for apple. dagen's bet. >> always focus on the stocks and the people who are underappreciated, because they surprise you just like apple. >> like it. maria: that'll do it for us, have a great day, everybody. "varney & company" begins now. stuart: good morning, everyone. mr. trump plays hardball on trade. instead of 10% tariffs on chinese products coming here, the trump team's talking about 25%. he's clearly upping the ante. china's manufacturing juggernaut is slowing, export or orders to china's factories slowing. they need america's huge market. china says it will retaliate, but they are vulnerable. america's economy is booming. that gives mr. trump a lot of leverage. as usual, any news on trade trouble means trouble for the market. the dow will open a little lower this morning. now, when the computers read that negative trade headline, in come the sell signals, and the market goes down.

in the past, the selling hasn't lasted. we should say though the dow would be falling a whole lot more if it were not for apple. look at this. after its spectacular financial report late yesterday, apple is going to open at a record high, around $198 a share. if it gains just five more dollars, it gets to $203.45, apple becomes the first trillion dollar company, and apple is a dow stock. we have a three-hour show. let's see if apple can hit the trillion dollar mark while we're on the air. you know, anything is possible. [laughter] "varney & company" is about to begin. ♪ ♪ stuart: oh, that hurts. that, that now -- let me explain this. we're having a little fun at the expense of the new york mets because they lost, 25-4, to the

washington nationals. you heard it right, 25-4. i'm going to give you some numbers. ifit's the worst loss in mets' history. washington led 9-0 after the first inning and 19-0 after the fifth. that's the first time since 1876 that any team led by that score at that point in the game. having a tough season. elizabeth: you really had to load it on there. stuart: are you a mets fan? elizabeth: no, but my brother-in-law is. ashley: i didn't think the football season started until later on. stuart: oh, that was cruel. it was cruel but justified. [laughter] let's get serious. dan morgan, you've been through those spectacular are numbers for apple, tell me if apple is still the juggernaut that it's been for the last decade. >> i think so, stuart. i mean, it's interesting to see

that we're having a mature market in smartphone sales, and yet apple has been able to put together such great profits by selling higher priced phones like the apple x or anniversary in the iphone 8. so i expect this strategy to be very successful going forward. stuart: okay. so you're looking into the future, i don't know what they said on the call last night about the future. i think it was probably pretty optimistic. you're looking to the future and saying this juggernaut has not yet slowed down, it's not yet stopped. >> that's correct, stuart. i mean, not only the fact that they're selling higher priced phones -- which we talked about -- but also they have these emerging markets like in the service area, like their app store, like their apple care, itunes music and also new products like apple tv and so forth, home pod and so forth. so they have some new things coming up and, obviously, they're in a mature market which is in the smartphone space.

stuart: now, will it get -- look, it's a silly question because this morning apple is at $198 a share. if it gets to $203 a share, that's just five more dollars, it reaches a trillion dollar valuation. is there any doubt in your mind that it gets to a trillion dollar valuation? >> i think so, stuart. i mean, it's not much left, right? five or six more dollars, we could do that by the end of the day or even by the duration of your show. [laughter] so very optimistic you'll see some good trading coming into the nasdaq. i know it's already up this morning in preliminary trading, so i would expect apple to hit that point either today or by the end of the week. stuart: excellent. that's just what we wanted to hear. i want apple to hit $203, trillion dollars on this program today. let's see what happens. dan, thanks very much for coming in for us, always appreciated. >> thank you, institute. stuart: quick check of the futures, that is to say how we're going to open this morning. we're going to be down just a fraction for the dow but up 26

points for the nasdaq because apple is part of the nasdaq, obviously. by the way, 219,000 private sector jobs were added in the month of july. that is a very strong number. and it suggests a strong number on friday morning when we get the overall big picture jobs report. we've got a couple of stocks which are always affected by trade trouble. the first is boeing. it is down just .6% this morning. nonetheless, that means it's a drag of about 14 points on the dow. okay? so there's some negatives here for the dow industrials. got it. take a look at the ten-year treasury yield. right now it is at 3%. it made it. that is sometimes a negative for the stock market but not that big a negative this morning, not with apple going to $199 a share, and apple is a dow stock. then we have tesla, reports its profits or whatever later on today. but already elon musk is picking a twitter fight with a hedge

fund manager. what's going on? ashley: that would be david einhorn, president of green light capital who's been a longtime short of tesla. he's accused musk of putting dangerous products on the road, of burning through cash like it didn't matter. now he announced or it was announced via twitter that he's fed up with his tesla, which is ironic that he has a tesla, lease. he said, look, the touch screen isn't working, the power windows, i'm done with tesla. and that was reported by bloomberg who says einhorn isn't renewing his lease, and that was a response from elon musk, he says: tragic. we'll send einhorn a box of short shorts to comfort him through this difficult time. stuart: i think mr. musk is on dangerous ground, because after he releases the numbers this afternoon, he's got to get on the call. if he repeats that disparaging -- ashley: well, einhorn has called him desperate and erratic in his

behavior, especially with social media. he's like the president in that sense, he can't stop himself. if he has a thought and he's upset, he's going to air it. stuart: well, he better stop it. ashley: however, einhorn has lost a lot of money on tesla. the stock is up 18% on the year, it's killing einhorn. stuart: because he's a short. ashley: he goes the other way. stuart: see how that plays out. let me get to that hard line president trump is taking on trade with china. as we reported, instead of a 10% tariff on $200 billion worth of chinese goods, it could be 25%. here's the president on that from last night. roll it. >> we've taken the toughest ever actions in response to china's abusive trade practices, and i have tremendous respect for president xi of china. but this has been too many years of abuse. $500 billion a year. stuart: come on in, brad

blakeman, former deputy assistant to bush 43. i don't think the president has much support in the business community for his hard line with china. the basic, the troops, they loved it. but i don't think business likes it. >> well, they should like it because this is a, this is a long-term project with china. they've been taking us to the cleaners for years, and president trump says $500 billion trade deficit is enough. it's got to stop. look, china today is a country of makers, takers and fakers. they make our products, they fake our products and then they take our technology. they honor agreements in the breach, and then it's a one-way street. they treat our products vastly are different from the products they sell to us. so i think donald trump, short-term pain, long-term gain. the market should be looking long term because it's in their interest to have a freer and fairer trade. stuart: but the president could only be taking this strong stand if our economy is growing as it is -- >> absolutely. stuart: -- 4%, and their

economy, they're beginning to slow down. >> exactly. and that's where leverage comes in. you pointed it out earlier. we are in a perfect position now to even the playing field. we cannot retreat when we're so strong. and we're not asking for anything we're not entitled to, and china knows that. and they respect strength. stuart: let me get back to republican support for presidential moves. the president is threatening a government shutdown again. here's this tweet from late yesterday: i don't care what the political ramifications are, there's no way the democrats will allow it to be fixed without a government shutdown. again, brad, the republican party doesn't want anything to do with a shutdown before the midterms. >> no, and i don't think the president does either. i think he's talking out of frustration. certainly, we can't have a government shutdown before the midterms. why? because we have to get brett kavanaugh on the bench by the start of the supreme court term in october. we also have a lot of things

happening. we have the budge resolutions to get through in september, we have new health care rates coming out before the midterms. but this i will say, i wouldn't put out of the realm of possibility a government shutdown after the midterms. this may be another kick the can down the road, and then we'll see how the midterms shake out and possibly, i think heading into the holiday season, things could get ugly here in washington. stuart: they're always ugly. >> yeah, that's true. [laughter] uglier. stuart: where you been? brad blake whereman, thanks for -- blakeman, thanks for joining us. there's a new report, i think you've seen it, my hell januaries -- my hell y'alls don't want to work in the construction business. how about using some immigrants? [laughter] not me necessarily, but, you know -- facebook suspends more than two dozen accounts for trying to meddle in the midterm election. coming up, someone who says mark

zuckerberg is sweeping this problem under the rug. wait til you hear this story, a $24 million scam involving that mcdonald's monopoly game. the person accused was an insider. what's that all about? well, we'll tell you after this. contemporary make-overs. then, use the ultimate power handshake, the upper hander with a double palm grab. who has the upper hand now? start winning today. book now at lq.com.

has your best interests in mind? well if you don't, you're not alone. but me tell ya', for the past couple of years i've had the great pleasure of catching up with dozens of people 50 and over who are actually customers of the aarp auto and home insurance program from the hartford. and i've gotta tell you, if there's one thing i've heard time and time again, it's that people really trust the hartford. i guess that's why they've been voted one of the world's most ethical companies 10 times. - the thing that impressed me the most about the hartford was the customer service. everybody i've ever talked to it's like i always get through to someone and they're always helpful. - [matt] that kind of caring, it's pretty rare these days. and that's one of the reasons why the hartford has the only national auto and home insurance program endorsed by aarp for more than 30 years. and if you're not an aarp member, the hartford can help you join in minutes. - [woman] to get your non-obligation quote call the hartford at

or go to and see how much you could save. - you know when i'm choosing an insurance company it's comforting to know that the hartford has been delivering amazing service and value for their customers for over 200 years. - the hartford really took care of me. after the repairs were done they even came and picked the loaner car up, i didn't have to do anything. i mean they couldn't have been more accommodating. the hartford is with me every step of the way. - you know it's really inspiring to see people living out their dreams. backed by the confidence of having the hartford by their side, and they even have lifetime renewability. that's the hartford's promise not to drop you even if you've been in an accident. so, let the caring agents at the hartford help you find the perfect coverage. - [woman] join the millions of customers 50 and over who trust the hartford. call the hartford at to get a non-obligation quote or go to

stuart: well, look at this, this is the health insurer humana. they report better profits, they sold more health care plan toss the elderly and disabled, they have a rosy forecast, and the stock is down a buck at 3.13. >> caesars are going to provide sports betting assistance in new jersey and mississippi. caesars up again, 1%, no change for scientific games. apple, this is going to be the stock of the day if not the week, the month, the year. all-time high at the opening bell today, it's now at 199. we are on a $1 trillion valuation watch. now this, white house chief

of staff john kelly says, yeah, he's accepted president trump's request to stay on the job through 2020. i guess this brings stability. elizabeth: yeah, he's done a good job. he's cracked down on leaks, reined in temporary security clearances. the president is now saying he'll be with me for seven is years. [laughter] an insider at the white house says he could stay through 2024. this comes on the one-year anniversary of john kelly -- stuart: stay through 2024? elizabeth: it's the inside joke that the president's going to win re-election. stuart: i got that. [laughter] elizabeth: there has been turnover, right? h.r. mcmaster, hope hicks, a bunch of people leaving, but not many leaks these days. stuart: that's true. certainly not very damaging leaks like the early days of the administration. catastrophic it was. stays through 2020. president trump in florida yesterday, as we've been reporting, my hen y'alls don't

want construction jobs. ed lazar, former white house economic adviser writing in "the wall street journal," send out your young, your educated. he's talking about immigrants, skilled immigrants. come on in, michael bellman, associated builders and contractors ceo. there's a shortage of construction workers. millennials don't want the jobs. why not bring in more immigrants? >> stuart, i think that's a great question. we've got a significant work force shortage. we're at all-time highs, over half a million work, job opportunities in our industry. yes, we've brought on about 300,000 over the last 12 months, but when you think about the millennials, if you take out vo-tech training, education, shop class and you give only college promotional materials to the guidance counselors and nobody wants to talk about careers in technical education, no wonder we've got this systematic problem. that's why we're excited about the president signing perkins act yesterday.

