the markets. i would like to see what happens with wal-mart, can they beat amazon? dagen: cristina, mike and lawrence, right now ashley webster is in for stuart varney. can you ask larry kudlow to unblock me on twitter? i'm not kidding, please. ashley: first peter navarro, it's all about dagen mcdowell being blocked. yes, stuart is sick today. we hope he gets better very soon. we always have a big show for you. larry cud low as we just said chairman of the president's council of economic advisers, he will be joining us in about ten minutes, lots of questions for him, of course. we will talk about the economy and the market, plus, he will be in the room for the high-level trade talks with china today. what does he hope will happen? reports of a rift during those talks, kudlow and peter navarro on one side, mnuchin on the

other. we will get the kudlow report on those -- those assertions that there's a rift. i have a feeling he's going say no, nothing to see. big day for money oil. oil hitting 4-year high. interest rates keeping a close eye on those. wal-mart, the corporate story of the day, online sales up 33% compared to a year ago, that's pretty good, they r of course, in direct competition with amazon. huge line-up for you today. look at these names, newt gringrich, kristin who met with president trump yesterday and lou, running against senator bob casey in pennsylvania and has the president's full support. buckle up, everyone, the three hour varney & company is about to begin. ♪ ♪ ashley: all right, the market

is opening in just under 30 minutes from now. quick look at futures for you n the red but modestly so. dow down 20 points and nasdaq down half percent thanks to cisco. jc penny sales falling short. stock is down big, it's a 2-dollar stock, it's down 38 cents. down 12 and a half percent. lukewarm forecast from cisco, service's revenue not doing very well, the stock down 4%. higher sales at wal-mart especially online. joining us to talk about market watcher john layfield, john, we talked about this all of the time, wal-mart in battle with amazon, e-commerce, this is an encouraging report? >> 23% sales, 33% this quarterment down 50%, well, they were a year ago, same quarter, so they are still growing, what they are doing finally they are investing.

margins have compressed somewhat but the growth that they will see is because they are investing. ashley: press earnings report shows that perhaps they weren't doing as well online as people had hoped. what's changed? >> nothing has changed. they had a bad quarter. that's all it was. staying in the course. they are doing great things, this battle is like jobs and gates, kill retail but it's going to be great for the consumer. acquisition of flip card in india is huge. they are battling literally all over the world. ashley: they are getting out of the uk, over in the uk, they are getting out of operations in brazil and as you say focusing on india which has been massive market, full of potential but always had potential, is it actually going to deliver? >> i think it will deliver. you have seen the growth of the internet in india, it's not because people are moving to middle classes, so you see the growth and people are

extrapolating that. internet has gotten cheaper. india does have a lot of potential. ashley: over a billion people. >> it's had potential for a long time. what they are doing in china, wal-mart, is actually better. same-day grocery deliveries, in one hour. they built this market in asia that they are bringing back to the states. ashley: would you buy it at 87 bucks? >> i own it right now, i'm happy with it and i would be a buyer. ashley: thank you. excellent and interest rates, both going up, what's that going to do to the market, 10-year treasury, looking at oil firmly into 70's, 72, brent crude about 80 bucks, what impact does that have, let's start with oil? >> it has to have some impact in the market. we are not seeing consumer spending come back. 70% of gdp. we are not seeing that. we thought we would with the tax cuts. oil prices are certainly going to hurt. liz: the market watchers are

saying 85 is when you start to worry. it's an economic growth story if it curtails consumer spending. i don't think they will wipe out tax benefits but consumer spending did hit 5-year low in first quarter. keep an eye on this. ashley: interest rates very quickly, 3.1 on the 10-year, where is the tipping point, people say as long as we creep up and don't stiek and get to 3 and a half we will be all right, can the market handle that? >> absolutely, it's still historic lows. what we are seeing is defacto bond trade, people are buying dividend stocks instead of bonds, interest rates have been so low. there's no competition. the trade will be taken off but interest rates are low. the worst thing is for our country once interest rate is 4 to 5%. we will have hard time with debt. ashley: i thought 3% was the psychological level. >> i think 4%, we will start to see issues. liz: that was a norm before

2008. ashley: ford is restarting production on the f-150, best-selling vehicle in america when you're not producing it that's got to hurt the bottom line. they are getting back of track. liz: they are getting ahead of schedule. america's love paining-ups, it's going full blast, ashley, big story in wall street journal, small businesses, economic growth story, tax cuts, they want their pickup trucks and look at this, gm is out with a medium-duty chevy silverado. you will see that with dodge rams. the pickup wars will really take off right now. ford seeing that, they are saying it will be hurt. not annual eps. now this is an economic growth story. small businesses are taking off. they want their pickup trucks. ashley: and bottom line in suv's as well outside of trucks because you love to be high off the ground.

liz: like stuart. ashley: 1989 van. liz: getting 50-cent coffee. ashley: we love you, stu, trump lawyer, giuliani not menacing words about what should be done. take a listen. >> they can't indict him constitutional. >> which mueller agreed today. >> i don't think they agreed to press question, the same reason they can't indict him they can't issue subpoena to him. ashley: all right, all rise, judge andrew napolitano. judge, you say that mr. giuliani may not technically be right. >> he and i have been friends for 20 years as i have been with some of the other folks around him. it's clear that the government can indict the president. there are two justice department advisory memoranda.

what's their, advisory, they are not mandatory. we know their advisory because ken star's people prepared indictment of bill clinton charging him with perjury, lying under oath in the civil deposition about having sex. remember all of that? they waved that indictment in front of him instead of asking the grand jury to endorse it which would have made it indictment of the president, the president pleaded guilty to perjury before the indict. they used another instrument called information and information says the same thing as indictment but the defendant agrees to it and doesn't go to grand jury. it's clear that guidelines permit the president to be charged with a federal crime and to address it. ashley: so should the trump legal team take that assurance from mr. mueller and the investigators with a grain of salt? >> if you look carefully at the very, very astute q&a between our very intelligent colleague

laura ingraham and the president's lawyer rudy giuliani, you will see that bob mueller never actually said that. some people in the room where bob mueller was not there questioned whether or not the president can actually be indicted. we know from a supreme court from two supreme court opinions he can be subpoenaed. he may show up at the grand jury and say, unlike bill clinton, i'm not going to answer, that's another issue. but he can certainly be subpoenaed and compelled to come. ashley: have you gone through all of 2500 pages, the meeting, infamous meeting, the juicy part: what out of that did you get, anything in there of real interest? >> it is clear that the trump campaign wanted to meet with the russians because they thought they were going to get some dirt about hillary. it is not clear that they knew that the russian lawyer is a russian intelligence asset. i don't know that they knew that

now. we knew back then, we know it now. if there was a willingness to receive information from the russians, the question is, what mueller is looking for, was there an agreement, an agreement is a conspiracy, was there an agreement to receive anything from the russians, i don't know that, you can't tell that from the 2500 pages. ashley: from all accounts you can see that the trump team basically said, wait a minute, this is all about adoptions and sanctions on russia, where is the dirt? >> correct. ashley: there was no inference of any deal. >> the dirt did not come from her. in fact, she according to what donald trump, jr. told senate judiciary committee launched into about adoptions. we are here to talk about what you have on hillary clinton. ashley: critics say that the 2500 pages were released in an effort by republicans to get this thing wrapped up showing that there's nothing there, that going to be the case, i don't

feel like it is? >> no, the senate judiciary committee does not know what bob mueller has. when people say there's no evidence of collusion, there's not a legal term collusion, the crime is conspiracy. bob mueller is not required to show his cards until the full 10,000 piece-jigsaw puzzle has been filled. ashley: can the president ask him to? >> he doesn't ethically have to answer. he has to finish investigation before he says what he has. he completed on general flynn, completed on george papadopoulos , paul manafort and not on donald trump. ashley: i wonder if he will get it finished before first term. >> we will see. ashley: great stuff. thank you very much. more trouble, by the way, for tesla, the fed is investigating another crash, this one in utah, they say autopilot was turned on when tesla slammed into a fire

truck. san francisco, could be getting ready to ban all flavored tobacco and e-cigarette products, even menthyl cigarettes. larry cud low will be in the room with negotiations with china today and reports of rift between him and peter navarro and secretary steve mnuchin. don't go anywhere, steve varney hi, i'm bob harper,

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ashley: guess what, facebook chief mark zuckerberg meeting with eu regulators, he will be going to brussels we think on the 22nd to eu parliament, the next day paris to meet with mr. macron. liz: three days ahead of the may 25th deadline when the new privacy rules take effect in the eu. wow, they are -- it's a big deal for the tech sector. we will talk about that in a second. you know, maybe zuckerberg got ready for eu parliament.

we were joking at the break, more people were talking to zuckerberg in congress than at the watergate hearing. this is a big deal for u.s. tech companies, what they are going to say in eu, you to tell within 72 hours if your data has been breached each and every user. there's no u.s. law that requires that now. they also have to tell you how your data is being used, how they are selling their data, you can imagine more pop-ups on website screens. this is going to put the onus now on tech sector and companies like facebook to start disclosing way more to users than they ever had before. ashley: if you do not comply with the rules go in effect midnight of 24th which is next week, you will be fined 4% of your annual revenue. liz: for facebook 1.6 billion. we are talking billions of dollars. the eu is happy with slapping

fines. i'm telling you, we have to watch for pressure on the tech sector here. ashley: we do. what's also interesting not only will zuckerberg meet with french president next week, the day after he goes to brussels but also meet with ceo's of intel, microsoft, there's one other in there. liz: ibm. ashley: thank you and i think he will talk to them about privacy issues but the real underlying reason is he's trying to create jobs for france. liz: more macron. it does not have a privacy scandal. they had 200 apps they kicked off site for basically harvesting data. the other thing too, the fact that facebook watches users after they leave the site and potentially nonusers, they stalk -- cyber stalk, facebook watches what people do, on the internet, you can bet the eu will ask questions about that, expect leaks to the press after that hearing. ashley: i tell you is upset, the uk, mr. zuckerberg is being invite today by parliament to

