinion one it ropes all the teenagers and increasing number of teenagers that are liking apple into all their vast family of products, once you're an apple person you're always an apple person, that's the other big aspect, over 85% loyalty both android users and everybody else on their phone system. so once you buy it, you're going to stay with it. it's a big deal. exactly. stuart: the study, whatever you want to call it, survey, apparently teenagers believe that the iphone is cool. >> maybe the apple watch is cool to them too, i don't know. good for apple. stuart: whatever. spotify -- >> apple is a status symbol. stuart: thank you very much. spotify working on a stand-alone car speaker. one of the voice assistance for music while you drive, would you

have one of them, ash? ashley: maybe when i drive. i have one at home which i love and spotify works great. stuart: sha galani would you have the voice whatever in your car? >> i don't have a voice assistant but spotify getting into the hardware business, welcome to an overcrowded field. >> amen. >> i don't think it's going to move the stock, i don't think it'll do a whole lot in competitive playing field. i don't think they are going to take any leadership role whatsoever. liz: facebook is trying to do. stuart: what's room with satellite radio. most cars have already. >> beatles channel. >> more on demand. to shah's point, i don't think you want to get into the equipment side. stuart: channel 19 i think is elvis. i don't remember the rest. [laughter]

stuart: moments from now zuck will walk on capitol hill, walk into the hearing room i should say, is due to start moments ago actually he walked in, we have the video of that. you have video of all kinds of things these days, video of the president getting into air force one, getting off air force one. [laughter] stuart: you the motorcade going to andrew's point base and now you have zuck walking into capitol hill. the virtues of television. ashley: we should have video of stuart getting cup of tea. stuart: that's an entourage. when i get my tea -- ashley: there's no entourage. >> he really looked like a deer in the head lights, he looked totally scared out of his wits. stuart: round eyes of someone who was squared to date. >> he had been well coached. >> 50 cameras pointed at him. stuart: do i have to say good-bye to shah galani.

you're out of here. we have come back a bit. we were down 200. now 166, coming back just a little bit. coming up, another win for the trump agenda, you haven't heard much about it. this is what's happening, he's looking to strengthen work requirements for people receiving medicaid, food stamps and other welfare programs, how about that? we will have details for you in a moment.

stuart: 12 and a half minutes into the session, we are down 139. we had been down about 200. the apple watch of the future could analyze your golf swing. [laughter] stuart: all right, nicole, i

don't have a board of arbitration -- bicep and this is all about new sensors on the apple watch. this is a patent which they filed for, of course, they filed for many patents, we will see whether or not it comes to fruition, this an interesting one. it will have advanced sensors and will now how your wrist is expanding and contracting, barbells, golf clubs, will measure the acceleration, the trajectory based on how your wrist muscles are moving, so that's the idea behind it. the stock is down half of 1% at 172. i wanted to tell you analyst this morning put 235-dollar target, if you love apple, you love that. 4 out of 5 teens have an iphone, the number is growing. so they do a survey twice a year so the teens are loving the iphone. stuart: pretty good stuff for apple, nicole. we will take it.

president trump did sign executive order that aims to strengthen work requirements to public assistance and other welfare programs, all rise the judge is here. now, first of all, this looks like a part of the trump agenda which will happen. the president signing executive order, there's nothing unconstitutional about executive order. >> i have to read the executive order. i think the executive order is going to regulate people that the government does business with. so yes, the president can do that but it would take congressional legislation to achieve exactly what he wants and he ought to do with majority in the congress. what he wants is to pair a work requirement with the receipt of government welfare or the demonstration of an attempt to obtain work with the receipt of government welfare, not a word that we are supposed to use anymore, transfer payments. stuart: the president is reforming welfare.

>> yes. >> stuart: by requiring work requirements, not cutting amount you get? >> he has wiggle room. there are certain areas where he can actually impose obligations on the recipient even though the constitution says only the congress can write laws, the congress has delegated a little bit of wiggle room to make delivery of certain government benefits a little bit easier or more challenging but beyond that, will take congress to do it. stuart: extremely difficult to take away or limit any program once installed. >> oh, my goodness. absolutely. nothing more permanent than a temporary government program. [laughter] >> rent control in new york city, started in 1943. stuart: still got it, doesn't absolutely work? >> it doesn't. they learn that the pie is there.

stuart: easy to expand an easy program. president obama vastly expanded food stamps to the point where 50 million americans were getting. >> yes. president trump can't contract that but can impose obligations to seek work as condition of receiving that, that's basically what he wants to do and beyond a certain point requires legislation. stuart: stay there, judge, because we within the to talk zuckerberg in just a moment. as reone up to the break, the dow industrials have opened down, we were off 200 points, now 130, we are expecting or president trump has warned the russians to expect a missile attack or a missile launch against syria. so that's affecting the market. we are also running up to the point where paul ryan, we know he's not going to stand for reelection in november, he will make a public statement and you will see it. plus it's day 2 for zuckerberg

on capitol hill, about ten minutes away he will be taking questions, answering questions from house members, stay right there, you're watching varney & company

stuart: dow industrials are off their session lows. we were down over 200, now we

are down about 150. we are waiting for founder zuckerberg to get going with testimony on capitol hill. he will appear in front of the house energy and commerce committee. it's all about the data scandal, of course, that broke last month. judge napolitano and liz peek, both with me now. first to you, judge. >> two gripes. stuart: wait. [laughter] stuart: i want to deal with number one. i think that zuckerberg has been censoring conservative opinion on facebook and i don't like it, what say you? >> i think you're right. but under the constitution and under federal law he has every right to do it and i'm shocked that some of my small government libertarian constitution friends and i will name them ted cruz and mike lee went for his uncensorship. stuart: he has a monopoly. >> hi doesn't have a monopoly until the courts declare it. the first amendment doesn't

regulate him. the first amendment regulates them the government, it doesn't regulate him. stuart: i'm moving on from that point. [laughter] stuart: that's ridiculous. [laughter] stuart: liz peek, you're worried, zuckerberg yesterday was talking about self-regulation, what he would do with facebook. >> that's what they are going to have to do because i don't think congress will get their act together. congress is most likely path to see what emerges in europe where many countries are dealing dealh privacy issue. chances are just as we dead with regulations, we will import privacy regulation from europe, but zuckerberg has to basically rise to the occasion here and basically add a lot of people which is what he's talking about doing. ashley: 20,000. >> they are adding 5 more to monitor the site. but this this is uncontrollable, the amount of messages, the amount of data is ridiculous,

it's all over the world. let's not forget in all of this, it's not just a privacy issue, that's what the focus has been yesterday mostly. it's also using the platform for bad purposes. under the gun for having allowed hate speech which incited violence and people killing people, well, we've hired people to try and solve that problem, they are always behind, they can't monitor what's going on, i think facebook has real problems and the fact that zuckerberg handled questions with some poise yesterday and wore a coat and tie, the stock should not have gone up. >> he said my team will get back to you. >> he must have said that a hundred times. ashley: i believe it's hard for facebook on many issue, but how about people who create fake accounts, there are countries and bad actors out that that can create hundreds if not thousands of fake accounts, how can you take the time to know which is real and which isn't?

stuart: liz, just a couple of days ago you were on the program you said how much -- how many tera bytes. >> four peta bytes of data every day. stuart: you cannot monitor. >> they can come in behind it and clean up real problems that exist but i don't think -- stuart: i have to get to this real fast, paul ryan will not seek reelection, he will not be speaker any longer and president trump just tweeted this, speaker paul ryan is a truly good man and while he will not be seeking reelection, he will leave a legacy of achievement that nobody can question. we are with you, paul. well, that's interesting. i'm not so sure that would have been stated a few weeks ago. >> he's going to stay as speaker through tend of his term but that might be shorter than he

thinks according to john roberts who reported about rumors of perhaps a coupe amongst the republican -- republicans in the house so that a new speaker isn't stalled before the 2018 election. stuart: well, what would that do for the market? i'm trying to understand that. >> it won't affect the market. stuart: that's true. would it affect policy and getting things done before november? >> depends on how conservative or broad-base the support of the new speaker. stuart: at this point the simple resignation of -- no, that he's not standing for reelection, that has not been a particularly negative for the market, not that i can see. >> people don't know what it leads to. stuart: the greater negative would be the threat of the attack in syria in some form or another, that seems to be the big negative that we are facing at this moment. we are -- i say only, we are down 122 points. remember, please we were up, what, 4 to 500, the dow is at

24,000, so you are couple away from all-time high and now we are coming back, we are only down 118, 117 points, 24,290. >> by the way, the dow where it was at in december or november, we have lost a few months of gains, so the question about syria is whether or not the president can get even more countries besides france and saudi arabia to tape off any market downturn. we were in relief rally because china trade war was off the table for now. we will have to see the market reaction on syria. stuart: in a couple of minutes we will take you to hearing room and get you rolling on 10:00 o'clock hour, i have to say good-bye to the judge, i'm sorry i didn't get your second -- [laughter] stuart: liz peek, fine performance for the first hour of varney show, thank you very much, indeed, ladies and gentlemen. we will be back in just a moment. i promise.

