maria: great to see everybody this morning, thank you. >> you rock, maria bartiromo! [laughter] maria: we covered a lot. all right. we will keep doing it then. "varney & company" begins now. stuart, take it away. go seize that day! stuart: sorry, i did not hear that. maria: seize the day, i said. stuart: i'm sorry, i'm sorry, i unplugged it. good morning, maria. [laughter] i went rogue. good morning, everyone. first lewin on the prompter -- line on the prompter, we were right. the performance of tesla's stock depends as much on elon musk's tone and demeanor as the company's actual financial results. we were right. late wednesday musk reversed his hostility. no more insulting analyst ares, no more ridicule. a rather contrite elon musk offered apologies and a more measured response to questions. the stock dropped after he had appeared on the important

conference call some time ago, but when he came on the call, it popped, and it's still popping. it is up a whopping 10%. that is $30 up. that that's tesla as of right now premarket. now look at this, tesla's one of the few bright spots in what looks like the big selloff. don't know how the market closes, but in a half hour the dow will open with another triple-digit loss, and trade is once again the problem. president trump has told his top trade negotiator to, quote, look into 25% tariffs on chinese goods versus 10 president % tear -- 10% tariffs originally mentioned. caution, these tariffs are being considered. they've not yet been imposed. is this another case of computers reading another trade headline? a one-day blip maybe? we have seen that before. we're on it. big show coming up. i am going to defend millennials. "varney & company" is about to begin. ♪

♪ stuart: he is the visionary founder, he's the one with the drive and genius to get an enterprise moving. that kind of person, though, not always the right person for the job of running things once the company has been established. well, well, well, that was two weeks before yesterday's conference call with elon musk. maybe he watches the show. [laughter] because -- flattering ourselves, of course. [laughter] maybe. he seemed to follow our advice, did he not? gary gastineau, he was on the call. he listened to musk. was he a little bit contrite? >> not just our advice, let's remember are, the market's advice -- [laughter] he was contrite. he wasn't just contrite, he was apologetic and humbly so. he was even polite. he let the two analysts that he insulted last time go first

during the q&a session. very different. he was angry last time, he was mellow this time all the way through the call, a lot more measured, much different -- stuart: but he did have a better story to tell. i mean, the stock popping is not just about him and the conference call, it's also about numbers that tesla came up with which, i think, were pretty good. >> there was a little confusion or misdirection. they said they built 5,000 cars at the end of june like they said that they did that multiple times during july. but they also said they're planning on building 50-55,000 model 3s during q3 which would average out to more like 4,000. somebody asked them if they're going to be building a million cars in 2020, he said, sure or close to it. well, somewhere between 500 and a million. he said that the china factory's going to help out, but the updated report says the china factory's not going to start

building cars until 2021. one thing that was different, though, there weren't these big stretch goals that we've had in the past. stuart: seems to have worked. can we put that up again? premarket tesla is up about 10%. [audio difficulty] on the back of that call, some pretty good numbers. gary, you're on the call, and we thank you for that. thank you, sir. coming up at the top of the next hour, by the way, i'm going to give you my full take on elon musk and the lesson he apparently learned perhaps from watching this program, he says again. 10:00 eastern. let's get back to apple, the stock has to hit 207.04 to reach a trillion dollar market value, just about $7 away. getting close. elizabeth: yeah. big debate breaking out on wall

street on how wall street is undervaluing apple like a sleepy insurer like aetna or a stanley black and decker, a steady eddie kind of value stock when it's popping. it's about services like music, tv streaming. that's the second best performing unit of apple, it should bvalued more like a consumer goods company. if it was valued like that, it would be the fist $1 trillion company. around 17 times forward earnings. if you bring it to 20 at least, it goes through a trillion. stuart: so one more day of the trillion dollar watch. now it's got to get to 207.04. i think we've got a special graphic -- elizabeth: amazon is still $250 behind -- stuart: what do they know? [laughter] all right, liz, thanks very much. where are we going to open this market? down about 150 points. the nasdaq's going to be down about 50. the ten-year treasury yield, is that important in this market?

