stuart: i agree with that. what about alex trebek? >> i don't know if he is doing that but retiring from "jeopardy." going out to pasture. stuart: american pharoah, alex trebek. retirement. now charles payne in for neil. what can you do after this? >> i will resist all the jokes running through my head charles: i'm charles payne if for neil cavuto. >> over the past few weeks they

haven't really spoken. why? because no one wants to concede, no one wants to give n we're seeing typical stocks, ones affected by trade talks, boeing climbing higher. everything up almost 2%. except for consume technologies. but another big story today is the earnings. apple earnings coming out after the bell. lots to talk about with apple. definitely strength. earnings per share expected to be 2.18 cents that is up 31% from last year. you don't think apple can do it. every year it seems to go higher. a lot of analysts no sells this past quarter. in anything apple beat earnings per share forecast for the last eight quarters. can it continue the streak? why are we expecting to see increase in apple shares and revenue? primarily increase in iphone shares and services. services is a big number a lot

of analysts will focus on. services include apple care, apple music, apple pay as well. they will be chunked in there. they expect that to climb about 25% this quarter alone. if you look at historical trends for apple. right now seeing $190. the average price target is 203 but usually whenever apple comes out with earnings, the share price climbs 3.9% higher or 3.9% lower. there is opportunity for short-term gain right now. last but not least, another big focus on earnings report, possibly earnings call is the outlook going forward. any new iphones in september, trade talk. what is trade with china? how is that going to affect iphone sales? they have 40 stores there, a lot of money and service revenue comes from china. we'll be looking out to see if there is any talk about that. back to you. charles: thank you very much. a lot to digest there. then there is this. president trump already securing trade concessions from the eu

the big question could china be next this national center for public policy research fellow who are was cooper and "the evening edit" host liz macdonald. i want to know for the audience, this is interesting it comes on the pmi report from china at a five-month low, another subindex at 23-month loy. there is no doubt they're feeling economic pain. maybe that pushed them back to the table? >> well it is pretty clear the president is serious about renegotiating the nature of this relationship and there is absolutely no reason, if the chinese are serious about supporting business growth in their country that they need to understand we should be serious about promoting business growth in our country. the cheating, coercion has to come to an end. we're seeing signs that is the

case. now with our booming economy, it is the perfect time for this negotiation to take place. charles: elizabeth, it is interesting, because this morning we saw strong income and spending number. by the way spending revised from the prior month. compensation at a 10-year high, employee compensation. we have the wind in our sales, if you will fight this kind of a battle, now the time to fight it. >> that is an important point for you and your guest to make it. the president is trying to cash in on growth what he is trying to do resetting the table on trade. the interesting anecdote you described about the pmi number in china, charles, is so important, i'm tracking news coming out of china, what exactly is going on inside of china? we know china's economy built on exports. manufacturers are we are hearing they are leaving china. they don't want to deal with the trade war. they are going to safe havens in vietnam and thailand and asia. they want to avoid the trade

war. they need companies to sell on alibaba's site, they need companies like nike. companies over there in china is getting rattled. china has done a 200 billion-dollar fiscal stimulus already. the yuan is weakening. watch this. this fell below under the radar screen about the e.u., charles, the eu handshake deal involved the eu stepping up to fight unfair stealing of i.p. theft and technology transfers. the eu does that. japan does it. the fact that the eu is now stepping up to the plate on that is really significant for what is going on with china. charles: horace, what do you make of the idea, china they could probably withstand this not necessarily economically but because of the way their political structure is, xi made himself a modern-day emperor, he doesn't have to worry about negative press, negative congress or even worry about people in his own political party who are against this. he does have that to his

advantage. will that make -- could that make a difference? >> the chinese government requires growth in order for it to perpetuate the dictatorship that runs that jurisdiction. you have breakers, the free media, send signals when there is problems. in china when you don't have those problems, those solutions as tools to help guide you and steer you absolutely need to maintain the kind of growth that we actually aren't truly seeing from china. they have a reputation that this kind of growth is sustainable and ongoing. it is starting to look like it has been a lot of hype. it has been a lot of misleading

representations. those things create problems for the chinese leadership. charles: also, emac, they grew at 10% for almost 30 years and their growth has slowed. they have amazing ambitions. they want to recreate the silk road around the world. >> that's right. charles: what do you think if we had a headline tomorrow, hey, u.s. trump -- u.s.-china come to agreement. throw a number out there, china promises or pledges to remove $150 billion worth of trade barriers, trade deficit, also stop joint ventures and also allow for greater access to the markets, could we have a 500,000 point session? >> we could have a million point. charles: thank you. >> you're right, it would be a whopper. it would be a big pop in the markets, you're right it would be another victory for the president. what we're seeing in china too, china censors dissent. we're seeing reports about think tanks, hey, china, what is your

policy here? it has to be reported out that china does not have a fan base in washington, d.c. the senate and republicans are saying what are you doing with zte? we don't like that part of your policy, mr. president. china doesn't have a lot of support in washington, d.c. it is bipartisan support seen largely on the face of it for what the president is doing resetting the table with tariffs. i think the markets would go up if he got the deal with china. >> i do too. even without the details, even without numbers i threw out there, wall street once it is over with, they enjoy the status quo than the heartland does. horace, i saw recently, where china is spending a lot of money on the folks down there to do their bidding in washington, d.c. one of the reasons there was compromise on zte, seeing john boehner's name thrown around. which do have to be careful. there are very powerful entities, including trillions of dollars in wealth given the way things are okay right now?

>> the status quo isn't going to stay. there are instances where the president of china can talk to the president of the united states specifically about specific issues. in order to maintain a healthy relationship you might see some response in this. that will not be able to be a tool for every problem. broadly speaking, even top dollar lobbyists are not going to be able to change the fact there isn't overwhelming support, there isn't moderately high support in congress or in the american media or the among the public for the continuatino of the policies that exist. it is actually very popular with the american people that the president would like to reset the table with regard to our relationship. charles: we all kind of inherently understand what we missed out on over the last two or three decades. thank you both very much.

federal reserve, meeting officially begun. of course trade is getting a lot of airwaves, but really not the top issue for corporations or for the fed. want to go to market watcher alan knuckman. alan i agree with you. >> dollar has temporary strength. only here in 2018 and 2017. it was absolutely positive straight down. we have seen a bit of a short-covering and a bounce. we're seeing happen in the united kingdom, japan yields rising. obviously the political policy of a weaker dollar helps the markets significantly. if you look here on the board, euro-dollar futures options pit, if you look on the board, once we get to june of next year, rates stall at 3%. so the markets are telling us we'll raise rates to we get 3% on the short end of the curve. they stall all the way out if

you look into 2020, 2021, 202 it, 2023 they're completely flat. the dollar won't be strengthening as we look further out. charles: explain this in layman's terms why it is so important. even president trump weighed in on this listen, he doesn't want the fed to be too aggressive, particularly with other central banks. >> right. charles: for instance the bank of japan didn't do much. they hinted at some point they will remove accommodation but they're not. we don't want our central bank making our currency strong for our economy when every other central bank to a large degree accommodating creating a big gulf and huge really impediment for to us compete around the world. >> right. that is a political fact right now. so rates will continue to rise, gradually over the long term. we're obviously at a very low level. be aware other central banks are starting to play the same game as well. in relative terms, if we all rise at the same rate, the

dollar will not strengthen. that will be very much a positive for the markets and will be a positive for metals markets. keep an eye on that. that is a second is tore in the stock market, metals and mining, gold is at one-year lows. recently we made new lows but did not make new highs in volatility. that is bullish sign, bullish diverse technically. we could get a short squeeze in all the metals markets that could help the sector and be a catalyst for the overall market if that gets a bit of a bump up. charles: we're looking at all the data, alan, almost every single day. >> right. charles: income spending, we saw massive revision to spending in the mid of of a prior month up .2 to up .5. that is a giant number. income solid, savings holding up pretty good. we have an extraordinarily confident american consumer who. >> correct. charles: how important is that the fed has to offset that with other intangibles?

