shameful protesting a policy that trump administration ended that is all morgan rich and adam shapiro that does it for us "varney & company" is coming up next. i know you have something to say about lady liberty protester. [laughter] >> we'll see you soon. hi i'm charles charles payne and we have amazing store stories for you today but there's plenty of axon wall street. future is pointing significantly higher now -- we've got two stories with this whole back drop right we've got the jobs report. we saw adp report came out in last hour. 177,000 private sector job added in june and i dug into numbers sol really, really good stuff there you're going to appreciate and, of course, tomorrow we get official government number from bureau of labor statistics plus, about the tariff war with china goes into effect on midnight china vowses to retaliate i say

that they already did, in fact, micron on tuesday banned from selling products in china by chinese court that says it violated of one of its rivals. says that company has been technology for years wait until you hear that story and belittle over the supreme court no, ma'am e knee president is report drink narrowed its choices down to three front runners but there could be a dark horse. senator mike lee has spoken with the president about a possible anonymous and ted cruz is the right guy for the job we're talking to senator lee former chief of staff later in the show. so another busy day for politics extremely busy day for your money. but we've got it all covered "varney & company" starts right now. ♪ enough so happy for tours plan

to visit the statue of elect now what exactly went on here? >> path tray patricia tide herself to at the the too of the statue anti-trump anti-border separation of family protester up there threatened to push cops and ladser off. shutdown statue of liberty for a number of hour 3,000 turned away faces potential charges of trespassing. disorderly conduct, she only got done after convinced her that those vents could blow out and she could fall off so -- the police have recommended charges 22,000 visitors on fourth of july visit statue of liberty she was hostile and again she was antagonistic to cops but developed to get her down. you know being you were with here during 9/11 people are very protective of the statue of liberty. there was fears terrorists to

attack it is a beacon of light to people arpgd wold for this to happen, people across the country are outraged that they've taken it to this level -- really threatening a beacon of hope for the world over. >> folksing a roin the left keep pushing to the point of point we they're hurting their own cause. >> trying to turn this into trump hurricane maria moment. track the polls and get back to you on that. quick check of the futures they've been high all morning long. remember it is a busy two day folks a lot of data out today and then tomorrow that big jobs report. joining us now fox news contradict tore john, now let's talk about the jobs report that we saw that adp number but prier months were higher i love goods producing job that's what i call looking great again. what is your assessment what about it might be and what would the impact on the market be? >> i think the number is going to be neither this -- or next one about 3.7 because it

is 50 years since we have seen that since lyndon johnson which was after 64 kennedy cut that was in a decent economy. very similar to how tax cuts came about now. now they have a higher gdp but a growing economy then as well so it's a very -- easy comparison that you see. i think that's going to be huge politically into the midterm but this economy right now charles is hitting on absolutely all cylinders and job number whether it is in line tomorrow or whether it is tbing to be -- beat expectations i think we're going see 3.7 that's a huge number. >> what about the hourly wages it feel like imagine pick number may be 2.9% that's when the market negatively reacted earlier in the year year over year job wage growth. but at some point, i mean, you can consider feels like wages should be skyrocketing higher. >> yeah it has been a bit of a

conundrum as tight as it is right now. s have gone up in certain places you look in west texas it makes no difference there. you can find a job doing anything out because of the oil and in certain parts of the country wages have gone up significantly overall start to see some. we have inflation from a sick-year high and seeing wages go up somewhat. i think we're going to see that significantly more later in the year because the job market is so tight. >> next one i want to talk to you about micron getting raw deal from the chinese government, in fact, their court system over there on tuesday found them liable for infringement with deep roots into china, in fact, they have two companies operating out of china, and they're going to go public with them pretty soon here. it's to me is remarkable the stock -- was down big on tuesday all tech stocks down big on tuesday l bees of market on cap loss but also signals that chinese government is willing to use

anything at its disposal including legal system l to justify the property. >> i agree charles this is incredibly ironic look this is exactly what's going on with china. look it ships about 50% of chips into china and 0% of chips used in china for handset and devices comes from outside of the chinese tech economy. so looks like micron had their company in taiwan they have alleged for some time that had the chinese have stolen their technology looks like the chinese according to micron if this is true they stole their technology, patent that technology and then sued micron for very technology they sold to begin with. this is an incredibly ironic scenario proposed be the chinese government ensuing micron looks like they stole the technology from to again with. j it is beginning to be 26% product but i think that the most important aspect here is that, they sent a signal to your

point, and this gets being to what the trump administration most focused on by the way these tariffs that go into effect tomorrow don't impact made in china 2025 those go into effect but that's the essence the idea that china wants to control the world technology, and that's fine it is a great all bigs but they shouldn't be allowed to do it by stealing billions of american i rks. >> absolutely they're in a couple of things that are bads, though, one belt one road initiative where they're loading up merging markets with what they can handle and taken a port back because they gave them debt they knew they couldn't this is how their expanding their influence and this ises worse as you mentioned charles this is going on for ten years too late to stop a lot of this. but you have to do it at some point. and i think this is the real problem that we have with china right now. the one issue that i have with the administration is i don't think tariffs is the way to do it. i think we need eu and our neighbors right now to help us with this problem that we have

with chinese intellectual property theft but we're now fighting a war now with our neighbors and with eu. i don't think it is right time to have this con current trade war going on with the world. >> taking that back to -- back to what started war in the first place china rewriting history. but this time they're ones who are aggressor. you're coming back later in the show. tack to you then buddy. chinese tariffs going into effect midnight tomorrow and warning retaliation and joining us so i know you're in fan of tariffs but big question, of course, is how do we curb china's belligerence gone on on republican and democratic presidents it look like the usual bulletten up states craft and meet and shake handle and point fingers it hasn't worked. >> the first job of a medical doctor is to do no harm to the patient and pretty good role for politicians easy well and donald trump deserves so much credit

charles for this economy that's taking off. you just gave some of the number but i'm telling you and i both know these tariffs these trades wars will raise consumer prices on americans. that especially hurts americans on fixed mechanic, senior citizens a lot of blue collar workers they get hit hard as prices go up and you mention the basin. we need pipeline capacity. well number one part of pipeline and what, steel we're already seeing steel prices that are 25, 35% more for rolled steel that goes into a pipeline. don't harm this economy that's taking off. i like the the approach that mike e lee you just mentioned mike lee lee davidson approach and mike plea is saying good conservative sender he's saying congress ought to be a partner, the president whether it is a president of the democrat or republican party they should not have the ability to pick and choose winners and losers from a 15 trillion dollar yearly economy charles. >> let e me jump in because

okay, what i'm asking, though, is -- that solution now, a lot of people say just now john lei field should have our european partnership be helping us. you're saying congress should be involved. i think that american public believes that a european part are useless that they don't step up to plate that they're gutless. listen they don't want to get out of the iranian deal but help against china be honest about that. it is as far as getting congress involved do nothing congress objectist congress president trump will be wasting its time trying to get everyone involved. ingdz where you're come from but how do we get china to stop if we don't take this approach? what else do they respect? >> i'm telling you the trans-pacific partnership was not a perfect agreement we know that. it had real problems but agreements like that are far better than having guys or gals sitting in an office in washington, d.c. and saying okay let's protect steel but we'll let other guys soybean farmers in america get pongedded by the

takeoff from these trade wars. we can't give politicians of either party. even good folks who are doing sol good things that much power which is what we're doing with these trade war. in the tariffs an they're not say we need more engagement and protectionism charles we know it. it always feels good. you get to kind of beat your he's as leader and go i'm going to stick it to those guy but you and i both know you're sticking to american consumers to pay higher prices, and eat into the tax cut savings that so many americans got last year. good things are happening in this economy. due in large part to the president -- and let's not undermine it with these tariffs that wrong way to engagement may not be as fun asy but a more practicive way to go. : i don't to say this way is wrong but i know that other presidents complained to him and we've seen millions of jobs leave this country and many jobs karatted by free trade and

international trade agreement. >> ask average whose wage hasn't gone up in ten years. i would love this consideration and get back real soon i'm sure. all right folks real quick let's get a check of the futures. equity markets have been looking higher all morning long not up to highs of the preopenings part here but you expect that preopen anxiety nevertheless board looks pretty good. i want you also to check this out. let's say unsportsman-like conduct tampa ray outfitters throwing a tantrum in dugout after he struck out in marlins he took his frustration out by destroying one water cool we are a bat. he punched another one. the marlins went on it beat rays 4-0 i don't know why he department do great -- >> use that energy at the plate. looks good. here's a headline for you. drinking coffee could lead to a longer life that's right according a new study published in a journal of american

medicine, dr. marc siegel will have more on that later this hour. cup of joe is going to bring with him and senator ted cruz says his colleague you tell mike lee is great bike to replace justice kennedy on the supreme court former chief of staff will join us next on that.

