time for sensitivity training, chick-fil-a does that every week, it's called sunday. [laughter] maria: i will add on the technology conversation protect our crown jewels, protect the technology that this country is known for and this leadership in and the deal with china includes national security. varney & company begins now, charles payne. charles: stuart will be back from vacation tomorrow. looks like we start week with selloff, political drama in europe sending sharps down lower, we have more of that coming up. also the big money story of the day, oil prices continue to fall on expectations that opec and russia may boost output down again this morning after a 4% drop on friday, by the way that was the biggest drop in 11 months all the big oil companies are taking hit as a result, exxon, chevron will be big drags on the dow this morning.

one silver lining, gas prices, finally heading lower. national prices, down a fraction overnight. 2.96. the big corporate story of today, 8,000 starbucks stores around the country closing, that's this afternoon, they will hold diversity training, this is after arrest of two blackmen in philadelphia starbucks. looks like the summit with north korea may not be dead yet. administration proceeding as is if the summit is still on. varney & company starts right now. ♪ ♪ >> i'm just overwhelmed with gratitude for you guys for everything that you've done, for the support of my wife for those two years were very, very three years. not really the great vacation that i was looking for but --

but we are still together, starting off a marriage rough but now we will be together and i'm just so grateful for what you guys have done. charles: well, that was american missionary joshua holt over the weekend, back at home in utah, holt was held prisoner in venezuela for nearly two years, just last week his mother spoke to stuart pleading for his son's release. >> i was at work and i kept getting short little messages, they are trying to kill me, mom, you have to get help, they are trying to kill me. charles: you have more on back story. ashley: two years, a mormon missionary that was down outside of venezuela, he met a woman online. he was trying to have someone teach in spanish, came in contact with the lady, he traveled to venezuela, he was there to marry her and they were

in a hotel. government troops show up. next thing you know they are being arrested for overthrow president maduro, claimed that we had weapons, wife put in jail and began the horrible two-year effort to get the heck out of that venezuelan prison, let us not forget that the country has been disintegrating. it was just a horrible, horrible thing, but congressional delegation, bob corker of tennessee, the trump administration, everyone finally managed to get him out, he's alive and well. charles: great story. let's get the latest read on home prices? >> now at 2,000 levels. across the board, all of the cities are up, again, they are regaining bubble-era peaks.

month to month, they were up just 0.5% and the markets are looking 0.7. as the mortgage rate heads to 5%, you wonder when prices will go back down. they continue to go up and up. charles: some data, government data now shows prices are coming down and coming town quickly, we will see. stock markets future lower. if populist win, could it lead to italy exiting the euro? scott shellady with tgm europe. we know the euro skeptics won in march, they won in italy, they sent to message, we don't want the establishment and probably we don't want the euro, establishment messing things up where there may have to be another election in september and that's rolling the markets. >> that election in september could be really another referendum on another brexit,

right, could they stay in european union or not. let's make it simple, i kind of made a u.s. comparison, we've got 50 states, same language, roughly same start date, you take 28 countries, no same start date, no same culture, no same language, i don't understand what these people are thinking on how difficult it's going to be to keep things together and britain on their own made right step two years ago. charles: here is the problem, the europeans not acknowledging the things that lead to lack of influence in the world and instead of trying to address them head onto fix it, hey, if we all share no borders, common currency, maybe we can make this work as a unit but to your point, it's a unit that doesn't have the same cull chuirls or even the languages. >> right. that's -- look, we have a problem keeping texas and california in our unit every year. no same start date, no same

callture, no same language, to me it's common sense, they don't know what they are up against. we are starting to see pressures in spain and portugal with the italian stuff, this is going the lead the busy summer. charles: spain has no confidence vote. the 5-star party in italy was considered french party not long ago, in march election totals up 7%, they won majority 32%, northern league, always been upset with the welfare abuse in southern italy, ashley, you know, 17, 18% of the vote, up 14%. that's clear-cut message by the people to the establishment they want change. ashley: it is. italian president, who is a figure head has said no because of the economy minister, the biggest problem rolling the markets, if in fact, they do go back to polls in september, much

stronger mandate for the euro keptic antiestablishment group. leaving the eu. >> wow. ashley: maybe picks up steam. charles: scott, other than that what's influencing this market this morning? >> well, look, we have seen oil come up 10% as of late, we add big highs in the last couple of weeks, are we ever going to see it back up again, maybe, 73 bucks a barrel. that's always going to be an issue. when we saw 10-year at 3%, we start things coming off the boil. keep an eye on that. we have seen come off here. the oil rig counts came back on line and we saw them take over. charles: appreciate it. latest on north korea, here is the president's tweet this morning, quote, we have put together a team for north korea,

kim-jung heading to new york. bill cassidy, republican from louisiana. all right, sir, the summit, do you think it's back on? >> looks like it is back on, charles, a step or two. the president played very well. when north korea was playing games, the president called it off, that gave them seriousness, the old saying there's nothing like a hanging to sharpen a man's mind. charles: the last line of president trump's letter, if you changed your mind having to do with most important summit, please do not hesitate to call, less than 24 hours when they took him up on the offer. >> the united states has put in sanction which is are crippling. north korea's economy is always kind of barely holding together, but this is crippled even more.

if kim jong un is going to do anything for his people including just keeping them out of starvation, he has to do something regarding this and i think that's good for the prospect of having a summit. charles: absolutely, sir, before you go, i want you tell us about new push to repeal obamacare. >> it's how do we lower costs and drug costs, across political spectrum people are concerned about the high-cost of medicine. we have new proposals here. for example, if somebody buys one single drug and raise it is price 750% to allow our folks to go abroad and to buy the same drug from say, germany, france or england and bring it back here to compete. if somebody else takes two medicines that you can buy over the counter as has been done now, you can buy for $20 over the counter, packages them and sells them for $2,600 a month that there be some sort of analysissies as to whether or not that's good for the american

consumer. whether we should be paying $2,600 a month that something that can go for $20, trying to reintroduce market forces but also analysis that gives power to patient. charles: quickly, one of the stocks that we had up mylan, they had the big epipen episode, is there anything on business side to incentivize business, longer period to keep exclusivity or something like that? >> if something has innovative drug, they should have a little more exclusivity, meaning they can keep it under patent longer, imagine somebody coming up with cure for am seemers which will take billions of dollars to develop, on the other hand, if it is one more drug to treat high blood pressure, similar to many other drugs in that class, they probably shouldn't have the same priority of approval or maybe not even as long to keep their drug under patent as we would speak of of a truly innovative drug. >> sir, what that proposal,

maybe the drugs companies will hire more scientists instead of lawyers. senator, appreciate it. >> thank you, charles. charles: a lot of this is turmoil in europe particularly in italy where it looks like the euro and the whole dream of one united europe again under attack, now we have this, state of emergency declared in maryland, 8-inches of rain causing massive flash flooding over the weekend. national guardsman trying to help during flood and has not been seen since sunday afternoon president trump's deployment of national security to the border was waste. the judge say it is comments were taken out of context, well, he will join us to clear everything up in the next hour. president trump holding a big rally for congressman masha

blackburn and pushing success of tax cuts, one of our favorite residents art is coming up. hat? don't miss the final days of our semi-annual sale save up to $700 on sleep number 360 smart beds. ends sunday.

charles: stocks are down all morning long on italy fears, here is the italian benchmark we are going to show. this is a varney first. don't tell him we did this. red arrows across the board for both. there you go. have you ever seen that before, freeze that, because when stuart comes back we will never see it again. now to midterm election, president trump going to nashville to stump for marsha blackburn. former reagan economist art, we know it's a tight race, we know that congressman blackburn, has been strong on polls. >> he's had a huge impact on

marsha. she carried the heavy load for the president. done so much on the tax bill and on all the good economic, fantastic congressperson you have ever seen and she will be our next senator. she's just great and i think she will win by a fairly sizable amount but she is wonderful and trump coming here is just icing on the cake. it's just fantastic, but, charles, i have to tell you, you the quote i will be using in the next week, they should hire more scientists and less lawyers, what a phenomenal phrase, i love you for that. charles: thank you. [laughter] charles: i bet biotech investors would love to see that also. >> you will get sued tomorrow. [laughter] charles: i may have to call your expertise. i know you're expert witness sometimes. nashville had mayoral election last week. i thought that was moral victory for republicans particularly

considering nashville, i guess, has become more liberal, why is that state looking like a tougher race these days for the gop? >> well, the only thing the only race that looks tough to be honest is marsha's and that's because she's going against the former governor against the state of tennessee back 8 years ago, 9 years, fairly popular governor, everyone was democrat back then. when i moved here, 7 out of house seats, 9 were all democrats, the governor was democrat. all the state legislature was democrat. that's 10-12 years ago. marsha is the future and phil is a pass. he just isn't going to make it. he doesn't have the energy and power really needed to be a great senator and he would be a one-termer at best and marsha has all the energy and ideas and correct way of thinking and she has done so much, charles, to make this state and this country a better place. i can't think of a better senator than marsha blackburn

will be. charles: i have to admit she's one of my favorite people in congress. >> what a lovely person on personal level she's very nice. charles: the work she's done is fantastic as well. >> i agree. charles: thank you very much, appreciate it. >> thank you, charles. i've got your phrase. you can copyright it if you go quick. charles: i will try, 3-hour show ashley, you the details. ashley: one of those landing near a preschool, by the way. most of them were intercepted, nevertheless, they did prompt swift response from israelis who then bombed militant areas in the gaza strip areas that they say are used for militant training. this, of course, a couple of weeks after demonstrations. charles: preschool?

>> one of them landed near preschool. thankfully kids weren't in school, before they report today school. this is something that the israelis, you know the response is going to be swift and it's going to be strong and this is exactly what we saw with the military jets bombing areas in the gaza that they say are being used as training facilities for the militants. charles: thanks a lot, ashley. 8,000 starbucks stores will be closed this afternoon, employees getting special diversity training after two black men were arrested. the question is how much will this cost the company? we will have the answer for you right after this. what's a gig of data?