>> i don't think we're getting too hot. we had a long recovery, we're looking eight, nine years. that doesn't mean it can't extend further out. there is no such thing as high or low. it is relative. there is no such measurement to measure the cycle, how long a cycle can go, it can go a lot longer than you think. fundamentals are set up perfectly. we're into buybacks. we don't often talk about that the buybacks coming into the stock market, buying shares back, that boost markets. if you look at corporate earnings, it has been off to the races. that will not change anytime soon. charles: i have to let you go but do you sense we could be on the cusp of all major indices, testing maybe even creating new all-time highs? >> absolutely, absolutely. i was looking for new highs in the s&p by 4th of july. didn't happen. cradle issues cropped up. it could be very soon. broad market of s&p, target is 3100 if it bounces disstanes of

that selloff it has done every single time in market history. charles: 3100. alan, thank you. breaking news from "wall street journal." chief of staff john kelly, white house staff, president trump asked him to stay on in his post through 2020. this comes after multiple reports of his departure. looks like he is here to stay after one year on the job. apple earnings after the bell. i will break it all down for you, where you can make some money. tune in at 6:00 p.m. eastern. next we'll break down how investors could get a big tax break. why the mainstream media is pushing back hard against that. ♪ my father passed this truck down to me,

that's the same thing i want to do with you. it's an emotional thing to watch your child grow up and especially get behind the wheel. i want to keep you know, stacking up the memories and the miles and the years. he's gonna get mine -but i'm gonna get a new one. -oh yeah when it's time for your old chevy truck to become their new chevy truck, there's truck month. get 18% of msrp cash back on all silverado 1500 crew cab lt pickups when you finance with gm financial. that's $9,000 on this silverado. plus, during truck month make no monthly payments for 90 days. and the wolf huffed and puffed... like you do sometimes, grandpa? well, when you have copd, it can be hard to breathe. so my doctor said... symbicort can help you breathe better. starting within 5 minutes. it doesn't replace a rescue inhaler for sudden symptoms. doctor: symbicort helps provide significant improvement of your lung function. symbicort is for copd, including chronic bronchitis and emphysema.

it should not be taken more than twice a day. it may increase your risk of lung infections, osteoporosis, and some eye problems. tell your doctor if you have a heart condition or high blood pressure before taking it. grandpa: symbicort could mean a day with better breathing. watch out, piggy! (giggles) get symbicort free at saveonsymbicort.com. if you can't afford your medication, astrazeneca may be able to help. if you can't afford your medication, ♪ ♪ our new, hot, fresh breakfast will get you the readiest. (buzzer sound) holiday inn express. be the readiest. 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. it's the only network that combines america's largest, most reliable 4g lte with the most wi-fi hotspots. and it can be included with your internet. which could save you hundreds of dollars a year. plus, get $150 dollars when you bring in your own phone. its a new kind of network designed to save you money. click, call or visit a store today. charles: breaking news. it looks like reports of john kelly's departure just a little from mature. blake burman at the white house with more, blake. reporter: palace intrigue is always the thing here. "wall street journal" broke a story that the chief of staff john kelly told the president at the president's request he will stay on as president's chief of

staff through 2020. that would be the through the 2020 election. that would be at least for the next couple years. i made a phone call during the commercial break, one story told me that indeed "the wall street journal" is accurate. we'll continue to make phone calls on this one but this would be, serve as pretty big ramifications for this white house. as you mentioned there had been long speculation, started i believe by "the wall street journal" most recently maybe a month or so ago that kelly's departure would be imminent. yesterday was his one-year anniversary at the white house. the timing at least appears to match up. president trump sent out a tweet yesterday thanking john kelly for his one year as chief of staff at the white house. as you know, reince priebus, the first chief of staff did not last nearly as long, roughly six months or so before he was replaced by kelly. kelly was seen as someone who came in here, instilled a sense

of order at this white house. there was somewhat after revolving door who could go into the oval office. who had the president's ear, how information was presented? kelly was seen as who could clamp down on information flow, brought out a process about it. has instilled a sense of discipline around this white house. now, the "wall street journal" reporting, as i mentioned, we have one source verifying that it is accurate that john kelly is here to stay through the 2020 elections which would mean for the next two years as white house chief of staff to president trump. charles? >> blake, before i let you go, you understand this better than anyone, i also read in addition to the rumors he was leave, i kept how he was neutered or cornered or couldn't do the job he wanted to do, was ineffective. i more or less, felt like, to use main street term, being "punk'd" by the media to a degree. almost as if he was being edged out or nudged out if you will.

does this speak also to the fact that he does play a prominent role there? do you doubt that he would stay in that position if he didn't feel like he had influence? reporter: well clearly speaks to the fact that the president wants him, right? i started off this hit by saying palace intrigue is always a thing around here, because i feel like for 18 months or so, every week there is palace intrigue story. here we are yet again. john kelly, we were at some point last month, so yes, clearly president trump wants him. there were stories, you're right, within the last few days, that his influence waned a little bit. as we know, charles, this is a president who sometimes does his own thing and catches people within this white house by surprise. there has been that. i predict there will always be that going into the future with this president and whoever operates around him. but the sense is, around here that the john kelly is someone, at least in the very days after

reince priebus, and in the months following that, someone who sort of brought a sense of here's where this goes, hear's where that goes, these are the principles we work around here. charles: blake burman. great stuff the thank you, man. reporter: thanks. charles: are more tax cuts on the way? the treasury department is looking to cut investments on invests known or profits known as capital-gains tax. the media framing this plan as benefiting the rich only, but keith fitz-gerald says investors of all sizes would benefit from a capital-gains tax cut, and not just the wealthy. keith explain to the audience why that is. >> well, first of all, you have to get the argument off the table it will tax just the rich. it will hit them because they pay the most taxes. so of course it will benefit the rich but here's the thing, any investor who has an expense reduced stands to make more none any. whether you're doing dividends or capital gains, doesn't matter, if you bring more money to the bottom line, guess what, you have more money for the

future this is not trickle down or trickle upon. not any of those things. raw data. more at the end of the day, that is always a good thing, no matter what your income bracket. charles: this is pretty interesting idea floated by the white house, the idea it is not indexed for inflation. someone watching this show bought a house 10 years ago, it will go up a certain amount typically based on inflation, right? everything sort of goes up or prices of things go up pause of inflation. you don't necessarily want to penalize someone for that. if you can take that out of the equation somehow, just only penalize them or tax them on true gains, listen, when i look at stocks, stock reports i look at constant currency, things like that, give me better understanding of true value? >> well i think that is a very valid point, charles, again, inflation is the enemy of every single one of us, doesn't matter, rich or poor, inflation eats into your wallet. if you get that it off the picture somehow.

the real issue, this is what the mainstream media i think is sidestepping, people are not saving. do you need that $10 starbucks? do you need the fancy iphone? there are big ramifications to that. i hear all the time if you save money an invest it you can do something with it. that is the crux of it. charles: more people incentivized it invest. if you make money you will not be penalized because you made money. overall before i let you go, keith. dow up 180 points in large part because rumors u.s. and china back at the negotiating table. what do you make of it? >> i think that's a good thing because the countries need each other. for all the political rhetoric on each side of the pacific we need each others to go to the dance. i am hoping cooler heads prevail. we have apple earnings. i think 2.26 a share. i think that would be good for

the markets. charles: putting that down for you, buddy. appreciate it. iran says no to a meeting with president trump but could iran be forced to the table? some people actually think they could be. we'll explain. ♪ with tripadvisor, finding your perfect hotel at the lowest price... is as easy as dates, deals, done! simply enter your destination and dates... and see all the hotels for your stay!

