charles: president trump tweeting about immigration this morning. we must have border security get rid of chain lottery and catch and release sanctuary cities come about america's immigration from or protect on enforcement and keep loving but much faster the wall. the government shutdown over funding on the wall. much more on that coming up. also, a look at the market. we are not far from all-time highs in all the major

embassies. the guy will get a big from caterpillar posting record profits. i'll give you some of the details but they are absolutely amazing. 4400 people in north america alone in the last three months. apple "after the bell" today. are these tax going to keep going and tesla has been on real shaky ground reporting profits on wednesday. but market watchers scott martin. first things first. technology, all eyes on tech. as we went into the weekend, facebook is flat for the year. amazon up 55% pure apple of 13%. apple up 18%. netflix is still up 85%. are these big tech names.com is it premature? >> is probably premature. the sun house and the have-nots. the funny part about which he ran down there is the have-nots are doing too bad.

if you look at the overall market, depending on your favorite index, they're close to the averages speeds among the bottom end of the performance. to me it's a little premature. but when you look and talk about the apple report coming upcoming got a figure a lot of momentum in the stock. some of the developments behind the scenes will come up in some of these earnings calls are what the market finally wants to see is then spend a big cash title. the first trillion dollars company which is going to happen the next couple months especially with the good earnings report. charles: the earnings report is "after the bell" tomorrow. a lot of a lot of folks say what we buy we don't buy these big tech names? looking on the server security hack up 19%. semiconductors up 10%. any chance of rotation who

singled out signal to other areas of tech? >> yeah, they could. when you talked about a lot under 6:00 p.m. show is paulo alto networks, which is when we take a look at as well, which is the hacking and cybersecurity space. the fact that they're not that worried about terrorist prices kicking in in response. a lot of these industrial names if you look back on the terrace talk heating back up in the beginning of may. a lot of industrial companies got nailed. to me there's a real opportunity. trade to the cfo used the term high water mark insinuating it won't get any better than not will of course it has gotten better than not because to your point but raised full-year outlook now to $12 versus $11.25. this is most important.

profit margins at the end of 2016 or less than 8%. right now projected to go as high as 17%. the margins expand like beckham the stock will go higher. including 4400 here. could you imagine if they had missed the story would be tariffs, tears, tears, but few people miss how great this company did. superstrong like it is right now. >> i agree. the metrics you mentioned are outstanding. the margin expansion is ridiculous. this is a company again in a space from a worldwide industrial space that's been hated on in the last several months. what you see with a lot of these companies farewell underperforming. a little more optimistic. that will reflect in the stock prices going forward. charles: opinion that very much.

take a look at this headline. the economy grows bigley. this is a piece in the independent journal. they are right to take of it read up on growth. >> i understand he probably said bigley. i think whether you call it, it is a big report that the economy is humming. we've got confirmation of that and amazingly it's really hitting exactly what the white house predicted in terms of growth and investment, rising gdp. what is encouraging is the surge in capital expenditure. we see companies getting rewarded by investors as well. people are more confident about the future. tax cuts are working, deregulation working. growth is happening. >> there's a story that exports why not because there was a rush at the door to avoid the tears

coming down. the drop in inventories offset the pop in gdp from exports. it really was consumer spending. and if that really powered the number. charles: $30 billion less certainly doesn't suggest a business environment that was before -- charles: had offset the export policy. turning to the final saltier point was interesting. i use the term i don't know if you guys are golf fans but there is a tiger woods salmon in all four majors at the same time. take a lie for gdp quarters where a .1% growth. many chin over the weekend said hey, this is the real deal that will happen year-over-year over year. too premature to say that? >> he should be optimistic based on investment numbers. corporate investments are not a one-hit wonder. it's not like it's a sugar high that happens for one quarter.

we can be more productive over the long term enough over hoping for. that's what gives you higher wages over time. the friday jobs report will see what the answer is there. everything in this report says this is good growth going forward. >> coming into the year with the forecast of 3% cutback spending after the first quarter was over 10% at 270% approved. all the money is not just going to buybacks. stay right there. want to take a look at cvs. susan lee is here with the latest. >> we have the future is the highest paid to the executive in now with the new york magazine that was released on friday. fix them and accusing of inappropriate touching, kissing him of misconduct to go back to the 1980s to the late 2000.

les moonves responding he regrets any behavior that he made towards women. he did want to make them uncomfortable but he never used his position to harm or hinder anyone's career. "the wall street journal" reported the direct or as an of directors are scheduled to meet today, monday ahead of the earnings release. some over the weekend have suggested a law firm, a private enterprise to investigate the allegations. as chairman and ceo. the stock price got hammered on the worst day in seven years declining again today. i think there's some concern about one of the highest-paid executives, one of the most successful executives from third to first in a short amount of time and what this means for the future of cbs when it comes to viacom trying to reverse the entities as you know. charles: should reno be for the

day is over what the board's decision is? >> i think we will. they will move quickly in light of the reaction in the earnings release on thursday. we should remind people this is like a new case on top of the other one so fresh in the mind of investors and the public. trade do we will see. i would assume they asked him to step aside where they wait for the outside firm to come to a conclusion. they don't care about the near-term stock prices. if the company reputation at this point. >> taken a hard time on immigration saying he's willing to shut down the government over the border while the doesn't get its funding and immigration reform. a lot of people take this as an idle threat. what do you think? >> the government is going to run out of money as usual at the

end of the fiscal year. he does have the ability to carry out the threat. >> there's a lot of opposition within his own party. mcconnell and others went through a government shutdown. we did learn a few things. life went on and i think we learned about nonessential workers and really it does magnify the bloat in our government. we are spending a lot of money. what they deem nonessential workers. there's almost no appetite among republican leadership on capitol hill to have a shutdown before the election. they want to run on the economy. it's a great economy as we just suggest. >> they seem to be in their camp a month or so ago. when you do like more republicans before we take on this issue again. he may be thinking this is an opportunity to show how extreme

the democratic party has become in terms of the growing movement to say let's not have border enforcement. we may see an opportunity there. but many shut down not too long ago when chuck schumer basically caved very quickly. the president may think there's another opportunity for that. train to another of high-stakes chicken i guess if nothing else. democrats are going to vote for a border wall. >> i think there is a deal there. there has been for a while to have border funding allowing the people to stay. the data says they are generally hard are generally hard-working and law-abiding people. charles: president trump has made them that offer. he put on the table for democrats which is why chuck schumer folded the first time. when the shutdown for with senior political analyst rating of later in the show. president trump has the framework for a trade deal.

our next guest says it could be months before we see any benefit. the ceo of the steel company will be with us right after this. president trump pic to the senate race. john james is becoming super hot. trump calls him spectacular. in fact, the hottest republican amongst millennialist that he'll be with us in the next hour. will he rise to terms agenda in the primary and will not be enough to unseat debbie sabin now. medicaid for all. freeman defending free. alexander with a military spending. wait until you hear both of these stories not. feedback that helps you drive safer. and that can lower your cost now that you know the truth...

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charles: to cut its outlook centric concerns related to terrorism volatility within the

commodities market. stocks down 5% premarket trading. raising prices for some businesses. listen to what vice president pence told maria bartiromo. roll tape. >> a great breakthrough this last week with the european union. now the united states and e.u. will begin working towards a trade arrangement that has your tears, zero non-tariff barriers and opens up commerce between our two countries in new and renewed wave as well as the e.u. commit to buy more soybeans from american farmers. charles: joining us now, founder of sj of. just how much of prices gone up for you with respect to run materials? >> thanks for having me, charles. we've experienced by 30% to 50% across the board. from simple sizes, regular sizes in the 30% range to 50% of the more specialty items. so it's been massive.

trade do have is a 25% tariff come out to 50% increase? >> it's all about demand right now. on the 50% range is more of the tubing. ron jacobs, square shaped or those items beginning from canada or some other areas to the problem we have now is those have been caught off so the larger sizes go higher. trying to cut off her more more expensive. charles: i looked at a chart of aluminum production end of the war. the chimp administration said we want to dispel a woman and because of national defense, does it make sense we should be able to produce more stuff in this country? canada is her friend got purveyed tenures are now to go towards china and ask other countries. >> i said this the last time i was here. i'm all for the betterment of this nation.

i really am. a tidy stay competitive. i'm the guy building the actual structure. it's problematic for us. increases go up. after all those years and shutting down factories and things like that. you help buildings, skyscrapers. your business is booming right now. >> 's increased dramatically. it's a double-edged sword. it's interesting. wonderful to have such an increase in our sales. you have to be very, very careful and material costs because we get awarded the job and if we do not buy the material immediately we could absorb the cost but not to that extent where it goes on to that degree were 20, 30, 40, 50% goes up in deals with different

sizes. charles: can you handle this for the rest of the year? thanks a lot. appreciate it. bidding was president trump and wanted to get into it right after president trump treats about the meeting, join us in the next hour. plus, the astronomical price tag of bernie sanders. wait and see how much freight costs. plus talking socialism. listen to this. >> i'm liberal and i know exactly where i stand, but in a democratic socialism is better than conservative. stay at la quinta. where we're changing with stylish make-overs. then at your next meeting, set your seat height to its maximum level. bravo, tall meeting man. start winning today. book now at lq.com that's the same things i want to do with you. it's an emotional thing to watch your child grow up

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if you can't afford your medication, retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business 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. streaming must see tv has never been easier. paying for things is a breeze. and getting into new places is even simpler. with xfinity mobile, saving money is effortless too.

