misconduct involve twotion different women. >> connell thank you for your reporting you'll be down there as morning moves on. thanks to lindsay kevin, and aaron right now it is all about one man. well and some of his guests stuart varney take it away. >> good morning daigen and good morning everyone. yes it is friday. we're going to start with this. >> alexa, stop -- please -- chilly peppersesome this is not my -- alexa -- what is the capitol of martai. >> alexa -- who is neil cavuto? >> sorry i didn't understand the question. [laughter] >> stuart varney birthday is 19 49. >> oh they were wrong by the way. look that was all good fun i got it. but now -- that story take its dark turn.

an amazon echo recorded a private conversation and sent it to a third party. now, this happened two weeks ago to a family oregon they were sitting around talking i believe they were talking about wooden flooring. taillight the echo thought it heard the word alexa so it started recording it thought it was a send message request so it sent the message in this case to random family contact so the echo listens, it may record, and your conversation may go out to the world. the privacy issue just went it a whole new level would you buy one now? will you mute the one you've got? we are asking those questions. as you can tell -- it's friday, iemg sure you can tell it's the nature of the show on a friday and thought memorial day weekend we'll be driving a lot and paying for it 17 states plus district of columbia where regular for average prees is 3 a gallon. california most expensive the

average in california is $3.72. the rest of us now pay a national average of $2.96 at a three-year high just as the driving season begins and this -- is the political story of the day. the presidents approval rating hit its highest level in over a year 44% of the real clear politics average of polls despite a constant barrage of hostility it is steadily rising there's a message there for democrats in the november elections. the always different friday edition of "varney & company" is about to begin. it happened moments ago harvey weinstein walking out of the new york city police station charged with rape are. connell was there described the scene connell, please.

>> well i was only standing few feet from him as he came of the first precinct in the tribeca neighborhood in new york city and mr. weinstein, as he did on his way into the the precinct about an hour and a half earlier, showed no emotion had a blank expression, on his face, but you made the key point the big difference on his way out compared to own his way in is she was in handcuffs hands behind his back two nypd detectives flanking him into a black suv for the driver over to the center street courthouse here in new york while he'll be arraigned today on serious charges. mr. weinstein allegation as against him really began what we now call the me too movement in this country allegations from dozens and dozens of different women but the charmings today involve two women from what e we've been told by the new york city police department mr. weinstein will face charges of rape, with criminal sex act, sex abusing and sexual misconduct in incidents involving two separate women. so the next step in the next few moments probably ten to 15

minutes he'll be arraigned at the courthouse. and then the legal process will take shape and remember these are first charpgs for all of the talk and allegations that mr. weinstein has faced and we've seen hmm just momentses ago leaving the first precinct here. >> all right connell right there thank you so much that happened literally moments ago. let's get to your money take a look at futures remember please this is the day, the start of a long holiday weekend markets close monday. it is memorial day, this is the last trade aring day before that long weekend, going to expect a fairly quiet session and prices will open lower. look at oil, that's maybe the market story of the days. russia and saudi arabia may increase production down goes the price. we're down over $2 a barrel. 68 bucks is the current quote. to north korea, the president is not giving up on the summit. roll tape. >> if and when kim jong-un chooses to engage this constructive dialogue, and

actions -- i am waiting. in the meantime, our very strong sanctions by far the strong fest sanctions ever imposed and maximum pressure campaign will >> all right ashley i believe north koreans have responded. we were talking about that yesterday in the letter to kim jong-un basically saying look, i was enjoying our dialogue and ilgd like that to continue give me a call my time write me if you like and north korea spopgding saying look we are willing to meet with donald trump, quote, at any time and i have this quote from king, with the foreign ministry there in north korea he says we would like to make known to the u.s. side once again, that we have the intent to sit with the u.s. side to solve problems regardless of ways at any time. you know the -- the straw that broke the call

camel back and then this exchange of harsh language as president put it. but -- maybe not off we don't know june 12th could be back on but certainly they're still talking. >> good question with now joining us is senior strategic analyst karl sounds like they want to get back into this summit. >> they do. but i don't think we should rush into it. i think what this has identified the profound differences that question really have, and the administration has to draw become and see what really happened here. one, south korea, the roll that they play their engineered the summit and had profound differences between kim jong-un and the united states. they're ones that told us that kim is making a strategic shift in policy. truth is he's not. he's more in arm control process where he'll give a little and get a little. and we want him to give it all up. the second thing is the role of

china. after the may 8th meeting, kim m jong-un tone change and ability to make concession change and shut down talk requests south korea. what happened? i believe china put themselves back in this process a felt it they were going to lose control of it between -- president trump and north korean leader kim jong-un, and they injected thelses and did two things i think. one, they eased up on the sanctions not well known but it's a fact with north korea. two, what they did is they supported kim jong-un's policy of a very phased process of -- denuclearization to take years to work details out of that and likely never give up all of the weapons entirely. i think so the administration has got to take stock of that and before we go back into head-to-head meeting let's get our diplomats working over period of week withs and months and iron out what process is and what differences are. >> one thing the president said

that caught my attention was that south korea and japan are ready to shoulder cost of u.s. operations it is such a situation is forced upon us. are south korea and japan going pay for our military action? >> well they pay likely not pay for a military operation. but they pay for us to be in those countries right now. 28,000 in south korea 40,000 in japan. yeah. so they'll continue to do that. thousand to some negotiations going on with south korea over this story right now. but yes they -- desperately want us there in fact the japanese i was there just a couple of weeks ago they were very concerned about thought that they would ever consider pulling our troops out of south korea they don't want that to happen. >> okay one last one, the president today addresses navy academy and it will be quite a show i think pretty sure he'll go offscript. >> yeah. you know it's such a positive experience to be there. there's a thousand cadets graduating. i mean there's graduations going over the united states thousands

of them in over a couple of months what's different about this they're walking out of that stadium and they have five years of military service in front of them and they're committed to that and should be honored for that. >> general a pleasure. i hope you have a great memorial day weekend. >> yes, sir. thank you very much. now i'm going to really switch gears and then some and talk about amazon what everybody is talking about. a couple says that the alexa recorded a private conversation and then just randomly sent it to a friend retail watcher burt is with us now. let me get my opinion in here first. i don't think hardly anybody will not buy an echo because of this. and hardly anybody who has one will mute the thing in other words, no impact on amazon at all no impact stuart as you said because they'll keep growing but the impact will be amazon will grow less is -- google and other competitors with products as capable and

better and to general king's point patriotism is what's winning onis line and in store memorial day weekend through veteran's day. in the retailers we're seeing worldwide that are patriotism whether it's wal-mart whether it's coming to the u.s. wholesale club amazon doesn't de-emphasize but it doesn't emphasize it and there's a real surge of patriotism in terms of where people are purchasing, what they're feeling good about, so they're feeling okay if amazon. they'll keep buying alexa. but the rate of increase won't be as great because people are are concerned about him. big brother and -- >> that's the resale creepy story i wouldn't touch with a ten foot pole. i don't anybody listening to any conversation that i have in any house. >> amazon's problem right now is that the alexa echo device is -- launched when you say the word alexa now it seems like it misinterprets its own trigger

word to turn it on. and so then it sends randomly to some couple or some guy business associate they were talking about hardwood floors how many instances like this are out there? >> it could have been a lot worse well said. >> it could get worse. we don't know, i mean, the distance. >> all of you aring right reenactment and 1984 it is big brother, it's amazon alexa a with with syria it is google. it's facebook. people don't want spying and companies with better ethics and better products are ultimately going to be introduced and they'll be the winners going forward in the future. >> all right you made your point. you're wrong. [laughter] okay. check the futures market. we're going to open at friday morning before long weekend where are we going is this we're going down not by much of the opening bell and bring you the latest on volcano and psych that is volcanic haze.

it's a mix of gas microscopic glass particlings and this is blowing it out. are we talking washington, d.c. or -- [laughter] to politics president obama says he's proud that there were no scandals under his presidency. really? the irs targeting scandal benghazi fast and furious just to name a couple to take that issue on in very shortly. >> yes i believe we are. and president trump tweeting i will be making the commencement address today at the united states naval economy in maryland looking forward to being with with greatest people on earth that is happening in the next hour. you will see it all. live here "varney & company" we'll be back. your company is constantly evolving.

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>> former president obama on wednesday seem to kind of joke to an audience in las vegas. about his presidency, and here's the, quote, i didn't have scandals which seems like it shouldn't be something to brag about but actually if you looking at the history of the modern presidency coming out of modern presidency without anybody going jail it's really good. a big deal joining us now is associate editor. >> how much time do i have can i take this to opening bell and closing bell? my goodness. look really listen we've got fast and furious which was a horrible scandal that happened under his watch -- weapons, purposely given to mexican drug cartel and then turned against a board ire security agent who we've got sadly a dead body in a scandal an, of course, cover and irs scandal, we've got remember salindra but possibly biggest scandal of the obama

administration is playing out right now before our eyes, but everything that we're learning about about spy gate that was all under this president's watch we're scratching the surface on that. exactly right we want to know what did he know and when did he know about it about the spies in the trump campaign. also one more thing to connect it that. let's not forget clinton e-mail scandal we tagged hillary clinton with that. that happened on president obama's watch and -- he was giving and receiving e-mails on that server but lied to american people an said he knew nothing about it so that's a huge scandal to duck any responsibility for. >> you wanted to go right up to opening bell and i'm sorry -- i've got to get this, i'm sure you saw this larry real clear politics as president trump approval rating at 44% that is the best level in over a year. that looks good for republicans and president into november doesn't it? >> first of all i think this is a lot to do with the economy and

a bit of a hiccup on wall street and first of all i blame new yorkers for that -- but tax cuts are really starting to hit home right now and people are feeling the benefits of it and another they think here at play and when you look at the noneconomic issues the two biggest issues important to americans right now is this with their government. even though the president heads up executive branch that plays into his narrative because he's dissatisfied with the government and he hammers that home the sending biggest issue noneconomic related immigration, and -- the president keeps hammering that issue as well. so the latest not only is this -- presidential approval number good but latest generic congressional poll valid for the 2018 midterm puts republicans as top who was right now by with about 4 points over a generic democrat so-so far so good for republicans. >> close it with this who would have thought couple of months ago -- >> especially the way the media is covering this presidency it is a bit of a miracle stuart. >> a miracle good one.

larry thanks so much see you again soon. thank you. now open the market in just a couple of minutes where are we down not huge 80 points for dow industrials now this. group of google employees and shareholders pushing plan to tie executive pay to diversity goals in other words hire more women and minorities than google execs get paid more. we're going to deal with that in one minute. it took guts to start my business. but as it grew bigger and bigger, it took a whole lot more. that's why i switched to the spark cash card from capital one. with it, i earn unlimited 2% cash back on everything i buy. everything. and that 2% cash back adds up to thousands of dollars each year... so i can keep growing my business in big leaps!