tripadvisor searches over 200 booking sites... to show you the lowest prices... so you can get the best deal on the right hotel for you. dates, deals, done! tripadvisor. visit tripadvisor.com

>> i don't know what is going to happen but i do believe in accountability, but not just for politicians thaw disagree with. everybody believes for accountability until it is their guy. make mo mistake, les moonves is my guy. he hired me to sit in this chair. he stood behind this show while we struggled to find our voice. he gave us time and resources to succeed. he stood by us and i like working for him. accountability is meaningless unless it is for everybody. whether the leader of a network or the leader of the free world. charles: stephen colbert last night addressing a turmoil

facing his network, as les moonves is still on the job as cbs chairman amid sexual allegations. charlie gasparino has exclusive news. >> still has a job and still maintaining his public profile. what sources tell fox business network he plans to speak during the company's earnings call on thursday. there was a huge question mark as whether les moonves the ceo, amid this investigation, now an internal investigation into allegations made in the new yorker about sexual misconduct. there was a huge question mark as whether he would go before the analysts as he usually does. charles: right. >> usually is answering questions about earnings and you know, maybe, new shows coming up that is that wit be quite a different scenario, amid allegations and investigation. we understand, now, i say plans. why is that? because something new comes out, they may change. charles: sure. >> as of right now he plans to be on the call. from what we understand his advisors are prepping him for

the obvious questions coming up his future, about the investigation. i'm not sure how much he will get into it. there is easy way, i can't talk about it amidst the investigation and move on but they are prepping him about these questions. he does plan to be on that call. it is interesting because you know, a lot of people when they face these allegations they go, kind of into hiding, right? they're not saying much. les is taking a different approach. he is taking a much more public profile. there was something on page six today, about him going out to dinner with his wife in beverly hills, california, wherever they were after yesterday's decision by the board to keep him on amidst the investigation. you don't get that story unless you're given an out just so you know. he was all smiles. he knew he would be in the paper. he is doing it differently. it is clear that he is fighting for his job. it is clear that he will ramp up, that he will keep, maintain a public profile. as of now, he will be speaking

on that call. telling you, charles. i kind of snooze through earnings calls. this will be a good one. charles: although, hard for me to imagine buy and sell side wall street analysts getting too sensational. not like he bumped into the "tmz" guy at the airport. >> not like me breaking his chops. read commentary, rich greenfield and some others they have been pretty critical, they have been asking, ramping this up. les moonves is not just any old ceo. charles: of course. >> he is maybe most powerful man in media, running a significant media company embroil in all sorts of stuff. analysts have -- and his, he, his, whether he stays or goes has a huge impact on the stock and on top of that, he is embroiled into the controversy with shari redstone he wants to wrest control of cbs from the

controlling redstone family, all the controlling shares. how does this weaken or help impact his position? that will be asked. charles: a lot of questions about the board, even dealing with this, in terms of crisis management they knew this was coming to a degree. they were caught flat footed. >> james stuart in the "times" wrote amazing column. you would think if they knew this was coming they wouldn't have rolled the dice. charles: already had an investigation, or would have taken the sort of measures that people want, particularly from a publicly-traded company. >> as someone who covered ceos for a long time i remember one ceo telling me, what does your board say about this? he goes, my board is my board. especially someone like moonves has enormous control over board and independent directors. they're not that independent. charles: rubberstamp boards are problem for investors for decades. this continues. >> this might be a key example of that. we'll see. by the way we'll keep reporting this out. this is a big story going

forward. charles: great stuff, charlie. by the way the stock is moving higher. moved on the report. firefighters battle 17 wildfires across california. this thing is not slowing down. we'll have a live report from the ground right after this.

copd makes it hard to breathe. so to breathe better, i go with anoro. ♪ go your own way copd tries to say, "go this way." i say, "i'll go my own way, with anoro." ♪ go your own way once-daily anoro contains two medicines called bronchodilators that work together to significantly improve lung function all day and all night. anoro is not for asthma. it contains a type of medicine that increases risk of death in people with asthma. the risk is unknown in copd. anoro won't replace rescue inhalers for sudden symptoms and should not be used more than once a day. tell your doctor if you have a heart condition, high blood pressure, glaucoma,

prostate, bladder, or urinary problems. these may worsen with anoro. call your doctor if you have worsened breathing, chest pain, mouth or tongue swelling, problems urinating, vision changes, or eye pain while taking anoro. ask your doctor about anoro. ♪ go your own way get your first prescription free at anoro.com.

charles: deadly california wildfires continue to spread, now forcing over 20,000 people to evacuate. hillary vaughn is in redding, california, with the latest. hillary. reporter: charles, this is a really good snapshot what this neighborhood looks like before the carr fire ripped through leaving behind destruction and carnage in its wake. if you look to my right, these houses over here, pretty much untouched. normal neighborhood homes. but if you see all around it, houses completely burned to the ground. even this house right here, really a shell of its former self. the carr fire, completely

ripping through it. that caused destruction we see right there. we got an update from call fire. the carr fire is among the top 10 most damaging and dangerous fires to hit california in its history. it is on pace to climb higher on the list. it is still 25 -- 27% contained. it is climbed to number seven on the top 10 list. there are 12,000 firefighters working to contain 15 separate wildfires burning up the state. so far over 280,000-acres have burned, 1200 structures destroyed. these fires not only devastated communities but they are also deadly. the carr fire claiming the life of one firefighter just down the road from where we are standing here. >> pointing to the ashes, saying fire. she knows, they know what's going on. they just don't know how severe it is and we're doing everything to keep them in that state of mind where they're happy and were not freaking out. >> i lost it all, every bit of

it. i'm sorry. >> that's okay. >> sorry. it has been a hell of a month for our firefighters. reporter: over 40,000 people are displaced, scattered from their homes. these fires are erratic and complex. one of the most devious and deadly fires these crews have scened. their unique and unpredictable nature have meteorologists marveling. in men did -- mendicino, a giant cloud than trigger its own internal thunderstorm. that is how powerful it is creating its own weather system. in redding a tornado of fire, some call it a firenado, charging towards the town in a death spiral, whipping winds at whirlwind speed and destroying everything in its path.