at crowne plaza, we know business travel isn't just business. there's this. a bit of this. . . ..ne

stuart: 10:00 eastern. we cover politics and money and here's what's happening. any minute now we expect to hear from paul ryan. fox business has confirmed he will not run for re-election in november. when he takes the podium we'll take you there. on the right side of your screen, zuckerberg we're about to start day two. the questioning will be similar probably to that of day one. investors want to know what kind of regulation is likely and will you offer a subscription service where users pay to keep their info private. important question from me, have you been censoring conservative opinion? we had a predential tweet. we have the world watching and waiting for a missile strike on syria. he issued a stark warning to russia, you shouldn't be partners with a gas-killing animal that would be syria's assad. uss harry truman is on the way

to the middle east, that is carrier battle group, left norfolk, virginia today. investors don't like uncertainty of that. stocks down this morning but not that much. the price of oil is up to $66 a barrel. the price of gold is a little higher as well. this is a big day for politics and your money. that's what we do. the second hour of "varney & company" is about to begin. ♪ stuart: all right. the two big stories, on the left-hand side of your screen any minute paul ryan announces he is not running for re-election. on the right the room where zuckerberg testifies this hour. we'll take you to both events live. first, i will cover the market for you. stocks are down this morning but we're coming back a little. the s&p and nasdaq also down this morning. joining us now, lido isle

advisors, no, it is lido isle advisors, i'm sorry that man right there, lido, lido, got it, jason rotman. barron's senior editor jack hough. this is all about syria, is it? >> i would call a move like this a breather after yesterday but certainly as you say investor don't like the uncertainty. i think they are thinking now that we'll see a response that will be measured, proportionate, not something that can spiral into a larger engagement. stuart: jason rotman, you agree with that, this is not a big deal but that is what the market is worried about, syria? >> i think there are some other background issues, on immediate today basis, inflation numbers, year-over-year did up tick. i think there is a consistent background of higher interest rates this year with the new federal regime. we can not forget about that, in

addition to all the political stuff, the tariff question, we're still not out of the woods with the china tariffs. now we have the syria situation. i think we're stuck in a range. i think we're seeing what should happen, we're stuck in a range but we're actually downtrending. stuart: jason, jack, stay around. i will be back with you. political news this morning, really big, house speaker paul ryan is not running for election. joining us axios media reporter, sarah fisher, axios, your organization was the fir to report this. i say again we -- you have pretty good sources on capitol hill. >> that we do. paul ryan has aspirations bigger than the house leader. he ran for vice-presidential candidate in 2012. sources are telling jonathan swan and mike allen, he might get out while things are frustrating and a lot of chaos on capitol hill, but doesn't mean his political aspirations

are necessarily over. stuart: sara, let me ask you this, does he say to speaker in november and resign speakership let somebody else take over so some progress can be made on president trump's issues before november? >> it is unclear right now. as you mentioned in fox's reporting there could be republicans planning to make a push to have him leave the seat so that could have a more expected it policy making by the fall. paul ryan at the end of the day led the house through tumultuous times and big house stories. he was big instrumental player getting tax reform move. we'll see what his absence means for other issues like infrastructure. stuart: move on to facebook. senator ted cruz took suck -- zuckerberg, over facebook bias. to me looks like censor in chief

for 2 billion people am i on track or way off base? >> there were allegations about bias in the trending topics feature. they were not including conservative sources in sending news. suck zuckerberg has to stay on the side of free each. republicans like ted cruz will not give the company ease time if they think. stuart: jason, facebook stock had best performance close to two years i believe. is this because investors were happy with zuckerberg's performance? is that why facebook's stock went up so much yesterday? >> yes. he basically didn't make any major mistakes. there were light-hearted moments i think. it was a relief rally. it was a classic relief rally because the worst of expectations did not materialize at all. it was neutral to slightly

positive for zuckerberg. however as i said with you, stuart, over last couple weeks, i've been a uber bull over past few years, i still maintain the upside i said is severely capped. facebook is not out of the woods. some advertisers have pressed pause i think we'll continue to see that. stuart: what about the idea that facebook becomes a subscription service, a bit like netflix, for example? you pay them maybe a buck or two a month and in return they can't use your information? jack hough would that be good for the stock, good for facebook? is it likely? >> it is very likely and it would be great for the stock. advertising revenue is highly cyclical. there is one price that wall street puts on advertising revenue. there is much higher price they put on subscription revenue because it tends to be more stable. if facebook could mix revenue streams. i disagree with the point advertisers walking away from facebook. i saw is a recent survey from

rbc, number one answer what gives best return on investment for advertising dollar is facebook and where would people spend more, number one was facebook, number two answer is instagram, owned by facebook. stuart: jason rotman a subscription service would you be attracted on that? >> first of all i will place my bets that will never happen, even in light of what is going on obviously right now. facebook has consistently said we will always have a free model, free to sign up, free to use, if it does happen that facebook is going to start charging people 4.95 a month, whatever it is, 9.95 a month i think the stock honest to god it will crater for 20, 30%. that would be horrible short-term. that would add so much uncertainty to a proven, successful, multibillion-dollar profit-generating model. ashley: there could be options in there. you could have the non-subscription where information is more out there and that you, that you have the

ads targeted at you. you are paying a subscription to have none of that, to secure your data, not be targeted. stuart: hold on a second. i'm sorry i have to move on to this because we have paul ryan stepping down. he is not going to seek re-election in november. that is the accurate quote there, not seeking re-election in november. what happens to his speakership role? that i don't know. fox news contributor charles hurt though, he is with us. what is your reaction to this paul ryan news and this pure speculation there will be another speaker put in place before november? what do you say? >> well, i guess in retrospect it shouldn't have come as that big of a surprise given the fact that paul ryan has made it clear that he wanted to, he had accomplished what he wanted to accomplish with tax reform and there had been rumblings for some time that he was looking for a graceful exit of some sort but it really does underscore

the big problem that republicans have right now in congress. paul ryan, you know, on paper paul ryan, if you're a conservative paul ryan is a perfect member of congress but the problem has always been with him his need to sort of bring not only his caucus together but the entire house together to get thinkings passed and he suddenly becomes not so conservative, and a lot of bad ideas float to the top. it presents what the real problem is, running the house in these days. stuart: you have a split party in the house. that's a fact. sara fischer, axios website. you broke this story. you have got very good sources. what were the sources telling you as the reason for paul ryan stepping down? >> i mean it has been a chaotic time for paul ryan at the house. look, he has had to deal with not only majority which you would think is helpful but a president sometimes went against his own majority which can be

incredibly challenging. the other thing paul ryan faces potentially a democratic takeover in november. sources are telling axios this could have big implication what donors are thinking for november. if they think ryan's out and that the republicans will lose the house, the incentive to dish out the dollars will not be there. stuart: that is a negative for the overall republican party and raising money for november? paul ryan that is negative for the party? >> absolutely. it shows instability. stuart: charles hurt, what do you say, paul ryan stepping aside bad for the party? >> i don't know that it is all together bad for the party because those very same donors who will be reluctant to give to house members, will give it all to mitch mcconnell and republicans in the senate if they believe that the senate is the last place where they can hold a beachhead in congress, then, they will benefit enormously from this decision. stuart: it is ten minutes past

10:00 eastern time, this wednesday morning. we're waiting for zuckerberg to appear. he is already on capitol hill. we know that, we saw him arrive with his entourage. he is giving his opening statement as we speak. you can see him right there. we're also waiting for paul ryan who will make the public announcement he is not running for re-election in november. i guess he is is it going to be peppered with questions about, a, why is he stepping down, and b, is resigning from the speakership? i think those are two key points right there. he has not yet appeared at that podium. evidently figuring out what he is going to say. i did see mark meadows who runs the freedom caucus interviewed on the fox news channel just momenting ago. i take it he had strong opinions on paul ryan. maybe that is a factor. maybe paul ryan was waiting to hear what mark meadows had to say. is mr. ryan? in the tv news business, you get

a warning. before the president comes out you get a two-minute warning. before mr. ryan comes out we just got the two minute warning paul ryan is on his way. ashley: we have minute 1/2 to go. >> we have preview of the speech. we got the tax cuts the i collected all the high-fives. the bill is not paid for due come next year i will scoot out the side door before trillion dollar deficits come rolling in. liz: you wonder, your point about the freedom caucus is well-taken, they could step up, you know what? we don't want kevin mccarthy. he is not conservative like steve scalise. steve scalise has heroic profile in the house due to the baseball shooting. could he be more of a fighter for conservative fighters? that is how steve scalise is perceived. here is the play, if democrats take control of house, ways and means say we want president's tax return. that would add to fire to impeach the president.

this is real battle royale who will be leader right now as speaker of the house. stuart: you raise a very good point. paul ryan, not seeking re-election, i won't be speaker this time next year, if that is negative for the gop heading into the november elections, that is a key question. is it a negative? did i ask you that charles hurt? >> no, you asked me if it was negative for republican overall. we have to remember in a lot of ways paul ryan for the conservative wing, for the tea party people, paul ryan was a huge negative for republicans. they didn't like his stance on border policy. they don't like the spending. so if he is replaced right now with somebody who is more of a hard-liner on immigration and spending, i think that gives a lot of republicans more reason to show up at the polls next november. stuart: okay. we are waiting for mr. ryan to appear as we speak. i have to wrap up what exactly we're covering this morning.

