was done in the dark of night? meanwhile they did an iran deal and didn't check with congress and they did obamacare and they did that behind closed doors. dagen: it's because the individual tax cuts expire. maria: that's the bottom line, dagen mcdowell, we will see you tomorrow. thanks so much for joining us, varney & company begins now. here is charles payne. charles: i'm charles payne in for stuart, a major foreign policy victory for the trump administration and america, secretary of state mike pompeo on his way right now from north korea and guess what, he has three american prisoners, they are on the way home. following trump's decision to withdraw from the iranian nuclear deal huge political and foreign policy and business implications. it was a big night for the gop,

we are talking ohio, indiana and west virginia. all of that plus an economy that is really starting to hum, we are looking for a strong start in stock markets today. huge day for politics, big day for money, when is it not? varney & company is about to begin. ♪ ♪ charles: and we begin with the president tweet of the big news out of north korea, quote, i am please today inform you that secretary of state mike pompeo is in the air and on his way back from north korea with three wonderful gentlemen that everyone is looking forward to meeting. they seem to be in good health, also good meeting with kim jong un date and place set. ashley, the hostages are coming home? ashley: huge victory for mr. trump and the administration, the president tweeting also this by the way,

secretary pompeo and his guests will be landing at andrew's air force base at 2:00 a.m. in the morning, i will be there be to greet them, very exciting and it is, indeed. the three individuals, i can give you a brief history, arrested for basically espionage subversion, one of them a 64-year-old was arrested, well, two and a half years ago, he's the one that's been held the longest and two teachers at the university of pyongyang, 59-year-old tony kim, who was accountant and teaching courses and kim hang sun, all in labor camps, all recently been brought from pyongyang, jack keane told us to feed them and fatten them up, he said, because the labor camps in north korea are awful. but the good news is they are out and on the way home. charles: we see the prison guards look like, you can

imagine the prisoners. >> total win for president trump and, really, a well-deserved one. media has been so skeptical of his efforts to get inside north korea to bring those two countries together and they have been nay-saying this all along. this is a big sign that this is producing results and let's hope it's just the beginning because this is a very dangerous part of the world and this is an important overture. charles: they have done this before, this is no big deal, kim jong un is running -- negotiating circles around president trump, they have never done this. liz: we can't trust the media headlines in the way they report the stories because the real story, the back story to what liz and ash are reporting is that they are really seeking peace on the peninsula for the first time in decades. that's a major breakthrough, japan wants it, south korea

wants it and by all reporting that we are seeing north korea, that means denukingnuking the peninsula. i'm not sure that that will happen. but, wow what a breakthrough. charles: other ways to prosperity other than trying to sell nuclear weapons around world. let's stay on trump foreign policy, listen to sus anticipate rice about the decision, trump's most foolish decision yet. the left, we know that they hate president trump, it's so funny on the situations, feel like they are siding with the iran here. >> for the obama administration this was the lest big legacy, getting the jcpoa in place. president trump from the gained to get out of it and there's a good reason, i went to reread new york article talking about

how unsufficient the inspection regime was. yes, they can start restart creating bombs and nuclear weapons down the road but also we don't know what they are doing. we have limited access to all military sites where they have cheated before. charles: we didn't know what they were doing with respect to nuclear weapons but they broke the spirit of the deal with their adventurousism and sponsoring terrorism around the world, military hardware that poses a threat to the entire planet speaking of which, liz, a lot of people are saying, what does this mean to american companies specifically bowing? >> we know that'll be disrupt i have to american companies, boeing and air bust, but to liz peek's point, an important one, the obama administration was normalizing a regime, look at what ron has been doing since that deal which never would have passed the senate. remember, it's the commitment

obama made. they've been disruptive in the region, they've been brutalizing their own people. by the way, obama buried the story about iran's financing of terror activities in 2015, it took josh ernst to admit, yes, iran is backing -- charles: they wanted to deal to desperately and iran knew they wanted it desperately. ashley: yes, they lose possibly order in iran, at the end of quarter, backlog was 4,637 boeing 37's. charles: they had it but wasn't on the books, that's why stock is looking higher this morning. by the way, let's check to the futures here because the market has been relatively strong all morning long, we are hanging in there. we had a seesaw session, keeped

into positive category, that's a change from the way it was several weeks when we were closing at lows of the session. by the way, the big hit this morning, big impact will be on oil. 71 at one point this morning, right now 70.78. now, let's look at groupon, not doing too bad. movies and theme parks, doing very well for disney. you knew the movie part was doing well. what's the deal? liz: so the number, the real amazing stunning is 21% pop in studio revenues, black panther is crushing it. bob igor, ceo, 9 out of 10 top domestic box office winners came out of disney. the name of the game is who is going to get 21st century assets, movie studio and tv assets, comcast is going to be the country's, if not the world's biggest corporate

debtor, 170 billion-dollar play. it's all cash deal to try to get assets. it is a global fight between now disney, comcast for the fox assets. it's all about streaming, right. espn also streaming, ufc championship as well. charles: $150 million a year. i want to bring in fox news contributor karl rove. i'm thinking steve martin, end of wild and crazy guy in american politics. >> well, maybe if you're talking about west virginia, that may be right, don blankenship who dominated the media in the last 10 days or so came in distant third and frankly as a republican who wants to keep the senate, that's good news. charles: were you sur produced how adamant president trump was pushing back against blankenship, we know the rnc stood back, top-level republicans were funneling money

to opponents, but the president himself drawing line bombasting is not enough. >> alabama was a clarifying moment for president trump, he realized, you know, we got the wrong candidate, we got a democrat in the special election down there. he didn't want to lose a great opportunity. remember, he carried west virginia by 42 points in 2016. incidentally there's -- speaking of west virginia, we are missing another story in west virginia. joe manchin through the 31st of march spent $2 million in democratic primary, his opponent paula jean spent $130,000, he got -- he got 112,000 votes, 70% of the vote, but she got 30% of the vote and 48,000 votes, this says to me as incumbent he has problems back home, maybe these are people who agreed with his opponent in the primary that he

was not liberal enough, but some of them maybe sort of conservative democrats who say you are not with trump enough and what's interesting is this has been historically democrat state where the number of people who vote in democratic primary is much, much larger than vote in the republican primary but 160,000 people vote in democratic primary, 136,000 voted in republican primary, biggest primary ever for u.s. senate race in the republican side in west virginia in history. charles: karl, is it possible that in addition to west virginia, gop can win other from what you saw other democratic-held senate seats? >> better news in indiana with mike braun who is an outsider, business guy, ranl as outsider, 2 accomplished republican members of the house of representatives, goes into the general election with positive

message and interestingly enough the party there is unified, blankenship has talked about maybe write-in campaign in west virginia. all three candidates in indiana are united behind the idea for beating joe donnelly, another opportunity for the republicans. there's also ohio which is interesting to me is we've got -- the republican nominee there is a friend of mine named jim re nacci, he won not with the majority of the vote, mike came in second. 819,000 people voted in the republican primary for governor in ohio. they had a contested primary, so did the democrats, 671,000, that says that at least in ohio the enthusiasm gap is working for the advantage of the republicans. charles: if the enthusiasm gap might be a miss maybe the blue wave might be a mis. renacci got endorsement from

president trump, love it, we will see you again real soon. >> thank you, man. charles: let's check on equity futures. dow up 80. all major indices looking higher. i want to check on russell from time to time, had a great session yesterday, we may see that finally break out. speaking of which volvo out with a whole new way to own a car, introducing a subscription service, 600 bucks a month will get you brand-new suv, car insurance and maintenance included, more details on that coming up. nancy pelosi, well, she's at it again blasting the president's tax cuts once again saying she has big plans to roll them back, trump says, bring it on, you will hear it all after this

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charles: house minority leader nancy pelosi all but guaranties higher tax ifs the democrats win in november, roll tape. >> i think that we should revisit tax legislation in a way

that we always have in a bipartisan transparent way that the result is unifying for the country. charles: i'm not even sure what that means but president trump tweeted yesterday's primary, the republican party had a great night, tremendous voter energy and excite meant and all candidates are those who have a great chance of winning in november, the energy is so strong and with nancy pelosi wanting to end a big tax cuts and raise taxes, why wouldn't we win, joining us congress lieu -- louie gohmert, those are strong words from nancy pelosi, is she so bracing that put us back in pow e so we can take more of your paycheck? >> if you notice, charles, this is what's a bit confuse to go some, we want a bipartisan tax increase, in other words, what's crazy is when she was speaking before she would get republicans

to vote for her crazy stuff, but she wants bipartisan so they don't get thrown out when they raise taxes which is what they want to do and you of all people know what happens when you start raising taxes like that. charles: in the meantime we learned the u.s. had biggest surplus in history. we know this year we will are surpluses 300 billion and record amount of job openings, we are seeing record profits from small businesses which are the engine of the u.s. economy, it's just amazing to me that any party would think that they could -- that sort of gain power going against those trends. >> well, exactly, what i think is so wonderful from a political standpoint is that african americans, minorities, they are

beginning to see, wait a minute, we didn't have jobs, we suffered under the democrats and now we've got less unemployment than we've ever had in the history of the u.s., so maybe these republicans can help us more than democrats who just want to keep them subserviant. charles: for black people 130,000 returning, overall 1.3 million people came back to the job market representative gohmert and that to me is the ultimate survey, if you finally get me off the softa, looking for a job, it means i'm confident, confidence has returned to the nation. let me ask you about last night, how are you feeling about results, seems to me that republican voters on local level are playing national game now, they understand, no matter how i feel emotionally, we need to win

overall? >> we have great grassroots people around the country that are making sure everybody understands we didn't solve everything when we elected donald trump, he is under assault, he will be impeached even though they are trying to soft peddle that now if the house goes over to the democratic majority, so not only will they take out the president, they will raise your taxes and we will go back to the misery index that we had under the carter years. so this is a big deal and people understand and they are turning out. i hate it when we see races like rokita and mercer where they beat each other up -- charles: it's unfortunate. that stuff happens but, i think, ultimately both are good men and flip-flopped, the result was the opposite. representative gohmert always great to have you on. >> things are looking good. charles: they are. not for everyone new york attorney general eric

schneirderman is out, liz peek says he's the poster child now for liberal elites, make your case. i'm sorry, make it when we come back. [laughter] >> i was ready. nah. not gonna happen.