well, on occasion it is. it touched 3% yesterday, it's backed off to 2.98% as of this morning, as of right now actually. come on in market watcher jonathan golub, a credit suisse kind of guy. how are ya? >> good. stuart: is this just another one-day trade blip, we'll recover fast and go on our way? >> the fact that the market's going to be down? stuart: because of the trade headlines. >> it is, and they're noise. let's put this in perspective. since the lows of the market in february, the market's up 10 is %. the market year to date is up 5%. if you annualize it, if we kept this pace going on all year long, you'd be just shy of 10% for the year. we can worry about the fact that trump tweets and the market coughs a little bit, but it doesn't really matter. stuart: am i right in saying they've got computers these days which read headlines, and the moment anything negative comes across, boom, you sell stuff?

is that how it works? >> i don't know if that's the majority mark, but absolutely there's stuff that scrapes through the internet, finding things and reacts because they want to do it before you get the opportunity to go and think about this and, sure. but in general, i think that we, you know -- here's the most important thing, are we going to see a full-blown trade war? very unlikely. are we likely, actually, to be better off because we fought the fight on fair trade with china and negotiating on behalf of some of these things, i think the answer is yes, and people are concerned about the worst case outcomes, but they have to look and say what's the expected outcome. and the process doesn't happen in a minute. maybe this takes six months or a year, and we should be willing to live with a little bit of discomfort during that process. stuart: you're one of the first market watchers who's come on the show and said maybe there's a positive outcome to the china trade fight. we've not heard that from many people. >> we're actually seeing that in the economics forecast.

there's so much kind of disdain or concern for the policies that they're not giving them the benefit of the doubt. so what we're seeing is the u.s. economics continually come in just a little bit better than expected maybe because some of these things are actually, are positive. stuart: every time you've appeared on the show in the recent past, you've been pretty bullish on technology and big tech in particular. >> right. stuart: well, it's had a bit of a setback recently. are you still bullish? >> a bit of a setback. year to date it's up 9%. it's pulled back here because facebook raised concerns about profit margins. here's really the key, it's only 13% of the s&p's revenue, so it's not as big as you think on revenues, but they run great businesses, and their profits are high because they're running at really high margins, and they're running with something like 40% of the entire growth of the market is coming from only 130% of the -- 13% of the companies which is these tech companies. they're just really great companies run well, high

margins, high growth rates, and there's no indication that's going to slow anytime soon. they have a lot of runway to get bigger. if you look at amazon, i think it's one-fifth the sales of walmart. so if you think about where it might be a decade from now, there's a lot of runway. online the advertising, it's like 20% of all advertising's done online. you tell me where it's going to be in a decade, 50% or? 40%? and that means these companies are this big but have a lot of room to continue to grow. stuart: amazon, google, facebook, there's still huge room the grow in the future. >> even when we were talking about apple, you know, i think that we perhaps are underestimating the room to run on a lot of these names. stuart: just takes a very strong stomach to buy a stock which is now valued at $1800 per shower. i'm talking amazon here. >> yeah, but again, the share price is really not what's important. no --

stuart: i agree. >> but it really is what's their forward opportunity, and i think that they're large. stuart: got it. jonathan, thanks for joining us. see you again soon. i've got some breaking news here, the trump administration is freezing fuel efficiency requirements. ashley: well, for the country's cars and trucks through 2026. if you remember under the obama administration, there were some very strict rules that were put in place including what i was just reading that the average miles per gallon for vehicles had to be 51.4 miles by 2026. it was going to protect the environment -- stuart: that's huge. ashley: -- it would save consumers money. however, the trump administration says, wait a minute, it will save americans thousands of money because these vehicles are going to be more expensive to buy, and the roads are going to become less safe because people are going to keep their older cars, less reliable cars longer because of these standards that are being put in place. so the trump administration says, wait, let's not do this, let's roll it back, let's freeze

it and talk about it and look at it before we move forward. stuart: wait a second -- [inaudible conversations] president obama wanted it to be 54 -- ashley: 51.4 miles. stuart: trump now says you freeze it in 2020 at 37 miles to the gallon. ashley: correct. stuart: got it. and by the way, california is not allowed to mess around with standards for -- ashley: right. you can only imagine the reaction from california right now. stuart: thanks, ash. [laughter] there has been a lot of talk about plastic straws lately, getting rid of them because they're bad for the oceans. well, next we have a defender of the plastic straw. we'll allow him to make his case with a smile. also ahead, the administration's point man on health care, he's talking about cheaper prescription drugs and cheaper health insurance. that man is going to be on the show. tonight we get another of those huge rallies with president trump. he's stumping in pennsylvania, a tough fight in the senate race.