number one we have zuckerberg with his opening statement before the house committee. that is going on as we speak. he will be taking questions shortly. number two, president trump tweeted this morning about an imminent missile attack on syria. it was a tweet that came out about two hours ago. that sent the markets south. and the market has stayed on the downside throughout the morning. so you have got zuck about to take questions. the president tweeting about a missile attack imminent in syria and number three, paul ryan, stepping down, not seeking re-election in november. the speculation there why is leaving, who takes his place and what impact on the november elections? so there is a lot of action here in politics. now put up the big board, please, i want to show you we're doing politics. now look at money. we're down 140 points on the dow industrials. that is about a half percentage point. somewhat similar losses for the s&p and for the nasdaq.

you have a minor drop it stocks almost across the board. there are no huge losers, if you look at some smaller stocks you can probably find some, but major names no major losses. >> it is waist and see. liz: the earnings season whether that will pop the dow out of a trading range. stuart: facebook is down one dollar, down one dollar in the 163, 164 range. remember it was up nicely yesterday when zuckerberg appeared before the senate. right now as you can see on your screens we're down a buck 33 at 163. waiting on zuckerberg and mr. ryan, looking at market and also waiting for what we think is an imminent strike against syria. okay we're showing you -- ashley: walking in. stuart: joining us from capitol hill, congressman ted bud, republican north carolina. what do you make of paul ryan stepping aside here? >> a lot of news here on the

hill. i understand as a dad, that is one of his main reasons. my kids age are the same as his. he lost his dad at a young age. he also accomplished a lot. so i really understand his reasons for multiple angles but promise to us he will run through the tape. he will not deceive the people back home in wisconsin. he is going to run and then resign. he will announce it early. allow somebody to step up in the first district of the wisconsin to replace him. he will finish strong as speaker. he is a very honorable man. glad to have him as speaker. stuart: congressman, thank you for joining us. paul ryan at the podium. >> morning. i wanted to share with you a little what i told my colleagues a few minutes ago. you realize something when you take this job. it is a big job with a lot riding on you and you feel it but you also know this is a job that does not last forever. you realize that you hold the office for just a small part of our history. so you better make the most of

it. it's fleeting and that inspires you to do big things. and on that score i think we have achieved a heck of a lot. you all know that i did not seek this job. i took it reluctantly, but i have given this job everything that i have and i have no regrets whatsoever for accepting this responsibility. this has been one of the two greatest honors of my life. the job provides incredible opportunities but the truth is it is easy for it to take over everything in your life and you can't just let that happen. because there are other things in life that can be fleeting as well. namely your time as a husband and a dad, which is the other great honor of my life. that's why today i am announcing that this year will be my last one as a member of the house. to be clear, i am not resigning. i intend to serve my full term

as i was elected to do but i will be retiring in january, leaving this majority in good hands what i believe is a very right future. it is almost hard to believe but i have been a member of congress for almost two deck is. this is my -- decades. this is my 20th year in congress. my kids were not even born when i was first elected. our oldest was 13 years old when i became speaker. now all three of our kids are teenagers. one thing i have learned about teenagers is, their idea of an ideal weekend is not necessarily to spend all of their time with their parents. what i realize his if i'm here one more term, my kids will only have known me as a weekend dad. i just can't let that happen. so i will be setting new priorities in my life but i will also be leaving incredibly proud of what we have accomplished.

some of you know my story. my dad died when i was 16, the age my daughter is and i just don't want to be one of those people looking back at my life thinking i spend more time with me kids, if i know another term they will only know me as a weekend father. so i'm really proud of what we've been able to do. when i took this job one of my conditions was that we aim high. that we do big things. that we fashion an agenda, that we run on that agenda, that we win an election and we execute that agenda. i am so proud that is exactly what we have done and what we are doing right now. we've accomplished so much since then. probably the two biggest achievements for me are first, the major reform of our tax code for the first time in 36 years which already has been a huge success for this country. that is something i've been working on my entire adult life. second, something i got much more invested on in becoming

speaker is to rebuild our nation's military. after tax reform, addressing our military readiness crisis, that was a top priority we got done last month as well. these are lasting victories that will make this country r more prosperous and secure for decades to come. there are some other things we have gotten done. i will look back proudly on my days on the budget committee and ways and means committee. i don't want to be sentimental here. i'm not done yet. i intend to run for the tape, finish the year. some wonder why i can't do normal politician thing and run and retire after the election. that is what i'm told is the politically shrewd thing to do. i considered that but just as my consciences is what got me to take this job in the first place. my conscience could not handle going out that way. i pledged to serve the people of wisconsin the first district honorably and in order to serve the people in my district

honorably, i have to serve them honestly and for me to ask them to vote to reelect me, knowing i wasn't going to stay is not being honest. so i simply can not do that. so that's why i'm announcing this today. again, i am proud of what this congress has achieved and i believe its future is bright. the economy is strong, we've given americans greater confidence in their lives. i have every confidence that i will be handing this gavel on to the next republican speaker of the house next year. so just to close, i said earlier that i didn't want this job at first. most of you know this, i really actually didn't. but i have to thank my colleagues for giving me this opportunity and this honor. i am really grateful for it. i want to thank the people of southern wisconsin for placing their trust in me as their representative for the past 20 years. i tried to bring as much wisconsin to washington as i can for this time. it has been a wild ride but it has been a journey well worth

taking to do my part to strengthen the american idea. that pursuit is never-ending, much work remains. i like to think i have done my part, my little part in history to set us on a better course. thank you. sherman. >> will you remain as speaker? >> yes. >> you have no plans to call early election. >> correct. >> is it for you to have a six-month leadership? >> i know most speakers don't go out on their own terms. tip he kneel was probably last one to do that. harry reid last senate session did this announced he wasn't going to run and stayed on as senate leader. that is what i'm going to do. >> got your long-sought tax cuts and tax reform legislation approved. would you say considering greatest achievement. not staying around for biggest consequence is trillion dollar deficits as far as the congressional budget office says eyes can sigh.

what is your response to that. >> i'm extremely proud of the fact that the house passed the biggest entitlement reform bill ever considered in the house of representatives. do i regret the fact that the senate did not pass this? yes. but i feel from all the budgets that i have passed, normalizing entilement reform, pushing the cause of entitlement reform and house pushing entitlement reform of course more work needs to be done. that send titlements. that is where work needs to be done and i will keep fighting for that. >> mr. speaker, did the chance you might not be speaker come november if democrats possibly take the house factor at all in this decision. >> no, none whatsoever actually. you all know me. i didn't take this job to get the gavel in the first place. i'm not a guy who thinks about it like this. this was really two things. i have accomplished much of what i came here to do and my kids are not getting any younger. if i stay they're only going to know me as a weekend dad. that is something consciously i can't do. that is really it right there.

>> mr. speaker, do you worry about the impact of announcement on 2018 midterms and that sending a signal that the house is lost for republicans? >> i gave it consideration whether i stay or go in 2019 will not affect a person's individual race for congress. i don't think a person's individual race for congress will hinge on whether paw ryan is speaker or not. if we do our jobs, which we are, we'll be fine as a majority. i'm grateful for the president to give us the chance to get this stuff done. i'm grateful we have unified government that the president with his victory gave us to get all the big things done. we have a great record to run on. we have a great economy, great accomplishments, more to do, i don't think the american people will want to have the gridlock democrats are promising. i'm confident we can run through the tape to get this done. >> on the president, he has been openly talking about firing bob mueller, potentially firing

the deputy attorney general. what are your thoughts on that? >> my thoughts haven't changed. stuart: the discussion moved on from mr. ryan stepping down. it has moved on to russia, russia, russia, bob mueller. let's stick with what we've got here which is a political news item to the effect that paul ryan is not, he is resigning. he is retiring in january and will hold the speakership all the way through until january. congressman ted bud, are you with us? >> still here. stuart: thanks for staying with us, congressman. we're obliged to you for that. now he is going to hold on to the speakership all the way through to january of next year. do you approve of that? >> absolutely. i think the thing with most integrity to do. it allows new leadership to step up. we can focus on keeping the majority. we think we will. remember we've got to do our work in our districts back home. that is what we've been doing last two weeks. he is a good leader.

there is lot of other talent in the republican party will surface. that remains to be seen. i think he is doing the right thing, stuart. stuart: he said, him stepping aside would not have any effect on individual condition dates in november. do you agree with that? >> if anything, it could help. one it looks for new opportunities within the republican party. he can focus on helping us, not his own race, not being speaker after this. after january. so i think it could be a real opportunity for us. stuart: congressman ted budd, thank you very much for being with us. at that particular moment in time, sir, that was pretty good timing. thank you very much indeed. thank you, sir sara fischer from the web site axios. axios broke the story, you were right all the way down the line. he was doing this, resigning because he wants to be a good "family guy," you got it right. >> paul ryan is doing this since