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i'm not a big spender. sounds like you're doing a lot. but i still feel like i'm not gonna have enough for retirement. like there's something else i should be doing. with the right conversation, you might find you're doing okay. so, no hot dog suit? not unless you want to. no. schedule a complimentary goal planning session today with td ameritrade®. charles: starbucks closing thousands of stores nationwide for sensitivity training, joining us now from starbucks in new york, cristina. how much is this going to cost the company? >> right now the estimates are around $12 million. this is coming from william blaire. when you talk about the bigger picture, though, last year in third quarter in terms of profit they made over a billion dollars. this is the second time in the 47-year history of starbucks that they're closing down. the other time was in 2008 when

they trained their boristas to make express' $6 million. so definitely a little bit more. what we are seeing today is over 8,000 stores across the united states will be crossed down simultaneously around 1:00 or 2:00 p.m., the location right behind me is actually going and you could see by the sign, all starbucks location wills have sign, this one closes at 2:00 p.m. the training is going to last roughly 3 hours and surprisingly the company is not reopening after the training. they are going to close down. hence the reason why the costs are so high. the training material will consist of work books, prerecorded videos of the ceo kevin johnson, the founder howard schultz and rapper common, common will be seen in the video, this is probably in an attempt to relate to younger population or get people listening during the presentation, for example, on page 47 of the training manual it says every human respected,

uplifted, all of this comes becomes in april in philadelphia there was an employee that called the police on two african american men who were seated in starbucks location, they hadn't ordered anything, they asked to use the bathroom and denied to use the bathroom and then arrested an huge uproar online and starbucks apologized immediately which is why they enlisted training. some people say pr stunt. what other company can you say that's closing doors to train employees to get rid of any conscious or unconscious bias, however, the non-- the franchise locations, let's say the ones in airport, target locations, those will remain open for the entire day and they'll just get the training, so right now we are standing here. we are expecting some of the staff to come to the door, it will be closed down at 2:00 p.m. back to you.

charles: thank you very, very much. the dow down 178 points. the dow down 190. varney & company will be right back nah. not gonna happen.

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riping in just about 15 seconds, remember, after three-day weekend a lot of folks a lot of professionals trade rses absolutely don't hold stocks over three-day weekend in part because you have a lot of supplies in three days including this morning, turmoil at italy of all place putting pressure on our market, big board is ring right now as we see instangtly down 175 points every stock down the best performer is unchanged that's merk broader index, though, big selling across the board down 18 points and then nasdaq which is, of course, powered typically by those big tech names but it is also getting hit early this morning. remember when a ten year yield hit the end of the world but now coming now big times 2.8% now that will be a negative story. i'm not sure how but we have -- i'm sure it will be. crude oil you don't like high gas prices that is coming down big 10% from the peak just a couple of dates ago down 81 cent

now so stocks moving lower on political uncertainty this time, out of italy, it populous win another pop election there, that could actually move italy closer to leaving the euro joining us now elizabeth macdonald ashley webster mike murphy and barton now how big of a deal is this? >> through with the brexit i don't think it is going to come to pass but i think this is overreaction by the market a great time to be lining up quality names that announce great earnings and on weakness. >> how about the idea where you have italy and outsider and then that establish person in france but five-star is party but you see other country there is, the idea that the euro and the eu just doesn't work if that starts -- that is going to create some turmoil. >> that's a big deal charles. i think the big thing that's going on here first of all, i'm with mic. i'm looking for things to buy on

this dip. but i believe that this is one step closer to real problems in the euro because the, you know, italy they have to step in this weekend and not bring in anti-euro person and that might lead to reelection there. that will give us some more downside. the person who won election start to deny in the u.k. still trying to find ways to derail the brexit vote. they want another vote this the u.k. but you have to lie up to it. this populous movement won but the president doing everything to rerail it because he knows rise of euro and eu skepticism is ratcheting up more than spain but italian hi is much better bigger than greece when greece did to eu and that whole drama so my point it could die down but i do think cracks are starting to appear to break up. >> one thing for italy now a much healthier economy than the last time they talk about

leaving. >> but an awful lot of bad debt on bank sheets right now. we'll see. >> italian banks are getting hit pretty hard. take a look at oil well off their high there is. the new bigging concern o'opec and russia particularly saudi arabia perhaps discussing plans to lift production. this will be for first time since 016 where does oil go from here? >> i think it's -- on a downward trajectory. i think we've gone so far so fast down, we might get a little short top here but i think we're continuing to do so many good production things here in the u.s. and more oil per well than we ever have and -- putting in or more wells that as a swing supplier, with them coming onboard with more production this doesn't bode well with for -- >> twos ago there was zero oil well production and 11 came online and numbers getting higher and higher, obviously. but the narrative seems to

change almost daily when it comes to oil when oil is up it is a global demand is there. supply constraints what it is down it and flooded with oil. what's this story? >> it's really interesting. but it really should be more of a simple supply demand when gets up over 70 big oil pump more oil and bring price down. so headlines change a lot of things. but i think oil down here in the mid--- high 60s now, i think there's going to be more oil on the market. because people can get a lot more money for it. and it is going to bring the price back down. >> opec and russia are pumping flat out right now -- it not flat out but u.s. oil production is at all time record highs and headline just crossing the u.s. oil exports into asia is going it bite into russia and opec shares so this is a real fight between the majors arranged the world. >> it's amazing. all right we will let's take a look at disney for latest star wars movie so turning out too

many of them. it has been a heck of a franchise for them, but what disiewng? >> tile to hand it off to aventures. >> it wasn't really disney quality markets. the setup for it twhawnt goods and they were due for hiccup and this is their hiccup here. this is i wouldn't say not time to bury the "star wars" franchise yet but this is -- >> they rushed this in getting lower review and a poor quality movie is going to be tougher to get people to go in to see dmiet the fact that donald glover is in it. >> and ron howard famous director stepped in to take this project over. a 250 million dollar budget. came in at 103 million memorial day weekend domestic 68 million international. is it "star wars" i think people knew ending of this what happened to hon solo. >> what happens, back story. but -- [laughter] i'm old so i love the first three original movies, all right

guy let's go back to the big board here dow jones industrial selling off big time down more than 200 points on the dow remember we're off more than premarket. so a sloppy start to after three-day weekend. nevertheless microsoft is still in all time highs up 74 cents and then wells fargo company will pay $187,000 for violating at the chicago mercantile exchange. sears, their stock jumps after investment from esl. they received newel rows inquiries by the way for falling back a little bit. but wait a second that's the hedge fund thinking to buy kenmore after trying to find buyers for assets now eddy who runs steers will put up hedge fund to buy pieces -- >> criticism here is he's cherry picking better parts of business for it himself. >> debt swamps market value that have company. what's amazing guys you remember when eddy was next warren buffett a real estate play, and

there's a lot of media hype on this one. not necessarily market but people were buy sears shares up significant higher because of eddy -- but now to talk about cherry picking i think things like that has been going on as for a very long time in common stock is -- >> we don't know it will buy the real estate portfolio. mismanagement on retile side if you walk into a k-mart it is cads right now. >> sad for a long time. like i said russia department stores -- >> recognize '74. gum i think -- desolate you know. oh, my goodness. i feel bad. that was actually amazon of its day you can order a house on sears -- [laughter] >> all right folks let's tack look at netflix and have been on a tear 80% this year alone dr barton. pull back a little bit, and it has pulled back ting in sympathy with disney but yeah it is too expensive here and it is not too expensive for the long run because they are delivering both in content their marketing

efficiency has gone up that's why it is up with rich evaluations. so my subscribers on friday. but i will abide back on a dip, though. >> what do you feel one of those names name they've beaten critics time after time after time but you wonder the time to come up short and critics have said they can't continue to spend so much for content but stock performs but i love the idea of a long trade because streaming business willf for dis gnu very soon. amazon chief jeff bezos says we must go back with to the moon -- and this time to say ashley -- [laughter] you guys going to buy ticket its? >> a lot of people were saying on the company credit card. [laughter] now should bezos go to the moon? >> what's interesting apparently he's the complete sci-fi gobbing

and reads all of the books he believes so it's not a matter of should we go to other planets to set up, you know, settlements but matter when have we go for survival of human kind he went out there to say we have with to do it in order to save his great 's children. they're going to spot -- >> once election is taking over america we're all like oh -- what do you think, mike? >> i think it seems when they get to a certain level sometimes the thought get a little bit beyond them. i think it is when running amazon -- >> he thinks his legacy is blue origin. that's where -- >> so to your point sort of gotten to a lofty place and started to facility orer to dream of something else. >> by people that reach high and get us to think yongd, are a good thing. but i'm with mike. amazon. >> thank you both very much, and dr quick check of the big board here been under pressure out of

the gate. still dow up 200 points check this out this is a man in france scaling the side of a high-rise apartment to save a little boy who is dangling from the balcony it is an incredible story when i say incredible it is so incredible wait until we tell you the details next. also a democrat in colorado introducing legislation to reveal president trump tax cuts and wait until you hear trump's response to that one. that's all coming up, next.