meet in person and he hasn't, he went to congress and now the eu. all right. emac, thank you very much. okay. great talks with china resume in washington today but charlie gasparino reporting that when officials were in beijing mnuchin, peter navarro and kudlow put in holding room so he could conduct talks himself one one-on-one. this reportedly happening after alleged verbal confrontation between navarro and mnuchin. interesting. joining us to give us, larry, is that pretty accurate how i described what happened? >> i don't know exactly who a holding room is. [laughter] ashley: a room outside the main room. [laughter] >> all i can say i was in a lot of rooms, very lovely rooms, the chinese premises were superb. we have a very strong negotiating team. that doesn't mean there aren't

occasional differences in tactics and so forth. i get all of that. i will say this u there's a lot of misreported gossipy stuff that never went on. the most important is we are back this week, today and tomorrow, vice premier is going to be leading the chinese delegation, he's the top dog, he's going to be bringing the varsity a team with him, the ones we met a few weeks ago in beijing, we also expect that they may well have a proposal for us which would extend the conversation and permit additional negotiations. in other words, i'm kind of positive on this story, we will be glad to have this discussion. it's absolutely central to the president's trade and economic policy. ashley: but you know, larry, the reports do give the question, is the chinese delegation seeing a unified response from the united states because reports of shouting and cursing between mr. navarro and mr. mnuchin, listen, you were in the

so-called waiting room, was peter navarro pacing up and down really steamed? >> yeah. [laughter] >> i was in a lot of meetings over there. so if i got an hour break to have a cup of coffee and rest, you don't get much sleep, i was perfectly okay with that. i didn't hear any shouting or any cursing, at least not in english and i don't speak chinese all that well. so i can just say this is a very overrated story and it ain't much of a story, just gossip, for heaven's sake. look, we have an opportunity here. let me try to make the point from the president's policy standpoint. we have an opportunity here to bring some significant changes and sign new american trade policies, changes that by the way, will make for fairer and more legal trading practices, we are asking the chinese to change approach in number of areas not least the technology problems

but open markets and lower trade and nontrade barriers, allow additional american exports which would lead to a lower trade deficit, this would be great for american growth. i think it'll be great for china and world growth. the president is the first guy in several decades, you know this, not only to raise the issue with china and stick to it with backbone. that's what these negotiations are all about. we are representing the president's views. it's going to take a while to evolve this stuff but i think it's terribly important and i think the rest of the world is very interested in these negotiations because they will be affected, the rest of asia, latin america and europe. so this is big-time stuff and let's not waste it on -- on frankly phoney gossip stories. ashley: absolutely agree. let's move on. listen, i wanted to ask you about the reversal on the ban on the telecom giant, zte, is that

an example of the president saying, i will do trading with you, if i give you this, you give us that, is that kind of what's behind this? >> no, i wouldn't put it in that way. look, president trump, president xi have a decent relationship, they are talk all of the time and this is a big issue for us, by the way, as wilbur ross said in beijing a couple of weeks ago and continues, this is not a trading issue. this is enforcement issue. this telephone equipment maker violated a number of american statutes and needs to be dealt with accordingly, actually three times, three strikes. i guess the president xi asked us would we take another look at the remedies, the remedies. i don't hear yet discussions of waving it nor i think most people think that the punishment should be waved but they are going to look at remedies.

some people are feeling too harsh. mr. ross said merely that he's been asked by the president to look at it again, so i'm going to keep the expectations very low there. you break american law, you're in trouble. and i don't care what country you're from. so president xi are talking about this, it's a good face talk, those two get along very well. we will see what happens with the telephone company. ashley: very quickly, larry, while we have you, i want to get to the economy, we have a few economic winds, oil, 10-year yield at 3.1%, also news of the birthrate has fall on the lowest level in close to 30 years, are you concerned about any of this? >> look, the short answer is no. i mean, a 3.0 on 10-year is a very long-term interest rate and the fact that it has picked up a bit is a sign that the american economy is growing more rapidly and that's the key point i want

to make. you take a look at the recent numbers, strong industrial production, strong retail sales, before that, good solid strong employment, capital spending, right, business equipment spending which was really the driver of the economy missing in so many recent years, it's now picking up, undoubtedly at least in my view because of the new lower tax rate and spending incentives, the trump's gop tax package produced. this is great, this is terrific. i'm looking at atlanta fed, the gdp better than 4% growth in the second quarter. we have been at 3% trajectory, this is all very, very good stuff and i'm quite optimistic, profits are soaring and believe it or not there's optimism in our economy. let's not forget that key point. much more important than holding rooms in beijing. ashley: i couldn't agree more. >> optimism in our economy,

that's my pitch this morning and for heaven's sake it's actually once in a while based on facts. ashley: there you go. heard loud and clear, larry kudlow, great stuff, thank you very much for taking the time. appreciate it. liz: what he didn't address, that was really interesting was what you asked about the u.s. birthrates hitting lowest since 1987, implications for medicare and social security. ashley: who is going to pay in? >> if you don't have the baby boom to deal with baby boomers retiring, you have to have economic growth, i guess. ashley: take the break now because guess what, wall street opens up for business in 4 and a half minutes from now, not very good at the math. 4 and a half minutes from now. we will be right back. [laughter]

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tell your doctor about all planned medical or dental procedures and any kidney or liver problems. learn all you can to help protect yourself from a stroke. talk to your doctor about xarelto®. ashley: opening bell ringing in just about 35 seconds from now. maybe moderately low at the opening, certainly on the nasdaq as we got disappointing revenue numbers from cisco on the service's business, we are seeing the 10-year on the treasury bond up to 3 points, 3.102. it's up there. not going to crazy about it. of course, the cost of oil is going up. west texas up at $72 a barrel.

crude above 80 bucks, what does that mean, things get more expensive in those in transportation business, for one. the bells are ringing, you can see wall street. you can see the nasdaq, everybody is happy and we are about to -- here we go. stocks on the left, we can tell you that as predicted modestly lower. dow 24,746, out of the gate. we had big numbers from wal-mart today which were actually pretty good and we will get to that in a moment. as you can see, the dow opening slightly low. coca-cola and wal-mart leading the way on the downside as i said cisco missing on service's revenue and that's the drag right now on the dow. let's take a look at the s&p if we can. also down just slightly, down a tenth of a percent, 21.19. leth check the nasdaq, the drop there is being more pronounced, not that much. down a quarter a percent thanks to cisco, 23.76.

the russell 2000 the small caps in record territory just down ahead, .74 on the russell. let's take a look at the 10-year yield, we are talking about, my goodness, we have gone through 3% level, 3.10% and take a look at oil. above 72 bucks, thereabout. almost 72, knocking on the door. 71.85 for crude. wal-mart, yes, pretty good numbers, we talked about it with john layfield earlier, wal-mart is up a buck 25 at 87.38, joining us liz mcdonald, susan lee, john layfield, we can look from face to face which i love. let's start with wal-mart. higher sales especially in e-commerce, as we said earlier, john, they are holding their own, let's put it that way, would you agree? >> i would agree. the same-stores is what the gdp is, what you can expect from a

size of that sale. wal-mart has distribution centers all around north america, same-day delivery, huge advantage over amazon right now. ashley: in the previous earnings report they disappointed a bit. john said it was a bad earnings report. >> during the holidays, okay. >> 23% growth. >> they projected 40%. still below that at this point even with the report card, you're right, they are trying to make end roads, they are trying to copy to amazon model. for 35-dollar orders you can get 3-day delivery as well. more importantly they bought in india, that was a smart purchase and fast-growing economy and market that is still adopting. ashley: they were the big bad bully in the neighborhood. >> now under dogs. imagine wal-mart the under dogs.

they were the ones killing retail, people were coming out against wal-mart. ashley: i remember. liz: i think target has interesting strategy. they are going toe to toe in cities where amazon does not do one-day delivery. >> 7800 retail closed, more recession than 6800. more than we've had in some years, that's a record that we have seen in retail store closed. ashley: they call it prescribed burn. i hate to put it that way. you get healthier trees growing afterwards, right? >> wal-mart is not the only retail killer and you have amazon, great for consumer, still jobs created. liz: control burn at the white house? just kidding. ashley: take a look at oil as i said. right around 72 bucks a barrel. the national average, 71.81 on crude, the national average for gas 2.90.

heading towards 3 bucks. guess the question, john, will oil and gas prices at some point if it's not already be a bit of a drag? >> at some point they have to be. gdp, 70% of consumer spending, some drag with prices going so high. the problem right now as you talked on the show the bottleneck in west texas, when you needed more supply you shed oil that would come in form aifcións out there in west texas, that's not happening right now because of bottleneck, that will be corrected in about a year. >> can i note with the oil prices, an interesting theory, it is about your timeline, how far out will higher oil prices finally affect consumer spending, interesting note that they say basically u.s. oil import at 40-year low. we are producing a lot thanks to shell production boom. how much of $72 really hurting the consumer when they are not paying the prices. ashley: that's true, you're right.

liz: this is after the fire broke out in the eaton michigan supplier. this comes in the nick of time. and also, small businesses really wanting their pickup trucks, americans love pickup trucks, it's moving full speed ahead, no punt intended. the medium-size truck war will take off as well. chevy is doing it, dodge is doing it, medium-size dodge ram, chevy silverado. ford will probably get into this space. ashley: i would love to see stuart in an f-150. ashley: the government by the way, opening a third tesla crash croab in utah this time. what's going on? liz: tesla is coming out swinging, elon musk is not happy about the suit.