1998. he is tired congressman. it makes to sense to spend time with his kids and they are growing older to head off to college soon. it is honorable thing to do. he will not run for re-election and building on his constituency. look i'm going to retire, i will retire as speaker and then it is up to my district to reelect whoever it is in november. stuart: sara, thank you very much indeed. charles hurt, you're still there i hope. >> indeed. i'm not going anywhere. stuart: i want to see that smile. you have the best smile in television, son i kind of like it. what do you make of this? he says it won't have an effect on individual candidates in november. he will stay as speaker all the way through till january? what do you make of this? >> i think he is probably right of that. it frees him up to help in individual races. he can help raise money for individual candidates. that is all very good. one thing is worth stopping and

considering right now is the fact that people talk about they want term limits and we need term limits this is term limits in action. this is what lawmakers should be doing. they come here. they do their best. they get into leadership. do whatever. they try their best. they leave their imprint on this place and then they go home. that is what the founders intended. so i know a lot of people are critical of, a lot of conservatives are critical of speaker ryan and i understand all of that but at the end of the day hats off to a guy who knows when it is a good time to leave and knows that he is not an indispensable part of american life. stuart: thank you, charles. you know when something like this happens you cast around for people who know about the subject at hand and we have found david hoppie, former chief of staff paul ryan. your timing is pretty good

almost as the axios timing. you know the man obviously very, very well, and he says he is out and he is leaving because he wants to be a good family man. his father died at the age of 16, he doesn't want that effect on his family. that is part of it. do you think another part of it may be mr. ryan's unpopularity with conservatives in congress? >> i really don't think that has anything to do with it, if you go back to 2015 when speaker boehner decided to retire, paul was pressed into service to become speaker. his goal in being a congressman and being an elected official was not to be speaker of the house. most people become speaker over the years planned their careers out to become speaker. paul planned his career to become chairman of the ways and means committee in the house and he achieved it. sort of had it taken away if you will to become speaker. so his purpose was to be a congressman of ideas and that's what he has done.

he has been successful passing a significant tax reformulas december. as he said earlier today, he was able to get through the house a pretty significant reform mandatory spending in the healthcare bill, did not pass the senate and law, that is other things he focused time and attention on. with his kids getting into high school and soon heading to college, this is the last chance he has to be with him. that is the major thing. yes, are there frustrations in the job? all the time. stuart: one of the questioners, said look, you're leaving before the full effects of the tax cut take effect on our society, namely trillion dollar budget deficits in year 2020. the question was saying look you're getting out of town while the getting out is good. what do you think of that? >> i think issue on spending is issue of entitlement spending. that is something paul focused on, spends a lot of time on.

when he leaves he will still be involved with politics of debates. stuart: wait a second, david. you know this as well as anybody knows it. this whole subject of entitlement reform, i think it is the third rail of american politics, i don't think you will see it. what say you? >> it is the most difficult challenge we face. we will neither provide for people who need entitlements nor for the economy of our country, growth, people, jobs and opportunity unless we get it under control. stuart: that doesn't say you have the votes to get it under control? >> it does not but at some point we'll have to face this, the sooner the better. paul will be engaged with those ideas whether he is in the house or out of the house. he will continue to talk about those things. we have to get our hands around because it is only way to save the problems for people that need them and save the economy. stuart: charles hurt, do you agree we have to reform social security and medicare but

we can't politically? >> no. absolutely. it is the hardest thing that we could ever possibly do but it is vital. it is, this, the thing can't keep going unless these things get reformed. nobody has been a better, a clearer, clarion voice on that speaker ryan, which, a lot of conservatives have a lot of beefs with speaker ryan. at the end of the day i could never forget that one thing about him. there is nobody here in washington who is as honest about that. here is the thing, if we had 435 paul ryans in congress, that problem would be fixed tomorrow. some of them would lose because as you say, entitlement reform is the third rail of politics but it is, but it is only going to get worse. stuart: okay. i want to recap a little here. we do want to cover politics and money. the politics we've been covering so far this morning is resignation of speaker ryan.

he is not resigning as speaker he is resigning, that is the correct word to use. that had zero negative impact on the stock market. in fact i don't know whether it helped it or not but it might v we were down 200. now we're down 66. i will say neutral on this, no impact from this political development on your money. jack, what do you say. >> the way market is moving around that is not even a move. that is half a sneeze. you don't need a reason for 50-point move like that. >> it is quite a development when you think about it, the speaker is retiring. big deal. liz: i don't think people digested what is going on with the house with republican control. 42 house republicans are leaving. democrats only need to get 24 seats to retake control. 42 are leaving. by the way, 23 house republicans sit in districts that hillary won. so they are up for re-election. so again the number is 24 democrats, that is the number of seats they need to retake

control. 23 sit in districts hillary won. ashley: here we are. paul ryan's wisconsin first district seat is now in play. liz: that's correct. ashley: he would have been reelected. now it could be a toss-up. stuart: i want to bring in senator mcconnell on the floor speaking about paul ryan. >> his constituents in wisconsin's first congressional district as well as the american people. true to his career-long reputation as a champion for pro-growth economics, paul helped lead the way on last year's once in a generation rewrite of the nation's tax code. thanks in large part to his personal passion and expertise tax reform became a reality and our economy is charting a new course towards greater prosperity, and greater opportunity. on its own this generational accomplishment would secure the speaker's legacy as transformational conservative leader but of course it is far from the only fruit of his

speakership. his leadership was vital to securing everything from the largest year on year increase in defense funding in is a years, to the remaking of way we treat and find curse for rare diseases. once more paul paired that ambitious agenda with infectious good cheer and unflagging commitment to serve all-americans. amidst all the stresses an pressures of leadership paul's optimism and energy never faded. it has been a sincere pleasure and real inspiration to work alongside this humble servant and happy warrior. i am glad we count on the continued leadership through the rest of the year because our work together is far from finished. i look forward to collaborating closely these next months to implement more of the inclusive, pro-growth, pro-opportunity agenda. the american people are counting on us to keep advancing.

now in another matter yesterday the senate confirmed the first of six nominees slated for consideration this week. stuart: senator mcconnell on the floor of united states senate paying tribute, homage to paul ryan who is resigning. paul ryan will keep his speakership through january of next year. we're dealing with a lot of moving parts so to speak on the air this morning. i want to talk now about syria. first of all i want to show a tweet president trump put out two hours ago now. this is clearly a warning to the russians. look at this. russia vows to shoot down any and all missiles fired at syria. get ready, russia, they will be coming, nice and new and smart. you shouldn't be partners with a gas killing animal who kills his people and enjoys it. charles hurt, if there was ever an indicator a hit is coming that was an indicator. so my question to you is, it's going to be a big hit, isn't it?

we are wondering what is the aftermath of it? >> it will be. i hope the president proceeds with caution because getting mired in a civil war around the middle east is not what got him elected in the first place. stuart: wait a minute. you hope he proceeds with caution, and puts out a tweet like that, are you kidding? >> i mean one thing to to be incautious on twitter but another thing to be incautious ordering troops around. your point is well-taken. i do think one thing interesting about that is back and forth we've heard between putin and trump in the last month or so about putin claiming he can, that he now has smart bombs that can, that can withstand our patriot missiles an now his threat that he can shoot down our missiles. something tells me that the president has talked to his military and feels very

confident that putin is blustering about all of that, and that he does plan to leave some sort of very big mark in syria over the next couple days. stuart: is the country with president if he goes forward with a big hit on syria? is public opinion in support? so long as we don't flood the place with 200,000 troops or something stupid like that, that is not going to happen but is the country behind a big hit? >> that is the reason that these sorts of actions are always get high scrutiny from the other side. it always raises, the country always gets behind the president especially short-term ventures like this. stuart: lizzie did you say theresa may the prime minister? liz: actions in syria are barbaric. those responsible should be held to account. it can not be unchallenged.

uk has been somewhat silent but theresa may say some action should be taken in syria. ashley: saudi arabia is saying they need to be a response. air traffic control in europe is giving warning to airlines in eastern mediterranean, you need to proceed cautiously that airstrikes are expected. you can't say this has not been telegraphed. liz: russia is saying, this is news crossing, russia says a u.s. naval strike force is in the region. prime minister theresa may is recalling parliament. stuart: we're looking at zuckerberg? >> share private data we think third party users? >> congresswoman, that is how our platform works. you have to sign into any app before you use it. >> let me add it's a minefield in order to do that and you have to make it transparent, clear,

pedestrian language just once, this is what we will do with your data. do you want this to happen or not? so i think that this is being blurred. i think you know what i mean by it. are you aware of other third party information mishandling that has not been disclosed? >> congresswoman, no, although we are currently going through the process of investigating every -- >> you're not sure? >> that had access to large amount much data. >> what does that mean. >> it means that we're going to look into every app that had access to large amount of data had in the past before we lock down the platform. there are tens of thousand of apps. >> i have only four minutes. was your data included in the data sold to malicious third parties, your personal data. >> yes? >> it was? are you willing to change your business model in the interest

of protecting individual privacy? >> congresswoman, we have made and are continuing to make changes to reduce the amount of -- >> are you willing to change your business model in the interests of protecting individual privacy? >> congresswoman, i'm not sure what that means. >> well, i will follow up with you on it. when did facebook learn that cambridge analytica research mr. project was for targeted psychographic political campaign work? >> congresswoman, it might be useful to clarify what actually happened here. >> i don't have time for a long answer though. when did facebook learn that? and when you learned it, did you contact their ceo immediately? and if not, why not? >> congresswoman, yes, when we learned in 2015 that a cambridge university researcher assisted with the academic institution that built an app that people chose -- >> we know what happened with them.