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>> now, momenting ago the president left the white house, he's on his way to inn indianapolis on his way out he said he addressed north korea summit he said we'll see what happens as to the summit. in other words, seems like he's leaving it open it was kind of noncommit comment. >> from blake berman in the middle it could be the 12th since president which was the original day. >> thanks so much indeed next case a group of google employee and shareholders pushing plan to tie executive pay to diversity goals. james freeman is with us wall street journal editorial guy. james what do you make -- the way i see it is this, you hire more women more minority and executives at google get more pay.

what do you say? >> they have to ask themselves do they want to change from pursuing the world's greatest technology to -- pursuing social goals and their concept of social justice and i guess maybe someone has in mind that particular ratio. google like all companies in silicon valley does skew male, white, and asian. this is something that a lot of these companies have wanted to change. and i think you have to ask yourself why is it not changed and then that gets into questions, obviously, people have gotten into trouble asking google discussing these sorts of issues but i would point to google's neighbor facebook. cheryl sandburg who wrote lean in as i think been a senior executive there who as much as anyone in america has really tried to address this issue. and yet you look at their numbers are very similar to google, very similar to other leaders in that space. it's still skews overwhelmingly

male and largely white and asian so i think -- there are issues here but you're talking about -- a company worth 750 billion that leads the world many this technology and there's something at risk if you say instead of economic or technological goal you have political ones. >> in favor of political almost favoritism if you want to put it like that i think you might have a problem with long run performance for the company sorry i'm out of time i have to get to this because we're almosted a opening bell we're going open very shortly four and a half minutes looking at this we've got back a bit we were down 80 points a few minutes ago and then the president said something about maybe june 12th summit not out of the question. but come back a bit now we're down 50. we'll be back. it's time for the semi-annual sale

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>> with the president -- we would like to do it we're going it see what happens. what i think about it. john everybody plays games pup you know that, you know that better than anybody. not familiar with the case but that's really too bad. >> noters korea. doing great right there. just looking at us right there. [inaudible conversations]

>> i believe the president was talking about melania doing great. doing great had a go at the media and he said everybody plays games you should know about that and he did mention north korea and summit we'll see what happens. so the president right, 9:30 eastern time on a friday morning on opening bell has rung. we're off, we're running trading day has begun. and where are we i believe we're down about 50 points in the very early going. yes there we are. down 53 as we speak. just a few seconds into the trade aring day. that's down about a quarter percent. the s&p 500 same story i think,down a little less than that down .19 pblght and nasdaq where's that this morning it is down only a fraction. vir chummily no change for the nasdaq in stocks. quick check of amazon yield on tenure treasury all the way down to 294. now show me amazon there's a couple in oregon.

that's iowa elex is a recorded in a private conversation and that conversation was then randomly sent it a friend the privacy issue at large no impact on the stock. 1604 this mortgage we'll be back to that in a second. gas price up before memorial day weekend 2.96 is national average and plus d.c. where it is $3 a gallon. back to that treasury yield it is 2.94 as we speak big deal. friday morning, elizabeth macdonald ashley webster jeff seeger and james freeman all with us today. the price of oil way down. that's making news in the marketplace today because it is back to 68 a barrel. jeff seeger is that a negative for stocks? well you know here's what's happening with with oil and generally you know everybody is looking at gasoline prices rising as much as they did. gasoline prices tend to lag oil prices -- oil prices have been moving up but we are beginning to see that president trump's pressure on

opec saying that they need to increase supply and having -- its effect and oil prices moving down. we may get gasoline prices mooing down. chevron and exxon are dragging on the dow. so that's the -- okay. so if it wasn't for chevron and exxon maybe have a flat market down 29 now here's a very fascinating story. netflix is giving disney a run for its money as the world's largest door most valuable media company. that's extraordinary, james. >> it is cooling from from where in space of a few years now more valuable than disney. ting gives you a sense of how this is still largely open competitive market where this is a company that did not have sphrur or own a traditional studio. and yet by just making a good customer experience, it has become bigger than any customer by far, and done more valuable than a lot of traiment.

>> it rents it. billion dollars year on content surely that's ownership isn't it? >> leased it. but -- make a difference in the stock? >> well debt swamping their share equity value here's the market, it doesn't care. netflix has a fraction of disney's profits so this is also story about about disney going along. right? >> it's a story about future growth potential. netflix is a global marketplace to take advantage of. but also a momentum story for netflix. doesn't have its streaming service does it? >> that's what i'm saying what's going on? >> oh, my god. we have continually they do own a lot of their own content and continually expressed amazement that netflix stocks keep going up. >> they leased it. they licensed it. >> sort this one out but i'm told they own a chunk of their own content.

they rent it. i've been a fan of netflix for quite a while with as you know you i'm not a fan of anything but that stock when apple should have bought them but reality is you have a game of saga playing out with king of streaming content and king of content i think disney continues to amaze me but so does netflix and disney will give netflix a serious run for the money in streaming. >> you be, netflix is so important that even serge likes it. >> i try to think what's beginning on? because nobody like it is years ago. and i did. most of its content is original content which they own. i'm informed my producer -- anyway we'll sort it out but stock is at 350 and who thought that would happen. but amazon i'll repeat the story alexa recorded a private kftion that was recorded and sent randomly to a friend look we have to discuss privacy here and

the stock and the company i don't think -- james freeman i don't think many people refuse to buy an egg eco i don't many people who have got it already will unplug it or mute it. i don't think there's any impact on the stock at all. where am i wrong? >> i think you're right there may be some unease. i think people may think it is creepy but just as we keep a sharing -- things with facebook, and we're seeing now in europe with these privacy regulations when it is beginning to cost consumers if you put lots of limits on company ability to use your data but i think even if it feels weirds and creepy if it makes our lives easier i agree people will get over it and use this technology. >> that's right. millions people using a alexa this story seems fishy me to that this happened knowing it as well as i i know so you can program it to not listen it and not that artificial

intelligence. >> but it has to listen. >> to hear you it has to be listening. >> yeah. yeah. [laughter] >> i mean, i find the whole thing creepy i don't think about listening and certainly not recording any conversation that i of had in my own house ever. ever -- >> sorry about that. sorry sending to whoever you're talking about. where are we on this market we've got oil is our little bug on the bottom rngd corner of the screen so i don't know what is going on not exactly a selloff. facebook new european privacy regulations go into effect. as of now -- no efnght on the stock kind of a stock 185 on that one. ross stores are weak outlook you do that. down you go 5% lower on ross stores. shoe carnival. i don't know him personally never bought shoes -- [inaudible conversations] get a rosy forecast that works 16%. the maker of uggs that will be

deckers. the same story a rosy outlook up they go 4% higher at 108 i'm sorry higher profit. at the ugg maker decker outdoor. gap -- oh. swimming in unsold inventory it is discounting to get rid of it and that's hurting the stock i believe yes it really is. it is down 9% so jeff are you going to pick this up as bargain? >> gaap failed to realize that yoga pants could overtake jeans i have not gotten in with that trend as you have, about but i'll not be wearing yoga pants on your show but reality is they haven't gotten with the trentd and they have a lot of inventory but you know what they have another brand. they have a brand called @let ka that is getting into that trend and i think they're going to pick it up but discounting the nail of the game today. and they don't, let me break

away harvey weinstein arraign ad on rape charges as we spook. the lawyer just to the left and one right there this is in court that is the arraignment. he's being arraigned on rape charmings happening right now. i'll tell you ladies and gentlemen in new york city, it was an absolute circus when he is, went into the police station and came out in hand cuffs he was surrounded by photographers and then entered the courtroom i think pretty much the same story all over again that's the live arraignment of harvey weinstein is on rape charges anybody want to comment on this. i don't see any financial angle it is a cultural thing. but -- he did have a huge media empire a valuable media empire which i believe is concern file for bankruptcy. thank you ashley. you should finish any sentences all of the time. >> i thought you were looking at me. searchingly -- >> it's a remarkable moment in

the history of the film industry what you're looking at right now. a titan brought very, very low. that's the story at the moment. all right, we'll hold with this for a second and check the big board this -- what you're seeing on your screen that is not a financial story, obviously. this is. it's the day before a long holiday weekend and we're down 730 points on the dow industrials and look that the bottom rngd corner of the screen the price of oil is down near $2 per barrel. okay we spent a lot of time on amazon weinstein, and facebook this morning. but it is time to say good-bye to our guest jeff seeger and james freeing man. yoga pant that went really fast. that really went fast. okay. what do you got justin -- we want to go back to weinstein hearing for a hear what's being said.

this morning the agreement and attorney office a voluntarily surrendered to the first precinct of bail and hopefully to avoid any controversy this morning but provided with a task force to the district attorney office and wanted to do so on the record. in the clerk of the court this morning a check for a million dollars to cash this check -- in addition here of they have

monitoring for the state of new york and the state of connecticut and order a protection. i would also indicate that we have also agreed to -- sign a waiver in event that in connecticut and required to appear in new york so voluntarily he will not require district attorney office to expedite and waived extradition of dividing the district attorney's office with the copy -- [inaudible conversations] >> this extradition your honor, indicates that the defendant agreed to waive -- any state or country should be required. it is signed by defendant and about counsel with copy.