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out after being accused of assaulting women, liz peek still with us here, you call him poster child of liberal elites, now, make your case. >> now it's time. look, this is a story of epic hypocrisy, this was a fellow who was a darling of women's movement, serial misbehavior in terms of beating up women, choking them, et cetera, this is a terrible story, he will could end up facing if charges are true criminal charges, but i think this is the har vai weinstein of democrat politics. we are going to find out i am convinced because i've already heard some rumblings about this lots of people knew about this and they sat on this information because they didn't want to up-end spokesperson for cherished democrat program. charles: some of the women said they were pressured because they said -- stayed silent because if you say something, you'll ruin a

rising democrat star and by the way, the guy who was given president trump fits, he was probably giving president trump more fits from a legal point of view than anybody else out there. >> not only supposedly defender of woman but antitrump. i think filed 100 lawsuits against donald trump before and after he became president. up-ending this guy is something that democrats really didn't want to do but stay tune. [laughter] charles: it's hard to believe nobody did not know. the confirmation hearing of cia director gina haspel about to get underway. we will take you live when she begins to speak. let's check out the futures because the opening bell is moments away, all three indices

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charles: all right, folks, the opening bell ringing right now, actually in 30 seconds. i'm ahead of the gun here. equity futures have been higher in the morning but drifting.

we have made series of lower highs, every time it looked like the bottom was going to fall out, it has turned around. at some point we will make a huge move, up or down. now you can hear the opening bell. we will populate the dow jones, you will start to see green or red. we have the first trade, 44 points higher, the majority of the stocks are up. wal-mart big loser this morning on major acquisition, we will discuss later on in the show. nike, five more managers leaving the company, of course, they've had serious issues there. on the other end of the spectrum, chevron, exxon mobile leading the way, oil down, the best performing sector in the market was energy, energy stocks are catching up big-time and, of course, getting boost from the iranian deal, let's check on s&p 500, that was the only index, major index that didn't close

higher yesterday but of course there's nasdaq, tech names do not stop, up 11, almost 12 points early on. by the way, let's check on oil, that's the big mover today, up 2 and a half percent, high of 71 bucks earlier this morning in trading and i have to tell you, probably not just iran, a lot of things going on including new balance between supply and demand. let's take a look at some of the energy stocks because look at that doing extraordinarily well. resources, apache looking good, energy stocks are really rocking, the big earnings reporter is disney, great numbers, of course, like they normally post but investors having a hard time trying to figure out if it's sustainable, the stock only up fractionally. you have to check facebook, major shake-up, we will have more in a bit. but the stock is higher at the open. welcome to varney & company.

elizabeth mcdonald, ashley webster, liz peek and shah galani. >> demand is good, the economy is heating up, we have the geopolitical tensions that could come to a head here, you know, we will see what happens with iran. ashley: iran is opec's third biggest producer, it cut back exports because of what's going on, negotiation i would imagine goes with oil producers to try and couldn't balance that and how that works out will determine the price. liz: that's a good point. saudi arabia and opec had dialed back on the production cuts and flood the markets. charles: saudi arabia has signaled to the world that they want prices to stay low. they want crude to be around 80 bucks.

liz: mnuchin is saying that opec will do that, step in and bring more supply in. charles: american suppliers, a lot of the wildcatters, when oil is good, they go for it. they don't care about discipline. you're not a wildcat if you care about discipline. will america overreact and turn on too many rigs and make this a short-live rally? >> i think we are already there. high count already, producers are pretty much close to max already, the minute the price got above $60 they went into full swing. right now $70, hitting it out of the park, they would like to see go higher themselves but the extra supply that they're going to provide the next couple of quarters will get the price 75 range. charles: 5 out of the last six weeks we have seen bills rather than drawdowns. >> exactly. charles: what do you think is driving the rally this morning, the main driver? >> the fact that the market didn't go down yesterday. that's what's driving it. i didn't understand why it's as

healthy as it is, given yesterday's action and the fact that it closed managerially higher in terms of the dow that was a positive, i thought maybe we could see higher today, i understand the rally yesterday, given the iran deal, the president was going to walk us out of that, i thought the market would react negatively, with interest rates above 3%, it's just -- i think it's hanging on to the positive earnings it's seen and we have some pointers that you said earlier, we will go bit higher or bit lower. charles: it's interesting going back last thursday first session i saw in a long time where the market could have collapsed and it didn't, on friday after the job's report we went on 200-day moving average on dow and s&p, we closed up 500-point reversals on dow, the resolve seems to have come back in the market, the question is what's driving it and is it sustainable? >> yeah, there's a lot of resiliency here, what's driving it is the underlying economy,

there was drama, sentiment happening and we have gotten through that and people are looking at balance sheets and economic fibbing user and saying, you know what, there's room in the upside. liz: that's a great point. s&p 2500 first-quarter earnings up 26 plus percent wow year over year. charles: that's the problem, though, because after the cfo of caterpillar saying the high watermark -- liz: they have said that every year this time -- at this point every year for the last 20 years. charles: for some reason -- i agree with you, one of the companies that typically offers conservative guidance, wall street interpreted, hey, for the whole market, entire economy, guess what, we don't always have to grow earnings 26% each quarter because it's impossible. >> that's right, that's right. we are still going to see 25% going forward in the next couple of quarters, that's very healthy, some of the tax cuts are impacting balance sheets as well, we can't forget about that. charles: all right, guys. >> a lot of positives, i don't

understand why the market hasn't reacted better. charles: let's talk about the 10-year yield because that's to your point back to 3%, jp morgan and jamie dimon says get ready to 4% yields. [laughter] >> i'm a little bit nervous but i think the market is slowly putting its toe in the water and starting to become more comfortable with above 3% yield. it's good, it's not a shock. market can handle this going forward and it is starting to handle it as evidence by yesterday. charles: it's a delicate balance, we want a great economy, with that comes higher yields, i don't understand the problem except we know it goes back to the fed, will they overreact? >> i don't think they will overreact, this should be baked in. we saw in february when we approached 3%. it came rallying back as the yield went back down again. now we are back over 3% and the market is kind of -- doesn't know what to do here. it's all baked in. i think the market should be going higher, the fact that it's not -- the only thing that worries me the market isn't

doing what it should be doing. liz: 4% yield, charles, you said this, historically the norm prior to 2008, right? charles: never derailed a market before. it's interesting that -- ashley: tells you after how long, charles. >> the only thing problem with higher yields is how fast they get there. bond losses for investors. charles: we are edging higher as we go along, the dow up 90 points. we opened up about 45 points higher, the bias still to the upside although looking for impetus that shah talked about. 22 billion for liberty assets to strengthen european presence and wal-mart agrees to buy a majority stake in india's flip card for about $16 billion, street is not too excited about it yet. groupon, they are hanging in there, stock up almost 10%, electronic arts, they beat sales and earnings, stock making big

move because of that, the exact opposite, however, profits falling short at monster beverages and the stock giving up a lot of ground. now let's take a look at busch, budweiser sales down 4% in north america, receiver news were up, costs were also down which is interesting because the stock is moving higher. papa johns, shares are down again, keep blaming the nfl on this one, pizza hut straight to the moon, dominoes to the moon and papa johns has serious issues as you can see on the screen. speaking of issues, facebook shuffling managing team. liz: let me back up, this this e biggest change in 14-year history of facebook, more than a dozen executives will see job titles change, they are industrializing under one guy, whatsapp and messenger, but the guy who ran messengerrer david is launching block-chain unit at facebook. remember, he ran paypal, this is sending a shot across the valve

to the entire internet space, is facebook not only going to get into privatizing better, doing better job after data scandal, user's information but also internet shopping on facebook is that where facebook is heading, we don't know. to have a block chain encrypted technology unit at facebook, that's a big headline. charles: you like this one, christian? >> yeah, we do. we have the largest block chain atf out there. going to distributed data source is more secure for users instead of decentralized. if that's what facebook is doing, more data security for all of us and the ability to own data, charles and monetize that which is exciting. charles: would you still block chain and then crypto currency, where is that going to go? we hear more about the acceptance of block chain but not necessarily crypto currency. >> we believe block chain is

underlying technology. one app i'm built on it is bitcoin and crypto currency. we believe in underlying technology, we are not so sure about the underlying crypto currency application. charles: block chain, other ways to play block chain right now? >> i'm sure there are. [laughter] >> no, i don't know, i would like to have pure plays in block chain because it is the future. charles: so you like what facebook is doing? >> i love it. i was negative on the stock when it hit 150, oh, boy, they'll be in big trouble, he sailed through congress, i thought he was spectacular and the changes he's made and consolidated around himself and spectacular and proof that he is a great ceo. charles: thank you both thank you very much, appreciate it. let's take another quick look at the big board, dow up only 33 points, we will keep monitoring that for you, meanwhile cnn

reporter april blasting the first lady, she says melania is not culturally american. brim is fired up on this one, he's coming up in the next hour. president trump's secretary of state mike pompeo now on his way back from north korea with the three americans who were being held hostage, diplomatic progress being made ahead of that big meeting, the president's former national security adviser walid phares joins us next. [ telephone rings ] [ client ] - hey maya. hey! you still thinking about opening your own shop? every day. i think there are some ways to help keep you on track. and closer to home. edward jones grew to a trillion dollars in assets under care, by thinking about your goals as much as you do.