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president trump meeting with possible supreme court nominee senator michael ian and look at this headline from senator ted cruz on foxnews.com. mike lee is the best choice for the supreme court. joining us now former chief of staff for senator lee, so how do you think the meeting went boys? >> from what i understand it was a very positive meeting, it really comes down, obviously, this is president trump's peck and i think what the president is looking at is two things one he's looking at his legacy. corp. such was important pick for the president this pick is legacy pick and looking for

someone to be kind of how scalia was to reagan. that's what this tick is going to mean for the president so he's taking it seriously that way. the second component is confirmability to move through the senate and it is one of the areas where i think senator lee does have an advantage over both judge and also barrett is that he has these relationships in the senate. that really open pup the map not just the suge san collins but not just to the red state democrat, there are 36 democrats in the senate who have cosponsored bills with senator e-lee. dianne feinstein workings with senator lee on indefinite detention pat and cory berk and dick durbin on criminal justice reform so all thing around the law in the constitution so i do think he's the dark horse for sure. but there is a very interesting case to be made for senator lee. you mention scalia and reagan -- can you go into that a little bit more for folks who aren't familiar with that relationship

and why the legacy is stappedz out so much. >> well, i think with what judge scalia did for reagan was he became that anchor point on the court in terms of conserve tifn values and constitutional principles. i think that thing that president trump worries about the most is that we have -- the like many republican appointees to the court they tend drift to the left as they get on to the court so i think that's something that president is really looking at. clearly judge cavanaugh is the choice of the -- elites the legal elites anyway in washington, d.c. i think judge barrett has very interesting stories she's not as she hasn't been on circuit as log. >> she excuse me for it because we don't have a lot of time but the idea that she's briefly been vetted does that help to early appoint the -- the ability to be confirmed quickly? >> yeah. i think that does help her and, obviously, she had a

head-to-head with dianne feinstein and how that might impact her on the court so that does helper in in that case and comes down to those three in the end and president has to where he want the this to one to play is it the scalia pick to get someone -- i think senator lee greatest quality is his judicial humility working in branches of government he respects them all i think that's going to be the case coming down the home stretch. >> well we know on monday boy great see you. thanks a lot. >> thanks charles. another quick lock at stock futures opening up here in 11 minutes dow jones industrial average higher, in fact, all of your major i understood sees higher and nays dak crashed from the high on tuesday after that news out of china micron we want to see that lead the way today as well. and then there's this -- woods gets rocked by its agent over e-mail on the fourth of july. and it is all over his politics

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to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. >> ahead of ge and latin america has been arrested in brazil suzanne you've got details. >> i do. so this comes after investigations corruption investigations handed down

prison centers for former president of brazil richest man in brazil and sentenced as with so this goes being to zini jr. before his tile at general electric this is what ge wants to make very clear while he was working for phil's medical system. phillips medical system and he's accused of siphons off cash from public health contracts during that time. and rio de janeiro so ge saying this is nothing to do with us but something way back when. he wasn't working war firm. >> also big news -- this morning actor james wood dropped by his agent that happens all of the time but woods received announcement in e-mail on fourth of july tweeted out e-mail which reads it's fourth of july i'm feeling patriotic as he wrote. i don't to represent you anymore. i can go on a rant. but you know, what i think -- then what happened? >> oscar nominated actor tweeted out following deer ken i don't

actually know what you're thinking. i was thinking if you are feeling patriotic you would appreciate free speech and one with right to spook as a individual and be it as it may hard work and on my behalf a 71-year-old actor remember he said last fall that there is -- conservatives are effectively blacklisted in hollywood. there's not really a list but they don't get work. he said he was democrat -- he was a democrat until the monica lewinsky scandal. and bill clinton was -- vocal on social media. you know, so he's a tough guy but he's very smart people really a lot of followers -- behind him and i think you're right he does shine a light in very few people can in hollywood. opening bell coming shortly a lot of apings here with a major reversal to downside on tuesday. right now we're holding up and off highs with preopening session but you can see robust start. more "varney & company," coming

up.

all right so opening bell coming up in just a few few seconds let me just set the staimg for you baa i have to tell you this market was looking really good earlier in the week monday, tuesday we saw canada over the last week come out with tariffs

the market took it very, very well and surge into the close, and then tuesday we have a great session is until china. sort of pulled another fast one and a lot of anxiety because it gets real at midnight tonight right now, though, we're looking at the opening bell your first print up 110 to 134 points and populating board so far no red on the screen led by merck and something of a proxy boeing at 5 and key for the trade retaliation and trade war with china and, of course, a lot of people are saying what's going on with the financials they have to start moving. jpmorgan among early leaders thus far. that's a of the big board let's talk a look at the s&p 500 another strong start up almost 6 points on the s&p 500 which, in fact, is higher for 2018 and then a nasdaq it has been powered by technology stocks it was a biggest loser then on tuesday.

between myron and texas strums others i counted over 10 billion in market cap losses alone getting that back today. and then oil taking a look at oil yesterday twump tweeting out to likely see scraib do nor and think he slayed emir putin a subject as well. pump more oil because price is lower. there's barred from selling products in china. by a court ruling that set that taiwan purple was infringed upon by micron we know it is a joke but what happened to the stock wasn't a joke and then there's netflix a serious jugger naught using netflix to watch video content and cable and broadcast tv than ever. really amazing stuff. joining us this morning elizabeth macdonald john and jack, all right folks tariffs going into effect and retaliate jack. we're 34 billion want to at

midnight. where does the end game where is the end game? >> yeah. i mean that's a great question. you know, from our point of view from trump's point of view, this isn't about steel. this isn't about soybeans this is about intellectual property and the threat that -- china, technology, 2020 poses on our technology platform. especially since we believe both democrats and republicans believe that it is built on american intellectual property. >> you know to jack's point wall street journal has an interesting story that china has created nearly 50 startup 50 unicornses in last five years qort at least one billion versus silicon valley 57. so -- you've got to wonder do they get all of a sudden 08% of all of asia unicorns only in china in last five years so startupses how do they --

when to comes to artificial intelligence so you're rights about these unicorn companies worth a billion dollars or more so suzanne here's the thing. china is vowing to retaliate o.c. president trump left out there we can bo to 200, 400 billion we have that room we dimmed orr 500 billion in imports from them. they can't retaliate tit for tat to goods or services so how do they otherwise? >> measures you know so still walking, import agreements or getting some of these u.s. made goods into the chiendz chinese market but i think they have shaken it off because it has been priced in it is not that much in materials of 600 billion trading relationship and we're also forgetting that they made big moves and peel roll their eye it's a big deal when companies trade with china. and as used globally they strengthen it instead of weakening it had is what the strategy might have been.

>> to that point, the people bank of china has taken a lot of ax and last month they post 60 billion into the economy then they told bankses to lend 100 billion in it and what they told them specifically they have to do is debt in return for equity that underscores china has a massive debt issue with some problems so while we always focus on our market and reaction to our markets we should know china is feeling pain as well. >> yeah, and charles happy fourth to you british friends and maria call it happy treason day so another perspective where you are to reserve requirements on banks so they're having massive default in their economy right now. this is a managed economies this not a free market economy that is a huge difference and we talk about theft of intellectual property they're spending 150 billion i know we're talking about micron in a second to get that chip manufacturing sector up to speed with the rest of the world. but government is doing everything they can to mitigate

the fact that they're not producing intellectual property as quick as the rest of the world and done a good job of stealing intellectual property not sure how we slow that down with tariffs but china is worried about their economy going forward with tariffs coming swron board. >> you brought up made in china 2025 and this is why the micron story is so compelling don't forget that a state company in china wanted to buy micron three years ago offered 23 billion. they didn't want to do the deal and said they wouldn't allow it. since then so many instances of them e stealing technology and us krrgs, and so -- to me it is so outlandish when you get a court ruling like this but it point to me jack that they are derled somehow by hook or by crook that old saying to reach that goal of tech come to nangs in the world.

the research they've done in solar technology has enabled generation of solar power down by 80% this is something that the u.s. had to lead. we never really got jump started here. we didn't get the backing whatever it is, china took that ball ran with it and for that reason, you know, they're now the leading provider of solar panels to the world. so i do think this it's -- it you know a threat. and one that, you know, some china rightfully has another, though, of course, as we've all said, you know, the foundations of which are built on theft. >> sure. hey guys let's fast forward to tomorrow job report that is going to be huge around block for prediction starting with with emac about what do you think tomorrow? >> 180k and 185. >> wages -- >> specific. feels like we're duped for a member like 2.93%.

hasn't happened yet. above 3% because jobs macialt is so tight that makes democrat policy of, you know, federal jobs guarantee -- you know irrelevant when you have nearly 7 million job opens and no workers to put them in there and shortages in other sectors as well. >> richard saying that we should have these sort of, you know, free cash, free job guarantees everyone is echoing that but suzanne 6.7 million job openings we adopt have many to fill those jobs so it is about skills things like that. but these wages if they go up that much could it rattle the market? >> i don't know. i think we're due for it calling 2% -- and, in fact, this is a longest stretch that we have not seen wages keep up with swrumps. so you want to ask my producer, about that -- closer to 00 we've been on track for the last two months. >> i'll tell you my last go up to jack to get his number.

