well-done indeed. >> thank you. stuart: are they cute? , parents should be very proud. >> painter and producer. stuart: why not? ashley: why not. stuart: i like comment about ratings. neil, i'm done. it's yours. neil: you know, that resemble ad hostage-taking. [laughter]. they're adorable. they're like, one question away from saying, and daddy really hates you. [laughter] so does mom. very, very much. this is why we don't have kids here. we don't want to set yourselves up for that. we're vulnerable. thank you, my friend, we're focusing on rainaway market here. we're not focused on all political worries and crosscurrents, like better-than-expected earnings. small business optimism survey out surpised a a lot of folks. we got the 10-year still near 3%.

a little bit under it. home prices moving fast and furious. a lot of people looking, maybe we're missing the bigger story, no matter what you think about the politics, right and left thing. how people play that right now the underlying fundamentals of the economy are off the charts. that is what is being reflected in the markets we have katy freitsa, we have got, who, molly and alan knuckman, chief financial market strategist. is it your sense we'll decide where the markets go, where earnings go, where the economic numbers go, what is leading up? >> fundamental facts. great to be back at hard numbers how well corporations are doing. blowout earnings, that is what drives the stock market. we talked about ignoring policy and politics and focus on the price.

we're seeing nice pricewaterhousecoopers -- price reaction in stocks. after the frush out, markets made new lows and reversed course and was positive. i remain optimistic and opportunistic about the future. to get back to the 10-year note. everybody is focused on%, i don't think that will have impact -- 3%. what will have impact interest rate for home mortgages get above 5% level. that will be a psychological issue. but right now we're a long way from that. neil: katy, the reason they're backing up because of a reflection of a good economy. you don't want them to keep backing up non-stop, but even around 3%, that pales to where they were in 1987. we got as high as 10% but markets don't know where this stops. what do you think? >> well i mean i think the base point is that people have more money in their pockets. the economy is doing better,

whether people want to point that out or not. obviously president trump's policies, policies republicans put through are showing good gains for americans. i don't think it will certainly get worse as regardless of the fact no one will talk about it. neil: you know that is a very good point. i'm looking at a lot of different crosscurrents here and one of the things that continues to pop up are really off the chart earnings to alan's point. you have some exceptions. some guide down a little bit after better than expected numbers but by and large we're looking year-over-year clip of about 30% here. that could change but it is amazing given the only differentiate tore here is the tax situation versus last year prior. how much are lower taxes feeding into the good corporate news? >> i think that is one of the what people are wondering what we're seeing even reflects full

impact. once people get returns and tax reform fully realized in people's paycheck, you will realize greater growth. not just happening in the stock market, day-to-day situation can be volatile. some underlying issue, news jobless claims are lowest they have been since 1969. that is a really tremendous number to suggest it is not just about what is happening day-to-day in the stock market, but some fundamentals with durable goods and how much we're seeing growth there with everything from stoves to airplanes. these are things that are worthy of coverage as well. neil: you mention on the airplane stuff, alan, one of those factors behind the stronger than expected durable goods orders, a lot of people, i'm sure yourself included, were buying aircraft. take that out of there, maybe not so robust. there is concern that spate of good earnings, i'm sorry, good economic news sort of slows. are you worried about that? >> everybody is worried we can't keep up the pace and exceptionally earnings that i

referred to. look at earnings growth projections next couple quarters, they will increase. we'll actually see 20% earnings growth in the third and fourth quarter. so we've got some high bars to achieve but we've been able to do it every time so far. one thing we have to remember. we've done this against a backdrop of a lot of potential crisis. when you talk about a trade war, when you talk about the political issues we've seen and see the market remain stable, we're unchanged in the s&p for 2018. if you look where we are last year, we're double-digit in the indexes. we occasionally give back gains but we've been weathering major, major storms. neil: president talking on "fox & friends," katy, with some consternation about scandals and on going mueller investigation, with michael cohen he did a teeny bit of business with, it bothers him that all this stuff is getting lost in the sauce.

a lot of republicans are bemoaning that, that word is not getting out that they could be imperiled in the political elections. without getting into the political weeds, is that concern justified, so-called blue wave, despite all the good economic fundamentals, people feeling, used to be overwhelmingly against the tax cuts, now more inclined to like them, is that just not being measured properly or is the appreciation of at that not being covered properly? >> i would say the properly the latter because the appreciation of this is not being covered but at the same time i think there is two things. on one end, if you're left-leaning you will not want to cover good things that president trump is doing but at the same time, neil, i would say good news isn't nearly as interesting as salacious, juicy gossip. neil: you're right about that. >> there is reason americans love reality tv. it is not because the people are happy. neil: i always tell people i'm built for comfort.

i'm the guy you come to when you want to know the nitty-gritty of economic stuff. molly, a lot of people are looking at this, you can't really attach the improvement to lower taxes and -- economists that have no skin in the game one way or the other for or against the president, say the tax cuts have made measurable difference in the retail outlook, housing outlook, higher rates notwithstanding. higher rates very much part of that a reflection in improvement of the environment. what do you think? >> i think people attribute too much of the economy to reactions of one president. we saw the problems during the obama pin station. we had a really sluggish economy and media didn't cover that either. they're not doing a good job covering it now. i think regulatory reform should not be under valued. when we talk about earnings reports, corporations have consistency how they're being regulated, some expectation what

the regulatory scheme will be that should not be undercounted. neil: no way to forecast what happens in november but we can talk about the environment and how long this continues, because the president tells us on "fox & friends," he is confident this is just the start of it. alan, is it your sense, looking at numbers and backdrop for these markets, they have been volatile certainly that this backdrop of improving earnings and improving economic numbers will continue through the fall? >> it certainly looks like that. the momentum has been strong. again, this is a multiyear, going on eight, almost nine years of this overall market turn and strength. that is not the economy. we're getting supportive economic numbers and data people don't talk about or appreciate but if we're focused on the market because i do here because its all about price it is essentially been a straight-up positive. we're pausing in the s&p, trading between 2600 and 2800 since november, let's see where

the next move. upside breakout target is in 3,000 for the s&p. let's not say it is over. it is taking a bit to reflect so facts we're hearing every day i think will give the market more confidence. neil: you've been very amusing and waxing poetic when i have, your age is per specific i have, older people, maybe myself included look at 3% handle on 10-year note, that is very, very low, ridiculously low. younger people who got used to 0% interest rates or fed keeping them forcibly or close to that level, this is a rude awakening something they have not gotten used to. how much is coming into play you think? >> i think there is definitely some startling news, especially, people my age or younger may actually not be very familiar with the inner workings of the economy, what means what. why a number is going up and down, how that affects them.