>> all right again let's check on the big board dow off 200 points we have been under pressure all morning long. coca-cola launches its first ever alcoholic drink, where did they do this nicole? >> in japan that is where they

launched it. so after the 132 years of coca-cola history they've moved into alcohol. in fact, despite the fact that the population is dwindling in japan and moving to downside you can see the can drinks are moving higher so known as too high are very popular and so they're playing on it and it is going to have alcohol and 3%, 5%, or 7% but lemon salty lemon so this is what they're sell ising see if people take it. >> flavors of kit kat and doritos so why not that also? thanks a lot. appreciate it. well switching gears now a daring rescue emac -- >> reports are now coming in that baby you see dangling had fallen two stories. and then grabbed the religion and was hanging there -- that's reports cooling in from the bbc right now. so what happened was mamadu illegal immigrant in paris.

ceased from the ground scales this four-story up to grab ahold of this child. the father was out shopping playing "pokemon go" he faces possible jail time of up to two years prison time for neglect and mother was at a family reunion in -- off out of the country. so daring rescue he's now being called now in a fast track to citizenship and may be given a job as a firefighter as well so it had a happy ending and -- a moment right there. >> that child hanging on is so impressive now -- >> fell two stories -- his father was playing game "pokemon go" that's the -- at the store and you couldn't write a script like that. send that to hollywood they will reject. great great story beautiful way to start it. and a sets a campaign national

for marshall joining us is deputy director david, all right david you are heading tennessee for president trump. do they -- let's talk about this rally is it going to be focused on taxes or sort of other tennessee specific issues? >> i think this the is going to go to tennessee to talk about why marsha black byrne would be next president senator and talk about the economy and he'll talk about -- whether it's north korea, iran, and many other foreign policy issues. the president also delivers enormous speech when he does these rallies because people cool from far e away to see him and he never wants to disappoint. >> you know, congressman blackburn has been one of president trump most -- supporters in congress. extraordinarily popular, i she's going to get the popular guy in but seems to me it is interesting that polls are are this tight right now, david. >> well first of all marsha has

been a member of congress the democrat opponent who has been elected state wide is governor, so you have a little bit of an upside for marsha in the sense that the polls are close right now. but the entire state does not know her and that is a very good thing for marsha blackburn to be able to grow the percentage of her vote as people understand the differences. and that is, this democrat is going to be for raising tacks rolling back our tax cuts. he's going to be more weakening -- our borders and for sporting sanctuary cities. the people of tennessee do not support the democrat agenda of impeachment of this president. so i think that marsha is an incredibly strong candidate and this president is going to make the case for her tonight. >> another one for you david, i want you to take a look to put on the screen a tweet from trump on a plan to undo tax reform, quote, democrat lawmaker just introduced a bill to repeal the gop tax cut no chance this is

too good to be true for a republican. remember, the nancy pelosi dance are always weak on in border and a want to be gentle kind not goods. david your thoughts. >> yeah i want to sending that democrat a thank you note. this -- this is -- xeangt why crystallizing this and enframing debate on these issue whether it is ms-13 or rolling back these tax cuts and impeachment you name the issue, the people of tennessee in this particular race are going to be with us and with president trump and that is why marsha blackburn has a great chance to be next senator from tennessee. >> so ironic colorado has received tens of millions of dollars in wind fall because of democrats any democrat would voice opposition to him. last one for you david joshua halt f holt is now back in home in utah after two years many a venezuela, prison, lorrie she actually made parns on her son's

release on this show less than a week before it happened now you're a trump guy. looks like trump certainly making major moves with bringing americans home. >> first of all, that's who this president is. you know, he as peace through strength, he projects america first ideals and he tells the rest of the world if you are holding american hostages you are going to be dealt with swiftly and severely. and i think that's what these people around the world who are holding americans -- and every one of those hostages are very precious to this president. he looks out for them. he wants them to come home. look what he he did it in north korea look at this with venezuela and many more need to come home and gaining on their freedom. >> david have a great time tonight we'll be watching. thanks a lot. dow jones the 30 stock make up that index take a look at the big board awe in the red. your losers across the board all under a significant amount of

pressure the dowist gone 201 points trump signing new executive order to make it a lot easier to fire federal workers judge napolitano has more on that one, next. 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.

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and again we've been down over 200 points all morning long. session lows right now these are jitters in large part over political uncertainty in italy. well the president making it easier to fire for old worker all rise judge andrew napolitano is here well the swamp they let it happen. >> well, i mean, this is an area charles where the president has absolute authority and this is the length of time between the piling of a complaint or the recognition of some misbehavior and when disciplinary action is taken right now so 120 day. you keep your job nothing happens for 120 day but president is short thand to 30 days. so my hat is off to the president because he's dealing with a civilian work force of 3 million people. very few of whom are republicans. very few of whom worked for him or appreciate what he's doing for the government and one of the farmist he made intractable he really means shrinking the

federal workforce and making it work better and more efficiently. >> something here because there are 80 federal unions judge, i'm just curious how did this all develop ?uz taxpayers spent according to the gao175 million in the last fiscal year for federal workers who do union tax cuts full-time and don't do the job we pay them to go to washington. so -- >> that's the second of the -- >> how has this all develop sthd because nobody has interfered with it because president feared the union. republicans contract. >> i had a contract with ronald reagan and i said sell the post office and information came back we're terrified of the postal union. no matter which party is in power it is a fear of the voting bloc of the unions. donald trump does not fear that. because the second executive order he signed limits the amount of time that a federal

employee can work on union affairs rather than government affairs. two business-like regulations but we saw that with wisconsin that was the big collective bargaining. >> powerful the unions get the more powerful they get. you know so state of wisconsin that did not collapse when this it happened. >> did not. current blow will come ting in the next two weeks when the supreme court rules that discussion products the states from forcing public workers to join unions forcing them. correct to join. to join. right now they pay dues but they can deduct a portion of the dhiews go to political campaigns which they disproof this saying you don't have to join the union. j but there will go for federal workers ore prieflt -- state workers federal challenge hasn't happened yet because that's coming. really big last strong block for the union and dwindled dramatically. way they get their --

they can't provide a service that people want to join voluntarily. >> so in the swamp and pathetic ridiculous sorry. that's what i would call it. >> it is a big waif jarring loose. all right. thank you. thanks a lot appreciate it. subtropical storm alberto making landfall in florida, panhandle the storm turned deadly we have who journalists killed when a tree fell on their car. janice has the full forecast coming up plus chelsea clinton degrading what it means to become an american. more varney right after this.

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charles: 10 a.m. on the east coast, 7:00 a.m. on the west. i'm charles payne in for stuart varney. stuart will be back tomorrow. italian elections and subsequent

actions by the establishment to thwart the will of the people. we are down 154 points but we down a whole lot more. president trump says a great team is in place for talks with north korea as one of kim jong-un's top officials heads to new york. looks like the summit is still on. former uss cole commander, kirk lee polled will be with us. the american joshua holt who was held in venezuelan prison for two years, he was welcome home this weekend. we're all over that. it has been more than a month since the president trump sent national guard to to the border. the head of the border patrol union says it was colossal mistake. he will be here to explain that. jon taffer host will handle that situation. we have a feeling it will be a little different.

hour two of "varney & company" begins right now. ♪ the latest breaking news on the economy out right now. consumer confidence, ashley. ashley: coming in 128.0 which means nothing to anybody but it does mean that confidence is still very strong. at levels we haven't seen since back to 2000. we're talking about 18 years. april's number was revised a little lower but we're certainly at the point where people are confident this speaks to the labor market as much as anything, charles. people are definitely optimistic jobs are there and hopefully wages rise along with it. charles: people will spend money. last week, top three stocks, foot locker up 25%, ralph lauren up 19%. ashley: retailers, baby. charles: brick-and-mortar still alive. big tech also alive. we check the names every single day. some of them moving higher. microsoft near an all-time high. amazon announcing the first fulfillment center in oklahoma. they will add 1500 full-time

jobs by end of 2019. shares of universal display after reports that apple will use oled displays in iphone models. there was a lot of speculation they would not do that. disney down, with lackluster performance by the latest "star wars" franchise installment. nasdaq continues to move higher and higher. >> let's get back to the uncertainty in italy dragging on the market this morning. brian wesbury, first trust chief advisors economist. brian, wasn't long ago we had a whole situation in europe. we were watching friess every single morning to determine where our markets go. italy is much larger economy. what is happening there could have a major impact on europe for a long time. >> it could. we all remember "grexit" and then "brexit." by the way britain is a lot

bigger than italy. we have who knows what, what do we call it with italy. we're seeing a backlash against the establishment. it is happening around the world. the reason is big government doesn't work. when you have the commanding heights of the economy controlled from the centers of political power, what happens is there is backlash. that is what is going on in it it -- italy right now. it is confusing to a lot of people. it is concerning to people who own italian debt. germany backstop as lot of debt in the european union. charles: right. >> italy has a lot of debt f they go it alone, there is going to be some bond hold that's get hurt. that is true in illinois, california, new york, new jersey. there's a reason there is a backlash against the establishment.