>> so consensus view is 185 the adp report came in a little bit light to i'll go to the low side to call it 175 to 180 based on wages, though, if you look at the quit rate. this is number of people that are just volunteerly leaving their jobs that would suggest we could get to 3% wage growth from the next couple of months. j john. take this job an you know, and more american that say this, obviously, it puts pressure on wages they understand that they're valuable particularly they have skills. wageses have not seen that in the last quarters because you think they would go up with a tight labor market but start seeing that. you know something that's interesting you talk about job openings they can't be feeled because of the tight library market. if china came out and said okay we're going to take double amount of exports we don't have manpower to produce that right now so that is a tough position for us saying you need to take more of our goods we can't

produce that many more goods because we're at a tight labor market until we see productivity increase. >> so watch the china central bank devalue to make its exports cheaper to keep that. i love that point and i think china will be smart to say 150 billion because they want to change from economy to domestic economy and john let me get a number and hold you accountable next time i see you. >> that's terrible -- ilk go with what liz said 180 because i don't think number will blow it away. i think the biggest thing charles is down to 3.7% that's the low nest 50 yearses that huge at least politically going in 3.7 not a big difference but going in the midterm 3.7 will be huge. as long as we get more people into the labor force that's the ultimate one. i'll go 220,000 make sure suzanne you write that down. >> i'm writing it down. jack, john thank you both very

much. remember toys"r"us at holiday catalog now they're gone. oughts big retailer might be mailing one out like it. you'll be surprised who that is and also trump reportedly advisors about invading venezuela and ask matt king about that, he's coming up, next. at fidelity, our online u.s. equity trades are just $4.95. so no matter what you trade, or where you trade, you'll only pay $4.95. fidelity. open an account today. you shouldn't be rushed into booking a hotel. with expedia's add-on advantage, booking a flight unlocks discounts on select hotels until the day you leave for your trip.

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nightlight toilet seat with consultation, or visit kohlerwalkinbath.com for more info. all right folking checking on big board 129 points and dow really in trading range but it always seems to hold at key support levels had is good. meanwhile amazon -- wants to sent out holiday toy catalog of its own and go to four of the new york stocks exchange. >> filling void about toys of us

and stores have been closed recently filed for bankruptcy. so where will everybody get their toys well amazon is looking more and more like a brix and and bought whole foods so reportedly they'll be mailing out toy catalogs handing them out at the whole foods. they want to reach millions and millions of people that you can bill your toy void and go straight to amy dison to have your wish list and many people remember toys"r"us big bock that it had gadget and toys and made a holiday wish list so, of course, wal-mart and target, target is making more shelf space party city is going to have popup shop and there's a battle for the toy market. where it was a shop first -- back to you. >> my five-year-old granddaughter tells me it is close can we be to target i remember your favorite toy was easy bake oven wasn't it? [laughter] >> indeeds and that's what i blew it up. i should have known then cooking was not my thing. 100% right.

>> thank you very much. talk to you again soon in the meantime business insider reporting that elon musk ordered tesla engineers to stop throwing a critical brake test. >> reuters reporting too in order to hit that 500 a week production goal of model 3 by the end of june, the -- report is saying that they stop to brick and roll test tesla saying wait a second we have two method the we our own track test sight where we also test the cars accelerate to 60 miles per hour and then break to 5 miles per hour but this report down to the 50 day moving average which is usually cell signal that came at this -- report and data point so tesla saying we're not cutting corners right with brick. other data point that came out is reservations for the model 3, to buy them are down. versus 455,000 model three

reservations last year now 420k. so that's the question that -- dges that's a red flag. that's the red flag too. thank you very much emac. secretary of state mike pompeo heads to north korea today joining us general matt king and pressure is on, the trump administration i'm reading that -- they're going to pull back from this all or nothing approach. and -- sort of i don't know be more accommodative with north korea is that the way to go? >> i think we're on a down course with them and surely have asked them for the location of all of their nuclear sites all of their ballistic missile sites to include their research and test facilities. and i'll make assumption that they haven't been forth coming with all of that and we haven't been able to verify it so we haven't gotten over first major hurdle which is kind of step one in the denuclearization process which is -- identify everything that you have. and i think that's what this trip is all about. i think that secretary pompeo will talk to kim jong-un and

very clear unequivocal materials that we need to have your identification and location and a plan to denuclearize to see specifics of it. he doesn't get that i'm sure he'll come back to tell the president then we've got to go to plan b and back to maximum pressure again and military preparedness for the possibility of a military option. >> these satellite images that -- that revealed here recently showing north korea reconstituting their nuclear capabilities at least at one site. certainly i don't think that administration had to be caught flat-footed by that. >> first of all they're reporting to the president on a daily basis what's happening in north korea and he has a lot more information that was -- than what was reported in the media and that is unfortunate that we've got, you know, intelligence service agency given that information to the media. i mean, that is --

a problem that we seem to have persistently and so dead wrong. so president has got to put forward that information charles because way beyond that and i don't know what is happening with that construction. that may have been something that had been in the plan for some time prior to the singapore summit don't know at all but the fact is, we need to get the plan and the specifics for the denuclearization program if there's going to be one. and that's what i believe this trip is all about by secretary pompeo. >> next one for you general president trump reportedly asked his aferredzs about invading venezuela last year what's that idea on that? >> well i don't think president should really be held accountable for what ifs to bring up in the confine of their office with their staff. that's -- that would be unfathomable. and i think that's all of this was was sort of a what if, and i

think out loud sort of thing which -- and what i understand hr national security advisors able to provide him with a coherent answer that president seem to accept. you know, although general, i mean, you know listen 1.5 million refugee on verge of being a crisis bigger than syria and whenever this happens everyone says america should have, you know, open borders maybe start to hear we should start to somehow, you know, accommodate these folks. certainly, a potential civil war -- right in our hemisphere so -- white house has to be anxious about what's going on down there. >> that's not to they're not they are exercising angst and working with allies in the renal and i think venezuela neighbors certainly have got the bear some of this burden before the united states would bear this burden seems to me and i think those

countries there certainly recognize it. there's a major, major, major issue here. that's going to have major spill wroafer to them and they're experiencing that and number poem that are fleeing -- that country is pretty significant and it is going to continue to increase. >> general jack always appreciate it thank you very much. >> good talking to you charles. let's take a quick look at the dow 30 bolt out of gate wondering here a little bit couple of names lower but nike has biggest winner this year rebound after property taking top of the leadser board there you can see keep looking for you there. meanwhile a rival to the epipen looking to give a run for their money and may be cheap or but will it do as good of a job as saving lives is? remember having a severe allergic reaction has been filled with controversy. we have dr. marc siegel coming up next.

to give venture cardholders 10 miles on every dollar they spend at thousands of hotels. all you have to do is pay with this... at hotels.com/venture. 10 miles per dollar? that is incredible. brrrrr. i have the chills. because you're so excited? because ice is cold. and because of all those miles. obviously. what's in your wallet? i'm not sure. what's in your wallet?

>> watch out a rival to the epipen is hitting the market joining us now dr. marc siegel is this a big deal? how big of a deal? >> under the category of fda allowing more on to the market more generic so they keep with each other, the price comes

down. myland compete with itself because last year as you know they got so much flak on epipen so they have a genetic that's less than 350 for two pack and then another one that cvs has 110 for a two pack and one you're talking about today had is coming out by company called sndosis a new system of injection charles so far looks complengt it is going to lead to many, many other medications not just the epipen but opioids is going to be used by the same system so in other words it is not just the medicine the adrenaline but also how we administer it delivery system and this new delivery system is definitely competitive with the old one. so again more options more choice, more choice the lower the price. of course they bought epipen from and jack up the price which was a shameful practice and they

got caught. it was big time next one for you drink coffee -- live longer. you buying it? >> in a way. [laughter] >> yes. we're of caution here. >> so here's what i want to say 5 hushing ,000 people were studied in the united kingdom on this. i wish stuart were here -- [inaudible conversations] it is but 500,000 people studied and they found if you drank more than two cups of coffee a day you were 12% less likely to die over ten years here's why -- because coffee decreases risk of heart disease. decreases risk of breast and colon cancer and risk of uterine cancer, prostate cancer all have been shown. why because coffee has antioxidants in it, coffee has great chemical call flavonoids in it. but this study is talking about eight cups a coffee a day with three a day you get a 12% advantage. but you may live longer but risk

annoy everybody in the process because you're -- coffee fiend being irritating. liz was pointing out that other famous artist -- 50 cups of coffee a day i say -- have your two or three cups decrease your risk by 12%. don't go up to 8 cups just to get the additional 2%. eight cups reflux -- 20 -- i mean -- >> i'm kidding. 8 charles beyond two or three a day you're risk reflux, heartburn -- >>s that the real big news here doc -- a big believer in coffee and it has health benefits. i want to check this out folks a man caught on video attacking texas teenager for wearing make american great again hat more on this coming up, and tom celebrating our country independence by attacking you guessed it our president, you're going to see his outrageous statement. more varney after this.