16 state sent crews here to california. the national guard dedicating, deploying 800 soldiers and airmen. black hawks in the air would normally carry weapons. today they're carrying tons and tons of fire retardant. charles? charles: hill -- hillary vaughn, thank you very much. charles: iran is pushing back against president trump. the currency is collapsing as new u.s. sanctions are about to hit. lieutenant colonel danny davis if the economic pain will force iran to the negotiating table. colonel davis the real hit 200,000 real to one dollar. losing 50% of its dollar since march. this is extraordinary pain on country, internally there is a lot of turmoil. could this eventually get them to the negotiating table? >> charles, i'm not sure it will be able to do that but certainly will increase their pain.

the question is how much pain will they endure? the problem is we're putting too much pressure on them, we're putting them in defiant position will which not necessarily work for our advantage. we need to be careful exactly what we're trying to accomplish here. if we push too hard, we could get things into position where we, some people say, military option is the only thing left. that would be the absolute worst thing for our interests. i think there are much better ways to insure our interests. charles: how would you go bit then? i mean, because, if we don't have them cry uncle economically, and we allow the status quo, they receive billions of dollars and there is enough, sort of, dissension within that country right now with truck strikes and even the revolutionary guard complaining about the real, that it seems to me, maybe this is when you tighten the screws a little bit? >> ironically may be the opposite. i have been talking to a number

of iranian dissidents hate the regime, but say the way we go about it may actually backfire. the regime is saying, look all this pain is because of the americans. they're imposing this on it. this is none of our doing. it is distracting from as you point the out, very legitimate discord within the country because they are saying hey, why are we spending so much money and time in syria? why are we doing things in lebanon, all of that? they want them to take care of their own domestic economic needs. this real falling certainly will not help that it could spark nationalists, we don't like the regime, when people do this to us, following the claim that the government's making, that it may actually say we'll endure the hardship. we don't want to work against our own interests in this. charles: so how do we help what is happening internally there? these folks that you have spoken to, people that i have spoken to, we know there is something going on, something with the potential to be significant? i know the official policy, we

don't want to support regime change but we would welcome it? >> if there was positive internal development that would get a democratic outlook, this is something the united states would welcome but what we want to do, make sure we don't heighten the threat we say that iran plays because when you look at the region there, you see that they're not a threat to dominate anything in the middle east. you have israel, you have saudi arabia, both very powerful economic and military powers that will constrain iran. it is not as if we don't press quickly, some bad thing will happen to the allies or the united states. we have the ability to have patience here, to let the internal dynamics take care of their own. if we slow down external pressure especially politically, i were ternnally iran is left to deal with their people. they have to answer their hard questions without the benefit saying this is coming from the united states. charles: colonel davis, thank you very much.

>> always my pleasure, thank you. charles: breaking news. facebook announcing it found a coordinated effort to sway the midterm elections this story is breaking as we speak. we'll go to get more details for you after this. ♪

you shouldn't be rushed into booking a hotel. with expedia's add-on advantage, booking a flight unlocks discounts on select hotels until the day you leave for your trip. add-on advantage. only when you book with expedia. but allstate helps you. with drivewise. feedback that helps you drive safer. and that can lower your cost now that you know the truth... are you in good hands?

charles: breaking news. facebook says it has discovered coordinated efforts to influence the midterm elections on issues like unite the right and abolish i.c.e. the company says this involves fake or inauthentic accounts but they don't know who is behind this. let's go to radio show host ben kissell, foxnews.com columnist liz peek, and john mccormack. john, let me start with you, the news is just now breaking. this is not very detailed but it is a suggestion, it does you know line the sort of thinking that 2018 these midterms will be highly watched to see how much influence there is and just how much, how vulnerable we are as a nation. >> yeah. i mean you heard people like dan coats say that the system is blinking red. i think the social media influence is probably the lowest level of election interference, really bigger concern are things like theft, hackings to sway the election but what we did learn

over the last couple years is that you know, foreign adversaries are vied to influence, stir up strife within america, whether left or right. i mean all sorts of different causes. they have gone in, just to bring out anger and strife. i don't know if these are fake accounts. i have no chance to look exactly what happened but seems like a good idea. charles: we know twitter has just gotten rid of millions of so-called fake accounts and part of those were bots used in these sort of attacks in the past. we'll see about elections. i like the idea that john brought up, from a broader perspective to me the big story in all of this isn't the attempted attacks/meddling, liz, but the idea the world knows how vulnerable we are and what our fault lines we are and as a nation we should also be introspective, while we address those, hey, if it is this critical, maybe we need to address them as well? >> i think a lot of people trying to address it. most, particularly twitter and

facebook, other organizations -- charles: from societal point of view? >> so what? we'll become more skeptical about every piece of news that comes our way? i think facebook is under tremendous pressure to be more than forthright, activist revealing some of these characters operating on their network. i think it is pretty darn convenient timing deflect a rise problems facebook had. they had the worst-ever collapse in a stock in american history in terms of a dollar loss. so i think it is very helpful for them frankly, politically, oh, we're working very hard to make sure this effort to destablize our elections is covered by us and prevented. >> 100 billion-dollar session to the downside. >> we have to stop trusting what we read on facebook on twitter and facebook became fact. i don't know when it became fact. it is not the bible or ten

commandments. charles: them stopped trusting traditional media. >> facebook started this as a way to rate attractiveness of women. it was not supposed to be a huge massive phenomenon. i think it has done a massive disservice to the discourse of this country. social media erode ad lot of social trust, really eroded a lot of our relationships with one another. i think it is counterintuitive what it is doing to bring us together. charles: that is the point i'm trying to make. we have serious issues in this country and the world knows we have these issues, whether race, based on income, demographics, age demographics, feels like we're tender, this keg ready to blow, john, and just need as little it about of poking. of course if you're russia and anyone else it is fun to poke to see what happens? >> at the end of the day we're free citizens after free republic, we can choose not to let sorts of information to

influence us. we can do better research, be more civil in our disagreements no matter how strong they are. charles: you think that should come from the leadership position or every individual? >> it is everybody. charles: tomorrow i will be more civil? i'm not going to troll anyone. i will not let anyone troll me? >> you have a personal choice not to troll people. it is not something you are forced to do. >> there was article in "wall street journal," duluth asking everyone to be more civil in the region. it worked. people are tired of this. they are tired of anger and malicious content and so forth. that is not uplifting. it can not be uplifting, go on and as people do say you're an idiot. what does that do for anybody? i don't know. >> regarding the real nefarious hacking russians did regarding the dnc, it is being blamed on memes. hillary is satan all this kind of stuff. if you're voting based on a meme, honestly how uninformed do

you have to be? maybe stay home, i don't know. it also seems a little bit nerve-wracking to me, scary to me, mark zuckerberg, jack on twitter, are harbingers on free speech, decide what is true, not true? what makes them able to do that in non-biased way? >> we have seen pushback. they are taking accounts down based on algorithms their people initiate. trigger words. some of us would disagree with those approaches. controversial. charles: i would say in the last month 1/2 i met with jack dorsey twice. once at a dinner with 10 people and month ago privately. i was invited to speak to the entire company yesterday but i couldn't do it. i think he is is trying to make the effort but i think they're moving so slow. listen, here is a guy who had to apologize for eating at chik-fil-a. the idea that he is, i joked with him, i know you're serious if we meet next time instead of chick-fil-a out in front of it, we'll put a couple folding chairs. the daunting task to fall on

these two individual is kind of interesting. >> i'm more concerned to ben's point about maybe the censorship where this goes. i would have no problem if twitter wanted to suspend actual nazis. the problem we're calling everybody a nazi. defining fascism down. that is problem. these platforms are to have robust debate on controversial issues. abortion, transgenderrism, day rights. people shouldn't be treated if they're nazis for having a mainstream view one way or the other. charles: there is ugly tweet out today on melania. it is still up. still up when i came out here. when do you take that one down? there is no consistency with regard to the people who, they own the platforms but -- >> social media is sort of the living embodiment of our social