>> anything else? >> if we were to require besides new york state or connecticut that he would have to do so on consent to attorney office or with the court's approval. there's nothing else your honor, that we've agreed to gps monitoring the person who is comes to the park with the actual piece of hardware is a couple of minutes ago that he's few minutes away. >> we understand that we have to process -- so hopefully persons here will happen at the same time. and -- >> can i ask that defendant step up here in the interim -- >> i believe that's -- more of a security -- i don't have objection. one issue i serve what i noted -- is correct and that wednesday is

the day in light of the fact that the issue concerning additional information we were going to file -- i assume issue is resolved but the complaint to alert and notify burton as well who i understand -- [inaudible conversations] >> thank you. thank you very much. >> be adjourned out july 30th. all right 10,000 sorry 10 million dollars -- 10 million dollars -- [inaudible conversations] one million dollars cash passport is extradition agreement and defending the last ew

rested at the new york city police department. he emerged in handcuffs ten milh one million has to be fade this cash so he's out on this bail. he can go to connecticut and new york and that's it. he comes back to court july the 30th. that's the case of harvey weinstein as you saw it unravel not implying that for one moment with dow industrials down -- 84 points as we speak other story of the day the price of oil tumbling we're down it nearly $2 a barrel 68 per barrel. house minority leader nancy pelosi slamming president trump over north korea. roll that tape. i think it as good thing for kim jong-un he's the big winner and got this letter from the president saying okay nevermind he must be having a giggle fit right there. now, and north korea, and -- >> you heard it right there here

is president trump's response. and i'm quoting now, democrats are so, obviously, rooting against us in negotiations with north korea. just like they're coming to the defensive ms13 thugs saying they're individuals or must be asking to end your big tax cuts and raise your taxes instead they have lost touch. joining us washington times opinion editor charles now i knew you would be smiling. i knew you would. now what are you smiling at with nancy pelosi or trump's response? >> no. nancy pelosi is -- comments are absolutely ridiculous. but donald trump as always has a way of words he knows how to make his argument and he does it always does it colorfully and it's pretty hilarious. >> how do you think look how do you think this goes down with voters? i think that was a very frivolous response from nancy pelosi, and -- it really was. now how does that go down with vote centers >> well, you know i do think that --

that donald trump has a very good point about democrats having lost touch. the fact that nancy pelosi or -- just take her out of it the fact that -- the part, the legitimate legitimate part in this country is held by somebody who would say things as rediagnostic louse as things that nancy pelosi says -- speak to how much the country is many. she's lost it there was a time when -- you know, disagreements that were ended at the nation shores never would have had somebody like this making ridiculous comments about a sworn -- let to this country to keep debates behind closed doors but it's a different time now and he's people they see politics neferg and all she wants to do is -- figure out how to widen majority

to then turnaround to punish her political enemies. >> i just -- i'm working on breaking news i'm going to bring it to our audience in a moment meanwhile i take it you saw improvement in the approval rating up to 44% best in over a year your comment. >> i'm not surprised and i think as we go on -- and if the economy continues to improve, i think that you'll see those numbers pick up higher and getting into adding a little swawbl like this with people like nancy pelosi saying stupid things like that only stands to his standing and it make him look like the adult in the room and i know a lot of peel on the other side cannot believe they would accept the donald trump in the room but compared to nancy pelosi, and some of things that we're hearing chuck schumer say recently -- he starts to look more and more like the adult in the room. >> okay. charles i do now have that breaking news to it say good-bye to you and thank you as always

for being with us have a great weekend young man mow we have news on a possible deal between president trump and china on zte the chinese phone maker. remarkable when it comes to white house cor spongt apparently a deal has now been -- sorted out attentive deal between us and chinese president xi and president trump got a call from king asking the president for a favor he said that tens of thousands people would lose jobs u.s. continued to zte. a lot of a those jobs we're told were in the chinese president hometown so what will it take? he said look we'll pay a fine of $500 million and change out management of the company trump said no, 1.5 billion fine and we want management swap to security guarantee, and that they'll buy the guarantee zte buy a large parts of what it's through u.s. companies.

eventually they went become and forth came up with a fine of 1 mt. 3 billion and that's the the deal said yes. that is the deal. it was really quite remarkable according to john roberts our white house guy fox news. for the back and forth real time deal. negotiations -- that's what it is. making in the extreme. >> all right excellent goods stuff and thank you very much indeed. the fda -- warning parents don't use that popular teething medication or several of them and others they say don't use it your child's life could depend on it strong stuff. doc siegel has details after this. how do you win at business? stay at laquinta. where we're changing with contemporary make-overs. then, use the ultimate power handshake, the upper hander with a double palm grab. who has the upper hand now? start winning today. book now at lq.com.

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>> the government says there are only risks and no benefits for a common pain painkiller used for teething toddlers. doc siegel with us first of all i understand it they've told them get oragel off the shelves. this is a big warning and they've looked at this before 2006, 2014 get this off the shelves 119 cases of kids getting sick. what's the problem stuart you asked, the president is that chemical called benzocaine in other products that you put on your gums to get rid of pain and

they have adult versions too. that stuff can actually interfere with oxygen binding in the blood. that lead to rapid heart rate and shortness of breath and could kill you actually four kid have died. so by the way, the american academy of pediatric says sthig else it doesn't work. the stuff last seconds so we're talking about a placebo how about rub your baby's gums pat them on the head with your fingers. >> i have to be honest to you. how about a binky have you ever wanted a binky? excuse me. wring wh my kids were young i know this 34 years ago, occasion we would dip one of those what's what they called -- pacifier -- no -- teething ring. you dip a q-tip into some alcohol and then apply it to where the tooth is hurting the child am i -- a terrible parents for admitting that 34 years ago but you know what doc it worked. children turned out great absolutely. >> they have all for that.

this was ridiculous and this is one of the thing where is something keeps getting markets where they're buying it and it doesn't have have a medical integrity and i'm all for this and fda is on it and they have to comply one company -- dwight company removed several products from the market manufactures have said they're they're going to comply this can force them to comply by the way. >> it is gone. thank you very much indeed doctor fascinating story of a everybody is talking about this this morning. >> babies are safer because of this. >> we've bot it. nancy pelosi she said kim jong-un had a giggle fit after trump canceled the no coast summit. she says kim jong-un won, our editorialize about that. can't wait, after this. to retir. and a little nervous. but not so much about what market volatility may do to their retirement savings.

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trump, he will speak at the united states naval academy graduation. we'll bring it to you the moment he takes that podium. as of the markets right now we are down, but only 55 points. that is ahead of a long holiday weekend. almost exactly 24 hours ago the news broke that president trump had called off the summit with kim jong-un. within minutes nancy pelosi reacted. she said kim would have a giggle fit. that he had won. that the president didn't know what he was doing. what can you say about such a frivolous series of statements? start with this. there is no giggling in north korea. kim jong-un is in a box facing crushing sanctions and he knows it. the nokos are saying they're still willing to meet. mr. pelosi said president trump was unprepared. here we see the danger of making unscripted frivolous statements about very important issues.

turns out the trump team was very prepared. our diplomats had been going, doing the groundwork for the summit but about a week ago the nokos stopped returning calls. they broke off all contact. miss pelosi, we were prepared. shortly after her comments secretary of state mike pompeo was appearing before a senate panel. democrat senator tom udall used the occasion to imply president trump would benefit personally from his foreign policy. pompeo barely suppressing his anger called the implication scurrilous. so it was. even with such a serious subject the left will try to drag our president through the dirt. no matter what. seems like the democrats want to go back to the obama foreign policy of apologize and retreat. is that what nancy pelosi wants? does she think that is her path to the speaker's role again? like her crumbs comment, miss

pelosi has misread voters. she must believe that all of america is like the coastal elites she represents in san francisco. it's not. america surely wants an economy that grows and foreign policy that puts america first. a president who is tough and a president who knows how to negotiate. maybe that's why his approval rating, president trump's rate something now at its best level in a year. the second hour of "varney & company" is about to begin. ♪ stuart: president trump is close to the podium. they are now playing "hail to the chief." in about 20 minutes he will be at that podium. he will be speaking. the annapolis naval academy graduation, we'll take you there. 20 minutes from now you will see the president. it is michigan consumer sentiment survey.

ashley: how people are feeling. final number came in at 98, a little less than what was expected. it was 98.8 for the month of april. just down a little bit. we can still say pretty solid. people happy with the job front. they are hike to see higher wages. they also believe inphrase will tick up a little bit. overall it is a solid number. stuart: market is still down. 53 points down for the dow. big technology companies, you always pay attention to them. most of them are up except microsoft. facebook, amazon, apple, alphabet all up. microsoft is down. i believe we're going to take a shot of harvey weinstein as he emerges from his arraignment. have we got that now? go to it please. we'll see harvey weinstein emerging. i see branfman. there you go. >> i'm going to make a brief statement. i'm going to distribute a brief press statement in writing as

well, which hopefully you will share. and i may take just a couple of questions. mr. weinstein intends to enter a plea of not guilty. we intend to seek -- [inaudible conversations] [sirens] i'm going to make a brief statement. i'm going to distribute a brief written statement and i may take a few questions. mr. weinstein will enter a plea of not guilty. we intend to move very quickly to dismiss these charges. we believe that they are constitutionally flawed.