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stuart: we're going to be down at the opening bell this thursday morning, off about 160 points. there you have it, 15 minutes from now down triple digits. right now here are the dow stocks which will be down at the open, helping to bring down the overall average. it's the usual trade-sensitive stocks, boeing, cat, 3m, united tech. all of them down. dow component dow dupont, well, they gave a rosy forecast, but that tonight help them. they're down 1% on that stock. we'll try to figure out why. trade is the backdrop for the big decline of the opening bell for stocks today. president trump has told his top trade guy to consider 25% tariffs on chinese goods. come on in fox contributor charles hurt who is also with the washington times. charles -- >> good morning. stuart: good morning to you, lad. i say that president trump wins this one. he's dealing from a strong hand,

strong economy, china's looking a little weak. i say he win, what say you? >> and i think it's important to remember that, of course, this president, president trump, was the first person from either party to realize that china was a problem in the first place. both parties have ignored this for far too long, and and obviously he does have -- it's a balancing act for him. he's got a lot of supporters in the midwest who are farmers, soybean farmers, things like that, and they, you know, they face real, you know, a real threat with this kind of, this kind of action. but you also have all across the rust belt also a seat of trump support, those people they have, you know, had a problem with china for a very, very long time. but i think that everybody involved has, is willing to give him enough rope, enough leash to, you know, leeway to kind of make sure that he actually gets something done. stuart: and enough time as well. >> yeah. stuart: this is not going to be

settled tomorrow morning or probably not next week or next month, but -- >> and there will definitely be short-term pain for a lot of people involved. the question is, is there a big payoff at the end. stuart: yes. there must be a payoff at the end. there must be a solution otherwise, absolutely, everybody loses. got it. >> yes. stuart: now then, charles, let's see what we've got here. [laughter] i read this. charles hurt, a modest response to the new self-appointed straw police. so you're responding to the anti-plastic straw movement. >> yeah, did you -- stuart: are you a fish killer? what's going on here, charles? [laughter] >> did you see this? out in santa barbara the city council approved a measure to jail people for up to six months for using plastic straws. and my problem is, look, if we're serious about the problem and want to eliminate this scourge of humanity, the plastic straw, then i don't think six months is long enough. [laughter] i think we should put people in

jail forever and maybe consider executing them. stuart: you are terrible. >> use of plastic straws, it's going to destroy humanity, it's going to kill the planet and also why are we coming up with sort of more practical solutions? one thing i was thinking we could do is we could collect all of the used syringes that they're collecting on the streets in san francisco, those are also plastic. those could become reusable straws. stuart: you know, sarcasm is a low form of wit, but you have elevated it to an art form. [laughter] >> i am a low form of wit, to be sure. stuart: let's be serious for a second. do you approve of the plastic straw ban? not necessarily a prison sentence for using them, but do you approvesome. >> no, it's absurd! i mean, the amount of plastic that is in a soda bottle, it's absolutely absurd. and if you, you know, the concern is that in this stuff winds up in the ocean and -- but if you look at the vast majority

of what the plastic is that gets coalesced in these islands in the ocean, it's fishing nets and things like that. i hate litter. people who litter, i do think there should be a terrible fine for people who lit, and i -- litter, and i think we should enforce those laws. of course, we don't. i'm all in favor of doing something about this, but why not a positive solution like let's figure out how to get that plastic out of the ocean and, i don't know, maybe recycle it? that would be a solution. stuart: charles, that was lively stuff. we give about one minute on china trade and three minutes on plastic straws. [laughter] no wonder we're doing well. >> it inspires passion. stuart: charles, you're welcome anytime you like. >> thanks, stuart. stuart: the nfl preseason kicks off tonight, and the nfl anthem policy is still kind of vague. two years in and there's still no solution. jason whitlock will be joining us in our next hour about tonight's game.

