my favorite royal, charlotte. dagen: i like new yorkers, maria bartiromo, run the city and run the state because they don't understand what the people need. maria: we are seeing people leave as a result. stuart: are you done? okay, maria, dagen and all thank you very much. i want to talk staggering numbers, doesn't matter whether apple beat expectations, the point is it is still growing. it is still wildly profitable and it is by far the most valuable company in the world. oh, good morning, everyone, try this for starters, apple will spend $100 billion buying its own stock, biggest buyback in history. 270 million people subscribe to apple services, that's up 100 million in a year. $13 billion worth of profit in 13 weeks, yes, that's a billion dollars worth of profit a week. $14 billion a year paid out in

dividends, apple is the biggest dividend payer of any company. and here is how the stock is trading this morning after results last night, apple is getting much closer to becoming the first company to be valued at $1 trillion up nearly 4% premarket. now, with two-thirds of the s&p 500 reporting, profits overall are going straight up, up 27.7%, better, 27.7 better than a year ago, trump tax plan has been major profit driver, yes, but, it's driving exodus, wall street firm is fleeing high-taxed new york for low-taxed tennessee, it's been a powerful in the financial business for more than half century, headquarters, chief executive and most new york staff relocating the nashville, the exodus has begun, but we are staying, we have a jam-packed show, varney & company is about to begin.

♪ ♪ stuart: all right, 28 minutes away at the opening of the market, we will be down a little for the dow, 30, 40 points maybe, the nasdaq because of apple will be up a little bit. that's the stock future situation as we speak. now this, politics, robert mueller told team that a presidential subpoena was possible, joining us fox news contributor lisa boothe. >> i would like to hear it, let's go. [laughter] stuart: it's my show. >> yeah. >> i'm not going to stop you. stuart: all this creation of lawyers, legalisms and hate-filled media, that's my opinion, what's yours? >> i don't see how this is so surprising because i would think that mueller would use whatever tools he has in the tool box and also do whatever he wants to do

to try to encourage president trump to speak with him, so sort of seems -- we always knew this was a possibility of him to hang this out. two weeks ago that news broke that rosenstein had told president trump that he wasn't a target neither in mueller or cohen investigation. we don't know what's going on here. i go back to the interview that james comey did with abc where he said that a year in the investigation, if you don't know where the investigation is going, your incompetent, we are coming up on a year here with the special counsel investigation so i think it's really time to wrap this thing up, get it over with, let president trump go on and do the people's work because this has been a huge cloud hanging over the president's head. stuart: he's got the questions, 52 questions were leaked, should answer them in writing, you don't have to go face to face, what's wrong with that? >> if i was president trump i would be careful. you look at the tactics that

they have taken. i would be carefully. i'm not a lawyer so i wouldn't advise the lawyer in legal matters but i would be hesitant to talk to mueller and his team. stuart: you would have to answer the questions otherwise he gets subpoena, have the lawyers write the answers if that's what you have to do. >> take the advice of counsel, here is the thing, we have the house intel committee coming out saying that they have seen no evidence of collusion, you have comey's memos, you are rod rosenstein that was the one that layed out the case for james comey's firing and also the one that appointed a special counsel after president trump did what his memo layed out and was fired james comey, so we have some, you know, interesting and sketchy things going on as well. stuart: i want to talk about

nancy pelosi who gave speech about midterms, i feel we will win, i will run for speaker, i have competent about it and my members do too. >> i don't think her members feel confident about it because we have seen backlash on nancy pelosi but i will say in regard to the house potentially being in play, it certainly is, you have 23 house districts that are districts that hillary clinton won that republicans currently hold. i mean, you look at -- look at the arizona 8 special election, debbie lesko only won 5 points. that's a district that president trump won by 21 points. every republican, i don't think if you're in deep red district, you should be running as if you're 10 points behind. there's not a single republican in this country that's running for reelection that can't take the race seriously, i don't think if you think you don't have a challenger, you do. the senate will be entire different story in my opinion. stuart: lisa boothe, thank you very much. good to see you again. how about this from advertisers,

they are choosing facebook and google over snap, look at snap stock down 19%. how about this? facebook making changes after data scandal giving users the option to clear history and wait for it, they are getting into the online dating as well, nonetheless, facebook is down a little. ashley: did you see the shares of match.com, died on the news unfortunately for them. stuart: who would want to compete with facebook? [laughter] stuart: wait a minute. we almost brought in cristina who is sitting in today for elizabeth, first appearance, i almost brought you in on the facebook dating machine. >> why you will question me how i feel about online dating. we can talk about dating life after. [laughter] stuart: look at after, truly astonishing numbers, iphone revenue topped $38 billion in

3-month period and share buyback biggest ever, $100 billion, john arrived at studio hot from new york traffic, chief economist there, have you ever seen a company with financial power that apple exercises now? >> never in my life. it's unbelievable. the amount of cash challenges gdp of many countries. stuart: you're sitting on a quarter trillion dollars worth of cash and you have 270 million people giving you something every month, that's enormous power. >> incredible financial strength and incredible financial stability f earnings slip up, they have more than enough cash to make shareholders happy via buybacks. stuart: i don't want to ask you about the stock but i will ask you about the stock, it has to

get $195 a share f it does that, it's worth a trillion dollars, is it going to do that? >> it might very well do so in terms of hits keep coming. stuart: do you think they need new innovative product? >> still look at the service revenue rising sharply for the company. >> that's exactly it, 38 billion this past quarter, san franciscos include apple subscription, music, they are going to original programming, doing shows, going against netflix, rumors they will join forces that owns magazines like wire and vogue, if apple does that, you have media right there. stuart: hell of a company. >> financial strength, market power that's hard to lose over time. stuart: now, you are a new york kind of guy, you work in new york, how about this one more hard evidence of the tax exodus, new york money manager alias

bernstein, they are leaving new york, they are going to nashville, tennessee, are you surprised? >> not really, this is a sign of things to come. companies have had it with what they have to pay personnel, what they are paying in terms of taxes, would it be surprising if companies decide to move some operations out of new york city? i have another idea, in order to save money for the federal government, it's high time, we begin to move departments out of washington, other parts of the country where the cost of live asking cheaper, cost of labor is chainer. stuart: some kind of revolutionary? >> makes sense to me. go to distressed area, open up department of transportation. ashley: nissan headquarters from los angeles, straight to nashville, huge success for them. stuart: is that right? ashley: nissan. they did years ago. stuart: if you live in new york city, you make good one, you're a 1 percenter, you're probably

paying 50% of your income straight to -- in income taxes, you go to nashville, tennessee, it's way down from there, you maybe 1 percenter in nashville but probably paying about 35%. ashley: fantastic, the tax situation is wonderful. i moved there from wisconsin which is a high-taxed state which benefits are huge. stuart: lisa boothe moved to new york? >> i know it's insane. the first check i saw i almost threw up. >> i'm freaking out as well. stuart: where did you move from? >> i was living in the uk. stuart: you were? ashley: that's not cheap. stuart: let's wrap this up with the look on how the market is going to open. this is hardly a selloff, we are losing 30 odd points for the dow industrials, next case, the military says we are going to see self-driving vehicles on the

battlefield very soon. i believe there they are. that's the kind of stuff we are talking about. i hope we are first with driverless vehicles on the battlefield. the fda cracking down on e-cigarette makers which are making products look like candy and kids' food. left-hand side, nicotine liquid, on the right-hand side can of whip creme. can yes west out with new video on why he likes president trump, he's taking a lot of heat for supporting the president and he's not backing town. next charlie kirk, he's right there. we will be back. all in one place. ♪

stuart: the pentagon asking military bases to stop selling

zte smartphones, this comes as our top trade guys head to china for big negotiations, what's the concern over these? ashley: concern is that these phones could be used by chinese government to track movement of u.s. soldiers so the pentagon has said, right, you can't buy these particular phones which by the way are not that popular in the u.s. but they are the third and fourth largest smartphones around the world so for bases in germany, a lot of the services used phones, the pentagon is banning troops from buying on the base or places near the base but in personal life they are free to do what they want, they are urged vigorously not to invest in the phones, by the way, they are trying to stop down, clamp down on the fitness-tracking apps the soldiers may have because, you know, you could track the movement of troops. stuart: you can track anybody. how about this one, kanye west explains what exactly he likes

about the president, roll tape. >> half of trump does i don't agree. >> what do you agree with? let's get that out. >> just the ability to do what no one said you could, do to do the impossible, it's the most inspiring thing to me. stuart: it was a long tape, by the way, joining us now charlie kirk, charlie you met with kanye i believe it was sunday, give me picture here, do you think we are seeing split in black vote which previously has gone 90% plus to democrats? >> i sure hope so large in part for candice who i work at turning point usa and people like kanye west, the culture significance what he has done here cannot be overstated. he praised the president and unlike other celebrities he did not apologize, you have seen other celebrities start to do but they back off almost immediately because the mob comes after them and, in fact,

he's doubled down, he tripped down, i'm not allowed to say that, i will tweet out a picture of me wear a make america great hat again, the black community votes 95% for the democrat party. democrats and politician that is have held back the black community for the last years, this is long overdue and opening up a conversation which is healthy for the black community. stuart: do you think that kanye west and what he's doing can actually change votes? >> without a doubt, yes, kanye west is one of the few culture icons in the black community that can say this without anyone trying to cat gerrize him, he has been believable cultural cloud. not to mention he's married to kim kardashian, i think it can have real impact and he's opening up conversation, you see other rappers and other artists echoing the same sentiment. stuart: was candcie at the

meeting? >> she's a force to be reckon with. large in part thanks to kanye who mentioned her on twitter, that's the beginning of this entire conversation, he said i love the way candcie owen thinks. she got a bigger platform and wow, she's talking about being a victor and not a victim. she's an extraordinary story, a culture warrior this is the type of stuff that needs to happen because there's this rule, whether spoken or unspoken that if you're a black rapper you're not allowed to say good things about a conservative or president trump, but, hey, it was president trump that used to be the icon of the black world, this is very healthy and hopefully, you know, this will help move the vote towards equilibrium not 95%% towards democrat party. stuart: thanks for joining us,

sir. where are we going to open the market, no change from from where we were a few minutes ago, looking down about 40 points, down about 2 for s&p, small gain for the nasdaq. president trump says he's considering starting a space force, not sure exactly what he means by that but you'll hear what he had to say after this

>> we are actually thinking of a sixth and that would be the space force, does that make sense? the space force, you probably even heard that. i'm just telling you now. this is perhaps -- because we are getting big in space, both militarily and for other reasons and we are seriously thinking of the space force. [laughter] ashley: you look at the faces of people and they're like -- stuart: just chopped it out there. a space force, okay, any thoughts on this, ash? ashley: he says russia and china are beating us with capabilities in space, he said that's going to be the next area for conflict and he may well be right. stuart: what would a space force do, astronauts out there. ashley: with guns. >> that's a big opportunity for the united states.