because there is a massive fiduciary mismanagement at the government level. so the point is, this is going to happen. but just like "brexit," just like "grexit," i don't think this is going to affect the u.s. markets. what drives stock prices over time is profits and u.s. companies are highly profitable, and as a result they're going to come back. charles: by the same token you know, in addition to the big brother, big government issue there is an issue that translates across the atlantic and it is the sense you have a group of people who seem to be worked hardest, generating most capital, funding the government via taxes and another part of population who seems to be unwilling to work and getting majority of welfare. it is not just in italy, it is in belgium, spain, austria. >> everywhere. charles: people are so fed up, they want to go it alone. >> yeah. they do and, this battle between

wealth creation and redistribution, charles, if you will, it's, it's the history of mankind, right? we've been doing it for hundreds and hundreds of years. it is just that in the last 30, 40, 50 years, especially with the eu in brussels and the growth in the u.s. government, we've taken it to a new height and now we're seeing a backlash. charles: right. >> people will find out, you can't not work and still get paid. i mean we -- charles: but it has happened for a long time in a lot of places and really the crux of a lot of issues in this country. let me ask you another one, brian. oil, it has been getting hit pretty good. now you know, i was on over the weekend with neil cavuto. i say people should start thinking about oil as an american product. i got some backlash on that. >> yeah. charles: we don't want oil to go down too far, do we? >> we don't, and it is an

american product. you know, we are the world's leading producer of energy in the united states. what i find fascinating, just a quick aside, is that merkel is still willing to make deals with putin when we could provide all the energy to europe. they don't need to deal with russia. let's leave that aside. i believe that oil is worth 55 to 65 bucks a barrel. i thought that when it was 110. the thought that when it was 28. the way i get there i compare to oil prices to 35, 40 other commodities. you build a big spreadsheet and do all kind of ratios, averages, statistical work on that. charles: right. >> it says oil is worth that. when it gets above, there will be pressures to brit i down and when it gets below that there

are pressures to bring it up. at 55 to 65 bucks a barrel we'll frack like crazy in the united states. we'll produce even more of the world's oil in years ahead. charles: we'll produce a lot of great-paying jobs. brian, you're one of the best. appreciate it. >> thank you, charles. charles: president trump heads to nashville to campaign for congresswoman marcia blackburn in a race there. rob, the gop you know they're running on president trump now, seems like almost, although to be quite frank marcia blackburn was onboard a long time. this is big. now he is stamping a name to a can state so far trailing in the polls. >> you can't run with one foot here and one foot there as republicans have tried to do in '17 as they go into 18. you're all-in or not. if you're not you areyour base will stay home. i'm the dead canary in the coal

mine. i lost in westchester county, two to one democratic county. i won previous elections by big numbers. i lost by big numbers because democrats surged to the polls. people who hadn't voted in four years to come out and vote against donald trump there was picture of me and donald trump and that was their whole campaign. that is it what they're going to do across every house race and every senate race this year. charles: that will not necessarily work in west gain. won't work in indiana, ohio. we saw primaries candidates say, hey, i'm closest to president trump all really have done very well. we saw certain primaries all the candidates are saying i'm down with trump. >> depend where it is and what the electorate is. the race in ohio, just north of columbus is going to be really telling. that is a suburban district. you have college-educated voters and chardonnay crowd and all that kind of stuff. taxes matter. when they come out, are they going to come out in big numbers

like the democrats have shown to do this year i don't think that will, rest at all. will the republicans come out? republican so far have not been not that enthusiastic. charles: you were not postively surprised in indiana, ohio, those turnouts in the primaries? they were much higher than anticipated and couple of them were higher than the democrats. >> we'll see what happens with independents now come and vote. they will turn the tables one way or the other. so i do think perversely i think the senate might be able to pick up a seat or two this year. but i think the house, look -- charles: does it flip? >> i think it will be really close. charles: really? >> i do. you know what, they will lose seats no matter what, always happens, but enthusiasm this year is so strongly in favor of democrats it will be hard to overcome. charles: talk about momentum in the economy though. >> that helps. charles: we've seen the reuters generic poll which had gargantuan lead for democrats, i know it is generic poll. we heard about that become the genesis or reflective of the

great blue wave that you're describing here. since then we've seen that turn completely on its head. meantime the economy is still chugging along. got consumer confidence number, helped dow off 70 points from the low of the session. most people are excited. those independents you talked about apolitical folks who don't necessarily follow this, if they go to the local mall they will see help-wanted signs. they're probably getting a raise at work, what will they vote on? >> that's a good question. they're seeing increase in the economy. seeing more in their paycheck. some of these people loathe donald trump as a person. they don't like what he says. i dealt with that too. where will they end up voting? do a check on trump, vote for democrats to balance things out? then they could make a real decision in 2020. or are they going to vote with their pocketbooks. i think at lo with emotion. if they don't like trump, they will not vote for him. especially women. that is a big issue within our party. i'm a trump supporter. charles: thank you, rob.

>> all right, charles. charles: israel retaliating after 25 rockets fired into the gaza strip including the yard of a kindergarten. a former uss cole commander is with us next. president trump says democrats must agree to a new wall and border protection. the head of the border patrol union said the national guard men at border was colossal waste. he will tell us what he meant by that. "bar rescue" host jon tapper is a huge fan. he will be with us later in the hour. you're watching the second hour of "varney & company." ♪ ♪

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charles: checking the big board we made a pretty good bounce after that consumer sentiment number. we were off as little as 127 points. we're still off the lows of session. mgm buying empire cities casino and racetrack in yonkers for $350 million. now this, president trump tweeting this morning about the north korean summit. here is a tweet, quote, we have put together a great team together for our talks with north korea. meetings are currently taking place concerning summit and more. kim young chole heading now to new york. solid response to my letter, thank you. we have former commander of the uss cole. commander, the summit back on. are you surprised by this? the way president trump wrote the letter i thought it was going to be back on but i didn't think north korea would blink in less than 24 hours. >> you're seeing negotiating

process going on outside of the actual summit itself this is how we get to the point where we can sit down, have realistic discussions to figure out how are we in a verifiable way going to get north korea to realize they must totally dismantle and denuclearize their program in the peninsula. charles: what about this, another meeting between the two leaders on the korean peninsula at the dmz, this time on the north korean side? they gave each other a bro hug. what is the message to the world other than we want this to work? >> the message of the world right now let everything look good but reality there will be very difficult, very hard negotiations going on. you have to look at it. nations want to pursue and possess nuclear weapons because they view it as the ultimate guarantor of their survival. that is how north korea's going to look at it. so we are going to go in there wanting them to give up that, we'll have to give something back. all these premeetings going on,

all the hard work that is going into it, that is so that we can get to a real discussion quickly and efficiently so we can have very effective discussions. charles: commander, when you say nations, is it more like rogue nations? one-dimensional nations like north korea? i don't know that sweden or norway is actively pursuing a nuclear weapon. isn't this why president trump is articulating the fact, the work ethic your people have, considering economic success of south korea there is a to prosperity because you can't eat these nuclear weapons? >> you're absolutely right, charles. when i'm talking about weapons, look at second and third order nations are involved. first and foremost, nothing happens between north korea and the united states without chinese blessing and pushing the north koreans on. president trump was absolutely right to call off the earlier summit plans because, frankly chinese were going out of the box, out of the zone, and they were allowing north korea to

make threats that shouldn't have been there. china is continuing to militarize the south china sea on the islands, why we disinvited them from the naval exercises that are out there. these are all things that will happen. china has to be key. they are key. we have to work with the north koreans to make sure they understand, you will be prosperous, but there will be a price to be paid in that you have to these weapons up. charles: israeli commanders say 25 mortar shells were fired in the gaza strip in communities in southern israel. what are your thoughts on the latest provocation? >> let's not forget, charles, hamas, terrorist organization, labeled by such through many nations throughout the world is running gaza right now. they are the ones that aid, abet, allow i had. they put women, children, young adults at the border to aggravate the israeli forces. in some cases they have paid that price with their lives. hamas doesn't care.

they will kill and use, kill using human shields in order to pursue their agenda, what they call the right of return. bottom line, there won't be a right of return. someone needs to be honest with the palestinians, there will be no right of return. now, how do we work to create that two-state solution? how do we get them back to the negotiating table in earnest so we can have an israel that can live in peace for the first time in its history. charles: there is a role for the palestinian authority then, if so, would they have to sort of clout to represent all palestinian people? >> i would certainly hope they would. you're going to have to have some representative of the palestinian people. right now the one that can actual do it that has the majority of the support even though it may be kind of low stated is going to be the palestinian authority. we need to get them there, they need to negotiate in earnest. at the end of the day you will still have organizations probably like hamas, like hezbollah, they are not going to want to see existence of israel.

they will have to be marginalized and taken out. charles: right. >> if we do it through the negotiating table and diplomacy, great. if not, military force can and must be used. charles: commander, thank you very much. appreciate it. >> thank you, charles. charles: four-year hunt for missing malaysian airlines height has officially ended ashley. ashley: hard to believe, march 28th, 2014 took off from kuala lumpur to asia and simply disappeared. 43,000 square miles of the ocean floor, in the direction they believe the plane was headed has been searched. some debris has been found on far-flung islands this is disappointing result as the investigation go down as one of the greatest aviation mysteries of all time. last year australian authorities maintain the captain flown a route on his home simulator six weeks for his disappearance

initially very similar to the course that this aircraft took. however, investigators in malaysia said they found nothing suspicious in the financial, medical or even personal histories of pilots or crew. could have been someone else on board? very strange that they have yet to find a reason why those 239 people on board -- charles: conspiracy theorists have field day. ashley: it goes on. charles: thanks a lot. well the hurricane season is here. the first big storm hitting the south, hitting south florida. fox news's janice dean will tell us what we can expect from the hurricane season this year. ♪ [ sigh ] not gonna happen.

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charles: subtropical storm alberto made landfall in the panhandle. janice dean, fox news meteorologist. first named storm of the 2018 hurricane season. what can we expect this year? >> not out of the ordinary we see the tropical storms happen before the official start, june 1st, which what happened with this storm. we're expecting above average season. that is what the national hurricane center is expecting. let's walk you through what is happening right now. this is depression, subtropical depression, meaning it has characteristics of a tropical system and non-tropical system. we'll see more heavy rainfall across tennessee river valley and mississippi and ohio river valley. unfortunately that is big threat for remainder of storm. flood watches are in effect for millions of people. here is the official tally what we think. main storms, 10 to 16

hurricanes. five to nine. average is six. last year we had 10 hurricanes. major hurricanes as category 3 or higher. noaa is expecting one to four. average is three. last year we saw six. only takes one hurricane to make it a bad year. if i could mention threat for severe weather across central u.s., watching all of it. it will be a busy season for me and you. see you on the tv. charles: always appreciate it. you're the best. >> you got it. charles: michelle wolf slamming white house press secretary sarah sanders again. you will hear it. brian kilmeade will too. he is next. starbucks closing thousands of locations for sensitivity training. how would "bar rescue" host jon taffer handle this? he will tell us next.