unconscious. what people are, they have a lot angst, they have a lot of anger, they have a lot of frustration that they don't feel comfortable vetting with real life. they put it out there, like a polluted ocean in inyaw right now. it really does not reflect. charles: we have to go, 15 seconds, 20 seconds, what is wrong with the end user? i like the block button. i get called uncle tom, coon, every day. i hit the block button. >> take it down. time for people to distinguish between hateful and hate speech or combine the two. that twitter thing about melania, that is hateful. charles: thank you folks very much. helping out on the breaking news. dow up 172 points. chicago pmi when we're right back. liberty. liberty ♪ 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. ... metastatic breast cancer is relentless, but i'm relentless too. mbc doesn't take a day off, and neither will i. and i treat my mbc with new everyday verzenio- the only one of its kind that can be taken every day. in fact, verzenio is a cdk4 & 6 inhibitor for postmenopausal women with hr+, her2- mbc, approved, with hormonal therapy, as an everyday treatment for a relentless disease. verzenio + an ai is proven to help women have significantly more time without disease progression, and more than half of women saw their tumors shrink vs an ai. diarrhea is common, may be severe, and may cause dehydration or infection. before taking verzenio, tell your doctor if you have fever, chills, or other signs of infection. verzenio may cause low white blood cell counts,

which may cause serious infection that can lead to death. serious liver problems can occur. symptoms may include tiredness, loss of appetite, stomach pain, and bleeding or bruising more easily than normal. blood clots that can lead to death have also occurred. talk to your doctor right away if you notice pain or swelling in your arms or legs, shortness of breath, chest pain or rapid breathing or heart rate. tell your doctor if you are pregnant, breastfeeding, or plan to become pregnant. common side effects include nausea, infections, low red and white blood cells and platelets, decreased appetite, headache, abdominal pain, tiredness, vomiting, and hair thinning or loss. i'm relentless. and my doctor and i choose to treat my mbc with verzenio. be relentless. ask your doctor about everyday verzenio.

i kept putting it off... what was i thinking? ok, mr. jones... we're all done. i told you it was easy. with life line screening, getting screened for unknown health conditions is so quick, painless and affordable, you'll wonder why you hadn't done it before. so if you're over age 50, call now and schedule an appointment near you. for just $149- a savings of over 50%- you'll receive a package of five screenings that go beyond your doctor's annual check-up. ultrasound technology looks inside your arteries for plaque that builds up as you age and increases your risk of stroke and heart disease. after all, 4 out of 5 people who have a stroke, their first symptom is a stroke. so call today and start with a free health assessment

to understand your best plan of action. so why didn't we do this earlier? life line screening. the power of prevention. call now to learn more. charles: welcome back to cavuto coast to coast. i'm charles been in for neil cavuto. stocks surging as we look to start to read talk trade talks. nicole. >> good afternoon, charles. we saw the future have that pop right before the opening bell on the headline that the us and china were said to be seeking a restart talk to diffuse the trade war and that secondary mnuchin along with the chinese premier were having private conversations and looking for ways to reengage in negotiations and that came on the heels of "the wall street journal" reporting that there was official data that business

activities in china had been faltering in the month of july because of the terrace. that said right before 9:30 this notable uptick in adult leaders on the dow jones industrial average which include you can see industrials themselves, ge, caterpillar and 3m are up two or 4% and those are good news there. after the bell today we will be focusing on apple. they have been in stock and front and center and somewhat overbought. there's worry in the traders that i speak with a note i read each day. apple is key. also, the market is pricing in for the options market think to charlie our senior editor pricing at a three half% move. up or down on the apple shares tomorrow. we do expect volatility following this. we'll have it right here on the show after the bell as we get those numbers.

no one has a sell rating on apple but will hear everything from iphones and china and fornicate rates and how they affect the company but this one is key because even the good news is all in the group. charles: thank you, nicole. the federal reserve meeting right now is a two-day meeting and there set to take on the street issues but there's not much alarm from companies so far. we want to go to ted oakley on if the tariff fears have been overblown - ted? >> i think the thing about it is it's too early, charles, to find out. if you look at the place we think it will impact is the manufacturing and the margins in particular. just a step for you, if you look at gdb as a percentage in manufacturing that percentage is 12 but if you look at the profits in the s&p 500 it's

about 40. if you squeeze those margins it is more as a stock market effects than it does a gdp effect but i think we're too early to tell because event often on. charles: over the weekend with over half of the s&p 500 companies out out of 159 conference calls they listen to, only 19 companies said that tariffs had a major impact on the second quarter or the foreseeable quarters coming up. that's a relatively low number. you gotta specifically be aluminum can make her like coca-cola, which by the way, has other issues like a 30 year decline in drinks of carbonated soda or the company that buys canadian lumber. are the ceos being too sanguine about this or as a form of confidence that it will be resolved? >> that's what i was saying. it's too early yet. you've only had a short period of time for that to take place and if you look at - look at

orange corning, mohawk, gm, is going to affect some companies but we have in the think it will affect the company's in the margin area, profit margin area, or than any other place and probably more manufacturing. i'm not certain that some industries won't be affected from it and it's hard to say at this point. i don't think they have enough information at the stage to say it will affect them at all. charles: of the 159 comedies about 20 odd said that but it was interesting to me how many said it did not have an impact and they say visibility they don't see it having an impact. beyond that, for me, when i look at the earnings report if you like the dollar is the number one issue with strong currency. we'll president trump doesn't like a strong dollar and certainly doesn't want the fed to make the dollar stronger. as the rest of the world is sitting on their hands in their currencies. what else then would be impact in this market for you, ted?

>> well, the dollar is one thing. if you look at china they are pressing it down on us and you see why. i think the biggest thing for us right now is evaluation in general and we don't see the valuation that would like to s see. we carry a cash bumper right now in stock accounts and not because we don't want to own things but that so many things don't hit the value levels we want at this time. we are carrying cash at this point. charles: you're looking for a pullback, there's a lot of value out there, ted, you don't like the traditional value ideas? >> if you look it will we bought the last quarter we shifted somewhat to consumer stables and we looked at nestlé and your lover and that everything and to a degree we have not added anymore than they had were not

out of the market. i don't mean to imply that but were 23, 24% liquid right now only because if you look at the last three or four months and more money managers will tell you this you find something you want to own, you pick it up in two weeks or three weeks later it falls on you little bit and that is typical of the late stage market it doesn't mean the markets over but it's typical of late stage. charles: all right, ted. ted oakley, great to talk with you. >> thank you, charles. charles: breaking news. facebook discovering efforts to sway the midterm elections on its platform. susan lee is here with more. >> i'm currently delved into the common call that been rallied by facebook. michelle sandberg just open it. we can report with her discussing until the call ends but basically what facebook is saying they have identified a coordinated clinical propaganda campaign and they shut down 32 facebook instagram accounts in relation to this and they don't

know directly who it's been tied to or linked to in the not said they've not ruled out that russia might still be behind us or be part of this. now, were also hearing that this is goes back to to divisive social issues that these accounts have been linked to and this is very similar to 2016 with the russian metal in case and the vote in presidential elections. the two issues and i want to be clear about this respects as they discovered coordinated activity around issues like that unite the right, do not write it took place in charlottesville, virginia and this goes back to maybe interaction with russia's one internet research agency account and again this is all preliminary and the other shoe that they've known is coordinated activity in relation to these three hundred and 32 facebook accounts is to abolish i.c.e., a left-wing campaign

that wants and immigration enforcement agency and facebook says basically one of their you would say a compliments and identifying these campaigns on the platform in their platforms to possibly influence votes in light of the midterm election. charles: they are putting themselves in the back according to the north times and some of this started to discover about two weeks ago in originally it was a pages and 17 profiles and seven instagram accounts and their competent enough to report this. we just had this conversation. i think it's boring for the american public to get fixated on meddling and being attacked and that stuff the idea that anyone would know that our nation has a serious instability problem based on race and immigration and that's where they seek to devise more on

anything else. it's an ugly situation and hope we can get our hands around it and i'm glad facebook is doing this - are you somewhat skeptical that maybe this is the flexion and they sought two weeks ago and they just had the worst one-day session of any stock in history in terms of numerical loss, $100 billion session in stock is down for the year and 50% in the last five days. is there any disingenuous feel to this to you or do you think it's an authentic action? >> in the earnings call they were nice and maybe they felt sort in terms of getting ahead of the issue in 2016 and with cambridge analytical and they've apologized many times and it felt like that earnings call center and around the russian hacking event and they got it down to revenue which is why the sock to be edited. charles: and he got into revenue because they say bill invest money to catch this and prevented.