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>> why can't they be free? >> the u.s. constitution like an all you can eat. buffet salad. >> i've lived this before. your doctors and nurses become government employees. they go on strike because they're not earning enough money and there are waiting lists. >> actually probably knows this. they don't have the latest treatment. they don't have the list antibiotics or drugs or they just don't because they're stuck in contract. should do so we don't get fooled again, to clarify what this plan, you will not get to keep your dock her. you will not get to keep your house plants. even people on medicare don't get to keep what they have. because that medicare for all echoes of insurance for everybody. every single person in the united states is going to have

their medical coverage changed if he succeeds. turned over the weekend some newscaster said why are we worried about this to a rich nation. what's the big deal? marcus got a open up in less than five minutes. looking okay at this point. all the indices are higher. "varney & company" will be right back.

charles: opening bell going to rain here in just 10 seconds. all morning the dow jones industrial average higher. all of a sudden a few moments ago while the other big embassies started to also have green arrows to the upside. it's been complicated by a whole lot of other news stories and at the very top you can see the bells ringing. up 26 points led by caterpillar talking about it this morning. absolutely phenomenal earnings report. you can see so far the opening bell as american express. of course that your index up slightly again. not far from an all-time high. we will keep an eye on this as well. of course the nasdaq which has been under some pressure and continues to be under pressure.

but by the sword, die by the sword. tech names unstoppable showing vulnerabilities recently. liz macdonald, ashley webster, scott martin. a huge week. 140 s&p companies reporting. the federal reserve more than likely will hike interest rates and on friday we got the jobs report. alistair with you because tomorrow we've got income and spending. the gdp number powered by a robust strong consumer. can that continue? >> akamai can. not consumers of business confidence showing up in the gdp numbers which was dormant for many, many years recently. it is a big week. to me it's the crown jewel which is the granddaddy on friday. that should dovetail a really good gdp report last week both on overall job growth of 200,000 then hopefully a rebirth of some

earnings growth. we didn't see any average hourly earnings growth started to .7%. charles: although if that happens that brings the fed back into play. a lot of people don't remember this market. the biggest hit to the market have been the yield curve and going to 3% that hurt the market. the doubts 666 points. medium wage increase to .9% year-over-year. while we all want wages to go out for a long time. could be detrimental to the market. >> i think it would be very good for the market if wages go up. >> reported 0% medium wage growth year-over-year. using the berkeley take that in stride? >> i think it's grown to expect it. what i think the market is focused on right now is earnings have been great. economic numbers have been great.

but what i'm looking not as i'm looking at the four projections. i'm looking at what the ceo saying what these companies are doing in order to protect themselves from the effects of tariffs. i don't believe that the consumer will come out of this war, this trade war unscathed. the consumer will eventually be affect by a. ashley: we saw 3% gain. the market would say feds going to jump in because goldilocks scenario we had with the wage growth and inflation that's what they would say wait a minute. >> i guess the question is how many times. what you think? we are the three handler more on friday. what would the impact each of the stock market? >> i think they would take it in stride because we've got at least one more and probably too

if you look at the future is creeping up here and there for the december meeting. to me, the market wants to see this now. if we don't get it, that may be the real issue here because the numbers are watching the economic data and that backs up what they're doing. charles: so by the names we've had 285 s&p names have reported. to get to your point, did a piece on impacts of tariffs or just mention a conference call is 149 conference calls. what i thought was interesting as 43 times they said there's no impact for this quarter for future quarters. 19% said a modest negative impact. that's a relatively small number. specific industries like lumber and lenore and some other names. beyond that you think it could be a problem for companies that are specifically hit by higher aluminum costs? >> it's very hard when you look at how the companies are structured through cost

increasing for them not to be affected. i found that report to be very deceptive. the consumer will be affect did. we see increases in a lot of the basic material companies and for those increases not to affect the consumer i think it's a little bit of a false solution. trying to remember another big hit in the markets up early this year when caterpillar cfo says on a conference call that was the high water mark. obviously the ones on the high water mark. liz: as it is always the highest watermark for that quarter. >> i was there. won't get any better than that. >> what i've seen been in the development level of self-esteem by caterpillar saint the increase in steel, aluminum, all the things that prevent people from taking on bigger projects that caterpillar relies on is a

very strong concern. train for we have workers to take on. businesses need to hire workers because there's a building boom going on. companies do this in advance of rate hikes. that's another thing. looks like were the beginning of the building boom. for the first time in decades so you know what, there's wrongful technology transfer to state owned enterprises. i think he is using it as a big stick and a sky terrace behind fair trade. you could call back in the d.c. market goes down. ashley: the trade issue is still living. it will eventually work its way through and consumers will pay more. the first and second quarters have been terrific. to caterpillar's point and others such as yours to mcinnis continued into the third of fourth? >> this morning they raise their

own projections the rest of the year. $11.25. by the way, the operating market are going to be 17%. that's mind-boggling. it's one of my biggest guys. there's always what could management go out there and say we are going to lift her guidance for the rest of the year. >> i honestly think a lot of these companies will come back and change what they said because i'm talking to a lot of people every day with big projects in what they're saying is they can't believe how much a sick -- charles: the final sales numbers 5% of consumer spending was through the roof. you take a person who just got a job and just got a raise is not going to -- >> this is what i believe, if they don't find a way to hedge off these tariffs, we will see the consumer has peaked. the consumer has done great from the tax cut.

these tariffs will hurt them in a big way and simply needs to change with the terror for there's going to be a problem. charles: facebook was the news last week at the huge selloff. now the stock is where it is. do you agree? >> i was a little bit disappointed it didn't fall more. >> i think when the stock is down to 168, 165 or 168 rigid stereotype is. charles: it could stall dramatically, could be facing tremendous headwinds. you're worried about terrorists hitting consumers, but what about the things facing facebook because they are facing some serious regulatory issues and their core businesses first dolling. >> they are facing regulatory issues in slowdown.

facebook has been able to innovate consistently. i believe they will innovate their way out of the slowdown. if people owed facebook it should be really anticipating a better price in the 160 range. instagram has picked up steam. the >> maybe they've been able to innovate and make them smart acquisitions. either way they stay ahead of the curve. they will always make smart acquisitions. may not work out. >> it may not, but they're going to try. like anything there's companies that make good purchases and bad ones. instagram was certainly a great acquisition and the stuff they're doing, which both of those last two things have not monetized debt. that gets me in mind with jeff were treated overnight after the terrible earnings report.

you got a run with both hands. ashley: there's a proposal to treat face faced with the same wet weather broadcaster. their version of the fcc. charles: by the way, are virtual reality i will say that the hottest name, blue magic just as they display a week ago and it wasn't that great. i happen to think there could be huge, but it may be early to live up to the hype. let's look at cbs folks with allegations of sexual harassment against les moonves. "the wall street journal" reported the board should step aside. the shares took a hit on friday. would you be looking to buy this on the situation right now? >> not yet. you've got a look at the culture at cbs and see who else is complicit in some of this behavior. the problem with the issue it goes back almost 25 plus years.

you've got a lot of investigation and things to uncover. i wait and see how the stock trades as more evidence comes out. >> you've got to watch the odds of whether or not they get what they want. every merger of cbs and viacom. charles: thank you all very much. especially scott and jeff. looking at the big board up 14 points, 15 points. we are still kind of sideways. 11:00 a.m. he's back and i want to know if he's still bullish the last time he made that. in fact he became a super bowl sting dow 30,000. you don't want to miss this. watch what happens when supporters of socialism are asked to defend socialist policy. we have the video.

charles: the dow jones industrial average up 10 points. a lot of big news coming up this week so we are still sort of marking time. meanwhile, amazon prime hunters are loving the whole foods perks. nicole petallides on the floor of the new york exchange. what's going on, nicole? >> we have to pick the word. the truth of the matter is amazon prime members are adopting whole foods at lightning speeds. the executives at amazon say there's so many perks that come with amazon prime that the members are adopting this one faster than the other opportunities they've had. this is e-commerce. this is going into the story and it is bringing into doubt. we just saw that within assigned numbers. $2 billion in profit.

in fact, jpmorgan, 2200 overweight. they have all the reasons why. certainly a long way to go to the upside of 2200 or back to you. train to "the wall street journal" reporting amazon. ashley: that was american express. they were luring people in. especially small to midsized as mrs. sein will be a currency exchange rates for you. but according to the journal going back to 2004, they would routinely up those without telling the client. the reason being to boost revenue and commissions for people, individuals to boost their commissions. under pressure, generate more business than they claim the way they were doing this was great rates on your conversion or

currency exchanges and without telling them would raise them. the business said wait a minute just gone through my details can erase my. sorry, computer glitch. or there was a mistake in the algorithm. if you didn't pay attention according to the journal you would pay a lot more. interesting. charles: i bet you this is the tip of the iceberg. let's get back to politics. do you think people who support socialism, most of them know what it's all about? think again. roll tape. >> 28 years old, self-proclaimed democrat talking. what have you heard so far? >> they should pay for all the free things. >> all the free things. >> well, some should come from taxes that the government should pay for it. >> the government is aid for by taxes. >> the governor venezuela, does that concern you? the >> i mean --