i'm asking you. >> yes, i'm answering your question. >> right. >> when we learned about that, we immediately -- >> in 2015 you learned about it? >> yes. >> and you spoke to their ceo immediately? >> we shut down the app. >> did you speak to their ceo immediately? >> we got in touch with them and we asked them to, we demanded that they delete any of the data that they had and their chief data officer told us that they had. >> gentlelady's time expired. chair recognizes the gentleman from illinois, mr. shimkus for four minutes. >> thank you, mr. chairman. thank you, mr. chairman. thank you for being here mr. zuckerberg. facebook, you streamed live congressional baseball game. i have the managers here. i was told because of that we raised additional $100,000 for d.c. literacy and feeding kids and stuff. so that, the other thing i put my stuff up on the tv, i don't want to do it very much because my dad, he would be mad, if he

went international like you are, and he is been on facebook for a long time. he is 88. it is good for connecting kids and grandkids. i just got my mother involved on an ipad and because, she can't handle a keyboard. so, and i did this last week. so, in this world activity i still think there is a positive benefit for my parents to be engaged on this platform. so, but there is issues as being raised today. and so i'm going into a couple of those. facebook may developed access to user and friend data, your main update was in 2014. so the question is what triggered that update? >> congressman, this is a important question to clarify. so -- stuart: i will break in for a second, it is getting a little weed did i in the discussion

there. the previous questioner, california democrat, kind of got to him i think. ashley: painted him into the corner a bit but he wouldn't answer the question, are you going to change your business model? he said i don't understand the question. of course he understands the question. he bought himself some time. i don't think he really answered that. liz: you can't trust him to give a straight answer. that is frustrating. stuart: jack you think he is took okay. >> this was never going to be easy. he is beating expectations. no one doubts mark zuckerberg genius. what was doubt big company gravitas. tim cook is prototype of combines two things. i thought he would come of looking like a guilty kid today and yesterday. liz: looks guilty not answering yes, sir. >> he is holding up better. stuart: liz: he can't answer basic questions about his company. stuart: wait a second. give the guy a break here. the canimportant kong -- california congresswoman asked him when did you learn cambridge

analytica, he said 2015. liz: after two or three yes, sir. stuart: did you talk to the ceo? he was talked to. the ceo -- we shut it down. ashley: told all the information was deleted. stuart: yes. that was inaccurate. it wasn't him that was being inaccurate. it was cambridge analytica that was being inaccurate. ashley: but they never followed up. stuart: they had a legal responsibility to delete information they acquired. they did not do it. they're on the legal hook, not facebook. tried to check. liz: do you have control of your website, number one? number two, tens of thousands of apps are on facebook that are, zuckerberg said yesterday will be investigated. you can bet when you're on facebook's website, you have i don't know how many people looking at you doing what you're doing. stuart: doesn't it come back to what liz peek was discussing earlier this morning, it is so big, two billion users -- ashley: of course it is. stuart: carrying all this information, how on earth do you monitor that?

how do you do it? liz: if you try to honor it will hit the bottom line, right, jack and ashley, because you have to hire people to monitor it. ashley: yes. stuart: if you cut back on information you allow to get out there, and you cut back on profitability. he is trying to save his profitability at all costs. >> i think is subscription-based thing might work, if you don't want to be exposed to all the advertisers. liz: facebook will store your data and track you. stuart: the market thinks he is doing okay. market investors only taken facebook's stock down 51 cents as we speak. ashley: a third of a percent. stuart: still at 164. charles hurt is still with us. you've been listening to all this, charles, what do you make of this? how is zuckerberg doing? >> he is doing better than expected. he is dorky and slippery and doesn't want to answer tough questions. stuart: doing better than

expected? are you kidding. dorky and slippery? >> how are you going to possibly survive if you change his business model, he doesn't want to answer that question. there is something else and you raise a very good point, how do you monitor all of this when you have two billion users? the other question i always ask when i look at this, what do you expect congress to do? what are they going to do? they can't even balance their checkbook. they can't even run the va. who thinks they can do something to fix this? but the real funny thing here is, all of this shock and consternation in washington about oh, facebook is doing this, they all knew it. there hasn't been a campaign that has run in this country since facebook was founded that didn't utilize facebook in the campaign doing exactly what they're all shocking and surprised that cambridge analytica did. only reason they're mad is because donald trump used it to win. stuart: that's what makes them mad. >> yeah. stuart: that is why the left is really mad about this because

cambridge analytica used facebook information to go for president trump during the campaign. liz: remember back in 2012, president obama was big data genius. he harnessed the power of technology to get votes. stuart: he was boasting about it. i can't help but ask you, charles, if you were watching yesterday, did you get the impression some members of the senate really didn't understand how facebook works? >> they have no idea. just a minute ago, the congresswoman from california said, she asked him a question. he started to answer it, then she said, i don't have time for a long answer. liz: it was a long answer though. stuart: full disclose sure, ladies and gentlemen, i am not really that familiar with the inner workings of facebook, i'm just not. ashley: it would be like you talking to your grandkids having them explain something to you, how to turn something on. stuart: zuckerberg did just say they were looking into whether or not they should sue cambridge analyst can.

a little background here. they called up cambridge analytica way back in 2015 and said, hey, knock it off. all that information you have got, you got to delete it. they didn't. so now facebook is in a position to sue and put legal liability -- liz: will that appease the regulatory slap-happy democrats in congress that want to regulate facebook? here is what will happen. face bike sass we will be more transparent, we will tell the government when we're breached that will be end of it. stuart: we will get some kind of regulation. liz: that will be it. stuart: you can't go through all of this without something happening at the far end. it is zuckerberg's job to minimize the loss of profitability. liz: and regulation. stuart: and regulation. it is in his interest to keep things as much as they are as possible. that is the bottom line. liz: that is what we're watching unfold now. stuart: charles, do you think it is generally true to say republicans would take a hands off to facebook and the democrats would be more inclined

to regulate harshly? >> i don't know in this environment. in this environment i see republicans acting more and more like democrats every day, i really do. there are obviously flaws and there are real dangers here about privacy and things like that, but i mean it's a brilliant thing that has been created and it's, and a lot of people really love it. so the idea of congress monkeying -- they don't even understand any of it, monkeying around in there, coming up with a bunch of rules and regulations is kind of worrisome to me. stuart: you know, i think here you have a 33-year-old multibillionaire who is actually a genius. you have got to be a genius to come up with a product like this and implement it. so you have two billion worldwide users. the guy is a genius. however, that will rub up badly against older people, politicians who don't have a look-in. the man is unpopular because of who he is and what he is done.

ashley: because of his success. stuart: because of success and youth and age, all the rest of it. have i got a.there, charles? >> yeah. but don't forget the people, the vast majority. i don't know about vast majority. but some of those 2 billion users are older americans who, that is how they get their news now. how they keep in touch with their kids, with their grandkids. i have never been on facebook. i don't think any of my children have ever been on facebook. it's a way of connecting people in a crazy, crazy information world. stuart: jack how, i see faceboos stock down one dollar. that is not a pullback. ashley: nasdaq is positive. stuart: nasdaq is positive. will you interpret that zuck is doing well. >> they're angry on the left, angry on the right, i feel like i'm going home to thanksgiving dinner and left-leaning sister and they both think i'm on wrong side of everything.

ashley: funny. >> why people are so upset, facebook works so well, it is so effective for advertisers, that is what tells you the prosperity is not going away. there will be a crackdown. i would expect there will be a crackdown related to political advertising. but that is not even a top 10 advertising vertical for them. they don't have financial risk. liz: good point. >> plenty of room for common sense regulation that keeps facebook prosperous going forward. ashley: zuckerberg said he believes regulation is inevitable. stuart: i think it is. liz: when they sit at the table what will it look like. he can say that now. what will it look like. ashley: look what they have done with the va and their checkbook and everything else. stuart: charles, do you have any idea what happens next. this hearing today will come to an end in few hours time. then what? do congressman and congress people put forward legislation? is it debated? what is the process here after we're done today? >> because this is an election year, i think between now and the election we're talking about

the most minor window window-dressing at best. i don't think they will get deep into the weeds to this because there are some perils on both sides. you go in there and you start tinkering with political advertising, then you get into the area ever free speech and the ability to make those arguments about politics which a lot of people like to do on facebook. i just, these people are such cowards in an election year. they do not want to get on the wrong side of something this close to a re-election. stuart: that is interesting, isn't it? paul ryan will step aside and retire in january of next year. so he is still there and speaker up until november. we have zuckerberg unlikely to get any kind of regulation through congress before the november election. you agree with that? >> i'm just thinking, yeah the young, fit guy we saw on tv, a little while ago, paul ryan is

leaving, it is time to go. the great grandparents who are grilling facebook guy are sticking around for a while. liz: there are six times number of senators grilling mark zuckerberg than on the watergate panel. stuart: let's listen. >> a good actor, versus less than gadd actor in terms of someone developed these applications? >> congressman, we have developer terms of service and separate from normal terms of service for individuals using the service. >> is the average consumer able to determine what elements would indicate poor or weak consumer protections just by theirwell vision of the terms and conditions? you think that is possible? >> congressman, i'm not sure what you mean by that? >> well, can someone, can the average person, the average layperson look at the terms and conditions and make the evaluation, is this a strong enough protection for me to enter into this arrangement?