we believe that they are not factually-supported by the evidence and we believe that at the end of the process mr. weinstein will be exonerated. someone inside asked me how mr. weinstein feels this morning? and my response was, as well as can be expected when you are accused after crime you vehemently deny having committed. so we are going through the process. today is the first step. we knew that mr. weinstein was under investigation for more than seven months. he voluntarily surrendered this morning and which have met all of the bail conditions by agreement so that we would not have extended court proceedings. we have a right to revisit any issue in this case later in the event than an indictment is returned and i anticipate that this case will ultimately be resolved favorably as to

mr. weinstein. i'm going to take just one or two questions. [shouting questions] >> what are the -- >> okay. stuart: as you may have heard there from that, that is harvey weinstein's lawyer. they intend to plead not guilty but do remember, please, that harvey weinstein still faces potential charges from the los angeles police department and police forces in london. he is going to be released on $10 million bond. one million has to be deposited in cash. he can go to connecticut, he can go to new york, but no place else. tammy bruce is with me. i've been following this case all the way through. you've seen it unfold today. he is pleading not guilty. your assessment, please. >> they will want to negotiate. i don't see this going to trial at all. this is difference between the court of public opinion and now within the legal system. the difference between obviously some things are civil cases and boarish behavior versus criminal acts. so he has been charged with

charges of rape, committing a criminal sex act, sexual abuse and sexual misconduct. legal problems for him and this is now, hopefully, for the victims, certainly after years, for two women, get being some justice but also for mr. weinstein, being able to go to court and deny these things but at the same time clearly i don't think mr. weinstein is going to want a trial. i think this, there will be some kind of a plea agreement but at the same time as we know also, los angeles and london are looking at charges with different women as well. this is a long road ahead for mr. weinstein but hopefully for the victims getting some kind of justice, brafman, his lawyer, said all the encounters were consensual. >> of course. this is what, argument about what certain people, all industries have thought was consensual. and even the education of the fact that because you're in a work place, because you think you've got some kind of hold on them, that the decisions women

make out of fear and based on economic fear and threat, of what they feel they had to do or must do is still not consent. so this is now going to be discussed publicly about what women can reasonably consent to and what men also think in their own heads is consent when it never really happened. liz: more than six dozen women coming forward with accusations against harvey weinstein. that is a large number of women. >> obviously a pattern. stuart: my bottom line, this will go on for years, and years and years. liz: they may end up with federal stalking charges. >> money is the key. he expects to handle this the same way in london and los angeles. if he runs out of money. obviously looking at a million dollars in cash. 10 million-dollar bond. the company has gone bankrupt. the issue how much money does harvey weinstein have and how much longer can holed out. stuart: i will move on, as we've been watching this harvey

weinstein thing unfold on live television, you saw it right here. moving on, 17 states, now remember, please, this is the beginning of the memorial day weekend, 17 states and washington, d.c., have average price of gas of $3. greg val lair with us from horizon investments. welcome to the show, greg, good to see you again. >> hi, stuart. stuart: $3 gas. the rest of us are paying $2.96. do you think that will have a real drag on the economy, a drag on spending? >> no, i don't, stuart, good morning. number one, we've seen the price of oil drop dramatically in last 24 hours that will show up in june and july. fed made it clear, such a busy week, the fed said they could let inflation run a little higher. they want to see growth stronger. i don't see this having really negative impact on interest rates. stuart: i want to move on to what fox news john robert has been reporting.

he says there is a deal between president trump and china on zte. the chinese company, zte, would pay a fine of approximately $1.3 billion, and that would create a deal between china and president trump. doesn't sound like a trade war, does it? >> no, it doesn't. i'm not sure we can signal all clear because i think trump's angry with china for maybe poisoning the well with north korea in the last couple of weeks. this is very constructive story. one of the few market irritants has been trade. i still worry about autos. i think they're incoherent on autos. if we have a deal with china ace very positive story. stuart: what surprises me all this stuff about north korea and china trade and iran and the nuke deal. it has not had a profound impact on the stock market. >> yeah. stuart: we're still what, close to 25,000 on the dow.

>> isn't that amazing? i tell every one i see, all the clients i see, the big story, is the fundamentals. gdp getting stronger. corporate earnings looking good. the fed being pretty steady. the fundamentals are still good. the only little change in the last 48 hours is, when there is big uncertainty, there is a move towards fixed income. so the 10-year yield has dropped below 3% but the fundamentals to me still dominate the markets. stuart: do you see better than 3 1/2% growth this year? do you see profit growth of what, 15% in the second quarter of the year? is it going to be that good? >> i think by labor day, stuart, we'll be above 3% growth. the unemployment rate will be down to around 3 1/2%. so every one who is saying there is going to be a wave election, the democrats will win both houses, way too premature to make that call because the economy is about to accelerate. stuart: extraordinary stuff. greg valliere, thank you for getting right at it. we appreciate it.

coming up president trump now says there is a chance a chance, that the june 12th summit for north korea could still happen. we're all over that one obviously. president obama says there were no scandals during his presidency. ashley: you sure. stuart: we can think of a few. we'll tell them to you. president trump will speak to navy graduates. do you think he will stick to the script in this speech? all odds are against it. second hour of "varney & company" is about to begin. ♪

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fraction. we're off 25 points for the dow. fiat chrysler recalling 4.8 million vehicles. they have to upgrade the software power train control. if you don't fix it, drivers could not some of them, could not turn off the crews control. one incident reported. no injuries. affected vehicles, dodge ram pickup, chief cherokees and dodge durango. the stock is down. gap, the stock is down huge off 12%. same-store sales actually fell. so has the stock. it is down 12%. 28 bucks a share from the gap. moments from now the president trump delivers commencement address at naval academy in annapolis. we have retired admiral robert matter. welcome to the show. >> good morning, good to see you. stuart: i understand the navy is significantly depleted, certainly underfunded for many, many years. is it capable of taking on the mission, if required, on north korea.

>> yes. is a short answer. we are depleted. all the services are. but the budget is looking positive. we need to get away from this sequestration business. continuing resolutions business. the congress has got to get a handle on appropriately funding on regular basis our defense budgets. stuart: it is going to take years, isn't it, so get the navy to where you and others in the military would like it to be? >> that's correct, yes, it will. stuart: can i, just wanted to ask you about the ability of our navy. can our ships shoot down a north korean rocket if one were launched and we wanted to shoot it down, could we be absolutely certain we could knock it out of the sky? >> well the united states of america can do that. it would include ships. it would include land-based systems it, would include radars and it would include air force systems all working together to accomplish that. stuart: what does the navy, what does the navy need most now?

>> well, we need stable funding, first of all. we haven't had it really in 10 years. and it, the problem, and effect of that is when the congress appropriates a dollar with irregular funding, we end up as taxpayers getting value of 80 cents, if that, on that dollar. it is a, stupid, and b, really counterproductive to spending of our taxpayers. i just want to ask you about the speech, which president trump is about to deliver. to the naval academy. we expect him to go off script. what do you think. could he put on a show for us? >> well, i'm not going to predict what the president is going to say at the commencement. i haven't seen the speech i i will let you conjecture on that. stuart: he loves it. he is a natural-born entertainer. i can't imagine he would not walk away from an opportunity to

entertain the naval graduates and rest of the country at the same time. he will be entertaining, isn't he? >> i think he will be. he will have the rapt attention of our future navy and marine corps officers for joining the fleet, marine fleet. most of them want to get to their next assignments. stuart: how many years ago did you graduate annapolis. >> too long. stuart: we thank you for your service. we thank you for being on the show, admiral. >> i would like to wish every one a happy memorial day. stuart: thank you, admiral. we appreciate that. what do you make of those comments, tammy? >> you know, i'll tell you, on a weekend like this, especially here in new york with fleet week to see these young men and women to have this kind of generational commitment to the country. that we're still delivering these kinds of people to save this nation, it is, heart-warming, it is beautiful. it's a wonderful time. stuart: if you walk around the

streets of new york city at the moment, it is flooded with sailors. >> in the classic sailor suit. thank goodness we have not changed that. i don't want to say adorable but it is adorable. and they fight for freedom and save our lives. so we have the great combination. it is a lovely time to be in new york. stuart: now, more from you on this one. president trump, he is tweeting again this morning. i'll show it to you right now. ashley: no? stuart: democrats are so obviously rooting against us in her negotiations with north korea just like they're coming to the defense of ms-13 thugs, saying they are individuals and must be nurtured, to end your big tax cuts and raise your taxes instead. dems have lost touch. he is on the attack, isn't he? >> this is a time when i love twitter expanded 140 character rule so we get these great statements. i'm working on a column at foxnews.com, power of trump, a 70-year-old man using this kind of technology to control the narrative.

and he is winning at it. in that kind of a statement it, he is absolutely right. this is what is shocking, but not really personal. it is not about trump versus pelosi. it is about the democrat party what they have become. coddling ms-13, supporting hamas but wanting us to lose versus donald trump, the conservative ideal, really, working, governing, negotiating, improving people's lives, looking to the future, knowing what is important for this country. distinct exam -- examples describe in 200 characters of the americans understand it. stuart: you have come a long way since you headed the n.o.w. chapter in los angeles. >> my principles are the same. improve the quality of people's lives. it was matter of noting what tactic, what policies really worked, what really matters to the american people. look, i was young. now i'm young plus a few other extra years. and it's been good trajectory.

it is the american trajectory. we really do want individuals to live better lives. we know the american government is the government to be able to do it, but it must be small, it must be liberty with personal responsibility. stuart: welcome aboard, tammy. lizzie, what you got? liz: interesting if his tweets are effective. when you saw the cbs recent poll said a slim majority of americans feel the mueller probe is now political, that was a striking turning point. you know with nancy pelosi yesterday politicizing the summit talks over north korea, north korea has capability of a nuclear missile that could hit her home district, for her to be frivolous at that point in time with breathtakingly unserious, what is her gameplan? drive trump's approval ratings down to the 20% level which she hasn't done, in order to make history by being house speaker yet again. to tammy's point they're not

doing policy they're not negotiating. they're not governing. they're stuck in their positions. >> his tweets will always anger his opponents which is great. it will absolutely elate his base. so they win on both fronts. as for nancy pelosi, you know, doug schoen, our often guest on here, the democrat as he calls himself, moderate democrat, nancy pelosi continues to pull this party far to the least. and he said, and lizzie said this for many years, the democrat party of today has no resemblance to how it was a number of years ago. the kennedy democratic party. and you know, long may nancy pelosi, as far as the gop is concerned continue to make these comments. stuart: who would have thought that a president who is now 71 years old, would reinvent the use of technology to the, to the plus of the presidency? he uses twitter in the way nobody has used before. ashley: he goes over the head of the media. talks directly to the people. stuart: directly to the united states of america.