but yes, when you're seeing interest rates go up they might get a little bit of a sticker shock especially with things getting more expensive, houses, cars, a lot of younger folks don't have a lot in savings. neil: yeah. >> i think they might be a little bit panicked but honestly it behooves them to learn more what is going on. neil: they're watching too much cnn. that could be the problem there. molly, is it your sense if things were to stablize at or around these interest rates levels, in other words, stay at or around 3, 3.25% 10-year note and at or around 4.5% on 30-year mortgage, which by an large consensus mortgage for a lot of folks people will calm down? or is the fear we have no way of knowing that? >> i think that would provide some stability but i think what people are looking for is less stagnation in general. one of the things that affected so much of this, people not experiencing wage growth year

after year. something that, would have been unknown for their parents or their grandparents to not see that kind of growth in wages. and that unbride i willing of that stagnation might do more time pack things than some stability on the rates. neil: y'all did a great job. younger than me. appreciate the insight. you kids are coming along. i appreciate that. we're up 170 points. something they were saying was emboldening buyers here. but it's a strong day emboldened by earnings. we have much better than expected numbers like ups, american airlines, microsoft, amazon, they're expected to continue what facebook did last night, chart better than expected numbers. always the guidance that these guys give will be so crucial. we're on top of that and more after this.

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>> they're very upset because mike pompeo, who was again first in his class at west point, top in his class at harvard law school, a brilliantfy, great guy, somebody i get along with very well, mike got through. they thought they had him stopped. the democrats are obstructionists. neil: president can not believe the way his picks are being treated. looks like mike pompeo will get senate all clear in a vote

shortly. not true the va choice who stepped out. blake burman with the latest on all the developments. reporter: allegations for dr. ronny jackson, the president's personal doctor here at white house who he named to be the nominee as next head of the veterans affairs department, kept piling up and piling up for several days. there were allegations of drinking on the job, overprescribing medicine, fostering a hostile work environment. jackson has denied all of that. the white house stood by him throughout over the last couple days but this morning jackson officially announced he is withdrawing himself from that position. when he did that, he released the following statement which read in part, quote, the allegations against me are completely false and fabricated. if they had any merit i would not have been selected, promoted entrusted to serve in sensitive and important role as physician to three presidents over the past 12 years. the president called in to "fox & friends" this morning defending his personal doctor. listen here. >> he would have done a great

job. he has tremendous heart. >> any idea -- >> these are all false accusations. these are false -- they're trying to destroy a man. by the way i did say welcome to washington, welcome to the swamp. welcome to the world of politics reporter: before all of those allegations even surfaced there were concerns up on capitol hill from democrats and republicans alick about a career physician potentially running a massive government bureaucracy. chuck schumer, top democrat in the senate today said there is only one person to blame for all of this. >> dr. jackson went through a maelstrom, and he should tell his patient, i guess, the president, that he, the president, is what caused this problem, by not properly vetting, by making these decisions on the fly, by making sure they don't count. reporter: one position remains unfilled. another position though is set to be filled here, with, at some

point here within the upcoming hours as mike pompeo who he mentioned, president's nominee for secretary of state will get a vote officially on senate floor. expected to pass. though pass narrowly. president holds this up as another example of democrats trying to block his nominees. pompeo will get through though. this puts him in the post, in time, neil, so he can go overseas to brussels for a nato meeting tomorrow. neil? neil: thank you my friend. veterans affairs nominee ronny jackson is out. the question who replaces him. the president seemed to intimate in the "fox & friends" interview someone steep ad little more in politics, that could be senator, congressman, we don't know. to "usa today" reporter eliza collins. what are you hearing? >> we're not hearing much about who will replace ronny jackson, because president trump kind of surprises people. that is part of the problem in

the first place and why republicans were so frustrated about this they feel they can get behind the administration on his picks they need a head hads up. they need someone to defend. they can't have allegations coming up and pulling back on a hearing. they are more than happy to defend some of president trump's picks and they want a head's up. neil: i don't understand, maybe it happened in prior administrations but not so much as here, that almost everybody this administration chooses, i'm talking about the, down to undercabinet-level positions, that still need clearance in the senate, judgeships, what have you, hurry up and wait. they're backing up like planes at laguardia. what is that about? >> well, part of that is politics and that is definitely what republicans and what the president want to be focused on. they want to say democrats are holding up these nominees, which in a lot of ways they are. we saw that with mike pompeo who

will be confirmed. they slow-walked it. were giving a no vote out of committee. neil: that is example. a number of senators cleared him for cia job, suddenly had serious problems for the secretary of state job. this even after learning of his visit with the north korean lead, where you would think you would give the president a little bit more latitude on this sort of thing at this time? >> right. and that is why you're seeing accusations of democrats just playing politics. that is kind of the problem going back to the va secretary nominee because republicans can ban together on mike pompeo. they can say he was chosen as cia director. many of you voted for him. he has met with the leader of north korea. so they're happy to say that democrats are playing politics on that, and kind of force some of these red state democrats to answer for that but with someone like ronny jackson it is much harder. we're seeing sort of a mix, definitely democrats playing politics but also the president mom fating some people that make

it more difficult for republicans to do the messaging that they want to, in some ways they can give. neil: is it, is it your gut sense here, that particularly if the democrats take the house, might be more problematic in the senate, that it will only get worse? >> the house can not confirm nominees. neil: understood. >> they can certainly make the president's life more miserable. right now we're watching scott pruitt, another member of the cabinet, kind of answering to members for his own ethical questions. there is no shortage of democratic pushback. if they take the house they certainly have more power. neil: you're right about that. eliza, thank you very much. referring to scott pruitt, testifying before two congressional committees over allegations of infractions, lavish spending. you know the drill. speaking of spending, people buy stocks in and out of the highs of the session, up 206 points. technology is a very big theme

with the likes of facebook and amd particularly jumping not just beating earnings estimates but annihilating them. wall street likes to see that. wall street likes to see guidance similarly bullish. that has been lifting, technology sector, one of strongest performing sectors on the day. doesn't mean the "fang" stocks are not back with vengance. they lost 100 billion-dollars in market value from their highs. they're clawing back or trying to. more after this. prudential asked these couples: how much money do you think you'll need in retirement? then we found out how many years that money would last them. how long do you think we'll keep -- oooooohhh! you stopped! you're gonna leave me back here at year 9? how did this happen? it turned out, a lot of people fell short, of even the average length of retirement. we have to think about not when we expect to live to, but when we could live to. let's plan for income that lasts all our years in retirement.