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♪ [inaudible] charles: like people calling up the market. liz: or down. charles: let's get a big check of the big board. we were off more than 200 points. now we're off 137 points. check the big tech names, facebook, microsoft, all-time high, others are pulling back though relatively benign trading in those names. meanwhile starbucks will close thousands of the stores around the country for sensitivity training this after two black men were arrested in a philadelphia starbucks. joining is the author of, "don't bs yourself" and host of "bar rescue," jon taffer. jon, how would you have handled this situation. >> starbucks, we talked about it on this show, is a company that doesn't always seem to be fiduciary motivated, motivated

by politics. we've seen them take sides on issues and alienate some of their customers before. i believe this is a personal motivation by them. i believe there is certain nobility attached to it. i believe this is something they want to accomplish. charles, they're taking risks. when you open up your business to use restrooms for anyone off the street, in the wintertime in certain cities, in certain markets that creates a challenge and a threat to the very business. so i think there is a moral motivation to this. charles: so, you know, jon, one of my things, obviously businesses can do what they want but i feel like starbucks boxed themselves in as one of the leaders of the so-called conscious capitalism movement. they are more or less pointing their fingers at other businesses. you're motivated by profits. should be motivated by the stakeholders, not shareholders. i feel like howard schultz particularly boxed himself into in a no-win situation. >> i think that is it true. he has done that politically

before by alienating certain customer groups. charles, providing restrooms is not a fiduciary responsibility that is a personal choice. starbucks separates that line sometimes. some of the choices made are more personal than fiduciary. unfortunately patriot system not a fiduciary responsibility. charles: family and i went out to one of the chain restaurants yesterday. it wasn't a great experience. we got there early. couldn't seat us. we had three grandkids with us. i told the guy, sitting every one, manager, i don't get it. the place was virtually empty. i guess there is amazing amount of difficulty managing these kinds of things from a central location. >> oh, it is very, very difficult, charles. the restaurant business is a business of volatile costs. they change by the minute. not like a t-shirt top where you have 10 t-shirts you count them and sell them. in the restaurant business, products go bad, there is waste,

there is a whole butch of controllable expenses that can take you down but if you don't have a certain revenue level you can't cover fixed costs and you struggle. charles: you mentioned the word hospitality, i'm wondering if that word is lost in the hot hospital tallet world these days. >> i sit in the hospitality capital of the world in las vegas. some of that is labor issues and training issues. those who want to deliver hospitality do it every day. charles: let's talk about vegas a little bit, laws the las vegas golden knights won the first game against the washington capitals in stanley cup finals. your thoughts on that? it is unbelievable. i'm a season ticket holder, charles. i have been to about 30 games. we saw it in the beginning. there is a spark, something very, very unique about this the team is remarkable. think of the business model, charles. think about a brand new sports franchise winning a stanley cup

first year? season ticket prices are going up about 30%. logo sales are through the roof. they're selling nationally. this is an incredible business model. if you are going to do a sports franchise, the vegas knights are the example how to do it. charles: congratulations. we know you have been a fan from day one. enjoy it. although they haven't won the cup just yet. >> three games to go, charles. we're almost there. charles: thanks a lot. >> takes care. charles: i want to check this sears, lower now but -- liz: yeah. charles: big news here. liz: may see finally the conclusion, the last chapter of sears because eddie lampert is saying my hedge fund, september sl is willing to buy the kenmoore appliance unit and home improvement unit. we don't know if they pick up the real estate, lease it back to sears. he is working with the board to execute a deal will bring this unfortunate corporate story to a close. charles: does anyone think sears is salvageable?

they had good news, deals with amazon? liz: assets are there. that is a great point. the assets are there. this is classic hedge fund story, they loaded up with a ton of debt. the debt swamped the market value. are we seeing right now breakup of sears? likely yes, with eddie lampert. he owns, his fund own as majority stake in it. they tried to do a lifeline with amazon, put sears products in amazon. i don't think -- it helped but not enough. charles: there is a cautionary tale i think for these hedge fund managers view themselves masters of the universe and go into any industry turn it around. when eddie lambert took a stake in this, this was roaring. every one on financial tv was saying this was the next warren buffett. liz: you made a great buffett. they should have been the amazon of the day. had the sears catalog business. relationship with u.s. households across the country.

they sat back and let i had ride instead of staying on top of this. charles: we've seen that mistake over and over. appreciate it a lot, thanks, emac. liz: sure. charles: joining us right now, is it live on radio, brian kilmeade on the brian kilmeade radio show. first of all, brian, joshua holt, the missionary, arrived back in the u.s. after, held two years in venezuela. brian, this was a great thing to see. does this go to the trump lore that he is great negotiator? >> a couple of things, he put somebody since the first week in may on it. getting all the americans around the world being held unjustly. we're trying diplomatically to get them it. the word from the white house, the way to do it, don't talk about it publicly. only making things worse. brings more attention, whether taliban or isis or al qaeda. and now we see the president gets three back from north korea without any acquiescence in terms of our international policies. then we get this guy and his future wife back, from

venezuela, when they accuse him of gun-running. when the guy is a mormon on a mission is just preposterous. we didn't release any sanctions. now he has 17 back in a year-and-a-half. now he has somebody on there full-time, really since may 6th to do it. i think this stuff helps. you know who deserves a lot of credit? orrin hatch, bob corker, and mia love. charles: absolutely. the utah contingent and bob corker. i think you said something interesting because president trump is in your face. he tweets about the major issues of the day all day long, no matter what day it is. >> i haven't noticed. charles: particularly "fox & friends," you never cover that, but i would say in this case the idea is not to say anything publicly. i think that is kind of interesting because no one ever talks about that aspect of the administration. >> no. he can be very, he can be disciplined when he wants to be. give you example last week with the letter, saying i'm not going ahead with the singapore summit.

he didn't come out say little "rocket man" blew it again, nice haircut, nice unitarred. he didn't say any of that. listen it, could have been great. you threat us with nuclear war. i can't really take that by the way we have the biggest arsenal in history of man. might want to think about that. if you want to get back on track, let me know, he does. during that entire time, that one negative tweet, who did the tough work? john bolton and vice president pence. the president knows to hand off the vitriol when it he has to. charles: pompeo. to your point, diplomacy is not getting enough credit because he is working. another one for you, brian, comedienne michelle wolf slammed white house press secretary sarah sanders yet again in debut of her new show on netflix. we'll roll tape. >> if anyone is an expert on hypocrites it is sarah huckabee sanders. [laughter]. for the record, that was not a

looks-based joke. that was about her ugly personality. she has the mario batali of personalities. charles: brian your reaction. >> i'm not big into the food network. mario batali has reputation. he could have charges. he acted off camera. number two if you met sarah huckabee sanders, nicest person you will meet. if you ever watch her, she comes off extremely compliant even when people are throwing venom at her. jim acosta put down compared to child is that ven anonymous. i look at venom coming with her, sideways delivery and annoying sarcastic twang. part of digs is part of comedy. don rickles, six decades always went after people, including hosts. he had such a sense of humor. equal opportunity offender. on netflix, going to keith olbermann and maybe kathy

griffin, rob reiner like the sense of humor. she has a narrow audience. no moderate, independent or republican would ever watch. she has got notoriety. i don't believe she cultivated success. humor should be equal opportunity offender. it doesn't mean you don't pretend like you're not liberal. go ahead. you have to do it in creative way, not a a venomous stab in the back. charles: don rickles was equal opportunity. didn't matter what letter behind your name from political joint of view. that is what was so enjoyable. he was refreshing comedian instead of taking. brian, appreciate. >> it. >> you owe it big time, charles. charles: add it to my tab. 20 states have legalized sports betting after the supreme court ruling this month. new jersey is one of them. we'll get a status report next hour. been couple months since the president trump sent the national guard on our border. the head of the national border

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ashley: louisiana senator bill cassidy told us last hour about his new plans to lower drug prices across the board for the american consumer. take a listen. >> we have some new proposals here. for example if somebody buys one single drug and raises the price 750% to allow our folks to go abroad to buy the same drug from germany, france, or england to bring it back here to compete. if somebody else takes two medicines you can buy over-the-counter, as has been done now, you can buy $20 over-the-counter, packages them and sells them for $2600 a month, there would be some sort of analysis as to whether or not that is good for the american consumer. whether we should be paying $2600 a month for something that can go for $20. ♪ we've got aging roadways, aging power grids, ...aging everything. we also have the age-old problem of bias in the workplace.

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charles: look at oil near a six-week low. we get latest read on supply on thursday because this is a shortened holiday week. continuing something going on for long period of time. on other end of spectrum netflix has hit another record high. now there is news, headline in the "l.a. times," border patrol union calls national guard deployment a can -- colosl

waste brandon judd. brandon you said what was taken out of context what did you mean. >> you're hitting me with the tough questions, right off the bat. can we have a warm-up, talk about why border patrol agents love your program. it is sports, politics and of course business. this is the problem, "the l.a. times" story is the problem with what written news media -- i don't get to control the headline which of course has to be controversial, otherwise nobody will read the article. but if you dig into the article you will quickly find out i'm not criticizing the president for the decision to deploy national guard. in fact nobody has praised the president for that decision more than i have. what i was talking about is the current deployment and how we're utilizing those people. if we don't utilize them properly, we don't free up our resources to patrol the border and that was the discussion we were having but of course the liberal media takes it out of context and wants to make it me against the president which it

just wasn't. charles: i believe me, i understand. i've been there. i understand when it comes to the media that the headlines are used as bludgeoning tool to misdirect all the time. so exactly, because i think we talked since this development was rolled out, and i thought you were happy with the results that somehow the national guard was freeing up the border patrol agents to do more of their job, less paperwork, things like that. what has gone wrong since then? what is not working right now? >> what we weren't doing is we weren't putting them in the positions like the lookouts and observations posts that would have freed up our resources, but again, that problem is being fixed. you know, i have said it many times. president trump has done more to secure the border than any other president in my 20 plus year career. that is not cheerleading. that is simple fact but often times media wants me to cheer, to just cheer. if that is the case i'm not that guy. what i have to do be responsible

to the border patrol agents and the american public. i have to be willing to discuss the problems in order to fix those problems. i can tell you, charles, right now, those problems are being fixed and we are freeing up those resources exactly like we were supposed to see from the beginning. charles: brandon, who is in charge of integrating this natural guard support? because there have been calls for additional troops to come help you guys out. so, who is, whose desk does this land on to make sure that they're utilizing the smartest way possible so you guys can do your job? >> well, unfortunately we know how the bureaucracy of the government works. the government is too big. i mean if you looked right now, you look at secretary nielsen, she is doing a fantastic job at looking at where we need these people but you also have the department of defense that is involved in this as well. again, i think that the coordination is taking place. i think that we're going to get it right. and we're going to utilize those people correctly. charles: right.