right over the heads of a very hostile media. his message gets across. as we say his approval rating hit highest in more than a year, 44%. >> when we first began, he first became president, we talked about whether or not he should stop twitter. that was a major complaint. my point from the beginning, they wanted him to stop using it because it is effective. because it changes the narrative. he is in control with the push of a button. that is what has frightened the establishment and every one who just simply likes going through their reporter friends, mueller as an example, while they're not using twitter, you notice like with rudy giuliani, suddenly there were rumors in the media either drinking or mental health. seemed like with the president. and that is the thing that they have relied on, moving gossip and rumor through friendly reporters. the benefit of the transparency of twitter it is from the president. liz: it is real time. >> exactly in the moment.

stuart: ash. ashley: tammy reminded me, do you remember when he went into the oval as, who will be able to rein in the president, get that phone away from him in the overnight hours. they gave up. you know what? it has been, very, very effective. you may not always like what he is saying, certainly his opponents don't, to your point, stu he speaks directly to the people. it has been remarkably powerful. liz: on balance is there a plus for the president? that is the debate. his tweets have been unsafe at any speed. some of his tweets shown up in court. muslim travel ban, that is what it as characterized at and bowe bergdahl case. getting back to nancy pelosi and chuck schumer going after the president yesterday, they have been in office since the reagan administration. to get north korea get a nuke on their watch, how long they have been in office, on their watch this happened. stuart: admiral, are you still there, admiral? >> i sure am. thanks for staying with us, admiral the we appreciate that.

>> very good conversation to listen to. stuart: i'm glad to hear that. do you think that president trump should abandon his twitter account? >> the short answer is no but i would clean it up a bit. stuart: really? why? >> yeah. i think that points are correct, it has been an opportunity for him to go directly to the people. think that has been very positive. it helped him get elected by the way, but i think some of the comments are a little bit over the top, in my personal opinion. but that is not important. stuart: before the president speaks, i just wan to point out where the markets are at this moment. we're virtually dead flat for the dow industrials. at this point we're down a mere 14 points. actually coming back significantly. i will call it dead flat. the price of oil, that is the market that is really moving this morning. it is down $2.23 per barrel.

the saudi arabians and russians are making noises expanding production again. if you don't have a glut on the market you certainly increase supply. a long time since we've down 3% plus. ashley: counteracts what we're hearing from venezuela and iran, pushes prices up. with the saudis and russians saying this, there you go. stuart: i don't think price of oil is having much enext on the stock market. every one is aware three-day weekend is coming. trading is slowing down. you don't make major nerves ahead after weekend because you don't know what will happen. ashley: latest news on north korea given renewed hope. stuart: one more issue i want to deal with tammy bruce about, that is president obama. former president obama has said he was addressing an audience in las vegas, and he said in his eight years in office they didn't have a scandal. deliberately quoting here, i

didn't have scandals which should be something you should brag about. no scandals. >> you know what this highlights, his world wrapping around what media says as opposed to real life. every time in his administration, it was about winning the news cycle. it was about reporters was saying, what the public is saying. now he has the big netflix deal of course, always still, he will fit perfectly, because it is about image, television and moments in time versus real people's lives and real policy. so for him of course it seems like there is no scandals because his media, the legacy media protected him, did not report at length about him being responsible and dealing with things like "fast & furious" and benghazi. hillary clinton's email scandal. the debacle of libya. the red line he wouldn't reinforce. to say nothing about obamacare, they bragged, his assistants certainly did, they had no idea what it would do to the economy but looked at the polls, so that

is what they said. that is a scandal. we know that they exist based on public media. we can discuss these things. but barack obama still wants to believe that it's what television says is what's true. the american people know what happens in our daily lives is what matters. that is real life. stuart: you know, i don't hear many people, democrats included, who say, wish we could get back to the good ol' days of the obama years. i don't hear that. i'm not being facetious or sarcastic. ashley: hating trump. liz: we had seven straight quarters of gdp growth at double last year of the obama white house. you know, here's the other thing, i counted 15 scandals on obama's watch. including one of the biggest of all, the russian meddling into the election and now the alleged spies informing on trump campaign. stuart: that is unfolding as we speak. liz: that's what i'm saying. stuart: what did president obama know, when did know it about the spy or spies plural that were in

the trump campaign? liz: right. stuart: if they were placed there on national security ground he had to have known the you can't bug or whatever it is you call it another presidential campaign -- ashley: surveil. stuart: surveil it, you can't do that unless the top guy knows about it. liz: where is the indictment of russian hack into the dnc email server? we haven't seen that yet. to your point the president tweeted out earlier in the week, if there was collusion, why didn't that informant effectively was saying leak it? stuart: very good question. if there was collusion, why didn't we know about it? why didn't the informant say about it? ashley: fair point. stuart: we're almost dead flat. we might just go positive on the dow. we're down, okay, we bounced off no change. now we're down five. i will call this dead flat in advance of the three-day weekend. the price of oil dropped some more. we're down $2.28 per per barrel.

we've been holding that shot for 30 minutes. any moment now president trump will address the graduates of the annapolis naval academy. we don't know what they will say. maybe prepared remarks were released beforehand, i don't know. we're hoping that he goes off script. we're hoping he will be entertaining, in front of an audience like that, i can't imagine he will walk away without entertaining to some degree. this is the kind of audience he loves. feeds on their response. we'll carry live everything our president says. what else you got? you looking at me like you got something? liz: no, he, i will help you out, stretching. what he does too, he really -- i don't know in our lifetime if we've seen a president connect so rapidly and in such an intimate with who he is speaking with. and watch him say, we will take care of you, when you come into the military service, we will try to take care of you with better pay, with better benefits

and the like. >> better equipment. liz: better equipment. stuart: the gentleman addressing the crowd now, thomas mooddy, the undersecretary of state for the navy. he has been going on quite a long time, holding up the president of the united states. ashley: get off. stuart: we're waiting for the president. we're looking at mr. moody but we'll not listen to him. we're waiting for the president. >> if i could add too, watch for the president, he will know that the world is watching this speech including china and north korea. ashley: good point. >> so you're going to have certainly the regular trump speech of, in front of the great sea of our great men and women there, but it is also going to be a message. remember part of the letter to kim jong-un, boy, we could really obliterate you if we wanted to but i hope we don't have to do it. that will be reinforced. power of american military, how we would likely use it to make some of these negotiations move further along. stuart: north koreans are plugged in. >> they're watching this right now. ashley: of course they are. stuart: when the president of

the united states who they just had a dispute with, is about to address a military audience, i can't believe they're not watching. here is the president of the united states. here we go. [applause] >> thank you. [applause] hello, midshipmen, hello. [cheering] great going. let me say that, to the entire brigade, please be at ease, enjoy yourselves because we are all here to celebrate the amazing class of 2018, amazing

job. thank you. [applause] really something. admiral carter, thank you for that wonderful introduction and for your leadership and the incredible job you've done at this storied academy. and thank you, captain chadwick, for your dedication and service. thank you to undersecretary modley, admiral richardson, general walters, for joining us today. thanks also to senator wicker, congressman whitman, and congressman valedo. i want to recognize the entire brigade for a tremendous year. this has been a spectacular year for you. i've heard all about your achievements. and a very special recognition for the midshipmen, fourth

class, you are plebes no more. [cheers and applause] to all of the distinguished faculty and staff, to the local sponsor families, and most importantly, to the parents and grandparents and family members who have helped our graduates reach this joyous hour, today is your incredible achievement also. they would have never made it without you, you know that. so i want to thank our midshipmen. i want to thank your families and thank you, america thanks you more than anybody. you have done a spectacular job. thank you very much. [applause] finally to the men and women about to be commissioned as

ensigns in the navy, and second lieutenants in the marine corps, let me say on behalf of the entire nation we could not be more proud of the united states naval academy class of 2018. thank you. [applause] great job. congratulations to you all. four years ago each of you made the most important decision of your lives, you chose the path of hard work, sweat, and sacrifice. you chose the life of honor, courage and commitment. you chose it serve the nation and defend our great american flag. you chose the navy, blue and gold, from the first moments of induction day through a grueling six weeks of plebe summer, you

endured and you persevered and then the rest of the brigade returned and the real test began. you developed morally, mentally and physically. you poured yourselves into military tactics, seamanship, navigation, ethics and engineering. and when hard work wasn't enough like generations before you, you gathered your pennies and sought favor from the all powerful tacumsha. [cheering] all powerful. a little bit different. others worked hard for their

demerits at mcgarvey's and the fleet reserve club. [cheering] and so today, in keeping with the tradition, i declare that all midshipmen on restriction for minor offenses, you are hereby absolved. [cheers and applause] that sounds like a lot of people. the admiral will define exactly what that means. admiral, please go easy, please. please go easy. a great group of people here, admiral. i'm told that this class led navy athletics to the highest win percentage in your 172 year

history. think of that. [applause] that includes taking the army my-navy, fourth straight year, a remarkable achievement in sport and athletics, remarkable. and because you care about every contest against army, for the record, this year navy beat army 19 times. i will not mention, i promised, who won the football game. i will not mention. i won't men's it, admiral. refuse to say it. [laughter]. but that's a great achievement. let me take a guess. you're still not tired of winning? winning is such a great feeling. isn't it a great feeling, winning? winning, a great feeling.