28-year-old crashed her tesla car into the back of a fire truck, she was on the phone and the point tesla is trying to say, autopilot does not fully take control of the car, you the driver have to maintain control. they have said that repeatedly. so this is going to come up again and again as our cars take off. ashley: there's a sense, you know, you can have a nap on the backseat while the car takes you to grandma's house. full sense of security. >> elon musk talked about self-auto pilot basically and he said it's irresponsible of any journalist with integrity covering this story to point out and basically put on front page news that autonomy is less safe than traditional cars, that's irresponsible. >> you don't want to be first in technology, it's pioneers and settlers get land. sometimes you want to be second or third. musk is taking all of the negative. whoever comes behind him will have the smooth road ahead. the second flight, a guy was

killed, they didn't kill the airplane industry, this isn't going to kill the automatic -- ashley: let's move on, quick check on the big board for you. we have been open 7 minutes. lukewarm forecast from cisco, down now 4%, revenue falling short, that's -- apparently the market doesn't care. jc penny, my, oh my, sales fell there. that's 11 and a half percent for a 2-dollar stock. children's place earnings hurt by unseasonably cold weather, down 10 bucks. starbucks, focusing on growing in china, it says it will nearly double the store count there by the year 2022. starbucks just slightly higher. the futures of cbs may be decided next week, hopefully. what's going on. liz: before a judge right now and so this is something a

generational long fight over who will control cbs. big media fight do redstones control along with the board, what the board has tried to do is loot ownership stakes in cbs that is owned by majority by the redstone and her family. they own nearly 90% to have company, i think, they are trying to get -- move was to try to get each shareholder a voting stake in the company. that was the big push. we will see if this ever ends. long corporate soap opera. ashley: mark zuckerberg will face with eu regulators. liz: i think this is the story that's been underplayed in the media. the new privacy rules in the eu coming affect in may 25th, zuckerberg goes to them ahead of

time. here is what the eu rules say, you have to tell people if you have been breached, tell your users they have been breached within 72 hours, also tell your users how their data is being sold. so there's more pop-up screen ifs you can imagine. this puts the onus on the tech companies. that's a big deal. 1.6 billion fines for facebook each instance. ashley: susan lee, we will be speaking with canadian prime minister justin trudeau. is it in french? >> my french is not good. ashley: congratulations. >> we will talk about nafta, obviously, today is the unofficial deadline to get nafta, some sort of nafta deal through if we want to push it in this session 2018 session of congress especially with fasttrack authority, i'm not sure this will take place at this point. we will talk about what's

happening geo politically, north korea security issues, jerusalem as well with the new embassy and we will talk, of course, about what's happening domestically, immigration, lots to talk about. ashley: that's a big issue. when the issue was big here in the united states and still is, justin trudeau said we will take anyone you want. >> they have their own immigration issues to deal with and in some ways, they have -- maybe the u.s. isn't helping them at the border. ashley: they want a wall? [laughter] >> that will be a very expensive one. ashley: are they going to pay for it? look forward to the interview. thank you very much. john as always, great stuff. quick check on the big board again for you as we are 10 minutes. as you can see, modest losses, down 81, 24,687. north korea is threatening to cancel summit, the move shows

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ashley: all right, another check at the big board for you. down about 87 points now. slowly drifting lower and lower. 24,682 on the down, down a third of a percent. moderate losses. youtube will launch a new streaming service, what's going on nicole? nicole: this is a crowded field, indeed. and it's going to replace google play music. in fact, they have a library of 40 million songs, youtube music, do you know that over a billion people, music fans come to youtube each month so they are going to have a streaming service and there's going to be two kinds, with ads or ad free,

with ads, well, that's going to be free for you, but if you would like ad free you're already a subscriber, it's 9.99 if you're new, 11.99, bring on the music and that will take on spotify, apple and amazon, back to you. ashley: very interesting nicole, thank you very much. san francisco, by the way, wants to pull flavored tobacco products off of the shelfs, what's going on? liz: they are basically saying, the experts say it hooks and entices young people to get addicted to cigarettes. that are saying, essentially no more gummy bear e-cigs, nacho cheese flavored. did you know that? and candy flavored. this is attractive the likes of also former mayor michael bloomberg. he has donated to the push. the opponents are saying, you know what, you will driver all of this under ground just like the marijuana industry survived. ashley: probably true.

thank you very much. let's get back to north korea. kellyanne conway now saying that the june summit between president trump may happen at a later date. joining us now adam kissinger, republican from illinois. thanks for joining us. >> you bet. ashley: the administration sounding optimistic but you voiced some doubts, this is the game that north korea plays, what are your thoughts? >> i'm not overly concerned yet. i'm totally expected frankly, kim jong un has this habit of, you know, being a smiley mcgee and turning around and being tough and smiling and tough, this is part of the give and take where he has to show population that he still has got it. i think avid fox business watcher, i think if he's watching, the words to say, look, this is your moment. if you frankly pull out of this, there's no higher negotiations, the higher negotiations that can ever exist in north korea, the only possibility after this is military action, so while i am

concerned i also think, you know, if china and kim jong un are smart, they will stick with the summit. ashley: what is the likelihood that north korea will denuclearize, take those weapons away and if that's not the case, then what do we achieve? >> i think it has to be the case and i think denuclearization for basically infinity, forever, you know, that's going to come with carrots. fox news correspondent north carolina, the carrots will be they'll be economic opportunities. the north korea carrot will be they'll be protection either by china or guaranty by us to not invade like we had with cuba, but a nuclear north korea i think is unacceptable to this president who has made it clear that this was like kind of a churchill moment where everybody is eager to avoid military conflict, i am too but you understand that the decisions we make today will have an impact for generations to come and frankly, i don't have kids yet, hopefully do i some day but grandkids looking back, why does everybody have nukes now because you guys didn't do what you needed to do.

ashley: hopefully not. i want to mover to another issue, opioid crisis, you're cosponsoring a bill to help medicaid do a better job at fighting the crisis. where is the teeth in the bill? >> the opioid addiction plan and basically what it does is gets the government to find out where there's barriers to development of alternative pain scenarios. so right now, the most effective pain scenario frankly if you have back surgery is using opioid, that comes with huge problems, people can become addicted and then ultimately they'll turn to heroin or anything like that and so there's got to be alternative ways to treat pain, are there barriers in the government that are preventing that research. we will pass 30 bills today out of committee, you know, an bills are good, fund asking good, we increased funding by $6 billion in omnibus, ultimately is communities that will have to wrangle this problem, which is your kids are frankly doing heroin and many are overdoing and your adults an people from all populations, we need to great a grip on it. ashley: how much responsibility

do doctors play on this, one of the criticisms instead of giving 7-day course of opioids, they will give a 30-day course and that's a very dangerous road to go down? >> so that's been changed now to where they are giving smaller courses on it but i think in the past it has been a problem and i don't blame doctors for it because under the affordable care act these guys are judged basically on patient comfortability and when you come out of the hospital if you show any sense of pain, of course, you will be eager to say, i don't want you to have pain at all. they write the big prescriptions. 90% of americans can take them and be fine, it's the 10% that basically take them when they're not supposed to and now addicted. ashley: big question is how soon can we come up with an alternative to opioids? >> i hope sooner than later. there's research, i know, but this needs to happen. we are seeing positive signs so far, the problem is -- i was at the gym just a month ago and had a guy my age that was overdoing on heroin noon on a sunday. this was a problem that is

penetrating all areas of society. ashley: yeah, certainly is. congressman, thank you very much so much for taking the time to talk with us, we appreciate it. >> any time, take care. ashley: let's take a look at the market for you, dow 30 stocks, more red than green, more selling than buying, cisco after disappointing revenue on its service business that was reported in the earnings and because of that it's dragging the dow down and the nasdaq which is a tech heavy index. here is a question for you, when it comes to health coverage, why would you want to really hide -- high deductible. we will talk about that. the answer is next is getting help from some unexpected friends. these zebra and antelope. they're wearing iot sensors, connected to the ibm cloud. when poachers enter the area, the animals run for it.

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ashley: let's have a quick check of the big board, we are down 63 points now in the dow, dawn a quarter of a percent. modest loss. let's focus now on health care and talk about those rising deductibles and i mean deductibles, our next guest wrote about it in forbes, joining us now is health care policy watcher john goodman. john, welcome to you, some of the deductibles are in thousands which beg it is question why bother, what's the solution, if i have a 4,000-dollar deductible, i have to spend $4,000 before i get anything

back? >> well, to a lot of people that's not insurance at all. ashley: it's not. >> many people live paycheck to paycheck. ashley: right. >> 4,000 is the average deductible for silver plan in the exchange but there are some employers who e -- especially fast-food workers, they are required to offer to them. deductibility could be $7,000 and double that if they have a family. ashley: that's outrageous. even if they are low, i still believe in this country even if you have to pony up 500 bucks that's a lot for many americans working paycheck to paycheck. it doesn't put thousands to put people in trouble. >> that's right. i'm sometimes called the father of health savings account. ashley: yes. >> savings on the side, let us manage more of our own money. we are much better when we are managing our own money. ashley: put the money aside so

when you do need to go to the doctor, god forbid the hospital, when you the money to use, it sounds good in theory but studies that say americans especially those living paycheck to paycheck don't have any money to take care of any emergency. so why do you think it's possible that they can actually put this money aside for health care in. >> well, they may not. now in the old days we found that if you move to a higher deductible it made economic sense. a 1$00 and move to 900. everybody who is listening today ought to look at choices and compare the additional risks with the amount of savings. but what we have created insurers and employers, their incentives are to avoid sick people, healthy people tend to buy on price which means premium. sick people look at network and deductibilities. the typical insurance company today does not want a sick

person. ashley: republicans came to power, we are going to throw obamacare, they haven't put a system in place? >> republicans have to do two things, decide that all the money in obamacare stays in health care, we can't use it to cut taxes for the rich. they've all come on board for that. number two, they have to show us how the reform plan will lower premiums and give you better access to doctors and they haven't come on board with that yet. ashley: not easy, that's the problem. >> right. ashley: john goodman, thank you so much. appreciate it. thank you. the supreme court legalizing sports vetting, huge story, so how do you regulate it, keep it legit? keep the cheaters out? a lot to consider and we are on it. hour two of varney next.