look, i'm as bad as anyone else, i see an app, i download, breeze through the stuff, just take me to the good stuff in the app. but if a consumer wanted to know, could they know? >> congressman i think you're raising an important point which is that i think if someone wanted to know they could but i think a lot of people probably just accept terms of service without taking the time to read through it. i view our responsibility not as just legally complying with laying it out and getting that consent but trying to make sure people understand what is happening throughout the product. why every single time thaw share something on -- that you share something on facebook or one of our services where there is a control who you want to share with because i just don't think this is about terps of service. it is it is context wall. not have it be in the background

one time or make up front one time decision. >> let me move along. mr. pallone brought up issue he wanted to see more regulation. we passed a bill in this committee last congress, dealing with data breach notification, not so much for facebook, but for credit card breaches. a good bill. many on the other side voted against it. it was miss blackburn's bill that we should reconsider. you talked about the consent in 2011, when i read the consent degree, it is significant and there is significant fine $40,000 violation per day. if you have 2 billion users you can see how the fines would mount up pretty quickly. in the course of your audit are you extrapolating data for people at federal trade commission so the terms and conditions of the consent degree? -- decree? >> that is, i'm not sure you

mean by extrapolating data. >> you referenced audits are on going. are you making that information from those audits available to our friends at the agency of the federal trade commission? no congressman, as you know the ftc is investigating it and we're certainly going to be complying with them and working on that investigation. >> gentleman's time expired. chair recognizes gentleman -- stuart: ladies and gentlemen, there are developments outside of the zuckerberg hearings are and outside the resignation and retirement of paul ryan. i will give us this, saudi arabia intercepted one missile fired towards riyadh which is the capital of saudi arabia. reuters reports from witnesses in riyadh two loud blasts, okay? that was reported in last couple minutes. that had a market impact. the dow jones industrial average is down 130. it was down 70 before that news broke. the price of oil has gone to the

highest level of 2014. we are back to $67 per barrel. 67.11 we're up 2 1/2%. the price of oil goes up when you have the trouble in the middle of the oil patch. stock market heading further south, not a huge selloff, but down 150 points on the dow jones industrial average. all of this relates back to the threat to this relates to the t to syria from donald trump who said watch out, missiles are heading, they are going to be coming so get out of the way. i think that is what he is trying to say. >> given all the news we have gotten the market hasn't been more effective. since we opened. stuart: saudi arabia, you have a wire service. ashley: they intercepted the missile over riyadh.

people on the ground reported two or three explosions or blasts in the city. where those missiles came from we don't know. in the past they have come from yemen with rebel forces backed by air in. not sure what is going on this time but tensions are rising. stuart: military action and the missile flying over the capital cities military action and we expect more to come and we don't know when it will happen or what form it will take. the president did put out that we telling the russians the missiles are coming. there are all kinds of moving parts going on. the dow industrials dropping a little more, this is the saudi news, the missile over riyadh having its effect, we are down 170 points and oil continues its rise up $67 per barrel as we speak.

a lot going on. it is 11:00 am almost on new york city, 8:00 in california. we are doing things different today because we have a series of big-time stories we are going at starting with mark zuckerberg testifying as of right now. we are monitoring the hearing throughout the morning. we won't for you but if it gets fiery, if there are major headlines you will get them. paul ryan announced he is stepping down, he will serve as speaker all the way through the midterms in november, january, the point he actually retires. donald trump getting tough on syria warning russia as well, get ready for our missiles and moments ago two loud blasts heard in the saudi capital of riyadh. the dow jones average falling 183. quite a selloff that happened in the last few minutes. we are getting that news from

saudi arabia. these stories and more, the third hour of "varney and company" is just getting rolling. first of all we are checking your money. the dow is down 184 points and we have 26 of the now 30 on the downside. the market is selling as we speak going further down. we are following the facebook ceo mark zuckerberg testifying on capitol hill. christie magoon amplify etf ceo joins us now. facebook stock down $1.40. seems to me investors think he is doing an okay job. >> i agree with you. the market is impressed with the kerber, and looking at

congress, it looks like we have 20th-century regulators and legislators questioning a 21st-century technology they don't understand. it is why we have seen a rally in facebook shares. stuart: the market is down 200 points. the drop in the last few minutes is this missile was intercepted over riyadh, the capital of saudi arabia and the two loud blasts which reuters reports from riyadh. we have this push down in the last few minutes. is this correct? >> that is what i believe is correct. we saw the selloff with missiles coming for russia to watch out. the us is talking to saudi arabia about joining this coalition they are forming to put missiles on the ground in

syria. and the missiles that were shot down over saudi arabia, could this be part of the overall scenario. market hates uncertainty. stuart: hold on a second, we are selling off 200 points. we have ryan, zuckerberg and military action in the middle east and donald trump, that was his tweet earlier this morning, russia the house to shoot down any and all missiles fired at syria. get ready, russia, because they will be coming, nice and new and smart. you shouldn't be partners with a gas killing animal who kills his people and enjoys it. blake berman joins us. what do you add to the syria situation. >> it appears the president is announcing an upcoming strike at least potentially and doing so via social media but this is

a president who often doesn't like to telegraph what he is going to do next, he often criticizes those who do just that but the president is a watch out. there's reaction from all across the globe on this please first a statement from the syrian government in which they claim the following, quote, we are not surprised by the reckless escalation from a regime like the one in the united states which has and continues to sponsor terrorism in syria. they say the pretext of a chemical attack has become well-known to everybody and is a flimsy and unsubstantiated excuse to target syria. that is their claim and russia responding directly to that tweet from donald trump, spokesperson for the foreign ministry says, quote, smart missiles must fly toward terrorists, not a legitimate government that has been fighting international terrorism in its territory for several years.

after all of that donald trump after his first tweet sent a couple more about russia in which he threw cold water on the relationship between the united states and russia, an apparent change in tone in which he said, quote, our relationship with russia is worse now than it has ever been and that includes the cold war. bottom line at 11:00 this morning that tweet from the president earlier this morning, he said on monday something, a decision would be made within 24 to 48 hours and we are bumping up on the timeframe. stuart: thank you, back to you when we get more developments. house speaker paul ryan announcing he is not seeking reelection in november. role that tape. >> we have achieved a heckuva lot. you all know i did not seek this job. i took it reluctantly. i have given this job

everything that i have. i will be retiring in january. leaving this majority in good hands with what i believe is a bright future. i will be setting new priorities in my life and leaving incredibly proud of what we have accomplished. stuart: paul ryan will stay as speaker until he retires in january of next year. our market watcher of the hour i don't see that announcement had any big impact on the stock market. >> right on, this is something not that big especially on a day when we have the saber rattling about military activity in the middle east. this ryan thing is looked upon as a smooth transition and not a big thing for markets. stuart: when american missiles start to fly and we expect that fairly soon, when those missiles are launched do you

think the stock market goes down some more? >> we could see the market decline a little bit and could be a good opportunity to take a look at putting new money in the market. if this strike is surgical and doesn't flareup into a direct conflict with russia or air and we could see something similar to the last syria strike where everything was good. it is important to see the aftermath of this strike to make sure doesn't get into a larger dust up. markets are selling off a bit here as a hedge. stuart: so when you get rid of the negative of missiles flying in the middle east and absorb the ryan decision and listen to what zuckerberg has got to say. you think this pullback is a buying opportunity. >> earnings season starts later

this week which we expect to see great earnings, warren buffett says the market is like a weighing machine, in ways earnings, like a popularity contest, all about sentiment, we are seeing sentiment events that are just noise, focus on earnings and earnings look good in the next quarter. stuart: i want to make viewers acknowledge the stock market reacts very quickly to events here and overseas, 20 minutes ago the news broke the missile had been intercepted over saudi arabia's capital city every odd and reuters reported two loud blasts and immediately the market went from a-121 files to-220, the news is absorbed. ashley: saudi arabia blaming this on rebels that launch

missiles towards saudi arabia out of yemen. saudi arabia has been very messy civil war in yemen, rebels backed by a ran, seeing this is a huge threat. >> prior to this event aimed at the oil patch. and that may be the case. stuart: the price of oil has gone to $67 a barrel. that is the highest level for oil since 2014. liz: ashley's report, saudi tv reports missiles from yemen struck different parts. >> 200 points as oil rises as

well. headlines from mark zuckerberg, his own personal information was part of the cambridge analytic a breach and facebook is considering a lawsuit against cambridge. you will get them right here first. the united states is full of great places to live, depends what you are looking for but in the report ranks cities based on affordable medical jobs, and quality of life. all things everybody once. we cover it all in this program. which city came out on top? we will tell you. a new poll found a new wave could be coming in november, younger americans plan to vote democrat. fred barnes with us on that in this hour and texas, arizona, and new mexico sending national guard troops to the southern border to support donald trump's border security mission. brendan john of the border patrol unit is with us next to give us a status report. the third hour of "varney and company," trying to catch our