it does two things, changes the system. one, it basically takes away and streamlines the cost to apply and comply with federal grants for technical education. that is significant. the second thing it does is encourages employers in states to -- and states to partner with employers to bring them in to design the curriculum so that the student competencies in that product is employable when they graduate. stuart: why do you think millennials don't want jobs in the construction business? is it because they don't want to get their hands dirty? >> i think it's the best kept secret in our country. working in construction industry -- you've had so many stories of people that have been on your show, one was an apprentice who went through his four-year apprenticeship training a year after he graduated he owns his own electrical contract company. yesterday the president highlighted one of the graduates of the technical institute that they were at yesterday, he's

making six figures. it's a big secret. all we're doing in schools is saying you've got to go to college, you've got to go to college. stuart: how much can a welder make or just entry-level welder in a construction company off the top of your held? what can they make? >> so an entry-level welder that comes into an apprenticeship problem is going to make probably 30, $35,000 when they graduate and get the competencies that they need, and we can get them up and running in 18 months, they can make over $100,000. the demand is that high at this moment many time. stuart: what about an electrician? you go in at an entry-level position, and what do you make when you finish with the aparen hisship? >> -- apprenticeshipsome. >> when you graduate and you're a journeyman electrician, you're going to be making 60-70,000 with the opportunity to make over 100,000 if you're willing to work and put in that

overtime. stuart: if you get word out of those kind of incomes, i think you'll get a lot of applicants. michael, appreciate it, sir. see you again. >> thank you, stuart. stuart: i've got breaking news on car sales. ford motor company sales down 3.1% year-over-year. ford trucks posted double-digit games, the f series marking its 15th consecutive month of year-over-year increases. the lincoln navigator, sales up 65%. ford shares pretty much flat at $10 per share. chances are you've played that monopoly game at mcdonald's at some point or you know somebody who did. well, up next, we have the story of an insider accused of scamming $24 million from that game. that's an extraordinary story. plus, iranians asked if they want the mullahs to meet with president trump. most of them said, yes, we welcome a meeting. it's all about the economy and the near collapse of iran's economy and, of course, mr. trump's hard line. we'll deal with that at the top

of the hour. when my hot water heater failed it rocked our world. we called usaa. and they greeted me as they always do. sergeant baker, how are you? they took care of everything a to z. having insurance is something everyone needs, but having usaa- now that's a privilege. i couldn't catch my breath. it was the last song of the night. it felt like my heart was skipping beats. they said i had afib. what's afib? i knew that meant i was at a greater risk of stroke. i needed answers. my doctor and i chose xarelto® to help keep me protected from a stroke. once-daily xarelto®, a latest-generation blood thinner significantly lowers the risk of stroke in people with afib not caused by a heart valve problem. warfarin interferes with at least 6

of your body's natural blood-clotting factors. xarelto® is selective, targeting just one critical factor. for afib patients well managed on warfarin, there is limited information on how xarelto® compares in reducing the risk of stroke. don't stop taking xarelto® without talking to your doctor, as this may increase your risk of stroke. while taking, you may bruise more easily, or take longer for bleeding to stop. xarelto® can cause serious, and in rare cases, fatal bleeding. it may increase your risk of bleeding if you take certain medicines. get help right away for unexpected bleeding or unusual bruising. do not take xarelto® if you have an artificial heart valve or abnormal bleeding. before starting, tell your doctor about all planned medical or dental procedures and any kidney or liver problems. learn all you can to help protect yourself from a stroke. talk to your doctor about xarelto®. to help protect yourself from a stroke. ♪ ♪ our new, hot, fresh breakfast will get you the readiest. (buzzer sound) holiday inn express. be the readiest.

stuart: well, it's a lot of excitement this morning surrounding apple, it is going to hit a record high right at the opening bell. it's going to get close to $200 a share. we'll be on it for you. sprint, their profit is down.

they ramped up spending to attract more subscribers. the stock is up 2%. lower sales at molson coarse, it's down 3%. oh, will you look at chipotle? huge drop yesterday, down 9%. yeah, reports of illness at one ohio location. that restaurant has since been reopened. the stock premarket, no change after a 9% drop. how about facebook? it removed 32 fake accounts that supposedly were trying to meddle in the midterms. we'll have more on that later. the stock is not rebounding, 173 on facebook. a former georgia police officer accused of rigging the mcdonald's monopoly game for more than a decade. all right, how did he do it? ashley: this is a movie, it's fantastic. his name is jerome jacobson, private security officer, who oversaw part of mcdonald's game pieces. you tried to get complete sets, and they came with big prizes. if you could ever find the elusive boardwalk, that was a

million bucks. turn the out that mr. jacobson started handing out the winning game pieces to people and taking a slice of the action. he'd take $50,000 from somebody -- stuart: did he have questions? a. ashley: he had the request to all of this. as his network grew, he dealt with mob guys, strip club owners, even a family were involved in this, and it went on for a long time. he made a lot of money and eventually the fbi got a tip, and he was found out. why didn't we know about this story? it went to trial in the year 2001, but the next day after the trial began, 9/11 -- stuart: so that's what -- ashley: it's just been dug up now, but it's got to be a movie. elizabeth: he went to jail, he went directly to jail. [laughter] stuart: no get out of jail free card. [laughter] all right. stay tuned, everybody, because we're going to be opening that market in four and a half minutes' time. the dow jones industrials will be down ever so slightly,

concentrate on apple. could become a trillion dollar company this morning. we shall see. watch it with us, please. fact is, there are over ninety-six hundred roads named 'park' in the u.s. it's america's most popular street name. but no matter what park you live on, one of 10,000 local allstate agents knows yours. now that you know the truth, are you in good hands? 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, 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

stuart: all right. we have got 23 seconds to go, and this market opens this wednesday morning, and i tell you now all eyes are on apple.

why? because they had a stellar financial report late yesterday. it is going to open at a record high. the question that we're all posing is, will it reach $203 a share today? during this show? if it does, it's worth a trillion dollars! it's 9:30 eastern time. we're off, we're running. where are we going? we're up 42 points. now, that's interesting, up 31, 37, 34, we're up. okay, they're not all open yet, they have now. almost all open, and we're up. not much, but we're up 21 points. i suspect that apple is doing a lot of that hard work right there. 19 points higher. okay, that's a tractional gain percentage -- fractional gain percentage wise. how about the s&p, up .15%. the nasdaq should be doing very well, it's up nearly a half percentage point. there you have it, ladies and gentlemen. i need help.

here's elizabeth mcdonald -- ashley: every day. [laughter] stuart: i'm going to start with apple. where is it, by the way? be when the markets opened, 198. record high, there you go. 198 is the price. record high, 198, i repeat. too expensive for you to jump in and buy now? >> i think it is, just a question of how high it's going to go. i think it's popped 10, 15% higher, i think it's a fairly easy ride for it. stuart: you can't say definitively you would not buy it? >> actually, it'll take a little while to get there. i'm a little concerned about the market. this stock is going to be a trillion dollar company in, i think, within a couple of weeks if the market holds up. stuart: okay. i'll get back to that problems with the market overall in just one moment. around the block, susan, welcome to the show. are we going to hit $203.45 per share today during this show? >> today -- no. i would say, no.

you have three hours? stuart: what are you doing for the next three hours? >> well, look, you have a week to trade, right? strongest performance in 11 quarters, and the transition is alive and well moving from just a handset, hardware maker now to a services company with huge growth rates. stuart: $972 billion is the market cap right now at $197 a share. does it hit a trillion during this show, elizabeth? elizabeth: i wish it would, i don't think so. stuart: actually, during this show, three hours we've got, is it going to hit the trillion -- ashley: i'm so excited, no. [laughter] stuart: like pulling teeth with these people, i tell you. moving on -- >> moving on, okay. [laughter] stuart: tesla, they report after the bell today. you never liked tesla. >> no. i shorted it a bunch of times, i got -- made some money a couple times, it got beaten up once, i'm shorted again at 335. the earnings come out today.

i'm going to be watching for, first of all, the production numbers. what are they going to be actually. i'm watching for the margins and what their cash position is going to be. i think they're going to have to raise capital either by the end of this quarter or certainly the fourth quarter. i think the stock is 20% lower. [inaudible conversations] stuart: he can't restrain himself. if he goes after analysts or awkward -- ashley: you know he's going to. stuart: -- there's going to be cause to put an adult in the room. elizabeth: you're right, he has been out of hand lately with his tweets and comments. when you look at this company, it is the most shorted, most valuable car company. look at this. when you add in his ownership, 19%, and the guys betting against the stock, around 27%, that means half of shares of he's a la are either owned by -- tesla are east owned by elon musk or have bets against it. that's putting a floor underneath the stock. we have to watch that conference call, he put that big bar on the third quarter -- ashley: incredibly, it's up just over 18% this year, so, you

know, it just continues to defy the odds, you could argue. >> target's very important. we're going to hear -- we've already heard from ford this morning and also gm and the rest of the carmakers in terms of their sales. when it comes to cars right now, the auto sector is not strong, so how does tesla, i guess what kind of production numbers did they put in -- stuart: wait -- ashley: this big fight he's having with david einhorn who's a huge stock, he says are customers going to be happy with the quality of the car, rush through production to prove a point to short sellers. >> that's a good point. i say they're going the. stuart: a tent that they built next to the factory -- ashley: to prove a point, to make a point. elizabeth: it's got just 8% of ford's sales, and it's more valuable than ford. think about that. wow. stuart: what's the future and what's the pastsome the answer to your question. let's get to the trade issue.

the white house reportedly may be considering higher tariffs. not 10% tariffs on chinese imports, but 25%. this is what makes you nervous? >> this is what's weighing on the market. stuart: let me just say something here. when that headline came across this morn, the algorithms, the computers read the headline. it's negative and they say sell it. that's what happens. >> same as yesterday morning when positive news came out, the market newspaper 100 points. it was down -- flew up 100 points. all of a sudden there's a tweet or some rumor going on that things aren't going to be as bad, have some negotiation settlement, and then, bang, the market's up. wouldn't surprise me if we were down today because of it. stuart: really? elizabeth: it is wild because the tariffs would hit u.s. companies, the tech companies' supply chain, right? that's in the trade surplus, so it's astonish that the tech -- >> well, apple mentioned this last night, tim cook specifically was asked over and over again about trade tariffs especially with china since they're in a unique position of

building in china, selling in america. he says cooler heads will prevail in his view, he's looking at data centers and possibly purchases that might impact them in the future if we do go ahead with these higher tariffs on chinese goods of $200 billion. stuart: that was kind of settling things down. >> unaffected so far by three rounds of tariffs. stuart: that's why the stock is at 198, valued at $972 billion as we speak. all right, to the economy. strong number for private sector job creation. came in this morning. 219,000 private sector jobs reported and created in july. that presumably means a strong jobs report, the big official number coming out on friday morning. if we do get a strong number, strong economy, what does that do to the market? >> well, i think it's going to make it a little nervous because the federal reserve, may be more pressure to raise rates. i think they penciled in two more times this year, and i think they'll probably be positive they will do this if the numbers are strong.