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>> welcome back to "cavuto: coast to coast." i'm nicole petallides live on the floor of the new york stock exchange. all three major averages are gaining today, up roughly 1%. we're watching technology, best-performing sector of the

day. as we see facebook gaining 9 1/2% after a 63% rise in profit. we reported the numbers "after the bell" yesterday. a beat on profit. earnings per share and revenue specifically. also seeing that they added 70 million monthly users and that brings the overall base to 2.2 billion. so with that, it is really bringing up the rest of the group. take a look at the amazon and microsoft. amazon is up 3%. microsoft up about 2 1/2%. today after the bell we'll be focusing on key names that will be reporting more tech including amazon, microsoft, intel and of course one of the darlings, starbucks. all three will be on focus right here on fox business "after the bell." it being is doing very well today, and bond yields coming off the 3% rate. all green arrows. neil? neil: thank you very much, nicole. "wall street journal" is reporting that china is ready to hit back if the u.s. gets nasty

and u.s. pulls back on chinese investments, tit-for-tat on tariffs could either get worse or could get signs from chinese leadership, as xi xinping seemed to hint he was open to addressing some chinese tariffs on u.s. autos. greg ip if we have the upper hand in the fight. what do you think, greg? >> as a pure economic matter the u.s. has the leverage. chinese exports to the u.s. are roughly 4% of gdp, for the united states, u.s. exports to china are well below 1% of gdp. they have a lot more to lose economically. basicallies because their exports are larger we have more targets to hit. that doesn't automatically means the u.s. wins in any negotiation. you have to play your hand well, that the u.s. does overplay its hand. neil: there is another cynical view we would be grateful or the administration would be grateful for what would be deemed minor concessions on part of the chinese and it might mean just,

you know, lowering tariffs on u.s. auto companies coming in, for that matter, forcing financial firms to share or hook up with chinese entities to do business in china. those would be significant developments. in other words it would not be as significant as the administration wants but it would be something. in other words, how, i guess depends on each side, how they play it, right? >> that is why the trump administration has to decide what is the endgame, what do they want out of this? they themselves correctly said one of the mistakes prior administrations made with china, allowing to do the rope-a-dope, where they made promises impose two or three-year time frames, never fulfill them. steel is perfectly good example. the chinese has been promising since mid 2,000s to reduce steel capacity. they made three or four undertaking to reduce steel capacity. in that theory, steel capacity rose and rose, creating a problem for the whole world. to their credit this

administration says they're not taking half-measures like that. they have to decide what is their bottom line? what are the time frames and deliverables that they will hold the chinese to? neil: you followed obviously the chinese economy, grew economic juggernaut in the world for some time. i have always, in covering them, discovered that there is no way in heck some of the numbers that they report can be accurate. in other words when they were growing on quarterly basis, 10%, 12%, i know when you go from nothing, i mean the big percentage increases without a question, but even in latest period north of 6%? do you believe all of that? it begs the issue that keeps coming up whether we believe anything the chinese say or any commitments they might make? >> neil, if you asked me that question five years ago i don't believe it. today i'm more accepting of it. they have made good faith efforts to improve the quality of their data. nowadays, when they have, numbers are funny, we don't know which direction are they funny

this are they too high, too low? when you look at things -- neil: do you ever think they're too low? i think there is way to rig currency understates how much the economy is improving but what do you think? >> i don't really know. i don't think they're too low. we're seeing halving in growth rates from 10% to five or 6%. even if that is overstated by one percentage point, probably not overstated by more than it usually is. the trend is still there, a pronounced slowing. this is why it matters in the trade friction. the chin niece economy is slowing. everybody knew it had to slow. it is slowly ma you are doing economy. the easy, low hanging proof is been plucked all people moving from farms to factories, so forth. they have economy inordinately dependent on rising debt to keep going. they are very worried bicycle

will stop and fall over. a trade war with the united states is very risky thing for them. they have high incentive to escape the problem with the united states with a win-win scenario. but at same time xi xinping is basically, pegs all his power to making china great again. he is a very knack -- nationalistic pipe president. if they make concessions that china believes violates their long term national growth it will not agree to them. neil: interesting. he is under enormous pressure to follow up on a commitment he made two weeks ago to do something but he hasn't done that. >> exactly. there was a commitment, for example, to end the requirement that foreign auto manufacturers always enter china a joint venture. that, if they carry through with is very significant but there is my big if, if they carry through. this is where not just the united states but the u.s. allies who also have problems with china, like france, as emannuel macron was making a

point that emannuel macron made many times, all those countries have to keep china's feet to the fire. at the same time, not ins ising on demands chinese can not meet or will not meet. neil: greg, very good stuff. very good read. >> thanks, neil. neil: meantime james comey, he might have heard he has a book out. i read the book. you want a runaway best-seller, you need dirt. you want a lot of tacky, almost classless stories. i'm not damning the former fbi director, but that is the kind of book that sells. i'm thinking to myself, self, all these other administration officials or soon to be former administration officials are they watching this play out? are they looking at 600,000 books mr. comey sold saying, i get that, i'm going to do that? after this. ♪

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neil: all right. finally the entire united states senate is now voting on cia director mike pompeo to be the next secretary of state to replace rex tillerson. it looks like he will get that vote. it will be close but he will have it. as you know rand paul already committed to backing him and a couple of democrats have come forward to do so here but again it will be among the closer votes for secretary of state. all of this as scott pruitt is going through two congressional panel hearings today. they're grilling him on ethical infractions, all that lavish spending. a lot of people are using this as a moment to sort of you know, get him out of there, as it looks like mike pompeo will be back in there. we'll keep you posted. in the meantime amazon reporting after the bell. the company has come in the cross-hairs of the united states president but jeff flock is looking at other things that are more of a worry to those who compete against amazon, mall

stores, malls period, including one now closing in huntley, illinois. hey, jeff. reporter: neil, i have quite a picture for you today. this was 200, i think 279, 279,000 feet of retail shopping paradise. this was the huntley outlet mall, as you see right now this, is the center piece of it, what can i tell you, a picture is worth 1000 words. this is what the face of retail looks like. look at malave can sy rates, first quarter of the u.s., as they prepare to take this center dome down. 8.4% was the vacancy rate, a six-year high at malls. difficult to get folks in the mall anymore. folks that bought this hope to redevelop it, but they don't have any great hope it will be redeveloped as retail alone. adam marshall is with me.