>> he was asking all discussions and while obviously we got some interesting answers. we see these things over and over again. but always gets me is how proud they are, they did the right thing but they don't know what they did or backing. >> it's trendy because socialism has been won by the left because it's viewed as tolerant, open-minded and compassionate. if you are a young person may say i support capitalism and the free market, it's a dirty word. you're viewed as someone who doesn't care about poor people. really concerned with helping rich people stay rich. the talking point of socialism being open-minded. they don't know the facts of what it entails around the world. charles: i've seen the numbers were the socialists have made a really concerted effort to not really infiltrate policies, but now high schools big time. whoever is behind this ironically spending a lot of

money. but it's having a positive impact. it's not a laughing matter anymore. but now it's really serious. my nails are most likely to support folks with policies. they are going to the polls at the warped perception of what it's all about. it also stems from the way we've success in america come especially my generation. people wealthy or successful is always now they must have put the little guy down to get successful. it's a zero-sum game and they're convinced that rather tried to emulate success they should try to drag wealthy people down to where they are so everyone can be stuck in mediocrity and also socialism about. they view being wealthy and successful is wrong. charles: the counter to this. other than hard lessons of life over the next 10 years are introduced if i go in others. >> there's a reason its most popular with young people because they are not the ones paying taxes.

it's easy to support student loans and debt forgiveness and free college tuition and mandatory minimum living wage. i think them paying taxes will be the first thing and also it will take an education level us replacing a lot of these ridiculous courses with mandatory civics government, history lessons. once people have a better context of a socialism does direct history was reprioritize those people can begin to understand. charles: as the net irony that the wealthiest of americans are the ones who frown upon the young wealthy americans fret upon the capitalism and the alternative that they're rooting for. >> people don't realize it's because the freedom afforded to them by a free-market system where they take chances in the government getting out of their way. a lot more young people are conservative on issues. they just don't realize it yet. once they realize the government

government -- once they get the government interference are asking for, get things off the ground. it takes been in the real world to begin to shift their mindset. this is a real rise in socialism. tags allowed. charles: real quick, sort of waffling around, but chevron now donald 42 points will take that early in the trading session. ruth bader ginsburg said she plans five more years. and she got political, too. the judge is on that. straight ahead. hold grudges. for drivers with accident forgiveness liberty mutual won't raise their rates because of their first accident. ♪ liberty. liberty. liberty. liberty ♪ with tripadvisor, finding your perfect hotel

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charles: "the wall street journal" reporting that american express raised currency prices on business clients without warning. right now american express is biggest loser in the dow jones industrial average. now to this, no retirement just yet for supreme court justice ruth bader ginsberg. sheer is what she said at an event in new york city, according to cnn, my senior colleague, justice john paul stevens stepped down when he was 90. i think i have at least five more years, all rise for judge andrew napolitano. she is well-known for her workout. she has a vigorous workout i

hear millenials have a tough time doing. not inconceivable physically she could do it. mental rigors some have to question. >> remember when president trump was a candidate very injudiciously said if he gets elected going to can today. she was privately reprimanded by some of her colleagues. this is not something for a just those to say. you want to recuse yourself on any issues that come before us which the president has a institutional interest? so i'm not surprised that she wants to hang around. if she stays until she is 92, she will be the ol'est in history. right now the oldest history to retire voluntarily, justice oliver when dell holmes at age 91. she will not leave voluntarily while donald trump is in the white house anymore than antonin scalia or anthony

kennedy would have left voluntarily while obama warm was in the white house. charles: to your point, she calls herself a flaming feminist. >> she is. i have a little bit of a knowledge of her prior history. she started out as a professor of law at rutgers in newark and was an activists for equal rights for women in that era. you're talking 40 years ago. charles: sure. >> talking about a time when that was not a popular thing to do. she has steadfastly put that view into the fabric of law at rutgers, at columbia law school as federal appeals court judge in new york city and then on the supreme court for the past 30 years. charles: judge, thank you very much. see you a little bit later in the show. talk a lot about big tech on this program. two of the biggest names report profits. talking apple and less la. the man who went through for three last week. he was right on google, amazon and facebook. what does he say about these two

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charles: today i'm on the east coast, 7:00 a.m. on the west coast. i'm charles payne in for stuart varney. here is what we have for you this hour. president trump endorsing a a 37-year-old iraqi war helicopter senate primary. his name is john james. he will join us later this hour. i want to know if this endorsement will be enough to take down the gop rival next week and democrat debbie stabenow in november. new report claims that oil could hit $120 a peril by end of the year. sounds pretty farfetched but could it happen? what would that do for gas prices? the president is going on the offensive against the mainstream media after "the new york times" publisher calls his rhetoric divisive and dangerous. a teenager says hacking pays

off, how he made $100,000 from hacking government agencies and the including the defense department. you're watching the second hour of "varney & company". ♪ charles: so says the big board we're up 10 but the story right now is the story of last week when it comes to stocks. nasdaq is getting slaughtered again. megatech down big. netflix down four%, facebook down 2%, google down 2%. microsoft is down, nvidia, amazon. smaller cloud plays are under a tremendous amount of pressure. we have a lot of pressure counteracting the big board. caterpillar had record profits, increased guidance. not sure how the conference call is going, but tremendous results for them in this quarter. bring up the tech names because this is the story coming out of last week. can the oh all market survived

with big tech getting hammered? you see netflix down 5% at this moment. right now want to bring in, stay on the markets, talk about apa pell, tesla, they will report their earnings this week -- apple. market watcher keith fitz-gerald. what you have to say about both these stocks? audience should know you went three for three last week. we'll roll tape. >> start with google, you would buy it before we know what earnings are? >> sure, because i think the guidance given the trend at hand will be good, it will be powerful. >> tell me about amazon. you would also buy that in advance of their official earnings? >> that's correct. i think the president's tweets are a distraction. i think the ceo's are where we want to concentrate, not the politics as we always talk about and i think team bezos will come out with strong numbers. >> but you would not buy facebook. why not? >> correct. i would not buy facebook and here's why. i think the litigiousness of

that stock is not attractive to me. it's a bet that is not calculated in my book. charles: keith, take a victory lap my man, pretty good stuff. >> this is tough business. thank you very much for recognizing that, charles. charles: i will take a best that is your lucky tie. you had it on each of those seg isments. you were spot on. see if the magic continues to work here. first of all, apple coming out after the close tomorrow. should people buy that before the report? >> i would sit tight. if you got it, hold it. i wouldn't make any big moves right now. this is traditionally a boring quarter for apple. the numbers to watch is the subscription-based revenue and any sign they continue to roll into health-related devices. i think that is the margin expander, two, three, four quarters from now. charles: anything on phones, anything you can glean there with respect how holidays may look or is it too early? >> it is too early. the number i'm hearing

47 million iphones. here and there is the number is the subscriptions, the data, the eco-sphere. that is a distraction as far as i'm concerned. charles: building themselves away from being a hardware component. keith, tesla, not success names of some others that we talk about but a household name. it has been under a tremendous amount of pressure. they will be report profits on wednesday. would you buy on the weakness before that number? >> no i would not and the reason i would not i do not have a bead on elon musk's behavior. normally i like a ceo with his behavior dialed in, got the maturity to necessary to handle a sophisticated market like this. i think three thousand cars on model will be good number, they can be profitable at that i think they need to raise quality. it is about production quality and speed and his behavior unfortunately. charles: a lot of people made a lot of that. he hasn't done any wayward tweets in couple weeks. you think he is getting the message, do you think?

>> i hope so. a lot of shareholders depend on him. i'm a huge fan of his investment acumen and huge fan of his innovation, but i don't like the personality subject others to personal attacks that was a big turnoff to me as a investment professional. charles: does he make a good point before i let you go, about the harsh impact of quarterly earnings and relationship some of these analysts may have with one side of the business versus another and that being sort of their guide to how they question him and how they rate the stock? >> i think that is very accurate. the dirty little secret on wall street, analysts numbers are like betting on a horse race after the result. the headlines say this company missed or that company missed, the headline should say analysts got it wrong this time. including myself because i occasionally make mistakes. when you focus on margins which are important to you as well, then as a investor you have

grounding needed to make decision and a profit. charles: if you look at earnings season so far, they have gotten wrong 80% wrong on revenue. >> exactly my point. charles: keith, congratulations. see you again real soon. >> thanks, charles. charles: to politics, president trump taking a hard-line on immigration. here are two tweets over the weekend. i would be willing to shut down government if democrats do not give us the votes for border security which includes the wall. get rid of lottery, catch-and-release, finally to to system of immigration based on merit. we need great people coming into the our country. nick, do you think he will follow through on this particular threat? >> he might, but it won't happen as soon as you think. republicans we're talking to, saying there is no chance or little chance of a shutdown before the midterm elections. remember the spending bill we're under effect right now will wrap

up in fiscal year in september. the last thing republicans are looking for a government shut down a month before the election. they will do a short-term bill so we certainly revisit this again in december. then you can take the president's threat more seriously. charles: then the argument shutting down through the holidays but there is always a reason. >> sometimes a shutdown couple days, a week here and there. essentially services are not shut down and government employees furloughed and back pay. it becomes a political headache instead after real one. charles: what is the political ainge articulating in the tweets? republicans may say over 100 of them didn't vote to support i.c.e. agents with which is critical component of law enforcement. their job description is misrepresented by democrats, folks who know better fanning flames of answer sight and anger

towards the law enforcement. wouldn't it be better to zero in on that focus? >> for republicans to focus politically not in the con text of a government shutdown. the party in power takes a hit politically when they can't get a deal to keep the government open. that is calculation republicans are making don't want to do that ahead of midterms. remember the last bill they signed, the trillion dollar budget busting bill in the spring. the president hated that because he didn't get anything he wanted on immigration. charles: i don't think he will do anything like that again. next one for you, nick, democrat socialist, alexandria ocasio-cortez slamming military spending. listen to what she is saying now. roll tape. >> right. >> just last year we gave the military a 700 billion-dollar budget increase which they didn't even ask for. they're like, we don't want another fighter jet. like, they're like, don't give us another nuclear bomb you know? >> right. >> they didn't even ask for it and we gave it to them.