we went from 3.8% unemployment to 4% in june because there was more people coming back into the workplace. wages, we're at 2.8% annual as of june, that's the highest since 2000. stuart: did you see across the bottom of the screen a moment ago the yield on the ten-year treasury as of now, 3.01%. doesn't seem to be upsetting the market. >> no, that's good. stuart: it did a but months ago, but not now. ashley: we did have analysts saying they believe the jobs report is going to be weak because companies are putting on hold expansion plans and hiring because of the trade position. >> and the fed decision later on today expected to do nothing. stuart: there you go. quick check of the big board, we're up 8 points. now, apple is a dow stock, and apple is up very significantly. it's actually adding over 50 points to the dow industrials, but other stocks are -- ashley: all the heavy lifting. stuart: yeah. they're doing the heavy lifting, and now we're down a point,

25,400. look at this from kroger. they've got a fight with seeses saw over fees -- visa over fees. they're not going to accept visa cards at stores. >> what? stuart: very aggressive in all aspects of the business, down about a quarter percentage point. facebook, they're going to remove 32 fake accounts that they say were trying to meddle in the midterms. more on that later. no significant rebound for facebook at the moment, 174. chipotle, oh,erdear, we've got o deal with that. the stock was down 9% yesterday because of illness reported at one ohio location which has since been reopened. down 9% yesterday, down another $2 today at 431. when we had the production meeting this morning, half the team members said they would never eat in chipotle again -- ashley: you know what? cowards. [laughter] stuart: whoa. they're our people. ashley: i know, god bless them.

stuart: would you eat at chipotle? >> yes. >> yes. >> absolutely not. stuart: no? what are you afraid ofsome. >> well, first of all, 2015 scared me off. i haven't eaten since 2015, and aye been proven right, by the way. stuart: you live in fear. i wouldn't give it a second thought. i'd eat there tomorrow morning. >> i eat there. i love it. stuart: there you go. ashley: apparently our executive producer says there's lots of other options. >> exactly. stuart: what's his name again? justin -- [laughter] quiet on the set. look at cvs. now, they report earnings tomorrow, and their chief, ceo les moonves is going to be on the conference call. he has to address the allegations against him. i don't see any problem with that. elizabeth: well, you know, l.a. prosecutors did decline to pursue sex abuse charges against

moonves, so is he going to speak to that? that's going to be probably one of the most listened-to conference calls. stuart: i think so. can he stay in the top job whilst they're conducting the independent investigation? >> that's the question, should he step aside -- stuart: he's on the conference call. >> i like it. i'm pursuing, i think it's going to be in play. one way or the other, if moonves gets in, he's going to want to sell it. he's in, but redstone's trying to push him out, and this may have something to do with shari redstone. an expose all of a sudden coming to the front pages, so the timing sod. he made $69 billion last year, he's got a contract that goes til june of 2021, and he stands to make $300 million more. he doesn't want to go anymore. if he sells it, he'll have -- stuart: last word, the voice of reason, susan lee. >> he does have a severance package of $180 million if he is forced to walk away, but indications are -- and i'll be covering cbs tomorrow, i'll let

you know how interesting it is tomorrow, but indications are he's not stepping away during this investigation. they haven't even picked a law firm yet in terms of who's going to look into and do -- stuart: which means he's there in the top job for some foreseeable time. >> i think so. stuart: okay, so, you know, it's that time, 9:41 eastern. susan, thanks for joining us. ladies and gentlemen, check that big board. we're up 31 points, 14 points, sorry, 25,400. president trump should follow ronald reagan's lead. reagan pushed to abolish nukes, so trump should push to abolish tariffs. so says art laffer who will join us in our 11:00 hour this morning. next, a critic of mark zuckerberg who says he's just sweeping facebook's problems under the rug because he doesn't really want to deal with them. he will make his case shortly. ♪ ♪

stuart: tests a very small gain, the dos up 11 points, a lot more than that if some of the other dow stocks were up as well. apple, by the way s a huge gainer, and it is a dow stock but not enough to make a significant impact on the upside movement at this moment. how about nike? we are told no more waiting for a salesperson at a nike store, so come in, adam, and tell us what they're doing. >> reporter: it involves a smartphone, and if you have the nike app -- which 140 million people do globally -- you can set up an appointment to buy the shoes you want. it's really simple. this situation, all you've got to do is find the shoe you want, send a message on the app, you go to the store, and it's ready. and you'll -- the nike customer service people are calls athletes, they'll bring the shoe to you, out you go. you tell them i want this sneaker size, boom, you're done.

you can pay for it on the app, you get unlocked, maybe 10% off. but here's the deal, they're only doing in this portland, oregon, and three stores in l.a. their going to roll it out -- they're going to roll it out here in new york. stuart: you're a size 12? >> reporter: yes. stuart: i call that bigfoot. [laughter] all right, adam, we'll see you shortly. ashley: he should with in the pacific northwest. stuart: where's the hair? [laughter] executives from three big companies are going to testify before the senate intelligence committee in december. ashley: facebook, google, they're going to talk about what they are doing to address foreign efforts to influence u.s. elections. so it's a chance for lawmakers to grandstand and a chance for these executives to explain exactly what steps they're taking. stuart: political theater. meanwhile, facebook says they've removed 32 fake accounts that were connected to meddling with the midterm elections. ian meyers is here, and he is with facebook's rival news pix.

okay. so you're a much smaller rival than facebook, let's get that right out there. >> we see a lot of opportunity because of some of the mistakes they're making. [laughter] stuart: but you can't resist the opportunity to tell us what's zuckerberg doing wrong here. >> if you want to see what he's doing wrong, look no further than his statements on facebook which basically said preemptively, this is something we can't really solve. now, if i'm an employee of facebook or a lawmaker, anybody watching this situation, it tells me it's not really a priority for him. he'd rather be working on something else, doing something else, kind of like telling a kid to clean the room and they shove their stuff underneath the bed. stuart: 32 accounts, they've got over two billion, i think, regular monthly users. doesn't seem like many, these 32 accounts. >> yeah. well, the number isn't what's important, it's the number of people those accounts influence. and this is one of facebook's biggest issues. single people, single groups, single state actors or nonstate actors can influence 290,000,

300,000, 500,000 people all from one page. and it's hard for facebook to pick up on this because it's such a disparate platform. stuart: okay. you run news pix. >> yes. stuart: okay, which is a rival to facebook. >> right. stuart: what do you do that, you know, that facebook cannot do and does not do and makes you better? >> interestingly, one of the problems that is plaguing facebook is also plaguing twitter and linkedin which is that everybody has their own front page. so there's billions of front pages floating around. you cannot prison those front pages -- police those front pagings. big companies have one front page that editors look at and insure that it's using integrity, high quality and really good stories that aren't fake news that aren't things that can spread division. what we do is a similar thing on the digital front. we have one front page, we have an editorial team that's checking, insuring that the content is qualified, legitimate and it's not a distributed front page network that's impossible

to police. stuart: so what comes at me is an item that's been checked. >> right. stuart: that front page -- >> right. 15 stories -- stuart: everybody gets the same -- >> every single user gets the same front page. you also have your own section, but the influence is the front page. we are able to manage that editorially to insure that it's only qualified news. stuart: do you take news from, like, fox and from abc and from "the wall street journal" -- >> yeah. we're a platform, so we have to take it from all sides, fox, new york time, "wall street journal," also the digital publications, politico, axios -- stuart: but it's all been checked, every one of it. no fake news, no meddling with elections, nothing like that. >> right. stuart: it's news pix, is that what -- and this is an app that goes on here? >> it's an app, you can get it in the app store, google, itunes, a lot of your people are already on there. we look forward to having you as well. you've got your phone right there, so maybe -- stuart: if i gave it to you,

would you put it on for me? >> i absolutely would. stuart: go ahead. do you have to know passwords? >> i think we can figure it out. are you on facebook? because we could definitely get that information. stuart: no. walk away to the corner, let me deal with the market. [laughter] check the market, we're up 10 points, ladies and gentlemen. the big deal, of course, is apple which the stock is quoted the bottom right-hand corner of your screen, currently 198. up $7. next, a judge stops instructions for 3-d printed guns from being posted online. is this a second amendment issue or a public security issue? judge napolitano will pass his judgment after this. wn 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! he's gonna get mine but i'm gonna get a new one! when it's time for your old chevy truck to become their new chevy truck,

there's truck month. get 10 or 14 percent below msrp on 2018 silverado pickups when you finance with gm financial. plus, during truck month make no monthly payments for 90 days. find new roads at your local chevy dealer.

this is moving day with the best in-home wifi experience and millions of wifi hotspots to help you stay connected. and this is moving day with reliable service appointments in a two-hour window so you're up and running in no time. show me decorating shows. this is staying connected with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today.

stuart: whoa, listen to this. we've got an update on the space force. is the pentagon moving ahead? elizabeth: yeah are. according to defense one.com got linked to it a 14-page explainer of what the white house and the pentagon wants to do. a new space command legislative plans to launch it to congress, give it to congress by next year. there's no funding for this in the defense spending bill, and congress would have to approve it. but they're talking about the air force being rehabbed into a space command. not only overseeing satellites,

but also having space operators in all military branches, and it would be in the european and indo-pacific theaters. stuart: what's wrong with that? ashley: nothing. [laughter] stuart: anything else? quiet on the set. [laughter] a federal judge in seattle blocks the release of software that allows people to print guns, 3-d print guns. napolitano is here. okay, here's my point of view. a gun is a lethal weapon, does serious damage. the federal government has an obligation to regulate that lethal weapon. what's wrong with stopping the printing of stuff by people who are totally unlicensed and unvetted? >> okay, should we take books out of libraries that tell you how to make these, because a they're there, books out of libraries that make bombs? the lie blares are owned -- libraries are owned by the government, the same government that is trying to --

stuart: so it's freedom of speech. >> yes. it's a first amendment issue, and it's a very serious one because it's not the punishment of speech already spoken, it's restraining before it's spoken. you can only find very, very, very few examples in american history where the courts have permitted prior restraint, shalt not talk. not we're going to punish you for the consequences of what you say, we're going to prevent you from speaking. stuart: wait a minute. the manufacture of a gun whether in a factory or your own desktop printer is the manufacture of a gun what's the freedom of speech about the manufacturing of a gun? >> you can walk -- first of all, it's the expression of thought, in this case truthful thought, and the counts consider that speech. you could walk three blocks from here to the new york public library on sixth avenue and 42nd street and get a book that shows everything that the court won't let them put on the internet. what is the difference? are they going to start banning

or burning books next? stuart: heaven forbid. fahrenheit 451, as we all recall. >> there you go. stuart: so do you have any problem with regulating 3-d printing of guns? no? >> i have a problem with the courts interfering with the freedom of speech. stuart: no, no, come on -- >> this is technology. it's going to come out. somebody's discovered a way to do it, it's out there. stuart: every single one of our viewers knows this is the manufacturing of a gun. >> yes. stuart: therefore, it should be subject to some regulation because a gun is a lethal weapon. i'm all in favor of the second amendment, don't get me wrong here. i'm not arguing against it. >> the supreme court on the second amendment says you can have a gun in your home, so if this were to be manufactured and used in the home for self-defense, i think it's crazy to use this thing because i've seen videos where they explode in your hand because they weren't made properly. stuart: ah, regulated on a safety issue. there you go, we got it. >> want to take the chance of blowing your own hand off, it's your chance and your hand.

stuart: i wish we had time to ask you if the space force is constitutional, but we don't. >> all right. stuart: my take and an editorial coming up. stay right there, please. very important stuff, iran and china are in it. ♪ ♪ . t .