stuart: true, remember when ronald reagan proposed the missile shield star wars, it was ridiculed. that's exactly what we have ended up getting actually. wouldn't surprise me 20 years down the road to have a space force that actually does something that works. ashley: uniforms. [laughter] stuart: the pentagon maybe ahead of the curve when it comes to making self-driving vehicles. on the screen those are vehicles they are trying to develop on self-driving. ashley: they believe the military that self-driving vehicles such as the ones you're looking at will be first on the battlefield rather than public roads and autonomous vehicles because the army says that soldiers are most vulnerable when they are using these types of vehicle on the battlefield, they say 52% of all casualties comes from delivering fuel, food and other supplies so makes sense to use autonomous vehicles to go into dangerous areas, they are looking at remote control

tanks which will be operated by some guy with joystick somewhere, i'm sure, the fear there is what if you hack into one of those, you can do a lot of damage with the tank. the whole autonomous vehicle has a lot of applications for the military. >> they have been doing this for a while, since 2004. not had a competition since 2004. not everybody supports this. i know that you talked about this on the floor, you had google petitioning against companies working with the military because they don't believe it's in the best interest of people. stuart: i'm sure you will agree with me, cristina, that what google employees saying we will not defend america it's disgrace. >> giving an opportunity to discuss both sides, i think right now i can't say e -- i agree, we should be discussing whether machines kill people. well, well, welcome to the show, cristina. stuart: i don't know what you're

doing tomorrow. [laughter] stuart: seriously, the dow industrials will open in 4-minute's time and down 50 points. we will take you the wall street at the opening bell right after this your company is constantly evolving. and the decisions you make have far reaching implications. the right relationship with a corporate bank who understands your industry and your world can help you make well informed choices and stay ahead of opportunities. pnc brings you the resources of one of the nation's largest banks, and a local approach with a focus on customized insights. so you and your company are ready for today. at crowne plaza, we know business travel isn't just business. there's this. a bit of this. why not? your hotel should make it easy to do all the things you do. which is what we do. crowne plaza. we're all business, mostly.

>> after 15, 20 seconds to go to open this market for this wednesday morning.

we're looking at a small loss right from the opening bell. but as we always look to say in this volatile age we have no clue how the market actually closes at 4:00 eastern this afternoon. all right here we go two seconds to go. bang there we are. it is 9:30 eastern time off and running and we're down a little bit. yes. not much. up four point down four point okay a mixed opening. no clear trend as question get going although i do see a lot of red among the dow 0. how about the s&p 500? how is that open this morning? same story, down just a tiny fraction, how about the nasdaq now that's the home of the technology stock, and we've got a until that index o.c. and they are, they're up just .03% so i'll call this a dead flat mixed open. got it. the yield on tenure treasury still away from the 3% mark 2 as we speak. apple up for business with really good numbers yesterdays and back to that in a moment but

let me tell you now the stock has opened it up about $5 1.74 more on that in a second. facebook they're making changes giving users option to clear their history. and they're getting into online dating not done much for the stock. more own that in a moment. tesla report their financial situation after the the close bell today. right now, as we walk up to that earnings report, they're it rights pander 300 a share. 299 to be precise. joining us ashley webster and we welcome again christina,ing with to the show. >> thank you. >> don still here and shaw is with us. shaw to you first, huge profits at a big buyback at apple so -- when does it hit 195 dollars share to make it a trillion dollar company? >> i can't say when it will hit now but i thought it would have hit if market hadn't had a pullback since february to get over itself there. i think that stock would have

easily hit 195 by now if we hadn't done that or rally back up to highs easily would have probably seeded that by now. >> well it didn't. so when is it going to hit? >> when the market goes through this phase and -- it consolidates an we go on to the next leg high or or which we're going to do i think probably not for another quarter or two which i'm expecting it to consolidate and for us to go higher then see what happens if earnings continue to be goods and i think a physical probably i say maybe fourth quarter first or second quarter of next year it will get there. >> okay so your outlook is steady as she goes now maybe about slightly lower now but pickup for another willing higher for the whole market comes at the end of the year. >> yes into the first quarter i think we're off to races again. >> okay well you've been right before. let's have a look at samsung not the stock but i've got this to report for you record low sales of its galaxy s9 -- >> s9 plus. for the first two months they were released they sold 707 thowx of theetdz ,000 of the

phones and havingish sales are smartphones is affecting everybody. as you said apple numbers i think were better than what people thought that would be for iphone and iphone 10 but no throughout they're slowing down year over year iphone sales down 3% so no doubt that they are slowing down. so the question is, you know, or for a company like apple, again, is it just a one trick pony got to get into other areas as you mention service -- business is being very strong for if them. >> surely smart phone has run its course. problem is that they can't lean too much. people don't want to upgrade because their existing phone is lasting longer and changes will made are not considered good muff to pay that money. >> why a l is launching cheaper phone and hear about it likely in the summer around rumor is 450 for a phone. better than the thousand dollar iphone 10. >> on for sure that's good. watch out i should say to match.com. [laughter] facebook is getting into online

dating business. they've got peek has got 2 billion monthly users that's a nice head start i would say and imagine that dating business will be very good for facebook. j of course they know everything about us so they'll know what kind of person or partner we're seeking. >> only surprise here to me is they haven't done it sooner but i think timing of this right now on heels of the curfuffle with the dismissiveness officially that he was known in terms of the breaches now, he's basically stepped to say now we're going to do this let's stop looking over here and look over here. i think it is a brilliant move stock is reflecting that. >> online dating company down stharply yesterday and i noticed down again today facebook would make a fierce competitor right there. tesla, reports their numbers late this afternoon. they're burning cash to the tune of $650 a minute i think it is. and still got headaches with model three so right now tesla is at 301 would you buy it at 301? >> absolutely not.

i'm hoping rallies to them and rallies to that and looking to short it todays or at least buy it and earnings will be disapowngting what's happening is that the sales of the s and x are down. the model -- the model three is the sales of good in terms of booking but again not producing enough but sales of their high end margin carpses are actually down. >> that's a big problem but they have to step up production and end of march it is something like 2500 units per day and 10 thoirks by the end of the year that's hard to do. plus the company fairly soon has to start raising capitol. they have to find a money in the equity market or in the debt it market, in order to compensate for the cash burn they have more than a billion worth of bonds within next year, and that's a lot of money. >> what price will they have to pay to borrow a couple of billion dollarss what interest rate will they have to pay significantly higher i would imagine. >> still on that credit rating they pay same amount of interest rate as ge and it makes ten

times amount of revenue if which case they have to pay a whole lot more exactly. >> in that money. all right where are we? we're after five minutes six minutes of trading right now and we are right now down just 16 points. flat to lower, that's the characterize the opening. clorox they're spending more on raw materials, more on logistics their stock down about 1%. higher sales of prescription drugs that's cvs that stock is down 1%. membership surges at the health insurer humana that gave a rosy forecast so what -- the stock is down 1.5%. better profit at mastercards we're spending more on credit and debit cards apparently that stock is up nicely 2.5%. coarse that is a pure play in beer, lower sales how about that? and taken to the cleaners, down 7%. are they not a canadian company? >> small -- my business school when i was younger was john school of business.

you are a canadian -- >> i'm a canadian. [laughter] >> open show -- we've got a -- >> i know u.s. market. everything goes. >> born in britain. born in canada. born in new britain. flu britain, connecticut. [laughter] three born in britain and home grown, yank. young brands fell short lower foot traffic coming in the door at pizza hut and kfc owns taco bell the stock is down 3%. big rost. attention amazon prime members you can get a monthly box of children books with a subscription of $23 a month. a box of books every month for kids. that seems to me to be a great way of hooking in very young kids into their database. >> that's what they're doing. keep them those device that's

the important thing that's getting mksed -- >> another positive but a brilliant idea bringing in a younger demographic to grow up with amazon get used to amazon is and books into kindle. so it is typical amazon brilliance. >> the subscription model showing how strong it is. everybody is doing a subscription model an now targeting them younger demographic. we all want to pay monthly fees to not worry it be afterwards. >> you have 100 million prime members. 100 million -- all all can get $23 a month kids books doiled that for my grandchildren. >> would you -- did you miepgd about the $20 increase then -- >> not a amazon prime member. brings us to our next -- well done christina. you bring to this a new poll is from deal news. 49 prkt of its readers will not pay for amazon prime. the extra $20 when it impose up to 119 a year. give me a break. >> i stole it from you. i don't believe -- absolutely rubbish. half of the people will say no

to extra or $20 i can't believe it. >> i don't agree -- i believe that this is a false poll. i think it is just rubbish. $20 you're not going to miepgd paying extra 20 otherwise you pay a heck of a lot more for shipping but second day delivery is nothing. >> that's right. what do you think john? >> they'll pay it. go ahead pay it. drop hat, big spenders they spend a lot per year so 20 to them is okay well cheaper overall. >> they buy twice as much of prime membership in second year buy as much as they did previously so tremendous. >> look at snap please, the resign not having the desired effect advertisers spending money with more with facebook and google instead of snap. the stock who is getting really clobbered is down 20%. and a any comment? >> no. they have completely lost in what i call the clone wars with

191 million daily users, i believe -- facebook instagram -- stories have 350 million daily users. and what's up chat i believe has 450 million daily users so daily user growth was only 2.13% in this quarter. that's terribly low below everybody's expectations they only grew 1 million users in the north america area it's a thought it was a one trick pony last quarter is done. >> that's a drop and a half on this snap. okay thank you gentleman. john, and shaw -- good stuff we freerkt you being with us. next case about with the market where are we? we're ten minutes in and we're down 38 pontes not much change. i find this interesting -- video games becoming a professional sport. and some of the best players make millions of dollars. we are talking to the host of one of the biggest e-sports news networks, coming up in our next hour. you won't believe what some of these are actually making playing the sport.

it is astonishing but first robert mueller told trump's legal team that a presidential. subpoena might be on the table. the judge will break it down for us, and he is next. into retirement... and a little nervous. but not so much about what market volatility may do to their retirement savings. that's because they have a shield annuity from brighthouse financial, which allows them to take advantage of growth opportunities in up markets, while maintaining a level of protection in down markets. so they can focus on new things like exotic snacks. talk with your advisor about shield annuities from brighthouse financial- established by metlife.