you think more likely to be industrial because that is booming right now? >> we've seen a lot of industrial manufacturing demand here in chicago and along the i 90 corridor in particular. we're working with the village of huntley to find reuse of the property here. we have 68-acres. we were identifying manufacturers, distributors, a mixed use commercial and other types of retail. reporter: pardon us as we watch this, neil, fascinating to see, this is steel construction on this building, almost, you know too much of a metaphor. we see retailers that were in there, just retail is not what it used to be. >> yeah. we've seen a decline in retail, particularly in sizes of stores here in the chicago area. reporter: how did that happen? all of this retail space was malls and retail, what is going to happen to all of that space? >> i think as the growth of

e-commerce is really taking shape here, we're seeing a lot of stores that are reducing their footprint because they can offset their inventory in large distribution facilities. reporter: put up a distribution facility instead. neil, as i leave you, lori, spin around, the debris, that is a weber grill distribution center out there. it is these distribution centers for sales online, that you know, may take the space of the old-fashioned mall. boy, i was hoping to get that building down for you there, but, i don't know. i may have to go over there to help them push. neil: so sad, you know. what do they call it, jeff, i guess progress? whatever. thank you my friend, very, very much. jeff flock. amazon with earnings coming out after the bell. the whole company has been in focus with the president united states. more important jeff bezos, his ownership of the certain "washington post" but how long

can jeff bezos remain unscathed from all of this and president's relatively non-stop attacks. charlie gasparino with that. >> well he laid off recently -- couple interesting things, talking about malls, amazon effect they call it. amazon is is -- they go online, easier. i was talking to a pretty good retail analyst, while that has been the trend up until recently, that is starting to abate a little bit. right now the, the sort of notion that retail is being put out of business by amazon is starting to level off so it is not, the amazon effect, it definitely was an effect, it had an impact on retail, but from what i understand retail companies are doing much better. neil: some of them refocused the malls, right? >> remember, the amazon ehe effect that was really bad is starting to abate, at least that's what analysts say. the other thing, the markets realize the president of the united states, as powerful as he is can not do much to amazon.

we put a stock chart up there, i think the stock is basically back to where it was at its high. what is that? is that february -- neil: maybe about 80 points down from the high. >> it almost made everything back. neil: it had been up 400 points. >> it almost made its way back. even if they took the post office thing away from them, they have some contract, trump says a sweetheart deal, probably wouldn't be that big of a deal for amazon -- neil: made a lot of this, if not for jeff bezos owning the post, the post very critical of this president. >> it was interesting how it was manufactured by some people in the media, and with him in concert to a certain degree around the time that facebook got, came under pressure because of issues regarding cambridge analytica which is a firm close to steve bannon and some of the people that help trump get elected. there was interesting dodge. it was very fascinating that

jeff bezos became the whipping boy the minute facebook -- neil: he didn't say boo. didn't engage the president. >> smart guy. probably won't. doesn't matter. look at the stock price. neil: amazon, other high-tech names are some of the big reasons why the president has had a market to crow about and i'm wondering, the "fang" stocks are down substantially from their highs but they're clawing their way back, as you mentioned in the case of amazon which held its own anyway, but what is your sense? the president is frequently looking at the markets, quoting the markets, that they're the fundamentals, part of the great fundamentals the mainstream media ignores, what do you think of that? >> my sources in silicon valley say these are fundamentally really good companies, facebook included. they have some issues, they will deal with it. it is an interesting dichotomy what is going on in washington regarding jeff -- mark zuckerberg and what was happening in washington -- neil: he was unscathed from all of this? >> he was.

silicon valley types, remember we talked about this, they were telling me he will handle himself a lot better. the company is a lot stronger they will do some stuff. here's the thing, when you increase regulations it generally favors big companies. facebook and amazon can deal with regulation. neil: what about apple? tim cook is one of the few i know call up and have a meeting with the president. he was invited to the president's dinner, but stuck around to talk to the president about trade issues, china, what do you think of that relationship? >> it is interesting, listen i think the president and tim cook, tim cook owes the president a lot, right? because of the repatriation stuff, lower corporate taxes. he understands that. neil: he got a gift wrapped up. >> got a gift wrapped up. trump is all talk, no action on china so far. tim cook is doing okay. silicon valley is doing okay. liberal as they are, they have benefited tremendously from this president. the real question is, you know,

does that translate into campaign dollars? i don't know but i could just tell you that, having a relationship with the president of the united states is not, is not a bad thing. i think tim cook knows that. but it is not the end all, be all. it is fascinating that the street basically doesn't, you know, that amazon for all of that nasty stuff, i mean, i don't remember a company specific coming under that much pressure from a president, prolonged from a president -- neil: i was going back in time, john kennedy targeting the steel industry for about a week before they recanted. >> obama, the fat cats in the banking industry. neil: it was amorphous, just as the steel, had a lot more players than we do today. >> but nothing like this. it came back, and it is fascinating. round one through three goes to bezos over trump. neil: they maybe talked? >> i doubt it. neil: you doubt it.

>> i doubt it. neil: i was throwing that out there. >> do you think trump and comey will ever speak again? neil: i don't know. worried about that my feeling after watching the "fox & friends" interview. >> donald trump should get something straight, it's a warlock hunt because he is a man. neil: thank you for that clarification. >> warlocks, very tall. neil: more after this. [laughter].

neil: we are getting word of 20 casualties at an explosion of a refinery across superior oil facility. several people have been taken to local hospitals. multiple age is responded. we don't know what precipitated huskey oil energy refinery fire 10:00 a.m. thursday. that would be about an hour ago east coast time. bottom line, they are on top of it. no other details are available. we'll keep a close eye on it. this is at the huskey energy oil refinery near superior wisconsin. meantime caravan deadlines getting close. caravan supposedly filled with

2/3 honduran illegals who got through the country of mexico. in fact some cynics are saying escorted by mexican authorities to get to the border to create a dust-up. the president threatened deportations those who try to cross into the country. beefed up national guardsmen on the border in case this would get to be a problem. so we're watching all of it. as you know the supreme court right now is looking at his, the president's travel ban. and, it looks like the conservatives just might win out on this. to american-islamic forum for democracy founder saudi jasser. two issues to discuss with you, at the border what the president faces here. it is not a muslim issue but indulge me. he is planning this and addressing this by the troops he committed to being on the border to presumably counter this. this could get dicey, couldn't it?