stuart: two examples of the president's style. i think it is a successful style. with the iranians, he imposes sanctions which would further ruin their economy. then he suggests a meeting with the mullahs. well, a hard-line yes, but hey, let's talk. that is what he is doing, a hard-line, let's talk. it is classic trump. so far i think it is successful. "the new york times" has a reporter in iran. he has been talking to ordinary iranians. guess what? they don't care much for the mullahs. a lot of them would welcome talks with trump. who would have thought? iran's leaders are between a rock, trump, and a hard place,

iranian people and trump put them there. next example, china. this morning mr. trump is piling on the pressure, threatening to ratchet up tariffs from 10 to 25%. now that is a hard-line. the president is applying it just as china's manufacturing juggernaut slows down. they have more to lose than us. they need access to america's gigantic market. mr. trump knows it and increases pressure. with both iran and with china, the president's ace in the hole is america's economy. stronger than it has been in years with 4% growth he is playing a strong hand and with america now the world's largest oil producer he is playing a very strong hand especially with iran. without oil, without oil exports, iran's economy totally collapses and the mullahs must surely know it. now yes, in public donald trump is brash, frequently outrageous but he has got a booming economy at his back and he is using it for leverage. that's his style.

his successful style. the second hour of "varney & company" is about to begin. ♪ stuart: we'll get back to my editorial in a moment. first check the markets. we have breaking news on the economy. the state of manufacturing, ash, what is it? ashley: 58.1. that is good. 22nd straight month in a row manufacturing activity includes, basically, you know, tells us how the economy is performing, been in the expansion mode 22 months in a row. anything above 50 is solid. 58.1 is a good reading. stuart: how long has president trump been in office. 2 it months? 18. ashley: so he hasn't slowed it down. stuart: back to the market. we're watching two very important stocks and their

performance today. first, apple is up bigly as one might say. they released blowout profits late yesterday. it is closing in on a trillion dollar valuation. if it gets to 203, it is worth a trillion bucks. how about tesla? it reports numbers after the bell today. a lot of people worry about elon musk's demeanor during the conference call that could make-or-break that stock in the near term. two stocks, apple, tesla, look at them. back to my editorial on president trump's style, joining us now fox news contributor liz peek. liz, i you heard me say it trump's hard-line is a good hard-line and it is winning. what say you. >> the old adage it is economy stupid also just does not apply to the united states it applies to iran. currency plunging. al pell costs four times as much

to buy an iphone than it did a year ago in iran. the people are suffering. unemployment is 12 1/2%. rouhani is asked to talk to parliament about why the economy is in such bad shape. they're arresting currency dealers because everyone is trying to get money out of the iran, the real is a record low, the currency there. these sanctions which are about to start are really hobbling this economy. the president of iran is now dealing with what to do about trump's unprecedented and unexpected offer to talk. i think you're going to see more demonstrations than you have already seen. stuart: front page of "new york times." struggling iranians see lifeline in trump's offer to talk. they want to talk to him. >> they're struggling and people in iran are saying wait a minute. all our money is going to hezbollah and terror organizations. why don't we focus, and our

leaders focus on our economy, our wages, et cetera? because the economy is in freefall. stuart: i think he has got them on the run. they're really in a very difficult position. >> no question about it. they just bounced the head of the central bank. they're doing things to make it better but the sanctions, all the european and american companies are leaving iran. what was supposed to happen after the jcpoa, the iran nuke deal took place has not happened. they have not beginned -- ginned up the economy. that is why you have demonstrations almost weekly. stuart: statestay there please. more from you in a moment. i want to get back to the market. the trade initially weighed on the market earlier today. the trade issue being president trump's threat to raise tariffs imposing 25% tariffs on chinese good coming here, not 10 percent, 25%. that is pressure.

that is a hard-line. jack hough, baron's senior editor is here. you have a grim look. am i right the computers read the headlines, see something negative on trade sell, that is what happened, isn't it? >> there is algorithmic trading out there but i think investors are genuinely nervous about the tariffs. stuart: they're not nervous long. you get little blips down but boom it goes back up again. >> consider the backdrop. the rate of growth in america is more than double what it is across the rest of the world. that is before you consider effects of tax cuts. when you consider tax cuts, the rate of growth here is four times than the rest of the developed world and that is the dominant factor that wants to put stocks higher. i did a search for tariff talk on second-quarter earnings calls. what i found lots of mention of tariffs. most company chiefs are saying effect so far is minimal. or we don't have effect at all. we're watching it carefully.

we're cautious about the second half of the year. we'll see what happens. that is where things stand now. it is not a big dollar cost. it is overshadowed what is going on with earnings. stuart: liz, back to you for a second. do you think president trump's hard-line is a winning line with china? >> i think it totally is and you can cite a lot of the same kind of data points we talked about with iran. xi xinping is under pressure for the first time in a long time. there was a big piece about it in the ft. he is being questioned on his supremacy. whether he should be leading not only politics in china but the economy. look, china needs the united states as you said in your editorial. we are the biggest consumer market in the world. everyone talks about the growth of china but the u.s. is still it in terms of a consumer market. if we begin to really seriously damage china's exports it is obviously not good for the american economy. it is worse for their economy, no question about it. stuart: we have some leverage.

>> yes, we do. stuart: show me facebook. i think it is still around the 174 level. i ask this, because jack hough, sitting next to me here. he works for "barron's" magazine, i think he is the editor. your paper is saying, it is going to bounce. it's a bargain at 174. >> we liked it in the spring at 160s, when the stink first unfolded by cambridge analytics. the stock rode up to somewhere around 200 bucks because the money this company is making -- show me another stock this cheap that will grow revenues 25% a year. there is not one out there. it is stuffed with cash. barely more expensive than the market. they're making tradeoffs that will maybe trim their growth a little bit, trim their margins a little bit to improve the quality. i still think it is cheap relative to the growth. stuart: so it's a bargain, the word bargain is a bit extreme

but it's a buy at 174? >> i called facebook -- ashley: reasonable price. >> i called facebook the new tobacco stock. everyone has a reason to hate it but -- where is this advertising money going to go? people need to advertise. we know what the size of advertising pie is. i would love to tell you that print journalism is the next hot destination for all those ad dollars but something tells me facebook will get it. stuart: let's not forget they're bringing $2 billion a beak -- week in advertising revenue. >> even more than "barron's." stuart: incredible. kroger, another shot at amazon and walmart. they launched their own delivery service. they're very aggressive kroger. >> i like kroger a lot. it is the biggest, strongest pure play grocery company. now there is going to be damage across grocery right now but it's a highly fragmented industry. when one of your grocery stores closes in your town where are

you likely to go? log on to amazon right away to start ordering groceries? go to walmart? likely to choose another grocery store kroger will pick up business from other players. this grocery delivery is interesting but bigger development is click and collect service. that is something kroger and walmart have done very well. stuart: what is that, click and collect? >> you buy groceries from home and you take car over there and they put your bags in the store. when it comes to lettuce, they feel they want control. they want to take a look at stuff going in. click and collect right now is the happy middle space. it gets better customer satisfaction scores than delivery. stuart: you like crowinger? >> i do. stuart: you like kroger the lad does. thank you very much indeed. liz, thank you very much indeed. >> thank you. stuart: starting today southwest

airlines is ditching peanuts for good. the airline has been giving them to passengers for decades. it is increasingly concerned about allergies. no more peanuts, southwest. tsa is under file for surveillance program that tracks u.s. citizens not under a terror watch list or investigation. i will talk to a tsa official. i want to know if they got any leads from that program. we're watching apple to see if its a trillion dollar valuation today. next an early investor in big tech companies like spotify and uber, does he have any doubt apple will hit a trillion bucks, hopefully during this program's three hours. we'll ask him of course. we'll be back. ♪ (indistinguishable muttering) that was awful. why are you so good at this? had a coach in high school. really helped me up my game. i had a coach. math.

ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum- just to help you improve your skills. boom! mad skills. education to take your trading to the next level. only with td ameritrade.

stuart: yes, we're on apple watch. we're looking to see if it hit

as trillion dollar valuation. at the moment it is $22 billion away. if it hits 203 it will hit a trillion dollars. come in mitchell green. you're an early investor in uber and spotify i believe? >> early investors in uber and spotify. later investors in alibaba. stuart: but you know tech from the inside. tell me about apple, will it hit a trillion dollar valuation on this show today. >> it might. we'll see. stuart: i don't want that as an answer. >> yes it will at some point. stuart: you have no doubt it will hit a trillion dollars? >> i have no doubt. stuart: will it continue to be the juggernaut to lead everybody higher? >> i believe the answer is yes. i believe what you're seeing, apple is doing so well because services, music streaming and all these different services are becoming a meaningful part of the service. this quarter it was 20% of the business, it used to be much, much smaller growing fast, nobody cared about it.

it also a subscription type business. nobody cared about it. look at iphones, almost becoming a natural. my phone is a few years old, time to buy a new phone. you entertain justly go by the new phone. it is a hardware company able to transition into almost recurring revenue software business. stuart: that is the ecosystem. services sector, you feed a little money all the time. they pick up 99-cents from me for heaven's sake which is hard to do. liz: did we just hear that? 99 cents a month is hard to do? forgive me. hard to give up. stuart: it was a joke. liz: very funny. stuart: they squeeze money about anybody with any kind of apple device of any kind. that's what they do. now then, for a couple years the big story we've been covering is a big tech dominates the stock market, dominates the economy. is there any stopping it from here on out? >> i think these companies -- it's funny, is facebook a tech company? is amazon the retail business a tech company?

so if you talk to traditional value investors they are like go look every 10 years at historical market caps. i look at 1980. none of those top 10 tech companies are around anymore. would i argue they were basic hardware businesses. facebook is media company, a distribution company. a lot of accounts they don't have to pay for. amazon is a retailer. it is funny, amazon may eventually be disrupted but something we can't comprehend. think about sears roebuck, sears. it was a business. it was mail-order. you had lots of different, you didn't have to go to the local store. you had lots of different options. amazon was sears online. could in 50 years be disrupted? problem hi will. nobody can tell you what it is going to be but i think over the next five to 10, to 20 years these companies will get exponentially larger. would you rather own, do you believe in the decade people will buy more on amazon or they're going to buy at target?

stuart: i take your point -- >> do you think they're inexpensive. companies like facebook basically trade at market, s&p, 15, 16 times earnings. these things aren't crazy expensive. amazon, people are like, the company never made a dollar of profit. it generates a lot of profits. it is still expensive. companies like google trade 20 times earnings. these are companies that don't trade like the the internet bubble at 200 times revenue. stuart: okay. you're an early investor in big-name technology companies. >> better to be lucky. stuart: well-done. what is the next big thing? can you put your finger on it without giving away? >> i have absolutely no clue. i think software is going to continue -- this sounds so cliche, software will continue to eat like different aspects of vertical, we're invested in this company called toast. restaurant point of sale systems software. growing like a rocket ship.

trowe invested billion five valuation. invested year-and-a-half. it is replacing micros, a multibillion-dollar business inside oracle. here is the value problem. you want to go into your restaurant. micros says we'll sell you $30,000 piece of equipment, put it in your back room. if you want to get bunch of separate reports good luck is basically the answer. you can invest 30 grand per location, have the old antiquated system looks like 1995. invest, bybuy the new system, called toast, we charge you 200 bucks a month. companies like that. you will continue to see more businesses built off mobile device. amazon and facebook obviously existed in a browser world on a desktop pc. businesses like uber, spotify did do invest in desktop but businesses like uber could not have actually existed without the smartphone. stuart: you have obviously made a lot of money. do you enjoy piling it up?