charles: nick, we know that the military, you know, spending went down, manpower went down, espirit decorps went down. how does this play in the midwest? >> she was in michigan over the weekend asked about the remarks. her response, six months ago she was regular american. she was not on her way to being house member. she doesn't have all the media training. authenticity for some of her supporters is somewhat refreshing. less so the sort of flubs, gaffs, broad points she is making about cutting defense spending. remember a lot of democrats aligning themselves up 2020, single-payer, medicare for us, that is becoming a part of the progressive, democratic socialist platform. she is definitely speaking to that. charles: no doubt. why she is talking about her right now. she has made a major splash. we'll see whether or not the democrats will be happy with that splash as it washes out over time. nick, thank you very much as usual. appreciate it. >> thank you.

charles: new york city council considering a bill to cap number of ride-sharing vehicles. e-mac. liz: could come by august 8th. five pieces of legislation. the first u.s. city to cap, meaning keep at one level the number of uber and lyft and ride-sharing vehicles. we have 100,000 for-hire vehicles in the city up from 63-k. this is issue for robo taxi industry. if you have new york city potentially reduce number of licenses that they will give out and possibly increase the cost of those licenses, we're talking this is a way that these cities are now looking at to tax a very successful, new industry of ride-sharing and taxis for hire. prices could go up. longer wait times and less service to the outer boroughs. charles: a lot of major cities are talking about at least taxing ride-sharing whether d.c. or others. they see it as another potential

revenue thing. i get where you're coming from. only thing i would do, i'm not a regulations guy, i drive in every day, one day training, just one. don't stop in the middle of street in manhattan. liz: stop painting bus lanes gigantic on fifth avenue. they set aside -- charles: down for the gig economy but love my uber brothers and sisters, please, let me pull over and get buy. liz: look they're reducing number of lanes available. charles: we don't need that many bike lanes. thanks a lot. tesla releasing a new 1500-dollar surfboard. limited edition, custom-made surfboard. they are sold out because ashley was first one in line to get that one. susan: you know it baby. ride that wave. charles: the board matches interior color schemes of tesla cars. tsa is under fire for a surveillance program that

tracked citizens without their knowledge. we're all over it. up next the man who president trump calls spectacular. his name is john names. james. the president wants him to be the next senator from michigan. you're watching the second hour of "varney & company." we're just getting started. ♪ is is not a bed. it's a high-tech revolution in sleep. the new sleep number 360 smart bed. it intelligently senses your movement and automatically adjusts on each side to keep you both comfortable. and snoring? how smart is that? smarter sleep. to help you lose your dad bod, train for that marathon, and wake up with the patience of a saint. the new sleep number 360 smart bed, from $999. smarter sleep will change your life.

charles: check on the big board. the dow down right now again though the big losses at nasdaq appear to be pulling down all the major indices at this point. now this, president trump tweeting about the michigan senate race. take a look. quote, john james who is running in the republican primary in the great state of michigan is spectacular. vote on august 7th. rarely have i seen a candidate with such great potential.

john is strong on borders and he has my full endorsement. john james is with us. you have the president's full support. are you running on his policies more or less, john? >> i am running to make sure we have is be understands the threat that faces us geopolitical and business relates that back to the michigan. i'm an combat veteran been endorsed by national security advisor to the president because of my military experience. having a combat member that understands how important our military and servicemembers are and making sure we defend our borders is important but as a business leader bringing economic opportunity to the state of michigan because i deal in taxes, tariffs, trade as a family business leader. very important to make sure we have someone who signed the front and back of checks on the floor of the u.s. senate who brings more opportunity back to the state. charles: john, let's start with

the business aspect of this. what would you be doing differently than your gop rival in the primaries and potentially your democratic rival in november? >> well, first of all, i'm conservative who has been endorsed by american conservatives union, senate conservatives fund, right righto life michigan, national right to life, exclusive endorsement of vice president pence and donald trump. i believe my understanding of how business works, supply chain management, understanding how to create efficiency and effectiveness enables me to help save the president's agenda, general mattis's agenda running pentagon more like a business. end fraud, waste and abuse -- charles: what about the citizens of michigan, john, hey, you know what? we want to catch up here economically. is there something that you're seeing for your state that you can do or help to enact that can give it the supercharged growth that a lot of states are enjoying right now? >> absolutely. so what we need more of, we

need, the opportunity zones that were just passed in the tax cuts and jobs act are things that could benefit the state of michigan greatly. whether from the farm or the factory, understanding rural and economic development making sure we drive some of the benefits down to the neighborhoods. we need to make michigan where talent comes to retain and attract the best talent here in michigan, working with the administration to get investment back to the state. that is how we will fix our education system that is how we will fix our roads. i believe by making a michigan a business-friendly state that is how we attract more investment and broad the tax base rather than knee-jerking increasing the tax rate. charles: i've been hearing great stuff. they say you might be the hottest republican out there amongst millenial voters, republican voters. congratulations. whatever you're doing, you have president trump who loves you on one end, millenials want you on the other one. look to talk to you soon. >> john james for senate.com.

charles: we reached out to his republican primary opponent, sandy penslar as democratic candidate debbie stabenow for interviews. as of right now we haven't heard from either. deadly wildfires in california. we'll go live to reading on the latest to them. maxine waters says the democrats won't be intimidated by the president's threats to shut down the government. next hour, political analyst brit hume will give us his take on that next hour. ♪ i landed.

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charles: car processor first data beat the street this morning. look at american express because it raised foreign exchange prices on clients without warning for more than a decade. this is reported by "the wall street journal" currently it is the biggest drag on the dow jones industrial average. also take a look at netflix down 4%. the big tech names are under a lot of pressure this morning. in morn california fast-moving wildfires killed at least six people and forced hundreds to evacuate. jeff paul is in reading with the latest, jeff? reporter: charles, firefighters out here feel like they have a better grasp on this fire. it is now 17% contained. while they feel boarding about it the devastation caused by the firefighter will be long-lasting this is where one family's home stood. the house was right there. there was likely a garage at some point. just in front of a garage where a pickup truck was parked. all of that, many other homes in the hard-hit neighborhood are

charred and reduced to ash. over the weekend the fire doubled in size. it is now nearly at 100,000 acres. the carr fire forced nearly 50,000 people from their homes. many of those folks now wondering what they will find when they finally return home. >> everything in is in our car. we don't know exactly when we'll have to leave again. we're staying across town. we're checking on our house, making sure it is okay. checking on neighbors. reporter: now there are other fires burning throughout the state of california. one burning near yosemite has closed down the national park there. it could open as early as friday, late friday afternoon. there are two other fires burning along the california coast. charles? charles: thank you very much, jeff. judge brett kavanaugh is on capitol hill today. this was the first meeting with a democrat. meanwhile president trump's supreme court nominee meeting, will meet with

senator joe manchin, remember is up for re-election. official timetable has not been set yet for his confirmation hearings but he is making the rounds in capitol hill. president trump goes on the attack after the publisher of "the new york times" calls his rhetoric, quote, divisive and dangerous. howard kurtz weighs in on that and more. "varney & company" coming right back. ♪

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charles: there is report out over the weekend, all the music out there makes you mood better is beatles number one. ashley: after all these years. liz: it isn't working on stuart. he is crabby all the time. charles: meanwhile the dow is hanging in there. it is hanging tough compared to the other major indices. more specifically the nasdaq, which look at those stocks. those are household names we look at every day, under a tremendous amount of pressure here this morning. continuation from last week's trials and tribulations. now this president trump tweets about his meeting with the publisher at "the new york times." here is the tweet. had a very good and interesting meeting at the white house with ag. talk about the vast amount of take news and how that fake news is morphed into the phrase enemy of the people. in a statement, sulzberger

acknowledged that the phrase fake news is untrue and hurtful. went on to say i'm concerned his labeling journalists a enemy of the people. this is contributing to a rise in threats against journalists and will lead to violence. howard kurtz, the author of media madness. what do you make of these tweets and these comments over the weekend here, howard? >> it was supposed to be a nice, clear the air meeting. but the president's tweets opened the door for the ag sulzberger the 37-year-old publisher of "the times." we talked about but my warning was president's enemy of the people rhetoric. he tweeted calling journalists unpatriotic. not a word i would agree with for revealing internal workings of government. when national security secrets at stake news organizations are willing to discuss whether some

of that should be held back. charles: that trump was specific, specifically went after "the new york times," said what he thought they were reporting fake news, that was okay, instead of a having a blanket? >> he was saying look, if you think our coverage is unfair you have every right to complain which by the way is true and this coverage of president is overwhelmingly negative. that was a good exchange of views as they say in diplomatic circles. but he says, sulzberger contends, don't libel all journalists being fake or the enemy because it endangers them around the world, particularly in dictatorships but the president thinks it is journalism not only unfair to him and it is true for example, "the new york times" doesn't have one pro-trump columnist, even conservatives hate trump, but president says, by sometimes revealing stuff that is going on behind the scenes it is the journalists who are endangering lives and so it kind of, it started out as going to be a nice meeting. it dissolved into acrimony so often happens between this