>> secretary nielsen is going to be at the forefront of that. charles: next one for you, i want you to take a look at a tweet from president trump, quote, democrats mistakenly tweet 2014 pictures from obama's term showing children from the border in steel cages. they thought it was recent pictures in order to make us look bad but backfires. dems must agree to wall and new border protection for good of country. bipartisan bill. brandon, your thoughts on that? >> i think the democrats will beat him up no matter what he does. he can do the best job possible and they're still going to beat him up. i can personally tell you i've spoken with the myself. and he is very concerned about the children and wants to do what is right. he is going to secure that border and do everything he needs. of course the democrats will try to throw out pictures that paint him in a bad light. they will get it wrong just like they always do. charles: what do you make of the pushback, either pushback or avoidance by congress?

because ultimately, you know, looks like we're building up to another one of those showdowns to where the government gets shut down. there is a lot of fingerpointing. this despicable display of things like the photographs, have now, to your point become par for the course? >> well, i think what you're going to see that in the third week of june, i think that this immigration showdown will come to a head. the goodlatte bill i believe will come to the floor. i think you will have the queen of the hill, there will be a lot of competing bills, i expect the goodlatte bill to come out ahead, when that bill does come out ahead, what we'll get is get border security measures we're going to need. we're going to take care of dreamers, if that is in fact the way it goes. but again, you're going to see this president come out ahead just like he has in all of the other issues that he's faced. charles: brandon judd, we'll start the show off, the interview off talking about sports. thanks a lot. appreciate it. >> have a good one. charles: tech billionaires

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charles: amazon head jeff bezos says, we all, we got to get back to the moon. ashley, you've got the details? ashley: yeah. it is interesting he believes this is really his reason for being literally. he believes space travel is going to be the most important thing going and with his blue origin company he says, look, it is only, it is only, what he is talking about long-term human survival. it is not whether we should, it is when. the sooner, the better. talking about going back to mars. talking about creating some sort of habitat for humans. and then of course donald trump tweeted out, hey, why don't you be the first. i kid, i kid. certainly he says i'm a geek. i love sci-fi novels and movies, rest of it. i believe this is important for our human condition. unless we stop growing, unless humans stop reproducing we need to find somewhere else. charles: that harkens back to

the maltis that we would run out of food. ashley: the climate will -- charles: demise of earth at the hands of mankind. you know, we actually never, we're not anywhere close running out of food. we can feed the world. you know, we'll see. ashley: he is talking up the fact, scenario where his rocket company would do very well. let's not forget that. charles: thank you very much. ashley: yeah. charles: coming up, battleground california, the state will head to the polls next week. some of those races are very crowded, like 10 people are running for lieutenant governor. we have one of them for you in the next hour. ♪

charles: 11:00 am on the east

coast, the dow is down 200 points, now we are getting clobbered again. we are near the lows of the session. it was about italy but there could be more since then pulling back big time. the s&p 500, same sort of pattern, down, up and pulling back to the lows of the session, nasdaq name started to power higher this morning and now it is all pulling back once again. the 15 year yield it to 86, went to bring in dan shafer of asset management. you have been a big bear and today's drop is looking interesting because it is from out of left field for a lot of people, italian politics. is that underscoring the vulnerability of the market? >> between thursday afternoon and last night the markets were thin.

when the news came out at 3:30 the markets hit stops all the way down. i expect this to be a selloff, a rally going into june. i talked about this the last few months, june is the pivot point of the peak in the market for the rest of the year. charles: we don't go as high as testing the high. >> i have seen it happen, you have seen it happen but because the energy has been declining over the last three weeks, even though the advanced declines have been moving higher there is potential for a major pop. if we don't get that pop it will be harder. the market is out of energy at this point. charles: what is going to drive it done? different markets can drip lower. when you are looking for something more substantial to the downside. >> i'm taking the side we are going to a deflationary depression and i think it is coming. you see it in pricing competition, you see around the world in global expenditures, people are not spending the

money, look at the fact that oil has run up on the inflation expectation which took all the money out of the pockets of the middle class. >> you say we are in a deflationary ago. >> the last like in oil that i see, i think that is the end of that spike what was a motivated spike because of anticipation just like the 10 year treasury went to 306, 308 on anticipation of inflation. i don't see inflation anywhere. before it has come down to your point. i find it intriguing because consumer staples, there is no pricing power if you are selling soup, soap or underwear but there seems to be praising power for louis vuitton, and other things where discretionary spending people are spending big-time money. how do we understand why we won't pay extra pursuit but we will pay extra for other items?

>> the way the money is situated around the world the wealthier are wealthier and the poor are poor or so the wealthier can spend this money. there is no problem with that. the middle-class and consumer spending will drive this problem. we have got a wider divergence between the classes which is very dangerous. >> consumer confidence is strong, the ceo of macy's and other folks, even coles, something they have written off, the magic formula and the consumer is out there so much so. give me some confident guidance. tax reform is in, why is the middle-class under pressure? >> a couple reasons. the housing market is not so great as everybody thinks and that was the cash cow for the middle-class. the borrowing opportunity is not there. even though wages may be going

up, based on where the unemployment rates are in growth of the economy they are not getting that. the third thing i talked about energy prices cutting out the tax effect of the new tax reform but the biggest problem is people are scared. even though these numbers coming out, if you look at the numbers the last three weeks about inventory and manufacturing it is all declining or staying flat especially in europe and this will come to our shores, it won't just stay in europe and the dollar will get stronger too. i'm looking at low interest rates, a stronger dollar, softening of consumer spending. this is a problem. >> fertilizer company, grains, natural gas and bonds and we got to leave it there. thanks. let's take a look at oil. dan talked it down another dollar but we are under a lot

of pressure. the average is $2.96 down fractionally from yesterday, when it goes down. donald trump tweeting about the governor's race, california has a rare opportunity to solve its high crime high tax problems with so many others, voting for john cox, a really highly competent man, making california great again. larry elder, nationally syndicated talkshow host. primary one week from today. wilcox make it as one of the final two? >> he has a chance if one of the top two, the front runner, gavin newsom had been running ads attacking john cox not because he wants john cox not to finish number 2 but want to finish number 2, the thinking

is republicans are outnumbered by registered democrats in this state and the decline is almost bigger than the republican group. gavin newsom hopes john cox finishes second and happy donald trump endorsed him. one guy finishes number 2. he will be a cakewalk on the general election. charles: he will get rid of the would be democratic challengers. the ex-mayor of los angeles, the closest democrat in the latest polls. what about travis? he was polling higher than john cox. social media, there was more enthusiasm for travis allen and john cox. >> you are right and john cox was late to embrace donald trump. he was attacked by republicans for being a trump come lately.

for whatever reason donald trump endorsed john cox, gave him a big shot in the arm and as a result cox probably will do better than travis allen and might finish number 2 as i mentioned. if he does finish number 2 who knows what can happen? there could be a scandal but in the case of gavin newsom i can't imagine scandal between now and fall. stuart: no doubt he has a teflon to him but let's go through, coming in seconds whether it is cox or allen could that be the genesis along with what we have seen, big counties against sanctuary city law, could this be the genesis of a renewal revival of the republican party in california? >> i would like to say yes but

i'm not seeing it. look at all the problems california has, high gas prices, highest state income tax in their country. we rank low in terms of education, unfunded pension liabilities, over $1 trillion, huge problems in this state. you don't have the revolt you had years ago when arnold schwarzenegger became governor because of tripling of the car tax was we have a high car tax and people don't like it but i don't see people embracing the republican party as a result. overwhelmingly the status democrat, overwhelming the state does not like the wall, does not like -- does not sanctuary state laws and hate donald trump. that is not a formula for success in my opinion. charles: later in the show we will talk about the gas tax, very unpopular. huge foreign policy, donald trump confirming a top north korean official is on his way

to new york. vice chairman kim young will be talking about reviving the planned summit between donald trump and kim jung un. american missionary josh holt arrived in the us over the weekend, held prisoner in a venezuelan prison for two years, his return came after his mom appeared on this show pleading for his safe return. listen to what josh said after returning home, roll tape. >> overwhelming gratitude for everything you have done. supporting my wife, a very difficult two years, not the great vacation i was looking for but we are still together starting the marriage rough but we will be together. so grateful for what you have done. charles: one more item, 2 dozen mortar shells were fired from

the gaza strip at israel. no one was injured. most of the shells were intercepted by israel's iron dome missile defense system in response to the attack. israeli jets bombarded millicent positions. donald trump heading a big rally for congressman marsha blackburn for her senate run and pushing the success of tax cuts, the pres. has a great economic story to tell and we are here for, the third hour of varney roles on. ♪ bigger and bigger, 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.