charles: gina haspel's president trump to lead the cia about to give confirmation hearing. new details about release from

north korea. ashley: mike pompeo met with kim jong un for 90 minutes basically to plan the details, location, time and all of that of upcoming summit, at the same time he asked for release of three hostages, he left that meeting headed back to hotel and someone shouted out to him, a reporter, what about the hostages and he gave fingers crossed sign, we are hopeful, not long thereafter the north korean leader granted amnesty to three and the u.s. officials wasted no time, they got a doctor over to another hotel to pick them out, rushed them to the airport and got them on the plane and out, less than an hour after they were told that they were free they were flying home. charles: definition of -- ashley: get the heck out of dodge. there you go. interesting but they are out. charles: amazing, joining us now walid phares, fox news security analyst, former foreign policy adviser to trump campaign, any other way to read into this as

just amazing magnificent news? >> all these words are exactly what they are. this is an amazing humanitarian news but it's also a part of a diplomatic success, piece after piece after piece, but also means north korean regime to release hostages they are really messaging not just the government, congress, the american public, they are trying to look better ahead of the summit to come. charles: doubters, nay-sayers and skeptics all continue to say, hey, we have seen this before, this is from the playbook of kim jong un's grandfather and dad and they've done things and made promises and always at the end of the day broken them? >> yes, but there are things that are different. china today with whom -- with which the president trump is dealing with and because of which we have the situation right now is very different. it's not the china of cold war, it's the china that does

business. we have issues with them but they are real force that's putting pressure on the north, second, it seems that there is an assessment in pyongyang that they want to save the regime and they want to do business, they are suffocating economically, so 3 hostages, they will give even better pictures when the summit will happen. charles: initial word was that perhaps kim jong un would give up nuclear ambitions, denuclearize in return for among other things, guaranty that there would not be any military intervention, is that something that's plausible? >> not just plausible, i think this is the essence of the issue, seems to me that when un went to china and met with the leadership, the chinese told them, we cannot back you against the international community at this point in time. you are isolated. so you better start to change and become like us, i mean, north korea should become like china, we are not asking you to change your regime, you will

continue communist regime but much more open. i think this was the base of the agreement and there's guaranty that we are not going to take action, we have never taken action against north korea unless when we mobilize, when they were shooting the missiles into the ocean, so we can deescalate. charles: next one for you, the president pulls out of iranian nuclear deal, do you think this is the right call? >> it is the absolute right call, you know today, my think asking what is the next step, we cannot just withdraw and keep it that way, we need to be on the offensive diplomatically, politically, economically with all the partners, we need to sit down with europeans, you want to do business with iran, you will lose a lot of opportunities in the middle east and now we have new friends, we have huge arab coalition and the gulf is interesting for europeans as well. we need to play every card we have. charles: is there a way for the administration to get the people of iran on its side? from what i'm hearing there's

major upheaval and perhaps this can be opportunity for folks to understand this is against the regime that's kept them repressed? >> that's the right assessment. now, people expert on iran will tell you, don't worry about the regime about the deal, look at what is going to happen inside iran now because iranians got the message from the united states and allies who came with us on this issue, they know that we are not sending money anymore and therefore, you know, expect upheavals. charles: the money that they got they decided to spread terror on the region instead of people. that's backfiring, walid phares always a pleasure. >> thank you. charles: let's get a check on dow 30, the market is still up, the majority of stocks up and again the oil sector that's leading the market higher, west texas hitting $71 a barrel earlier this morning. hey, you want a new car without all the hassle, volvo may have

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charles: all right, i have a number for you, 20%, that's right, 20% of americans say they

get an electric car. liz: tesla and gm and the chevy bolt or whatever it is those guys happy. what's interesting about this is 1 out of 5 americans say, yeah, we may buy electric car, it was 1 out of 7, more people are interested in buying electric cars and the millennials are saying you know what, we don't care about the wait time to charge it, you know, that's not really an issue for us, we will wait half an hour, exactly, baby boomers don't like waiting u millennials aren't worried about the range, the baby boomers are worried about the battery running out. millennials aren't worried about that, it's interesting the disparity about who is interesting in electric cars, the other interesting thing is people are interested in less maintenance costs, not as many oil changes, not as many parts, local parts involved, right? charles: interesting news, let's stay on car, why buy volvo when you can share one, gary, what's

the sharing subscription thing all about? >> t -- it's subscription, that includes insurance and maintenance for two years, 15,000 miles a year that you can drive it. if you are going to lease the same car, net out 450 a month before you get to insurance, 600 on 5-year financing plan. so as far as the consumer is concerned, it's a pretty good deal and can get it at any age. if you're 20 year's old in new york city and get approved it's $600. charles: subscription suggest i can quit the program any time, magazine sub-- subscription? >> after a year you can flip to newer model. they are more like netflix. they are all knew, every couple

of months you can switch. starts at 2,000 for porsche. about volvo is concerned, make things easier. charles: do you think it'll work? >> right now seems to be pretty popular. i talked to someone under 25, just the insurance on it would cost him 300 to 400 a month. charles: a lot of different things that people can get a car for the week, you have uber, it's become very competitive this whole space it feels like to me. >> plenty of options. it's really about convenience. you're a penny-pincher, maybe not the best program for you. if you have cheap insurance where you live, maybe not the best idea. it's a very nice option. charles: what do you think about the electric cars that emac was

talking? >> cars don't go that far but people realize that they don't need to drive that far. i still personally think you have to get 200 to 30 miles before anybody is interesting in them. [laughter] charles: thanks a lot. three u.s. hostages are now returning with secretary of state mike pompeo, another diplomatic win for president trump. the second hour is next. pah! that will never work. no, no, no, nah. a bulb of light?!? aha ha ha! a flying machine? impossible! a personal' computer?! ha!

smart neighborhoods running on a microgrid. a stadium powered with solar. a hospital that doesn't lose power. amazing. i like it. never gonna happen. . . . . .

charles: 10 a.m. on the east coast. 7:00 a.m. out west. i'm chars pain in for stuart varney. big hour coming up for you. -- charles payne. they are all slamming president trump's decision. president trump says the whole deal was based on a lie we're

all over it. venezuela adding more sanctions but not just on its oil just yet. we're asking the question we ask all the time. what is the end game for venezuela? >> 30% of work could be automated by 2030. sounded like a lot of lost jobs. a guest will tell us how robots and artificial intelligence will transform our society. how we can deal with the change. we love this good story, success stories. it is all about american success. "varney & company" all over it. we went literally smack among friends on a golf course to millions of dollars of revenue. a small business, heart of america, that has become a big business. we have it covered for you. you're watching the second hour of "varney & company." ♪

charles: checking the big board, hanging on by a thread there. still in positive territory. all three major indices are higher. let's check the big names we check here on "varney & company." big move of course in oil. that is where it's at. chevron, exxonmobil two biggest gainers on the dow jones industrial average. disney on the other hand, one of the biggest losers on the dow despite announcing movies and theme parks are doing exceedingly well. walmart another big loser, the biggest loser have agreeing to buy a majority stake beating out amazon for that. four-year highs hits 71 in the premarket. still in the shadow of 71. jack hough baron's senior head tore. when do you think we make the

next leg higher in the rally? >> the bar is pond yields, 3% 10-year treasury, that is a low bar. stocks are the place to be. i think the juiciest returns are behind us. you would be crazy not to believe that given the run we've had. but no sign of recession on the horizon, earnings growth is good. this year we get a big boost from tax cuts. i think next year we got follow-on effect, stimulative effect, i think solid chance if not double-digit return, a high single digit return. charles: we had solid job growth. we did have solid wage growth. not the kind of thing that would spook the fed practical reserve into overreacting? >> what would we see cause us to worry about recession? we're not seeing it. weak housing market? we're not seeing it. goldman says 5% chance of recession next year, 3% over three years. this late in economic expansion i take the numbers for sure. you could see double-digit

earnings growth and single-digit rise in stock prices. add a couple percent for dividends. i think you would be happy asking everything under the sun. charles: apple will hit one trillion dollars by the end of this summer? >> i'm talking crazy on apple because i'm saying apple deserves a normal stock market valuation. s&p 500 is 16.3 times forward earnings. i'm saying apple is a normal stock. keep defy being expectations. people say the end is near. the end is not near. people are waiting to upgrade in the fall, double-digit earnings growth. who else trades at 16ish times earnings? charles: always traded like that, right. for the most part one much these stocks where the valuation metrics have been, seemed to be so low. >> it was making ground. it was 10 times earnings. it was 12 times earnings. now 15 times earnings. what is 16 times earnings? , progressive, auto insurance,

or o'reilly auto parts. i think it could hit trillion dollar valuation by the end of the summer. and provide call it low double-digit returns. charles: could wild card factor be the service business? that blew away expectations in the last earnings report and feels liketh taking advantage of bit-in advantages they have but maybe never tried to exploit? >> service business is high margin. derisks the business. reduces earnings volatility. the key with phones, we can talk about the next model whether it gets people to up frayed. the retention rate is so high for these phones. it is not a matter if people upgrade, it's a matter of when. people don't upgrade two years, you get them on next one. they want better battery life. charles: people still critical of tim cook say the company is evolutionary rather than revolutionary? >> i would tell them look at a chart of the company and look how much market value added

under tim cook. if tim cook is the poster person for what you would want a company chief to do. charles: they doesn't need invent something we never heard of before and revolutionize our lives? >> they generate enough free cash to do it. tens of billions of dollars they can put into research. so those things are surely coming. they're doing enough right now. >> i agree wall street always underestimates the stock. never sell it out of my retirement account. pick up every now and then when it dips. thank you, jack. let's get to president trump's decision to withdraw from the iranian deal. look at quote from former national security advisor, susan rice. president trump has ceded the moral high ground and freed iran from all those constraints. iran will be able to resume nuclear activities without being blamed for violating the agreement. joining us jason chaffetz, former utah congressman, fox news contributor. why is the left so apoplectic about this? why does it feel like they try

to justify any belligerent behavior may come from iran? >> susan rice's opposition this exhibit a probably why you should do it. it was a terrible deal from the beginning. they should have never turned over 100 plus billion dollars to iran, giving them money they could fund terrorism around the world. and you didn't have a verification program that was in place. you could not immediately go to a site and inspect it. and the president is right on this and he has done a masterful job negotiating the bringing home of hostages in north korea. you have kim jong-un coming to the table. that situation is going right. i believe in peace through strength. the president does too. and he is taking a harder position in iran. and it is, i'm sure the liberals don't like it. they had a chance on all these topics an they failed. charles: jason some conservatives saying hey, iran never violated the deal, perhaps the spirit of the deal but not

the deal itself. what do you say to them? >> the problem it put iran as previously kruked put them on a pathway to guarranty the fact they would actually be able to have nuclear weapons. if you look the way they used their money, they didn't inject it back into the economy. they injected it into terrorism. they're creating problems in syria. they have been doing some missile testing. the houthis that they have been running arms and money to in yemen to cause trouble in saudi arabia, these are all problems they have created. charles: let me ask you quickly because you're in a split screen right now with gina haspel, president trump's pick to lead the cia. she will give her opening statement. we want to share that with the audience. your thoughts on her confirmation? >> first woman to lead this position. it has been since more than 50 years since somebody from the rank-and-file has risen to this level. she is the, been the deputy to mike pompeo over the last 15 months. she has done what she was supposed to do.