is that what you enjoy? >> i enjoy paying taxes. living in california, i can thank donald trump for higher taxes. i live in california. i'm as stupid as any idiot that lives in new york. stuart: nevada -- >> a happy wife is more important. stuart: oh, okay. good point. you enjoy piling it up? >> i like my job of the it's fun stuart: come on, we love success on this program. nothing wrong with loving piling it up. liquid freedom. >> i love donald trump put it that way. stuart: pulling teeth, lad. what is your name again? mitchell green. you can come back any day you like. >> appreciate it. stuart: check this out. it is a candy company. it is called vat, vat 19. i don't know why we got this on the air. we're advertising the company, aren't we? okay, look, they made a huge gummy bear pizza, three feet

long, two feet wide, selling slices 150 bucks a piece. liz: yummy. stuart: get that name. vat 19. ashley: value-added tax 19. stuart: a free commercial. google wants to launch in china. a censors version of its website to get in. that is coming up. google up 10 bucks. ♪ 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. be retail. ss. 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. stuart: the stock is up nicely. 3%, why? well humana sold more medicare advantage health care plans to

the elderly and disabled, better yet came out with a rosy forecast. up it goes. nine bucks higher, 3%. what you see on the screens now is market value of apple, only what, about $19 billion shy of a trillion dollars valuation. if it gets to $203, it will be worth a trillion. i hope it gets there on this show, we have a special balloon extravaganza. ashley: balloon budget. stuart: we blew the budget. california, the wildfires are raging on. the big one is the carr fire, c-a-r-r. hillary vaughn is in redding. do investigators know what is causing the carr fire? reporter: there are 15 different fires. one of the causes of ferguson fire, a breakdown. engine failure, sparks set off a major fire that shuttered

yosemite park during vacation hours. this home right here, essentially a shell of what it used to be. burnt from the inside out. you can see the devastation. these fires separately are burning through a lot of cash that calfire has set aside for them to deal with these fires. right now, the ferguson fire cost them $64 million in just fighting the fires, not calculating any of the damages from the, some structures that have been burned. the carr fire costing them 29.9 stuart. budget $119 million. they have only 140 million set aside for the entire year which we're one month into. stuart: hillary, thank you very much indeed. next case, money and tesla. they issue financial report late this afternoon. people will be interested in what that man elon musk, says to the analysts afterwards. that could be a make-or-break

moment for elon musk. don't sound like you're in despair, elon. that won't work. we'll have more on the story in just a moment.

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

♪ stuart: not proper title of this song. i always think of it as, baby you're a rich man. is that right? a good song for this particular program. should be our theme song. beatles. we play every single day at 10:30 eastern time. we just found out how much oil we've got in storage and how much we've drawn down.

liz: up 3.8 million. they were looking for a drawdown of 3.9 million. i don't know how the numbers are all every the map. 3.8 build in inventory. stuart: $67 a barrel as we speak is the price. got it. check the big board. we've gone up quite a few points suddenly. 25,471. how about the big techses. all of them on the upside. facebook not exactly a bounce. apple at 199, almost $200 a share, look at that. alphabet is up 13 bucks, microsoft at 106 per share. tesla, they report their financial position after the closing bell after 4:00 p.m. eastern time. a lot of people are waiting to hear what elon musk says on the call afterwards. gary gastelu, automotive editor. he is in a difficult position. i don't know what the financial results are going to be, people

that watch musk, will he lose it? he lost it before. >> the share price lost over 5% the next day when that happened. based on recent twitter activities since the pito comment. he hasn't put a filter. he is still elon musk. he will say exactly what he wants to say on the call. hopefully a little less rudely than last time. if he doesn't call someone bonehead or boring that might be good enough to make people feel good about the call. stuart: if he goes overboard, a lot of people will say bring in an adult, give him a real filter. put him in the corner office, no power to mess up the company. stock goes down, two strikes, out or pressured to make changes. we'll see what happens. as far as i'm concerned, i want to hear that they built 20,000 model 3s last month, maintained a thousand a week add. also interesting what the service calls are going to be like. people are concerned the cars

are getting pushed out. they're not built that well. need to get fixed day they were delivered. that will be interesting as well. stuart: building 5000 a week at model 3s, he has a good report. should be okay. what intrigues me about the model 3, it was always sold as 35,000-dollar man of the people electric car. let everyone have a chance to earn one of these cars. you can't get it at 35 million bucks. it is minimum of 50,000. it is not an electric car for every man, is it it. >> not until next year. 35,000-dollars one maybe next year. that keeps getting pushed back. stuart: hasn't he said, he can't make money, he will lose a ton of money if he sells any car for 35,000 bucks? it will never come. >> it eventually will to make it at scale, at rate they're building cars they can't make money. sell the more expensive ones. if you sell, 20, 30, 40, thousand $50,000 cars a month as opposed to 30,000 a month that

is a lot of cars coming in. last time six months. if you put in order pour 25,000-dollar one, looks like sometime early next year. stuart: regardless of the price, how is the model 3 stacking up when people test driven it? what dot analysts, the car -- ashley: experts. stuart: what do they say about the model 3? >> getting great reviews. we don't have a sense how good build quality, how reliable they are, as far as the performance, driving experience, largely been very positive. stuart: regardless of money, would gary gastelu buy a tesla? >> not a first-year one based on what we've seen with the construction. i just, maybe lease one. even then, looking at a tweet today, somebody said they got in car accident, the car has been in the shop for couple months. still a couple months before the parts are coming in. musk are speeding that of, day of accident repair. we'll see if that happens. meantime sit on this don't buy

first-year production. i think it sticks in the case of test lakes 20 seconds, last question, if you were a billionaire, which car would you buy. >> 250,000-dollar tesla not being made. going 250 miles an hour. stuart: of all cars on the road you could buy right now, unlimited money. >> ford mustang. liz: really. >> i would. save the rest of the money. stuart: honest. we like that. thought it might have been a lamborghini. >> i like that. stuart: all right, gary, you're a good man. thanks so much for joining us. the economy, let's look at that headline in the "wall street journal." i like this, u.s. workers get biggest pay increase in nearly a decade. he had win fuelner is back with us -- edwin fuelner. founder of the heritage foundation. welcome back, sir. >> thank you, stuart. stuart: good to have you back. given the headline in the journal, biggest pay increase in

nearly a decade who should get the credit for that? >> stuart, it goes to the incredible vitality of the u.s. private sector combined with what washington has been doing and washington's been doing some positive things. deregulation, the job cuts, job adds and tax cut bill of last year. they have all come together. we have to the economic growth where it should be at 4%. you have unemployment way down. my colleagues at heritage have just pointed out that every single congressional district is getting an average tax reduction, average increase in take-home pay. nancy pelosi, who talks about it being crumbs, her district is the 12th highest district in terms of returns they will get in lower taxes and higher take-home. it is fantastic. it's a great economy. it is really going in the right direction. stuart: as soon as that report was issued last week, whatever it was, the growth rate was

4.1%, as soon as that number came out, the left was saying, it is not sustainable. you can't keep it up. what says ed fuelner? >> ed fuelner says indeed you can. when you unleash the incredible growth and vitality of the american private sector, boy, it can really take off, it can prove to the whole world, we are still the leader in terms of production, in terms of services, in terms of a growing and vital economy. we're the land of the entrepreneur. this is where it all starts. this is where it all starts and really caps out and so exciting to see it really happening. to those friends of mine who say trump is doing this wrong, that wrong. i say close your eyes and think for a minute where we would be if hillary clinton were in the oval office. that is really whichs them back to reality. stuart: would you say that to the koch brothers, who are in a big fight with president trump primarily over trade? would you tell them to close your eyes and think it was

hillary as the president? what would you say to them? >> i would say exactly that to charles and david koch. and i remind both side, both donald trump and the koch brotherses that hey, success in politics is adding and multiplying, not subtracting and dividing. find those things we agree on and push forward on it. look, i was with charles and david koch 20 years ago when we said china ought to come into the wto because they will abide by the rules. i will admit it. i was wrong. donald trump is trying to do something about that. so let's all get together and find out those many areas where we agree and work together on it. stuart: okay. ed fuelner, always a pleasure to have you back on the show. great to see you again sir. hope to see you again soon. >> thank you. stuart: left-hand side of your screen, see that? it is at 199.96. it did ever so briefly hit $200 a share. you can bet your life a lot of

programs saying as soon as you hit 200 you sell it. that is why it comes down a little bit. if it goes to 203 it will be worth a trillion dollars. google testing out version of search engine in china. what is that all about? liz: they want to get to nearly a billion internet users in china but it would be censored. stuart: so they are accepting chinese censorship of their -- >> they're being accused of censoring conservative voices here. we're not so sure but that is the storyline. but it's a censored of version of the search engine. no bbc news, no wikipedia, no discussion of religion, china, taiwan, tianamen square. they're serious about doing it. stuart: what do you think of the ethics of this? a major american technology company going to china and accepting censorship of the chinese authorities? liz: that is just as free market capitalist, if you listen to them, they would say it is about

the bottom line. they should do it to break into the market. here is what they did. this is smart, took a stake in jd.com, china's version of amazon. how google is getting in the door in china. they bought one of big retail companies. stuart: the market is amoral about this. >> liz: amoral, that is correct. stuart: amoral. ashley: more potential users. stuart: absolutely. ashley: doesn't sit well, you give in to the fact that they allow them to censor. stuart: google workers don't want google to work on artificial intelligence, our military. you say no to our military but yes to chinese censorship. ashley: yes. stuart: that is a story there. president trump will meet with inner-city pastors at the white house today. they're talking prison reform. i want to know if this is all about getting non-violent drug offenders out of prison? that would be very interesting. the president is doubling down on his calls to shut down

the government, to get funding for the wall. texas on the front lines of the debate. the texas lieutenant governor will join us shortly. i will ask him if he supports shutting down the federal government to get the wall built. ♪ jardiance asked- and now you know. jardiance is the only type 2 diabetes pill proven to both reduce the risk of cardiovascular death for adults who have type 2 diabetes and heart disease... ...and lower a1c, with diet and exercise. jardiance can cause serious side effects including dehydration. this may cause you to feel dizzy, faint, or lightheaded, or weak upon standing. ketoacidosis is a serious side effect that may be fatal. symptoms include nausea, vomiting, stomach pain, tiredness, and trouble breathing. stop taking jardiance and call your doctor right away if you have symptoms of ketoacidosis or an allergic reaction. symptoms of an allergic reaction include rash, swelling, and difficulty breathing or swallowing.

do not take jardiance if you are on dialysis or have severe kidney problems. other side effects are sudden kidney problems, genital yeast infections, increased bad cholesterol, and urinary tract infections, which may be serious. taking jardiance with a sulfonylurea or insulin may cause low blood sugar. tell your doctor about all the medicines you take and if you have any medical conditions. isn't it time to rethink your type 2 diabetes medication? ask your doctor about jardiance- and get to the heart of what matters.