president and the press. charles: when i initially read the comments from sulzberger i was thinking violence in this country. i think we're sitting on a powderkeg. i will say, while we in the media tend to circle the wagons when there is a blakeket comment about everyone i do believe, you noted it a couple times already that the barbs are towards president trump are harsh against his followers this bothers me the most, more and more seeing disparaging comments and articles about people that voted for president trump these media outlets i think should no better. >> you're right on violence part. has nothing to do with president trump. hasn't been that long since the murder of the five journalists at a nap police newspaper. at same time every president doesn't like his coverage. this president's coverage is more any that i have ever seen since final year of richard nixon but at the same time, president's entitled to say, you know that it is so personal, so vitriolic, particularly from the

commentators he feels under siege. i think that led to the meeting of the newspaper that he attacks as the failing "new york times." charles: i think he is under siege but i do want to ask but the big news that broke on friday, cbs chief les moonves facing allegations of sexual misconduct allegations. the board, the cbs board will meet today to discuss his future. what do you make of it all? >> if it would be anybody other than the chairman of cbs, that person would be suspended or fired like charlie rose was by cbs these are devastating allegations in the new yorker reported by ronan farrow. six women, one on the record, one actress describing how les moonves years ago jumped on her violently, kissed her. wouldn't let her go. felt like a trapped animal. later had her fired from cbs sitcom because she resisted his advances. this is very meticulously reported, really disturbing stuff. moonves acknowledged mistakes none of the more serious stuff.

his job has to be in jeopardy. already a problem you know about this, because cbs is at war with viacom over who will control the company or combined into one company. this certainly doesn't moonves' position. there will be internal investigation. charles: by same token has a monster contract, upwards almost 200 million-dollar contract. guided the network to the number one position. considered one of the most powerful people in the industry. anyone else at cbs, howard, les moonves had to make the decision do you think he would hesitate to get rid of that person now? >> we saw that when "washington post" ran similar allegations against charlie rose. he was gone within 24 hours. same thing with nbc and matt lauer. different when it is president of the company. very influential. difficult reading of the allegations in the new yorker. charles: howard kurtz, thank you very much. >> thank you, charles. charles: back to the market, one analyst says oil could rise, get

this to $120 a barrel. joining us john hofmeister, former shell president. john, do you think it is possible we could get back over 100 bucks? >> absolutely. wouldn't surprise me in the least, maybe not this year, but in the 2019, 2020 time frame. i think for sure. remember, we've cut out about 500 billion in investment in this industry since 2014 to 2018 and oil only declines once you're producing it. so we're already at tight supply level. and it could get tighter yet if global demand keeps growing the way it has been. so i think we better watch out for the high-end, over 100-dollar a barrel because i think it is almost inevitable at this stage. charles: wow. it is interesting, more recently every time oil cracks through 70, get to 73, 74, then you blink it is bad in the mid 60s.

feels like a cycle. when it gets to the certain level, they turn the spigots back on, rigs, more output. you're saying we'll have a point that won't even match demand anymore? >> that's right. i think we're very close to supply demand relationship. probably within a few hundred thousand barrels a day between demand and supply. but that is only going to increase in terms of greater demand than supply. and then i think we'll see a structural increase in the oil price, which unfortunately would probably last for a number of years until the capital spending catches up with the new oil developments which will somehow satiate the market. charles: wow, that is amazing. $100 i kind of written that off. i am in oil stocks. a mix of a prediction there. i do want to ask you about this one, john, the president's framework for a train deal, it includes europe buying our

liquified natural gas. that is obviously a direct shot at the russian pipeline. last year our lng exports were up 400%. i don't think people realize how big and huge economically will be for our country. >> i think it will get bigger over time. time is of the essence here. this will not be a overnight shift of lng to the european market because we don't have the supply chain yet in the u.s. we have been building lng manufacturing capability but it takes years to put those plants in effect and it takes years to build ships that carry the lng from this side of the atlantic to the other side of the atlantic. meantime european demand is being met by european supply for the most part. so but i don't have any hesitation to say that the trade growth between the u.s. and europe will over the next five and 10 years become a major part of the relationship between the two, the two continents.

charles: right. >> i think we can look forward to that. but at the same time, i think we also have to keep in mind that our natural gas could become a domestic dough domestic transportation fuel. that could be good for economy, we've been hearing about that since t. boone pickens pushed that hard. thanks for enlightening us with great information. we appreciate it. >> thank you. charles: i want to talk about movie pass. the company running out of money. now dealing with major technical glitches. emac you have the story. liz:ly they had to borrow five million in cash over the weekend there. were service outages. this company set price per month you get a bunch of movie tickets. they priced the price from 45 a month to 10 bucks a month. they signed up more than 1.5 million users. so the business model is being called into question. this has been a problem for movie pass for weeks. what is their business model? how can they handle so many

customers at such a cheap monthly rate to get a set number of movies less than the box office price. charles: yeah, they i think thought they can do sort of the amazon thing. upgrade, losing money for a certain period of time. ashley: yeah. charles: acquiring all that information, all of that data. they helped produce that john gotti movie. their goal was to go to movie theaters, tv production, even movies. hey, we know these people better than you do. we want to play a role. i don't know if they survive long enough to do that. ashley: especially if the system isn't working properly. that is a big no-no. charles: gave away so much ridiculous. it was deal of a lifetime. if it is too good to be true. liz: sure. charles: could the city of austin, texas change their name? a group says the capitol of texas needs an entirely different name. a group accused of shadow banning conservative groups. a woman joins us she says her

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charles: caterpillar raised its profit outlook for the year. strong steals and strong global economy offsetting increase in raw material costs and tariffs. outback parent blooming brands, beat the street. gave guidance higher. tyson foods cut full-year profit forecast, citing concerns about trade and volatility in commodity prices. now this. vladmir putin invites president trump to moscow, joining us now retired admiral robert natter. former u.s. fleet force commander. the big question here, should president trump accept this

invitation to meet with vladmir putin in moscow? >> well, charles, president putin did say it was conditioned upon good conditions and i would suggest preparations in both countries for this to take place and if that happens, then by all means they should. but they have got to have preparation. charles: we know that initially president trump had offered to, had invited vladmir putin to come here to d.c. that was turned down. it was then pushed to next year. does it matter? is there something of a victory, high ground, message when the two men get together in washington, d.c. or moscow? >> i don't think there should be any conditions placed on it. as long as they're meeting to discuss substantive issues and substantive agreements on the part of both nations they can meet wherever they want.

i think for optics to meet in washington again. they have to have something to deliver based on the meeting. charles: speaking of delivering are, shouldn't they get something delivered from the meeting? they don't have a lot of details but would it be a good thing for the american public to see or get something that came out of the meeting to sort of ramp up the the one? >> assuming there was something out of meeting i agree with you. there may be additional steps to accomplish whatever they were working on. i just don't know that the american public doesn't know that at this point. charles: next one, admiral, turkey's president warning president trump against imposing sanctions over the jailed american pastor. president erdogan, says that president trump could lose turkey as an lie. what are your thoughts there? >> turkey has been a nato ally. with president erdogan's administration, our relationship has become frayed. there is a lot more at stake

here than just a pastor and also there is the f-35 deal. there is the acquisition on the part of turkey of russian surface-to-air missile systems. hopefully president erdogan will come to his senses. charles: well, also, isn't there another large, perhaps the largest issue of the islamists embrace this president has? when turkey decidedly not decided to go down pathed bewildered other muslim nations, he seems to harken book to hard-line islamist state. that obviously has created a lot of turmoil in his country but a lot of concern out of it? >> there is no doubt that he has shifted over to more of an islamic state. although it is not all the way. and, we'll just have to see how far they go. he does have the support of a lot of turkish citizens,

primarily because of the economic benefits that they have accrued with his administration. but we'll just have to see how it goes. charles: admiral, thank you very much we appreciate your time. >> thank you, sir. charles: new push to change the name of the capital of texas but what is wrong with austin? ashley: austin is named after stephen f austin, known as the father of texas. he was a slave owner who opposed efforts by mexico to have slavery banned. that is why a report put out by austin's equity office, really they should change the name of the city. also the name of many streets that honor austin and others such as william barton, the daniel boone of texas. he was a slave owner. he has numerous streets named after him. the question how does this all get done? you have to have a special election to change the name of the city but, they say that is probably not going to happen but when these decisions were made,

erecting, putting up confederate statues, this was done without the full participation of all people of race, color, et cetera. so it is going to get a lot of pushback. being thrown out there. i don't know whether it is taken that seriously. charles: open the door getting rid of washington, jefferson,. ashley: correct, on and on. charles: thanks a lot. ashley: yeah. charles: a a 18-year-old from nebraska makes hacking pay off. he made $100,000, legal hacking into some of the biggest companies in the country. ♪