>> that's right. bringing in artificial intelligence and hiring more people and i'm trying to do two things at once but trying to listen to the call the cyber security chief and trying to get more information on what they discovered at the midterm elections at this point. again, facebook is many more to prevent these events from 2000 thing happening again and there's a lot for both taking place and this year we seen mexico and the midterm elections of coming so this is something they're spending on and they are communicating, as well. charles: will let you finish the call and maybe get breaking news later in the hour. humming up, president trump is looking at a new tax break but this time he's looking to do it without congress and don't forget to watch my show tonight. we got the apple news and of course, how to make money and will talk to you about it all because as the market wall looks crazy there are some opportunities as well. we'll be right back. there's a lot to love about medicare.

there's also a lot to know. the most important thing? medicare doesn't pay for everything. yep...you're on the hook for the rest. so consider an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. a plan like this helps pay some of what medicare doesn't. so you could end up paying less. and these are the only plans of their kind

endorsed by aarp. selected for meeting their high standards of quality and service. call unitedhealthcare insurance company now to request this free decision guide, and learn more. like, medicare supplement plan, give you the freedom to go with any doctor who accepts medicare patients. it's nice to have a choice. 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: the trump administration sticking to cut taxes on investments. adam shapiro has the details. >> kevin brady, says he supports indexing the capital gains tax to inflation but he prefers that the treasury department and

permit the policy change to a change in regulation. treasury secretary stephen nguyen says the policy change is being evaluated internally and senior treasury official says foxbusiness that the evaluation focuses on the economic impact of the policy change and adds that the magician would prefer congress to take up the issue. the potential change would allow a taxpayer to adjust for inflation the original purchase price of an asset like house or stock as a result of that indexing would reduce our backup capital game subject to tax and ultimately reduce the tax elected when you sell the asset. the congressional research service study from july 24 of this year's is a positive change would - and this is a quote from the study, paper high income individuals with 60% benefiting the top one tenth and 90% benefiting the top 1% in income distribution. in other words, the best benefit

of the indexing of capital gains tax to inflation would go to the wealthiest 1% of income earners in united states. commercial register service study says the idea was redacted back in 1992 based on a finding that the department of treasury does not have the authority to index capital gains. there is a decision pending in congress sponsored by senators ted cruz and james in off to index capital gains with similar bills and how sponsored by the presented is devin nunes and jack [inaudible]. charles: thank you. media critics claiming capital gains tax that they only help the rich but does this translate to votes come november. brad blakeman speaker in washington examiner white house reporter, gabby. gabby, this is low hanging fruit for the mainstream media and it's easy, more benefits for the rich and nancy pelosi came right out swinging on this and they

never have to think about who benefits for this or everyone who makes investments probably will be thrilled that they would be indexed to inflation. >> absolutely. that's something the white house is rbc going to be tardy if they decide to go forward with this. there are still questions that the legality of pushing something like this through treasury that need to be decided on but democrats are going to seize on this just like they did with the trump tax cuts us all. they will say this is exclusively a benefit for wealthy americans and i think it's one of the reasons why were hearing about this proposal right now. there isn't watchfire behind it. it seems as though the imagination, while they are considering it, are pausing and trying to pause and see if it's a good move to make before the midterm election. charles: brett, and surprises came up to be honest with you. right now i'm surprised it did not, next year and all legalities that were put out and

maybe they can hit the ground running. i think it's a great idea and refer anyone and an incentive for everyone to be an investor. >> and the best way to compasses is still a decision. we hold the majorities in both houses currently and it would be seen as he went. i don't care what the mccarthy. anytime were not sending more money to washington they are unhappy. the fact is, capital games today is an alienation of property. people are forced not to sell because of the text conferences and if you unleash sales whether stock or real estate, what will happen is there is a trickle-down effect in people all picks up the properties and hire contractors and chances are with a cell for 4 million they might purchase for 6 million and then someone will produce the building for 4 million. i believe in the theory of velocity money. every time a dollar changes hands within the population it inches up the economy, not us any money to washington.

charles: leah, it harkens back to president bush through dabbled with the idea of ownership society where the media hated that then and i'm sure they'd hate it more now. >> i do think that while there are benefits to doing this to the economy in the horton model basically shows if they would not be any change in the distribution of the tax burden. in others, well-to-do people were not pay a lower percentage of the total tax burden than they are now even if it worked and plummeted. from a political point of view and i think from a moral point of view and economic the first thing we have to do is take care of the middle class. the number one priority should be to make the middle income tax cuts and the trump tax bill permanent. that should be number one priority and we should have a comprehensive tax bill. if we include indexing capital games which is a reagan idea and it was reagan's idea going back many decades that the government

should not be rewarded by inflation and a fight we index regular income to inflation right now but we've got to take care of the middle class. by the way, if are going to index capital gains we should also index savings because right now the average middle income saver is getting a negative return after taxes and we ought to only tax your returns on savings in your yield on savings after inflation. charles: gabby, of course the invitation would love to make personal income tax permanent and i think technocrats 2.0 would be even more for the middle class but the idea the president trump was to go this loan does underscore the fact that it's hard to give all republicans and occasionally a handful of democrats to bypass any of these measures. >> yeah, that's message we've heard consistently. he is pointing out how many democrats oppose the trump tax cuts and there was not a single democratic senator that

supported the last tax bill to pass through the senate and so it would be difficult to get anything else or any sort of tax cut 2.0 or anything like this that would help calculate capital gains tax liability through congress. i think that is why they are looking at doing this unilaterally but again, there's a question and it's worth pointing out there are still conservatives who might even be resistant to something like this. if you go back to the tax that occurred last september 1 amendment introduced but was included in the full text of debate with the child tax credit and indexing that to ablation and we saw them push back among conservative gop senators and. i don't know of the idea that would gain broad support across the publican party. i know something most conservatives support but that's one of the reasons why the ministration is looking at going long on this. charles: "the wall street journal" reporting president trump is willing to push off this funding battle over the border into the mountains but lee, you state you got a plan

that was fun the wall. what is the plan? >> well, mike rogers bill in 2017 last year that funded the border wall call for a 2% tax on remittances from foreign workers to mexico and i think to central america. i would make that a 10% tax rate we should have a 10% tax on all individual money transfers from the us to mexico or central america countries. that could yield, charles, about $15 billion over five years which is 60% of the cost of funding the $25 billion border wall. it would also reduce the incentive, quite quickly, for illegal immigration and increase the incentive for buying american goods and services by these workers that are from overseas or for mexico versus wiring all that money home and also gross up what they earn which reduce the gap in wages between these immigrant workers

and legal residents of the united states are citizens of the united states. it would lessen that downward vortex on wages that we had at the lower end of the scale. charles: greg, your thoughts? >> we cannot afford a government shutdown politically before the midterm elections. we have to get brett cavanaugh confirmed by the senate and were playing with fire. i think the press is using it as a large point however, i think after the midterms of a shakeout it may be possible or - i hate to say it, it may be necessary to shut down the government if there is a change in power in order for the president to get items done before the end of the year but certainly before the midterms. we got too many important things including brett cavanaugh. charles: the white house itself shut it down pretty quickly because it made it through various outlets in this morning that trump was willing to put this on the back burner.