>> absolutely and i think what we need to learn from all of these examples, be it at the border, be it the travel ban hearing, at the supreme court, are we going allow our commander-in-chief his constitutional right to protect our country? it is less about the conservatives siding with president trump but siding with the constitution. i think finally we're seeing, the court is, you see how seriously they're taking by the fact that they gave the plaintiff a few extra minutes today. they have allowed oral arguments to be displayed already, available on the same day which is almost, has been many years since they have done that, telegraphing how important the case is. i think it is important, do we give folks coming in the same rights as our citizens or allow our commander-in-chief the constitutional right to keep us secure from ideologies? six countries does not make the 56 majority country as faith ban but idealogical ban to countries that are a threat. that is what we need to learn from this case and the president's ability to keep us safe.

neil: the president's lawyers, at supreme court arguing this is not a muslim ban, this is a travel ban targeting certain groups from specific countries, that list whittled down a little bit but that might have been the sweet spot for them, overcome some doubts even conservative members, if indeed the court rules in the administration's favor, then what? >> well i hope the president will stay the course because this is the first salvo in a long, i think, process of returning us to what we did in the cold war which was vet against ideologies, be that political ideologies like muslim brotherhood. we've seen hopefully secretary of state pompeo, john bolton, folks in place that want to open up a discussion about the need to declare the egyptian muslim brotherhood a terror organization. if we're going to do that, we need to start vetting globally against jihadists. we have not begun to do that, when the left politicizes the

jihadism. it is not being against islam or islammism, but. where the identity left has completely falsified the argument calling it a muslim ban. now they're saying 2.0, 3.0. it is nonsense. they're holding the president accountable to rhetoric he had in the campaign versus looking exactly what he is doing in policy as a president. neil: but i could see the president emboldened by a decision in his favor here. some of his critics would argue he is going to jump on that as justification for tighter muslim-only ban. you heard that all before. what do you think? >> we can't let fear-mongering from anyone realize that conservatives will hold our president accountable to our constitution. so we can't say, well, because he might do x, y and z -- i hope he becomes more firm in his opposition to islamist immigration. we should not be welcoming folks that have theocratic lens viewing the world into secular

liberal democracy. i hope he feels more confident doing that but i yet hope he doesn't start talking again about a muslim ban or islam, et cetera, but rather islammism, and jihadism. neil: ultimately they will settle on travel restrictions. we'll see where it goes. zuhdi jasser, thank you very much. good to see you again. dow still up 200 points. michael pompeo vote still underway. prospects for pompeo also look good. we'll have more. ♪

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edward jones came to manage a trillion dollars in assets under care by focusing our mind on whatever's on yours. neil: all right, it shouldn't be this way for the secretary of state picked. just to get to this point, the cia director is expected to be confirmed and it might be close to the end. they are mostly true and is expected to clear that hurdle. we will keep you posted on that. again, michael pompeo to be the next secretary of state of the united states. a lot of those prospects buoyed by news of his trip to north korea and kim jong un. we are also on top of the scott pruitt epa paradigm: a

demeaning before two different committees they want to know about spending. also on top of the dow right now. up about 220 points with about 80% of the company is reported as far with earnings estimates about 85% beating revenue estimates. this is interest rate did cross to 3% threshold and remain over that threshold. that is a big, big worry. i'll are that might be void by better than expected economic news. small business optimism was multiyear highs. economic momentum the president was alluding to a "fox and friends" this morning, is that the undercurrent here? is that the good news the markets are choosing to focus on and not all of a sudden the political drama. market watcher aaron gates, price waterhouse cooper and noss but not least, it seems to be the fundamental stuff going

right now. >> you have the yearnings mentioned that 80%. we are still just about a third of the s&p 500 companies so far. with the three are the 10 yields coming off of 3%. every time make talk about the higher borrowing costs i got a million messages saying please, i traded in the 80s. neil: you thought it was mine because there's so much younger than i am when i try to recount the stories. a lot of people said it wasn't the end of the world. it's a lot higher than the levels now. >> i bought my first piece of real estate with dave 13% mortgage. neil: 13.5. you and me both. i also walked six miles to school. both ways.

what you make of this? i always tell people that it really depends on your perspective. for young people who have never known this, it is charting to see rates document. for older folks, this has been uncanny. i can remember about were so not really alarmed. >> most investors still have a lot of optimism. so as we reevaluate and shift between our bonds and equities, certainly the higher interest rates may make them more attractive because you're getting a decent yield. the concerning thing is that the spread in the yield curve is still incredibly flat, even compared to year ago. neil: by the way, michael pompeo -- john mccain is not there. 57 tryon 42. he will be our next secretary of state. >> one thing we've also looked at justin first-quarter earnings as i expect nations, not only do

we have this great rate, which is pretty normal, typically 80%. the company is report earlier the ones at the end of earnings season low to the average. but what isn't normal -- trained to relate to build the drama. what isn't normal is earning expectations have increased already. we started the earnings season at 17% expected growth and now we are almost a 20% expected growth for q1, for the s&p 500. that increase this fast in the first two weeks with the main season is actually big and so that is more noticeable for us that the companies are not only doing incredibly well, but even better than we expected. neil: that sets a high bar going forward. >> no question.

>> amazon is treating earnings. it underlines your point it is actually not as crazy as it sounds. the stocks are priced for perfection. if they don't keep growing and growing in and surprising us to that extent. >> i was in the tech sector is one of the more vulnerable sectors. they are trading higher valuations and when you look at expected growth, and slightly above the market average. neil: someone should tell the market after every time they come up with a particle of good news, they bit them out. >> we have to remember the stock was down 18%. neil: when you get volatile swing the tech sector is linked to be one of the more volatile sectors because they do have the valuation versus some of the other set yours.

neil: the expectations and tax cuts went into effect. we were curious to see the effect that would have and three were quarters of diverse as the year before when we didn't have the tax cut. then what? >> taxes have been help in the first quarter. if you look at some of these common more than the bottom line, which means how sustainable are those margins and that's what means we start to focus on, which as you can cut costs only so much. you can drive revenue. if there's an expectation you continue to deliver eps. i'm not talking about buying back stock, earnings-per-share. how do we do that? one of the things you see an uptick in his m&a activity. year-over-year in the first quarter. we see a lot of mergers and acquisition activity because companies are trying to buy margin and actually expand a third of the acquisitions and mergers. that is very bullish. a lot more demand. >> indeed.

i do think just thinking about categories, when you are talking about this kind of margin being squeezed, we did hear that actually from caterpillar and we heard that from 3m. the first big earnings day we had was quite down and both of those companies going forward is going to get worse from here. neil: do pay attention to any of the political noise? "fox and friends" of my colleagues this morning and he was just angry at the world in a creat the whole investigation and all of that. but does that noise get in the way a pretty good fundamental stuff going? >> you try to do your best of whatever noises going on, and analysis of how this is actually going to have an impact. neil: i wasn't clear on that. i apologize.