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charles: our next fest is a 18-year-old hacker who has turned skills into lucrative and legal business. we have sam curry, founder of 17 security. tell us the story of yours because it is fascinating and exactly how you are making all this money. >> hey, charles, thanks for having me. i started hacking when i was 12 or 13 before i knew any of this

was worth any money. when i was in high school, i moved, starting doing most of my time, quit my job, there is company called hacker one. they actually pay people like me to find vulnerabilities in other companies. charles: so -- >> so i think -- go ahead. sorry about that. charles: i was going to say, you were working in high school. you started hacking at 12, 13, just as a challenge, a hobby? you know, why us for the thrill of it? >> yes. i always loved problem-solving, i think hacking presents a pretty much, it is a puzzle that isn't really supposed to be solved and i think if you're a curious person, finding vulnerabilities in all this stuff is basically a puzzle. for me it was just a a. i really enjoyed it. it turned out to be a great market. charles: creating your own company. major companies want you to test them and find their

vulnerabilities? >> yep. so basically, there is a platform called hacker one. when i was about 16 years old i found this platform t was basically, you could have this huge list of companies who were looking to security researchers to find security vulnerabilities in their product and i was able to submit by case-by-case basis security vulnerabilities in large companies like yahoo!, google, facebook. i basically got a good position on the leaderboard. i turned it into a business. because i realized there is a lot of money in independent contracting and a lot of personal relationships you can build. charles: a remarkable story. how many employees do you have, before we let you go? >> so, it is just independent practice. just me right now. i have just been moving forward with it for a long time. charles: 100,000. you can't argue with that. congratulations. much success. we'll talk to you real soon. >> thanks very much. charles: now there is this. a tsa surveillance program

facing criticism for tagging unsuspected passengers. ashley, you have the details. ashley: it is called the quiet skies program. no quiet no one knew it was going on. it started in 2010. it's a little spooky. under the program there are reportedly number of factors charles payne could use while he travels around the country that would alert air marshals perhaps you're suspicious. you spend too long in the bathroom on the flight. you change your clothes on a flight, depending where you fly to. all of these are red flags. you could, without your knowledge end up on this list. and federal air marshals will keep special track of you to see what you're up to in case you could be planning something. of course the privacy issues here, critics say it is worthless, doesn't work anyway. it has been going on eight years. charles: never stops. some republicans on the campaign trail, not, not running on the strong economy. we'll ask california gubernatorial candidate john cox if he thinks that is a big mistake and how it plays into his strategy for winning in

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charles: welcome back to "varney & co.". that's where the market has been since the election but today is under considerable pressure. technology again. netflix now 4%, microsoft, amazon all under pressure and the s&p technology index now testing its 50 day moving average. it's a big deal on wall street and must make a stand right now. get ready for the third hour of barney start right now and. joining us now dennis gartman. are you still bullish on the market?

>> after last week's action we saw in netflix two weeks ago gapping to the downside in facebook doing a face plant last week when the generals get taken out and shot you have to be careful so i want to be bullish with the stocks but they don't want to go higher and the leaders are turning to the downside. i own oil companies but hedging them with the readiness and you have to be careful. the fuel that has sponsored this bull market for the last several years had been the growth in the monetary aggregates and the adjusted base is now almost down 14%. economy is strong in my continue to grow stronger and i can continue to see the deep p growth at three or 4% without the field to sponsor you have to be careful but i think it's time to go to the sidelines. charles: to your points, in the first half this year as of the 500 gains amazon was responsible

for 36% and microsoft 18%, apple 50%, netflix 15% in facebook a present and google 7%, all of it and that's what you mean with the generals moving to the sidelines but today were seen the tech under pressure but financials are looking good and folks are saying they could step up and provide leadership and doesn't only have to be big tech, dennis? >> it has to be big tech and regular manufacturing concerns in the banking industry also. clearly, rising interest rates will be beneficial but i don't think banks alone can do it can continue to take the market higher in and of themselves. honestly, charles, yet to be careful of. like i said, i own valero because of that i think will become obvious over the coast of the next year but anytime i buy, i buy derivatives to hedge that decision.

as the height tax have done for such a paradigm by curing the market you got people stranded in these high tax and if you own netflix until two or three weeks ago you were feeling good and now with a gap to the downside and an island reversal you got yourself a problem. charles: by the same token, you're still up over 80% so people in those positions do they sell here because it's been tempting to take profits throughout this entire rally and a lot of times people look back a month later and say golly, i should not have done that. >> well, i can tell you i've been in that vision a number of times myself, charles. i understand the problems but if i owned netflix and watched the manner it has now broken done with a gap lower and the gap remains lower as i watched facebook do what it did last week, you don't take 20% of the stock of that consequence without doing psychological damage. if i were an owner i would reduce my size of my position. clearly, i would not be adding

to it. charles: let's talk macro for a moment. i know for a while your main investment team was on things that when you drop them they hurt. [laughter] and i love that. it's part of my think what i call dirty finger nails. industrial materials, but overarching what you consider the biggest threat to the economy and the stock market? >> honestly, i think the fed tightening and we have another two tidings this year that will certainly happen maybe for next year but more importantly as a doctor earlier the adjusted monetary base which is the stock for the broad super monetary growth is created is down 50% from its beak and clearly there's less money being so elated that there has been previously in the demand for that amount of money is continuing to advance. that's the greatest threat, i

think. plus, adding to the confidences of tree protection and tariffs which i think are silly blunt belief and put those two together, reduced monetary aggregates and the threat of greater tariffs and trade protection you have problems and comment here. charles: listening to you, that was interesting, because on the gdp number but i thought stood out with the final cells at 5% in inventory has been down 30 billion casino that will be made up. it looks like the consumer will be there two thirds of the economy and maybe things will start to land and velocity of money, i have to believe, it will pick up as the economy moves higher. >> velocity of money is beginning to pick up. it's been declining for almost a decade and the fact that for the past year or two you had an increase in the turnover of money which is a good thing. let us hope the consumer continues to be as resplendent in his fine circumstances as he has been for the course of the past several years but, i think if you continue to put the dour

pressure on the high tech stocks that is damage to psychology. we will see. of the past and write in the past right now the problem is there serious problems with trade protection and reduction of the monetary aggregates that have to be controversial. charles: also we should note that tomorrow income and spending will be our next update on that. dennis, i want to talk to you about caterpillar but record second quarter number operating profits are going to the moon and they hired over 10000 people around the world including 4400 in north america and confidence enough to raise guidance significantly. what you make of that? it's impressive. caterpillar is one of the great international companies of the world and if i have to be wrong about what i fear about the stock market and what i fear about the economy caterpillar argues the other side of the question. you have to be impressed by what you stop and let's hope it can continue in their outlook is what will prevail and i have my doubts but you had to come away

from a caterpillar had to say today impressed. charles: dennis, were always impressed with you. thank you. we will check back with you real soon. >> thank you, charles. always an honor to be on. charles: let's check on amazon. if your member they had those blowout earnings last week. the stock cracking under 1800 with a lot of key stock in the tech world breaking important port points. let's check on twitter but after last week's you can see a huge percentage decline and the reported fewer monthly average users and that could keep falling as it deletes fake accounts with did you lose any over the weekend? this saturday senator wants medicare for all and now we know exactly how much it will cost. pretty small price to. >> 32.6 trillion over a ten-year period is 3 trillion a year. you have to double the federal income and corporate tax rates to pay for it and the tax cost will likely outstrip the perceived payment and premium savings. here's the thing, 133 house

democrats now have medicare for all caucus, 16 democrats in the senate now wants medicare for all but it's interesting and what do they get with medicare for all with government control healthcare? long waiting times, not prescription drugs available that you need and treatment available that you need, so, i'm not sure that even can consider what it really means that government controlled healthca healthcare. charles: ashley, you lived through this - >> charles, fairly. charles: you made it to america just in time. >> barely. charles: the waiting and selective this and it's tough. >> there's waiting and not enough beds and is an ongoing problem. it's reached crisis point in the uk and are trying to figure out about how much money you throw at it it's never enough.

you have dissatisfaction among the nurses and doctors and they are not getting paid enough and doing too long shifts - these are the things you don't want to hear from your medical where everyone gets their main medical services from. i will say in the uk most people who can afford it will get private insurance because nhs is there as a safety net for everyone else but if you can afford it you get private insurance and better service. >> there's no incentive and a government run health system on the medical side of it. charles: it's tough. thank you both very much. let's check oil. oil is having a pretty good session. were up on 44, it was suggested it could go to $100. the counteract the impact maybe consider having exposure to that in your portfolio but meanwhile, the national average so that $2.85. now this, president trump taking a hard line on immigration says

he is willing to shut down the government over the wall and immigration reform and maxine waters is chiming in. you will hear what she is saying next when fox news brett hume so stay with us as the third hour of varney will be started. if you're turning 65, you're probably learning