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by a kohler-certified installer. and it's made by kohler- america's leading plumbing brand. we need this bath. yes. yes you do. a kohler walk-in bath provides independence with peace of mind. stuart: as we said we're plat to slighter lower as we open this market wednesday morning fda says, i'm sorry. let me move on i'll talk to you about united airlines. they're placing new restrictions on pets, traveling in cargo. tell me all about it, nicole, please. >> they've had had pr mixups that you can say an understatement this is all ab new pet policy. they have that two puppy put into the overhead bin where he supposedly with can breathe and then die and mixup where they

basically sent a dog japan instead of kansas so ultimately what they're doing is now having a new pet policy and they're working with the american humane animal rights organizers. you cannot bring on short nosed pets like french bulldogs who can't put them and cargo or strong jaws like mastiff and if you have a small dog you can bring in the cabin and put it with you. but the short nose ones nope. can't they're not taking them. >> try to remember that. nicole thank you very much indeed. [laughter] this one gets to me. anybody who knows me will understand my interest many this story. hotels are getting rids of those shampoo bottles in the hotel room, why? >> could be environmental reasons for it but marriott you've got hotel and a holiday inn getting rid of the tiny shampoo instead put dispensers what next get rid of coffee and free tea as well? >> for environmental reasonses? >> that's part it have they say

that it is cheaper for them and not smaller bottles so 1500 hotels in the united states in north america are getting rid it have to everybody will start doing this too. do you steal them? take them -- >> yeah. it is free. it is for us we pay for it in the hotel room. >> not comment on whether i take -- dispensers issue -- don't tell me you hoard them. >> i take them. >> don't tell me anything. [laughter] trying to get to a serious subject here. calm down everybody. shampoo. [laughter] stuart: special counsel robert muller warning that a presidential subpoena is possible. all right, judge, the gipping of the show, i think this is all about lawyers, legalisms and hate fill ifed media that's it. what do you say? >> you love using the words lawyer and hate in the same sentence. because with i think we're being run out of town by lawyers and legalism. >> so here's the thing.

bob mueller asks president to sit down for an interview and i've been arguing for months don't do it but with president can say yes or no. if he says yes he answers question not under oath. but he answers the questions. won't be one person questioning him but bob mueller several assistance and a bunch of fbi agents and aggressive environment which could go on for days. he says no, bob mueller has authority to ask one of his two grand juries season the president he'll have no opportunity to say no if he subpoenaed. he will have to show up and won't have to answer. but have to show up. the only way he doesn't answer is if he invokes the fifth. something he has condemned when others have done it but it will be a legally. >> can't he just answer those 52 questions leaked to "the new york times" in writing? >> i don't think that mueller would accept that because, in fact, the answers would be prepared by his lawyers. your friends and not by him. >> so mr. mueller qowld say no

you'll answer these questions in person. don't want to do it i will subpoena you. but high and mighty. that is not high and mighty that is a -- legalism. but look i'll tell you the prerogative that government has and here i condemn it. condemn what government can do. in the q and a, mueller to trump, mueller assistance to trump fbi agents to trump, they can lie to him and commit fraud to him. they can wear disguises to pretend to be somebody other than they are, if he does anything like that if he tells one white lie, he can be indicted. >> what do you think would happen in this country -- if president trump is convicted if you want to use are that word of a white lie. a little tech and then try to remove him. that will be hell to pay. >> the cataclysm i think it would appear to be what it is which would be acue and wouldn't stand for it on the other hand a little bit of comfort. the justice department has

regulations that the president could be indicted but could not be tried while in office. >> that's a legalism -- >> but it's not but purpose, hell to pay and indictment to get out of the office. purpose of the indictment while in office is to stop statute of limb limitation but can't divert his attention from running executive branch to defending himself in court until after he leaves office. >> we have 30 seconds tell me about public opinion. i think public opinion is with me on that, not that i'm leading but i think it -- i think that i'm reflected in public opinion. in public opinion nothing can fail and without it nothing can succeed this is not me but it is still true today. get away with almost anything if the public supports you. i do not believe that public supports the removal of donald trump from office. i do not believe that public supports the prosecution of donald trump for a lie about something some bank deal he did 20 years ago. >> thank you judge. i think we're on the same page for that line --

>> you're not careful you will. [laughter] >> see what it's like christina. pnches i'm learning. learning. welcome to "varney & company." dow average is down 18 minutes into the day back down to 24,078 now the story about e-cigarette makers they're marketing their products to children. by making the packaging look just like kids food and candy. dr. marc siegel doesn't like it i'm with him. he's after this. when i meet a ni start by asking questions like: did you understand all the fees you were paying? was your broker a fiduciary? were you satisfied with the attention you were getting? then i explain that being independent gives our firm more freedom to act in their best interests. independence lets us do that. charles schwab is proud to support more independent financial advisors and their clients than anyone else. visit findyourindependentadvisor.com

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stuart: advertisers prefer google and facebook to snap. that's bad news for snap, that stock price is a record low it is down 21% as of right now. the feds are warning e-cigarette liquid makers to stop making their products look like candy. well look at this for a second. s that's a juice box on the left. it's nicotine liquid on the right. that is the liquid that goes into e-cigarettes. what a problem here. it is obvious isn't it now we have dr. marc siegel with us by the way i have to tell you that 8,000 children were exposed to this stuff over the fast five years. dock siegel is with us now. >> under age of 6 which is extremely dangerous. >>let be clear here that's a

liquid that children have drunk took a sip of this stuff and in trouble. okay. it is actually goes into e-cigarettes. that's what you -- what they vapor rise. >> not allowed to have urd age of 18 why fda is shook up about this. drinking this. >> they're going after the liquid they say don't do this. fda is saying it is not a crackdown on e-cigarettes it is a crack down on liquid that goes into it. >> right but it is part of their campaign to get people under age of 18 from not having e-cigarettes marketed to them or sold to them which is illegal. fda has put out a regulation are in 2016 say you cannot sell e-cigarettes with this liquid to those under age of 18 now they're doubling down on fact this liquid as you showed looks like fruit juice it looks lying lollipop one manufacture sells it in -- looks like a lollipop and give you a lollipop with it. who do you think is going to be sucking on that holly pop or drinking that juice in and if you have half of the taste of

this at age of two half a teaspoon you're going to die from it. causes stroke, seizure, it causes coma this is very serious stuff. we make light of nicotine a little bit but it is very dangerous. >> i gave you a hard time yesterday. because i'm not always keen on regulation -- >> we know that who is in regulations -- but over free market kind of guy. but in this case, i'm with you 100%. there's absolutely no way you should be marketing liquid nicotine, nicotine -- with nicotine in it -- and making it look like a child's product. there's no way you should be doing this. it is outrageous. >> sent out 13 letters now warning these manufacturing they have 15 days to comply. by the way, this is the first time on this program that stuart varney has ever admitted he's been wrong to dr. marc siegel because you're never wrong. very rarely. >> so sends out letters say don't do this. do they have the power to say don't do it? we're going to you or take you to courtsome >> this is the feds this is fda could be followed up

by prosecution there's no question. now fda isn't doing that but this is a official federal warning. that you're in violation of a law, of a -- >> look what's on the screen the juice box on the left. they're identical looks like candy juice it is a dangerous chemical shouldn't be drunk. you know, stuart, dr. also believes that e-cigarettes have a role. i have to add that i agree with him on that. cdc is very weary of e-cigarettes we actually think that it is useful for getting smokers older smokers dument smokers to stop smoking. as a transtool but not for kids for kids a gait qai to cigarettes and it is dangerous. >> full agreement. thank you very much indeed. next -- question got proof that the great tax exodus is happening now and happening in real time a big time wall street power house leaving high tax new york and they're going to low tax tennessee. my take on that, top of the

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stuart: let's exposure a high-powered executive at a financial company in new york. you're doing well financially. your king or queen of the hill. but now your limo sits in traffic. you paid a million dollars for an apartment the size of a closet, you're paying about 50 cents of every dollar you earn in taxes. but wait, it gets worse. the new tax law means you will pay even more. you still want to be king or queen of this hill, do you really if some on wall street are done, finished, they're outof here. bernstein has been a power in financial industry in new york more than a half century. they're leaving for tennessee. the headquarters, ceo, most of the new york staff, they're relocating to nashville. this is the start of the exodus we've been talking about. the new tax law clobbers any

high income earners who live in high taxed states, california, few jersey, new york, new york city, forget about it! there is an extra tax to be paid here, the city tax. we've already reported the sharp slowdown in one percenters moving in. now allianz bernstein moving out. look at where they're going. tennessee. in and around nashville a million dollars buys a you mansion. your limo won't spend much time in traffic. you won't be pay anything state income tax at all and your property tax will be way below what you've been paying in new york. plus, here is the biggest incentive. in low-taxed tennessee the new tax law will work to your advantage. in new york it kills you. we think of the new tax law as stimulating the economy, creating jobs, raising wages, and it did you all of that but it is increasingly obvious that the new law actually punishes those states all run by democrats for decade where local

taxeses are the highest in the land. time's up. blue state to red state, high taxed to low tax, the exodus has started. the second quarter hour of "varney & company" is about to begin. ♪ stuart: we take a slight move south. the last few minutes. we're down 50 odd points, 24,040. appeal leads the dow. it is a dow stock. very strong results. the stock is up $7. that is up 4%. mastercard hid another record. bigger profits on more consumer spending on credit and debit cards. facebook making changes. they have the option to clear their history. it is getting online dating. look at snap, record low.

getting multiple downgrades today. advertisers not interested in the company and users not interested in the redesign of the snap. nancy pelosi with a bold prediction of midterms. we will win. i will run for speaker. i feel confident bit, and my members do too. pelosi and democrats are running against the tax bill. here is what vice president pence had to say about all of this. >> anyone who says the $1000 in working families south of touch with the american people and should never lead the people's congress again. stuart: joining us now axios editor-in-chief, nick johnson, frequent guest, valued guest on this program. >> morning. stuart: nancy pelosi seems like she is dead certain he is going to win. what says you? >> i think there is to surprise that nancy pelosi thinks democrats will win nor is there any surprise the democratic

leader in congress thinks she will become the democratic speaker in congress. a lot of polling says this is pretty good year midtermwise looking for democrats. there is a chance they will take back the house. even if they do take back the house, her speakership is not assured. part of with she is trying to say yesterday, stamp down on democrats saying there needs to be new leadership in house. nancy pelosi is not very young democrat. some younger members of the party, some running in the midterms, if democrats do win they would vote against her this is not a fight over. nancy pelosi is stepping in the ring saying she will fight it. stuart: you're in line thinking democrats have a good, strong chance of taking the oust? >> yeah. stuart: but you don't think they will take the senate, do you. >> the senate is a lot tougher. the polling we've looked at has about 10 seats for democrats that they're in danger of losing. 10 senate democrats that are in state has president trump won. we're going to put another poll

out in the field next week looking at those states again. those are places republicans could pick up. on flipside, only three seats where republicans are looking a little dangerous. that is tennessee, arizona, nevada where they might lose some but i think the deck is still stacked slightly in republicans favor on the senate. stuart: more than 60 conservative leaders signed a letter demanding an end to censorship of big tech like facebook and google. they argued some of them banned conservative content from their platforms. what do you make of this? >> exclusive on axios.com, we have had facebook's response. jon kyl, former member of leadership in senate, look at this issue, conduct audit of systems and process facebook has to see if it marginalizes or exclude some conservative voices this is a firestorm exploded couple years ago, someone reviewed content for facebook there was bias among humans

looking at content against humans. none of humans are still there. jon kyl will look at the process and robots that show up in your feed if it is being mean to conservative views. stuart: nick, i know you hate to come down one side or the argument, my opinion, that googles and facebooks of this world edited out or suppressed conservative opinion. do you agree with me. >> google does not have people looking at content but at facebook there were human editors. one. human editors said in the bombshell that humans taken a harder line on conservative views. i think what is important here, that senator kyl, who is well-respected among republicans will look at the process himself to see what is true. stuart: i keep pushing. gets knee mo where. >> not going to do it. stuart: you're all right, nick. we like you. thank you very much, nick johnson. >> thank you. stuart: still on big tech, i want to bring in scott wren, wells fargo senior equity