>> yeah, and i think we just heard a sour that president trump has kept john kelly on as chief of staff until 2020. we will see if he left that long but i've heard from forces and what has the john kelly was resistant to any government shutdown ahead of the midterms. he feared that that would impact republicans politically heading into the crucial election and so i think there's been a lot of pushback within the swing to the idea of a government shutdown over border security funding. >> no need to do that. charles: once again, lee. i want to ask since you brought up john kelly, gabby, how important was a snooze today because there's been a lot of speculation floating that he would leave and be that his role has been minimized to the point of being comical and that it was them demeaning to a man of his stature in both cases, i think, it's the media pushing or prodding and not necessarily reflecting so how important was

today's news? >> it came as a surprise to many, myself included. i've been ready and willing to write john kelly leaves the white house story for quite a while based on what i've heard from both inside and around the white house and today the president is confident that he has the right chief of staff they are to be done through the midterm elections in after. even if there's a democratic house he believes he has the right structure in place to navigate that situation. i do think this to come as a surprise to a lot of the media and many of us but john kelly was on the out based on what we've heard from those close to him saying is not particularly happy in this position and also those who said he's lost influence. charles: maybe he just does not look happy, that's all. [laughter] thank you very well. stocks up right now and the dow is up triple digits, in fact. there are a bunch of great economic data and one more on

this rally right after this.

charles: john kelly staying on the job and agreeing to remain chief of staff through 2020. this after multiple media reports of his quote, imminent departure. did he change his mind or did the media get it wrong? editorial director vince, again, i marvel at the amount of articles i read last week or so that not only with kelly out but that he been his role he been hemmed in and no voice and it was the typical thing we read in blake berman talked earlier in a show about palace intrigue but this is media's percolation that has run amok these days. >> the media speculation does run amok these days and like to heighten the drama. a give credit to the notion that was internal chatter that he was considering taking out the chief

of staff but i want to point to a couple of things. it looks like that is over and what intrigue is over. john kelly stayed on. how much they make people care? the adversary within washington dc that the media cares about and put the spare cares about is not something that registers high on the concerns cares of the american people and this is among them. the presidents chief of staff but they voted for the president, not chief of staff. to your point this morning we learned that conversation for workers rising at its fastest pace in decade and that won't make any of the mainstream media news outlets at all. more people care about that than even john kelly staying but it is interesting because it does feel like this rudderless ship which is a narrative for the trump in ministration in the first year with a high turnover that that narrative is probably starting to go away. >> i think so. it went away, by the way, when john kelly showed up, this notion that there was chaos in the white house. john kelly brought stability to

this white house and that is what the president sees in him and he wants to keep him on for the next few years. that makes sense. john kelly is not a political climber in any way of the traditional sense. he's there for the good of the country and thinks is important to serve the present. so keep doing it. charles: i want to switch gears. some of the media hitting the president for calling on the daily caller yesterday and chuck todd, he's suggesting that it's a troll farm. >> he works for net work dedicated hook line and sinker to the democratic party. he's done good journalism in the past but i was disappointed to hear those words cross his lips. here we are within a week after a cnn reporter was asked not to attend a white house event and even the daily caller we stood there in solidarity with her and said we believe the reporters should have access to these events. what do we get a repayment?

chuck todd coming out and criticizing us for even having the audacity to ask a newsworthy question at a press conference with the president of the united states. our white house correspondents are there, asked the question of high relevance involving government shutdown, got clear answers from the president of the united states into the public a great benefit by advancing the new cycle. how does chuck todd respond? by attacking us in a partisan way. charles: they go low, you go high. i will say this. i sat there and it dawned on me that it was different and we did not hear about michael cohen or the crazy scandal that dominate the mainstream media and i think the question set a tone for the press conference that was refreshing. >> yeah, i agree. the public is clear on what they care about. gallup has pulled most important issue in in july 22% of the american public in order topic reaches this height, 22% of the american public that immigration. you wonder why we would ask a

question about immigration and government shut down. it exactly in line with what they were people care about. as far as russia is concerned michael cohen, those are interesting questions but less than .5% of the country is even worrying about that issue. charles: i will say congratulations to you and that reporter. a great question and i thought it set its own that we had not seen in a long time. vince, thank you. president trump calling the coke brothers a total joke. next. a big gop donor on what many are calling big issues for the midterm. fact is, every insurance company hopes you drive safely. but allstate actually helps you drive safely... with drivewise. it lets you know when you go too fast... ...and brake too hard. with feedback to help you drive safer. giving you the power to actually lower your cost. unfortunately, it can't do anything about that. now that you know the truth...

are you in good hands? [music playing] (ceo) the employee of the year, anna. (vo) progress is in the pursuit. audi will cover your first month's lease payment on select models during summer of audi sales event.

charles: breaking news. president trump just now tweeting - we are reacting to

that now. policy advisor and canary llc, dan everhart. first, your thoughts on the narrative was the president trump was okay delaying a potential shutdown ahead of the midterm elections and perhaps at the after being persuaded by folks like mitch mcconnell - >> i think trump is trying to look at all options on the table to get the wall in the economic policies he wanted his proven he's not afraid of a fight whether before or after the midterms. charles: i do also believe the one shutdown saga, trauma that we had i felt like chuck schumer was the one who blinked. universally it's because most of think when you look at it it was chuck schumer who blinked so maybe trumps calculus is right

on this. maybe the democrats were more to lose than republicans? >> absolutely them were to lose but trump has shown by showing his hand he is also shown he stuff and aggressive and assertive in trying to get me done for the american people. charles: if he does this, there's anything in washington dc and that is get off the status quo. [laughter] the idea that everyone complains about the same things whether unfair trade or this or that and no one asked on it and here's a president who continuously act on it and shock people and everyone is like whoa, enough is to be that but if we complain the issues never can result. >> there's a saying i've heard many times in washington we need company to perform. what that means it for next generation's problem and will just talk about it. trump is not read that book and his out to get stuff done and a bull in a china shop and he's

trying to govern at the speed of business, not the speed of government. if those people off. charles: it really does. also, he sent off to the degree the koch brothers. president trump tweeting about them saying - you were at their last gathering. >> yeah, and colorado springs this weekend. first of all, what the koch brothers do with helping communities is largely unreported and a great thing for this country. i think trump is stylistically i would not of said what he said but it is right in terms of governing is much harder than being on the outside during lots of people that during lots of people their time together. while the koch brothers have a good libertarian streak and there's a lot of good in their platform with trying to do i think trump is gone enormously difficult task trying to govern them of the economy forward. i think that it's completed. charles: everyone talks their book and is the coke brother book cheap labor or cheap raw

materials that come in from other countries and poor borders and if that is they will certainly be out of tune with president trump in his voters because it feels like they threw down the gauntlet to republican specifically saying hey, you need to follow us and you pick us or pick the new trump motor and that's a difficult spot for some of these folks need money from them. >> yeah, and i think - i would characterize with her after her mother about is different. they are for free trade and smaller government and for a more efficient government and get frustrated as i do sometimes with politicians that say one thing when they are running and pivot a different way when you get in. charles: the signs will be held accountable. dan, appreciate it. next, will be passed in new movie prices will hike and the update on the facebook call on election meddling, were talking 2018th not 2016. be right back.