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we hope you all have a great fourth of july. you're watching bernie and company. store is out today. secretary of state mike pompeo he's going to north korea. it's been almost a month since that historic meeting it's time now to start getting the details ironed out. we've a guess that says north korea will betray present drum. it's on the road. he's headed to montana. we are going to talk to matt later on this hour. and democrats using the july 4 holiday. tom perez writing that are most fundamental values are under attack. we will show that to you. people are not watching the world cup.

brian is going to join us later. at the end but just haven't caught it yet. you're watching the second hour of bernie and company. breaking news ism non- manufacturing data. look at that market move. they are looking for 58.3. 101 months straight of expansion in the service sector. that's about eight years worth of expansion. the question is will they raise that rate range higher so we will be watching that as well. look at this a dollar is strengthening other currencies weakening. are they doing that on purpose. a powerful number right now

for the services sector. anything above 50 is an expansion. we also now have the latest read on mortgage rates. averaging 4.52 percent in the week. and that is down slightly from last week when it was at 4.55. the ten year treasury was down to 2.83 today. the yield curve is narrowing. that always housing prices have been up. it has added $9,000 to the average inventory. despite interest rates going up. you know bernie and company checks them every day. there is a new report that

says apple might release iphones and blue bread and orange this year. facebook getting a boost after their analyst upped their price targets. where had they been. two proxies for the trade war. also helping the drive. we know that u.s. tariffs on $34 billion of chinese goods is asked acted to take effect tonight. the markets are up though on that news. and it's actually been holding up pretty good even after china's retaliation last sunday. it seems like the market is starting to take this a little bit better. we will see what happens tomorrow. tuesday was a really bad day. i've been telling you since day one might worry is outcome. my worry is also what are they

going to do. it seems like we are not getting reciprocal trade. i'm sorry but if we start slapping those big auto tariffs on fear of the unknown for me throughout the whole auto food chain. i'm keeping my fingers crossed that they get this right and everybody finds a happy place. we have never tried this approach before. some people talk about smooth hauling. 20,000 and tariffs. a global recession. we are seeing something that reversal. that happened because it was blocked from selling some of its products in china. by chinese court decision. micron stole their ip protection. we know it's a joke but it does suggest that china might be willing to pull out all of

the stops in this case. >> two words, take that. that is what china is saying to present trump and i think we are going to see more of this. that is my worry. we've always have tariffs. but they had been kind of quiet nobody talked about them nobody was tweeting them out. and they have marginal effects. when it's front and center every day all the other news networks are doing it from start to finish. i carries weight and again we already have a market has been going for ten years. the economy is strong and strong can be. i worry that that they will erase some of that good stuff because of that. if we get into one. i'm telling you the market is gonna take a haircut which means the wealth effect takes a haircut.

i just hope they got it right. and there to find a happy place that a given point in time everything is going to be smooth sailing after this. one of the biggest topics on wall street is short-term is him. the major corporations and the biggest thought leaders. the folks enjoyed that. in judging and judging the effort to open up markets. china and india well have the largest economies in the world over the next ten to 20 years and we want to make sure we had equal and better and fair access. when they bellyache about soybean prices i bring up to the fact soybean prices are down 50%. not one single article ever complaining about soybean prices. i just wish they would give the president a chance. more than just a couple of days.

we are all in the audience right now watching. we are giving a chance. we all have our opinions and again, i'm all for free trade. in 1,000 percent in your camp. there are bad players around the globe including some of our allies in this. i've no problem going after it. i just think that it could've been done in a quieter way. and at the table behind closed doors. but then again i don't run the show. donald trump does. and i go back to my tried and true keep the fingers crossed. bad a trade is not good trade. i'm all for getting it right. thank you. >> there is a new gallup poll with 47 percent of people are proud to be american that's a record low in fact some college students they feel the same. will take. i'm not proud of america or what we are doing.

at the end of the day i guess i would say no. i think we need to stop thinking where the best nation on earth. is not accurate. coming up right now. campus reform .-dot orca. we have this or of debate. the first time she had been proud to be an american. i don't know what that's all about. but we know there are a lot more people that are saying it. i will tell you what. i know exactly what it's about. we had been we've been reporting on it for a while. it is the anti- american sentiment that is on these college campuses. they preach and into an american agenda. we reported on it when broward university had american flag

as a doormat. after the election of donald trump. this has been going on for a while. it is the culture it is also what the professors are teaching these young people. i know these movements were in schools everybody gets a troves be. before it was like all about being number one and now sort about we are all participating. no one's better than anyone else. we are teaching young people that you really shouldn't work that hard. if you roll up your sleeves. what is hard-working americans

do. we roll up our sleeves and we try to make this place a better place. instead we are creating a generation of gender of young people. everything should be given to them. this is such an entitlement generation. and although i would love to blame the young people this is what they are being taught from secondary education all the weight till they get on the college campus. we have have the luxury of thinking this way. in other countries they are working hard. they want to embrace all the things that america provides. is this the irony that be in such a great country to begin with people take it for granted. that's a great point. is not just the people that want to bs it's the thousands of people trying to go over

our border that want to be in this great country. i think these young people can have a rude awakening. there's all these diversity positions being created to give the zen people access to a job. i guarantee you once they get in the real workforce they will have a rude awakening. always great talking to you. really appreciate it. joey chestnut once again. twenty-four hot dogs in ten minutes. he actually set a new record. second-place finisher taking home the mustard belt for the 11 time. we are looking at the video right there. that's from carefree arizona. they lit the sky about 300 feet in the air.

pretty nice. secretary of state mike pompeo. has been almost a month since that historic meeting in singapore. with a guess that says north korea will betray trump. and present trump hitting the road and heading up to montana. big sky country you will hear from one of them later in the hour. [music] it's time for the 'lowest prices of the season' with savings on the new sleep number 360 smart bed. it senses your every move and automatically adjusts on both sides to keep you effortlessly comfortable. and snoring.... does your bed do that?

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they are going to bid for it. we've a pop up in the non- manufacturing data. we are still obviously higher for the session. one of the loan losers today

announcing the ceo resigned after less than a year in that role. and then there is this. joining us now. the center center for the national interest. hearsay your say north korea well arbitrate present trump and lay out your case for us please. within the first three pages you can find one thing. the north koreans are liars. we actually got a report in the last few days that north korea may have as many as 65 nuclear weapons and probably four to five icm's that can hit the united states. i really hope he can go over there.

after a summit and three pompeo visits. i think the writing is on the wall. for all of the fanfare and hope. the epiphany. we just admit to ourselves and that their neck and in a change. what's can happen then. what present trump should do is go back on twitter. you need to follow through on that commitment. if you will not do that it's time for maximum pressure 2.0. complete oil embargo to release regulate them. no more exports from north korea. that takes a naval blockade. they should not be exporting any sort of labor.

we really had to tighten the reins on north korea. >> can they be stopped from their nuclear ambitions. and that is not enough though. i think a showdown is coming. if mike pompeo comes home empty-handed i think the administration really needs to ramp up the pressure. testing more icy bms. if you recall we talked about this. they actually threaten to detonate a nuclear weapon to

prove their nuclear deterrent. if we start going down this road the north koreans might have their own show of force. obviously i'm actually more concerned about north korea than i ever had been. the president reportedly ask his top asked his top aides about invading venezuela. he was thinking out loud and saying this may be an option. this is to consider and this happened in august of last year. then national security adviser reportedly talked him out of it. it could backfire. other allies in the region. did the threat set in place. like cuba venezuela uses it as a scapegoat. never mind that disaster policies. they are doing what cuba did they are doing a census to see

who is not living in their home so that they can take that property. they raise this as an option. has been struck down since. bat headline after bad headline. they are telling his engineers to stop a key test in the speed of production. those numbers they hit last week we will have the details next. ♪ a hotel can make or break a trip. and at expedia, we don't think you should be rushed into booking one. that's why we created expedia's add-on advantage. now after booking your flight, you unlock discounts

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that means there is competition of course in the space. in order to get to 5,000 a week for model three's they have to add on to shifts and a temporary production line that was erected under a tent. it is being investigated by the occupational health and safety division. is the third inspection since april of this year. that tent and temporary production line. it actually has the permits to operate. it's been critical in getting to 5,000 model threes per week. added 20% to rollout of those mass-market cars. it'll be like california. thanks a lot. coming up present trump days away from making a supreme court pick done with interviews so far we know not

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alright folks. we are slipping here little bit. this is what happened on tuesday when we have the big move out the gate. watching it closely for you. of course on tuesday it was the big tech names that dragged as lower. so far they are holding up pretty good. all of these major names it still looking better today. nike one of the top gainers today. brazil, france and england. there is a new survey shocked. i thought it was you two. everybody else in my house seem to watch you two.

we measure the detail in all of the digital intelligence. they had been around the longest. they just launched the tv service in the last year or two. they are still a trying to get up to speed. the debut from louis vuitton do you added those in as well or just the tv offering. i think it is people are looking for contact now. it's going to get into that as well. as well as just go on normal broadcast television. they had broken down the barriers they source it from all over the world and they show programming that they found in germany here that's very popular. it has really opened up the world and they have really broken down distribution as well. you can watch it in many other countries. all of the mergers from

traditional media trying to catch up. a few years ago people laughed. now everyone is trying to be that netflix model. we look at the traditional companies and rate them pretty low in digital intelligence. is there such a thing and it's a little bit off the beaten path. as an oxymoron. so much content. as one of the concerns with all of these services. it's already there likely. i think what netflix unlikely that digital readers will start to do. they just cluster the appropriate -- programming around different interests. they can produce a lot of different content to see a lot of different needs.