strategist. scott, apple rallying on huge profits. that is pretty much the same story we've seen from facebook, from microsoft, from google, from amazon, extraordinary performance. doesn't seem like big tech is stopping or slowing down at all. does it? >> stuart, really technology, consumer discretionary, those two sectors, i don't care what time period you look at, six months, 12 months, year-to-date, those sectors are up there, leading the market big names you guys are talking about, they're inn those two sectors. technology i think this year, part of the concern is that earnings growth in 2018 will probably actually be a little less than it was in 2017 but certainly the results in the first quarter, tech has really turned if some really good numbers. and have financials and consumer

discretionary. they are far above with the street expected and above what we expected as well. stuart: i have to concentrate on big tech for a second. have you ever seen four or five companies develop such enormous financial clout all around the world? because i haven't. i'm older than you. i have never seen anything like this before. >> tell you the customer base if that is the right term to use, i'm not sure it is, but you know the customer base is just huge. it is in the billions for a couple of these companies. i think the widespread nature, usage of these products and services a lot of these companies have, it is global. i have never seen anything certainly in the 35 years i've been doing this. there has not been anything like this. a couple of firms like microsoft, certainly obviously is has again a total game-changer torture plus years. it does not happen often but it

is happening now. stuart: big picture viewers who play indexes to play the whole market, are you still bullish? you were still last time on the show? >> we are stuart. i think right now, as we arced, i argued the last two times i was really on your show since february 2nd, since the employment report covering january came out, would i argue that traders are in control of the market. it is about trendlines, moving averages, all those sorts of things and right now we're stuck in a range really. the 200 day moving average comes in at 2610, 15, something like that in the s&p 500. there is a big trend line coming off the january 26th record lie that comes in at about 2685. so we're right about in the middle of that range right now. i would still argue traders are running this market. clearly with this employment number coming out this friday, that's something that could move the market. we continue to have, you know, a lot of earnings news coming out

but i still think the macrofactors running this is what is the fed going to do? are we going to have wage pressure, cost pressure, general inflation? you know those are the things that will really determine what the market is going to do over the course of the next 12 months, i feel. i have to focus on priorities. you know, right now, just lately, is it peak earnings, which absolute number is no. would i argue that you know, the fourth quarter, our last year, 11.4% growth could have been highest until we get out of the next recession? sure. but, you know, there is a bunch of concerns out there right now. tough think the goal, you have to prioritize. stuart: there is always concerns. there is always concerns. >> there are. stuart: scott, i have to go. thank you very much for joining us. >> stuart, have a good day. stuart: how about this, budweiser introducing a new beer inspired by george washington's recipe. president washington wrote

details in his personal military journal, 1757 the freedom reserve red lager will be brewed by budweiser's own veterans. a portion of the proceeds will go to charity, providing scholarships to military families. ashley: samuel adams has his own beer. stuart: well-said. former secretary of state, he will not be with us, we're dealing with it next, secretary of state john kerry tweeting defense of the nuke deal after he benjamin netanyahu says iran is brazenly lying about their true ambitions we're on it. the race for the senate seat in ohio. is that the key to winning the race, a trump recognition, a trump endorsement? mr. renace will join us later this hour. this may be new to our viewers but it is huge business worth billions. the world of e-sports, video games and a new channel

dedicated to all things gaming has just been launched. we cover it all. it is the second hour of "varney & company." ♪ we see two travelers so at a comfort innal with a glow around them, so people watching will be like, "wow, maybe i'll glow too if i book direct at choicehotels.com". who glows? just say, badda book. badda boom. book now at choicehotels.com

stuart: we're down 40 points on the dow industrials. flat to lower how we would characterize the day. canadian brewer of beer that is, moulson coors, down eight bucks, that is 11%. demand falling for their product. >> yum brands, pizza hut is taking it on the chin. down 5%. this is may be completely few to many of our viewers, it is certainly new to me, we're talking about a business worth

billions of dollars. a new network called gamer world news just launched. it does all things gaming. like a news network for gamers. got it? we have with us, we have gentleman, captain robert steinberg. you're one of the founders, hosts on this new network, are you? >> i'm one of seven hosts on the network, yeah. stuart: are you competing with me? [laughter] >> i wouldn't exactly say we're competing with you, per se. i think our audience tends to lead a little bit more millenial. stuart: millenial. whoa, that is a slap. >> there are millenials watch this show too. stuart: what have you against old people? >> absolutely nothing. stuart: i want to get to grips what you do. you have a news cannel. you will report on e-sports. >> sure. stuart: what i understand individuals competing against each other in public playing a videogame.

is that it? >> that is a little bit on the right track. gamer world news is about anything that has to do with gaming, technology, oring in like that. one of the things we report on is e-sports which is this sort of electronic gaming competitive scene inside of gaming that could be anything like league of legend, counterstrike, these giant tournaments these players are competing in. stuart: when you say giant tournament, in some parts of the world they rent out a stadium with 40 or 50,000 people, put up some huge screens and have a couple youngsters going at it competing on these videogames. is that accurate? >> you're absolutely right. league of legends, championship series takes place here in the staples center in los angeles. last document years they sold out entire staples center. tournaments could be anywhere like $24 million which was the international last year, the winning team, team liquid in

europe, took home 10.8 million split across the team. stuart: i understand there is a 13-year-old young lad, he makes millions per year playing fortnight. that is a game i understand? >> fortnight is probably the most popular and the most successful viral game out there right now. fortnight garner ad gigantic following, following up rise of battleground and battle royale mentality inside the games really picked up. stuart: now i can go online and play one of these games, and compete with someone in another country. i think i got that right. how many people, at any one moment are in gaming e-sports? are we talking tens of millions? >> we are definitely talking probably in the hundreds of millions. i think you're looking at roughly 143 million people worldwide that watch e-sports.

now vast majority of those are in asia. so about 51% of all viewership of e-sports is in asia but you have about 23 to 24% that take place here in the states which is easily tens of millions inside of our country. stuart: you will look like a news network. you will present news on e-sports champions, that kind of thing, new games, that is what you're going to do. what is the delivery method? on the internet? that's it? >> we deliver it on the internet. we're on roku, apple tv. can go to our website, gamerworldnews.com. anywhere you can access one much our apps we're probably out there, i will not give you a commercial. you're competing directly with me. i don't appreciate that. granted you're going after a different market but what do i have to pay if i want to receive this channel, this new one, what do i pay? >> it is 100% free. we're there to deliver top of

the line news to any gamers that are out there. stuart: captain rob steinberg i think you did rather well on this program, even if you compete with me. we welcome you to come back. we're fascinated. so many people have no clue how big your industry is. so thanks for coming on board. come again. i would like toe zoo progress. thank you so much, sir. >> thank you so much. i appreciate it. stuart: before you move on, do you have a comment? >> you can chat on gaming, i know a couple, canadian, american, met through i am -- gaming. ashley: with headsets on. stuart: talk to each other. >> lucrative business too. stuart: i'm just getting used to it. kanye west making headlines for support of president trump. now coming under fire for his latest comments on slavery. we'll tell you all about it after this. ♪ you know what they say about the early bird...

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stuart: look at clorox stock. it is actually up 44 cents, even though they're having to spend more on raw materials and logistics. stock is up. higher sales for prescription drugs at cvs. that is not helping the stock down 2 1/2%. on monday, fox sports 1, speak for yourself host, jason whitlock made me a promise. roll tape. can i tune in to see whitlock analyzing soccer? >> you know what, i will do this. at the beginning of the show i will give a shoutout about the game and a shoutout to you. ashley: aw. stuart: why me. >> because i want to tap into

your fan base, varney. stuart: wait a minute. he delivered. roll that tape. >> hello and welcome. shoutout to my boy stuart varney and all you soccer fans watching. thanks fortuning in. stuart: that was it, by the way. that was absolutely it. he gave about seven seconds, but thank you, jason, you're all right. he was talking about a soccer match that took place yesterday, a football game as we say, real madrid versus bayer munich. ashley: second leg of the semifinal, real madrid, finished 2-2. they go through to the finals of the champions league. if anyone follows soccer, they have been dominant. this is the fourth european cup final, championship leak final in five years. they will play the winners of today's game between roma and liverpool. that is being played in rome.

huge viewership numbers. stuart: what a dead full my take. i would not wish to be the goalie for bayer munich. ashley: change my nationality. stuart: we have a comment from a canadian about socker. >> i have been living in the uk. i have gone to matches. i know how intense it is. understanding i watch a lot of hockey games, fans that are heading off to the stadium have been warned they shouldn't walk to the stadium. take a shuttle because one liverpool fan -- ashley: badly beaten. >> badly beaten. i was at a manu game, told me to take the scarf off. it is serious stuff. stuart: welcome to america. there will be i promise, more "varney" after this. let's begin.

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♪ stuart: this is a good one. that is one of the early ones. one of the nice ones. i like the harmony. thank you. let's move on. check the big board because we're heading south. just in the last few minutes we've gone lower. we're down 80 points, just above 24,000. now we have numbers on how much oil we've got or have not got in storage. got it. ashley: a massive build again. we had that last week. up 6.22 million. we were only expecting a build of less than a million. prices are already been down because of a strong dollar. this will put more pressure on oil to move lower. stuart: big increase in amount of gasoline, a builds, more in storage. that is a surprise on both counts. steve:

facebook will apply, they're getting into the online dating. share of rivals in the online dating business are down, they are down a little bit now. never mind the naysayers, the iphone is still something of a cash machine for apple and the stock is doing very well after a stellar profit report late yesterday. it is up 7 bucks at at at -- 176. interesting statement, he says apple is prime to take over your living room. mark douglas is here. welcome back, mark. good to see you sir. >> thank you, stuart. stuart: when you say apple is taking over your living room, explain it to me. what are they going to do? >> everybody knows about the iphone but apple has another product, the apple tv. americans are starting to watch television on demand at just kind of phenomenal rates. i'm sure every one you know --

stuart: i am an american, okay. >> i know you're, we both are. but here is what is happening. more than 60% of americans now watch majority of their television on demand. that on demand device is an apple tv. it's a roku device. it is amazon fire stick. people are cutting cable subscriptions 10 million household as year. the city the size of miami per month are cutting cable all of that is moving to apple tv, roku, these device, essentially the new cable box for on demand television. stuart: when you i heard you say they will take over your living room, i thought you were referring to the homepod, one of those voice activated things you tell things to do. but they're way behind with the homepod. echo from amazon, the google home. they're way out in front. >> yeah. their prices are high. they need to bring the prices down on the homepod.