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. it's the only network that combines america's largest, most reliable 4g lte with the most wi-fi hotspots. and it can be included with your internet. which could save you hundreds of dollars a year. plus, get $150 dollars when you bring in your own phone. its a new kind of network designed to save you money. click, call or visit a store today.

charles: movie pass raising their monthly suspension price. christina with more been a yes, it's stupid it's going from 995 a month to $14.95 a month and that's because maybe they're getting movies, no, not the reason but they said that getting to continue to provide attractive services but it's about a cash crunch the company

has been pacing over the last little while. you had just yesterday a blackout for subscribers was 3 million according to the company who weren't able to purchase any tickets. let's go back and talk to the country at her and what the companies the going over. last week will bring up the one year drop in the stock and there was a reverse stock split and you saw the stock go from [inaudible] to $14 and plans on friday when the company said it was running out of money and it needed to borrow about 5 million and then you have yesterday a blackout prescribers were able to buy their tickets. today the company announcing that yes, they will increase their price. that's when we saw the stock price go back up. a big ride for investors over the last little while. parent company fear seen on your screen is who owns movie pass and this comes at a time when you're trying to give his people to go to the movie theater and spend more money when you have

competition like netflix, blue and many other competitors entering the market. as well as amc. amc also announced they are launching their own monthly pa pass. the difference with amc as you watch and maximum three movies a week but there's no limit on how long you can watch the new releases. that the issue with movie pass. the executive producer of the show right now, ralph, has complained he can watch the movies after two weeks because with movie pass you have a two-week movie time to watch it. then you pay for. he's not happy about that and many others as well. charles: interesting idea but they got in over there had promised to much. christina, i want to ask you about facebook because you are on the call this our can you give us an update? >> we know the company has announced the pulldown 32 accounts on facebook and instagram because they were inauthentic and the people by the council were to they said they were. the call this is a reason they

came out with this information and being transparent is because there are events that are being put together by these fake accounts and these people and they're not saying necessarily it's russia but a lot of similarities between the russian ira which is the research agency and internet agency saying a lot of links. you had an administrator with the ira who was also a cohen minister on one of these new accounts they just deleted but they said they're able to delete that within seven minutes. the reason they're sharing this is some of these events like the anti- know so that unite the right was a white supremacist rally in charlottesville and there was another project scheduled for next week to protest against that and that was one of the events they took down saying that it was inauthentic and another event scheduled for generally one also inauthentic and the important thing here is sheryl sandberg

was on the call, ceo of facebook, said they are investing heavily, really heavily, to stop these attempts or fake accounts but they are getting smarter and smarter and how they put up these fake accounts. it'll be a matter of trying to weave their way through it and catch them. they believe they can do it and investing heavily in hiring more people. charles: christina, thank you. meanwhile, the cyber threat is increasingly real and deidra bolton reports that they're taking it seriously. she's outside the new cyber security center in manhattan, deirdre. >> yeah, this is a real meeting of the minds and a call to arms, if you like. between numerous government agencies so right here at this conference you had the head of the nsa cyber security and head of the fbi and of course, kiersten nielsen and you have heard a pretty and that is all from the government side and

including energy secretary rick perry and from the private enterprise side you have numerous ceos from tech companies and telecom companies to banking companies to energy companies here and the idea is that these two side sides must work together, share information and share best practices in order to fight cyber security threats. when i spoke with secretary nielsen about what she sees as a bsi here is what she told me - >> the biggest threat in my mind is that we do not partner. what we see the adversaries doing is crowdsourcing. they use box and paid influencers and governments and anyone and everyone they can attack us. the biggest that is if we don't work together to counter that. reporter: they have created this national risk management center and in many ways, secretary

nielsen himself, described it as the 911 call and the 911 headquarters for any cyber aggressions but the point is private enterprise can work out to the government. i also spoke with her about sometimes how private enterprises don't want to share proprietary information and don't want to share data and it's difficult to retrain everybody to want to collaborate but i was speaking with the ceo of the second-largest utility in our country and he said they face attacks and he knows this for a fact and has security clearance. he said millions of times a day that he realizes that his company there are people fishing and trying to get in and trying to disrupt the power grid and disrupt our way of life and essentially create chaos. i know you're speaking about this latest breaking news of facebook and i spoke with the dhs undersecretary and said they work closely with facebook today included getting calls about that. the idea that he said he gets

paid to be paranoid. no one here sleeps well at night, charles, but they're working for safety and security. back to you. charles: the attacks are nonstop. thank you. millennial's are turning to this risky move to purchase a home. what is it? we will tell you what it is when we come back. g, a little bit of water, it really- it rocked our world. i had no idea the amount of damage that water could do. we called usaa. and they greeted me as they always do. sergeant baker, how are you? they were on it. it was unbelievable. having insurance is something everyone needs, but having usaa- now that's a privilege. we're the baker's and we're usaa members for life. usaa. get your insurance quote today. you shouldn't be rushed into booking a hotel. with expedia's add-on advantage, booking a flight unlocks discounts on select hotels until the day you leave for your trip. add-on advantage.

only when you book with expedia. . . . alerts -- wouldn't you like one from the market

when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today. charles: younger homebuyers facing uphill battles. a new report showing one in

three millenials using 401(k) money to buy a house. real estate expert is with us. you say you say this is really dangerous? >> well, yeah. have you heard the term, buying champagne with beer money? this is actually what is happening here. you have the largest subsection. charles: if you can get away with it. >> how long can you get away with it. this is the largest subsection of the country taking their investment money, 401(k) money, one in three is taking 401(k) money to put towards their down payment. the idea for buying real estate, if you can't afford to, you shouldn't buy it, right? right. real estate is not a right, it's a privilege. if you don't have the financial acumen to put a down payment on it, you don't buy it. second thing that 401(k) is promise from your younger self to your older self that things will be okay no matter what. the their thing is, that you have tremendous fees that come with this. so you're adding to the price of

the house, which could have, you know, severe, terrible impact for you later on. charles: right. >> the fourth thing, you know, in large part the 2008 recession happened because a lot of people who coin buy homes were purchasing homes. charles: they are using money, right? not sort of no money down stuff we saw in the -- >> they are. millenials put over half a billion dollars into the real estate market last year in this country which is a tremendous amount of money. charles: they're the largest age group now. so it was -- >> surpassed baby boomers. what happened to the gen-xers? charles: we miss the out on everything i guess. >> right. charles: what the caution is, though we want them to be interested in real estate. we want them to become homeowners. form household. >> absolutely. do it in the right way. the problem, if you absolutely have to do it, if you see amazing value that you don't want to pass up on, you have no

other resources, your parents can't give you money, can't get a loan from the bank for down payment, most banks wouldn't give it to you anyway, take the 401(k) money, but you borrow it, pay interest on it as you would. you don't have to pay the income tax on it. charles: right. >> if you were to just take it out. charles: right. >> but it is not, he will reese state is not for everyone. py renting -- charles: let me ask you. i think a lot of think people in metropolitan areas, these are rent traps. the longer they stay in there, it will be tougher to get out because the rents outpace their incomes. >> they do. there is major disparity between what rents are and home values are compared to what people's incomes are. what you pay for a starter job, what you got paid in the 15 years ago, you pretty much getting the same money today. you can't save. charles: rents particularly in new york, thank you very much. >> appreciate it. charles: folks the dow jones industrial average, up 166 points. we got a big jump out the gate

on news of u.s.-china trade talks. also a bunch of great economic data. i will break it down tonight on my show, "making money"st 6:00 p.m. here is trish regan to take you through the next hour. trish: a showdown on congress as the president doubles down on his threats to shut down the government over funding for his worder wall. we'll hear from senate majority leader mitch mcconnell any minute from now. he will be responding to the president's threat, we think? is this political suicide, or could it actually be a home run for republicans because it will excite the base? i'm trish regan. welcome, everyone, to "the intelligence report." ♪ trish: president trump taking on the establishment with his hard-line message on border security. republicans don'tt