[applause] nothing like winning. you got to win. in ever endeavor the class of 2018 has shown its metal and it's proved its might. you earned your place in that ancient league of sailors and shipmates, captains and commanders, warriors and mariners and marines. you crave adventure -- hello, folks, back there. you chased discovery, and you never flinch in the eye of a raging storm. america is in your heart the ocean is in your soul, the saltwater runs through your veins. you live your life according to the final law of the navy. the word impossible does not exist.

because navy never quits. [cheers and applause] you don't give up, you don't give in, you don't back down, and you never surrender. wherever you go, wherever you serve, wherever your mission takes you, you only have one word in mind, and that's victory. it is why you're here. victory. very important word. you are now leaders in the most powerful and righteous force on the face of the planet, the united states military. and we are respected again, i can tell you that. we are respected fenn. [cheers and applause]

a lot of things have happened. we're respected again. for the last hour years you have walked the same paths as navy's gradest legends, the giants of midway and coral sea and manila bay. here at annapolis the glorious past is all around you and so are the stories of your great heroes. one such hero who appears in the pages of your old yearbooks is bruce vorhies. you know bruce vorhies, known well over. bruce hailed from nevada and was a member of the naval academy class of 1929. beneath his picture in the 1929 lucky bag bruce's classmates wrote that he spent most of his

time teaching the city slickers from the east the correct pronounciation of nevada. and i had to learn that too to win the state. [laughter]. great place. he saw studying as an unnecessary evil and they remembered in three cruises and four years in blue surge, brass buttons, he left a trail of broken hearts extended the full length of both coasts and radiating for miles around crab town. in other words, he was just like you in many ways. [laughter]. just like you. not a lot of difference. just over a decade after his graduation lieutenant commander

ben vorhies found himself at war. 75 years ago this summer he was in the south pacific, commanding bomber squadron 102 during the battle of the solomon islands. that was a rough battle. his only brother had been killed in the bataan death march. on july 6th, bruce volunteered for a mission to destroy a crucial enemy base. it was a rough time. it was a rough, tough situation. you you knew full well he would not likely return. he knew he was going to die. he also knew his daring action could prevent a surprise attack on large-scale american forces. so his plane took off alone, on

a 700-mile flight. bruce flew through the darkness to his target, a tiny speck on the vast open sea. he braved unrelenting anti-aircraft fire like nobody had ever seen at that time. and a trail of enemy planes, to single-handedly destroy this large enemy base, including multiple fortifications, and a critical communications link. and in this final act of valor bruce was caught in the blast of one of his own bombs and perished in a remote lagoon very far from here. his life was lost but his legacy will live forever. many of you have seen the star marking bruce's old room at

bancroft hall, commemorating his congressional medal of honor. of our highest honor. some will trace his path to pensacola to earn your wings. you may even make it all the way out to the legendary combat training school known as top gun in bruce's beloved home town in fallon, nevada. there you will have the honor to take flight from van vorhies field and remember a person who fought for his country and died for his homeland and saved so many and save the some lives with his legacy.

it's a living history, passed down from officer to officer and generation to generation. each of you will make your own mark on the navy, the marine corps, the military and the history of our great nation. seize today, and you will shape tomorrow. in a few moments you will be commissioned into the mightiest fighting forces of the air, the land and the sea. together you will blast off carriers which we're just now finishing the largest aircraft carrier in the world. launch of submarines of which we have the many under construction and ward off evil.

you will bring comfort to our friends and you will strike fear into the hearts of our enemies. among our graduates today, will be 283 aviators, 134 submariners. [applause] 256 surface warfare officers. [applause] 70 restricted line officers. and 15 explosive ordnance despostal officers. [cheers and applause] 236 united states marines. [cheers and applause] and 35, very tough, very

well-conditioned, navy seals. [applause] together you are the tip of the spear, the edge of the blade, and the front of the shield, defending and protecting our great country. you know there is no mission our pilots can't handle. there is no hill our marines can't take. and there is no strong hold the seals can't breach. there is no sea the navy can't brave, and there is no storm the american sailor can't conquer because you know that together there is nothing americans can't do. absolutely nothing. [applause]

in recent years and even decades too many people have forgotten that truth. they have forgotten that our ancestors trounced an empire, tamed a continent, and triumphed over the worst evils in history. in every generation there have been cynics and critics who tried to tear down america. it is not working too well lately. but in recent years the problem grew worse. a growing number of used their platforms to denigrate america's incredible heritage, challenge america's sovereignty, and weaken america's pride. but we know the truth. we will speak the truth, and we

will defend that truth. america is the greatest fighting force for peace, justice, and freedom in the history of the world. [applause] in case you haven't noticed, we have become a lot stronger lately. [applause] a lot. we are not going to apologize for america. we are going to stand up for america. no more apologies. we are going to stand up -- [cheering] we are going to stand up for our citizens. we are going to stand up for our values, and we are going to stand up for our men and women

in uniform. [applause] because we know that a nation must have pride in it is history to have confidence in its future. we are the nation that built the highways, the railroads. the empire state building in one year. thethe golden gate bridge. and we are the names that built the panama canal. we tracked -- trekked the mountains, explored the oceans and settled the vast frontier. we won two world wars, defeated communism and fascism, and put a man on the face of the moon. we cured disease, pioneered

science, and produced timeless works of art that inspire the human soul. and on distant island far away battlefields, above the skies and beneath the sea, the entire world has born witness to the unstoppable strength, skill, and courage of the united states navy and the american marines. [applause] each of you enters your service at a truly exciting time for our country for we are witnessing the great reawakening of the american spirit and of american might. we have rediscovered our identity, regained our stride,

and we're proud again. prosperity is booming at home, our economy is the strongest its ever been, and our country has regained the respect that we used to have long ago abroad. yes, they're respecting us again. yes, america is back. [cheers and applause] we have begun the great rebuilding of the united states military. we have ended the disasterous defense sequester. no money for the military. those days are over. [applause]

and we've just secured, you read all about it, a 700 billion-dollar, largest-ever amount of money, to support our great warfighters. [applause] i might add that next year the 700 billion, not million. liking the sound of million, but billion's better, the $700 billion goes to $716 billion. and we are going to be stronger than ever before. we will have the strongest military that we've ever had. and it won't even be close. and when did we need it more than now?

[applause] that means new ships. you like that. we have now the lowest number of ships that we've had since world war i. and very soon you're going to get up to 355 beautiful ships. [applause] 355. that's almost a couple of hundred more ships. so you're going to be around for a long time. we're not running out of equipment. we're not running out of ships. and that's been approved. and we are honored by it. we'll have new equipment, and well-deserved pay raises. we just got you a big pay raise. first time in 10 years. [cheers and applause]

we got you a big pay increase, first time in over 10 years. i fought for you. that was the hardest one to get, but you never had a chance of losing. i represented you well. [applause] i represented you well. and this week we passed the new landmark legislation to give more choice and better care to our great veterans. we're going to take care of our veterans. we're doing a great job with it. [applause] we are taking care, finally, after decades we're taking care of our veterans. we passed va accountability. everybody said it couldn't be done. that is if you don't do a good job, you couldn't get fired. you don't do a good job, you don't care of our vets, they look at you right in the eye, they say jim, you're fired, out, out. you're fired.

[applause] get them out of there. they all said you couldn't get that they tried to get it for 35 years. we just say, get them out of here. he doesn't take care of our vets next year we're committing even more towards defenses and even more towards our veterans. we know the best way to prevent war is to be fully prepared for war and hopefully we don't have to use all of this beautiful, new, powerful, equipment. less likely to use it if you have it and nobody flows how to work it like you. [applause] f a fight must come, there is know other alternative.

victory, winning, beautiful words, but that is what it's all about. we are re-establishing the second fleet in the atlantic, bigger, better, stronger than it has ever been before. we are rebuilding our defense industrial base, to forge american iron, aluminum, and steel, which by the way we just put tariffs on when it comes in from other countries, okay? we're taking in a lot of money now. our country, they pay that big beautiful tariff. it goes right into rebuilding new ships. we've been taken advantage of we have been taken advantage of by the world. that is not going to be happening anymore. you see what is going on. we are building that modern fleet command by the greatest

sailors anywhere in the world, sharpening the fighting edge of everything from marine infantry squads to combat ships to deliver maximum lethal force. the enemy has to know we have them. and we are recommitting to this fundamental truth, we are a maritime nation. [applause] >> being a maritime nation we are surrounded by see. we must always dominate that see. we will always dominate the oceans. we are showing what we can achieve when natural american confidence is back by unrivaled american power and unquestioned

american resolves. also, there is another word that is never used and i will use it today. it is called talent. we have talent and a lot of other people don't and a lot of other countries don't. we have great talent and i have seen it. in other words, we are showing what is possible when america starts acting like it's sailors and it's marines. our nation cannot be strong without the heroes whose hearts stir the words don't give up the ship. very famous phrase. we have been using it in business, things go bad, don't give up the ship. keep fighting, don't give up the ship but it is really you guys started at.

our country cannot prevent -- damn the torpedoes, full speed ahead. [applause] >> damn the torpedoes, full speed ahead. you hail from every background and you come from every walk of life but each of you is formed by the same defining choice, to answer the call, you all share the same heart, the same blood and swear by the same motto, not for self but country. great motto. with us today are living symbols of that long and unbroken chain of american patriots, members of the naval

academy class of 1968. stand up please. please. [applause] >> exactly 50 years ago they were in your shoes, they embarked into service and they made america very proud. to everyone in the class of 68, we thank you and we salute you. like those who came before them, today's graduates will serve america through times of triumph and some hours of peril. there will be hours of peril. you will face new challenges, even challenges that you can't envision. you will find new solutions that nobody can even imagine. among your ranks is the next

chester nimitz, the next grays harbor, the next john lejeune. future generations will talk about you. they will tell your stories, speak of your courage, and someone many years from now will be standing right here in my position paying tribute to your great service. it will happen. because you already know the keys to success, as long as we are proud of who we are and what we are fighting for, we will not fail. we cannot fail. we will always succeed, always.

as long as we are you reunited with the same mission, the same purpose, the same patriotic card, we will win because we are one people, one family and one glorious nation under god. together we struggle, together we strive, together we pray and together we triumph as citizens, as patriots, as americans. we stand on the shoulders of heroes who gave their sweat, blood and tears and their very lives for this great country of ours. this is our heritage. this is our home. this is our pledge. we are all in for america like never before.