♪ ashley: in the last hour builder michael beliman, millenials should reconsider opinions of construction industry because it is much better than they probably think. >> i think it is the best kept secret in our country. working in construction industry, you've had so many stories of people that have been on your show. one was an apprentice, went through the four-year apprentice ship training, year after graduated owns his own electric company. president highlighted one of the graduates of the technical institute they were at yesterday, he is making six figures. it's a big secret because all we're doing in schools is saying you got to go to college, you got to go to college. ♪

at crowne plaza, we know business travel isn't just business. there's this. a bit of this. why not? your hotel should make it easy to do all the things you do. which is what we do. crowne plaza. we're all business, mostly. stuart: the president doubling down on his threat to shut down the government over funding for the wall. listen to what he said at the rally in florida last night. roll tape. >> we want maximum border security and respect for our heroes, i.c.e., border patrol, and law enforcement. we're going to have tremendous border security that will include the wall. that will include the wall.

stuart: he will shut down the government if he doesn't get funding for the wall. joining us the lieutenant governor of texas, dan the patrick. as a lieutenant governor of a border state, the great state of texas, how do you feel about shutting down the federal government for getting funding for the wall? >> let's look at what trump accomplished, stuart. he erased isis from syria. the stock market is up 40%. unhe will employment is low and the the economy is doing well. one area he is not been able to achieve, not his fault, democrats fault and a few republicans, the democrats and republicans who resist full funding for border wall which we need many areas across the border do so at their own peril. this is the number one issue, stuart with people in this country. they understand and recognize that we still have hundreds of thousands of people crossing the border, as i shared with you, when i was with you in new york in june, crossing the border we

apprehend, another million or more get through we don't apprehend. we have 25 to 30 million people here illegally. that is the real number. not 11 million, you keep hearing. we have a lot of criminals and drugs coming across the border. the president is right, if they underestimate him, they will find out it will again at their own peril. stuart: would you repeat that? i don't think many of viewers may not have seen you on the show in june. they don't know that number. 30 to 35 million illegal immigrants in the united states as of right now. repeat it? >> i base it on this, stuart. in 2004, the chamber of commerce, the president of the chamber of commerce talked about having 11 million people here illegally. it was repeated again in 2018 and 2009. and today they still use the same number. we know for the last five years we apprehended an average of 400,000 people crossing the

border every year. we may get one out of four or out of five. we can't come up exactly because you don't know number you don't catch. that means a million to million 1/2 come here every year since 2004 when they said it was 11 million. that gets you to 25 to 35 million people here illegally. people who see overcrowded schools, overcrowded emergency rooms, more crime in the neighborhood, hispanic neighborhoods where criminals go to hide in plain sight. the president is right on this we must secure this border. we must get funding for the wall. we need it in key areas. in texas we have 19 crossings with mexico. big cities like mcallen, brownsville, laredo, they come and disappear in the city easily, we need the walls to expand long how the side of those borders to push them into no-man's land where they're easy to spot by air and easy to pick up. they come through the big areas, stuart. that is where we need the walls to protect us.

stuart: back to my original question. i want to sum it up, you say yes, shut down the government if that is the price of building the wall? >> what i say, look that is the president's decision but i focus on texas. i'm for the president doing whatever it takes to get this wall funded and build this wall to protect our border. i will let him make the decision. he has been right virtually on every decision he made. his final decision on negotiation i will leave to him but i will tell you they underestimate him if they think he is going to back down. the american people, i have seen it in poll after poll, i heard it from people everywhere, republicans, independents, democrats they know this must end. if the democrats think they can call his bluff on this, use this in november, they will find out it's a losing issue for them. stuart: sir, coming up on a hard break. you know all about that. >> sure. stuart: lieutenant governor of texas, dan patrick. always a pleasure. >> thank you,. stuart: federal air marshals

tracking american citizens not on a terrorist watch list, not under any investigation. it is part of a tsa program. i will talk to a tsa official. i will ask him, is this profiling? we'll be back. add-on advantage. now after booking your flight, you unlock discounts on select hotels right until the day you leave. ♪ add-on advantage. discounted hotel rates when you add on to your trip. only when you book with expedia.

our phones are more than two, just phones.k up. they are pocket sized personal trainers...

last minute gift finders... siri: destination ahead. and discoverers of new places. it's the internet in your hand. that's why xfinity mobile can be included with xfinity internet. which could save you hunreds of dollars a year. plus get $150 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.

stuart: positive news on manufacturing sector, still expanding the market to the tune of 55 points. apple hit it, $200 a share. 2.50 cents away from being a trillion dollar company. tsa under fire for a surveillance program where air marshals track citizens not on a terrorist watch list, not being investigated. michael bilello with the tsa public affairs department. he is with us now. sir this is being characterized as profile, something we shouldn't do. what is your side of the story? >> good morning, stuart. thank you for having me on. allow me to clear up misinformation. average americans are not being targeted by these programs. in fact the average american would never come close to qualifying for these programs. these programs are designed to look at individuals who have a very suspicious pattern of travel. when you combine that with specific information through analysis that person then potentially poses a threat to aviation security and warrants

observation by a federal air marshal. race and religion are not factored in. stuart: you're looking at people. you're checking people, who have a history of suspicious travel. we're told you that check whether or not they use the bathroom and how often they use the bathroom when they're on a plane that kind of thing that goes a bit far, isn't it? >> what you're describe something behavioral detection. that starts at a checkpoint. when you he, me, everyone suppose through the checkpoint, tsa agents observe behavior that may make you seem like you're nervous. physical behavior demonstrated by those successfully carried out attacks on both airports and aviation. that starts at the check point. federal air marshals, 30,000 feet in aluminum tube flying to keep passengers and aircraft save they're looking to see what the pattern of behavior so they may ree any activity on

the plane. stuart: very fast, michael, have you gotten good leads from the program? have you broken up a terrorist ring or stop ad hijacking? >> out of respect to the good work of air marshals and other federal agencies i can't speak specifically about any type of thwarted cases or specific incidents but i can tell you that this program has been in place since 2010. iteration since 2012. has robust oversight. members of congress and select committees have been briefed on it. very modern approach, methodical practical approach to aviation security. it is necessary to keep another 9/11 style attack from happening. stuart: michael, thank you very much for putting your side of the argument to us today. we appreciate it. >> safe travels. stuart: thank you. alexandria ocasio-cortez, bernie sanders, they're big supporters of one, guaranteed basic income program, two, medicare for all. however, this week we've had news that neither plan actually works. they're wildly expensive. in my opinion, socialist

policies are falling apart. you will hear my take on that next. .. .

stuart: it just won't work, socialist policies are falling apart. it is capitalism that's clearly winning and delivering, let's start with the falling apart of the socialist regime, start there, alexandria ocasio-cortez have championed a guarantied basic income program. basically that's here is some money, spend it any way you like, in ontario, canada the government is scrapping guarantied income plan, 4,000 people have been receiving about a thousand dollars a month, no more. the minister in charge says it's not sustainable and, quote, it's clearly not the answer for ontario families, one year into the experiment they pulled the plug, then there's medicare for all which is fast becoming

policy of democrat party, george mason university has put price tag on it, wait for it, $32 trillion over a 10-year period, where do the socialists think that kind of money is coming from, answer, tax the rich and gut the military, economic nonsense and dangerous to boot, guarantied income, medicare for all hasn't worked, will never work. if the socialists really did want to help ordinary people just go with what we've got, rapid growth capitalism, look at the wall street journal headline from today, u.s. workers get biggest pay increase in nearly a decade, is that a government handout, no, it's capitalism. the commerce department says wages and salaries are rising 25% faster under president trump than under president obama, clearly capitalism delivers. the socialists will ignore all of this, policies have based on feelings and emotion, they're in love with human tar ape side, their ideology tells them they are being fair and decent and

support in the democrat party is clearly growing, with clear evidence that free money, free college and government health care programs are unworkable and ridiculously expensive, the left keeps on banging that socialist drum. what a shame. if they could just get rid of emotional contempt for president trump they will see that plan is best way out of poverty. socialism doesn't work and capitalism does, the third hour of varney & company is about to begin. ♪ ♪ stuart: i got the a little worked up, dems job guaranty is a guarantied job killer, who wrote that? former lieutenant governor of new york, our own betsy mccoy, i

say our own. >> thank you, the democratic party is becoming the antiwork party, their plans to undo trump tax cuts will kill the job's boom and they've got their eye on your paycheck to fund these redistribution scheme shoots you talked about. this is really building steam within the democratic party despite its failure across the border in canada and in eastern europe, the fact is that many left-wing democrats are now proposing a guarantied job's program which is really, stuart, a thinly vialed guarantied income program. the government sends you a check, no questions asked, you don't have to work and it's funded by you guessed it, your paycheck. stuart: the money pushed at you, isn't that different from guarantying you a job, there's a difference? >> read the fine precipitation, it comes down to the same thing and the fact is the federal

government already has 41 jobs' programs for unemployed costing $17 billion a year. look, right now democratic party is wooing voters with guarantied jobs, they must think the public is stupid. this is the middle of job's broom and not job's depression. unemployment at nearly 50-year low. unemployment among minorities, hispanics and blacks is near an all-time low and there are many job openings than job seekers, in fact, employers are lowering requirements to get a job, throwing college requirements, work requirements out the window to get enough people in the door. stuart: changing gears for a second, you wrote the book beating obamacare, i want you to explain something that the administration has just announced, they are going to boost short-term health insurance plan, what does that mean? >> this is very good news for consumers because obamacare

passed the law that everyone has to buy full of things you may not need for example materny care, exactly. let's get consumers relief, let them buy a package of benefit that is they need, maybe it doesn't include maternity care, if the federal government is requiring tomb buy a four-door sedan, maybe you want something affordable, after all driving is better than walking. stuart: i think i've got it. [laughter] stuart:ly stand back a little. thank you very much, betsy, good stuff as usual. back to your money, the dow industrials are up about 37 points, not a huge gain, okay, so there's the dow, up 35 points, more losers than winners amongst the dow 30 but, again, please show me apple, i think it just hit and it's staying at

$200 a share. there it is. up 10 bucks. that's a huge gain for a company of apple's size, by the way, if it hits 203.45 apple is worth $1 trillion. i'd really like to see them get there during this show. we've got 54 minutes. ashley: come on. stuart: buy some apple, please. joining us author of i always get this wrong, the name of the book is get to a hut. that lady wrote it, a publicist for steve jobs as i recall. i want to talk about apple, often times tim cook is compared with steve jobs, unfavorably compared jobs the great visionary, tim cook sort of the mechanic of apple. would you say that's fair criticism that he's not the visionary, that jobs was? >> no, he's definitely not the visionary but he is every bit talented in completely different arena, yeah. stuart: what's his talent?