i'm proud of the president's pick. and if not her, who else are they going to pick? they need somebody to lead the agency. she has been in the rank-and-file. she has done everything she was asked to do. i think she is a wonderful selection. charles: i thought every one would be unified and sell operate this selection. thank you very much, jason chaffetz. we'll chime in and listen to her opening statement. >> thank you very much. we'll now proceed to your opening statement, miss haspel. the floor is yours. >> thank you, mr. chairman. chairman burr, vice chairman warner, and members of the committee. thank you for the opportunity to appear before you today. i want to thank senators chambliss and bayh for the kind words and support. i would like to take a moment to recognize a few guests who have come today, including principle deputy direct are to have national intelligence and my

good friend, sue gordon, cia chief operating officer brian bulteow, mrs. susan pompeo, thank you for coming, the best ambassador i ever worked for, ambassador lewis sussman, and two dear mentors of mine, senior cia officers and then later senior ic officials, mary margaret graham and charlie allen. i am here because i have been nominated to lead the extraordinary men and women at the central intelligence agency. men and women who are our country's silent warriors. these dedicated professionals spend much of their careers in difficult, far-flung outposts of the globe, striving to make our fellow americans more secure at home it has been the privilege of my professional life to be one of those cia officers.

now i have been asked by president trump to lead this workforce and to continue the work that mike pompeo and i began a little more than a year ago, insuring that cia is postured to meet the complex challenges our nation faces. those challenges include a changing but still lethal threat from terrorist groups, a nuclear threat against the continental united states from a rogue state, destablizing iranian adventurism, and aggressive and sometimes brutal russia, and the long-term implications of china's ambitions on the global stage. while these challenges are daunting and offer few easy answers, i am confident that the united states and the american people have the resolve to meet them head-on. if i am confirmed as director,

you have my solemn commitment that i will position this agency to provide the intelligence support our country needs to meet the challenges of today and those of tomorrow. i welcome the opportunity to introduce myself to the american people for the first time. it is a new experience for me as i spent over 30 years undercover and in the shadows. i don't have any social media accounts but otherwise i think you will find me to be a typical middle class american, one with a strong sense of right and wrong and one who loves this country. i was born in kentucky and while my family has deep roots there, i was an air force brat and we followed my father to postings all over the world. my childhood overseas instilled in me a deep love for foreign

languages and cultures but also a deep understanding of the vital role of american leadership in combating aggression abroad. i join cia in 1985 as a case officer in the clandestine service. from my first days in training i had a knack for the nuts and bolts of my profession. i excelled in finding and acquiring secret information that i obtained in brush passes, dead drops, or in meetings in dusty alleys of third world capitals. i recall very well my first meeting with a foreign age en. it was on a dark, moonless night with an agent i never met before. when i picked him up he passed me the intelligence and i passed him an extra $500 for the men he led. it was the beginning of an adventure i had only dreamed of.

the men who ran cia in those days leaned forward in giving me the right opportunities to succeed or fail. when a very tough, old-school leader announced that i was his pick to be chief of station in a small but important frontier post, a few competitors complained to me directly. why would they send you? i owe that leader much for believing in me at a time when few women were given these opportunities. well i could have done without some of the long nights sleeping on the floor of my station, i was proud of the work we did there including the successful capture of two major terrorists in the wake of the africa embassy bombings, a counterproliferation operation that went our way, and the dismantlement of a local terrorist cell. all together i have served seven tours in the field, four as chief of station, including

hardship assignments in distant posts and more recently in the capital of a major u.s. ally. by any standard my life at the agency, and it has been my life, has exceeded all of my expectations, from that january day when i first took the oath to today. there were few senior women leading at cia in those days, and we are stronger now as an organization because that picture is changing. i did my part, quietly and through hard work to break down some of those barriers. i was proud to be the first woman to serve as the number two in the clandestine service. it is not my way to trumpet the fact that i'm a woman up for the top job at cia, but i would be remiss in not remarking on it. not least because of the outpouring of support from young women at cia and indeed, across

the ic because they consider it a good sign for their own prospects. my experience and success as an operations officer led to three leadership positions in the clandestine service. and one year ago i was asked to serve as deputy director of cia. the reaction of the workforce to a rare nomination of one of their own to be director, someone who has been in the trenches with them as been overwhelming. i am humbled by their confidence that i can successfully lead this agency and inspire to work harder than ever to maintain that trust. they know that i don't need time to learn the business of how cia works. i know cia like the back of my hand. i know them, i know the threats we face, and i know what we need to be successful in our mission. i have played a leading role this past year in setting us on

the right path and i intend on continuing on that path if i am confirmed as director. our strategy starts with strengthening our core business, collecting intelligence that helps policy-makers protect our country and advance american interests across the globe. it includes raising our investment against the most difficult intelligence gaps, putting more officers in the foreign field where our adversaries are, and emphasizing foreign language excellence, and finally it involves investing in our partnership both within the u.s. government and around the globe. we must do everything we can to follow through on these investments and to make cia as effective as it can possibly be because the american people deserve no less than cia's best effort. this is especially true when it comes to confronting threats

from north korea, iran, russia, and china. today cia officers are deployed across the globe, sometimes at significant personal risk, collecting critical human and technical intelligence. i have spent my entire career driving operations, and if confirmed, i will be able to leverage that experience beginning on day one. i knew that accepting the president's nomination would raise questions about cia classified activities and my career at the agency. i also understand that it is important for the american people to get to know me, so they are able to judge my fitness for this position. so over the last few weeks we have leaned forward to make more information about my record public. we have also shared details on every aspect of my career

through classified channels with this committee as well as with the rest of the senate. i think it is important to recall the context of those challenging times immediately following 9/11. for me, i had just returned to washington from an overseas posting, and i reported for duty on the morning of 9/11. i knew in my gut when i saw the video of the first plane hitting the tower in manhattan, that it was bin laden. i got up and i walked over to the counterterrorism center as the cia compound was evacuated and i volunteered to help. i didn't leave for three years. we worked seven days a week and i even had friends who postponed weddings and having babies. the men and women of cia were driven and charged with preventing another attack. the first boots on the ground in

afghanistan were my colleagues. the first casualty in afghanistan was a cia officer and colleague. and it was cia who identified and captured the mastermind of 9/11 in a brilliant operation. i am proud of our work during that time, the hard lens sons we learned from that experience informed my leadership of cia today. in light of my counterterrorism experience i understand that what many people want to know about my views on cia's former detention and interrogation program. i have views on this issue and i want to be clear. having served in that tumultuous time i can offer you my personal commitment, clearly and without reservation, that under my leadership, on my watch, cia will not restart a detention and

interrogation program. cia has learned some tough lessons from that experience. we were asked to tackle a mission that fell outside of our expertise. for me there is no better example of implementing lessons learned than what the agency took away from that program. in retrospect it is clear, as the assistant majority report concluded that cia was not prepared to conduct a detention and intear -- interrogation program. today the american government has a clear, legal policy framework that governs detentions and interrogations. specifically the law provides no individual in u.s. custody may be subjected to any interrogation technique or approach that is not authorized by and listed in the army field manuel. i fully support the detainee

treatment required by law and just as importantly, i will keep cia focused on our collection and analysis missions that can best leverage the expertise we have at the agency. like i said, we learned important lessons following 9/11 as both a career intelligence officer and as an american citizen, i am a strong believer in the importance of oversight. simply put, experience has taught us that cia can not be effective without the people's trust and we can not hope to earn that trust without the accountability that comes with congressional oversight. if we can not share aspects of our secret work with the public, we should do so with their elected representatives. for cia oversight is a vital link to the open society we defend. it is a defining feature of the u.s. intelligence community and one of the many things that

distinguishes us from the hostile services we face in the field. if confirmed as director i will uphold the agency's obligations to congress and insure that oversight works on behalf of the american people. mr. chairman, i want to thank you and the committee for the hard work that is put into the oversight process and for the vital support that committee provides the officers at cia. cia has given me a lot over the past three decades, a calling and service to my country, some real-life adventures and the profound satisfaction of serving with some of the most talented and honorable men and women in our government. if confirmed i hope to repay the debt i owe to this remarkable agency by drawing on my experience. i know what my fellow officers need from me and i know what our

nation needs from cia, that is truth, integrity and courage. thank you for allowing me the opportunity to appear before you today and i look forward to your questions. >> miss haspel, thank you for that testimony. let me inform members that -- charles: gina haspel, she is president trump's nominee to head the cia, explaining or at least trying to introduce herself to the american public, starting by saying she spent the last 30 years more or less undercover, in the shadows, no social media account, letting us know she is your typical middle american, air force brat from kentucky and what i found really amazing about all of this is her journey was absolutely phenomenal. seems like the kind of journey that america these days want to celebrate tremendously. emac, what did you think. liz: yeah, she is 33 years at cia. seven foreign postings. one comment she said stuck out, i do not need time to learn the

business of how the cia works. i understand it inside and out. widespread support within the cia for her to be its leader, including from women, the first woman to run the cia. charles: good point, ashley. she said when she joined in 1985 she had a knack for the nuts and bolts how all these things work. ashley: she has gone from there. she has the support of rank-and-file, those people that worked with her. democrats will go after her on her role in the interrogation program. they are upset she refuses to declassify some documents around her tenure. they are classified for a region. she may go behind closed doors to speak to some committee members where they get access to more information. bottom line she is a career professional has done exceptionally well gotten to this point. liz: to ashley's point, which is important one, gina haspel says she will not restart the cia interrogation and torture

program if confirmed as director. charles: giving shoutout to the men who led the cia for quote, unquote, leaning forward to help propel her career where it is right now. folks let's check in on the big board, the dow 30 stocks are on a holding pattern. the majority of the names on the big board are higher. look at anheuser-busch inbev, anheuser sales were down 4% in the quarter but revenue up, costs down. the stock edging higher. papa john's shares are down after earnings and sales missed their mark. ford said it halted production of some of its most profitables vehicle, talking about the f-150, super duty pickup trucks, to u.s. factories. there was a fire at a plant that supplies parts for those trucks. our next guest argues that the health care industry and other industries will benefit tremendously from the advancement of technology and artificial intelligence. joining us the author of the future of work, brookings