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charles: the cleanup continues in maryland after devastating flash floods. the town was pounded with eight

inches of rain sunday but the water following cars, flooding stores and homes, one man is missing after being swept away by floodwaters. alberto has weakened to a subtropical depression but heavy rains could bring flash floods across the southeast, alabama getting the heaviest rain, states from mississippi to the carolinas are in the storm's path. lawmakers in new jersey trying to determine how to regulate sports betting. venues like mammoth park delaying bets into lawmakers figure it out. steve sweeney, new jersey senate president, a major windfall and victory for new jersey. now is the hard part, how to implement this. >> we went to make sure we have rules in place so everything goes smoothly and there is not any issues. we really think we will be up and running by june 7th when we

expect to pass legislation out of the assembly and the senate and hopefully the governor will sign it when it gets to his desk and we can get moving. it was a long battle fighting the leagues. i want to thank governor christie for leading the fight. at the end of the day we won. people were saying we got to do it right now. wait a minute, let's get the rules in place with we waited 7 years, we can wait a couple days. charles: the opponents of this, do you think the potential windfall, the new governor with respect to higher taxes. other issues are creating a divide within the state of new jersey but serious economic commitments. >> sports betting is not the end all be all by any means.

we feel it will help casinos bring other revenue in. sports betting is $150 billion, black market business we want to bring out and with the court case more people will bet legally from where they live instead of going to las vegas. all in all it is a good thing but new jersey has a structural problem that won't be fixed with tax increases. it will be immediate reforms that have to happen. and industry association on the show, she told us how new jersey anti-taxes are killing small businesses in that state. >> we lost $25 billion of adjusted gross income, migration states, pennsylvania and new york.

you see is increasing on business, we see $15 minimum wage proposals, we passed a proposed sick leave proposal, we talk about expanding families leave in new jersey, we find legislation on a bill to subsidize new clear energy in new jersey and a bill for clean energy in the state of new jersey. charles: how is this going to work? >> we get a budget done in the state of new jersey, constitutional deadline on june 30th. a serious conversation with the administration, the problem, it is not spent well. we need reforms, i voted for millionaires tax half 1 billion times but after the sultan deduction that caused a deduction in the state of new jersey where people write off $10,000 of taxes and new jersey

is a high tax state. the only people in the state of new jersey, the only ones that can stay here, there's a report from a group called alice the talks about people living in the state, working for it. 41% of people in new jersey are considered working for because the high tax in the state of new jersey. we consider a high income state but we are a high cost state. a classic dilemma. charles: we appreciate your serious voice of reasoning, and standing up to some of these things because i agree it is in the wrong path and this won't help. near the session high, and

wells fargo, paying $150,000 for violating trading rules at the chicago mercantile exchange. the stock is up after it lambert investment received numerous inquiries for partnership in asset, it is up slightly as well. the highly anticipated solo, a star wars story, opens for memorial day weekend but fell far short of expectations bringing in an estimated $103 million. it is almost down to billion dollars now. 8000 starbucks stores set to close, getting special diversity training after two black men were arrested down fractionally. $57.58. and jeff bezos says we must go back to the moon and we should stay. he wants to use his blue origin

company to make it happen. we are getting news from the white house on the summit on june 12th. details on the other side of this break. ♪ [music playing] (vo) from day one, we always came through for our customers. 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.

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charles: blake berman at the white house. >> press secretary sarah sanders put out a lengthy statement, status report where things stand with 14 days to go until the potential summit. three made items of note, the secretary of state, mike pump -- pompeo will meet in new york at some point this week. we know kim young joe is en route to the united states to new york city, brexit and kim have met in pyongyang before but this meeting will take place at some point later this week in new york. one of the big questions is why is the right hands to kim jung un, the former spy chief coming

to the united states? is it because there are major differences or minor differences at this point still to be worked out? the japanese prime minister, s ashinzo abe will be meeting with donald trump. in north america regardless because of the g-7 taking place a day later in québec about a strategy session will take place on june 7th and the white house yesterday and today and today is starting to describe this as the expected meeting between donald trump and kim jung un, using that word. when might be expected june 12th or somewhere down the line. charles: appreciate it. the new york times is reporting purdue pharmaceuticals new is opioids were being abused shortly after introducing them

but they continue to market them aggressively. that is coming up and donald trump getting ready to head to national for a rally, he is there to support marsha blackburn absented campaign and promote his tax cuts, the ones democrats say are bad for the economy but median household income at an all-time high under donald trump. we are on it next. ♪

charles: we are near lows of the position, two dow components are higher, pretty tough session. began with worries about italy and then got worst. peter morricoj, your casting a dark pattern on our stocks, what is going on? >> the italians elected government, coalition of the far right and far left that are euro skeptics. this representative bush

faction, basically negated the election, refusing to let them form a government because he doesn't like the government they would form. like jim. getting up to say donald trump is not pres. of the united states, we will ever replay and it will be between hillary and i. before we see problems with italy, this points to a greater issue, growing acknowledgment the eu is not working, if you have to unwind, there could be serious turmoil. >> there is turmoil in winding the euro but not as bad as it is being made out. most people doing the writing on this, the peterson institute in washington is run by a european who is pro-europe. the imf is run by a finance minister from friends and so forth. as a consequence we are getting these doomsday stories like we did before brexit.

italy has not grown since 2003. of the euro is so good for italy why has it stagnated for most of the century? charles: later today donald trump had to national to support marsha blackburn absented run, and will promote his tax cuts. the pres.'s economic story is amazing, the median household income at an all-time high, up 3% since 2017. this is a sign of economic prosperity. how much can donald trump take credit for? >> barack obama was not getting numbers like this because this is an administration, think of what you want of his personal life and history, this is an administration that fundamentally believes in what has made america run, americans, therefore free enterprise, entrepreneur, self-discipline, individual accountability, those are

foreign concepts to the regime of leftist occupation we had the last eight years unlike europe, when we get an alien regime we didn't say would they didn't win the election but barack obama's to leftism in status and was there because of the financial crisis, not because the american people were enamored with his message. it is said the houses of fractious, the lighting -- it is really sad. charles: people vote their emotions and not always their pocketbooks. appreciate it. new york times reporting purdue pharma, opioids being abused after introducing them but continue to market them aggressively nonetheless, this is a big deal. >> this goes back to the new york times uncovering a confidential justice department report that suggests purdue pharma knew about the abuses of the drug whether it is snorting

and injections of oxycontin a few years after it hit the market and they continue to market it is less addictive than of their opioids. this justice department report suggests despite this awareness and knowing about the abuses goes back to the early 2000s and continue to tell the market it is less addictive than vicodin because it is a slow release drug. $35 billion last year up from a few billion in 2007 owned by one of the richest families in america which is worth 13 $13 billion and this leads back to the opioid crisis which is called a national health epidemic, 200,000 died of overdoses but should be pointed out we had them pay one of the largest pharmaceutical fines in justice history, $600 million

from mislabeling, oxycontin, the three executives only pleaded guilty to misdemeanors and they should have been charged on felony charges which could have marked a turn in the opioid epidemic many years before. charles: reaction from judge andrew napolitano. you heard susan's report. judge napolitano: it is a startling and stark report that exposes we were looking at the emails, the sales personnel were sending back and forth about the 2000% markup on this stuff and how easy it is to get people accustomed to using it, the question what went on. charles: accustomed or addicted? judge napolitano: i did not see the word addicted but they knew what they were doing, the question is can there be liability because of two things. one, the fda approved this in

the rule of thumb is when the fda approves a drug there was no liability for its ordinary and reasonable use, the second is what is known as the intermediary. you can't go to the drugstore and buy this, the doctor is only supposed to give it to you under narrow circumstances. the doctor is giving it to you, that insulates the manufacturer from a level of liability because they know it has to go through the doctor examining the patient deciding it is appropriate to them. short answer is following up on what susan lee reported i don't know that anybody will pay a serious price for a radical health epidemic arguably fomented by aggressive sales personnel. charles: we have to admit the industry is complicit from pharmacies to the doctors. it wouldn't take long to see this thing people got

accustomed to fairly quickly. judge napolitano: we have achieved justice arrested for dwi, he wasn't drunk, didn't have a drop of alcohol, he had one of these opioids for back pain. charles: last week the fed -- another one for you, allergan recalling its birth control pill because some of the actual pills are replaced with placebo. the name of the drug -- judge napolitano: this is a different analysis because the manufacturer made a mistake. in every state of the union we have strict liability meaning the manufacturer is liable for all of its mistakes no matter how innocent they may be. the issue is not liability but damages. as i understand it, the pills that were placebos were very early on like the first few pills you will take and thereafter they were legitimate

birth-control pills. the question is who was harmed and to what extent were they armed? but to the extent that the manufacturer caused women to ingest something other than what they believed they were ingesting there was perceived liability and emotional damage if not actual real damage by the failure of these pills to work. charles: so interesting because in the corporate world after the crisis in the early 2000s all these different rules said ceos and management would be liable for financial mistakes, but operational mistakes happen over and over again sometimes impacting the largest swaths of society don't really, no one gets punished. maybe they will pay some fines. judge napolitano: i would think so. placebos are common in tests where you know you're being tested. you can't foist a test on the unknowing public. this must've been an act of

negligence because of strict liability. charles: appreciate it. a check of the big board, the dow is down 300 points, down 200, down 120 and we follow completely apart. homeland security, the homeland security department recommending a end to the startup visa, the obama administration and acted the program, its goal was to keep foreign entrepreneurs in the us by giving the workaround to extend visas but the dhs is the rule doesn't do enough to protect workers and investors. i want to show you this, california, a new digital license plate and their raising privacy concerns. some worry the device's communication system could allow private companies to track a driver's movements was a new poll shows a majority of people in california went to repeal the increasing gas tax, we are one week from the

california primary. will this boost the gop's chances? we are all over it next. ♪

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carlock drink ever, 132 years, they have never gone to alcohol but in japan they have launched an alcoholic drink, and it is very popular. we have seen that area growing. sales reached $2.3 billion, and going after that share. they will capture the female group as well, 3%, 7% alcohol, despite the population. this area is very popular. hundreds lined up to try this out. coca-cola the leg are this year down 71/2%. they appear out of nowhere.