we need to create -- stuart: before they take over my living room, they have to do something about the homepod. >> apple music is now the dominant music streaming service. one thing people don't realize, a few years ago amazon had zero share of music streaming. now they're more than 25%. that comes from the echo. amazon echo. apple is still bigger. so apple's music service connected to the homepod, apple's new news service connected to the homepod, both of those connected to your apple tv, that all combines to apple becomes the dominant source of content and entertainment within your living room. it is happening. it is not the future. it is happening right now. stuart: the competition i guess would be google? would be amazon. >> actually roku offers not amazon, they offer a roku device nearly for free. they have the largest market share. but i think apple, steamroll. amazon, they have the fire stick. it is not doing that well. we'll see if they catch up.

stuart: i sit in my living room, i'm in the apple key cosystem. >> you are. stuart: everything i want, need, look at, entertain myself apple provides and flows it to me. >> yeah. keep in mind who loses? cable companies. they're basically going to try to claw on still being your internet provider. losing cable subscribers at rate of a million a month. losers of nielsen, all the advertising doesn't need nielsen data to use for advertising. all the dollars flows to apple and some of their competitors. stuart: that, sir, even though you live in los angeles and died in the wool liberal you can come back anytime. >> i appreciate the offer. stuart: yes, sir. president trump says he want as space force. roll that tape. >> we're thinking after sixth,

and that would be the space force. does that make sense? the space force. you probably haven't even heard that. i'm telling you this now. this is perhaps, because we're getting very big in space, both militarily and for other reasons and we're seriously thinking of the space force. stuart: joining us now, fox news contributor david bossie. david, that is your book, by the way. it sounded to me like he kind of invented that on the spur of the moment, that the first time he ever thought about it. do you know anything about the space force? >> no, i'm not a party to those conversations but, i'll just tell you this, stuart. our efforts in space, the united states' effort in space goes back to ronald reagan, to the strategic defense initiative. what was called "star wars" at the time, the left loved to mock ronald reagan to say, oh, we don't need this. it is too expensive.

well, today it is a vital part of our national defense systems and that's what i think president trump is building upon. that he is looking at what china and russia are doing, and he is saying we are not ceding anything to them. stuart: that's very interesting. i mean i have never heard anything like this before. since ronald reagan's day, "star wars," but i never heard the president say anything about this or any modern-day politician mention something like that. >> sure. stuart: you think it's a good idea. >> it certainly is an important thing to have a discussion about in our national defense and strategic thinking. that is what those folks are doing. that is where this president and, those are the president the people the president is talking to, obviously. i think he is talking to this younger generation who he has behind him from the military academy. he is saying to them, look, this is the future. i think that he's exactly right. you look at what he has done with nasa. you see jim bridenstine, a

friend of mine from his days in congress, a tremendous war fighter himself. he is a naval aviator who is now the head of nasa. i think it is an exciting tinge for the future of nasa to have somebody like jim as the director now. stuart: david, i'm sure you saw john kerry and his tweeting about benjamin netanyahu's claim that iran is lying about nukes. for benefit of our viewers, here it is. every detail, pm netanyahu was every reason the world came together to apply years of sanctions and negotiate the iran nuclear agreement. because the threat was real and had to be stopped. it's working. that's why israeli security experts are speaking out. david, i can hear you laughing. what is wrong with john kerry's tweet. >> everything about john kerry's thinking has been fundamentally wrong for the last 30 years. it is, the geniuses like john kerry and the rest of the, that operation, whether it was at

foggy bottom at the state department or the liberal orthodoxy that runs our national security in the clinton and obama years, that got these things wrong, that got this president to have to deal with tyrannical leadership in iran that has to make him deal with north korea, with china, with russia, all of these other threat, they, these folks believe everything they do and say is correct, well they have been fundamentally wrong for 20 or 30 years, and that is what has gotten us into these messes. this president is saying enough is enough. we'll deal with these problems. stuart: i think he will withdraw from the nuke plan, i think fairly soon too. i'm out of time. david, thanks for joining us. >> thank for having me. stuart: at top of the hour, president will swear in mike pompeo as secretary of state. when the president speaks we'll take you there. ohio congressman jim renacci

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ashley: in the last hour economist john lonski said news at financial firm allianz bernstein is moving from new york to nashville because of taxes. just a sign of things to come. take a listen. >> not really, i think this is a sign of things to come. people had it with the high cost of living. what they have to pay personnel, what they're paying for taxes. would it be surprising if companies moved operations out of new york city. in order to save money for the federal government. high time we begin to move departments out of washington, other parts of country where the cost of live something cheaper, cost of labor is cheaper. stuart: revolutionary -- >> makes a lot of sense to me. go to distressed areas, open up a department of transportation there. ♪

stuart: president trump about to head over to the state department to swear in mike pompeo as secretary of state. we will bring you that, the event, when it occurs. we'll bring it to you live. you'll see it all. breaking news now from the nfl. the unsigned player, eric reid, filed a collusion grievance against the league. this is all about the anthem protests. >> it is. he became a free agent in march. safety for the 49ers. can't get a job. he believes it is collusion because of his association with colin kaepernick who went through exactly the same thing. they have the same attorney

claiming there is collusion between the owners not to sign these players because of their stand when it comes to, or non-stand when it comes to the national anthem. stuart: he has not been signed. ashley: he is unsigned. he believes he is being targeted because of his association with that protest. stuart: ash, thank you. now this, president trump tweeted his endorsement of ohio congressman jim renacci who is running for the senate. here is the tweet. jim renacci worked hard on tax reductions, illegal immigration, border and crime. i need jim badly to help our agenda to keep america great again. he will be a fantastic senator for the great state of ohio and has my full endorsement. congressman renacci joins us now. is that what you wanted, did you want a full-scale presidential endorsement? >> stuart, good morning. i'm a big supporter of the president. i want to see his agenda move forward. that is one of the reasons i jumped into the senate race.

too much stalls in the senate because of partisanship and not getting things done. i am a guy wants to get things moving. in ohio, that is very important. ohio does support this president. there is, as i travel this state i see more and more people, that is the first thing they ask me, do you support the president. i say i absolutely do. they're happy to hear that. stuart: has the tax cut and the deregulation program that the president has pushed through over the last 18 months, has that really helped the economy of ohio? can you say definitely that the last year-and-a-half have been really good for ohio? >> well i believe it is. as i travel the state i'm hearing people thanking me. i'm seeing businesses across the state giving out bonuses. i was talking to a business yesterday that was going to expand now and do things they couldn't have done without this tax money. yes, absolutely. in ohio, it is moving forward, especially small business. that is the key. small business is the driver of the economy. i'm seeing that as i travel ohio.

stuart: therefore i have to ask you about senator marco rubio. look at what he said about the tax law, for the benefit of our viewers i will quote this again. there is no evidence whatsoever that the money has been massively poured back into the american worker. sir, that is a slam on the tax deal. what say you? >> well i disagree with senator rubio again. as i travel ohio i'm seeing it. i'm seeing people saying we're going to expand. we're seeing people getting more in the paycheck. i'm seeing people, the employees thanking me for the money they're getting more in their paycheck. i'm seeing it. but i'm traveling the state. i'm talking to a lot of small business owners. senator rubio might be different in miami, but i got to tell you in ohio it is helping. stuart: maybe senator rubio is putting some space between himself and the president because the president is not universally popular. that is why i asked, is a presidential endorsement really what you want? >> again, as i told you, in ohio, the president has a strong base of support.

i think there is an outside poll came out, has him at 54, 55% in the state of ohio. so people here like what he is doing. they like he is pushing the economy, moving things. it is about the jobs and economy. they're seeing it, they're happy, i think in the end it is always good to be on the side of the president getting things done. stuart: do you have to go through a primary before you are the senatorial candidate? >> there is primary, stuart, in six days. i will be glad when it is over as well. there are a number of people running. by the way everybody in the primary talks about being with the president. i'm only one that has the support of the president. stuart: when does the primary vote take place? >> next tuesday. stuart: next tuesday? okay, we'll be there for that. jim renacci. appreciate it. >> thank you, stuart. stuart: kanye west making headlines for his support of president trump. now he is coming under fire for his latest comments on slavery. we're on it. ♪

stuart: president trump is heading over to the state department for the swearing in of the new secretary of state mike pompeo. we'll take you there momentarily. we have kanye west making headlines again, this time for commenting on slavery. roll that tape. >> you hear about slavery for 400 years, for 400 years? that sound like a choice. like, you was there for 400 years and all of y'all? you know like, it is like, we're mentally in prison. i like the word prison, because slavery goes direct to the idea of blacks. prison is something that unites us as one race, blacks and whites one race, we're the human race. stuart: well, he followed that up with a tweet. i will read it to you. the reason why i brought up the 400 years point is because we can't be mentally in prison for another 400 years. we need free thought now. even the statement was an example of free thought. it was just an idea. lawrence jones is with us, campus reform.comed tore,

conservative commentator. he kind of stepped on the third rail of american politics, slavery, didn't he? what do you make of it? >> i see was kanye was trying to communicate the mentality of slavery. he got his history wrong because slavery was not a choice. he is going deep into the mentality of having that mindset. let me tell you, stuart, kanye is in honeymoon phase of making his change in his life before the public eyes. he is switching parties. if i'm honest with you, stuart, kanye has been conservative when you listen to his hip-hop, when republicans were telling me hip-hop was destroying the black community, i was telling them, if you want to reach the black community, hip-hop is the way, going through with the culture. i would caution kanye one thing someone should have cautioned me when i first made my change to

the right, don't lose your connection to the community. it is our job as black conservatives, as libertarians, go back into the community and reach those people. and you can't do that with mistakes like this. kanye has a sincere heart, stuart, but in reality, sometimes he is following into the republican trap that they have set. the republican party needs you. you don't need the republican party. we need you to reach the black community. stuart: do you think that kanye west can change any votes in the black community? >> he already has changing it, but we need kanye to be him, the same kanye was rapping in his hip-hop music about capitalism. capitalism is the way, stuart. he didn't need to make these other changes. talk about poverty in our community, talk about money is the way to success. and kanye doesn't need to change. be kanye. and i know there is a lot of people in politics, there is a lot of black conservatives on tv saying need to reach all these

checkpoints. your way has been going on for years and it hasn't been successful in getting black votes on the right. so i would argue that kanye can continue it be kanye and get more black people on our side. stuart: lawrence, hold on for a second. i have just gotten a tweet coming in from president trump. i will read it for president trump. here it is. a rigged system. they don't want to turn over documents to congress. what are they afraid of? why so much redacting? why such unequal justice? at some point i will have no choice but to use the powers granted to the presidency and get involved. that's, that sounds like a not so veiled threat, lawrence. i know you're coming into this along with everybody else, it has just been released. i see that as a not so veiled threat maybe to fire mueller. i don't know. but a threat. >> this is, donald trump controlling the justice department, which is guaranteed to him by the constitution. this is doesn't have to be a

threat. this is his job. and i would argue that the justice department is out of control right now and him as the chief executive have allowed it to go along for too long because of the political implications. but right now, if they can not respond to congress, it is time to remove justice officials that won't comply with the three branches of government. and the president has that authority. stuart: you know, we covered a lot of ground in 2 1/2 minutes but you're the man to do it. pretty good, lawrence. >> yes, sir. i appreciate it, brother. stuart: thank you. mike pompeo is about to be sworn in as secretary of state. the president will speak. you will hear everything and we'll be back with it all ♪