institute center for technology and innovation. darrell, the health care industry of itself, explain the changes and benefits of them. >> there is a lot of technology coming into health care. patients are using remote monitoring devices to monitor their vital signs and send them electronically to their physicians. technology is a big help to people in rural areas often don't have access to the latest expertise. they can do videoconference calls with physicians in urban areas. there are lots of ways that technology is going to be very beneficial for health care. charles: i find it interesting, unfortunately, over the last 10 years i visited a lot of hospitals in a variety of states and the computer systems themselves are so antiquated, you wonder how you can make the leap to advancements like robotics and artificial intelligence. >> that has certainly been a major challenge in the health care area. in general, both education and health care have been slow

adopters of new technologies. look at other areas in terms of retail, the restaurant business, transportation, certainly will get disrupted through driverless cars. health care has always been a bit slow on the technology front. charles: without necessarily sounding like ludites, when we say it will help a certain sector, sounds like a euphemism, also that means fewer humans doing the work. how do we juxtapose these two things? >> certainly sectors like retail, we'll see a lot of automation. amazon is experimenting with stores without sales clerks. basically they have devices that will monitor the products you put in your showing cart. they will automatically charge your credit card or mobile device for what you purchase. you will leave that store without any dealings with sales clerks. that worries people on the jobs front, in terms of these technologies will take jobs. there will be new jobs created. we need more data scientists but

many americans do not have those skills. so it could be a rough transition period. charles: as the author of, the future at work, that transition period sounds very scary throughout history, from the very beginning, futurists told us robotic was free mankind up for greater pursuits beyond work. is that too lofty of a goal at this stage? >> it's a lofty goal but there is a chance in 20 or 30 years we may reach that goal. if we adopt the right policies in terms of helping workers who are going to be displaced by this, putting more effort into workforce development, revamping schools so that the young people today have the skills that will be required in the 21st century economy, i think we can do very well. of course it will be a challenge in a very polarized and partisan environment to make those kinds of policy changes but we need to start the process right now to help those workers. charles: i'm worried about when

the robots unionize. darrell west, future of work, looking forward to reading it. >> thank you. charles: it is official. walmart bought cliff parts. ashley you have the details. ashley: $16 billion for this share, gives them 77% stake in flip cart. they bought it from softbank, the tech company out of japan. they have been scaling back walmart, other places in the world, notably, brazil, mexico, to go after the indian market. flipkart never made a profit. it is burning through crash. it lost 3 1/2 billion dollars since founded in 2007. this is built on expectations. india is a huge market. 60 million people use e-commerce. that is 14% of the potential of country of 1.3 billion. charles: economy is growing, right? per capita extraordinarily low but it is growing. ashley: it is all on potential.

walmart acknowledges, made short-term losses for long-term gain with this play. charles: get a quick check of the big board. we've been in a holding pattern. the dow up only 22 points. not necessarily a big deal. weekly inventoryies, oil, are breaking. e mack, you don't have the numbers yet? liz: down 2.2 million, this is three times the drawdown that was expected. 2.2 million barrels less oil in storage. they were looking for a read of 719,000. watch oil start moving a little bit higher. it is at a 3 1/2-year high. u.s. energy companies, charles, are ramping up oil rigs they're putting out there to three-year highs. s&p energy sector is up 2 1/2%. oil is at a 3 1/2-year high, a surprise drawdown, bigger than expected 2.2 million drawdown. oil is moving higher. charles: above 71.

stay on oil, to bring in scott shellady, tjm europe managing director. scott, oil is reacting to president trump's decision to pull out of the iranian nuclear deal. how much is adding to this and how much other factors? >> there has been a little bit of a perfect storm. geopolitically the situation in iran. some of the numbers are supply tight. but at the end of the day, just like interest rates and housing market, i don't think you will see oil run away from us. 75 will be difficult to get through, ultimately maybe 80? we'll see what the stock market does with the battle of the threes. 3% bond and three dollars at the gas pump. battle of threes will come into play. we've been finding a ton, permian basin, alaska around the world. i'm not worried about too far

away but could get another five or $10 higher. charles: scott to your point, oil go up and gasoline prices. there are market implications and main street political implications as well but would that be enough of a shock to the system to derail the sort of resurge end consumer. >> i don't think it would be a shock to the system. it would be a deadening factor, maybe keeping equities on hold a little bit. charles, we have a lot of volatility in the market. we also have got interest rates a lot higher. that will weigh on valuations at the same time you might see some of these things slow down. we've had a great earnings season. the real smart guys are wondering why we're not getting more bang for the buck. there is a leak in the economic system. they're trying to figure out where it is. ultimately oil could be something slows us down and keeps us sideways more than expected. things are going better than they have been. liz: scott is absolutely right.

oil prices are stuck in a range for five years. there is a lot of hand-wringing, hysteria what is going on with iran. should be pointed out iran needs oil revenues to survive. 2/3 of their economy is oil. they will need to sell irv if they are going to survive. they're talking about 250,000-barrels as day if removed iran sanctions. it was a million barrels a day moved out iran before the embargo, or the iran deal in 2015. charles: right. liz: this is a bit of overreaction what is going on with iran in the oil markets. charles: real quick, scott, before i let you go, as a trader you must love the volatility but even traders must be getting whipsawed occasionally here? >> they are. listen to our customers we talk on daily basis. it has been tough. i think you will agree with me, charles on this one. in this type of market you make a mistake and get punished so hard and so difficult to make it

back. sometimes things are going well, you make a mistake, the market gives you a chance to come back. that is not the case anymore. you have to pick them and pick them right, because if you don't and get her there is not a ton of ways to make it back. charles: i argue against quarterly i earnings reports. this is crazy. companies lose too much for small businesses. scott, appreciate it buddy. dig the glasses. tech names for you, mixed bag, facebook, amazon slightly higher. apple and microsoft slightly lower. now this president trump tweeting about the negative media coverage, quote, the fake news is working overtime. just reported that despite the tremendous success we are having with the economy and all things else, 91% of the network news about me is negative quote, fake. why do we work so hard in, working with the media when it is so corrupt? take away credentials, question

mark? we have brent bozell. the numbers get more astounding as we go on. 91% is absolutely astonishing. >> charles this has been going on since 2016. i think, i don't think i have ever seen anything like this. not just that it is almost 100% negative coverage, but that it won't stop. this has been going on every single time we measured it, month by month, quarter by quarter. i think the best month he got was during his honeymoon when it went to 85% negative. i'm not kidding you there, i am not kidding you. they are vested in seeing him fail. he has said so. the evidence is there. look, during this time period the first breakthrough in the cold war with north korea in 60 years. that didn't generate anything. you have had a strong economy. that didn't generate anything.

strong jobs report as a result of tax cuts, that didn't generate anything. overreach much mueller. look at a judge two days ago blasting that investigation. believe it or not that garnered a grand total of combined for cbs, nbc, 30 seconds. they are simply not going to say anything positive about him. i say the last thing. i find it very interesting, and i think it would be a whole lot of fun, if he were to follow through on that tweet and start banning these people from covering the white house because they have no vest from in objectivity. charles: i have to tell you, the assaults that i have seen on sarah sanders is remarkable. i want to ask you another one, before i do, have you ever seen the media to work so hard, to pontificate of potential negatives of good news? in other words if the economy is great, maybe it will spark inflation. if we do this, maybe that will happen. what would normally be great news, they work very hard to try to find what could be the negative counterfactual.

>> i like you saying that, charles, because it is so true. go to cnn look at chiron with the stories. i burst out laughing when i see these things. the other day i headline said, source colon, macron disappointed with talks with trump. no kidding, sherlock. he came here to try to talk him out of canceling iran deal. doesn't mean anything went wrong. other people were disappointed they couldn't move him. there wasn't anything wrong with that. source, colon, another problem. charles: look at cnn april ryan said about first lady melania trump. >> this is a first lady who is not culturally american but she is learning the ways, and this is not just an american issue. these are not just american issues. charles: brent, your reaction?

>> you know, you always say put a democrat in that position and see what would happen. i find it curious that abc has been running on national news stories about melania trump isn't living in the white house. the white house is laughing about this story. everybody, nobody on this set is going to say that they're surprised about all a the talk about the separation of bill clinton and hillary clinton over a number of years where they don't seem to be together. news media would never touch that story. yet, abc is all over a story that somehow the first lady is not in the white house. charles: on a though this thing culturally. the same folks that promote open borders, that promote supposedly promote all the different types of ethnicities and religions in our country, the mosaic of america, to question her americanism seems so farfetched and hypocritical it is beyond

the pale. >> it is but also personal. it is vindictive and ugly. don't you find it a little bit interesting, charles, these are the same people who also lecture on a daily basis about how conservatives are responsible for hatred? charles: yeah. >> if that isn't hatred of donald trump, it would extend to his wife, anyone who knows her will tell you she's a class act. you may not like donald trump. that's fine but to extend it to his wife, once upon a time we said that was off bounds. charles: yeah, yeah. brent bozell, absolutely right. always appreciate your work. >> thanks for having me. charles: drones coming to a city near you. the administration unveiling 10 state an local governments that will host drone tests. big business wants in big time. we're all over that next hour. holding elections on may 20th after the u.s. placed even more sanctions on them.

we're on that as well next. ♪ there's nothing small about your business. with dell small business technology advisors you get the one-on-one partnership you need to grow your business. the dell vostro 15 laptop. contact a dell advisor today.

>> in the last hour congressman louie gohmert believes nancy pelosi witness to raise taxes in bipartisan way to blame republicans if it backfires. take a listen. >> if you notice it, charles, it is a bit confusing to some. we want a bipartisan tax increase. in other words, what is crazy is, when she was speaker before, she would get republicans to vote for her crazy stuff but she wants it bipartisan so they don't get thrown out when they raise taxes which is what they really want to do. you of all people know exactly what happens to the economy when you start raising taxes like that. ♪ let's begin.