>> so tim is a great leader, he's a great manager, he's a great what i like to saw steward of what he was left by steve. today we have a company in apple that's unique in consumer goods whatever inia. they are what i call maybe first ever essential luxury brand and that kind of means two things, first the company bestowed upon consumer identity with social currency and two, it creates addiction, once you buy into the apple ecosystem your life runs on ios and can't and don't want to get out of it so he's created that and it's magical. stuart: built-in vehicle for money creation and profit creation that stretches into the future and it's because the services, the ecosystem, that's pretty much guarantied to grow just extraordinary strong, right? >> absolutely. it's just going to grow and grow and like i said, once you buy into the ecosystem, your life runs on ios and so you will

continue using services, continue buying the products, it's an amazing machine and i really do think that apple is the first ever what i would call essential luxury brand. stuart: is it a completely different company from the one that you worked in some years ago? >> oh, yes, that was many years ago but, yes, it was really run kind of like a cowboy company and with steve not necessarily at the helm because he wasn't the ceo when i worked there, he let the mcintosh division where i played my game and it was very much a kind of renegade operation that ended up redefining the entire company, today it's a real corporation run by professional managers and they do a fabulous job and bravo on that stock. stuart: sounds to me like saying that apple grew up from your day back when to now they grew up, you say that? >> they did grow up and steve grew up while he was still at the helm but grown up even more since then and i think tim cook is an amazing steward of great

visionary assets that he was left. stuart: last one, 20 seconds only. if steve jobs was still alive, would you like to work for him directly with him? >> i think the idea of liking to work with him no, would do i it, absolutely in a second. stuart: exactly. precisely right. andy, thanks very much for joining us. >> thanks, stuart. stuart: sure thing, you better look at amazon, they are also on a race to trillion dollar valuation but they have a long way to go, amazon has to get the $250 a share before it's worth a trillion, apple has another couple of bucks to move up and they are at trillion. facebook, they have removed 32 fake accounts that were supposedly concerning with med until the midterm elections, no impact on the stock whatsoever still at 172, no bounce after the big drop over the last couple of weeks. how about tesla, they report profits after the closing bell today, prior to that release that is just under $300 a share.

now this, a new wall street journal reports, claims young people do not want jobs in the construction industry, next we will talk to another woman running a construction business, her name is barbara cay, she got into construction by building the bunk beds she shared with her sister as children. she's also the founder of one of the largest female general contracting companies and she says, yes, young people are not getting into the field. and that was a contradiction, wasn't it. yes, they are not getting into the deal. president trump meets with inner city pastors to talk prison reform, he will be joining us shortly. how is this for a headline, how trump could be like reagan, you know the man who wrote that piece, that's right, art, there he is, he will explain that headline. meanwhile, check out national tennessee, home of art himself,

he has the camera, pretty good weather in a state which has no state income tax. only state tax and beck the fact is, there are over ninety-six hundred roads named "park" in the u.s. it's america's most popular street name. but allstate agents know that's where the similarity stops. if you're on park street in reno, nevada, the high winds of the washoe zephyr could damage your siding. and that's very different than living on park ave in sheboygan, wisconsin, where ice dams could cause water damage. but no matter what park you live on, one of 10,000 local allstate agents knows yours. now that you know the truth, are you in good hands?

that's it. i'm calling kohler about their walk-in bath. nah. not gonna happen. my name is ken. how may i help you? hi, i'm calling about kohler's walk-in bath. excellent! happy to help. huh? hold one moment please... [ finger snaps ] hmm. the kohler walk-in bath features an extra-wide opening and a low step-in at three inches, which is 25 to 60% lower than some leading competitors. the bath fills and drains quickly, while the heated seat soothes your back, neck and shoulders. kohler is an expert in bathing, so you can count on a deep soaking experience. are you seeing this? the kohler walk-in bath comes with fully adjustable hydrotherapy jets and our exclusive bubblemassage. everything is installed in as little as a day by a kohler-certified installer. and it's made by kohler- america's leading plumbing brand. we need this bath. yes. yes you do. a kohler walk-in bath provides independence with peace of mind. call and ask about saving $500 on your walk-in bath,

or visit kohlerwalkinbath.com for more info.

>> a nuclear war cannot be won and must never be fought. [applause] >> the only value in our two nations processing nuclear weapons is to make sure they will never be used but then would it not be better to do away with them entirely? stuart: former president reagan during 1984 state of the union address, all right, you've got that, look at the headline from "the new york times" op-ed section, here it is, how trump could be like reagan, one of the authors who cowrote that piece

art, former reagan economist. okay, let's get right at it, i believe you say trump could be like reagan and as good as reagan if he just got rid of this tariffs, is that what you're saying? >> yeah, if we could get everyone else to get rid of them as well. he could do that, he would be the economic reagan with respect to this. i remember when reagan did that with regard to nuclear weapons and it was amazing and it really worked, stuart, and it would work beautifully with trump and i think this is what trump wants to do, i think he wants to get to zero tariffs, zero nontariff payers and zero subsidies and make it free trade world which is what i want, i think every good economist wants. stuart: i agree with you entirely, free trade get rid of all tariffs, obviously we are for that, i don't think many people realize that that is the end result that the president is aiming for. art, while i've got you, i want to talk about steven mnuchin and he wants to change the capital gains rules so that you pay less

in capital giants tax on a long-term capital gain, what do you say about that? >> i think it's important to have all of the taxes in the u.s. code index for inflation, i mean, we have personal income tax, the bracket stuff is very dangerous. there's dangerous to capital gains tax because if there was high inflation in late 80's or early 90's, more than net worth asset is and that should be gotten rid of, so therefore indexing capital gains taxes for inflation is a no-brainer, should be done. the question is whether it should be done retroactively or prospectively and the way it's proposed right now would be retro active for sure it has to be prospectively so that everyone from now on realizes that they'll never be inflation taxation on capital gains that

would be very helpful. stuart: if you did that, they'll be a lot of selling of housing where you've made capital gain and stocks where you've made capital gains, i don't see anything wrong with selling, it would free up markets, wouldn't it? >> for every sold there's a dollar bought, a lot of selling and buying. the buying would be bought with the assurance that there won't be inflationary taxes on asset that is you buy going forward which would be wonderful. every time we cut the capital gains tax rate by serious amount there's been huge flood of additional tax revenues in the u.s. treasury, i would expect the same to be true by capital gains taxation and i've advocated this and most economists have advocated this for years and years and it's about time to do it. stuart: as a man who i believe voted for president obama a couple of times and i believe you voted for president clinton way back when, are you helping any gubernatorial candidates in

the state of tennessee? >> let me correct, i did not vote for obama, i did vote for clinton. yeah, i'm helping two candidates, one of them is in connecticut, bob, republican candidate who seems to be leading the pack right now, phenomenal guy, i have known him for ever at ge, perfect governor and dianne black, head of house budget, the person who allowed the tax bill to pass. she found the pocket there of 1 and a half trillion dollars so we could go through pay fors and make it happen, she's spectacular and both of the candidates i'm working closely and goodness know we will find out very soon whether they win or not but they have great, great people with great governors. stuart: let's not forget that dianne black was an emergency room worker. >> she's spectacular. i have known them both for years

>> thank you, stuart. [laughter] stuart: scientists spotted whale dolphin, researchers believe the animals father was a rough dolphin and the mother melon headed whale. ashley: now i know. stuart: you get it all. spacecraft begun search for distant world or worlds, plural, it's called tes. taking pictures of nearby stars and looking around. well, it is now being used, so you know it's becoming a hot commodity, connell mcshane in mining operation in texas, i want to know how valuable the sand is now, we will go to him shortly. meanwhile denver, colorado the mile high city, yeah, not very clear. ashley: looks very sandi.

[laughter] stuart: denver, ladies and gentlemen, great place. ♪ ♪ year, i am sorry about that.

[music playing] (vo) progress is in the pursuit. audi will cover your first month's lease payment on select models during summer of audi sales event. 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. >> sand, we are told is a hot commodity because it's used in

fracking process and we are doing a lot of fracking, connell mcshane in what's known as sand dooms. come on in, you tell me how much sand is worth? >> well, stuart, if you came down here two years ago, you see people like you like to do run around in sand buggies and the sand is worth nothing, now they are selling it 40, $50 a ton. i want to introduce you chief operating officer of a company called high crush taking advantage, scott, good to see you, thanks for coming on on fox business, you moved a lot of business from wisconsin to texas a year ago, tell us what happens since? >> welcome to kermit, home of the permian basin and close to customers, 40% of all of the drilling activity in the u.s. occurs here in the permian. >> when you moved you cut your

costs, you cut your customers' cost in half by having it here, not having to put it on a train? >> correct, in addition to reducing cost what we really did was reduced the time, two weeks versus two hours coming out of plant to well. connell: stock price has just about doubled, some people say, boy you're growing too fast. >> we just bought a silo company, closed today, we are excited about that. that's going to allow us to be able to have the most expensive offering in the business. >> thank you, scott, some business, stuart, it really is, because you think you're in the middle of nowhere, the sand to the permian basin and they are making money in kermit, texas. stuart: they do a lot of franking in texas. thank you very much, indeed, i will not mention he's a mets that the mets lost, i didn't get

into that. the wall street journal -- [laughter] stuart: wall street journal says young people don't want jobs in the construction industry, coming up the woman who founded contracting firms in new york city, barbara cay, construction trail blazer and she says the wall street journal is dead right, young people don't want to be in construction and that she says is a problem, she's next. right now we bring you the beautiful cities of america, this one is obviously, the arch 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.

stuart: no gain now, in fact, a fractional gain, 1 point higher for the dow, 24,400. how about apple, it's still $200 a share, yes, it is. it's about $3 shy of being valued totally at a trillion dollars. 200 bucks, not right now. facebook, yes, they've removed 32 fake accounts that were supposedly mixed up with meddling in the midterms, no impact on the stock whatsoever

and no bounce after the last drop in the last couple of weeks. tesla reports profits after the bell today just shy of $300 a share as we walk up to earnings, amazon, miles away from being a trillion company, it's 1787, has to get to 2,050 before it's worth a trillion. up 9 bucks today. the wall street journal reports that young people do not want jobs in the construction industry, joining us now is barbara kabobik. [laughter] >> close. stuart: founder of evergreen construction, largest female-owned construction companies. answer this wall street journal story here, youngsters don't want to work in the construction industry, they don't want to get their hands dirty? >> well, i don't think they want to get hands dirty because they want to make a lot of money and there's barriers to entry and in cities like new york everything is financed, hedge funds,

technology, so you have to be very smart to be carpenter or plummer and they figure if they have to learn and work hard they might as well go into finance. you don't need a college degree to be a carpenter but to get a good job as carpenter you will have to join the union to get top wage and sometimes in the unions such as in new york city there are barriers to entry. stuart: that's just new york city. >> yeah. stuart: you go out to tennessee or missouri, you probably don't have a union bar your to entry. >> true but you are not making enough money to afford to live sometimes. stuart: okay, tell me how much money, you employ these people, carpenter, for example, carpenter who is qualified carpenter, works in new york city, part of the union, how much they make? >> $150,000 a year. stuart: whoa, whoa, wait a

minute. >> yes. stuart: car pent near the union in new york city makes $150,000 a year with benefits. >> that's before overtime. stuart: and youngsters don't want to get into that? >> correct because it's a labor intensative job -- stuart: there's no reason why not to get into it. $150,000 a reason, what more reason you want? >> barriers to entry, there's some union projects, some nonunion projects, the nonunion projects happening in new york city labor force is typically less skilled, less places to learn. stuart: how much do they make? >> a nonunion good carpenter can make $100,000 a year. stuart: what's wrong with $100,000 a year? >> i can live with that. how do they learn, how can they learned to be skilled carpenter, they have to go to school for it, there's few vocational schools that can teach you to be skilled carpenter. they have to learn at my company's time so we can teach them so companies have to be willing to teach carpenters and

electricians to know how to do the trade. stuart: look, if there's a shortage of skilled workers in construction, surely, i mean, you fill that gap, don't you, make the places available, you train them and t worthwhile to train them? and that's what we do, what my company does, we train them, women on the job site, field supervisors and project managers and you to teach them and have to have the patience to learn, you know, to teach these people that want to want to be in construction and want to, you know, be carpenters and all. stuart: somebody comes to you, young woman, fresh out of high school, how long before they make 150 thousand bucks a year as carpenter? >> probably 7 years. stuart: long wait. take the point. barbara, thanks for joining us. >> stuart, thank you very much

for allowing me to be here. close. [laughter] stuart:ly get it -- i will get it right. thank you very much. back to the story that we covered at 9:00 o'clock, it's about 3d printed guns, the judge says, no, you can't print a gun in your own home, not allowed to do it, judge napolitano is back for round two on this. as i said earlier, a gun is a lethal weapon, i have no problem with the government saying that's got to be regulated. >> okay, but this is about freedom of speech, the judge did not say you can't print this, he said to one entity you can't post it, he can give it to you or you with go 3 blocks from here and get it from for public library owned by the government, so if a government library on a government book shelf contains this information how can the government say it can't be posted on the internet when you can get it in the library, you can get how to make a bomb, how

to -- this is a question of free speech and because the trial judge in seattle did not adequately address free-speech consideration will be reversed, reversed by the ninth circuit because that's where he sits, he would be reversed in any circuit in my opinion. it's one thing to punish somebody for words already used, it's quite something else to retrain them from using any words. that's what he's doing here. stuart: do you have any problem with anybody in america being able to 3d print a gun in their own home without any supervision, no licensing, no authority, no regulation, whatever? >> that is not what this case is about. stuart: well, answer the question any way? >> i have no problem with people defending themselves. stuart: do you have a problem that anybody wants a gun 3d printed in their own home, no license, no regulation, no authority over them whatsoever, you have no problem with that?