every time this comes out that looks damaging to the president, whether the person elected president, they worry and a sellout. anything that looks good, they are okay with it. it is uncanny. i'm wondering what you read into that. >> for meantime you have to get used to a slightly higher volatility. we had so many years of just smooth sailing, no volatility. now there's a little more choppiness. i think you adjust very quickly. neil: wall street, obviously there's uncertainty. it's nowhere near. but you like stability. you like the known fact. transfer very pro-business in favor of regulation. wall street likes that. wall street doesn't like surprise and there have been some surprises. headlines political in nature have been very shocking. neil: when you say surprise that could damage a president for the

traded surfing with china. >> all of the above. something they can anticipate and didn't factor into their day at into their data to into their day at the headline whether it be political or otherwise, that tends to upset the market. when the markets are smooth sailing, and they can digest it better. right now as i said before, it's got a little higher. neil: now you're bringing my people into it. we are finding more about the vote in the senate 57 tryon 42 mike pompeo. six democrats voted for him. evan senators who caucus voted yes including heidi heitkamp, joe manchin, joe donnelly, doug jones, bill nelson from the state of maine. claire mccaskill of course. a lot of those from vulnerable state that donald trump one very big. to sort this out for me. a lot of people are looking at interest rate. we talk about the good as well

as your age here. but it's the unknown how high they go and whether the federal reserve gets behind the curve. what are your thoughts just watching interest? >> for me, this is still very healthy. i think it's going to be a challenging year for fixed income portfolio matters. obviously the prices going down. it could be a tough year for some fixed income funds. neil: how about for banks? >> banks to go back to the spread. when you look at the yield curve, it is still really flat. not great news for banks just yet. >> the thing about banks when you look at the earnings of the falloff in lending activity and that is something you count on when you invest in banks. the other thing people lose sight of is they did change the income deduction rules. maybe some people are borrowing money because they don't get the tax benefit of borrowing money.

neil: a year from now when people file their taxes at the tax cuts come as something to benefit corporations and individuals. how will that be? >> .unknown. you know, overall, most people are going to see benefits. that is the analysis. there should be more spending. but certainly we are still trying to figure out how this is going to impact homebuyers. in home sales are hitting record highs. people are still buying homes, putting money into their homes. neil: real estate still looks good. >> real estate still looks good. there's 3.5 months of home supplied new and existing homes to neil: when you are frustrated because you couldn't nab any of those 100 million-dollar condos going up around here. someone beat you to it. russian oligarchs. thank you very, very much, guys may appreciate that. we are also finding out by the

way today that every single republican voted for mr. pompeo come including rand paul who got a call from the president. i think it would really be nice if you voted for mr. pompeo and needed. he is then. more after this. trust that we do what's right for our clients, without the constraints imposed by the traditional brokerage houses. transparency in the way we're compensated. our philosophy is one of service, not sales... that's why i'm independent. charles schwab is proud to support more independent financial advisors and their clients than anyone else. visit findyourindependentadvisor.com this is frank. sup! this is frank's favorite record. this is frank's dog.

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neil: so it could be that i walk out quickly with respect, but it could be that may be because they would take place. who knows. it was very, very nasty with little rocket man and the buttons. this guy is going to get us into nuclear war. let me tell you, the nuclear war would've happened if you had read people. they should have been settled long before i came into office. this is a much different ballgame than if they did have five, 10, 20 years ago. this is a much more dangerous ballgame, but i'll tell you it's going very well. neil: i think the president brought the energy within with colleagues on "fox and friends" in this whole powwow, the sit down with the north korean leader. if it doesn't go well for me so reminded them he might just up and leave. but that is not domestic something will happen and he's

unprecedented and if you think about it, michael pompeo laying the groundwork for this. we just approve secretary of state. what happens now? the president took his hand. former state department officials and lieutenant colonel daniel davis. i'll begin with you. the president laid it out there. i don't think this is getting project to about walk. what would protect it be? already getting the north koreans to agree the nuclear is in the peninsula is a big step in that direction. when you think think? >> i totally agree. the president is the clear dominating negotiating position. he can afford to walk because time is on our side because he has all of these in his hand and the great thing about the situation is almost a matter what team does or doesn't do, president trump can guarantee our security because of the overwhelming military conventional and nuclear might that we have over north korea.

if he doesn't get a good deal, he can walk and that puts the onus on kim because he is under pressure because of all the sanctions. he can't afford to play around because these underpaid. >> i never understand this desperate need for money because i always think maybe because i am the money here at fox that they desperately need money. american money. the more the better. this is meant to placate that and it's worked in the past, work for the grandfather in the past before him. but they do have china as a benefactor. china is no economic slouch. am i missing something here? >> well, sanctions have strangled them. north korea is more protected from sanction in most countries it is the north korean leader is an authoritarian dictator who doesn't care how much his people suffer. china joining some of our sanctions has really helped and that is cut off the north korean

leader from the international economy and a source of money from china in part. so that is helped. it's exciting news is you announce we have a new secretary of state, pompeo. the really bad year for diplomacy. hopefully 2018 will be better. we see pompeo has an acumen for diplomacy. he did the secret meetings with kim jong sunday. they have helped set up a summit between trump and kim jong sunday and hopefully will make progress. kim jong un has not agreed to the nuclear race. he's only agreed to cause nuclear testing, which he has done before. we have to get to the denuclearization object is. neil: he put it on the table as a potential negotiating point. you're right about that. colonel come in many of god looked at the president and when he sensed a risk with this. like i said he's reminding people today i walk away if it's not going well. can you see him doing that let's

say a day into the talk if he feels the north koreans are sort of dumping around and i really coming up with anything, did he really would bleed? >> this is part of his negotiating strategy. he's communicating not in all the heavy cards or entrance and then he's absolutely willing to do that. that puts it back on him to come and negotiate in good faith because he does need some things out of this. he's going to have to give something back. >> i know how the world as a nation that is starving, he will be richly rewarded. >> that is a problem. he will be rewarded. from the sentient perhaps within the people at the top of north korea who are unhappy with

economic situation. this provides him with relief. it could allow him to stay in power even longer, which is not what is intended. the more important objectives are to avoid nuclear war in north korea becoming a full-fledged nuclear power. i agree with it. >> i want to thank you out very, very much. maybe i'm the pompeo and the six democrat voting with the democrats among those approving michael pompeo to be our next secretary of state. one of the closer bus racing, but not nearly as close as we thought it would be. stocks soaring. a little more after this. baby boomers,

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it's the only way to know for sure. for us, it's time to get tested. when this guy got a flat tire in the middle of the night. hold on dad... liberty did what? yeah, liberty mutual 24-hour roadside assistance helped him to fix his flat so he could get home safely. my dad says our insurance doesn't have that. don't worry - i know what a lug wrench is, dad. is this a lug wrench? maybe? you can leave worry behind when liberty stands with you™. liberty stands with you™. liberty mutual insurance. neil: secretary ben carson is to present a big old overhaul of the housing system, including

raising rents and maybe beyond market rates. adam shapiro has more on that. >> the proposal, which needs congressional approval would raise the rent for families in government housing to 35% of their gross income. this would essentially increase the cap on rent from $50 for the poorest of the amount to potentially $150 a month while requiring housing benefit recipients to either work or enter job training programs. national low income housing coalition issued a statement saying the proposal would make it harder for struggling families to get ahead by cutting them off from the very housing benefits and services that make it possible for them to find and maintain jobs. the changes are expected to hit about 712,000 families that receive public housing benefits, the changes in work requirements with half of the 4.7 families.

senior citizens older than 16 individuals with disabilities are exempt from these changes for the next six years. only one of four eligible families currently receive housing assistance. new york city, the nation's largest public housing program, 174,000 receive housing assistance which include vouchers for close to 404,000 families on the waiting list for help. secretary carson says the current system is not working very well and doing nothing is not an option. it's important to reiterate this is a proposal. even carson said it's not final. they expected to be less than what has been put on the table. neil: you would think they would start a revolution here. adam shapiro, thank you very much. the host of making money on fox business, what do you think? it's a tough one. a lot of housing projects in supplemental housing are very expensive. new york, chicago, san francisco. it's like feast or famine.