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what about a dedicated service team of trading specialists? did you say yes? good, then it's time for power e*trade. the platform, price and service that gives you the edge you need. looks like we have a couple seconds left. let's do some card twirling twirling cards e*trade. the original place to invest online. charles: breaking news. fox news's john roberts says white house sources tell him president trump is expected to threaten to veto the farm bill if it doesn't include tighter work requirements for people on food stamps. now to venezuela. vice president mike pence will announce sanctions on venezuela, this ahead of that country's election on may 20th. joining us now blood profits author vanessa neumann. vanessa, we haven't sanctioned venezuela oil yet. could that be the next thing that happens? if we did what would that do to the country? >> i doubt the americans will,

various talks around washington, d.c. and think tanks, they said that is unpalatable to the u.s. government for various reasons. first off, they don't need it. the venezuelans are doing excellent job collapsing their own economy. production is way down. employees left for lack of work. they're stealing parts of machinery, like four tons pieces of machinery, which means large groups of people. they actually can't produce that they can't pay people, what the u.s. might do, they might sanction their suppliers like things that they need, that you can't sell bits that you need to refine venezuela's crude which is particularly heavy and sour. which means it needs to be upgraded before going to a refinery and has a heavy sulfur content. if the u.s. sanctions the oil industry, even though a lot of money still goes basically to

the military and the corrupt regime, not the people, the u.s. is afraid they will own the problem of the humanitarian crisis. that it will be blamed on the americans rightfully or wrongfully. why have the headache when you let it alone and tinker on the edges. charles: makes sense alone the public relations aspect. the people of venezuela, almost starting to look like a middle eastern refugee situation with people exiting to the other countries. what is that all about? >> they're basically escaping poverty, violence, hunger. they have given up, part of it is they have not seen effective opposition leadership. there is an opposition group but they have been rejected as the regime. the regime keeps cracking down. a majority of venezuelans are hungry. they have lost 24-pound in a

year. they can't get food and medicine. they have higher mortality rate for infants than syria. they are just leaving. is -- 1.7 million will leave. brazil and colombia are up in arms. they are coming across the border. they're literally posting military at the border. what are they going to do? they are going in boats to the caribbean island particularly belong to the netherlands. this is getting worse and worse. we're having hyperinflation of 18,000% according to imm. we're already there. which means you can't, five-year's retirement buys less than a cup of coffee. so it's, the hunger is just accelerating rapidly. no regime has ever survived this kind of hyperinflation for long. liz: vanessa, sorry, it is liz macdonald. sources in venezuela say maduro and chavez gave the military power over commodities, over the

mining in or roanoke cobelt. >> absolutely. charles: that is why the military will not rise up against to get rid of ma during roy. that is what is going on? >> that is exactly right. why the military is not rising up yet, and u.s. is imposing sanctions to people that fund money into the military r they set up a giant system of corruption they're no charge of the oil, in charge of the mining and in charge of the food distribution. with the starvation, they steal 70% of contents of boxes before that had five levels of corruption before they reach the people. this is why they're not rising up. they feel if the opposition wins, they are going to be crucified and they will lose their money. so the u.s. is trying to basically be very strategic in sanctioning the heads. one thing we can say about what we've seen in the sanctions, the americans know what is going on. they clearly are well-informed. charles: america knows and you know even more. we appreciate when you come on and share the expertise,

although hard to listen to. vanessa, thank you very much. >> thank you very much for having me on. charles: the parents of applebee's, ihop, on the hunt to buy a new fast casual chain by the end of the year. here are dineequity shares. they are pulling back at this point. sears auto centers working with amazon to provide full tire installation and balancing for customers that buy any brand of tires on amazon. we love success stories on "varney." we'll bring you a company that went from a snack among friend on a golf course to bringing in millions of dollars in revenues in just a few years. ♪ prudential asked these couples: how much money do you think you'll need in retirement? then we found out how many years that money would last them.

how long do you think we'll keep -- oooooohhh! you stopped! you're gonna leave me back here at year 9? how did this happen? it turned out, a lot of people fell short, of even the average length of retirement. we have to think about not when we expect to live to, but when we could live to. let's plan for income that lasts all our years in retirement. prudential. bring your challenges.

charles: now to a success story that's all about american business. our next guest is the cofounder of chef's cut real jerky. just four years jeff cut saw the profits rise more than 465,000 to 47.5 million. come on in dennis, chef cut's real jerky co-founder.

how do you go from 400,000 to 50 million in four years? >> it is a heck of a run. charles: a heck of a run. >> people with great partners in the business. our partner row hand formerly with vitamin water, accelerated things. hail len brand, another fund gotten behind us. charles: is that about distribution, one of the key things, finding right distribution outlets for this? >> it is. luckily they have come to us with a lot of experience, a lot of knowledge of the space and helped us. charles: which have to begin with the product, right? because beef jerky products everywhere. you wonder how this company enters a market to make such an amazing splash in such a short period of time? >> luckily my business partner blair was a former chef. hens the name chef's cut. we use people july quality. we're a chef crafted brand. we differentiate ourself, put out in a niche of our own. it has been working. we see retail pull on the shelf.

charles: what are your plans? seeps like that it has grown so quickly, you have a handle on everything? do you have a longer-term plan? are you riding a wave right now? a we're riding a wave and it has been a good wave to be on. longer term we see this as a chef-crafted trademark brand we can take beyond the jerky space. we launched projectorky, to sticks, to protein cups. we think thinks a lot of room for growth. charles: chef's cut, what you're trying to brand. you can apply anything to it. a lot of white space and a lot of, you know, different segments of the store that need destruction. charles: potentially 100 million in a couple years? >> we think so. we'll do over 50 million in revenue this year. and, we're growing at a pretty fast clip. i think we can get there in couple more years, yeah. charles: has this, sort of diet phases, has that helped you as

well? i find that one of the snacks i can eat is beef jerky? >> yeah the diets have been, you know, a huge craze right now. the millenials are really getting behind healthier, better for you snacks. that is where we're seeing a lot of growths. we have lower sugar, lower sodium in all of our products. that is something we're conscious. charles: guys, how was it? ashley: very good, charles. liz: delicious, i will have it after the show. we love a story like yours. >> thanks for having us, we slipped in the red for the dow. struggling to hold on to gains. president trump is slamming president trump for getting out of the iranian nuclear deal, listening out six quote facts we shouldn't have done. why we shouldn't have done it. we have sebastian gorka coming up. he will respond. the third hour of "varney" is next. ♪

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11:00 a.m. in new york, 8:00 a.m. in california. good morning i'm charles payne. new this hour, president trump will hold a meeting at the white house. north korea will likely be on the agenda. mike pompeo is on his way back with three americans who were held hostage. any news from the meeting we will get you there. the city of santa clara just becoming the first city in l.a. county to formally oppose the century city law. the revolt continues to spread there. nancy pelosi is back at it lasting the president's tax cuts. she has big plans to roll them back. trump says bring it on. the third hour of "varney and company" begins right now.

♪ ♪ >> we begin with this. president obama slamming president trump's decision to withdraw from the nuclear deal. here is part of a lengthy statement he released. today's announcement is so misguided. walking away from the jcp away turned our back on america's oldest allies. there always be changes in policies and priorities from one of ministration to the next, but the consistent flouting of agreements that our country is a party to risk a road in america's credibility and puts us at odds with the world's major powers. joining us is sebastian, former advisor to president trump. your reaction. >> business and s&l script? is his new job writing bad

scripts for calmly shows, undermining our credibility? that was the last eight years. he started his presidency on an apology to her. he said we need strategic patience and were going to lead from behind. this is a man who treated our friends like israel has enemies for eight years and treated our real enemies like iran as friends, giving them pallets of cash. it's incredible. look at the news. the hostages are now on their way back from north korea and he still doesn't get it. american leadership is back under president trump and there's a very simple calculus. a world without american leadership as was the case under obama, was a very dangerous world. the rise of isis, russia invading its neighbors, resurgent china and america, a world with american leadership as we have today is a much much safer world. >> it is a huge obligation.

i think it was one president obama was never comfortable with, but america being the number one country in the world, that obligation came of the territory that you couldn't lead from behind. that meant sometimes making people upset. there are reports that are in -- >> it's so telling that the jcp away iran deal isn't an international treaty. didn't go to the senate. why? because obama knew it was a bad deal and he knew he couldn't convince the democrats to find on to this bogus deal that literally puts death to america on the no's cones of its rockets. this is how bad the regime is. he knew he couldn't make it a treaty. the sad thing for obama, as of yesterday, his whole legacy has just gone up in a passive

smoke. the generational thread has disappeared in terms of its caliphate. north korea peace talks. and this it's gone. of course you have to respond, but it's too late. >> let me follow up on that. mike pompeo is on his way back from korea with three american hostages that were held over there. this is a gigantic victory for president trump and i have no idea how the mainstream media is going to spin this negatively although you reference that so i'm sure they will attempt it. >> i'm sure they will. this morning i tweeted out as soon as i have the word of my campaign, how are you going to spin this ben rhodes and barack obama because there is no way to spin this. this is what happens when america shows determination. you treat dictators like dictators, you squeeze them as we did in north korea, and what happens, they want to

talk. i want to release her hostages. that's the american way. >> i don't have much time, but i want to say quickly i know we should be skeptical, but are there enough changes in behavior north korea this time as opposed to historically to at least give us some hope that something will be done. >> at the end of the day, you must be very skeptical. with the regime is evil as north korea, we don't know if it's going to bring a peace treaty, but look, to date, everything has gone to plan and it's the first time in 65 years that we may take the peace treaty in korea and that would be historic. >> thank you very much. the index now is dipping into the negative court category. it's not town a lot but it has been a slow drift. we also look at oil and inventory numbers, crude was above $71 a barrel.

that was obvious the bigger than expected. joining us now, managing director of investment, let's start with oil. >> we are seeing rigs come back online and despite the iranian situation, some folks are thinking maybe it's come to far, too fast. >> short-term it may have. where we see the opportunity, what i'm doing for my clients is primarily looking at the midstream and the partnership world so there you have a yield of around 8%. you have a self funding mechanism whether using a lot less leverage, the big characteristic is enterprise value trading at nine times compared to s&p of 11. >> mlp has had a huge run for

a long time but then they collapsed. they were seeing it as this sort of ful foolproof safe haven and then the bottom fell out and a lot of people, particularly retirees got hurt in them. we viewed them just a little more cautiously. also there was hope that in this last tax bill that they would widen it to cover more than just oil investments but that didn't happen just yet. >> right. let's adjust your first statement. there's no such thing as safe haven. it's a stock. it's going to trade and it's gonna go through cycles like any other industry. when it did collapse, when oil went up $30, there was an issue of how much can go through the pipes. at that point, the supply just continues in these guys make money on the amount of oil that goes through the pipeline. it's also true that was heavily with retail investors because of the yield. many of those investors walked away, oil went from 30 - 70

yet most parts have not rallied. the characteristics, if you analyze it are about 25% at a discount to a ten year average as far as valuation. >> but also an argument for a lot of oil stocks. >> i can understand why those would be more sensitive but the mlp shouldn't be as sensitive with oil at 70 because now that they reduce the course to allow $30 in production, there's a major buffer there. >> i would ask about another one because speaking of taxes, you're saying that the full benefits and the tax benefits of the new tax laws haven't been built into this economy yet. >> i don't think at all. it may take you behind the curtain in my own little double. we manage about 150 ultrahigh network business owners. they range from small to the forbes 400 less.