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treatment options that can help. if someone you love has parkinson's and is experiencing hallucinations or delusions, talk to your parkinson's specialist. because there's more to parkinson's. my visitors should be the ones i want to see. learn more at moretoparkinsons.com charles: check the big board, losses setting up under pressure, down 200 points for most of the morning made a pretty good rebound with the latest on consumer confidence that than the bottom fell out when european markets closed. not sure there is a correlation there. ashley: you see the yield on the debt here and a very safe haven, the yields of gone down and that is hurting the financial stocks.

goldmans and jpmorgan chase, when rates go down they don't make as many profits. it is feeding on itself but it could be a situation that could develop and that is not to get the market roaring. >> and italian rerun, the breakup of the eu is in the headlines again. charles: the idea that someone in this case you have the 5-star party close to 50% and traditional center-right party, well over 50% of the vote rejecting establishment to take that away and citizens, they talk about a constitutional crisis in america but this number is down, pointing to something deeper than italian banks being in trouble. ashley: peter said i don't like the way this vote turned out so

i will stop the ability for you to call it a government, put in my own guy for now and do it again, that is the message and there will be mass protests in italy and already is. charles: california primary a week from today, 10 candidates for lieutenant governor, pretty crowded seal. the top two will make it to a general election runoff. republican candidate for lieutenant governor, do you think you will make it in the final two? >> i can definitely make it to the final two and what will take me there voters are finally awake. i have seen many signs including the initiative to repeal the gas tax when voters remember, democrats and republicans alike, they are the employer and are ready to call sacramento democrats to account for mismanagement, this

enthusiasm is really great, so excited to be ready this time. charles: as an outsider watching closely, we always do for several reasons. i must admit i was personally surprised at the uprising of sanctuary city laws. whatever lie he wants, whatever initiative he wants, is that enough of a genesis, to propel you to this job? >> this enthusiasm has been going for a long time and came to a head because voters have a good choice. democrats and republicans alike are frustrated with the other things that are going on, jerry brown is campaigning against repeal of the gas tax, saying infrastructure is in danger, the roads need to be worked on, we have delayed projects but

voters are saying, and the lack of trust voters have. >> a new poll, to repeal the gas tax. the state has taken in almost $4 billion more than they thought because of new tax laws out there in the more money that pours into your state the more ways they spend it and not find a way to distribute even if it is lower taxes. >> californians are in the unique point in time where their emotions and frustration with increasing taxation aligns with the pocketbook. these voters are ready for change, the non-politicians that can get business done, who will say what they mean and do

what they say. this is the most important change i have ever seen in california politics. charles: that is a big statement. thank you very much. we always appreciate it and we will be checking on you. i want to get back -- liz: italy has the third-largest government debt filed in the world, second only to greece in terms of being a basket case, european central bank owns 15% or 20% of italy's debt which is why you are seeing a dramatic selloff because there is deep concern over the leadership of italy. italy has had nearly 5 dozen different leaders since world war ii but at the same time, $2.7 trillion worth of debt and that swamps gdp, multiple times over. the fact that there is concern is due to the bond markets.

ashley: like greece the italian populist movement is appointing germany saying you're getting involved too much in our economy in germany is the backstop when it comes to the debt across the eu and italian debt which has seen the euro fall to 116 against the us dollar. as we speak it is getting cheaper and cheaper to visit europe. charles: how do you make the correlation? financial, the hardest hit right now at this moment by far, financials, even though the 10 year yield is down 2.85, the spread from 2 to 10 which is a harbinger of recession, one of the most accurate ways of finding or predicting recession in this country, now back to levels that spooked the market earlier this year where the so-called inverted yield curve, getting closer and closer to that every time it happens, our economy dips into recession.

again, this is the panic we have seen so often. ashley: market rating for a passion, something more positive with north korea which could be good for the markets on a geopolitical angle. is it really necessary to set up 400 points unaffected italy could be embroiled in more political turmoil? probably not but it is happening. >> economic output is nowhere near its 2007 levels. it has low productivity growth, high labor costs in that country and what it did was the greek model, to borrow heavily in the bond market and support and unsupportable government business. charles: this guy they put in charge of finance, carlo, his nickname is mr. scissors, interim prime minister with a reputation for cutting public spending or demanding that.

we know to your point that these countries are loath to do any spending cuts despite the fact they have these crazy debt levels and even though italy's economy is going okay these days. ashley: hasn't grown in 15 years, since 2003. liz: can they pay back the debt? the majority of their debt is held by individuals in italy and the banks in italy and the ecb. this is a crisis that has been under the radar screen for some time and popping to the surface due to lack of stability of the leadership of italy. a before we had an election in march, the 5-star party had 30% of the vote, 7 present more than last time. 17.7%, up 14%, the traditional center-right party at 14%. without a doubt the voice of italy is saying we want to move away from the establishment to snatch away their voice like this.

we have seen this going on with brexit, opposition to brexit. ashley: they can't accept the vote was to get out of the eu. there will not be a second vote. it was on march 29th, next year the uk is out of the eu. the big fear in italy as this will only stoke the fire of more antiestablishment populist people if they are forced to do another election which is remarkable, you just had one, you elected people but it is the way they form governments, they go back to the polls in september and the populist parties could come back with a stronger mandate and the president would be unable to stop or get in the way. liz: italy growing at half the rate of the european union, the european union is growing at the rate of crabgrass coming italy growing at 0.9%. that is a problem economy. charles: germany have a hard

time explaining why they are excelling in other countries are not. our next guest cms liberal leaders helped create the city's homeless problem and continue to make things worse, joining us, americans for limited government foundation. explain to us how seattle is the creator of this homelessness issue which is the worst in the country, only rivaled by los angeles. >> good morning, thanks for having me. you are right, they -- worse in the nation except for los angeles. zoning laws make it impossible to build homes, high-rises, and we saw a couple years ago when they passed the nation's most stringent minimum wage law, and $1300 a year. everything is making it worse. charles: they came up with a compromise but they are penalized for success. a lot of large companies like

amazon and others push back against this. is this going down the same path that brought higher minimum wage? >> it is going down the same path. i am a marine. i use euphemisms quite a bit but this is doubling down on stupid. you know what caused the problem and you're doing it again. you know taxes cause this problem, access regulations cause this problem so you target your biggest employers industry that generate the most revenue from you. they are going to move, they are not going to open new shops, they would go across the county line to the city line and it will make the problem worse. charles: i want to ask, it was shameful but there was a point where seattle is implementing hostile architecture to deal with the homeless, putting extra arms and benches so no one could sleep there. they fenced in the areas on their underpasses, went to war with their homeless after

creating this problem and that was shameful, wasn't it? >> not only did they do it, they put spikes behind doors underneath awnings where rain couldn't get to a homeless person, now they put spikes so homeless person can't stay there. it is her principal what they did was they created the crisis and went to war with people over the crisis and now they will create more homeless people. charles: one of the wealthiest cities in the world, thank you, appreciate it. wants to bring in mike murphy, we have them on the phone, we saw you earlier today and started under pressure but this selloff, one of our guests said we saw stocks being taken out, is there something perhaps more sinister we should be worried about? >> i don't think so. as we said earlier, i think you can look at the financials,

they are getting hit hard with concern over european banks, that is what i'm looking at. these things come down, you look for opportunity, don't bury her head in the sand. charles: i hear what you are saying, goldman sachs down 3%, $7, stock has been an underperforming, this is supposed to be the year financial did well. once the fed started hiking rates it would create an amazing atmosphere for them and we are not seeing it. is there something else we should be wondering since they are not going according to script already? >> absolutely right. maybe what they were pricing and was what is going on in europe, maybe more geopolitical concerns but as you know, we have been doing this a long time, sometimes we have to look for value and invest and be willing to have a timeframe so i would much rather by city of 65, and that like the 350, that is where the value is. before we are talking value versus growth, and ongoing debate for a long time.

another issue seems to be this market, you have to commend the fact that he was able to climb off of the canvas several times. a couple weeks ago had an intraday low, reached the 200 day moving average, that is a trap door. it rallied after that but on the upside, ashley made this point earlier, seems like wall street is looking for a reason to be afraid, to sell off the market. when do we get out of the cycle? >> good question. there is no way of knowing. i look at the earnings, the concerns in the us. we are seeing the economy growing, small and medium-sized businesses, feeling better about things. i look at these things, we have been down this road with european banks before and it worked out okay and the same thing is going to happen here. i am a buyer here. charles: we appreciate it. mike makes the point, a most

important point people need to realize, go back and look at what is in your portfolio, we just came out of earnings season. did they go higher? did stock go higher? you want to stay in the stock no matter the pressure. people need to say a loser is a loser and be afraid, fundamentals, doesn't feel like fundamentals have had a role in this market. it is geopolitical. liz: the u.s. s&p 500 companies their revenues are up 8% that's double the average of 2011 and into 2017 when you talk about fundamentals and we should also add to the italy story spain is in a political crisis too. i think they have an election coming on. ashley: on friday. charles: and he has the idea that perhaps you could see part of the country even break up. ashley: sure, they seem to

follow that one not as much of a populous issue in spain as it is in italy but nevertheless enough to get the markets spooked. charles: dow jones industrial average down to 385 points i hand it to neil cavuto. neil: all right thank you very very much we're following all of this charles including what's going on in italy and the confusion as to its attempts to form a 65th government since world war ii no country has had more and of course that country is a long way from settling its problems this is not just greece and between that and what's going on in spain those are two big economies that are in a world of hurt here and that is meaning a world of hurt for the euro against session lows for the dow down almost 400 points anything financially related since they have exposure to that neck of the woods which by the way is all of europe they're feeling the pinch right now and the fact of the matter is that even with the losses today, we are still looking at gains on the month. that's because everything here is fine, as we move