we are all in for our great country. [applause] >> to the naval academy of the class of 2018 i say a number of things, number one, i say that i was given an option, i could make this commencement address which is a great honor for me and immediately leave and wave goodbye, or i could stay and shake hands with just the top 100, or i could stay for hours and shake hands with 1100 something. what should i do?

what should i do? stay. i will stay. i will stay. i will stay. but to the class of 2018 i do say strive for excellence, live for adventure, think big, dream bigger, push further, fly higher and never ever stop reaching for greatness, never stop reaching for the stars. you know you are up to the task. you are among the finest people anywhere in the world, the smartest, the strongest. you know you will make us proud. we know that glory will be

yours because you are winners, you are warriors, you are fighters, you are champions, and you will lead us only to victory. good luck, may god be with you, god bless america and anchors away. thank you. thank you. [applause] stuart: we promised entertainment and i believe the president delivered. they are about to end the ceremony of graduation for the naval academy i went to pick out one line that struck me as being directed at north korea. maybe i am wrong but i'm sure the pres. was aware they were watching. the line is he was talking about he couldn't, new ships, new planes, he said you are

less likely to have to use it if you have got it. if we have to fight, he said, actively is our goal. i am sure that was aimed at kim jung un. liz: he also said we regained respect around the world. america is back, we will not be apologizing, he said we are rebuilding the military, getting the paint agreement you want and he did ad lib. when he was talking about accountability at veterans affairs, not doing his job, we are going to get him out of there. stuart: we have sen. tim scott with us, republican south carolina who is a member of the senate armed services committee. welcome to the show. good to see you. >> thank you for having me back. stuart: that was engaging, uplifting and a perfect sendoff

for the memorial day weekend. do you think we were right that that was aimed in part at north korea? >> no doubt that it was a clear and compelling message to the world and folks on the other side of the aisle. graduates represent the best of the best from a military perspective coming our way but sends a strong message to the north koreans about our seriousness and the pres.'s approach which has been successful and unorthodox, very successful at making progress in a difficult situation. stuart: senator from south carolina, a very military, a lot of military in south carolina. will that speech go down well with your constituents? >> i guarantee you it will go down really well with my constituents. stuart: forgive me for jumping

in. >> let's do more of that. the pres. has put his money where his mouth is. this new and baa is providing arrays for our troops focusing on shipbuilding, modernizing barracks for folks it folks just -- for jackson doing significant work at parris island, the reality is the pres. is serious about protecting us from a national security standpoint and recognizing and celebrating success, bravery of plans women who put their lives on the line, we have a lot to be thankful for and that speech was one of the most optimistic speeches i heard in a year. stuart: would you comment on nancy pelosi's statement which came out immediately after the president killed off the june 12th summit, she said

gronk -- kim jung un is having a google fit, marking the pres. and what he had done with the summit and north korea. >> it is inappropriate for anyone in leadership in congress to suggest that north korea's leaders having a good time and giggling about this situation. i like in those comments to talking to the american people who received an increase in their pay and calling those crumbs which we should be careful of the negative messages we are saying about the american people and saying about adversaries who are strongly positioned to do harm and we have a president using presidential hubris to push back on a north korean bully and this is good news for our country and good news for world peace and nancy pelosi shows us why we need to make sure the

gop continues to be the leading voice in congress. stuart: i did say the president said he is not going to the summit june 12th but seems like things have reversed a little bit since then. the pres. this morning put a possibility back on the table that there would be a june 12th summit and north koreans put out a statement saying they are still planning for a summit. do you think one should take place, do you think one will take place? >> here is what i think. the pres. has done a good job, i was at the white house when he made his statement, standing behind him. one thing he did really well is he took control of the conversation. he is not going to have someone else decide when, where and how and under what arrangements what principles, the success of this conversation. he is already succeeded, we have three americans back home because of the forceful negotiations of this president. if he decides to meet with kim

jung un it will be on his terms and those terms are best for our national security and will hearken to a new day of world peace if they are willing to come to the table and not give ceremonial pageantry and actually have a conversation that leads to tangible and measurable results and the nuclear rising of north korea. without that assurance i do not believe this president will find himself at a table across from kim jung un. >> tim scott, sen. south carolina, republican, perfect times, thank you very much. absolutely -- he was talking

over the heads of the crowd, north korea, but no impact from that on the market, we are down 12 points. we started when the president started to speak, we were down 3 and now we are down 11. no impact whatsoever. the big story in the markets is the price of oil, way down. 3 and half% down, back to $68 a barrel, the saudis and russians are talking about increasing production. gas prices still going up. that rise will be tempered with the price of oil. ashley: it takes a while. stuart: 296 is the national average, up from yesterday, 17 states plus the district of columbia where the average is $3 a gallon or more. california the most expensive gas in the land. look who is here, capitalist pig hedge fund manager, i hate saying that, capitalist pig where do you get that from? >> i have always been interested since a young kid, where i am from -- it is a good thing, not something to be

ashamed by. i have always gone by capitalist pig. stuart: you are here, we will take it. gas prices, $3 a gallon memorial day weekend is what you have got. does that have any drag on the economy or the markets? >> you have to look at the big trends when it comes to something like energy prices, down today. the big long trend is up the better part of 3 or 4 years and as i look at the market the stock market included longer-term, i see a big trends, inflation. things are getting more expensive, your hamburger at mcdonald's or your burrito at chipola your your gas in the tank. a little downturn in oil prices, inflation and higher energy prices at the gas pump, 3 and 4 might seem cheap.

you might be looking at 5 and $6 gas when all is said and done. stuart: way to go. >> enjoy it now. stuart: i want to play a clip from the dirty jobs guy who says it is tough to find young people with a strong work ethic. roll tape. >> you have to write essays and make videos & a sweat pledge and when people are confronted with hoops through which i asked him to leap, they take what they call umbrage at that and i find it fascinating. it doesn't bother me because i understand a valuable thing is almost always a thing in

command, work ethic is in demand. stuart: the work ethic is not there for the youngsters. capitalist pig, what do you say? >> immigrants. they take this pledge. when mr. rose is referring to, it is a consequence of colleges, they were born to hate work and hate independence, to hate capitalism and for profit motive. people looking for folks, young people to start the entrepreneurial careers, can't find the skills they are looking for. stuart: i must be getting old but i keep saying what is with youngsters these days. look at the colleges. capitalist pig, your time is up. a mother expecting triplets

gets a big surprise when doctors deliver a fourth baby, the extra baby was hiding behind siblings during ultrasounds. it was the surprise baby, that would be a surprise. donald trump wants another round of tax cuts before november. i want to know what kind of tax cuts are we going to see and when? we will be back. i got scar tissue there. same thing with any dent or dings on this truck. they all got a story about what happened to 'em. i could feel the barb wire was just digging into the paint. two bulls were fighting, hit the truck. another ding, another scratch, another chapter in the story. chevy silverado. the most dependable, longest-lasting, full-size pickups on the road.

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stuart: the title andrew cuomo's windfarm could fry without fracking. he wrote that article. it has been a long time, welcome back. governor cuomo, he wants to set up wind farms offshore and getting rid of nuclear power. it would seem to me another source of electricity, another form of energy if that plan is going to fly. what is it? >> it will be natural gas. i was compelled to write the piece because the rank hypocrisy of andrew cuomo, he's

lining up a presidential bid for 2020, he is kowtowing to the green left by pushing for the premature closure of the indian point nuclear point which provides 25% of new york city's electricity. in december the independent system operator, if indian point closes prematurely by 2021 as chroma ands, capacity will be replaced by natural gas fired power plants. stuart: new york state has a moratorium on fracking which produces vast amounts, does governor cuomo have to raise that limit.

>> new york has the highest prices in the country. by trying to put 2400 mw of

offshore in this is one of the most expensive ways of producing electricity. only solar is more expensive than offshore bids. america seeing the first installment with long island power agreeing to a contract on offshore projects, three times the price that prevails. it is bad for the climate. i was at indian point, fantastic facility that covers one square kilometer produces 1000 mw and being close to feed political ambitions. stuart: we will see how that works out, thanks for joining us. the property man himself will break it all down. it is a 7-year high.

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stuart: a go nowhere stock market, it is a long holiday weekend so you don't expect a lot of heavy duty trading. we are down 16 on the dow. a bigger story is going on with the price of oil, way down, a 3.8% drop, biggest drop in a long time, all the way back to

$60 a barrel, now we are at $67.99. the saudi's and the russians are talking about increasing production. down goes the price of oil. got some numbers for you. mortgage rates 4.6% on the 30 year fixed. that is a 7-year high. the median selling price for an existing home, $258,000, way up there. home sales down, the property man, bob masse where he still lives. anybody who wants to buy a home especially first-timers are getting squeezed and there is no way out. >> obviously we talked about how the interest rates for so many years, we are placed with

tough situations. everything going vertical, the inventory is bad and the price going up and investors are buying. i'm concerns about young families trying to buy a home, qualify for loans. there is no inventory. it is really tough. stuart: one bright spot, a lot of dodd-frank regulations were rolled back and i am hoping that makes it easier for people to get a mortgage or refinance, that process is murder. >> i serve on both sides, concerned about the lenders policing themselves. i remember years ago there was a woman who owns 7 homes, worked in housekeeping of the most she ever made $30,000 and she was foreclosing on a home. i looked at her and said listen, i am not sure you

should own one home alone 7. i am concerned it gets rolled back too much, they don't police themselves and they are back in the same spot. it is a love-hate relationship with me. stuart: i am only on one side of that, i hate those regulations. our production crew, it is really bad news. the las vegas golden knights, they are in the stanley cup. you are a vegas guy. this is all about pregame entertainment, a lavish extravaganza. >> in las vegas, i've never seen anything like this. the first season of the property man, 12 shows in vegas, it was being built,

tremendous facility, these men, i say this respectfully, they were rejects. the synergy they created, they have gone out into the community. everything is revved up this week, this weekend, with stanley cup on monday. stuart: the oakland raiders are coming to vegas. >> yes they are. there is another love-hate relationship. they are building this huge practice facility 10 minutes from where my office is at the whole town on that hold quarter, people buying homes as a result of this. the town is electrified right now. i never would have dreamed in all the years i have been here, and the wnba is coming here also.