>> is at market rates are higher right now? the families are household getting the benefits, like even though they have a $40 billion budgeted that maybe this is a way to spread the wealth. if you raise it up a little bit more you can get a few more families than their. that's the idea behind this is to be able to help more by charging a little bit less. the more critical aspect of this is the work requirement. i think that's really important. of course that goes hand-in-hand with what they like to do with food stamps and welfare, but that is really key critical component of helping folks to ultimately move out on their own and not ever have to need the program in the future. neil: a lot of carson's critics en masse as proof the administration is trying to kick people out. that the goal here.

>> again, it so crazy because the towns and cities were a lot of these critics are, people can afford homes. they've created these societies whether at states like new york state are cities like l.a. and same with disco where regular folks cannot afford to live in those places. they want to be very critical, they should look at overarching policies like tax policies, regulations and things like that that are hurting people from being able to afford regular home in the first place. neil: and ben carson was here not that long ago, he talked about the cycle of poverty and medicos generation after generation. a lot of these areas to experience for yourself. you had a great mom to join the service and all of that. it's hard to break that. >> so, so hard to break that. this is her controversy comes in

on whether or not our welfare system is too generous. i know that the late-night comics like to make fun of conservatives since they are poor people live pretty good comparatively. they have flatscreen tvs, they have everything. people in the middle class, the upper, the upper-middle-class and other countries struggle to obtain. you need a certain amount of tough love, but one thing i'd like to see one thing or that tuesday also is some sort sort of real job program. "the wall street journal" had the job score verse just and efficient inefficient in a multi-billion dollars agency around for years, doesn't get the job done. we've got 622 million jobs open right now and they don't need college degrees. a little more than high school. next month a lot of kids in this area will graduate from high school. i'll go to some of those graduations. me and my wife give up shirts and ties and talk to them. a lot of them have blank stares. they're not sure what they're going to do the next day, the very next day.

that's a better thing to focus our energies on over this, which is going to her. $150 is a lot of money to a lot of people. but there's a bigger theme that this is part of. neil: the whole dustup with the kanye west comments and everything. what have you got to lose. he kept saying that. he pounded that again in follow-up interviews talking to a lot of people about the record low levels of youth minority unemployment, et cetera. what do you think about because by and large as a block, if and when they do vote, young kid, minority kids tend to vote democratic and that is a lock and the president in that reminder, what the have you got to loose till seems to fall on ears. >> well, it does fall on ears. we are pretty thrilled with the

unemployment rate. the participation rate i want to see that go up for everyone. unemployment can be skewed just a little bit. it's a question you have to ask yourself. when you allocate your vote come you have to think of it almost is money and it's an investment. if you invest in something for 50 years, if i bought a stock 50 years ago and today was $9, i may want to reconsider owning a stock. you have to think about your vote as equity. i want to put this in a way that is going to benefit me more. i just think that it hasn't. it's been a really poor investment and i loved what kanye west had to say. i love the fact that he came out. the pushback that he's getting is really tough. it is unfortunate. but having said that, i think the republicans have to go further and you have to articulate these things in a better way. for instance, two days ago in the journal, jared kushner had an article about what they're trying to do with prison reform.

talk about the policies as well in what you're doing. they are going into almost 60 years of negativity with republicans of racism. you don't overcome not with a quip or record low unemployment. you overcome not through six distinct campaigning like this prison reform is phenomenal. absolutely phenomenal. consider how many blacks will quit and put in prison. this would be amazing. neil: you talk about how you get back with what you and your wife tried to do and i've seen it and you do. how are you greeted when you go and reach out? it's not with open arms. >> not open arms. the young folks is pretty good. usually we do sin q&a. someone will variably say i heard fox's racist. or me it's like listening, you can talk about anything being racist for any entity. the police department is racist

in the's races. if you want to make a a difference can you get involved in those areas. he joined the military, going to the police department and make a change. any of the stuff you talk about if someone is against duke, biased against you, that is not going is not what a change of use at or not. you can make a change within the entity come within those organizations. not an organization, the organization, that people buy people come to the same way you want to be created, you don't want to be greeted by the way the person next you ask. you may be sitting next to a knucklehead. you want to be greeted as an individual. overall, it is usually pretty good. again, these kids want to be something. they really do. the education system i really think we need to get to what ivanka has been talking about with this vocational educational system for a lot of kids come out and get a good job right away. trying to a lot of them are mechanical. >> over here we used to have

high school printing. all sorts of high schools that socialized in all bad and they don't anymore. drink deep of a a place like germany where mechanics look at how much premiums with pay for mercedes. we pay extra money in their very expensive. neil: thank you very much. charles payne is the real deal. so far, 267 points northward on the dow. a lot of very strong earnings and a lot of it by interest rates that even if they back up, they are not worrying these guys so far.

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special counsel. >> he said was an, mr. president. >> well, it's totally classified. this was a big mistake, this book could use guilty of crimes. neil: the president laid it all out there, just mentioning james comey and he went off a tear calling him a leaker, liar, much worse. comey insists he did not leak any information. michael goodwin, multiple best-selling author as well. they give it to someone who did. is there a distinction? >> in terms of being a leaker and a liar, it is pretty clear that he did leak. there is a dispute of course about whether he had the right to give those documents in the first place to anybody and second mate, who he gave them two. it's interesting to put people on his legal team. obviously to shield him in an

attorney-client relationship. i don't know that that should stand because he has never described them as their lawyers at a time they got the document. as for being a liar, and hillary clinton called her a congenital liar. and when he got a lot of a lot of pushback commies that i made a mistake. i meant to say a congenital voyeur. i think we are seeing some of that by comey. too cute by half. neil: i did wonder in looking at the success of his books, 600,000 copies sold. that is startling. having read the book myself, and there's a lot of stuff that really shouldn't be in it.