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i almost said it again. west coast 7:00 a.m. i'm ashley webster in for stuart varney. it has been more than a year since president trump and house republicans celebrated the repeal of obamacare. democrats are using this as a weapon in the midterms, going after specific members of congress like new york congresswoman claudia tenney. she will be responding to that. seems like we every day we bring crazy headlines out of venezuela, companies closing up shop, prison riots, food shortages. by the way there is an election coming up this weekend. we. cryptocurrency capital of the united states? would you believe it would be wyoming? they are trying to encourage blockchain businesses to head west. we'll speak to an investor who already jumped on bandwagon. more fallout about the supreme court decision for legalizing sports betting.

new jersey holding off until they figure out how lawmakers can regulate it. you're watching the second hour of "varney & company." ♪ we just got the latest read on mortgage rates. emac, what's the number. liz: 4.36%. pushing on to the critical 5% level. that hits people's psyche to get off the couch to buy a house. single family inventory at record lows. consumer spending is basically going to be at play here. whether the gas prices, hit consumer spending. whether people can step in to buy homes. ashley: so the best advice? lock in a rate? liz: lock in the rate now. the fed is dumping their mortgage-backed securities. that will put pressure on 10-year yield higher. the mortgage rate is trending flat it is pushing on 5%. 4.61% for the 30 year. it was 7% on average from

19801999. inventory an issue. ashley: all right, emac, thank you. walmart reporting some strong earnings today. by the way online sales up 33% but investors, they're like okay, we'll sell it, make some money. walmart off more than a buck at 84.95. one of the biggest losers on the dow. jcpenney, sales falling short. cutting profit forecast for the year. it is off by 26 cents. down to $2.81. big tech chames of course we check these every day. cisco, service revenue coming in light. that is hitting the stock. dragging down a majority of big tech stocks with it. cisco down 3 1/2% at 43.55. now this, larry kudlow commenting on reported feud that puts himself and peter navarro on one side and treasury secretary steve mnuchin on the other. take a listen. >> i was in a lot of rooms, very

lovely rooms at the chinese premises were superb. we have a very strong negotiating team. that doesn't mean there are not occasional differences in tactics, so forth, i get all that but i will say this, there is a lot of misreported gossipy stuff. ashley: there you go. joining us now to talk about it, brad blakeman, former deputy assistant to president george w. bush. brad, larry kudlow there doing what any administration official would do is say nothing to see here, folks, move along. what is your take on this? >> i think larry's right. i planned many summits over 30 years. i've been to 58 countries, mnuchin is the leader of the delegation. he is the point person for the president. there are bilaterals held with principal to principal with his counterpart. there are expanded bilaterals with other members of the team. not uncommon for other members of the own members of the team while principals are having their meetings or be excluded

from meetings. people are making more of this than it actually is. ashley: reports of shouting, cursing outside of buildings in screening maybe we focus on this too much. if you're going into negotiations with china you would like to think everybody is on the same page. it suggestion maybe there isn't? maybe mr. navarro is more of a nationalist when it comes to trade issues. it doesn't give a good appearance. >> i have a disagree. i think the chinese are certainly not coming from this from a totally homogenous position within their teams either. there are those within the china team that think china needs to change their ways and others think they have to clamp down to not bend to u.s. pressure. i think it is healthy to have a u.s. team that is, that has disagreements, comes to consensus. that is exactly the type of team you need. if you go in united with no disagreement, with no particular opinion other than a group

think, i think it does tremendous damage to the overall negotiation. ashley: well, vigorous debate is mr. trump's forte, that's for sure. >> right. ashley: let's move on, brad. president trump getting criticized calling some illegals, quote, animals at sanctuary city event with various california leaders. listen to this. >> we have people coming into the country, trying to come in, we're stopping a lot of them but we're taking people out of the country. you wouldn't believe how bad these people are. these aren't people. these are animals. ashley: i understand the sentiment but what do you say, brad? >> i think president's right. he calls it as he sees it. ms-13, illegal aliens who come into this country and murder police officers or prey on citizens, they are animals. they have to be locked up and they have to be kicked out of our country. the president is saying exactly the way it is. it is too bad. we have nothing to apologize for keeping our streets and wants our people to be safe. ashley: yeah.

you know, you were with george w. bush. how do you think it would be in a donald trump administration? have you often thought about that comparing your time with mr. bush and what it would be like with mr. trump? i'm sure it would be pretty interesting, would it not? >> there is no doubt about it. this president is extremely different, but that doesn't make him bad. as a matter of fact, i think you can't argue with success. the successes this president has had has been amazing. to his credit he is not a typical politician. he is more transactional than idealogical. that is good thing. ashley: i can't disagree. look at his success so far. brad, thank you very much. appreciate your time. let's look at markets, near the lowers for the day. the dow was off 85 points. the dow down 24 points. s&p, nasdaq, just turning slightly positive. maybe we're heading in the other direction. bring in gary kaltbaum, kaltbaum capital management president. strong online sales of walmart,

but on the other side, interest rates, oil, both heading higher. what impact did that have on the overall market? >> i think eventually if it continues it will have an effect on the market and economy. gas at the pump, regular, was $2.33 a year ago. it is 2.90 today. by most estimates that is about $50 billion out of consumers pocket to pay for that not including as far as businesses. as far as the 10-year yield, it has gone from 2.4 at the beginning of this year to 3.1. that means mortgage rates are heading higher. cost of capital is going up. if it continues, trajectory keeps going this way, most definitely going to provide headwinds as we move forward. ashley: i was reading a report that there has been five main drivers of the markets in 2018. china trade war, deal or no deal. north korea, deal or no deal. mid-east tensions, rise of iran and will the fed get it right. those five things one way or

another would behind the markets. would you agree with that? >> nah. i think the most important thing is interest rates but now oil prices also. interest rates have been defining force behind the market since the fed decided to rig and manipulate them nine or 10 years ago t continues around the globe, especially japan and europe where they're still printing and still have negative rates. that to me is defining. earnings are really strong. if that continues that will be a big help moving forward. when i mean strong, they're very strong. ashley: you're right. especially global markets, you know the economies are essentially flat right now, the u.s. continues it steam ahead. another one for you, gary, ford will restart production of the f-150 pup, a week after saying it would halt production. good news for ford? are you confident with this company? >> well, the stock has not done too well. we spoke about it a week ago. we said they will be on the fast track to get this moving again and a simple reason why.

they sell one of these trucks every 30 seconds. 900,000 last year. this is the big cash cow for this company. average price is over $46,000. so you can bet your bottom dollar when this fire happened, the first thing they were doing and last thing they were doing how will we get back up quickly? looks like they have done a good job of it. ashley: it's a cash cow for sure. gary, last one, the government opened a third tesla crash pope. this one in utah. we've been calling the stock teflon despite all the headlines. the stock does all right, what are you saying? >> if this company were selling steel pipes it would be down 75% from where it was. it's a glamour stock. big short position. some of the thoughts on it. $10 billion of debt. they will have to raise more money because the cash burn is huge. they keep missing their numbers on how many cars they are going to build. something will give eventually. i think they're very lucky we've been in a bull market for stocks. they have been able to use it as

currency. ashley: may want to check your email, gary. may have a hate email from mr. elon musk. >> he is brilliant. he is a brilliant man. ashley: yes. no doubting that. gary, thank you so much. appreciate it. >> you got it. ashley: why not? your royal update, two days away from the royal wedding. stuart is not here. wait a minute. i put two and two together. military personnel rehearsing the procession on streets of windsor. you have to practice. there they are. beautiful windsor by the way. day of festivities will include a 25 minute carriage ride. 2600 members of the public have been invited to the castle ground to watch. that would be cool. meghan markle now says her father will not be attending. no replacement to walk meghan down the aisle has been officially named yet. bets are on her mother. speak speak of bets, sports gambling now legal in every state but new jersey is waiting to actually put plans in place until it is actually regulated. so how should it be regulated? we're asking that question. plus, wyoming, cowboy

country vowing to be the cryptocurrency capital of united states. companies are already making that move. we have that story. more "varney" next. ♪

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to help protect yourself from a stroke. talk to your doctor about xarelto®. ashley: let's check the big board for you. okay, doing much as we can to at least get back to where we started. we were down just seven points. we were down as much as 85 points on the dow. 24,761. let's take a look at oil. this has been the story. moving higher again. getting close to 72 bucks a barrel. brent crude which is more widely used around the world is 80 bucks. the cost of oil definitely going up. look at the 10-year yield. we've blown through 3%. we're 3.1%. that too is a factor on markets. not having that big of an

impact. i think people getting used to the fact that interest rates are rising. now this. sports bet something legal now in new jersey but has put on hold until new jersey's monmouth park racetrack until they can figure out who how to regulate it. we have the radar u.s. president to talk about gambling in america. welcome, leyla. thank you for being here. you are originally from germany. i'm originally from the uk. we're a bunch europeans around here. we're so used to gambling. i used to joke there are bookies on every corner in the uk. i'm not kidding. the same in germany i'm sure. >> absolutely. it is liberal market. looking into the u.s., the question how we can legalize, regulate the market in way that makes sense to legalize and to get all of the money that's, that offshore right now. we're speaking 200 billion u.s. dollars, bet outside the u.s. by u.s. citizens every year. ashley: wow. >> how we can get that onshore.

ashley: right. 200 billion? if we could get all of that back into the u.s., that is a lot of money into the economy. >> revenue for the states. for example, they can taxation if that would be legalized and regulate it. it is a huge revenue stream in general. so spedding is so much more than only betting on gales. ashley: right. >> it brings in engagement. people want to watch games longer and they watch generally more games, if they can bet on it. ashley: right. >> your company is sport radar. you obviously have a connection with what in particular in sport? with the different professional leagues? >> yep. ashley: what do you do? do you tell them, this is how you can maximize your benefits from legalized gambling? >> yeah. so sport radar is the global leader when it comes to sports data especially sports betting data. we cover majority of market worldwide. we have seen so many good and

bad examples out there. we have 30 offices around the globe. we have great investors. michael jordan, mark cuban, ted leonsis. we're advising all the different stakeholders. we're partners the nba, nhl, nascar. we're speaking with all the different stakeholders, the leagues, casinos, the lotteries and we advise -- ashley: you're connected what we're saying. >> we're taking charge. ashley: the concern in this country, well you start getting betting involved with games and there is the opportunity or just heightens the risk of games being fixed, i argue, that hasn't happened, certainly to my knowledge, with soccer around the world, english premier league, teams in that particular sport benefit from sponsorships. they don't get direct cuts from the betting money. certainly an opportunity for sports franchises in the u.s. to generate much-needed revenue. or all revenue. i don't know if its much-needed.