i want to talk about the smart home. everybody is talking about internet and things. what it means for companies that are in that game right now. who is winning. >> amazon was out there first with the acco devices and they have really proliferated a number of different devices now. but google recently entered the market. and i think the voice assistance is much more signet -- sophisticated. and apple is there as well. in order what we drink in terms of the highest iq and down would be google, amazon and apple. are you shocked at how disappointing they are in this area. i'm always amazed at how they enter the market. they were so far ahead with the iphone and ipad. with streaming music they really liked in the last few

years. they have missed a lot of the home automation. they are catching up on a higher end. they tried it do the highest end. it's much more than the other offerings by amazon and so on. the idea of connecting the entire home has its appeal this is the complete privacy as we know it. this is the final nail in that coffin. younger people will say it is a foregone concept anyway. overtime new technology comes out. they look for ways to make it more secure. you can always turn them off if you want too. some of them listen to you when you're off. thank you. now there is this. the declaration of independence getting a bad rap on facebook. they have apologized with the

algorithms. as hate speech and this goes back to liberty county it is is based in liberty texas. they would post it were posted on the website. facebook and one of the algorithms spotted. i think it goes back to that phrase india savages. they probably triggered the algorithms. part of the independent was part of the hate speech. it has realized its mistake and had that. and then you wonder why the conservatives always say something is not right. you could've gone out of your way to find out what was going on.

now let's blame the algorithms. or they have to program their algorithms. they are very good at pinpointing the pictures. >> let's leave it there. live on the radio. they replace justice kennedy. we know there is probably gonna be a hard time. how do you see this playing out right now. a finalist last time against that. he is running strong. he will be able to unite the party because the bush people are friendly behind him. they call it i don't think

so. and i think a lot of people inside the white house. they had respected away a lot of the bush people have done that. and what trump is doing and not doing. he gets present trump great critic and he thinks he needs it. and the other way when he doesn't. i would bring in this also. this is one of fiery female when we saw the female candidate and she has come out very strong and confident. and can you believe that she has to defend being a catholic going to notre dame and having seven kids. these are usually assets. for something to have this type of thing on her plate. it should be an inspiration. some people are finding a liability and i do think overall more pressure will be on senator michalski and collins than whoever the candidate is. the democrats feel it's an comment on these senators to vote against a republican

president who puts this conservative forward. we will see that very shortly. certainly it is the opposition i want to ask you about this. what you make of it. i think they had been exciting. and the build-up has been phenomenal. >> i'm biased. i've been playing soccer since first grade. i will be sending that. what bothers me the most is the time zone. where in television we are lucky enough to have a job. so are most people watching us. the games are at 9:00 and 1:00 or ten or two. even though we want to we had responsibilities goes on for three and half weeks. number two it's hard to find

fox sports one. it has been on the network that you're very familiar with. much more cutting-edge. i love this people. it's just harder to find. the u.s. is not being in it. i hate the way they break ties. it's like breaking ties. in basketball with free throws. you play it out until a team wins the game that was signed up to play. you have to strategize how to pull up attuned to not. but play soccer. don't decide it with the skills contest. that's what bothers me. after going for 90 minutes and then you have i have an idea of us just kick it around. that to me fundamentally has been the case. has got to change. the balls are over the line. they do have some replay.

get it to that point. i do think the biggest names i want america to win this thing that i can do it if they can't qualify. i love the idea about those kicks again. i'm not a soccer fan per se but i'm like what the heck is this all about. the new congressional candidate. they host with the socialist agenda. they would actually be really well in the midwest. will ask him if he agrees with that in the next hour. they are using the july force holiday to slam that. our most fundamental values are under attack.

americans for prosperity president is no fan of

tariffs. he told the press that while the economy is great trade work well only put a damper on the success we are seeing. donald trump deserves so much credit. they would raise consumer prices on americans but especially hurts americans on asked incomes. a lot of blue colored workers. and you mention the basin. we need pipeline capacity the number one a part of pipelines is steel. twenty-five to 35% of rolled steel.

don't forget about gold. looking pretty good today. it is up today. now back to politics. dnc chairman attacked the presidents policies in the july 4 message. voter rights are on assault. your opinion on tom perez's latest when people look

around. they are getting raises at work. messages like that sort of don't ring true to them. the over arching problem right now which has been the problem all along is that they just hate donald trump and they hate everything that he stands for. and while that is great for taking the basin and everything. you can't run a campaign just against a person. we have to you have to present something. i candidate that embodies the values that you are espousing and then you have to make it clear what the values are. and i can easily see donald trump winning election perhaps with less than 50% of the vote again. the hatred for president

trump. not only makes them overlook everything the great that's happening. in this particular case. he is suggesting that the supreme court they did something to harm something i think that is a dangerous slippery slope as well. the think about it. for the scenes at the border. there were scenes that were terrible. nobody likes seeing them and hearing them. they are being processed at the border. for doing something illegal by the way. nobody likes that step. but at the end of the day. it all sort of switched. the illegal immigration. it's a very complex situation. what do you do with families when they come to the border.

the only solution is to figure out a way to stop the flow at the border. they had beaten drum since early in the election campaign. you think that they might be able to put it together. they understand it's a very complex and completed situation. or maybe even ultimately helping with a solution. i want to look at this video. a texas tenet being assaulted for wearing a make america great hat again. these kids are shell shocked. it just goes back to the very beginning. or the scenes we saw of the woman climbing up on the

statue of liberty. americans at the end of the day they believe in law and equal justice. what makes us american is that we always had strived for that. and to see something like that. a big bully like that. using follow -- foul language. there is no place for that. and i think it backfires in a political sense. it also makes trump voters very upset. i don't want any part of this. i may not love donald trump but i think i'm going to vote for him because i like him more than i like the other stuff. president trump heading to montana. they are opposing that guy. we are talking about matt rosendahl. and we will be talking with

him next.

one of those candidates is now on the drum. who is running for democrat jon tester. they helped you out here. what are some of the things that you are going to focus on. i'm just can focused on how pleased i am to have the president come out and support my campaign. how can a person not be thrilled with that. i think the president is probably going to have more to say about john tester. and how he literally destroyed that. and did so with unfounded allegations that were proven

to be false and i will tell you the people of montana don't appreciate character assassinations. i spent some time in montana. what distinguishes you from your arrival. we have stark contrast. if you look at them. every year that they been in washington dc. and during my time in office i have reduced spending. we have increased regulations every year that he has been in washington dc i have reduced regulations. and the auditor's office just in the last year alone. i was the only elected official to decline my pay

increase. not only a $10,000 increase. he also while he voted against the tax reform legislation that put money in nearly every pocket. and voted against that he voted for the omnibus bill. to his own offices. we will carry it live tonight at 6:00 p.m. our time. thank you very much for coming on today. thank you so much for having me on. we had reached out to their camp. so far we have not received any response just yet. way ♪

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that's why we created expedia's add-on advantage. now after booking your flight, you unlock discounts on select hotels right until the day you leave. ♪ add-on advantage. discounted hotel rates when you add on to your trip. only when you book with expedia. that's it. i'm calling kohler about their walk-in bath. nah. not gonna happen. my name is ken. how may i help you? hi, i'm calling about kohler's walk-in bath. excellent! happy to help. huh? hold one moment please... [ finger snaps ] hmm. the kohler walk-in bath features an extra-wide opening and a low step-in at three inches, which is 25 to 60% lower than some leading competitors. the bath fills and drains quickly, while the heated seat soothes your back, neck and shoulders. kohler is an expert in bathing, so you can count on a deep soaking experience. are you seeing this? the kohler walk-in bath comes with fully adjustable hydrotherapy jets

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fine start, beginning with your money want to check the big board we've got more winners than losers by far but we've come down significantly from the opening moments in the market. in fact up 134 points, right after the ism non-manufacturing data was released so we're digging into why we're slipping here overall. meanwhile, the weekly oil inventory numbers are breaking out just right now, e-mac, give us a summary. liz: a correct up 1.25 million- barrels correct that it's up? yes it's up so this is a surprise increase in supply they were looking for a drawdown of 3.538 million that would have been the fifth straight week, now it's up so look at the action in the oil pits. a lot of this is, this oil price number as you know charles has been moving around china has been threatening tariffs on u.s. crude exports and we've got an oilsands outage in canada, iran is threatening again, so

this is it right now $73 hanging in for oil still at a four-year high. charles: especially on the eve of the major driving season so we've got a build that has crude down and i'm sure that's a factor and why the big board has been pulling back. i want to stay on oil and bring in fox news contributor jonathan hoenig, they made a huge move after the opec meeting and the announcement they would increase production. we've got near four-year highs so where do you think it goes from here? >> $100 a barrel, charles. i remember talking with you on f bn boy a decade ago when oil was on its way down back then we used to think of $100 a barrel as a floor. now it seems really like a ceiling lyme an in possibility. i think it's very likely for no other reason than trend and price. charles we've talked about this. trends tend to continue in the market and the price trend in oil has been up even in the face of the president himself tweet ing that he hopes that the