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medicare supplement plan. call today for a free guide. charles: >> reality is in the last two administration's economy grew by less than 2% and in the first 18 months of this in ministration we were a little shy of 3% last year and on track to be at the percent or better this year and we really believe the internals of these numbers whether it be the dramatic increase in business investment or dramatic increase in the american exports all support the conclusion that the policies that president trump has been advancing in a public and congress has supported are working to revive

this economy. charles: that was vice president mike pence talking with maria bartiromo about the economy this morning but despite growth numbers republicans on the campaign trail are not running on the economy in this according to a report in the new york times. brett hume of fox news political analyst, what's your reaction to that? >> reaction is to be skeptical to the report. we need to know what the publicans cross country are talking about the let's assume for the sake of discussion that it is correct and that one of the realities of the economy as a political issue is it's a stronger issue when the economy is bad then when the economy is good. republicans in progress will benefit in some indirect way by the economy being good because people aren't angry at them. but the president is more likely to benefit the republican counterparts in congress so they

may be the case that in some of these races, local issues have come to the fore so we need to look at that must more carefully to know what's going on. charles: it is counterintuitive - we all care about how much money we earn and keep and we love it when the idea is that our neighbors and friends in our own relatives will now get jobs because that was counter to the great recession that lingered for so long. >> we had such a weak recovery. it struggled for such a long time to gather momentum and seems now to have done so. obviously, we'll see if it can be the same. fascinating to see the reactions to the 4% growth number for the second quarter and the widespread declaration we read that this is a short-term thing and a blip and will not last through the administration mike pence laming otherwise. we will know soon enough whether

it sustained through the next quarter and if it is, if growth path about the present. if it does for the year a lot liberal economist will be proven to be run. charles: for the last four quarters it's 3.1% i'm calling it the trump slam but to your point we will see. also to your point i thought it was interesting and the gallup poll recently on what was most working for the economy or for the elections the economy came down is number one but it's come down a lot because it's not a big issue or concern immigration went pretty big. we know president trump has taken a hard line on this. i would be willing to shut our government if democrats do not give us the votes for border security which would wall and must get rid of lottery catch and release and finally goes to system of immigration based on merit. we need great people coming to our country. i want you to listen to what democratic congressman mackey

waters said about the president. >> this president is a bully and he will try to intimidate all of us. he's not going to shut down anything. we will not be intimidated by his bluffing and his bowling. charles: before i get your thoughts onto time and this is a woman who was on a platform a couple weeks ago asking people to get in people's face and intimidate them and bully them whether they're in restaurants or malls so it's interesting she bring up the topics. the floor is yours. >> she makes a lot of news because what she says is so extreme. i would not pay much attention to what she says. the president has it within his power to shut down the government by vetoing a bill to fund it. that would have that effect and would require huge vote in both houses to override that. i think the president could do this if you wanted to whether when it comes down to it he will remains to be seen.

past governments shutdowns have always hurt the party being responsible. last time we saw this was the so-called schumer shutdown a year ago which lasted a couple of days before the democrats involved thought better of it and the government reopen. the previous instance was back in the obama years in a shutdown that republicans engineered over obamacare and it was a disaster and center pumpkin party rating to the lowest point in the history of the gallup poll. years later they did well in midterms but there's major intervening event that allow people to forget and that was the disastrous rollout of obamacare itself. this time if this happens in late september it'll be a month to the elections so this would be very fresh in voters minds and would amount to a huge risk on the president and the republican party if they were to go through with this idea. charles: perhaps that's why so many are pushing back on that idea. >> oh yeah, dumb idea. charles: brett hume, thank you very much.

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and your coverage goes with you, anywhere you travel in the country. we have grandkids out of state. they love our long visits. not sure about their parents, though. call unitedhealthcare and ask for your free decision guide today. charles: now this, birthrates in the us have been declining but a good soon see a boom. >> interesting trend reversal possibly being picked up. demographers are saying that the idea of the three child family was all the rage in the 60s, 70s and it started to reverse and recessionary periods but now we are seeing from 2008-2013 millennial's starting to move to the suburbs in that period. now they're doing it in droves and ditching the shoebox size appointments for big suburban homes that are cheaper and a

potential as the economy grows and wages go up will be able to afford having children. there has been no rebound in the birthrate poster session but there is a trend of millennial's moving to the suburbs and packing up their suvs and go another. charles: we had three and our family. >> bobby was ahead of the game. [laughter] charles: speaking of millennial's, the use of dating apps like match .com and tinder to land jobs. >> give me the job. charles: bait and switch, i didn't really want to date you but - >> if you look at the profile and they call it the great social equal or you see someone any say i never get access to that person to pitch myself for a job but maybe if i arrange for a date and as an increasing number of people linda jobs through tinder and bumble and okcupid and match .com.

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charles: checking on the big board. the dow is under pressure even though gains and losses are split evenly just about there. technology is a big drag last week on a overall market. republicans in the campaign, according to new york times that are running on the economy.

imagine that. joining us is john cox, california governor oral candidate. 4.1% gdp number, record low on implement numbers, record gains for employment for other folks how could the remote the party not run on that? >> and they should be. i will run on the idea it's great for california except that the politicians were in charge of the state and made it so people don't enjoy that economic growth. we have the highest cost of housing and pain way more than the national average on gasoline and pay way more for electricity and water in people can't afford to live in the state, charles and even though the country is enjoying this wonderful economic growth which is attributable to the policies of deregulation and lower taxes from president trump here in california we've got a bunch of corrupt politicians who are jacking up the cost of living and charles, i've been

talking about the forgotten californians. the people who are struggling every single day and i care about what happens to those people in these politicians keep driving up the cost of living out here to the point that we really don't get a chance to enjoy the great economic growth. charles: it's amazing because california has the worst income inequality of any state in this country and they do the things where it so i vacated either you're seriously wealthy where plastic surgeons have hundred million dollar homes or your extraordinarily poor and the people in the middle of trying to flee if they're not stuck. >> that's the point. fully half the people, our researchers are showing that half the people in the state, charles, want to leave. if you had a business and have your clientele was trying to get

away from your business would you be in business any longer? you would not be. the politicians in the state don't care. as long as they can raise taxes high enough to pay off their special interest bodies they don't care how horrible a job they do managing the state and look at what is going on. charles: maybe were running into a brick wall where some of these new taxes are doing poorly and your opponent gavin newsom is backing away from this notion of single-payer health care policy. baby we found a limb and said even californians will not ask back the government and big taxes. >> i would fiercely hope so. there's a big article today about how much the dmv is mismanaged and they also did a tax filing software system that been mismanaged in the sky want to put the government in charge of all healthcare. i mean, really, charles, this is the height of lunacy and not

only that he wants to double the state income tax in a state that's already the highest tech state in the country where people can afford to fill up the tank with gasoline or afford a house. where are these taxes going to come from? come from consumers and from people who are struggling every file and i'm not going to support and the people aren't and they will do something different and vote for change not the status quo on november 2nd. charles: one last one. philadelphia stopped an ice access to real-time arrest database and the city says the agency was misusing that information in your thoughts because we know the idea of illegal immigration is a huge issue governing. >> it's absolutely huge. you can see the crime rates going up in the state, charles. it's ridiculous and it's all design to get people talking about ice. this mayor wants to do away with ice and i'm sure gavin newsom is fine with that as well. the problem is they don't want

to talk about the other things they are messing up so what do they do? they put in sanctuary state, ice and all these issues so that people will talk about those and will not talk about how much their wrenches and how much the gasoline is, how our schools are 47 in the nation and they'd rather us talk about the fighting between washington and sacramento. i'm done with it will correct the things. charles: john, thank you very much. appreciate it. >> thank you. charles: we've reached out to gavin newsom to talk on the show and we not heard back from them. let's bring in judge andrew napolitano and what you make of this - we know this mayor seriously does not like the border patrols or ice - philadelphia - when they did the court battle but now the idea that they won't share arrest records will make ices job more.

>> when it in his ability - i'm smiling because when they share records with the feds the feds pay for it. this is a contract which says 4x dollars you are entitled to and the feds have direct access to the computer does not like someone is making a photocopy of a record and photocopying and delivering it to the feds but they pulled the plug on the feds and it doesn't cost them anything to get to the feds was pure cash coming into the city. what does that tell you? what government turn sound pure cash when it doesn't cost them to give anything in return, a government making an ideological decision. whatever you think about i.c.e. and this mayor and he must have political support to get away this is willing to say to the feds, we don't want your cash and therefore it will not give us. i.c.e. then has to, these are public records, i.c.e. has to physically send a human being into the courthouse to look at the records up rather than having instant access to it on a laptop.

charles: and that will make their job significantly harder. >> yes, it is. apparently the city of philadelphia will take the risk that someone might slip through the cracks between the i.c.e. a person getting into the courthouse and getting information in the city releasing the person before i.c.e. knows about them. charles: but it's all legal and perfectly legal? >> yes, it is. it could be a political fallout. if there is harm or palpable measurable harm to the public as a result of this, the mayor will suffer at the polls. charles: at some point there will be a story and i hate to say it but you got to believe there will be one of the stories because they occur so often and it's always the immigrant community, by the way, for the most part, that suffers the mo most. >> these are all big cities. here in new york mayor diblasio and the mayor of san francisco and seattle his eyes and until i.c.e. protects them. charles: next one. federal judge ruled in favor of a lawsuit tried to block the addition of a citizenship

question to the 2020 census saying it was an attempt by the warehouse to discriminate against immigrants. >> i am and have been for many years of post do all these questions on the census form because the constitution only authorizes one question, how many human beings, not citizens, how many human beings reside at this address? not how many toilets? not household income? not what is everyone's age? not with airborne but it's none of the government's business. i'm glad to see this challenge happen but i'm surprised that it is happening because the people that run the census are giving a certain amount of discussion in the discussion is unconstitutional but the lock gives it to them anyway. surprised a judge will allow a jury which is what will happen here to second-guess them. charles: this is not a lawsuit that could be will bounce around to different levels of additional system.