into fights and talk about the president's appearance and now i wonder if future officials, former officials depending how it goes will take cues from the success of this book if you want to sell something, make a lot of money, not only do you have to share some, true or not, hard to say, but you've got to go. what do you think? >> i think on some level this is unique to president trump. michael wolff's book, fire and fury has been heavily correct good and a lot of these things didn't happen when a backed away. i'm just telling you what other people told me. comey is singing some of the same things. a reflection of how standards have been debased in our media culture. now you no longer have to stand

behind the things you say. you no longer have to respect confidential discussions, even saying general kelly told them he agreed he should have been fired. that is not true at all. the main issue is obviously assuming whatever he said would be confidential. he is proving himself to be just what jay edgar hoover was accused of, which is collect in on people. and hoover's case, he didn't use it for the most part because he didn't have to. they were afraid of him. he got fired. president trump had the courage to fire him and mrs. the comey we are seeing now being revealed for who and what it is. it's not a pretty picture to thank this man was one of the top law enforcement officials in the united states of america put a lot of people in prison for crimes that are questionable.

missed a lot of other cases for crimes that seem obvious. hillary clinton being the most obvious. his character to me is revealed as not admirable at all. his idea that he is the last honest man, mr. integrity. it is a scam. it has been a think a fraud from the beginning. people who know him have always looked into him with great mistrust because he would turn on you in an instant if it was to his political advantage. neil: i'll put you down as you down as they may be on mr. comey. michael goodwin, very good team you. neil: we are getting word that avert it -- a verdict is in on the bill cosby case. wey will bring that to you when we know more. in up markets,

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neil: all right, we are getting word that a jury will reach a verdict with this extra roll assault retrial for the one ended up being a mistrial. not all the juries could agree. heading back to the courtroom for the defense teams and there there is a verdict in the sexual assault and seven men and five women debating it have come to a decision. we just don't know what the decision is.

multiple accounts here. again, as soon as we know as soon as they come to the microphone to share the decision by the jury, we will of course pass that on. meanwhile, another foreign leader of the united days. angela merkel in germany after the widely successful trip of emmanuel macron of france bit of a charming affect the president has had stood atop the romance developed with the french leader. we see the oddest things. you've written about this from a prior president. this is not a relationship expected to be very promising, but it ended up being quite a bond. not so much of the german later when she comes to town. what's the deal? >> that's right. my wife is french, so she's in france right now. i've now. our governor here since the 1970s except maybe one.

macron has use some of trumps ideas. you can see is not dying that in the white house. he sees some of his political techniques and appeal to the people than some of his dog whistles. macron feels like trump is plugged into some new politics, branding and other things. there is a genuine and trade fair. angela merkel not so much. they are going to be our friends because they want our money. neil: you know, i do wonder sometimes the oddest politicians make the strangest fellows and you mentioned not about emmanuel macron. there is much the same set of the time which started out as a rocky relationship between john kennedy that ended up cementing some major missile deals at the time. but it didn't start out that way. a chilly relationship between the president and germany.

i know there's a big difference there. that won't pan out. i won't be such a negative thing. >> yeah, i will tell you how it is blank of money. europe has grown rich. america has grown poorer. the wealth has moved to europe, china, india somewhat. america has grown forward in trade. angela merkel comes, and macron comes from the need to be nice to europe. it is because they don't want to trade to be renegotiated. they've like what has happened and they don't want to pay for more of their own defense and trumpets and you're going to have to pay for more in nato and they want us to clean up the environment without requiring african nations are asian nations to do anything to reduce emissions. and so, it is all about money. if we pay the europeans money, they like us. if we don't pay them, "the new

york times" will say trump is not very popular in europe. neil: you could make the argument in germany's case. they've got money. france of course has an economic problem. >> which is trumps point. >> i'm just wondering how he's been received. you talk about macron. these are two leaders who didn't have any shot at the offices they are in. yet here they are. i am wondering now whether the new world order is populace outside the mainstream. >> yeah, there is some change. i was just in france a couple weeks ago and in talking with people, there is some change in understanding how globalism and the international economy and how it works good the american federal reserve that just dumped money into europe and south korea at the beginning of an understanding that it's linked to money. the flight attendant will say put on your own mask first and then assist your child or a

trump has had on the point that the united states needs oxygen. we've oxygen. we got up at a rome put a rogue mask on first. we will help cleanup the planet and help keep germany safe and we want europe to be rich. but it's time for america to put on its own mask and he's he's renegotiating de son deals. they need us and they need our money. when you have to pay people to be your friend, at what point is that friendship? >> is a good one. the french president and they still have a dismissive view of donald trump in their own leader. that depends on the article that the editorial came out that way. i am wondering here where this goes because he's been in office more than a year. macron more than a year. it is what it is. they still seem to fight.

>> they want that paris accord. the last time the idea was tested with the american people was in 1997 and that was the byrd hagel resolution and it was very clear. 95 senators including john kerry voted unanimously 95 to zero that we would not require developing nations to also reduce the remission. it makes no sense. it sounds great. the paris accords. once the american people know what's really involved in it, they can buy it. of course france wants america to clean up pollution in africa and india and the like us if we do that. but we've got to get done around feetfirst. neil:.com or thank you very much. a little bit of breaking news i want to pass along. i mentioned bill cosby and waiting for a jury verdict on what has been a number of charges against him for drugging

and molesting a woman. he has been found guilty on all three counts against him. a jury of seven men and five women have been deliberating about 14 hours on this. of course it was after a mistrial in the first trial, essentially over the same issues. the 8-year-old comedian had been violating this woman at his suburban philadelphia home back in 2004. he was charged with indecent assault with a conviction could put them in prison for up to 10 years on each count. found guilty on three counts, which means it is conceivable that bill cosby could be in prison for the rest of his life. we will have more after this.

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neil: the second legal trial was not the charm for bill cosby, even though these allegations against groping women and first were first raised against him a couple years ago. the first trial ended in a mistrial. not this one. he was found guilty on all three counts, accused drugging and violating a woman at his suburban philadelphia home back in 2004. each count could land him in jail up to 10 years. 30 years on the three counts. he is 80 years old. prosecutors used cosby's past admissions about drug, sex, and testimony from other women to boast andrea constand's allegations that he essentially raped her.

her lawyers argued that despite being framed as someone who was trying to take advantage of him, extracting a huge civil settlement, she had raised these concerns gotten sympathetic allegations from number of other women, 60 in total. now bill cosby, guilty on all three counts. trish regan now. trish: thanks, neil. moments ago the senate confirmed mike pompeo as the new secretary of states for the united states of america. we have a stock market as well on a tear, up 262 right now. i'm trish regan. welcome, everyone, to "the intelligence report." the senate finally accepting former cia director mike pompeo to lead our state department after all the partisan gridlock. it is about time, right? the guy has even been to north korea and back. what can we expect from our new secretary pompeo? white house director of legislative affairs mark short is