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stuart: just a little light relief on heavy-duty newsday as we asked you the best place to live in the country, is, do you believe this? austin, texas. the live music capital of the world, colorado springs, denver, which took the second worst spot was a lot of people attracted to austin's music and culture scenes was getting my breath back here, based on affordable, jobs, quality of life. 90 seconds break. texas sending more national guard troops to the southern border saying they will add 300

troops each week until they get 1000 with arizona and new mexico joining in. brendan judd is with us, border patrol union president. brandon, how long is it going to take to get the troops to the border and ready for action so to speak? >> they are going there right now. how long it will take to get ready will not take long at all. it will be a seamless integration in the positions, it will allow us, to put a dent in the bottom line. >> the national guard will be armed on the border. we are told that by the governor. you approve of that? >> i do. these are our troops, they are not taking anybody into custody but they have to be protected and should be able to protect themselves, border patrol,

people taking illegal immigrants into custody, we are still going to be the ones enforcing the laws but the national guard with arms will protect themselves in the event it is needed. stuart: arizona new mexico sending national guard people to the border but we have not yet heard from california. give us a status report on whether or not california national guard will be at the border. >> that shouldn't surprise anybody. company will push back on anything this president does no matter how good a job he does california is going to push back and disgusting to me to think that every single time something comes up where he's doing a fantastic job like on the border something else pops up to distract from all the gains he is making and california wants to continue to distract from that gains. stuart: california will be the

destination, anybody who is illegal you get company, walk across the board and you're in a sanctuary state, border patrol guys can't possibly want that. >> if you look at it a year ago we were talking about we had complete and total control of the border. donald trump did a great job but all those people who were supposed to support him like congress, they failed to implement the policies necessary to keep momentum going. what donald trump is doing now is taking back control of the narrative and will put us back in position that will allow secure the border and hopefully we won't have to talk about this year in and year out. stuart: i remember after the election of donald trump and well into last year 2017 border patrol, border crossings by illegals, the apprehension rate was down 60%. it has gone back up a little

bit. >> it is up to hundred% and we have to look at where the problem lies. and border patrols failed to seize the momentum. we had the momentum. everything was going our way but the people that are supposed to support this president failed to do it. he is saying if you are not going to support me i am going to implement the policy and that is not his job and is disappointing to us. stuart: a pleasure to have you on the show. see you again soon. check the market please. here we go. down industrial down 200 points. a modest gain for bit coin, $6000 per coin. how about gold? it is higher, a flight to safety. that is what you get with military action in the middle east that we have military action in saudi arabia up 1365

on gold, nearly $20 higher. the price of gas $2.67 per gallon but you can expect that to go up relatively quickly because oil is going up on the back of this military action in the middle east. oil got to $67 per garo -- barrel. we are monitoring mark zuckerberg, fireworks on the house side, if we get any you will know about it. red pool lunching first private mission to the moon teaming up with commercial space company, it wants to launch in 2019. the goal is to land on the moon 50 years after neil armstrong, land a red pool on the moon. thanks to nasa we have the opportunity to tour the moon in 4k high-definition.

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stuart: i went to give you a taste of the mark zuckerberg hearings, his tasting questions from congressman czajkowski. they have not laid a glove on him. >> the data that came from facebook initially. i ask for forgiveness. i will work to do better. it seems to me from this history that self-regulation, this is proof to me that self-regulation simply does not work. i have a bill, the secure and

protect americans data act that i hope you will take a look at a very simple bill about setting standards for how to make sure the data is protected, deadlines went to release that information to the public, certainly - in response to the questions about the air when in the investigation you are going to do, you said you don't necessarily know how long. of you set any deadlines for that? tens of thousands, there have been 9 million apps, how long do we have to wait for that investigation? >> we expect it to take many months. >> years? >> i hope not. >> sen. baldwin's question,

yesterday cogan sold data to other firms. you named lawyer technologies, how many are there and what are their names? can we get that and how many are there total? >> we can follow up to make sure you get that information. >> order of magnitude. >> i don't believe it with a large number but as we complete the audits we will know more. >> what is a large number? >> a handful. >> had facebook tried to get those firms to delete user data and it is derivative? >> yes, congresswoman. when we first learned about it we demanded the apps developer and the firms you sold it to delete the data. it wasn't until a month ago new reports surfaced that suggested

they haven't which kicked off needing to do this full audit investigation and investigate other apps that come up. >> what about derivatives? >> we need to complete the investigation and audit before i can confirm that. we get into the systems to confirm that before i stand up here confidently and say what they have done. >> mr. green asked about general data protection on may 25th that will go into effect by the eu. your response was let me ask, is your response the protections that are guaranteed. not just the controls but all the rights that are guaranteed under the general data protection, regulations will be applied to americans as well.

>> the gdp are has different pieces, one is offering controls over every use of people's data, that we are doing. the second is pushing for affirmative consent including a control in front of people that walks people through their choices. that might be different depending on different places but we put tools at the top of everyone's apps that walks them through their settings and help them understand. >> sound like it will not be exact. as we look at the distribution of information, who will protect us from facebook is a question? >> times expired. chair recognizes the gentle lady from washington state, the conference chairman. >> thank you for joining us. stuart: interesting

questioning. i know it is early in the day but i don't think they have laid a glove on this guy. i don't think we will get any legislation until after the midterms. judge napolitano: couldn't agree with you more. congress will never get its act together. this has been like a coronation or graduation speech more than an interrogation. stuart: did you get the impression that on occasion the questioners didn't know that much about facebook. ashley: something we don't understand. i felt that yesterday on the senate side. i don't think they have a grip on what they are talking about. they want to ask how to protect their data. they don't understand the inner workings. judge napolitano: it is extraordinary. i don't have that kind of patience. >> the big hit to facebook revenue was brought up now and

the congressman didn't understand. the question, the eu privacy laws take effect, goldman sachs is a good hit 6% of facebook revenue. stuart: that being said facebook stock is down, all up $.36 as we speak. judge napolitano: a home run. stuart: this is almost over. if you haven't laid a glove on him in 5 hours yesterday, couple hours to go today, he has admitted to some mistakes, accept some regulation. we don't know what kind of regulation. they haven't heard the guy and he's not looking bad either. judge napolitano: a garden party. what authority do they have to get them to answer any questions? he is there, that is totally

relevant. ashley: he accepted. judge napolitano: the garden party. stuart: i want the voice of reason, jonathan koenig, capitalist pig hedge fund manager. i am saying and people around the table saying the same thing. they really haven't laid very e stock is only done a fraction. i think it's coming out okay. >> i think you're wrong. they've gotten him to agree that he needs to be regulated. zuckerberg should get up and leave. all these little dictators, bobby rush, jan schakowsky, they are all going to make zuckerberg the criminal. he's done something wrong. as jan schakowsky said the free market can't self regulates the regulations almost a given at this point. this is between shareholders, users of facebook. government has zero involvement. zuckerberg is essentially sanctioned himself as a the tenure and government comes in. trade to come on, jonathan. the government comes in and

takes over. i hardly think so. >> even their presence has a silencing effect here. even their threats have been essentially silencing effect against the privacy. zuckerberg has to basically explain how a computer works to some of these people. his time is valuable. it's three or four days he's had to spend prepping for this, that is 1% of its entire year. he should be focusing on facebook not, not placating and flexing today's power wanting. tell me i'm wrong. stuart: the word strikes me as a little strong. >> how about political hacks. >> they are power lusters. their object is to get power over facebook. dream for it but isn't there a

concern to the libertarians here about privacy? face it does keep track of your even when you are off the site. that is the zuckerberg revealed yesterday. trade to let other libertarian himself into the question. >> you consented to that. liz: face that didn't tell you they were doing it. >> they have a duty to disclose it to you. if they're going to invade your privacy, they have to disclose it to you. stuart: they didn't. >> i was wrong. tragedy they need regulation? >> no, they don't. they've already recognized it was wrong. the plaintiffs bar would make sure they pay the price for the failure to warn. >> if you don't like it, don't use it. if you think they've harmed you, sue them. liz: that's the point. now we know. >> would need a bill of rights for facebook users. new rules about how they can

sign it sometime now. it's a waste of zuckerberg's time and infringement on a private enterprise right to enterprise. i have to say i'm just about this. tree into your language is living somewhat to be desired. this is a family program. by the way, hoenig, you're the only person we have to reframe the camera shot every 10 seconds because you move so much. i called you the voice of reason. look what you're doing. you're killing me here. >> whenever mr. belvedere calls i'm always happy to be on the show. thank you very much for having me. i'm here anytime. stuart: did you call me mr. belvedere dare? >> stuart varney. i've got confused. stuart: i've got a thick skin. the bottom line is these open himself up to regulation, but it's not going to be harsh regulation. the market thought it was harsh regulation. that's doc would be in the tank. it's down 60 cents at 164.