>> it could very well. look, if this federal judge orders the commerce department to change the census forms, and it's one year and halfway and they have not printed them yet but you're talking a lot of expense in a big deal so whoever loses will appeal it. will make a way to spin court - i don't know what the census questions and gotten pretty big and it got longer and it could be almost any kind of it's almost limitless to what - >> the census people showed up at the ranch of george w. bush and he said i'm not answering the stuff. they work for him and he told them to take away the fact. charles: thank you a lot. the judge will come back and be with us shortly as the president gets ready to welcome italy's minister to the white house in about 20 minutes. real quick. let's get a check on the price of gold. not too a lot these days. in the meantime bitcoin has been stating a stealth rally that was under 6000 and back up under

pressure today but we made a big move in a quiet move it tyson foods cut their full-year profit forecast citing concerns about trade and volatility and a commodities market. then there's the story. investors are watching cbs chief les moonves after sexual allegations that mrs. the board votes on his future today. they are counting on twitter won't show up for their followers. next, women for trump. their groups as they were shadow band on twitter and the cofounder is here to call them out. listen to this. american express raises parenting prices on business clients. this is without telling them and we got you the story in 90 seconds. (phone ping)

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>> taking a close look at american express but they're down over 2% after the latest finding that american express raised currency prices for business clients without warning. braking is down, the salespeople current and former salespeople said they did not inform the customers at the margin they

paid and they said would be the best price but that's particular margin they tracked would be basically subject to increase without notice. the ones to notice me the difference and they were told there may be a glitch or technicality and the company also saying they had to spot the change to a certain extent and say that we believe are transactions are completed and reported in a fair manner. american express

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charles: breaking news. relatives of two of the people who died in that duck boat accident in missouri earlier this month have followed a wrongful death lawsuit and suing for $100 million for the lawsuit claims the tragedy on decades of unacceptable greed driven and willful ignorance. now this. take a look at cbs shares down again today with alec occasions of sexual harassment against ceo les moonves. susan is here the latest. >> were listening [inaudible] a cbs board is set to convene today on a common call and this was scheduled as previously scheduled since they are releasing results on thursday but the board today is said to decide the fate of les moonves and ceo after allegations by six women in a written article for the new yorker those published on friday and allegations of

sexual misconduct. there was inappropriate touching and touching and these go back to the 1980s and some his recent is the middle of the 2000. les moonves did apologize in reference to this article and in the article itself he says in a statement - some consider them the best tv executive right now that is working in the highest-paid and raked in $50 million each and every year at least for the past the gates but the timing of these allegations are curious. they are embroiled in a lawsuit with the parent company of viacom and they're trying to

remerge these companies and les moonves and cbs don't. there were whispers that maybe they were behind these allegations. terry redstone, representative or her issued a strong seminar friday refuting these allegations saying the malicious insinuation that she is somehow behind the allegations of inappropriate personal behavior by les moonves is false and self-serving. according to the wall street journal a look like a special committee will be convened in bringing an independent law firm to investigate these allegations and the question is what happens to les moonves and cbs but we don't have a viable succession plan. charles: susan, thank you. now this but president trump accused twitter a blocking conservatives - one of those

groups says it was shadow band and women for trump during this now, amy kramer. cofounder for women for trump. amy, explain to the audience how you know that you have been you and your organization have been shadow band. what the evidence? >> thank you for having me on, charles. one day last week at the beginning of the week before the story broke we went and did a meet up in north carolina and i'm there with these women that i've never met before they wanted to follow us on twitter so i'm holding their phones trying to find women for trump and we are a verified account and it's not coming out. i had to look for myself and then find women for trump through my twitter handle and i'm also verified so it was bizarre then and i said something to our executive director and then the story broke about the shadow banning. i'm glad president trump brought this out because it has been happening in i'm not surprised by it. we seen censorship of

conservatives not only across twitter but this book, as well. i'm glad he's brought attention to it and i think twitter needs to fix it. charles: did you reach out to anyone at twitter or twitter itself? >> i have not reach out to anyone at twitter. i read the story saying they have fixed the problem and i checked earlier this morning and i don't know how accurate it is but someone sent me a link where i could check to see if there is a shadow band and us and it says that there is. i don't know how accurate that is. i have not checked from anyone else's phone but it automatically populates in my phone because i follow it and it's my count. charles: amy, over the last few months i met with jack dorsey, twitter ceo twice and had dinner with him once and once on another occasion over this issue incivility and they had a meeting today i was invited to but i couldn't make it but the point that - i tried to drive his hope that you got too many liberals in new york and denver cisco who are doing this manually or designing the

algorithms that are doing this and i think they're making a big mistake when they give tech words that is not shadow banning but it's unfair and does quote voices. people need to speak up if you want the platform to be fair to everyone so they should make a fair, right? >> what, i've heard him say and i've been told he wanted to be fair but it's like the town square. i agree. i came up to the tea party movement and that's when i got involved in politics and had it not been for twitter the tea party movement would not be here. that's how we came together. it's a great information highway. we need it but it needs to be fair. i think another thing they need to do you, charles, i know about the trolls in the box but they need to verify everybody and maybe not the blue check or whatever but facebook is much harder to have an account that's just an alias but twitter need to be better about that because people in some of the suspiciousness will stop.

it's ridiculous when you're getting death threats on twitter. charles: they have a lot on their plate. let's make this a shadow banning all of experience for everyone else and delve even deeper. amy, it's great to see you and it's been too long. we'll talk again real soon. >> i know. charles: check this out. harley-davidson will rollout and electric motorcycle next year. the bike will have a no clutch or gears and hardly says it plans to expand the line. it looks pretty cool. then there is tesla. speaking of cool. a new surfboard. the surfboard goes for up to $1500 and has the same finish as the tesla cars and is already sold out but some are listed for sale on ebay so if you want to get one of the cool surfboard there you go. >> capitalism, baby. charles: very soon, you will see president trump welcomed the prime minister of italy to the white house. they with us. our resident italian-american

judge andrew napolitano is back and

charles: check cbs. for getting word that les moonves will be suspended by the

board that according to a tweet from usa today. again, they are reporting that the board will suspend les moonves due to allegations of sexual misconduct. meanwhile, italian prime minister guiseppe conte will be meeting with president trump at the white house. blake berman, what is on the agenda? reporter: we expect him here in 15 or 20 minutes to the white house and has been certainly a level of admiration from president trump toward the newly minted italian preminger. remember, just before 37 a couple month ago in québec the president had come out and said that he thought russia should be added back into the group allowing it to move on to the g8 that it used to be. the only person that that the president back in that case was guiseppe conte in that instant. there is that issue and maybe that's what they will get into but obviously, there are outstanding issues as well.

for example, italy is a nato member and you know where the present stance on defense spending wants to see gdp for each nation at 2% and maybe even moving to 4%. italy right now is down to 1% and there's the issue of auto tariffs suspended for the moment and maybe whether the president will put 20% auto tariffs when you look on imports and when you look at the major car companies italy is certainly a country that comes to mind. you have ferrari, lamborghini, maserati some of the biggest brands to name a few. charles: of course, we hate to see those billionaires have to pay a few more bucks. [laughter] thank you very much, blake. now to our resident italian judge andrew napolitano. >> i always like this guy. he's a professor of constitutional law at a 600 -year-old law school, the university of florence". he's not a politician, no space government, very much a populist in his attitude but has an

enormous task in front of him. everything is bankrupt and cheating is epidemic and the tax rate is 65% and if you had real estate, local and national taxes so everyone cheats. it's a beautiful place and i will be there shortly for my vacation but it's a house of cards. charles: it is and that explains why finally the people of italy said no more astonishment. it is the odd pairing of the [inaudible] to me it's like as if bernie sanders and donald trump were copresidents. >> right. i might say bernie sanders and rand paul. they really are opposites but they have such disdain for the establishment that brought italy to the depths where it is now. it doesn't matter who ran the government's, bankruptcy. charles: judge, thank you very much. we've got to roll to the breaking story because usa today now is out correcting the story

- retracting and here's what they just know tweeted. we told you a month ago they tweeted that les moonves was suspended but what you have - >> this is what they think will happen and someone got it ready and had it ready to go and push the button and send it out by mistake. that is why you have to attribute these things when they do come out in the first place because they happen. >> there appointing a special committee. this report is earning this week and they also are in the middle of the issue with sherry redstone, national amusements wanting to get back together viacom and cbs so there's all issues that they are wrestling with charles: do you allow him to remain in current capacity or sideline him while the special committee looks into it. >> cardinal mckerik is out of

the cardinals even though no trials. les moonves can be out of cbs even though there is no trial. they are not entities regulated by the government. they can do what is they think is right for their entities without due process. charles: we should hear today? >> there will be a conference call. >> we don't know if shari redstone will be involved in these deliberations, right? >> she will be via the conference call. >> his arch nemesis. liz: listening in, talking about the deliberations. she has her own stake. charles: that would be tough also. she is fighting back pretty hard people are saying timing is suspicious. liz: she is rejecting that. charles: she is adamantly said she is not involved. some are questioning the timing, if you have two decade-ol' allegations why are they coming out right now? >> when they could hurt him and the present board. charles: we learned a another cautionary tale. who is first breaking news,

sometimes -- ashley: attribute it to someone else. >> charles, you did the right thing. charles: nasdaq is breaking key support, here is connell mcshane. >> do you have to follow tech stocks. i'm connell mcshane filling in for neil cavuto coast to coast on next couple hours. which i will be as they usually are quite busy president has been talking with conte even though he clashed many european leaders. you will have a joint news conference next couple hours. you expect trade