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stuart: minutes from now, president trump will speak at the swearing in ceremony of mike pompeo as secretary of state.

the foreign policy team is in place, i say that's good. the president is in the middle of high stakes negotiations, rallying allies and confronting enemies just in case you think the foreign press gives our president the treatment he receives from the white house press look at this from the times of london. it says like nixon and reagan before him, the president's brand of brash diplomacy maybe working. keywords, maybe working, wow from the times of london how about that? i think it's time, mr. trump got a little more credit for his foreign policy initiatives. he has maneuvered the north koreans towards a history making summit, south korea's leader thinks he should get the nobel peace prize, mike pompeo on a recent tour of the middle east firmed up our allies, what a change, we're helping and thanking our allies? as the president frequently points out the iranians have been using the cash we gave them for the nook deal to wage war in syria.

odds are we will be leaving that deal. that's what we elected this president to do, isn't it? and with china, the president is trying to rework the trading relationship. it will be a long negotiation but mr. trump is doing what he said he would do. better that than endure the endless theft of america's intellectual and technical brilliance. not only should the white house press learn some respect so too should those democrats who oppose mike pompeo. senator warren said he doesn't share america's values. senator blumenthal said he doesn't focus on diplomacy, i never understood that one. what i do understand is that this president is making great strides in foreign policy. north korea, iran, china, a complete reversal of the obama doctrine of weakness and retreat one more time, from the times of london, like nixon and reagan before him, the president's brand of brash diplomacy may be working. the third hour of varney & company is about to begin.

as we said moments ago, mike pompeo is about to be sworn in as secretary of state and while we wait for that, let's bring in california congressman dana, a member of the house foreign affairs committee. congressman i think you heard my editorial otherwise called a rant. i say president trump's foreign policy has been a success. you going to take me on? >> a tremendous success. you left one thing out. i was in the reagan white house working with president reagan there as a special assistant and senior speechwriter for seven years but reagan what is he remembered for? he ended the cold war and one of the ways he did it was he went to berlin and said tear down this wall. well right after our president was elected, now, donald trump, when he went to saudi arabia and

unlike obama who bowed down to the leadership in saudi arabia our president, our new president took everybody and went, took their leadership and in front of the world said if you want to be friends with the united states, drive the terrorists out of your mosque, and low and behold, that saudi government that had been financing terrorism has stopped that. what a tremendous gift to all of humanity and he's get no credit for it of course. stuart: would you put president trump on the same level of diplomatic success as richard nixon who went to china and ronald regan who ended the cold war? you put mr. trump right up there >> first of all, we have democrat presidents who have failed so obviously and now we have presidents the one that you just suggested is nixon but i would say especially ronald regan.

ronald regan did bring us a better world and peace and i believe that's what we're doing today with donald trump, so yeah , i'd put them up in that category. stuart: so you're a california congressman and i want you to listen to one moment to what california governor jerry brown said about that migrant caravan and about vice president pence's visit to the border this week. roll tape. >> vice president said yesterday that the border is a problem in that particular area for the whole country. >> i think pence is a problem for the whole country. >> [laughter] stuart: i think pence is a problem for the whole country, said governor brown, and your response? >> well, my response is of course one, two, three, four, five. stuart: i don't know where that came from. [laughter] i don't think maybe you can hear us. can you hear me okay? >> yeah, i can hear you. can you hear me? stuart: yeah, we can hear you. now we just had governor brown on there say that mike pence is

a problem for the whole country. >> well mike pence, we have a state government including jerry brown who is talking about we have a bill out here sb54 that basically prohibits our local law enforcement people to work, prohibits them from working with federal authorities in order to deal with criminal illegal alien s. who are they supposed to be protecting, when people are this far off base, and they're not even watching out for the interest of the people of the united states, with that kind of need comment about mike pence and of course our president who are dedicated to trying to do what's good for americans and yes, legal immigrants as well, i put them as part of the american family, but they have done so much to undermine the basics for

american people and illegal immigrants and our well being in california for them to comment on mike pence is ridiculous. stuart: a pleasure having you again thanks so much for joining us. >> god bless. stuart: thank you, sir. all right where are we on the dow industrial we're 96 minutes into the trading session down 56 points a lot more red than green when looking at the dow 30. take a lack at tesla, now they report their profits or otherwise late this afternoon, john layfield is with us he's the ceo of the layfield report. now, tesla has been hit with a lot of negatives recently. they're at 299. what do you think they're going to report today? plus or a minus report, what do you think? >> i think most of this, earnings will be terrible. numbers don't make any sense whatsoever. the only thing that saves this company is elon musk, the model s, x, both had huge burn rates before they came out both cash flow positive tesla was after they debuted, elon musk says

cash flow positive in the third and fourth quarter, i find that incredibly hard to believe but if anybody can do it, it's elon musk. stuart: do you own it? >> i do not. i would not buy at these numbers i think you'll have more problems to get it cheaper. i'm a huge fan of elon musk and i think tesla makes it but it's going to be tough. stuart: he's a remarkable guy. >> he's sleeping at the office right now exactly what you want. quit building flamethrowers. stuart: is that a stunt honestly sleeping on the factory floor? if there's a problem, you know, e-mac says that she's convinced he wants to sell it to google and he can go full time into spacex. >> i don't believe that at all. when he had problems with spacex , he started sleeping at the office. he brought all the production in house. he is the smartest guy in the room. you want him fixated on this one problem to get it fixed. stuart: got to talk about apple. i've never seen such financial power concentrated in one

company like have you ever seen anything like this before? >> there's never anything in the history of the world like this. $100 billion share buyback it's double the previous which is owned by apple two times and ge once. the biggest thing to me was 1.3 billion active users for apple $30 is the current revenue per active user this is insane. they're going to get the nfl i really believe that. premier league they add something to the streaming service they have 270 million people right now that are subscribers in one form or another. that is massive. i don't know how netflix compete s with this by the way. stuart: 270 million paying him something every month. now you're a tax migrant, shall i say, refugee. >> [laughter] stuart: from bermuda. >> yes. stuart: you know about alliance bernstein big money manager in new york, you hear about this? >> i've heard about this i'd love to say i'm getting out of texas. i'm not there's no way to get out in bermuda i still pay full federal income tax to all of the irs agents listening. stuart: because you are an american citizen.

>> that's right. stuart: therefore you pay income tax on income anywhere in the world. brits, canadians every other country in the world doesn't pay tax in bermuda except for american citizens. the irs has got you. stuart: i've got to ask you about the rumble in jetta, in saudi arabia wrestling. >> it was the sixth most watched wwe program, this includes andre versus hogan, "the rock" versus and the biggest thing to me was you had women and children in the audience which was a few years ago which never happened in saudi arabia, it was last year, had a women's match in abu dhabi and the crowd chanted in english , "this is hope." people won't change and the prince over there is trying to promote capitalism. capitalism actually works. stuart: you know we cover some t urf don't we? tesla -- >> i think that it's just a phenomenal way they go and promote change. hopefully next year women are allowed to compete and it's

absolutely groundbreaking. stuart: good for you john. >> thank you. stuart: check the price of what do we got first the price of crude oil $67 per barrel. check the price of gasoline holding right around $2.81. that is a national average actually that is the same as yesterday and yes, california is still paying $0.80 a gallon more 17 states i might add, led by california are suing the trump adminitration for its decision to rollback vehicle fuel efficiency standards. we have a judge on that one by the way coming up. and it was just last week that our own jeff flock was in front of a vacant mall in illinois as it was being demolished, add to that the hundreds of retail stores being closed this year, if not thousands actually, and we have coming up the man who buys ghost malls. he says don't blame amazon. first though, we'll deal with mississippi's crumbling infrastructure. governor phil bryant ordered 102 bridges to be closed immediately

he's on the show next and any moment now, mike pompeo will be sworn in as secretary of state. we're going to hear from the president as well. stay with us, please, third hour of varney rolling on. >> ♪ ♪

stuart: now we're making a big deal out of the swearing in ceremony for mike pompeo, who is about to become formally secretary of state. now, that in itself is a big deal, but i should also tell you that president trump is heading over to the state department and he will speak. he will make remarks. of course, you never know what this president is going to say, or even the subject matter that he might address. but this, you can hear in the background there, they just started to announce a few things , but think about it. this is the swearing in ceremony for the secretary of state,

america's top diplomatic, the man in charge of foreign policy. the president is going to speak. he could say something about the north korean summit with kim jong-un. whose that walking in there? that's just the officials who are going to start things rolling. now there was pompeo, you can see him right there. the president may also say something about the iran nook deal. the president may also say something about the china trade negotiations because our guys are on their way and i think they've already arrived there. or the mueller investigation. stuart: it really could be anything and the president will speak. now, i'm going to hold on we're going to bring the president's speech to you. that should be just in a couple of minutes i don't think the officials will be saying that much but when the president speaks, that could be a very significant big deal. right? >> uh-huh. stuart: absolutely and as you say the interesting thing about these press conferences you never know where he's going to go, but he often makes headlines and he always makes news.

>> when journalists ask the questions they're going to dig in, meeting spot for the summit with north korea. stuart: nobody knows. that entire all those people, not one of them really knows what this president is going to say. >> no. stuart: in about two minutes time. >> he's not taking questions though is he? stuart: i doubt it. >> you don't think he'll make a statement. not relating to pompeo. stuart: he's going to speak. what he says we don't know. >> exactly. stuart: but there will be press people there and they will shout out questions. >> of course. stuart: find it hard not to respond? >> he does. he can't resist. stuart: he really cannot resist so that's the official swearing in not just yet. i think the president will speak before the swearing in. let me run through some of the markets for you as we're waiting for the president. first of all, the price of gold this morning, that is still hanging around 1,307 is the price of gold, show me bitcoin, that is, is that above nine grand or below, that's sort of the dividing point recently,

9,100 is your answer, and we've got a minus 18 on the dow industrial so we've come all the way back on the stock market from a loss of about 95 points now we're down 20. >> i hate to mention the fed because we don't like to talk about the fed but we will find out some of their comments from their most recent meeting at 2:00 this afternoon eastern. if they start talking about inflation and rising prices, that could spook the market, because there's fears of the feds they start raising making hikes. stuart: you just said we don't like to talk about the fed. >> i know it is boring but what's more boring? stuart: the president is taking the podium let's listen. >> [applause] president trump: i must say that's more spirit than i've

heard from the state department in a long time, many years. we can say many years, maybe many decades it's going to be a fantastic start. a fantastic day, and that spirit will only be magnified. only with this man right here, i know that for a fact, so thank you, all for being here. it's great to be with you, the extraordinary men and women of the state department. we are profoundly grateful for everything you do for our country and you'll be doing things that you don't even know about. >> [laughter] president trump: right now they're not even a glimmer in your eye and we have a couple going right now that a lot of people don't know about that are very very encouraging. i also want to thank vice president pence and the many members of my cabinet for joining us this morning. we're here to celebrate the swearing in of america's new secretary of state, mike pompeo.