any further thoughts? >> shouldn't be any regulation. stuart: shall i. stuart: chalets move on? hoenig? hoenig, voice of reason. i don't know where you stand on this. as a libertarian, i am not sure. the president treats this morning watch a russian spacecraft missiles coming. headed toward syria. it's a direct warning that a big strike is on the way. earlier we had a missile intercepted over riyadh come in the capital of saudi arabia in different parts of saudi arabia including the oil patch. i think that's why the market is down this morning. down 150 points. are you with me on this, jonathan? a big impact one way or the other. true until we are looking for some fire there. i just didn't get it. >> is a forgettable representative. ultimately --

liz: 42 republicans. 42 leaving and they need 24 seats. >> this is the largest number from one party in modern history. >> okay. it's my duty to thank jonathan hoenig and the judge for being with us. gentlemen, thank you indeed. all good stuff today. sit still. president trump signed an executive order that strengthens work requirements for welfare programs. the president directed agencies can raise the bar for food and come in medicaid and others to find a way to put more of them back to work and get them off welfare. the president has signed that order. take a look at the big banks reporting friday. this is before the opening of the market on friday morning. jpmorgan, pnc wells fargo, all of them caught in the downdraft today. we are expecting solid profits from them friday morning.

spot if i may be working on a standalone car speaker. it's like a voice assistant for music while you drive. the stock is down. moments ago, mark zuckerberg said it is inevitable that there will be some form on internet companies. we will take you back to the hearing room if anything exciting happens. we are watching so you don't have to. and then we had airbus. wants to add new amenities on its new planes. teaming up with zodiac aerospace to put sleeping areas complete with bunk beds for his 350 model spirits also planning a children's play area with the side, hospital infirmary, bar and lounge area. in a conference room for its jets. next one. a number of young adults living with their parents. now the highest level in 70 years. details on that in a moment. a new poll found that a new wave could be coming in november.

younger people who say they plan to vote democrat. fred barnes with us on that. ♪ we can work it out ♪ we can work it out ♪ life is very short and there's no time to ♪

>> i'm nicole petallides victor fox business brief. stocks are off. 125 points obviously tensions

are serious and russia have escalated down half of 1%. s&p down a quarter 1% of the nasdaq nasdaq to the upside about 2.5%. the best of the bunch here. were also taken a look at and under pressure. goldman sachs, oil also on the move. president trump saying the russia vows to shoot down any and all missiles fired into syria. we know one was shot over riyadh according to a study on broadcast on these reports. oil hit 57.45 at its highest point and not the highest in 2014 as we watch the energy stocks higher as oil hit a three-year high. exxon, and amounts lead the way. united health under pressure.

tree into the number of young adults living with appearances at the highest level in 75 years. this is a pew study and it shows 33% of people 25 to 29 live with their parents. or grandparents in 2016. that is almost three times as many as 1970. how about that. i've got a harvard old which could be coming in november. 55% of millennial zoo are voting age say they plan to vote democrat. that's the way. come on it, fred barnes. executive editor and fox news contributor. do you put much faith in that

study? a wave of millennial speared >> not at this time. no one else may vote. they may not. they do tend to be democratic. but look, it's april. the elections in november. a lot can happen between then and now. historically the out party's going to do well. that's the democrats. they'll do well. talking about these vacant seats, republicans retiring and that also helps the democrats. a lot of these seats are examples of how gerrymandering works. they've been made so republicans can hold onto their seats, even when their open seats. it looks good for the democrats, but we'll see. it looks good for hillary clinton. remember that? >> i remember it very well indeed. all the way out until november 7th. here's another one for you.

president trump tweeting about russia and syria this morning. read it out for viewers. russia vows to shoot down any and all missiles fired at syria. get ready, russia because they will be coming. nice venue and smart. you should be partners with a gascoyne animal who kills his people and enjoys it. that's pretty harsh stuff you'd have you you respond to that? >> i would say that president trump believes in safer rattling and maybe you should. who has gotten further with the north koreans than donald trump? be nice with them, you know, telling them they'll build something in north korea. that doesn't do any good. i think you scared of the north koreans. >> one interesting thing here is your interview house majority -- senate majority leader mitch mcconnell.

you interview him tomorrow. are you going to talk about ending the filibuster and everything goes to run a 51 vote deal. >> i think he likes filibusters. i can ask him and i will. don't get your hopes up if you're trying to get rid of the filibuster. it's been there a long time. it's been nicked around the edges. i think it's good hear it i likes filibusters. and besides common maybe we don't need it now. congress can find its way to gridlock without filibusters. >> paul ryan, the news is just slowly now over at this point. wonderful news day. what you think about ryan retiring but holding the speakership until january of next year? >> you know, this was about the biggest non-surprise of the year. everybody knew he was leaving. he's got the biggest thing that he wanted and that was tax reform and tax cuts.

there was a great triumph. that's why he's here in congress. he's one of those who believed that god sends republicans to congress for one reason. cut taxes. he's done not. so we've got no beef. i've watched your show a lot this morning and there have been some very good people. but you have to remember one thing about paul ryan. he's a policy guy he's not a political guy. he really didn't want to be speaker. he's trying on his biggest policy aimed. you mention entitlement that his press conference and they have to do something there, but everybody knows nothing is going to happen. stuart: fred barnes, thank you indeed. before you move on, i do want to show you face the good we were showing earlier they haven't laid a glove on zuckerberg and the stock is actually a. they went up sharply yesterday. up again this morning.

but after five hours of questioning yesterday, a little bit more to calm, and they haven't heard guy. they haven't proposed legislation, which would change his business model or hurt profitability. he simply said i will accept legislation that they and the stock is at. only 43 cents, but it's up on a day when everybody expected they'd be all over this guy as a hoodie boy in a millionaire and all the rest of it. facebook stock up as we speak. look at that chart. the moment this broke a couple weeks ago, facebook stock came from 190 down to 150. then we've got to hear that it recovers and it's down -- now 165. a couple more stocks to know for you. don't forget facebook right now -- there's the stock right now. move on to go in, please. going is the subject of great speculation anytime you get news

on tde. trade tensions heat up, boeing goes down. at the moment, it's dead flat. same story with caterpillar. trade tension goes down. as of right now, virtually dead flat. twenty-three cents to 19 cents down at 137. news flows thick and fast. the market is off its lows. the zuckerberg cheeriness on a five-minute recess, by the way. before they went to break, regulation is inevitable and the stock would not. how about that. we will be back.

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remember, medicare supplement plans help cover some of what medicare doesn't pay. you'll be able to choose any doctor or hospital that accepts medicare patients. whether you're on medicare now or turning 65 soon, it's a good time to get your ducks in a row. duck: quack! call to request your free decision guide now. because the time to think about tomorrow is today. stuart: one of the reasons people like this show is because we bring you all kinds of stuff. look at this. that is stonehenge. we've got an archaeologist. i don't know what his credentials are, that he says two of the pillars at stonehenge predates humans. >> come on. stuart: in other words, two of them have always been there and then they built around them.

that seems legit to me. doesn't it to you? >> were they standing up or sitting down? >> are they going to crafted with such mathematic perfection? stuart: you heard back from me during the commercial break. >> you asked me to repeat it to make you sound good. stuart: every springtime come a spring aqua next the sun rises in the perfectly through right to the very, very center. the first ray of sun right there. it's possible that these things were put there by nature. stuart: two of them were. not the ones on the top there. stuart: on archaeologist the same -- [inaudible] stuart: i just want to nail this

because i don't want any archaeologist thing somehow aliens came down and put down a mathematically perfect symmetrical creation. >> get out of here. >> "varney & company". stuart: if you start talking about space aliens, think again. i've got to bring this to your attention. five hours yesterday, the stock is up. concluding that they haven't laid a glove on the guy at this point. dream for gary gast alow come our good friend said i was just out stonehenge. confirmed aliens. [laughter] stuart: this is serious stuff here. the s&p just turned positive for

the day. facebook is now up 75 cents. just turned slightly negative fair. the dow industrials which at one stage were down over 200 points. i was a few minutes ago. now they are down 82. the backdrop to all this is as follows. paul ryan will retire, but he holds his speakership all the way through january of next year. the president has threatened missile attack on celia and warned the russians, watch out boys, that missiles are coming. that kosovo city of arad aimed at the saudi arabia. testifying for a second day, there will recess at this moment. right now the stock is up here that is the backdrop to what we've been seeing all day long. and of course the stonehenge, which was a human creation. ashley: probably the biggest story of them all. stuart: more "varney" after

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and it will look good. i made my own way. now it's time to make yours. ♪ everything is working just like it should ♪ neil: look at sears stock. up 9.8%. they will liquidate or somehow other. online liquidation of stores. >> want to buy one? >> no thank you. tesla, $300 a share as we speak. general electric, jpmorgan says it is expensive at $13 a share. they say it is going down to 11. that would be another 15% down. let's see. look at apple, 80% of teenagers prefer an iphone to an

android. because the iphone is cool. ashley: status symbol. stuart: status symbol. that is right. liz: with all the news, you would think market taking more hits. facebook was up 4 1/2% during the senate testimony. stuart: you have to almost take a breath here, to catch your breath with all the news. missile attack coming on syria. missile goes over riyad, saudi arabia. liz: paul ryan. stuart: paul ryan retiring in in january. keeps his speakership. facebook stock is up 60 cents, go figure. neil cavuto. it is yours. neil: stuart, thank you very, very much. with mark zuckerberg testifying before a house committee. but there are interesting developments with all the news elements going on. if you accept the premise going into this zuckerberg was one of the world's richest, if not most

celebrated high-tech billionaires, which is pretty much acknowledged without much debate and he has gotten a lot of tough questioning largely from democrats in the senate yesterday, now in the house today, is he rethinking that affinity for democrats or liberals in general? much of the tough questioning, much of the call for