the minute that bill was passed they all had a decision to make. are we going to expand? almost 90% wanted to take on new projects. now you have a person that prior to analyze facts they should build it. you just got a third more income. now the internal rate of return jumps to 18. that person now wants to take on that project. from the time they decide to the time the factories built, to the time it shows up in gdp, that is not may 8. we just set up the most fertile ground for this country to move forward that we've ever seen and it certainly the best place on the planet to build the busines business. >> i agree 1000%. i like your assessment. even republican politicians are talking too much about bonuses and not enough about this long-term benefits that will continue to come for long time. >> i think the market adjusted 30% permanently due to taxes and its pricing that and i don't tickets pricing in the growth that we can have for

the next five years as long as some of the other valuables don't screwed up. >> thank you very much. >> thank you for having me. >> you pay about 23 billion for liberty access. meanwhile walmart agrees to buy 77% in india's flip card for $16 billion. edifact now says over 56000 drivers license passports and other ids were stolen as part of last year's big data breach. and now, here's a sign of a strong economy, the number of job openings in america are at an all-time record, 6.6. million in march. that's the highest it's ever been but employers are struggling. they cannot find qualified workers. >> it was a big night for the gop primary wins first candidate setting up for potentially the party to take three democratic seats. were talking in the senate ohio, indiana and west virginia. of next, the chair of the ohio republican party. president john getting ready to hold a cabinet meeting. were watching for news of that. of course, it's all about your

money so stay with us. the third hours just getting started ♪ ♪ ♪ ♪ ♪ with expedia you could book a flight, hotel, car and activity all in one place. ♪

>> you are running straight down the trump line. your businessman, your trump guy. accurate? >> very accurate. when i saw the present clear the field back in the 16 primary, it was kind of an inspiration for me to at least take about it. >> that was businessman micron on this program just last week. he won the senate primary defeating with luke messer. now he takes on senator joe donnelly in november. we hope to have them back on the show later this week. >> let's sit in on these

primaries. they reject the french candidates in ohio, congressman jim defeats his rival and will face brown in november and presently trump is tweeting about the new york governor's race. congratulations on his big win in the great state of ohio. he will be a great governor with a heavy focus on health care and jobs. the socialist opponent should not do well, a big failure. [inaudible] >> it was a great night for the ohio gop. we had great record turnout, democrats always talk about the blue wave, a crash last night in ohio. we had 150,000 more votes in the senate race and we are ready to win in november. >> what you account for that

because typically the party out of power is normally the most energized and of course with the media hyping a so-called blue wave, this has been one of the supposedly characteristics of that and yet your point, republicans came out big-time last night. >> they did, and i can tell you, president trump's agenda is working in ohio. they want the trump agenda. when you realize that this time last year our unemployment rate was 5.1% and it's now down 4.4%, jobs, were growing jobs and businesses are growing, they're investing and expanding their businesses , business after business in ohio like keybank, nationwide, schmucker's are giving bonuses to their workers and they are investing in their operations. >> for the fall, we know there are your typical pocketbook issues but it seems like one issue that could be better in your state is a constitutional

amendment on gerrymandering. 3 - 1 people would like to see something done there. if that becomes an issue, with that favor your party? >> power issue one passed last night. it was a ballot initiative that had bipartisan support. the issue of gerrymandering will not be on the table in november. >> so that won't be an issue? was on pennsylvania where just the talk of it, how unfair things had been had lingered into that race. what will be the number one issue than that differentiates the gop candidates. i consider brown a socialist on many things to be quite frank with you. >> you're absolutely right. brown is. [inaudible]

the big issue in november are basic fundamental values. they are proven leaders. in 2016, 16 of the 24 counties that chair brown one flipped for president trump. jim is primed and ready to win in november. he has a great history of beating incumbent democrats and he will do it again and we will just remind people that the democrat ticket is out of touch with ohio voters and we will have a great night in november. >> i gotta tell you, i'm looking forward to hearing about economic issues and self-improvement. politics of identity, i think that's old news. congratulations. it was great night. >> thank you.

>> the stock is 3% higher. profits fell short cap monster beverages. now take a look at anheuser-busch, sales down 4% but revenues were up in the costs were down. that kind of keeps the stock unchanged. now there's this, going to community college will be free for thousands of people in maryland. governor larry hogan signing a bill that covers tuition costs for qualifying students. what does the judgment about this? we will ask. also, california democrats are pushing jerry brown for an additional $1 billion in state funding to pay for health care for 100,000 undocumented immigrants. we will get to that story shortly. nancy pelosi can't help herself. she's all but guaranteeing higher taxes of democrats if they win in november. you will hear her say it, but

don't worry, trump is ready to take her on. more money, after this ♪ ♪ ♪ every way we look out for those we love is an act of mutuality. we can help with the financial ones. learn more or find an advisor at massmutual.com

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demonstrating how fancy robots can work together to build cars. they use about 2000 robots to build cars out of barcelona factory. a new car is built every 68 seconds. they have hundreds of employees at the factory to ensure everything run smoothly. >> wow. that's pretty cool. >> take a look at this. uber unveiling a flying car prototype. they say the car will conduct vertical takeoffs and landings. at first they will be piloted but the company hopes someday they will be autonomous. testing will begin in 2020 in dallas and l.a. volvo rolling out a news car subscription service called care by volvo. for 600 bucks you get a brand-new suv, car insurance and roadside assistance as well as basic maintenance. it's covered. there's similar subscription

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president trump holding a cabinet meeting right now. this comes just hours after president trump will announce that secretary of state mike pompeo is on his way back from north korea with three americans who were held hostage. president trump tweeted this. secretary pompeo and his guest will be landing in and ros andrews air force base at 2:00 a.m. in the morning. i will be there to greet them. you will see that historic video tomorrow right here on "varney and company". let's check the big board. the stock is just sort of limping along but there's more winners and losers right now.

criminals are exclusively using clones for all kinds of purposes including surveillance. joining us now is fred who is the author of the book the drone warrior, bret, obviously you have been very upfront about this whole drone thing, but now people are saying there's a better side to the story and that criminals are using these drones as well. >> exactly. good morning charles. drones of the future and the future is now. i think were just lucky that the criminals can't get their hands on the ones with the missiles just yet. in this particular case, we had fbi suspects were part of an organized, gang that had drones ready and in preparation for an fbi hostage rescue attempt that was taking place at the location. not only did they use these drones to swarm the agents and disrupt their operation, but by flying these little high-speed passes to try to harm them, they also live

stream the video from the drones to youtube so other members of the organization could see where these agents were vacated. imagine having this swarm of bees attacking you, except these bees are the size of basketballs and that they ha hit you in the head they will definitely leave a scar. this is just one more incident in a long line of cases where law enforcement is starting to see this technology being used in a different way and it's becoming a serious problem for them. >> how do you counter that? do you have to develop counter drones, jamming mechanisms quest market seems to frightening the way you lay that out. >> that's the right question. you really have to understand the scope of what were dealing with. that was a very unique case. criminals are using these and all kinds of ways. we have drug smugglers dropping contraband, we have illegal immigrants crossing our borders and in the last month we had an incident where $80 million worth of iphones were smuggled from hong kong

over to mainland china. criminal gangs are also using them to survey targets and intimidate witnesses and fly over police stations to see who's coming in-and-out. with happening right now is there is an ecosystem in silicon valley where these private sector companies are developing what we call counter u.s. solutions. that's guns and being able to take these drones over in the sky but really the problem is they need more money and on top of that, the regulations right now are something that they're dealing with because the technology solutions can disrupt their total medications. >> maybe we are making headways in that area. stay right there. i want to bring in susan. the feds are teaming up with several cities and businesses in conducting these drone exercises or experiment. >> there are productive ways to use drones. we will hear about the winners, these ten governments estate local tribals that will be part of this round testing

program for the transportation secretary elaine chao, and this is a way to encourage innovation but also to regulate safe use of airspace and drowns for the future so 200 companies, these are the biggest of the big, i'm probably naming some obvious ones like apple and amazon that want to test package delivery here in the u.s. they want to test connectivity and some of these locations you can get better wi-fi in parts of the country with at&t and verizon. they also have bowling and airbus coming in as well. the contest better use and safe use of lower flying airspace and ford is involved, we also have intel so there are productive ways to use drones. adoption is up from 40%. over three and a half million drones sold last year. the future is here. people are buying them. adoption is happening but you want to regulate them and probably test them in a

safeway. >> but the criticism has also been that we don't want to later regulations on so thick that the evolution of these things are slow down because the genesis here in america, we want to make sure we keep this technology growing. amazon doesn't seem to care. they're going at breakneck speed. they anticipate the government breaking down and allowing mass use of drowned. >> there already testing package delivery in the uk. it takes 13 minutes from click to delivery. >> don't tell my wife that. >> but we are behind already. were behind the rest of the world. india has already been testing this for many years. china, one of the largest grantmakers in the world, ice land is testing food delivery. >> they have to go to the uk because the faa wouldn't allow it. >> bret, your reaction? i know you've spent time and talk to the white house about these things, i know we understand regulations but

this is amazing. to your point, we want to keep ahead of the curve for the good guys. >> i love this. the fact is, right now there is a drone race happening. you may not be able to walk outside and see drones in the sky but around the world these countries are competing. we are losing. she's right. we've had this massive adoption but what you don't realize is 3.5 million drones sold in the u.s. alone. 90% were sold by chinese manufacturers. we are dealing with a situation where we are losing this race. i'd like to see this new initiative. they are the ones driving less. we need our own companies, our private sector to help out and that's what this initiative does. it brings government working with private sector technology to innovate. >> it's an ideal situation.