>> through betting operators is huge market. if you take bets 365 one of the biggest bookmakers if they reinvest 25% of their revenues back into sponsorship what they usually do, what all the online bookmakers usually do, we're speaking 700 million already. ashley: wow. >> so it's a huge market. ashley. ashley: did you guys celebrate when you heard the supreme court ruling? >> yes, we did. ashley: balloons, champagne? >> yes. we couldn't celebrate too long because we have so many incoming calls. every one is asking us, how should we set it up. we're advising all our partners. ashley: that is the big question for every one. leyla, thank you very much. >> appreciate it. ashley: speaking of the eu, facebook chief mark zuckerberg will meet with the eu regulators next week facing the music in brussels i guess? liz: may 25th deadline for that new -- ashley: gdpr. liz: european privacy regulation coming down from the eu.

we just had news breaking, former head of cambridge analytica will sit down before british lawmakers as well an june 6th. facebook is, zuckerberg is trying to ease the glide path for his company which faces potential fines as other media companies if they violate flue flue -- new eu privacy rules. 4.7% potential hit if found by e.u. found in violation of privacy rules going forward when they take effect may 25th. the new rules are this, the eu, you, media, company, social media company, internet company, you got to tell, or any company by the way, you have to tell your customers if their data has been breached, within 72 hours of the breach. that is a big deal. also their data is being used and sold. you can imagine more pop-up screens. we're watching about this closed-door session with zuckerberg before the eu coming on may, next week.

ashley: there are lawyers all over this country feverishly working with these companies how to comply midnight next thus, one week from today. liz: we have to watch the tech sector and all companies on this the eu rules are pretty onerous. ashley: they rely on u.s. companies for their revenue, from fines. just what i'm saying. it has been up over a year since president trump and republicans created a passage of a bill to repeal and replace obamacare. now democrats are using this as a weapon going after specific members of congress, just like new york congresswoman claudia tenney. she will be here to respond. we'll be right back. ♪

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ashley: music streaming site spotify and pandora falling after youtube announced it will launch its own music streaming service. competition and both stocks moving down, spotify and pandora down. now this, the u.s. birth rate plunged to the lowest level in 30 years s that right? liz: yes. this has major implications. i mean this is the storyline that has been out there for a while about u.s. demographics for social security and medicare. we were talking last hour politicians take their lives in their hands if they try to cut medicare and social security. ashley: of course. liz: so it started right around the recession where families started to have less children. and it has dropped to generational lows. so i'm not sure, and, analysts are not sure whether or not d.c. has taken note of this or is taking it as seriously as others are taking it when it comes not just to economic growth but

funding social programs that people live off of in this country. ashley: how do you counteract that? just tell people to have more kids? what is the solution? liz: france did that, at turn of the 20th, before world war i, have more children. ashley: worldwide phenomenon. seeing it in japan. we're seeing it in europe jo that's right. you have less people working to fund those in retirement. ashley: especially for those countries like europe that have such extensive social programs, you have to really wonder. italy is another country where the birth rate plummeted. liz: right. ashley: how are they going to support in not too distant future these programs? liz: greece somehow came out of it, right? ashley: that's true. that's true. liz: do you print your way to prosperity? ashley: i don't know. by the way the italians are trying to get to grips with new coalition government right now. that's caused a lot of interesting -- liz: i don't know why the italian bond yield is trading --

in other words their yields are lower than our 10-year. ashley: try to explain that one. emac, thank you very much. coming up, president trump meeting with california lawmakers yesterday. the media pouncing on his word choice. you will hear it. kristin gaspar on border supervisors in san diego. she was there. she will tell us all about it next hour. ♪

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there you go. quick check of the big board. we were down 80 points. now we're up nine points. we turned it around. thanks to emac and i managed to turn the ship around. big tech names, we're checking those. big tech turned around after cisco with disappointing revenue numbers in the services department. all the major tech companies moving ever so slightly higher. goldman sachs says tesla may need a significant cash infusion in the next 18 months. how much? maybe to the tune of $10 billion. as we mentioned the cisco the biggest loser in the dow. that service revenue coming in light. that's what happens. the stock down a buck 50, down more than 3 percent at 43.66. our next guest is moving his new blockchain finance company? to the beautiful mountains of wyoming. this after the state passed legislation making it a friendly state for blockchain companies. james row, james, our originally

from texas, right? >> correct. ashley: you're moving north. you are going to set up shop. you filed paperwork to set up blockchain companies in wyoming. did you i give it a second thought? >> not one bit. ashley: why is that? >> we're not moving all the operations. we're starting a new operation based in wyoming. so it is actually new creation that we're doing that will support our operations both in texas and around the country. ashley: what are those operations? explain to the viewers who may not know what blockchain is. >> blockchain is a technology you hear mixed up a lot of things with crypto and other things. ashley: yeah. >> it's a technology that supports a lot of on the audit side. ashley: it is like a digital register. >> it's a digital register. dlt, distributed ledger technology. ashley: you're getting all jargon on me. >> i am. pretty much the way of the future. ashley: you are enable to buy and sell goods using this digital register like flow-through point if you like

in the exchange for those goods? >> correct. we're actually using it more on financial services side of the equation for ourselves. ashley: okay. >> we are obviously in number of areas where we use utility coins and security tokens. it will help us in those after-market products that we're looking to create. ashley: so much has been said about bitcoin, oh it is a big scam or just a complete bubble that is ready to burst. although many, most people agree that the technology of blockchain is very much a part of the future. how quickly does this come on? obviously you're ahead of the curve but at what point do we say this is just common? >> probably within the next 18 to 24 months. i think blockchain activities around the country, they're making headway everywhere you look. the energy chain, logistics chain. accounting legal, you see it everywhere, particularly in my sector, financial services. it is very apparent. ashley: how soon is it before i

can actually buy stuff using cryptocurrency and getting change back in cryptocurrency? >> cryptocurrency is one form of a blockchain. ashley: okay. >> there are other utilities and securities. they get mixed up so there is a lot of blending of words, et cetera. you will be able to transact using cryptocurrency pretty soon. ashley: pretty soon. >> there is reality. there are regulatory hurdles that need to be ironed out. ashley: if it is all online, why do you have to move to wyoming? why not do it in texas? >> good question. wyoming is pro--business state much like texas. has very much a entrepreneurial spirit. it's a great place to recruit people to. the overall cost of living there is low. ashley: yeah. >> high quality. ashley: very good, you went to the university of wyoming. >> i did. ashley: you had a little bit of a bias there. >> i have a bias. ashley: thank you so much for coming in. >> thank you very much. ashley: now this.

the national economic council director larry kudlow joined us earlier. he told us the u.s. is asking china to change their approach in many areas. take a listen. >> we are asking the chinese to change their approach in a number of areas, not heat of which of course is the technology problems. but to open their markets, to lower their trade and non-trade barriers, to allow additional american exports, which will lead to a lower trade deficit. ashley: there you go. joining us now new york congressman claudia tenney. congressman, your reaction to larry's take on the chinese trade negotiations? >> it will be interesting to see what plays out. i like to see larry -- we need to compete against china obviously. we need to change the trade imbalance. my district lost numerous, thousands and thousands of jobs, iconic businesses. ibm, oneida limited, all the

jobs were lost to asia. there are issues with tariffs but there are other ways to look at this to bring those jobs here. one of the biggest game-changers that we have done in the house of representatives, also through the president, is the tax cuts and jobs act. we heard from many big company like corning, for example, founded in new york state, near by district, thousands of jobs coming back to new york from overseas. we have a lot of people eker to work. so put them to work so they can find a job in their district. ashley: sound good. one year ago today a bill was passed to repeal and replace obamacare. now a democratic super-pac put out an ad targeting, well you. let's roll the tape. >> there is no escaping the consequences of claudia tenney's actions in washington. 10 any took big money from special interests, and voted for the health care plan the aarp says would slap an age tax on older americans. she gets the cash, you pay the

price. ashley: you get the cash, we pay the price. what is your reaction to that, congressman? >> duplicitous on every level. first start out, the democrats with nancy pelosi's millions of dollars are creating the house majority pac. it is aspirational, as you know the republicans are in the majority. they are trying to fool voters which is what is being done. my opponent running this ad for, took the maximum amount he could take from nancy pelosi, 14,000. hundreds of thousands being spent on this ad he suddenly says, you know what if i'm not supporting nancy pelosi. give the money back. oh, no, i am not going to do that, i need money to continue to run smear ads against you. the truth is the american health care act, had we passed, the bill never came to shore, we actually never got the bill passed would have saved trillions in taxes. tax cuts of another trillion to taxpayers. it would have helped the people in new york state who are literally getting crushed under almost a socialist,

government-run health care system being forced on them by albany and also by expanded medicaid. what we did is try to help seniors, what the obamacare, which is, repeal is very popular still in my district. ashley: right. >> what they're trying to say oh, yeah, this disasterous health care bill, it is obamacare, it is still hurting middle class. still hurting people in my district, individuals, small business. they can't even afford health care at this point. ashley: congressman, do you put together an ad to respond to that, better thing to as we head toward november, ignore it, focus on other issues? >> we're showing duplicity of it. remember something, the obamacare raided medicare, the hard-working people who put their money into medicare and social security, almost a trillion dollars was taken from medicare away from seniors given it in obama care to give for able-bodied adults instead of seniors on retirement. we cut taxes for seniors.

not what they're claiming. this is kind of duplicity because nancy pelosi and liberal democrats and my opponents know we need to replace and obamacare. notice they did not use repeal and replace palm cair. they included tax. they're lying about the tax cuts. they're working. seniors know it. they're loving it. they're trying to cleverly it had the two big important issues. we need to repeal and replace obamacare. we need to help individuals. help our small business community, thousands and thousands millions of people across the country in my district alone can not afford to go to the doctor. they have lost their doctor. the big lie, you can keep your doctor from obama, is still true. people can not see their doctors. they have a nice insurance card but they can not see a doctor because their deductibles are enormous. their rates are enormous every year. one thing we did do in the tax cuts and jobs act that really helped -- ashley: right. >> we cut the individual mandate. we saved all the people paying

in penalty and not having insurance. we're encouraging people to enroll. get affordable health care. that is what we're striving for, so yeah. the lies continue. ashley: affordable what nancy pelosi said. we play that bite frequently. congressman 10 any thank you so much. appreciate your time. we have new video coming in right there. that is the chinese trade delegation coming in. a long lens to get them coming up the steps. not very exciting. there you go. they're arriving at the treasury department for today's talks. we'll bring you any updates out of that meeting as we get them. there they are. they have arrived. now this, walmart and jcpenney reporting profits before the bell. guess what? our kristina partsinevelos joins us what they had to tell us. >> essentially earning and revenue beat expectations. ashley: yeah. >> the stock is trading a little bit down. i want to focus on e-commerce which is up 33% since past quarter. much better than the previous

quarter. ashley: yes. >> company is pushing forward to revamp the website. they removed big walmart logo so it seems more discrete. they're joining forces with lord & taylor department store going into the high-end market but they're also testing same-day delivery, this very recent, to go right head-to-head with amazon. they're rolling it out. 40% of u.s. households. they're trading lower, primarily e-commerce, they're expecting growth to climb 40% but we only saw 33%. i want to focus on the best bang for your buck. that's what i'm all about. ashley: that's what we're about. >> do you drink long island iced that's because that -- liz: the liquor version. ashley: there is another versions? >> guggenheim comparing walmart.com with amazon prime. we have some winners for that. we'll start with clorox toilet bowl cleaner there.