>> that would be violation of federal statute and i'm generally in favor of enforcing the lawsuit. [laughter] >> the carpenters that she hire, make $50,000 a year more than i made as life tenure judge, we made up 100,000. stuart: president trump tweeting about the mueller probe. this is a terrible situation and attorney jeff sessions should stop the rig witch hunt before it continues to stain our country, bob mueller are conflicted and democrats doing dirty work are a disgrace usa. do you think the president imposes legal position with that kind of tweet? >> i don't. if the president wanted this terminated he could order it terminated. on the other hand, his purpose maybe to undermine political support for bob mueller and to that extent this is an effective way to do it. the democrats are saying this is

obstruction of justice, this is the president sending thunder bullets to the justice department, you're investigating me, i'm going to stop you. two or three ways to look at this. this is not going to end soon. bob mueller has 7 days remaining before the 90-day period proceeding the midterm election, the justice department has regulation, that will shall not make significant announcements unless absolutely essential in 90 days proceeding a federal election, so if he doesn't make announcement about something on sunday, he's going radar silent until november, this is not going to go away, not going to go away before the midterms. stuart: pretty crazy, isn't it? >> two trials, manafort started yesterday, as soon as that one is over he has another trial in dc. stuart: i think that's a disgrace, i really do, that's my opinion. >> the judges are under paid or underpaid over a 100,000 a year. stuart: knife comment.

>> they make more than that now. stuart: first of all, gold, where is it, 12.27. bitcoin no longer making headlines it is quoted per coin, 7,599 bucks, now this, new study looks at the 50 states using wellness factors, up next ashley webster brings us the happiest states and the least happy, which one do you live in ashley: i have been working on it for years. >> jersey has to be. stuart: president trump meets with inner city pastors to talk about prison reform. do i have positive news on ge, yes, i do. they just landed 631 million-dollar defense contract with the pentagon, that story in 90 seconds meanwhile here is beautiful, beautiful new

york city. ♪ 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.

>> i'm adam shapiro on the floor of new york stock exchange, general electric announced it's

been awarded 600 million-dollar contract of aircraft and other military aircraft, fox business reached out to ge and the pentagon for comment, they've had no comment but investors certainly do, the stock is still trading down about 2% today for the year, year to date it's down 21% and over the next two weeks 46%, you will recall two weeks ago ge and earnings report talked about selling off it's healthcare unit but haven't done that yet, they will determine the dividend change, the aviation unit was one of the strong points but pulling ge down is oil, gas, power and not what they should be, more varney & company right after this.

whoooo. you rely on tripadvisor so you don't miss out on the perfect hotel... but did you know you can also use tripadvisor so you don't miss out on the best price? tripadvisor searches over 200 booking sites to find the hotel you want

for the lowest price. saving you up to 30%! so you can spend less time missing out... and more time paddling out! tripadvisor. visit tripadvisor.com or download the app! stuart: let's get to the study happiness levels in all 50 states. give me five top states. ashley: take a quick guess. stuart: california. liz: new jersey. ashley: minnesota, 10,000 lakes all of them frozen in february followed by south dakota, colorado, utah and north dakota, six of the top 10 in the midwest. stuart: least happy? ashley: here we go. louisiana is the least happy followed by rhode island, west

virginia, alabama, mississippi, in fact, 7 of the bottom ten are in the south. stuart: okay. ashley: i worked hard. stuart: you lived everywhere. ashley: i have. stuart: that's the majority owner of movie pass, roller coaster ride. liz: the end is near, this company is in collapse, if they continue in 30 days they will get delisted. own movie pass, we will build a lot of big customer-base by giving them, charging them $10 a month, you could see a movie a day and the math was, well, the national ticket average is 8.73, we will make money on that, guess what, urban areas started using movie pass full blown going in using movie pass, ticket prices $15 each and that blew up economic model and went upside down and the company is facing insolvency. stuart: they are paying out to

cinemas than bringing more in subscriptions? liz: thank you. stuart: you're welcome. now, this afternoon the president meets with inner city pastors, the topic prison reform, our guest will be leading that meeting pastor darrell scott urban revitalization ceo, welcome, sir. >> good to see you as well. stuart: is this all about getting people out of prison who have been convicted for low-level nonviolent drug offenses, is that what this is about? >> well, partially, the meeting this afternoon in the white house regarding urban revitalization and prison reform being one of the items that we are going to be discussing as well. jared kushner has been proactive regarding prison reform and curbing the recidivism rate, it's not going to be simply about letting people out of jail but it's going to also be about

preventive measures to keep people from going back to jail or going to jail in the first place and once again it's going to be very, very aggressive in regards to curbing that recidivism rate, reducing the number of people that are -- that shouldn't be incarcerated that are incarcerated and the president is looking at this and wants to be proactive concerning it. stuart: now s this part of the president's outreach to the minority community? >> well, part of it, a lot of it is going to center urban revitalization, inner cities with new housing, businesses, new businesses, transformative living, a lot of different layers and components to the overall urban revitalization plan, part of it is criminal justice reform, part of it is prison reform and once again curbing recidivism rate to get people out of psych toll return to go prison multiple times, get out, contributing members of the

society, that's what the goal is here, so that you don't repeat the same behavior that cause drrowd get in trouble in the first place. stuart: urban revitalization part of it, is that similar to the enterprise zones and zones of opportunity that we have been hearing about, tax breaks if. >> people to go in and employ businesses, start businesses? >> that's a component. we have a number of private-sector contributors that will participate in plan, we are building it as largest-public private participation regarding urban america and we are going to look at the opportunity zones as target areas for us to take this urban revitalization model and plant it in those zones so we can improve the quality of living in those communities. stuart: darrell, we are told that president trump is not popular with the african american community, but i would

presume the kind of programs that you're talking about would be very popular, right? >> yeah, unpopularity with the african american community that's fake news. [laughter] stuart: okay. >> listen, african americans, first of all, we are not monolithic, there's a segment being led by the democrats and liberals or whatever that are trying to keep the black community towards the president, we cannot deny reality, african american unemployment is all-time low and the president has been proactive in initiatives regarding african american community and you can't deny what he has done and what he's doing and what is yet to be done that is on the table, so, you know, that story they are trying to keep us divided by playing identity politics but it's not working. stuart: pastor darrell scott, hope you can come back soon and tell us what transpired in the white house? >> you'll be the first one i

tell. stuart: see you soon. we have three stocks that are dragging on the dow to the tune of 65 points, there they, 3m, caterpillar, boeing, trade stocks, collectively they are pulling the dow down 65 points, overall 28 but the three stocks are doing the damage. profit falls at sprint but it did add subscribers, that's good for a 2-cent gain. lowest sales the beer brewer people, beer people i should say, poor performance in america and canada nonetheless the stock is up 3%. a new report raising questions about maxine watters and how the campaign raises the money and what she does with the money when she's got it. right now we will check out -- favorite place, honolulu, hawaii

at&t provides edge-to-edge intelligence, covering virtually every part of your healthcare business. so that if she has a heart problem & the staff needs to know, they will & they'll drop everything can you take a look at her vitals? & share the data with other specialists yeah, i'm looking at them now. & they'll drop everything hey. & take care of this baby yeah, that procedure seems right. & that one too. at&t provides edge to edge intelligence. it can do so much for your business, the list goes on and on. that's the power of &. & when your patient's tests come back... is

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.

stuart: let me bring you oil and gas, start with oil, down a buck 20 at $67 a barrel but no change for the price of gasoline. we still have a national average of 2.86 a gallon, we have been there for weeks.

there are serious questions about pl axine watters and how she raises money. tell me what is going on. ashley: this has been going on a long time. in other words, maxine watters endorses these candidates, candidates from california f your name it's not in there, maybe you're a trump supporter, she takes in money for having name on mailers, anywhere from 5,000 up to 30,000, that generates a lot of money, as someone said that's a heck of cottage industry, since 2004 the campaign that uses the mailers charges other politicians to be on the mailer is paid $750,000 to maxine waters. now, there has been questions like, well, what's being -- it's complicated because of the california election laws, two complaints have been filed last month with the federal election

commission saying, wait a minute, something not quite right here. she's the face of resistance as we know and apparently mailers carry a lot of weight that those think she's a fantastic politician. liz: federal contribution limits and seems to have been -- stuart: going to daughter. let's go back to the market. i've got cheesecake factory way down, look at that, their profit fell short, down big, 12, 13% down. now this, i've got breaking news for you, the u.s. and méxico, are quote, getting close to an agreement on cars, that's the issue that's the center of the nafta talks, this is according to senior mexican trade official, the official tells reuter, s the u.s. has been showing more flexibility on autos and other issues of late.

now that's -- i would call that pretty positive news on trade, it's not having an effect in overall market at this point. we will have more varney for you after this. i believe we will show you sixth avenue new york, we will take the world trade -- no, the empire, there's sixth avenue. [laughter] stuart: i got it right in the end. ashley: you did. we have got a problem. a few problems actually. we've got aging roadways, aging power grids, ...aging everything. we also have the age-old problem of bias in the workplace. really... never heard of it. the question is... who's going to fix all of this? an actor? . . . the opportunity gap, the achievement gap. whatever the problem, business can help. and i know who can help them do it.

stuart: let me repeat the news on trade. it may ultimately have an impact on the market. it hasn't so far. the u.s. and mexico they're talking trade. the u.s. is pressing for a clause that would reopen nafta talks every five years. in other words a sunset thing going on. the two sides, are quote, again, i use the quote, getting close to an agreement on cars. the issue obviously at the center of the nafta talks ongoing. that getting close close is from

a senior mexican trade official. that official is telling reuters the u.s. is is showing quote, more flexibility on autos and on other issues. so just as we close out we've got a lot of news coming to you on trade. charles in for neil. i think you have more on trade. go, charles. charles: abs slautly. thank you very much, stuart. charles payne in for neil. the united states and mexico are getting close on an agreement on auto trade. we're expecting more clarity on from the white house the trump floating idea more than doubling tariffs on chinese good. blake burman at a very busy white house. blake. reporter: charles, we knew related to china there was the potential on the table for a fresh batch of tariffs, $200 billion at 10%. we're hearing the 10% number