>> [applause] president trump: this day is a testament to your exceptional skill, mike, a skill and service its been honed over a lifetime no matter where you went. we're joined by mike's wife susan and his son nick and i want to thank you both for sharing this wonderful moment with us all. thank you very much. thank you. >> [applause] president trump: mike is a true american patriot. he has devoted many years of his life to defending america, beginning when he entered west point, and as you all heard, he entered at 18 and he ended up graduating first in his class. you know, i heard that rumor a long time ago. i thought it was a rumor.

>> [laughter] >> i've heard it so many times i also heard i was first in my class at the wharton school of finance and sometimes when you hear it, you don't say anything you just let it go but i heard it with him and being first in your class at westpoint, because i know, that's a big deal. so i said is that true? yeah. so i started bringing it up. i brought it up about four weeks ago, right, david? and after that, everybody brings it up so i don't have to say it any more. he was actually first in his class at westpoint, and soon he was deployed to germany where he served a calvary officer prior to the fall of the berlin wall. after leaving active duty service mike graduated from harvard law school with high honors, great student. mike was elected to congress in 2010 by the people of the fourth district of a great state, kansas. >> [applause]

president trump: it is, an and in the house he distinguished himself as a member of the intelligence committee. for the last 15 months mike served as our nation and served our nation as the director of the central intelligence agency where i can tell you they have such respect for him, it's unbelievable. they may be the only people that are not very happy right now but they'll be happy. they'll be happy and his exceptional leadership of the cia earned the admiration of his colleagues in the cabinet, the congress, the intelligence community as well as our foreign allies & partners. mike has also earned my deepest respect and admiration and trust and you'll see why over coming years, probably over the coming months. i've absolute confidence he will do an incredible job as the nations 70th secretary of state. as mike travels the world, he

will carry out the greatest mission and highest duty of the state department, to represent the interests of the american people. this mission includes overseeing more than 13,000 foreign service officers who act as our representatives to the world, 12,000 counselor officers and administrator of just an incredible immigration system, a system that we're going to be changing and fixing and making better beings a system that's under siege right now, but a system that will, in fact, hopefully be the talk of the world by the time we finish. we have 3,500 security personnel and thousands more diplomats, embassy staff, civil servants and administrative personnel all who play a vital role in the safety, liberty, prosperity and

all good things of the united states, very important people, great people. as president eisenhower said in 1953 make no mistake the reason we have representatives around the world is to protect american interests. for nearly 230 years the men and women of the united states state department have skillfully and proudly answered this call, and now at this moment in time, i can't think of no better person to lead these dedicated public servants than our new secretary of state, mike pompeo. secretary pompeo, congratulations again. i have no doubt that you will make america proud as our nation 's chief diplomat. you're an exceptional guy, a great friend, and somebody that truly loves our country. we are really really proud of you.

i speak on be half of everybody in this room and also on be half of your family. thank you very much, mike and congratulations. >> [applause] >> thank you. >> [applause] president trump: and now i'd like to ask vice president pence to administer the oath of office thank you. >> raise your right hand repeat after me. i, michael pompeo do solemly

swear that i will support and defend the constitution of the united states. >> that i will support and defense the constitution of the united states. >> against allen eanys foreign and domestic. >> against all enemies foreign and domestic. >> that i will bear true faith and allegiance to the same. that i take this obligation freely. without any mental reservation. >> without any mental reservation. >> or purpose of evasion. >> or purpose of evasion. >> and that i will well and faithfully discharge the duties. >> that i will well and faithfully discharge the duties. >> of the office upon which i'm about to enter. so help me god. >> so help me god. >> congratulations. >> [applause]

>> this is truly humbling. thank you very much, mr. president, for those kind words. thank you, mr. vice president for being here today to honor me by swearing me in. thank you ambassador lawla, and ambassador glenndon, thank you so much. i used to work for her for $7.50 an hour. >> [laughter] >> it is a great honor to have so many distinguished guests here including former colleagues in congress through for coming today. i was also glad to see you administrator mark green i look forward to working with you. i want to first -- stuart: that is mike pompeo. that is the new secretary of state of the united states of america, sworn in right there, with remarks from president trump right before him.

we thought that maybe the president would go off the script and make some news about iran, north korea, or china. he did not. he was funny, he communicated very well, it was a terrific presentation, but he was just about mike pompeo, the new secretary of state. no impact from any remarks so far this morning on the financial markets, of course not that's you've got a market moving event. we'll tell you that we have the dow industrials down just a slight amount, we're down 26 points that is what is it that's .1% hardly a major move, and there's plenty of red on the left-hand side of your screen so as a mixed picture among the dow 30, we've got about two-thirds down, one-third up, the dow still on the downside. moving on to mississippi. how about that? governor phil bryant has ordered the immediate closure of more than 100 bridges in his state. he says they're not safe. governor bryant joins us now. governor, why are you doing this , because surely this is a

huge disruption across your state. >> it is but the number one responsibility executives have governors in particular is to protect the citizens of the state of mississippi, so we got to protect the motoring public. these bridges were not only determined unsafe by many local engineers that work for these counties, but the federal highway administration came in with our own set of experts, looked at these wood frame, wood structure bridges and said they're unsafe. i could not stand by and allow someone to lose their life, have their families lost in an accident, a school bus go across one of these bridges and be involved in a life altering tragedy and not do nothing about it so we closed them, the mississippi legislature funded a $50 million bond deal in essence we went and borrowed as i declared that emergency, we acted on short term borrowing to be able to put $25 million immediately into the repair of

these bridges. we've repaired 13 so far another 36 have contracts for repair and now negotiating with construction companies but i will not stand by and allow the motoring public to be in danger because some counties have not done their job in repairing these bridges. stuart: now, perhaps your political opponents would say this is a ploy creating an emergency situation, significant disruption, because you want federal money. is that part of the deal? >> well, of course that has an implication to it. i talked to secretary chow and she said if these bridges are not closed federal law would require a termination of funding from the federal highway administration. now again, we've been doing this since about november of 2016 so it's nothing new. it's not like the counties were shocked or surprised. many of them had simply said we don't think we're going to close these bridges. we'll allow people to drive across them and endanger

themselves, so that was an irresponsible act i think on the part of those counties that were allowing these bridges that had been deemed unsafe to remain open. also you're looking at the termination of federal dollars so all of a sudden repairs at interstates that are going on are shutdown. you have again a dangerous situation where you may have one lane that was under repair so we're down to one lane on interstate 55 or interstate i-20 you're going to lose lives there people are going to die in automobile accidents if we have to terminate the repairs that are underway, and so i was not going to stand by and let that happen. governors have to make decisions you're always going to be criticized by your political opponents and i've taken that over the years. stuart: governor, you have taken dramatic action indeed 100 bridges closed immediately. thanks for joining us we appreciate you being here. >> thank you so much stuart. stuart: yes, sir, thank you. all right, next case, how about? retail, that's what it says it's a story we've been covering for

a long time. just last week, our own jeff flock was in front of a vacant mall in illinois just as it was being demolished. i mean, look at that. that's just one example. now look at this. these retail chains have closed the most stores so far this year toys "r" us, rite aid, best buy, all closing hundreds of locations. well our next guest buys these ghost malls and turns them into other uses. jay scott is with us, ceo of the commercial academy with us right now. wait a second you say that this is, this destruction of the malls, the emptying of the malls , you say that is not amazon's fault. who is it? >> well i think it has a lot to do with gross profit earring from reits, developers, a lot of times what they were doing is they would come in and they would force a lot of the large retailers, the reits, that are developing these -- stuart: wait, the developers and the real estate investment trusts, the people building

these malls they overbuilt? >> they overbill by a lot. stuart: but they couldn't see amazon coming? >> well amazon is really an old school philosophy, right? the macy's hurting today they were the amazon of their day. back in the day, mail order catalog was the internet so you'd picture something that you could order and it would be at your door in three weeks and your size was amazing right? so today, what you're seeing is a similar type of trend with amazon and amazon is experiencing some challenges in their growth of their footprint as well. stuart: really? >> yeah. stuart: they seem to be just going dynamite. >> well they are going dynamite but they have a lot of advantages baked in right now such as favorable tax treatments , they have the ability to go ahead. stuart: and you think because of being challenged they're going to go into decline? okay, your business is to buy these ghost malls and turn them into something profitable, right >> well not just ghost malls but we deal with regional center s, power centers, strip

malls. the idea is -- stuart: okay, now listen. a mall goes out, like the one we just saw demolished. you kind of buy those places? >> absolutely. stuart: what do you put in that place? >> in some cases we'll deal with housing, some cases we'll deal with distribution. stuart: wait wait wait. go slower. sometimes you turn it into housing? >> absolutely. stuart: ordinary regular housing , you build houses? >> yeah, single family but it's most cases dealing with multi- family projects so condominiums, assisted care facilities, apartment complexes. stuart: what else? >> you deal with distribution and manufacturing so light industrial distribution, because the retail need is still there because it's central to the population of the community. the malls are located based upon the density of population. stuart: but you've got to be picking up these places for pennys on the dollar. >> if you have to because what you're doing is rebuilding infrastructure. stuart: so you're a vulcher. >> [laughter] stuart: just as bad as the developers who over-developed. >> actually folks are, folks

see us when we come in we're saving areas that are vital to communities, so if we select your community as a place that we want to develop, and we're going to be heading out to the i csc recon show in las vegas in about two and a half weeks so the largest retail show certainly in the u.s. and by many standards in the world, we're going to be there kind of cherry picking projects where we can come in, in addition to that we're working with the urc -- stuart: okay, my producer i'm out of time. my producer just come in my ear saying stop being nasty to him. he's doing something about the eyesore mall. >> that's true. no i don't think you're being nasty but challenging the paradigm and what we're doing is stepping into communities and really changing the nature. >> are you turning it into mini villages so there's a health club and grocery store so people stay in that area? >> absolutely what you're trying to do is serve all of the needs a person has rather than malls which rely so heavily on apparel and footwear it's healthcare, it's dining, it's entertainment, it is an opportunity to work on fitness. it's an opportunity to create an

environment. stuart: good luck with that because there's a lot of malls to go at young man. thanks very much. jay scott scheel. >> thank you. stuart: on your screen, 17 states led by california suing the trump adminitration over its decision to roll back vehicle fuel efficiency standards. judge napolitano is here. what's that all about? >> it's about a political dispute between the more liberal states in the country that prefer more stringent emission standards and the ones proclaim ed by the epa, so this is a challenge to the environment. this is something conservatives used to do when the epa was regulating puddles of water on your farm and they wanted you to clean it up and you didn't and they came after you and now it's the liberals saying we don't like the epa's exercise of discretion by eradicating two

years of top emission standards from the obama administration. stuart: so they want to keep the standards? >> they want to keep the old standards. they're doing this to please their bases. stuart: and they're going to lose? >> yes. stuart: good. >> do you know what? stuart: here is some telling me how many miles my car has. >> california set the precedent for a lot of automakers. they've already been doing it and this is huge. >> wasting taxpayer dollars, they are hiring outside lawyers and they're wasting judicial time on frivolous litigation. agreed? stuart: um, are you on the right side of this? >> i'm on the varney side. stuart: then you're on the right side. >> [laughter] stuart: watch out. >> no, i'm just saying it's a big population like you've mentioned in the commercial break it's huge so they already set these standards a while ago, so -- stuart: change them. another one for you, judge. >> okay. stuart: the courts are

overwhelmed with immigration cases. yes. stuart: backlog is more than a million? >> yes. stuart: backlog of more than a million immigration cases? >> make this even more complex, there's a case before the supreme court of the united states just saying that the judges who hear these cases aren't real judges, because they work for i.c.e. their judicial decisions can be overruled by the boss of the prosecutor, the immigration lawyers, for the federal government who appears before them. if the supreme court goes the way i think it's going to go this million case backlog will be a 10 million case backlog, because the president will have to appoint every one of these judges. stuart: that's a legal mess by lawyers. >> yes. stuart: it really does. we're not a nation of laws we're a nation of lawyers. >> in great britain there is new written constitution . it means whatever the party in power says it means. back me up.