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stuart: it's gonna happen, tiger woods d phil mickelson will play head to head. match play format. ashley: either friday, november 23rd, or saturday, knorr 24th. that is part of the four-day thanksgiving weekend. it's going to be played at shadow creek golf course in las vegas. the official purse as high as $10 million. phil mickelson apparently said that's a ridiculous amount of money, no matter how much money you have, this will take both of us out of our comfort zone. stuart: it's all about ratings on tv. that's -- >> tiger v. phil mickelson. stuart: got to segway to this one, google's parent alphabet considering a censored search engine for china. elizabeth: yeah, they want to get 770 million users. google in hot water, remember, they censored james demoore, and google's saying exercise free speech workers yes to saying we done want pentagon contract, but

now the hot water is that google's basically aiding and abetting censorship in china. and so the thing is reuters now reporting that the chinese are saying, you know what? we didn't even want your castrated version of the google search engine. yes, that that's a quote. we want to jump the firewall and -- stuart: great firewall of china? elizabeth: that's exactly right. stuart: gross hypocrisy when you censor your own employees, you won't work with the pentagon on artificial intelligence, oh, but we'll get back into china, and we will allow them to censor our search engine. ashley: you can't make it up. stuart: we're going to be down, what, about 160-odd points when we open this market in four-and-a-half minutes' time. the nasdaq will be down 51. follow it with us, please, because take you to the opening bell.

♪ ♪ stuart: all right, thursday morning, 40 seconds to go, and we open up this market. now, we're probably going to see a a triple-digit selloff at the opening bell. it's another case of trade worries. president trump has told his top trade adviser to get out there and go towards, start considering 25% tariffs on chinese goods coming here, 25%.

that's worried everybody. ashley: considering. stuart: considering. ashley: keyword. stuart: they're not imposed yet, we're just going to consider 25% tariffs. well, that headline was must have to create some selling, and we're going to see it right now where it is 9:30 eastern time, thursday morning. we're off, we're running, and where are we now? we're down 115, 117, 111, bottom line is we've opened up with a loss of about one-half of 1% for the dow jones industrial average. right there, this moment. quickly show me the ten-year treasury. this is a key interest rate barometer. hit 3% yesterday, it's backed off to 2.98% this morning. now check out the s&p 500. that's down about the same amount as the dow, a half percentagen point. look at the nasdaq, i think that's down about the same percentage, yes, it is, half percentage point. so across the board you've got about a half percentage point

drop across all the major averages. tesla, it reassured investors that it will try to -- yes, it will achieve a profit in each of the quarters to come. and they say that a russia model 3 sales helped it burn less cash, and musk came across as more contrite in the call. that seemed to work wonders for the stock. it's opened with a 9% gain at 327. as i often say, i need help. here are liz macdonald, ashley webster, scott martin and christina. yes, we need help on a day like this. [laughter] scott, is it the same old story, this is a one-day blip, we bounce back real fast? what is it? >> yes, i think it is. now, the problem is the story's getting a little bit longer, let's say. i mean, you know, the more this stuff is starting to come out, i believe, stuart, the more the market and investors are maybe starting to get a little bit more concerned that this thing's not just going to eviscerate and go away. so to me, look, i think, you

know, there's a lot of good tailwinds here for the markets, for the economy. we got a good jobs number coming up, i think, for tomorrow, but the reality is this trade overhang is a big deal. as long as this rhetoric is still out there, 100 billion there, 200 billion there, retaliation here, retaliation there, the markets are going to continue to have a lid kept on them until we work out some of these issues. stuart: okay, interesting. president trump is negotiating with china from a strong hand, and the strong hand is we've got a strong economy. >> right, but look at the bigger picture. we're moving from a time of geopolitics to geoeconomics where you're using the economy, currency to fight with a country, not a war, but a trade war, as opposed to missiles. bank of america put out a note saying that we're shifting how we're fighting with countries, and it's affecting the american people through higher costs. we potentially could see this. it's around interesting angle to look at it. stuart: chinese currency is