is huge price discrepancy there. 13.45 on prime. 4.97 cents. that is huge savings. oxy screen stain removeer, most drastic difference. 12.48 on walmart. 18.85 on amazon prime. ashley: incredible. >> arizona green tea. $3.78, versus 7.23 on amazon prime. ashley: blue light specials. >> welchs fruit pack. 6 bucks. ashley: we learned something new. liz: great stuff. ashley: excellent. liz: i love that. ashley: guess where i'm going after this? liz: walmart. ashley: venezuela facing election, so-called election. seems like every day we bring you crazy headlines out of there. we'll get an update what is happening on the ground next. plus lou barletta, trump supporter winning republican primary for senate in pennsylvania that is, he is going to face senator bob case civil he will tell his plan how

to win that race next hour. we'll be right back. ♪

♪ liz: welcome back. last hour illinois congressman adam kinzinger said all options should be on the table when dealing with north korea and that although no one wants military action something must be done one way or the other. >> i think it has to be the case. and i think denuclearization for basically infiniti, forever. that will come with some carrots. north korea their carrots will be some economic opportunities. north korea carrot there will be protection either by china or guaranteed by us not to invade like we had with cuba but a nuclear north korea i think is unacceptable to this president who has made it clear, this is kind of a churchhill moment where everybody is eager to avoid military conflict, i am too, but you understand that the decisions we make today will have impact for generations to come. ♪

ashley: u.s. and venezuela condemning prison riot that broke out at a prison in caracas. what happened? liz: political prisoners, ahead of sunday election, there is an american from utah who met, he is mormon, from utah. he met a woman in caracas. went down there to marry her. got arrested. he has been in the prison for two years. he put up two messages on social media pleading for the u.s.

government to help him. he saying my life is being threatened. i've been begging my government for two years. how long do i have to suffer here? he has been trapped in this venezuela for two years on trumped up weapons charges. they took him out of his caracas apartment and put him inside of this press shown. we'll stay on this story and the elections, maduro, because you could see more trump sanctions on venezuela. ashley: exactly. liz: with maduro possibly be reelected. ashley: let's bring in an expert, vanessa neumann, blood profits author. every day or every week we talk about how it is just deteriorating more and more in venezuela but let us not forget we have so-called elections coming up this weekend s there any doubt mr. maduro won't win? >> no, not really. there is no doubt. you're right the first time my name is newman. >> i wept with german.

>> newman. democracy a bit of a flexible concept in venezuela. so-called elections, they're completely illegal. they're recognized by the international community at all because there had been demands, two years of negotiations with the opposition to get a new electoral commission, a new supreme court, new voting machines, new everything, the, and also to release the political prisoners who were the leaders of the various opposition parties. the guys who can really win are either in prison or exiled. the opposition candidate is basically a stalking horse on the regime payroll, everybody knows that. so, there is, completely fake. we know maduro will win. he is just going to use this to, you know, try to get financing from the international community. ashley: well, good luck on that. we know that, emac reported just yesterday three million

venezuelans have already got out of the country. we know the bolivar is collapsing. the annual inflation rate is 16,000%. u.s. dollars are much prized in venezuela. >> yeah. ashley: listen, so he has an election, he wins. i really don't see how that changes anything and at what point, we ask you this question every time, where is the tipping point in all of this? when do eventually the international community say enough is enough? >> i don't know. i have really much faith that the international community will say enough is enough. ashley: yeah. >> unfortunately what you hear, i got videos that were sent to me last night of the different prison riots. it is, forgive me, it is heartbreaking because they are saying, i would rather die than live in this prison and be tortured. liz: wow. >> i would rather die with dignity. we have to fight for our freedom. so they have become sort of a symbol for the broader country saying the entire country is

kidnapped. we have been kidnapped. they were supposed to have been released a couple years ago and, and the struggle there which was originally a shopping mall. it is a giant prison that was originally a shopping mall, has become a prison run by the intelligence services. it's, there is multiple levels of horror. ashley: yeah. >> until the people all get together and rise up, and then that creates opportunity for human hahm aid to -- humanitarian aid to come in, i don't know how it will end. ashley: soon we hope. vanessa, thanks for joining us. we appreciate night thank you very much. ashley: president trump calling out the oakland mayor yesterday in a meeting with california officials saying she obstructed justice when she tipped off illegals i.c.e. was coming. the judge will tell us if she did break the law with that next. ♪ they appear out of nowhere.

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my visitors should be the ones i want to see. same thing with any dent or dings on this truck. they all got a story about what happened to 'em. man 2: it was raining, there was only one way out. i could feel the barb wire was just digging into the paint. man: two bulls were fighting, (thud) bam hit the truck. try explaining that to your insurance company. woman: another ding, another scratch. it'll just be another chapter in the story. every scar tells a story, and you can tell a lot more stories when your truck is a chevy silverado. the most dependable, longest-lasting, full-size pickups on the road.

ashley: now this. president trump suggesting that the justice department investigate oakland, california, mayor, libby schaaf for tipping

off illegals ahead of i.c.e. raids. we all know this story. all rise. judge andrew napolitano is here. judge, most people say outrageous, a mayor to city pandering to people illegally in the country, telling them i.c.e. agent are here, better get out of here. the president said what? >> the president i think is playing to his base says that. if he literally means she should be prosecuted he needs to consult with his people in justice department because it is not a crime for her to issue a verbal warning. if she took these people, who are the subject of deportation orders and hid them in the basement of the mayor's mansion, city hall, that would be a crime. that is heart aboving a huge tiff -- harboring a fugitive but using words is reckless, dangerous for i.c.e., is dangerous for these people. can produce violence. cause expenditure of more resources but it is not criminal. it is protected speech. ashley: i guess only way you can

take action is vote her out. >> correct the remedy is politics. but for the president he makes political hey, not legal hay when he makes a statement like that. ashley: speaking from the heart, rather than the head? >> yes, it resonates with people who can't understand why a mayor would do that. she probably will be reelected in that town in large measure because she did that. ashley: of course. >> because the, sentiment of voters in oakland, california, is hardly pro-trump on the issue of immigration. ashley: true. >> hardly pro-trump on anything, i don't know, but certainly not on this. ashley: it i outrageous, i'm sorry. there are hardened criminals among these people she is warning. >> yes, they are. ashley: they are allowed to escape to do god knows what. >> she is in sanctuary city state. there is statute that prohibiter the her and her police department from helping i.c.e. that you can blame jerry brown and the legislature in

sacramento which is trying to become as liberal as the legislature in trenton. ashley: can it get anymore liberal. >> we'll have to leave it there, judge. we appreciate independent. more "varney" right after this. : : :

here we go, it is 11:00 a.m. in new york. 8:00 a.m. in california. we have a jampacked hour ahead. the trump supporter who won the republican primary in pennsylvania will face senator bob casey. i want to know his game plan to win. he is with us. plus san diego county border supervisor kristin gaspar was one of several century city officials who met with president trump. she is with us to tell us all about that. in just a few moments, we been hearing about the blue wave in

the midterm but hang on, that may not be the case. this is the third hour "varney" and it begins now. about an hour and half into today's session, check out the big board. it's turning around. up 57 points and more green than red. there's a downturn in revenue services, coca-cola leading the way. the nasdaq, let's look at the nasdaq. it's a bit of a drag early on in the session and it's up about a third of a percent.

the small cap stocks in record territory, up another ten points or half a percent. the russell is up 16 - 26. a big story at 3.10%. >> of three-point oh on ten years of long-term interest-rate and the fact that it has picked up a bit is a sign that the american economy is growing more rapidly. >> joining us now, newt gingrich is the former house speaker and author of the new book trumps america. the truth about our nations great comeback. it's great to see you. with that comeback in mind, as larry kudlow just pointed out the economy is doing nice while other economies have flattened out around the world. the u.s. economy continues to rev up. something i would imagine those facing midterm elections point to on the republican side.

>> deregulation, tax cuts innovation, the right policies favoring work and welfare. it's sort of an emotional signal to small business leaders, and printers, greeting people in the economy and we've had the highest positives we've had in many years. there's one report that the second quarter maybe 4.1% growth. if that happens i think you're going to see the country look up lois black unemployment in history. five of the six lowest. latino unemployment months have been under trump. i was visiting my mother on everywhere we went there were signs of the set help-wanted. people are trying to hire people and are not available.

this by the way will lead the trump administration to a big emphasis on vocational education to make sure people get the skills they need to do the job that are becoming available. >> exactly right. that's a great idea. you have a few headlines. the first one, the experts were wrong in 2016. they could be wrong in 2018. we been hearing about this blue wave in the midterms, but you think what, a blue rebel? [laughter] i do to free newsletters a week and i just did one that said the blue wave may turn out to get down to a blue trickle by the time were done, and frankly, you look at the left wing nut case that they are nominating, they just nominated an anti-semitic

candidate in houston, they been nominating very far left people. despite what happening in venezuela they've nominated people who are overtly socialist, i think it's a pretty heavy left in the general election. i think the democrats are digging a deeper hole and frankly, as the economy gets better and trump looks better and better inform policy, i think the republicans are making a comeback. >> i also wanted to ask news about president trump's push for lower drug prices. you say he's already made progress. >> he has made tremendous progress. years ago back in 2003 i wrote a book called saving lives and saving money and outlined the strategy they're implementing. this is practical common sense, it will save billions of dollars, and for the first time it puts the focus on the foreign governments who have been ripping off american companies and i see that as part of trumps overall trade strategy and why should we allow the french and the british the germans to literally force us to sell them drugs below the cost

they're being sold for in the u.s. that's what they do. they say if you don't tell us the drugs we will steal your intellectual property anything is traffic that trump administration is now taking it head-on. >> i used to be the benefit of those low prices when i lived in the uk. i can tell you firsthand they were very cheap. you're absolutely right. what's the main premise of the book. >> their coverage actually distorts what's going on. it's not about president trump as a person but a huge number of americans who want to see us be a productive, dynamic, prosperous and safe country are prepared to take the left on. i think trumps america is really a book about what we are living through and the opportunity we have to give our children and grandchildren a better future.