thank you. now there's this. if you received a rollcall, you might be able to get a call for 1200 bucks. >> have you done one of those calls. >> no but i kinda wish i did now. >> if you are on the no call list and you get a call from them, they will be deemed to have violated an agreement with the federal trade commission which has triggered the penalty at $1200. call. that's not saying the caller lost something worth $1200, they are being punished $1200. >> who gets the 1200. >> the recipient does directly from dish because they violated their agreement not call people on the do not call list. >> this is not a generic do not call list, this is you've already asked them in the past don't call me. >> and this is not a lawsuit for compensation. it's a lawsuit for punishment

as a deterrent to prevent them from doing it. the do not call list has almost become a joke. even though the person in whose chair you are sitting hates class-action, this is really a way to bring about a heavy-duty level of imposition. >> we should let the audience know that there is a website out there. just google it. i've got another one. they are signing a bill to allow thousands of people to go to committing college for free. >> meaning nobody's paying for? who's paying the overhead of the salaries. >> the students are paying for it. >> under the mailing constitution, just like our home state in new jersey, the government is charged with providing a basic, thorough and efficient education. if they can't do that in the gradeschool, k-12 they're now doing it through community

colleges. it's lawful under the line marilyn just like it would be coming to new jersey. the question is, if you define theft has taking without consent and if you don't and sent to your tax dollars going down this rabbit hole, isn't this another form of government theft? >> but we can feel good about this because were helping someone. [laughter] >> we are making ourselves feel like we are hoping someone. >> what about back in the day when new york city had the free college and a lot of brilliant people graduated. >> the federal government, under the constitution would not be able to do that but the city can and the state can. in that era, a lot of brilliant people who could not have afforded to go to college. i don't think these are degree granting institutions. some can go to community

college in advance to a four-year institution and some don't go much further. is taxation theft. >> yes. [laughter] this after feds approved on medicaid, these requirements were not allowed under the obama administration. i will get big banks. there around 3%. they were big yesterday. it's sort of a de facto safe haven. the parent of applebee's and ihop is on the hunt to buy a new fast casual chain by the end of the year. also, listen to this, california's democrats are pushing jerry brown for an additional $1 billion in funding. >> was he getting it fun. >> to fund right healthcare for a hundred thousand undocumented immigrants.

we will obviously get deep into that next. also more in california, the city of santa clara is becoming the first city in l.a. county to formally oppose california century state laws. that report continues to spread. nancy pelosi is back at it bashing the president's tax cuts yet again. she says she has big plans to roll them all back. trump says bring it on. more bunny after this. more "varney and company" after this. ♪ ♪ ♪ ♪

and nicole with your foxbusiness brief. as president trump announces that the united states will pull out of the randel, what happens to boeing? boeing is higher by half of 1% and reports are that boeing will lose out on $20 billion in deals because of iran sanctions. however, we are seeing a note from bernstein saying that in fact, it's a minimal amount and represents just about 2% of the company's orders and boeing saying that it will work with the united states government on the next transaction. they have lined up their exports for other customers. the jetliners were once intended for a rant. the big picture is it will

have minimal impact according to some of the analysts overall. boeing is up more than two dollars today.

>> we are breaking news out of the trump cabinet meeting happening right now. he says he appreciates north korea for releasing the three detainees. and he spoke about them as well and said china was helpful with north korea.

>> we are following the confirmation hearings, the democrats continue to press for waterboarding which took place on her watch after 911. here is her response. >> after 911, i didn't look to go sit on the swift desperate i stepped up and not on the sideline. i was on the front lines in the cold war and i was on the front line in the fight against al qaeda. and very proud of the fact that we captured the perpetrator of 911. i think we did extraordinary work. >> we will continue to follow-up this hearing and bring you more highlights as they come through. our next guest says the new tax law is moving to strong growth and low tax states like the ones on your screen. he says they are pulling away from the high-tech states. joining us now is check with the texas public policy foundation. chuck, explain how this is working out. >> it's a great question. in late december, when president trump sign the tax

reform and tax cut, one of the big provisions of it was the limitation at state and local tax deductions. this essentially acted as a tax law change in all 50 states simultaneously because instead of an unlimited deduction, that essentially subsidize the high-tech states like california and new york and new jersey, it cap said to no more than $10000. family. while most americans get a pretty decent tax cut because of president trump tax reform and tax cuts, some wealthy american americans, some entrepreneurs and small business owners and corporate executives may see their taxes go up. >> we have been reading a lot about this mass exodus that had already begun, but now to your point, probably will move on even quicker. the california's in the new

york city jerseys, that will honestly benefit small states as well. small low tax states. >> it will. what we are seeing right now, the trends continue. again, this is very early, we only have three months of state-level job data but it appears that the job growth in the local tax states like texas and florida is now double the rate of the job growth in california and new york. if you extend that out over couple years to the 2020 senses, it may need an additional six congressional seat leaving states like california, new york, new jersey and illinois and going to place like texas and florida. >> and get another one. nancy pelosi is saying that tax increases will be coming back to democrats in november. >> i do think we should revisit the tax legislation in the way that we always have in a bipartisan, transparent way. the result is unifying for the

country. >> chuck, your reaction? >> kind of going to the same old same old, you see this at the state level to where state level tax code writers, on the left that liberals in places like california and new york are so desperate and insane that they actually want to make state taxes considered to be a charitable deduction so that wealthy taxpayers can continue to deduct them off their federal income taxes. of course this won't fly, but it didn't stop them from proposing it. >> another one, chuck you are a former california state of family member so here we are healthy democrats pushing for an additional $1 billion in state funding to pay for healthcare for 100,000 undocumented immigrants. thoughts? >> this is just the beginning. they have a tax proposal after tax proposal. for six years i was on the chief tax-writing committee in the state assembly. i was the vice chair for four years.

you wouldn't believe the volume of tax increase proposals i had to vote no on. now it gets only accelerated. whether they pass or not, this sends a signal to the job creators in the gol golden state that you are not welcome in california and maybe, if you move to a place like texas, not only will you be able to keep a little more of your own money but you can create more jobs. >> maybe that's resonating because santa clarita just became the first city in l.a. county to formally oppose that state sanctuary state law. this revolt is spreading in that state against the idea of sanctuary and all the money it pays to provide sanctuary. >> yes, and what california is doing is engaging in a form of nullification that unfortunately our nation has a sad history with. but, federal immigration law is up to the federal government and states are not

allowed to freelance and oppose the federal government in the realm of immigration. clearly california will lose. clearly what they're doing is virtue signaling to their left-wing base and i don't think they will be successful at all. >> thank you very much but we really appreciate it. >> now, an end to the opioid epidemic but everyone is trying their best. walmart also announced they will start to restrict initial prescriptions to a seven-day supply. doctor mark siegel says it's not the place for pharmacies to make a decision like that. that's next. so, i have this recurring dream. i'm 85 years old in a job where i have to wear a giant hot dog suit. what? where's that coming from? i don't know. i started my 401k early, i diversified... i'm not a big spender. sounds like you're doing a lot. but i still feel like i'm not gonna have enough for retirement.

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>> we've got more headlines from president trump's cabinet meeting. the iranian sanctions will go into effect very shortly. he said it ran will negotiate or something will happen. he also said san diego has asked the administration to go forward with the section of a wall along the border. the summit for north korea will be announced within three

days. we are waiting for his comments to come out of the white house but when it does, we will bring it to you right then. walmart announced it will start. [inaudible] it will also start requiring e prescriptions for opioids for this begins in 2020. doctor mark siegel joined us now. you don't like this decision? >> charles, you know i'm all about restricting opioids and i agree with the cdc. you know that i agree the state of maine is saying that but i don't believe it's the role of pharmacy spread what happened a free market what if i decided should be more than seven days. someone has multiple fractures or extreme dental surgery done. sometimes it's going to be done on a patient by patient basis. i don't want walmart saying to me know, walmart is not the physician. we got into the trouble because doctors were overprescribing, yes but the solution is not have pharmacies dictate what i do.

new york state has a website where i have to justify my prescriptions. >> what's the maximum. >> usually of 30 days, not seven days. i can give longer than 30 days under certain circumstances, but you viewers out there with chronic pain that believe they should be getting opioids. a lot of people are getting opioids that could have been tried on something else that was less addictive, less problematic. the science says if you have opioids for too long, your risk of addiction goes up. i think walmart has a heart in the right place. >> we have breaking news. >> these are just working arrangements. [inaudible] everyone think so, but i would never say. i want to get a deal finish. the prize i want is victory for the world, not for even

just here. i want victory for the world. that's what we are talking about. that's the only price i want. [inaudible] >> everything can be scuttled. a lot of things can happen. a lot of good things can happen, a lot of bad things can happen. i believe we have both sides who want to negotiate a deal and it will be a very successful deal. we have a good shot at making it successful, but lots of things can happen. of course you will be the first to know about it. i think we have a really good chance to make a great deal for the world. thank you so much. [inaudible] >> what will you do if iran will start up their nuclear program. >> i would advise iran not to start their nuclear program. i would invite them very strongly. if they do, there will be very severe consequences.

okay. thank you very much. >> alright folks, that was moments ago. president trump and his cabinet meeting making comments, mostly centered around the iranian deal. this would be a victory for the world. obviously is hopeful. by the same token saying everything can be scuttled, talking about the pros and cons and what could possibly happen. he thanks we have a good shot at a deal. with respect to it ran restarting or expedient in their nuclear program, his advice to them is to not restart their program. >> he kicked off the cabinet meeting thinking kim jong-un for the release of the three

hostages. the important question is, is that a precondition that the trump administration sits down with north korea, told them to release the hostages and then we will charles: won't be in the dmz. speculating. where will this be held. what does it matter. ashley: somewhere where kim jong-un's plane can reach. his plane is old. mongolia is thrown out there. he doesn't want to go to europe. interesting where they decide on. not the dmz as every one said the past several week. charles: president hunt will meet three hostages 2:00 a.m. liz: eastern time. neil: tomorrow we see the video. i have very special coverage on making "money".

china's economic terms of economic dominance. they are a main foe on many levels. you will want to watch that show. real quick look at the big board before we go. the dow still hanging in there. we're up 15 points. all the indices are higher. neil, i gave you a small rally. take it away. neil: wouldn't the be great if they held the meeting in the catskills or poconos? no way we would see that coming. charles: have a time-share. neil: come on over here. you can stay here. thanks, buddy. we'll watch closely. we might get a hint as these fine folks are saying next couple days. i'm neil cavuto. you continue to watch business coverage on the fox business network. this is the place you go to put it all together. president is holding a cabinet meeting. there might be a opportunity to hold a pool spray to go back in there. the president is optimistic about upcoming north korea talks here and those three hostages on their way back from asia with secretary of state pompeo