saudis increase prices that hasn't had an effect so until that changes i think the trend is your friend, and the trend is up when it comes to oil. charles: what about some of these factors now because things have changed over the last 10 years with respect to america's ability to turn these rigs on relatively quickly to respond to higher oil prices. does that become something of a self-regulating sort of, does that itself sort of put a cap on them? >> perhaps it could, but when you look at a lot of the factors charles i wish i had more names to offer you but there's plenty at a button's glance for interest for our viewers. the frackers are actually doing quite well even the etf's that follow that space and oil stocks in general are holding up even as the technology stocks that really led the market they've waiverred in the last couple days so if i was putting money to work i'd be putting it to work inexactly those places and

so far, i haven't seen any indication that the reversal is coming. charles: to your point i still like those pearmain and eagle ford plays as well. jonathan i do want to shift gears u.s. tariffs and chinese goods go into effect at midnight china' warning that america is opening fire on the war with tariffs. jonathan we know you don't like them so where do you see this sort of where do we end up from here what's the end game? >> well i'll put it bluntly. it is higher prices and lower jobs. that's what tariffs, that's what trade wars do. the president talked about trade wars being good, charles. he talked about them being easy to win. i just don't see it. in fact we're already starting to see higher prices. washing machine prices now are 17% higher than from the tariffs the president put it on back in january and when it comes to higher prices and lost jobs, look at the ceo of general motors. earlier this week and she worked with the president as i understand it in terms of his

transition team et cetera. she's talking about the loss of jobs in the automotive industry the higher prices, could be five grand a car higher charles that's a lot of money i don't care how much money you make a lot when you have to buy a new car that are thousands of dollars higher due to tariffs who does that help? charles: do you think though that because ultimately i guess it's like any war you'll have casualties and battles the idea is to win the war and en this case i think is ultimately to get other nations to lower their tariffs and have really free/ fair trade where we can prosper in the years beyond right now. >> well, charles i can only take from what you wrote back in 2011 advising then president trump in terms of establishing free-trade agreements and establishing free-trade. that's in the president's best interest. that's what's in american's best interest. i don't think they understand tariffs, excuse me, charles is that tariffs are taxes on

americans and those higher prices that americans pay should we pay higher prices resolve in greater jobs lost right here at home. don't take my word for it take george bush. i mean charles we saw this back in 2002 when president bush tried this with steel tariffs. the net result was 200 jobs lost that's why those tariffs were abandoned basically about a year , year and a half later. i hope we're going to see the same thing with the president because the higher the tariff go the higher the prices for us go and the higher the job losses go as well. charles: again mid-term term the people that voted for him understand everything he just said and i think they're willing to fight it out and that's why they didn't vote for bush they want someone whose going to take it all the way through even if it means near term pain so i don't disagree. we know there would be higher prices but people think long term it might be worth it. >> i hear them cheering for tariffs they're cheering for their own job losses and own

higher prices i hope it doesn't come to that but thanks for the opportunity to appear charles and happy 4th. charles: you know my mother always loved you she said you were her favorite so always want to remind you of that. >> what happened? charles: my mom passed away but you were always her favorite. all right guys. >> thank you, charles. charles: let's take a look at the 10 year yield at 282 our next guest says that's where we're seeing interest rates as an indicator of changes in the stock market overall. joining us dan safer president and ceo of shafer asset management. dan help us understand when people hear inverted yield curves and all that they kind of just zone out. why is this so important? >> well it's important to the banking system and if to put it in simple terms if you're a banker and you borrow money at a lower cost you want to lend it out at a higher cost that's your spread and how you make a profit when the interest rates on the long end the 30 year treasury and the 10 year treasury rates come down and get closer to your cost of borrowing the money to be able to lend it out you're

making less money and that is going to make you margins come in and your stocks go down. they're down 5%. charles: but earlier in the year , in fact the first real challenge to the rally this year , was because rates were going up too much. the 10 year yields at 3% and all hell is breaking loose. now you're telling us its gone down and that's bad. >> you got to be careful when you listen to because when it was at 3% i was here sitting with you and i said that's a great buy and it went to 310 and now we're what 282? i'm expecting it to cross 262 and once it crosses 262 lower, i'm looking at 2%. just like john a then hoenig just said he thinks crude oil is going to a hundred. i just put a lot of shorts on crude oil on tuesday. i think it's going back to 60 and 74-75 is the level. charles: before we switch let's finish the interest rate discussion. does this mean though the so-called inverted yield because it's associated with recessions if you look at a chart,

generally when this occurs we do get a recession within months of that happening so are we talking about a recession in this country? >> well that's a good question charles. what's very unique about this yield curve inverting or getting close to the levels today is that the timing of where it is in the cycle is way too early which says to me, and the economic cycle, which says to me , it's not going to be just a recession. i think we're going to go into a depression which by definition is four quarters of negative gdp growth. it doesn't mean we're going to go into the great depression like the 30s but something is contracting here as the numbers look so good. somethings wrong. somethings going to give in the bond market is the deepest market of the world. they're telling us the future, the economy is going to slow down. charles: in the meantime we've got a report out today, ism non- manufacturing numbers huge. we got the ism manufacturing number huge. a pretty good job report from ad p, atlanta fed has a 4% gdp growth this month it feels like

the wind is at our economic sales. it's hard to believe we just fall off a cliff just like that, so what would be the trigger because we know the last time it was the slicing and dicing of mortgages and selling at cbo's and we had a nuclear bomb under our economy but does anything like that exist right now? >> well from what i can decipher from my experience and research that the drills and drills amount of derivatives out there people are pretty calm. volatility they came is going to stay low. they're a selling premium and to make it very simple it's like trading options if you're selling the premium you're collecting the money hoping it expires and that's what's going on in the banking system with a lot of pension plans, trying to get an edge to get more return because they're under funded so this kind of thing is what i'm looking at at the moment. charles: you retained the title

of mr. happy. we appreciate it. >> i am happy. charles: [laughter] >> thank you. thanks for having me. charles: now this, you may soon see more expensive options from your netflix subscription. the company actually testing a new service that gives users premium access we'll tell you how much more you would expect to pay for that and also seattle has the homeless problem and the taxpayer again on the hook for that details of the new plan coming up and of course big news we're covering it all president trump search for supreme court nominee the wall street reports that he's now narrowed his choices down to three. the weekly standard fred barnes mays his prediction, next. ♪

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charles: zte the chinese telecom company is rushing to replace its top executive susan. now why are they doing this? >> well it's kind of the mandate for them to operate in the u.s. so they've replaced their entire board last week now they have a new ceo, cto, cfo as well, we should find out the commerce department recently temporarily relieved some of the sales bannon zte so they can basically support their existing business here in the u.s. but zte as we know, they're awaiting what congress will decide in terms of whether or not the lift the sales ban so zte can operate in the u.s.. we know the senate voted unanimously to reinstate that ban despite the u.s. president. charles: there's pushback from senate. now there's this. let's get to president trump's search for supreme court nominee the wall street journal reports that he has narrowed his choices down to three.

brett kavanaugh, raymond keth ledges, and amy barrett. joining us is fred barnes. all right, fred, so who do you think the president is going to pick? >> well i think the most likely is brett kavanaugh, for the reason he meets the criteria the white house put out for picking this supreme court nominee, and the first thing is of course is he well qualified and by that, you know, president trump is sort of hinted that that means he went to a top law school like harvard or yale and he mentioned those, kavanaugh went to yale and secondly there's a question of whether he's weak or not. president trump doesn't like weak people and by this he means will this guy really follow his own lead and not be pushed around by others and lastly, is he an originalist? somebody when he looks at a law, interprets it as what it meant at the time it was enacted and

not used some modern interpretation and since he does well on all three, i think kavan augh has by far the best chance. charles: of these three are they equally weighted or is it originalist or someone who pushes back on the idea that the constitution is some sort of living, breathing document that should reflect society because we know that's what a lot of progressives would like to see. >> that's why it isn't going to be a progressive who donald trump picks. but there are a couple other factors. kavanaugh was a law clerk under the outgoing justice, justice kennedy who i think told president trump that, you know, you really ought to think of these law clerks of mine that i have and so is raymond kethledge he was a kennedy law clerk as well. i think that gives them a slight boost.

charles: earlier in the week late last week amy barrett became something of a front runner, at least media speculation and she's faced tremendous harsh criticism in part because of he religion which seems really distaste full among other names i could call it. do you think though that she's not no longer in the running? >> oh, i think she's in the running and she is such a strong candidate, a woman, seven kids, 46 years old she has such an impressive record at notre dame law school as a professor and now she's an appeals court judge with a lot of backing and i don't think what they're trying to say is that she, because she's a catholic that she will vote to overturn roe v. wade. i don't think you can conclude that at all about her. charles: well, wouldn't they say isn't it going to be the litmus test from the left no matter who the nominee is? >> well yes, i know they've

claimed that the 25 judges or possible candidates on this list that president trump has he's choosing from for this nominee that you can just assume that any of them would overturn roe v. wade but i don't think so. there's another way that conservatives can look at roe v. wade and that is its been around for 45 years and it may have reached a point where it is a part of the fabric of american law and society and it has very great strength as a president not to be overturned. charles: there are a lot of conservatives who aren't necessarily thrilled with president trump for they say he's not your traditional orthodox conservative but many of them also acknowledged that it's things like the judiciary appointments particularly the supreme court that unites the party more than anything else and probably could galvanize it enough to fend off the blue wave

in november. do you believe that could be true? >> i believe that could be true , and one of the things there's some differences now among republicans and among the washington d.c. conservative legal community and then conservatives outside the country, but whoever the nominee is any of these three that we've talked about, any of those will i think unite republicans. charles: fred thank you very much appreciate it. >> you're welcome. charles: now let's check on gold having a pretty good session thus far up more than $6 although in a trading ban between 12 and 13,000 and then there's bitcoin dipped under 6,000, been trying to come back but really having a tough go of it still 65.49 today down 132. fourth of july celebrations held across the nation with big fireworks shows including here, in new york city.

it was the biggest fireworks display in new york since the millennial celebration in 2000. macy's spent a whopping $6 million on yesterday's 4th of july spectacular. and in the nations capitol president trump praising the u.s. military during his speech at the white house on the 4th of july picnic. president trump: to every service member here today and stationed around the world, they're all watching, and to your incredible families, these are truly unbelievable people. thank you for keeping america safe, strong, proud, mighty and free. charles: in washington the night wrapped up with a massive concert and fireworks show in front of capitol hill. much more varney ahead.