>> i just wanted to quickly touch on the foreign policy of mr. trump. probably words of doom that were going to be at war with everyone, i know the north koreans are saying maybe will push back this summer but the fact that they're coming to the table in the first place is very encouraging. we have a trade delegation talking with u.s. officials about how too do some rearranging of the trade partnership to make it a more level playing field. the u.s. embassy is moved to drill islam and there's been so many things, but the bottom line of all this is that america is once again taking the lead, peace through strength going back to ronald reagan. i feel like it's really paying dividends.

>> i think peace through strength does matter, sector matus is doing a great job rebuilding the pentagon, the president has really pushed hard to get them the resources they need and at the same time the thing that's amazing about trump is he may zigzag a lot on small things, but on the big things, he said the randel was a terrible thing and he would keep his word. he said he would move the embassy and he kept his word. he has been very tough with the north koreans and the chinese have been telling them, don't underestimate the sky. i think we are seeing a remarkable moment in history where the president who combines reagan's toughness and the good negotiator also understands the principle of trust but verify and whether it's with iran or north korea or anywhere else you will see

a different, more realistic american policy. frankly, sector of state pompeii and jumbled working with secretary mattis, that's a great team for american national security. >> it's been remarkable to follow. good luck with the book. thank you so much for joining us. we appreciate it. >> the cost of oil is up 42 cents at $71.90. crude is up at 580. the cost of oil is going up. gas prices are on the up this morning nationwide. the average is $2.90. gallon. there are 13 states, indiana is the latest hit three dollars a gallon. here's where gas prices are the lowest. mississippi has a lowest price. 259. gallon. very soon we will talk to him,

he now has the president behind him. is that the winning strategy? the board of supervisors tristan gaspar will join us. she is one of several california officials in the white house meeting and she is with us next. also, in about 20 minutes, house speaker ryan will take to the podium and we will bring you the headlines if there are any. more varney after this. brighthouse financial allow you to take advantage of growth opportunities... with a level of protection in down markets. so you can be less concerned about your retirement savings. talk with your advisor about shield annuities from brighthouse financial- established by metlife. on the only bed that adjusts on both sides

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smuggling cartels are making more than a half-billion dollars. year bringing migrants to the u.s. they pay smugglers on

average $8000 to get into the country. the booming u.s. economy and lax immigration laws are encouraging more immigrants to come here and the smugglers are making a fortune. our next guest met with president trump at the white house. listen to what she told president trump about governor jerry brown. >> if you look around this room, your tiny but mighty team, this is what governor brown classifies as lowlife politicians. well here we are and were all in because we are going to fight for public safety and we are going to speak freely about this issue until we can look back at our own children and guarantee their safety in our community. >> kristin gaspar, she joined us now in person.

tell me about the meeting. obviously you were given the opportunity to have your say. the question is what good does that do? >> it was quite the surreal experience. i don't quite know how to wrap my mind around it. coming out of that meeting, one thing is for sure. we sat around with 16 people from around the state of california, all aligned in a common cause to protect our community. it's something that is truly worth fighting for. i walked away feeling california we may have a lot of problems but were not a lost cause yet and we will speak up and start talking about some of the things that are happening throughout the state that we have in common. >> they asked about the status of the border wall in san diego county. i want to play that back. >> how's the wall going. >> it's going.

i guess kristin, what is the latest? is under construction? >> it's not under construction. the 2017th, 2018 congressional budget outlined about a 14-mile stretch where we need replacement fencing that's currently there. the structure is in place. that's important to understand. we already have a border wall in san diego but even with the border wall we have a call for increased border security because we are dealing with human trafficking. it's an 810 million-dollar revenue, and underground industry that's quite unbelievable. we also have drug trafficking across our border. we just spent a hundred $90 million of the county to address rehab services for our community. i looked at the numbers, 58000 dosages of pharmaceutical illegally cross the border last year a lot. we have maritime insecurities so we need a secure border in san diego. >> last one for you.

president trump is getting some slack for comments he made during that meeting. listen to this. >> we have people coming into the country. we are stopping a lot of them. we are taking people out of the country. these are people. these are animals. he's getting some slack for using that phrase animals. >> people need to go back and listen to the full meeting. this comment was taken out of context. you can see why he does get frustrated with the press. if you were to watch the whole meeting, we are talking about several instances where people are coming into our country illegally, committing crimes, things as terrible as murder and escaping freely back across the border.

in the context of this we were talking about ms 13 gang members, murders that were taking place as a result of criminals, not just people came across the border illegally by people who are committing crimes in the united states. >> when you look at what ms 13 does, you understand why the president uses that language. thank you so much for joining us. we really appreciate it. get some inside commentary on what happened at that meeting. thank you so much. >> thank you. >> let's look at the yield for you. it's inching up just a little. now it's 3.11%. the market is not really reacting. we were down about 80 points early on and were now up another 25. about a hundred points wing.

definitely interest rates are rising, no doubt. let's look a bit quaint. it's been hovering around 8300. there you are down $39. that's a very big move for big claim. now this. the kilauea volcano has destroyed dozens of homes, it's forced about 2000 evacuations. the u.s. geological survey is warning that a major abruption could happen at anytime. but, as you can see some i like what volcano. the not too worried. they are hitting the links even as ashes stirring up in the air. >> guess what this golf course is called. the volcano golf and country club. i kid you not. the owner says it's not in the path of the volcano but you know what, the wind can change. look at that. more varney after this. hi, i'm bob harper,

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you can just see the made in china symbol right there. skyrocketing obamacare premiums are going to be a big issue in the midterm. betsy mccoy is here with us and she tells us the democrats are in denial. just a few moments, paul ryan will take the podium and will be listening for some headlines. we'll be right back.

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>> happening any moment, paul ryan will hold his weekly news conference right there. the podium awaits. of course any headlines that come out of that we will bring to you immediately. let's check the big board. stocks up just a little, recovering, we're down 80 points right out of the gate but we turned it around a little bit. we have modest gains with more greens than red. the dow at 24 - 803. take a look at this headline. it is titled america's so-called allies. it's about europe's response to president trump pulling out of the iran nuclear deal. the man who wrote the article joins us now.

dan we are talking about our unhappy allies, uk, france and germany. you say they don't care about the nuclear threat, they're worried about trading money, cracked. >> absolutely. that's what it jumped in so quickly when they offered the possibility of doing a nuclear deal with iran, releasing the sanctions and allowing trade. i think europe has become primarily a commercial power. everyone knows their militaries have declined and they become a commercial power. after the withdrawal from the rear nuclear agreement, to have these three denouncing him as though he's turning to ran into a nuclear power again is a little bit difficult to take. they are upset about those trade revenues. >> the red herring as you put it. >> things have been happening

since the 24 hours i wrote this column. the treasury, trump treasury department has identified the iranian central bank as laundering money through other arab countries. obviously some of that money has to be the revenue from trade with the european countries. treasury designated the head of a rant central bank as a supporter of terrorism and most importantly, the european countries like hotel, the big french oil company and winters hall have all said they're going to start winding down their business with iran because of the sanctions. >> you also made the point that the deal that obama struck with the radians created the political instability in europe. >> yes. exactly. this happened after the deal was signed in 2015. within days, the head of the good force went to moscow,

started setting up the alliance to move down and participate in the syrian civil war. after that, the number of refugees from syria flowing into europe escalated dramatically, and as we know, it destabilized the politics of western and eastern europe. in a sense, the europeans were funding the destabilization of their own government. i think the european people should be demanding a better deal. >> that's interesting. you think this administration gets this? i know you pointed out in this article, but you think they understand that the point of view from our allies as we call them is purely based on their interest and nothing else. >> and only understand it, for sure because they been trying to negotiate with them since october to try to improve the deal. the europeans understand it as well. everyone knew that after that deal was signed in 2015, they had left many things undone.

the missile program and the activities of just been describing and the provisions in 2025. i think were getting to the point where the europeans are going to settle down and sit down and start negotiating a better agreement. >> very interesting. >> very hopeful. >> it is helpful. honestly you believe we did the right thing pulling out of this deal. >> i think it pulled us back to reality, a reality we should've faced back in 2015. >> thank you so much for being here. we appreciate it. >> obamacare premiums. how many times have we said that. they're going to be a big issue in the midterm. our next guest wrote a new piece about it. it's called dams in denial on why obamacare premiums are through the roof. joining us now is betsy mccoy and her trusty file. have you actually weighed that file. >> i think it's about

25 pounds. it's a burden on the american people. you hear politicians like chuck schumer and nancy pelosi blaming the coming rate hikes from the republicans in the trump administration part you would have to have amnesia to actually believe that's the case because let's look at history. the first four years of obamacare, premiums double. then in the fifth year they went up again. now are facing your six and again double-digit premium hikes over those six years, obamacare premiums will have tripled. >> in effect the democrats are criticizing the republicans for not repealing it and leaving it in place which is ironic. >> you could say that. the fact is independent experts, management experts point to the specific provision in this law that is causing these premium hikes. it's the provision that requires insurance companies to charge healthy people the same as very sick people. the fact is, 5% of the population uses 50% of

healthcare. the scheme which was mandatory tried to force the small number of healthy people in the individual market to carry on their premiums the entire weight and cost of the chronically ill. congress had an opportunity to fix it and didn't, but eight states are already moving ahead with a very smart idea of spreading the cost of the chronically ill, not abandoning them but spreading it widely by using general revenues so it will lift the burden off the individual market. you will see that happen in one state after another. >> so this will be a campaign issue in the midterms for sure. you could argue democrats will make the argument you just said but the democrats can come back pretty strongly. >> here's the unfortunate thing. congress is enacting. why should they. members have the sweetheart health insurance deal. they are to get off their duff and fix it for everybody else. >> could you tell them that. >> i think so.