stuart: we breaks news, that very last sentence. we will be watching the property man on the foxbusiness network fridays at 8:30 p.m. eastern. we always appreciate it. here is a subject we are going to return to. high taxes really hurting the state of new jersey, small businesses in particular. we have a new governor in jersey and he will plant a raise taxes -- i'm trying to look for the positive and can't find one. new jersey business and industry association's pres. welcome to the show. i don't want to list how bad it is in new jersey but you represent small business. what are you going to do? >> we need to call on policymakers to address

comprehensive tax reform in new jersey, everything from how we fund education and fix pensions in new jersey we should be focusing on comprehensive reform, to fix things that are structurally broken in new jersey. >> we should be doing that but we are not. >> we are not planning. stuart: are you expecting a mass exodus from new jersey. we talked about it. >> we studied this. over the last decade we lost $25 billion out of new jersey. number one and number 2, pennsylvania and new york, two border states, not florida, everybody says go for the warm weather. people are walking out of new jersey. stuart: easy to walk across state lines to pennsylvania and new york. that will get a lot worse because we haven't yet felt the full impacts of the higher taxes the governor proposes and the tax reform package which

will take away, don't get me started. it will take away all kinds of deductions. >> new jersey was a net loser on tax reform. a total outlier. we studied regional competitiveness. we can't compete with texas or florida, we should be able to compete within our region. we studied 7 states on 6 business factors, we came dead last, 7 out of 7, worst tax climate in the nation. we need to step back, have comprehensive tax reform. legislation is not just about taxes but increasing tax on business and small business, $15 minimum wage proposals, paid sick leave proposal, now we are talking about expanding family leave in the state of new jersey, we find legislation on a bill to subsidize nuclear energy and a bill for clean energy in new jersey and the

governor's talking about going back, these are billions of dollars of new costs to ratepayers and taxpayers between he to step back and understand the cumulative impact in dollars on today's taxpayer. stuart: with you all the way. that is good list. >> it is a long list. what we are not doing is looking at the cumulative impact. there are two taskforces, one by senate president and governor murphy. each one has been challenged with going back and bringing back proposals for tax reform. instead of waiting for them to do their business and there are smart people in both of these taskforces. instead of waiting to hear the recommendations we are going forward with legislation every day that is adding to the cumulative costs to taxpayers in the state of new jersey. stuart: realistically do you expect anything to happen in terms of tax reform, business tax or from, business

regulation form? i will answer the question. i don't think there's a prayer. >> i'm a glass half-full girl, a jersey girl, i am bullish on new jersey every day. we have a lot to offer in new jersey, we have our challenges and we will work hard and we will advocate for the change we need. stuart: you are sugarcoating it and you are a diplomat. come see us again. i want to know how new jersey is doing when the impact of the saxophone package hits. >> i will add up the numbers and see where we go. stuart: thanks very much. high taxes driving people out of chicago. really major city to see a population loss. i want to know how many people are leaving, where they are going. amazon eco reported a private conversation to a private party in oregon. this is the privacy issue and it has been taken to a whole new level. details in 90 seconds.

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ashley: i figured this might happen, chicago's population is shrinking. looks like he is leaving town like everybody else. where are the people of chicago going? >> reporter: i knew you were going to say that so i turned around. show the beautiful skyline of chicago. you are right, people are leaving, 3825 people net loss

from 2016-2017, so that is not a good thing. where are they going? they are leaving chicago to go to all the red states to turn them. stuart: that net loss, 3000 people, those will be people with money. that is the problem. money is being hemorrhaged out of chicago. >> reporter: here is the thing. you would think that but demographics show that it is african-americans that are leaving partly because of the violence in those communities and immigrant population not growing as big as it had been in the past, chicago is getting an influx of millennials and more wealthy people are moving to the city. i point that out, the problems in the city are concentrated in certain neighborhoods to the south and west. most of the city is in pretty good shape, breaking news to some people but it is true.

>> it is breaking news to me. if that is the way it is we shall report it the way it is. i am sure you will be back throughout the day pumping out your liberal -- you are a welcome guest on the show. see you again soon. the state of new york and new jersey will get hit hard by the tax reform package, they are trying to work around it. the irs says not going to happen, don't even try. americans for tax of one pres. grover norquist, this is finally, the left gets what it wants, the rich are going to pay more and they hate it. tell me about it. >> democrats said they didn't

like the tax proposal and said it would only help rich people. the one tax change they don't like is the one that hits higher income people but higher income people incorrupt cities. if city and state taxes are so high because they can't govern well, you are hurt. people damaging high income people in new jersey and new york and illinois, to fix this problem, cut property taxes, bring the income tax down, that solve their problem. they are trying to do anything other than that. stuart: they will never do that, they can't stand the idea of a tax cut. i want to talk to you about a real one, you have been in the room when the second leg of tax cuts has been discussed and we are told by kevin brady there is another leg down in november. can you tell me one single tax

you think is going to be cut before november? >> there will be a vote. it takes 60 votes in the senate to get something through. what they will put forward is to make the income tax cuts to make those permanent, to move to make the full business expensing which is good for 5 years make that permanent. watch and see 5 million americans who live overseas, they pay double taxes the way american companies used to. we fixed it for american companies, very important, do not have a worldwide tax system but a territorial tech system. we didn't fix it for 5 million americans who have a job in france or britain or pumping gas in saudi arabia, fixing that is on the to do list. a number of tax cuts didn't happen in tax reform that you can look forward to expanding the lower tax rates for

self-employed and subchapter-plaps corporations. stuart: a technical question. is there a proposal under the new tax law, $11 million exclusion that sunsets in 2025. is there a movement to make that exclusion permanent? >> yes because that qualifies as one of the tax cuts on the individual side. we went to make that permanent and at the end of the day, a tax-cut every year, that is very important because it means anybody who wants lower taxes is constantly focused on -- i will be in next year's bill, keeps the pressure forward or do ideas to lower taxes, getting rid of the death tax completely is on the to do list, just a question of when you can fit it in. stuart: thanks for joining us. have a great weekend. left-hand side of the screen.

this is for my benefit. microsoft hit another new high. [music] ashley: at what head you head out the door? stuart: i'm very happy with investment, i have been in microsoft the best part of 20 years. dagen: will you buy us lunch today? stuart: i'm leaving town immediately. everybody i ever bought lunch for, both people, you are welcome. should california be split into three separate state? sounds far-fetched but this proposal could be on the ballot in november. we will follow that story after this.

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stuart: there is a push to break california into 3 separate parts. joining us, cal 3 spokesperson peggy grand. welcome to the program. tell me why you want to split

california into three. >> not only california but across the nation. we know california is broken, too large to govern and too large to function and breaking it down into three smaller states will bring government closer to the person and make it more responsive and more responsible and cal 3 is an exciting and empowering way to take back california and have a stronger voice in government. stuart: is the thrust against the high taxes and high regulations that are in place in california and if you split into 3, would they have to experience high taxes and uber regulation? >> we know smaller government works better. we see 49 states doing it better than we are. us news came out with a report this weekend of the best states and california ranked 50 in overall quality of life.

we know smaller states are doing it better, they are more responsive and responsible for the people and representation of silicon valley is very different from imperial valley. stuart: are you trying to get away from high taxes and heavy regulation? >> we want california to be responsible and responsive to its citizenry. smaller government when it is closer to home allows people have a greater voice. so much of california is not represented not only here on a local level and state level but on a federal level california is electoral assumption. candidates for federal office would have to come to california to hear our needs and ideas and not just do fundraisers. we have additional local impact and national influence. stuart: you have a good shot of getting it on the november

ballot, you have the signatures you need. the atty. gen. is going through the signatures. >> we do, we are required to have 365,000 signatures verified. we have received 700,000 signatures and we expect the validation by mid june and will qualify for the ballot. it is an exciting time for people who love california like myself. i was born and raised in southern california. stuart: get rid of taxes and high regulation and get your poverty rate down. thank you for joining us, we will keep in touch and see how this goes through. >> thank you so much. stuart: there will be more varney after this. ♪ jardiance asked: when it comes to managing your type 2 diabetes, what matters to you? you got a1c, heart, diet, and exercise. slide 'em up or slide 'em down. so let's see. for most of you, it's lower a1c. but only a few of you are thinking about your heart. fact is, even though it helps to manage a1c,

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tell your doctor about all the medicines you take and if you have any medical conditions. man: ask your doctor about jardiance and get to the heart of what matters. we always came through ask yfor our customers.ardiance from day one, it's how we earned your trust. until... we lost it. today, we're renewing our commitment to you. fixing what went wrong. and ending product sales goals for branch bankers. so we can focus on your satisfaction. it's a new day at wells fargo. but it's a lot like our first day. wells fargo. established 1852. re-established 2018. stuart: i'm catching a lot of flak for my produce is because i'm putting this on the air, right, ash? ashley: yes. stuart: reds as in liverpool, the whites, real madrid. they will play each other. it's a soccer game, ladies and gentlemen.

playing tomorrow. ashley: can children -- championship of europe in kiev. stuart: fox sports 1, 2:00 p.m. eastern time. be there. it's a big deal, i know what i'm doing. thank you, have a great weekend, guys. the following president of the united states still at the naval academy graduation, shaking hands with each and every graduate. it's a great honor. blake burman on the back and forth that was backdrop for this. maybe north korean discussions could be back on? blake what are you hearing? reporter: now, a top official within north korea, he is suggesting that you know, they are still open to a meeting. one of the big questions, would be how would the north koreans react to all of this? the presi