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netflix? well, it goes to 4 k tv and you get four streaming lines basically. i'm not sure it's worth it what do you think 16.99 for that? charles: no, no. liz: same content. >> pretty much. charles: seattle looking at new ways to tackle the big homeless ness problem, e-mac what's the latest? liz: here is what's going on. they're seeing crime basically let me back up. seattle is seeing this as pay a little money up front to stop people slipping into homeless ness if this is a one-time problem for them or whatever. so they say they move 221 people off the streets of seattle, you know, including buying airplane tickets to reunite them with family and friends in places like kansas and new york city or two months for car repairs here is what happened you know the famous space needle which is a tourist attraction with a homeless camp around there tourists are being attacked. one man, a father was attacked a homeless person put a rope around his neck and tried to

strangle him. another family was attacked so they are trying to desperately reign in this problem of homelessness in seattle. it continues to be a big issue there. charles: income and equality works in these places that preaches social justice all the time. thanks a lot scary stuff. now, there's this. the 4th of july was used to show unhappiness with the direction of our country the dnc chair tom perez leading the charge up next we have a reasonable democrat and he'll respond to that. >> ♪ ♪ ♪ ♪ i can do more to lower my a1c. because my body can still make its own insulin. and i take trulicity once a week

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charles: checking the big board remember a minute ago we were up 17 well we're up 106 now all over the board, higher intel leading the way check micron technologies the company has been banned from selling some of its products in china. chinese courts saying that micron leave it or not micron violated patent of a taiwanese rival and now this the left used the 4th of july to show their unhappiness with the direction of our country first the anti-trump protester that climbed the statue of liberty

was escorted down by police after a four hour standoff plus anti-i.c.e. demonstrators held across the country calling for i.c.e. to be abolished and final ly the dnc released a statement in part reading our most fundamental values are under attack, thousands of children have been separated from their parents at the southern border at our highest court workers rights are being taken away voting rights are under assault. joining us now doug shone, author of the book american and the age of trump. doug, what about a democrat in the age of trump or should i say the far left in the democratic party because i'm sorry? let's like doug is not responding so i don't think he's ready for us yet. as we get doug prepared perhaps i can go to the company here dan henninger joining us. dan, we didn't prep you for this , but we saw a lot and i think you know what's going on so what do you make of it? >> well, i mean, the democrats

are freaking out. trump as someone reasonably said the problem with donald trump for us is that he has blotted out the sun and having a very difficult time getting their message out to the voters so they have to make that message more and more intense. when you're to the point charles where you climb up on the statue of liberty and cause two new york cops to threaten their lives you're having a little trouble getting your message out charles: this speaks to someone whose helped shape the democratic message in the past. doug's equipment is ready now. doug your book american in the age of trump and maybe there's a chapter in being the democrat in the age of trump because it feels like the party is losing it. >> yeah, i think that's true, charles, and i argue in the book for compromise and i think we need comprehensive immigration reform, not trying to climb statues and monuments with t-shirts that say, you know,

resist. i think we need a positive agenda about jobs and empowerment of people, not anti-trump all the time. you can disagree and disagree respectfully but i don't think this is a socialistic party. i'm certainly not a socialistic. but i believe in a mixed economy and a social safety net and i've always believed in compromise. i think it's the american way. charles: yeah, i don't disagree but i will say we keep talking about new york congressional candidate alexandria cortez and her social agenda which is all the rave right now within the party she's announcing that this thing will do well in the midwest. i don't agree but certainly she's latched on to something in that party and it seems to be growing. >> well, look with primary voting democrats, a sliver of a party that is 1/3 of america so

it's a small minority of america charles there is energy on the left for the kind of policies cortez talked about, but i don't think it works in the midwest. when i worked for bill clinton we promoted a fiscally conservative agenda that did work and i dare say what she represents and what the democratic chairman said as the future of the party i think is dead wrong for the democrats, dead wrong electorally and dead wrong for america. charles: what democrat though is articulating the doug schoen/ bill clinton message these days? >> only that i see prominently is somebody like conor lamb in pennsylvania who won that special election, but his is a lonely voice and there may be a few others around the country, there were a number in california that were nominated but there's no real counter narrative to the left or the far left now and as i said, this is

not a socialistic party that i grew up in though it is rapidly moving in that direction. charles: doug always great see ing you thanks a lot. thank you charles. charles: dan henninger of course is still with us with a new column in the journal about the shakeup at the supreme court called trump blows away how do you pronounce this word? and what does it mean? >> well let me explain, charles all of the excitement over this supreme court nomination is centered on roe v. wade, right to an abortion, but i'm arguing that that's not where the real concern of the liberals because roe v. wade is about just one thing. it is about abortion. it's also being used to rally the troops and as a fundraiser. what they're really upset about is that trump is going to nominate a person to the court who willow pose judge-made law and judge-made law got its perfect definition in the 1965 case, griswold versus connecticut in which justice

douglas had a right to privacy. there is nothing about a right to privacy in the constitution of bill of rights so justice douglas argued the came from the bill of rights having this form ed by the guarantees in the bill of rights. in other words it's out there independence the constitutional ozone somewhere. that was the perfect definition of judge's reading conclusions coming up with reasons later and that's what the liberals relied on for the past 50 years in using the judiciary to achieve their policy and that's what could be coming to an end with this nomination and they know it charles: so a form of act it act it vix and i guess this gets to the notion after the idea that the constitution should be a living document that evolves that reflects society and what society wants now rather than perhaps what the framers intended at that time because they didn't think or know that

we would have drones or whatever the argument maybe. >> well that's right, and justice gorsuch, mr. trump's other nominee, said in one of the decisions this term, he was writing about the fourth amendment and he recognized what's going on from the founding of the nation, until the 1960s it was not possible to find a judge who simply ruled on the basis of his personal sensibility rather than what was in the law, which he calls the traditional way of judging, and i think that any of these three, kavanauch, barrett, or kethledge is going to side with gorsuch on the idea that it has to be in the law rather than based on a judge's personal sensibility and that has the liberals hysterical. charles: before i get you go quickly who do you think it's going to be? >> i think raymond kethledge. charles: okay so far you're the first guest to say that. thanks a lot dan. a couple of amazon stories for you first amazon wants to cash in on the demise of toys "r" us

susan, amazon they're going to send out catalogs? >> yeah, so toys "r" us had the big book of toys i guess amazon is smelling the opportunity with the demise of toys "r" us. they brought in $6.5 billion in revenues last year so there's a lot to play for and amazon is going to start mailing out this catalog to millions of u.s. households and hand them out at whole foods markets as well and this is according to a bloomberg report but what i found really interesting is they said amazon actually held discussions with toys "r" us to buy those retail stores before they declared bankruptcy but can i bring up the giraffe again? saddest toys "r" us giraffe. isn't it? charles: did he get a new job? >> i don't think so. charles: his resume is out there >> it's around. charles: here is another one amazon is going to open up a cashierless stores and this one is going to be bigger right? >> bigger. charles: the wave of the future. >> so i guess you can call this

physical retail, it's like a very open one where you walk in, you basically use your tech devices to pay for and walk out. i have to say i would love to see one here in new york. charles: where is the next one? >> seattle as well. charles: oh, really? >> yeah. charles: apparently we spend more because we just kind of filling up the basket. liz: and then that's right walk out the door you don't have the reality check of it being rung up. >> and they can deliver it to your cars. charles: a lot of our cashiers that's a tough one, now i won't spoil it. anyway, now there's this a new jersey governor phil murphy and state lawmakers reached a budget deal that's going to increase taxes yet again. i could hear stuart i don't know where he is but he's upset. me too. we actually have a new jersey businessman also a friend of the president. we're going to get this take on that and we also have an update on the size of your airline seat and who regulates that leg room or not. we have details next and by the way this headline elon musk

reportedly telling tesla engineers to stop a key brake test to speed up production. why would he do that? we'll have the story in 90 seconds. >> ♪ ♪ it was here. i couldn't catch my breath. it was the last song of the night. it felt like my heart was skipping beats. they said i had afib. what's afib? i knew that meant i was at a greater risk of stroke. i needed answers. my doctor and i chose xarelto® to help keep me protected from a stroke. once-daily xarelto®, a latest-generation blood thinner significantly lowers the risk of stroke in people with afib not caused by a heart valve problem. warfarin interferes with at least 6 of your body's natural blood-clotting factors. xarelto® is selective,

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nicole: i'm nicole petallides with your fox business brief another day and another wild ride for tesla stock already swung more than $15 today, at this moment down 2% off its earlier lows all this on reports by business insiders that it viewed an internal document that elon musk ordered the brake test to be stopped for the model 3. well why would he do this? does this in fact happen? well, according to some reports and at least one statement from tesla themselves, saying that every car we build goes through rigourous quality checks, must meet exact specifications including brake tests and to be extremely clear we drive every model 3 on our test track to verify the braking torque, squeal, and rattle there are no exceptions, and the idea that behind it is that they duplicate one another in fact the brake is redundant. oooo. when it comes to travel, i sweat the details.