>> we talk about the premiums and we had john on here who is the father of the health savings account. he said but, the best thing to do is just save money. the reality is it's very hard for people who have a hard time saving money. why should they have it for these amazingly high deductibles? >> what this law has done is create a whole new uninsured population, the middle class. the not eligible for any subsidies. they're not on medicaid, and they can't afford the premiums. >> where does that leave us? if an individual can't afford it and they get sick but can't go to the doctor and they put it off and get sicker, eventually they may have to go to the emergency room or they are treated. who foots the bill for that. >> that's called uncompensated care. >> so those costs are covered in premiums. >> that's right, but the really big cost is that more

americans see that this kind of schemas totally abandon them. they can't pay the thousand dollars a month and then have a whopping deductible, $8000 for the deductible, that's the average deductible now. >> it isn't health insurance. >> it isn't but unfortunately the politicians in washington are more worried about creating a campaign issue that actuallthan actually solving this. this is a solvable problem. every single gop proposal to repeal and replace took that one step that the states are now taking of funding insurance for the chronically ill and general revenues to bring down the cost of the individual premiums for everybody else. >> a glimmer of hope. in the meantime are you gonna carry around that 25-pound file. >> someday we will celebrate getting rid of this. >> thank you very much. >> now this. a bill in the california

senate would eventually require all over and lift cars to be electric. the bill mandates that 20% of miles traveled by ride healing services be zero emission cars by 2023. that requirement keeps rising until 2031 100% of vehicles used by uber or lift would have to produce zero emissions. supporters say the bill will be good for the environment of course. the russell 2000 in record territory up 1625, the small cap stocks going very strongly. blue apron is very high after appointing a new financial manager. it's up 17 cents which is a six and a half% gain. more than a dozen republican senators wrote a letter to mitch mcconnell asking him to cancel the august recess if they don't get their work done. what a good idea. senator steve davis signed that letter and he will join us shortly. but first let's go to the

congressman is moving on to the general election after beating his republican rival in the pennsylvania senate primary. and, he has the president support. we will talk about it, next welcome to holiday inn! thank you! ♪ ♪ wait, i have something for you! every stay is a special stay at holiday inn. save up to 15% when you book early at hollidayinn.com

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time nicole with your foxbusiness brief. the ford f1 50 will be back in production within days according to the company. the bulk of the global prophets, the stock is up half of 1%. we did have production paused. [inaudible] the company is saying it is restarting production of the f1 50 pickup on friday. it went off-line after last week. by monday they expect to restart at louisville and the f1 50 at kansas city missouri plant. it will affect the numbers and expects the production to increase second-quarter

earnings.

congressman is moving on to the general election in november after beating his republican rivals in the pennsylvania senate primary and he has president trump's full support. the president tweeted this. we will be a great senator from pennsylvania but his opponent bob casey has been a do-nothing senator who shows up at election time. he votes along the nancy

pelosi, elizabeth one lines. love sanctuary cities, bad and expensive healthcare. and, voted against the massive tax cut bill, he's also week on borders and crime. sadly our great military mean nothing to bobby junior. lou barletta will win. not bad. the congressman joins us now. first off, getting the president support, how important was that you? >> it's very important to me. as one of the first to endorse the president when he was running and cochaired his campaign and present trump did very wellin pennsylvania as we all know, especially how many blue-collar democrats who are now trump democrats in pennsylvania. >> as we look ahead to november, what will be your line of attack? what are the key issues to get you across the line? >> there can be a bigger contrast.

there's a difference between bob casey and myself. the main issue is bob casey doesn't represent the people of pennsylvania any longer. he voted for obamacare where in pennsylvania we saw our premiums go up 120%. he supported sanctuary cities. i was a mayor, the first mayor in the country to stand up against illegal immigration and he voted against the tax cuts. that allowed pennsylvanians to get some crumbs. he votes with elizabeth warren over 90% of the time. that is not pennsylvania he would be a better senator for the people of california or massachusetts, but not the people in pennsylvania. >> we have seen the results that the tax reform, the economy is moving along nicely , companies are expanding, their hiring, unemployment is down, industrial production is up, capital expenditures up, i would imagine it's very hard for democrats to argue against that.

>> again, these are blue-collar democrats in pennsylvania, and right now we have an opportunity of a lifetime. we can become a state among nations because of the opportunity we have with natural gas and energy, these are great jobs that help everybody in pennsylvania. bob casey is on the opposite side of that and when you're taking a position on the opposite side of the family sustaining jobs, it's going to be hard campaign why you don't think they should get a tax cut and why you want to stop the energy opportunity we have in pennsylvania. why do you care about illegal immigrants more than you do the pennsylvania families. that's going to be a tough position for him to take and i'm welcome to have that conversation. i been a blue-collar worker and congressman and emma take those blue-collar values to the senate where they made it. >> and talking about blue,

we've had a talk about blue wave. very quickly, maybe not. maybe the tide has turned a little bit and with the success on the foreign side for the president and the economy, maybe not such a blue wave, maybe even a rebel. >> nothing matters to families, especially in states like pennsylvania and the economy. they just want to take care of their families. what is there to complain about. stock market is up 20% since president trump is in office. unemployment down 2.9%. black unemployment is at an all all-time low. isis is just about gone, the north koreans are coming to the table, what is there to be unhappy about. >> condition and thank you so much. we appreciate your time. by the way we did invite bob casey to come on the show. he has not responded to our calls. by the way, we have breaking news on your screen. the judge has ruled in favor of national cbs case.

>> this has a victory. what happened was the cbs board had tried to stop national amusements with the restraining order blocking sure redstone from stopping the move to dilute their control of the company. in other words, cbs is trying to say no we don't want to merge with viacom. sherry and her father are saying yes, remerge so what are trying to push out the red zones by diluting their control of the company and the judge ruled saying now shea redstone can come in and fight total with cbs over the future of cbs. >> now the question becomes what happens now? >> look at that stock. that tells you a lot. >> it tells you a lot. it tells you possibly cbs will remerge with viacom.

we are watching the story and maybe less walks out the door with a hundred 87 million in executive compensation. >> can they continue the legal fight at this point. >> yes, they can still take it, try to get shareholders a vote. shareholder in order to dilute the control. >> it's a corporate soap opera. >> it certainly is. a lukewarm forecast from cisco. as you can see that stock is down but not as much as it was, still down nearly 3%. take two revenue outlook is falling short but analysts are staying optimistic. the stock is applicable dollars at 115. jcpenney sales fell and it's off another 33 cents. that is how much but it's down 11 and half percent. more than a dozen republican senators wrote a letter to senate majority leader mitch mcconnell asking him to cancel the august recess if you look

at the work done. senator steve dain signed that letter and he joins us shortly at some point, we are going to be able to beat als. because life is amazing. so i am hoping for a cure. i want this, to uh, to be a reality. um, yeah.

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>> our next guest is one of more than a dozen senators who wrote a letter to mitch mcconnell. they want him to cancel the august recess if they don't get their work done. joining us now is steve daines, republican from montana. the great state of montana that i lived in helena and it's the most pitiful place on earth. that's beside the point. why did you sign that letter? >> they have no business -- of organic keep draining the swamp, the pumps need to stay on. i had never heard of in august recess in business, but to do it here on capitol hill, but here's why. it's been the obstruction of the senate democrats like chuck schumer that put us in the situation. we have 273 nominations.

during the first term they have struck four of his nominees. in president obama's it was 17. in the first 17 months of president trump's administration it is 93. it is off the chart. that story is not getting out to the american people. that's why we need to stay here, move through the presidents nominations and move our spending bill forward to get the budgets passed before the next fiscal year starts on october 1. >> there's a dozen names on the letter. is there wider support. >> there is. if you look at the names, it's the new generation of senators who have come to capitol hill. we are shaking up the status qu quo. president trump wants to see this happen. this is a groundswell movement of younger united states senators saying it's time to change the way we do business and get back to work on behalf of the people who sent us here in the first place.

>> legislatively, what are the key pieces of legislation you need to have done quickly. >> i would start with the nominations. we have to move these nominations through. if you think about it this president is 17 months into his term. seen obstruction at a level never before seen in the history of this nation. we need his people to get to work to drain the swamp. second, the appropriation bill for the fiscal year starts october 1. this past year they didn't get past, we were six months into the year. if i ran my business that way i would have been fired. we need to get the spending bills and nominations through and that is how we can keep this country moving forward. amen to that. we wish you the best of luck. keep fighting the good fight as they say. we appreciate it. >> more "varney" after this. ♪ ♪ ♪ marco pah! that will never work.

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and i recently had a heart attack. it changed my life. but i'm a survivor. after my heart attack, my doctor prescribed brilinta. it's for people who have been hospitalized for a heart attack. brilinta is taken with a low-dose aspirin. no more than 100 milligrams as it affects how well brilinta works. brilinta helps keep platelets from sticking together and forming a clot. in a clinical study, brilinta worked better than plavix. brilinta reduced the chance of having another heart attack... ...or dying from one. don't stop taking brilinta without talking to your doctor, since stopping it too soon increases your risk of clots in your stent, heart attack, stroke, and even death. brilinta may cause bruising or bleeding more easily, or serious, sometimes fatal bleeding. don't take brilinta if you have bleeding, like stomach ulcers, a history of bleeding in the brain, or severe liver problems. slow heart rhythm has been reported. tell your doctor about bleeding new or unexpected shortness of breath any planned surgery, and all medicines you take. if you recently had a heart attack, ask your doctor if brilinta is right for you. my heart is worth brilinta. if you can't afford your medication, astrazeneca may be able to help.

ashley: guess what? be sure to stay with the fox business network. in the next hour susan li will speak with canadian prime minister justin trudeau. you will see the interview live. emac, what do we want to hear? what are we expecting to hear from trudeau. liz: this will be exciting interview. unofficial deadline for congress to act on nafta deal. they will not get it done. it already expired. comes smack in the middle of his visit to the u.s. midterms of mexico election coming up. separate from that, border security issue. you were talking about it. ashley: yes. liz: justin trudeau said come to us, immigrants and refugees. ashley: yes. liz: now canadian officials are saying we can't do it the way you wanted it, justin trudeau. we have to turn them back. they have a tougher immigration

system. ashley: like australia. that interview in ten minutes. quick check of markets for you. we're flat as a pancake. we went down 80. we're up 30. now somewhere in the middle. been one of those days. neil cavuto is here to take it all away. neil? neil: thank you very much, my friend. we're following up on a stock thanking. called cbs. what are long term implications from this? let's get details from charlie gasparino following this whole drama closely. essentially she has given up her hand for the moment but explain what happened. >> she has given up her or hand and got the upper hand? >> got the upper hand. >> she can fire entire board. fire les moonves. neil: do you think she would? >> it is interesting. something came across the tape. the cbs is still going with the board meeting at 5:00 p.m. they may take further legal action