>> you're right. stuart: sign of the times. >> yes. stuart: you'll be interested in this one. oh, yes you will. hotels are getting rid of those tiny shampoo bottles. >> [laughter] stuart: it's terrible. outrageous. marriott, holiday inn are among the chains replacing the bottles with larger shampoo dispensers. >> exactly. stuart: attached to the bathroom wall. >> you haven't been in a holiday inn since you lived out of a backpack. >> [laughter] stuart: hotels say the bulk dispensers cost less and are better for the environment. okay? the star of the hit netflix series the crown will get $275,000 in backpay. the announcement coming after it was real that foy made less than her co-star, matt smith. even though foy has the much bigger role as queen elizabeth smith plays prince phillip. the company later apologized and said going forward no one gets

paid more than the queen. >> [laughter] stuart: all right we've got lower sales at the canadian brewer that will be molson coors not going down well the stocks down 13% that's a sell-off. young brands fewer people going into pizza hut and kfc restaurants, foot traffic down the stock saw 5% and now this, soccer club moving on to the champion league final after beating munich, and on aggregate last night, madrid led the team with two goals and one came after the goalie, oh, would you look at that. >> painful. stuart: madrid faces the winner of the liverfool game which is this afternoon. >> it's going to be heated. stuart: the final is may 26 in ukraine. >> we're on our way. stuart: yeah. next, we have a california city council member who says the state sanctuary state laws are fueling chaos.

he's mad as hell that california is putting lives at risk not only legal california residents but the lives of law enforcement people too. he's next, he is fired up. and nancy pelosi confident the democrats will win the mid-terms is she forgetting some of the comments she made? mike pence didn't and he called her out. you'll hear it, next. as a control enthusiast, i'm all-business when i travel... even when i travel... for leisure. so i go national, where i can choose any available upgrade in the aisle - without starting any conversations- -or paying any upcharges. what can i say? control suits me. go national. go like a pro.

nicole: i'm nicole petallides with your fox business brief if you're looking for a long term meaningful relationship well facebook is ready to play cupid just for you. the stock today is up nearly 2%, but they made the announcement mark zuckerberg did at the developers conference and said they will now move forward with a dating service something they've been thinking about for some time and your will create a separate dating profile, and they will suggest to you possible matches, and right now, 200 million people are listed on facebook as single, and mark zuckerberg wants you to find a meaningful relationship. this is not for hookups, he said in his words. in the meantime, the other dating industry companies, match and the parent of tinder are down about 20% this week.

stuart: well, take a look at this. that is the cheapest single family home for sale in san francisco. it's listed at $650,000. >> oh, my gosh. stuart: it's 600 square feet, every room needs a complete overhaul. the real selling point is location, and he's got a large lot. realtor it say it'll sell for well above that asking price and it might actually go for a million dollars. >> wow.

stuart: now this, our next guest says california is a sanctuary state is creating chaos with a migrant caravan being just the latest example. brian merit is with us, the mayor pro tem of san juan in orange county and he's a candidate for congress. brian, i don't see much of a threat, lives put at risk from some of those people in the caravan, a lot of women and children. that's not the threat is it? >> no, and i wouldn't call it a threat. it's indicative of the chaos that we've created by throwing the flag up and calling california sanctuary. regardless of the specifics of the laws and there's pep people all over the state arguing about it stuart we've sent a message to central america and nations that are broken and troubled that if you can somehow scratch and claw your way here we'll grant you sanctuary and the states not empowered to do that that of course is federal law. i said when the law passed it's disingenuous it'll create chaos and put lives at risk.

our law enforcement, the folks who are trying to get here, i mean, we see dozens and sometimes hundreds of these folks die at our borders, women and children every year, stuart so it's just a horrible move from the start and it's indicative of kind of one party rule here in california and it's causing the problem. stuart: brian, this program has reported consistently on the number of towns and counties who have said we don't want any more of this sanctuary state nonsense but they're all in the southern part of the state. have you any evidence to suggest that the revolt will spread to the northern part of the state? >> no, i don't have a feel for that. i've been up and down the 49th congressional district which is delmar to dana point and it's on everyone's mind, it's san diego county and orange county as darrel issa, our long time congressman and it's very much on our folks minds. southern california has a particularly heavy concentration as a percentage of population of illegal immigrants so it tends

to create more angst in southern california and in orange county and san diego county where we have the chaos that i spoke about months ago. we have counties joining federal lawsuit. we have cities fighting with counties, and it's not healthy at all. it's creating real strain. it's creating a cost associated with this that's now getting in the millions of dollars and it's just bad public policy and california has enough to struggle with right now on its own without this layered in. stuart: you're running for congress so i want you to take a look at what nancy pelosi is saying about the mid-terms i'll read it for you. we will win. i will run for speaker. i feel confident about it and my members do too; however, vice president pence, mike pence, he's going after pelosi saying just listen to what he's saying. roll that tape. >> anyone who says a thousand dollars in the pockets of working families is crumbs is out of touch with the american people and should never lead the

people's congress again. >> [applause] stuart: and the democrats do have a pretty strong shot of winning in november, don't they? >> you know, stuart i couldn't agree more with our vice president. this tax reform package led by our president and our party has done so much for california. i keep two lists on the campaign trail stuart one is a list of companies that have left california. now the families are leaving with them calling to texas and calling to richmond and finding out that those are nice places to live and they're going with the jobs. we just lost nestle and there's a bunch we don't hear about and the other list i keep about is companies that have done some tremendous things for millions of california employees since that package passed. they've increased family leave benefits, increased contribution s to pension plans several companies including the company i recently retired from went right to the $15 minimum wage without waiting up the accept-up. its made a huge difference for california. why the ruling party would want to pushback against this

president and where resist and say there's no middle ground is nonsense only making matters worse and respectfully, she's wrong. the tone has changed out there, stuart i'll tell you the last six or seven weeks we're seeing we may have a republican governor in the top two. i know you know john a bit and we'll see what happens. i tell you the last few weeks has been a change in the tone out there. people are fed up. this is the golden state we love it here but we can sense that there is some real challenges that are becoming structural challenges that will take years to fix if we don't get to more balanced approach to government in our beautiful state. stuart: well brian marriott thanks so much for joining us please keep in touch we're interested in this situation in california. thank you brian. >> thank you, stuart. stuart: i didn't know that, there's a rosie sales forecast coming in from clorox. yes it's spending more on raw materials and logistics but they've got this forecast and that's enough to put the stock up $0.85. at cvs, they're saying a lot more prescription drugs going

through cvs, nonetheless the stock is down over 3% there must be another reason for that decline. seattle has a solution to the homelessness problem. a tax on businesses. how about that? [laughter] that story is next. >> ♪ ♪

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stuart: city leaders in seattle want to tax businesses to pay for programs for the homeless. dan springer is right there in seattle right, dan how much money would businesses have to cough up? >> well, stuart, this will cost the most successful job create ors especially those in high-tech $0.26 for every hour of employment they provide in the city not just the people who have a physical presence in the city but also those companies outside who send employees here, so it's designed to raise $75 million. it works out to about $540 per full time employee working in the city, so get this. this will cost amazon with its 40,000 employees in seattle

$21.6 million of the $75 million the tax is designed to raise. this is designed to help the homelessness crisis in seattle. the money will go to provide affordable housing and build small villages and small houses that'll be affordable to people. the homelessness crisis has mushroomed in this city. it's ballooned to about 4,000 people living outside on the streets and in cars. that's a 20% increase in just the last two years. this despite the fact that the city in king county has now spent $200 million a year on the homelessness and that's a big increase in spending but even as that spending goes up, so too does the tax and the amount of people who are homeless in the city of seattle. stuart: dan, do you have any idea of the response of businesses? i take it they oppose this? >> well yeah, they're opposed

in fact they had a hearing on this the city council did and about half of the people who spoke were business leaders, home street bank ceo came out and said hey they have a lot of people about 700 employees in the city and also have a number of businesses and banks outside the city and they can actually transfer some of those jobs outside and it makes a lot of sense to do so. you know, seattle did this back in 2006 and they had it on the books for about three years but then canceled it in 2009 during the recession but that tax at that time was only $25 per employee per year. this is going to be $540 so they are really doubling down tripl ing down. this is very rare, in fact ram emmanuel when he ran for mayor of chicago ran against the head tech there saying it was a job killer so he got that eliminated there. the biggest tax we could find the head tax in the country is about $50 per full-time employee and that's in denver so this is

by far and away would be the largest head tax in the country and it looks like it's going to pass in the next couple of weeks stuart: ouch is all i can say dan springer in the middle of it thanks for joining us dan good stuff. there will be more varney after this. >> ♪ ♪ copd makes it hard to breathe. so to breathe better, i go with anoro. ♪ go your own way copd tries to say, "go this way." i say, "i'll go my own way, with anoro." ♪ go your own way once-daily anoro contains two medicines called bronchodilators that work together to significantly improve lung function . . . period of time. the risk is unkn. anoro won't replace rescue inhalers for sudden symptoms

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stuart: i'm told we have adorable video for you. yes we do. two bald eagles, parents that is, mr. and mr. president and first lady, that is their names. welcome the lovely little creature the eaglet. the egg hatched monday. it is de-6. this is the 6th baby with another set to hatch this week. that is very cute video. 20 seconds left. kristina partsinevelos, with us all today. >> staying all three hours.

were you nice on me today? should i be, should i be waiting for some more backlash on friday and monday if i'm back? stuart: charming. isn't that right, neil cavuto. i was and remain charming? neil: on the eaglet story. same father? [laughter]. just saying. controversy with that story, you know. stuart: there is? >> oh, different eagle dads. oh. stuart: is that true? different eagle dads? neil: i report, you decide. i'm on it. i guess you guys didn't have time to look into it. i do. >> my fault. stuart: kristina's fault. neil: we'll follow up on that story. imagine if apple were not part of the dow, we would be in a