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charles: the faa says it won't regulate airline seating this has a lot of customer complaints so what the heck? so they don't regulate that? liz: how in the hell is that not an faa regulated area for them to look at? >> well they say it doesn't affect safety or health. liz: really? >> it's not their problem so don't talk to us about it. liz: how do you get passengers out of a seat then? >> well they said there's enough room actually even for the heaviest what they say the biggest passengers around, they can safely get out of their seat in time in safety emergencies.

liz: well it looks like it's only room for an ironing board the way they're going. charles: i've seen blueprints with airlines like subway cars or folding mirrors could you imagine that? no? >> i find it interesting that on average, the seat, you know the difference in seat between the ones in the back and front it was 28 to 35 was the average. i think that's, you know anything over 30 these days is a luxury isn't it? charles: speak for yourself. >> okay, but i'm just saying what you see these days. liz: [laughter] >> airlines advertise it. charles: that's the main reason i take business and first class. >> wow. fancy. charles: i need the leg room. folks, the trump adminitration's china tariffs gone into effect after midnight and our next guest who happens to be a friend of president trump also owns several car dealerships in new jersey joining us business owner tomorrow neoli. now you do not like these tariff s. you're not a big fan? >> well listen it's a double-edged sword. at the end of the day the president is on the money, he's

driving business back to america he's driving manufacturing back to america. i think the problem is that it's helping certain sectors and it's going to damage others. in the new car business, i think that it's a disaster. i think that it's a disaster waiting to happen. i think that consumers are not going to pay an additional $5,000 per vehicle to buy -- charles: how does it get to 5,000? toyota two weeks ago said 1,800 now this week it's 5,000 and pretty soon it's like 28,000? >> well listen when you talk about the luxury market bmw, lexus, mercedes it's what i sell i think it's about $5,000 a vehicle it'll cost and i don't think the consumers will pay it. clearly it's going to help companies like gm and ford to drive business back to the domestic brands which is what he's trying to do but listen at the end of the day i think this is the greatest chess move by any president ever. i think the ultimate goal is to get them to the table create a negotiation, close the gap, you're never going to win 100% but he wants to close the gap.

charles: so you understand his intent with all of this? >> yeah, totally exactly but at the end of the day it's a chess move and he wants to get all of them to the table. clearly, china and canada are ready to fire back, right? they're going to put their tariffs back i don't think it matters and at the end of the day he drags everybody to the table and gets them to negotiate we close the gap, 5,000 may turn into 1,800 or 1,500 which a consumer will absorb. charles: hopefully ultimately everyone brings the tariffs down but i do want to ask you another one tom because new jersey governor phil murphy and state lawmakers just reached a budget deal to increase taxes again. how do these affect u.s. business owner because i happen to be a jersey resident also and it's just nuts. it's crazy. >> no it's crazy i think he's on a mission and really working with china, somethings wrong. i mean, clearly new jersey, a band aid isn't going to help. they need a bail-out. i don't know where they're going chasing business out of new jersey it's not good.

residents are leaving. they had the most influx of millionaires out of new jersey down to florida because there's no tax. the states in trouble. something has to be done. charles: you'd think because murphy is a billionaire so he doesn't even know. i doubt he ever goes to the supermarket or maybe obviously he must think he's doing the right thing but how could anyone to your point knowing the mass exodus of people ablebodied folks who are able to work and can leave and millionaires and billionaires, how could someone even continue down this path? is it that they've gone too far and have no other ideas? >> i think they have no other ideas and i think at the end i really do. i think they have no other ideas the reality of it is what murphy is looking at is new york and he's trying to say that people are exiting new york to come to new jersey but if new jersey is too high they go to another state. and it's hurting my business also. it's hurting the car business. it's hurting the consumer business. shopping centers are vacancy

rate is at an all-time high. charles: i appreciate it, man. as a fellow jerseyian, i think that it's unfortunate. >> well its got to change but appreciate it. charles: see you again soon. >> absolutely. charles: now to a topic that we've covered many times in this program. we're talking toxic politics. but remember, this didn't start overnight. want to take a look at this clip from president obama's first joint address to congress in 2009. roll tape. >> the reforms i'm proposing would not apply to those who are here illegal. >> booo. charles: well, that was congressman joe wilson republican from south carolina. congressman well he joins us next and we'll also ask him about mike pompeo who happens to be on his way to north korea for high level talks. congressman wilson is a member of the foreign relations committee and i want to know what do we demanding from this

meeting? pair

charles: folks take a look at this a minute ago the dow was up 17 points and was a free fall and now it's at the high of the session we'll keep digging in on this but this is a very resilient market and we like that. now for the past couple of weeks we've been talking about how toxic our political atmosphere has become but of course this didn't happen overnight. one issue that we all remember want to take a clip from president obama's first joint address to congress back in 2009 >> the reforms i'm proposing would not apply to those who are here illegally. >> booooo. charles: joining us now is the man who shouted at president obama, congressman joe wilson republican from south carolina. congressman thanks for joining the show. >> charles honored to be with you. charles: some people are saying that that was a moment, sort of an inflection point in our country, where president sort of became open game and today, we talk about whether or not you

like president trump or not there should be a certain level of respect for the office itself and certainly some of the things we've seen with the attacks on president trump's staff are way over the line. what do you make of it all? >> well i go back to that in out of my respect for the president himself, the office that caused me to be in shock when he said something that was not true, and so it was a town hall moment it was not planned and then as a southern gentleman i spoke to the chief of staff ram emmanuel that evening and apologized for the interruption and then had an agreement with president obama with vice president biden that we discuss issues and that's truly charles what i've been doing but i knew what was said was not accurate and it's so different than what we see now where there are planned attacks on president donald trump. charles: but you're saying that you regretted yelling that out though at the time because you met with the president obama then? >> well actually, it was

through the chief of staff, it was reagan, they immediately said we accept the apology of the interruption and henceforth we discuss issues and then i was really grateful that the very next day there were efforts made to change the bill to actually to do what was stated and that is that illegal aliens were not supposed to be subject to free healthcare. charles: sure. i think acceptance of apology is one of the big things missing today in the crisis congressman. i want to ask you quickly before we run out of time about secretary of state mike pompeo heading back to north korea. you're on the foreign affairs committee what should we expect? >> well i'm really so proud of the success of president donald trump. i'm one of two members of congress whose been to pyeongchang and i've seen the success of the agreement and it was only a year ago otto warmbier was murdered and now we have the meeting in singapore with specific achievements and that is the return of remains we see the removal of the propaganda posters which are all

over north korea showing a north korean soldier, with a bayonette through an american soldier, and south korean soldier. these are being taken down. this is step by step a real achievement of reducing tension in north korea and northeast asia. charles: congressman wilson thank you very much appreciate it. >> honor to be with you thank you. charles: president trump heading to montana we're going to have live coverage of his rally tonight on fox business. more varney right after this. . .

at crowne plaza, we know business travel isn't just business. there's this. a bit of this. why not? your hotel should make it easy to do all the things you do. which is what we do. crowne plaza. we're all business, mostly.

charles: all right. big board up 144. really strong session this far. take a look at tivo. announcing the ceo is out. that stock under some pressure. nike looking pretty good here. actually outfitting more world teams from the world cup than adidas. britain, france, wearing nike. people are using netflix to watch more content than any

other broadcast or cable television. on the eve of massive sanctions, tariffs to take place tonight. neil, cavuto, it's yours. neil: thank you, my friend. threat is effective at 12:01 a.m. a little more more than 34 billion in tariffs take effect. the chinese will respond in kind. if the markets worry about it or panicking about it, for the time-being they're not showing it. this can swing wild licht the latest pick up seems a lot of sense tiff shares of trade, they have picked up. a lot has to do with reports. these have not been verified, that the chinese do not plan to respond in kind, tit-for-tat. they will make their grievances known in other ways. they do things like delaying inspections. not allowing american companies getting approved for licenses as quickly as before.