down -- >> 6% in two months. stuart: so that decline in china's currency offsets the impact of any tariffs which we would impose on their stuff coming here. so it's a currency fight. >> precisely. which is why the administration hasn't said why have they gone through with this, why are they imposing more tariffs. is it because of the drop in the currency? stuart: okay. not going to answer that question, but it could be that it puts a cap on the market -- ash maybe. is. stuart: -- as opposed to a floor under the market. not quite sure where i'm going with this. [laughter] elizabeth: that sounded really good. stuart: a lot of nonsense sounds good. [laughter] tesla burning less cash, investors liked it. e hon musk gets on the -- elon musk gets on the call, a little contrite. apparently, investors just love it. well, christina? >> i was on that call, and i was very surprised. not only he apologized to an analyst that he told his question was a bonehead

question, but he sounded so tired, and he apologized. he kept saying, um, and he was pausing, he took forever to answer a question, and the major complaint is that they kept talking about their outlook, profitability in q3 and going forward. they're not talking about their financials in q2. you had revenue beat, earnings per share -- ashley: [inaudible] stuart: it doesn't hurt. elizabeth: the last quarter call, don't buy my stock if you don't like -- he clipped two billion in market share off of that. but, you know, look at the gee whiz stuff he's coming up with, atari games, you know? he's talking about offramp, onramp robotics. stuart: it's always gee whiz, something like that. ashley: so we're celebrating the fact -- [inaudible conversations] >> he's talking about profitability and increasing car production to 0,000 per week -- 10,000 per week. ashley: and we're celebrating the fact he didn't lose it on the conference call. [laughter]

stuart: he's more mature, so the stock is up $24 at 325. market has spoken. cbs, they report profits after the belled today, and that man right there, les moonves, he will be on the conference call, we are told. but wait a minute, new information, liz? elizabeth: basically, what's happening with les moonves, reports are out that he may have known this story was coming. is that it? ashley: the cbs board knew that the lapd had investigated an a allegation against moonves, an 81-year-old woman came forward and said she was sexually assaulted more than 30 years ago by moonves. lapd declined to take the case. statute of limitations, no way they could investigate it. the board did its own investigation said, no, sorry, there was nothing here. but the fact remains is they were aware of this charge prior to all this other -- elizabeth: so the question is should they have disclosed that if it's a non-issue. but you know what? he's got a lot of loyalists on

that board. that stock has tripled on his watch. he's made the loyalists on his board a lot of money. ashley: what point does the pressure start to kick in on the board. stuart: well, look, he is reportedly going to be speaking on this conference call that takes place after the financial results are released. if he's on that call and you can hear it, by the way, fox business network, 4:00 this afternoon, i believe you actually hear the call, and i think mr. moonves has to address directly the charges against him. elizabeth: yeah. ashley: he'll certainly be asked about them. stuart: must-watch television right there. six minutes in, and we are down 200 points, 197, to be precise, 25,136. that's where we are, down about three-quarters of 1%. a dow component, that means one of the dow 30 stocks, is dow dupont. yes, it gave a rosy forecast. however, china's tariffs could send animal feed makers to brazil and argentina for their

soybeans. that could hurt dow dupont's agricultural business, so down goes the stock 4% lower. it is a dow component, that hurt the dow overall average. then we have target and walmart, wait for it, they're automating more little tasks in their stores. which little tasks? >> automated cash machines. let's say you're going to buy some toilet paper. you give $20 to this cash machine, it dispenses the change you need. you already have automated machines, but this is going to be doing accounting, it'll know the float that it needs every single day, it'll count everything for you. walmart already has it, target's rolling out 2,000. you also have walmart planning to roll out robots on the floors to check what items are missing -- ashley: are these job killers, that's the question. >> oh, of course. they say target, target says they're reassigning so they can better help the customer experience.

stuart: scott, i heard you laughing out there. >> reassignment, i love that term. [laughter] by the way, good point about the toilet paper. that may actually make me start buying toilet paper again if -- >> okay, wait, so you're not buying toilet paper, scott? is. >> i just said again. the reassignment of jobs is such a do you have mitt romney -- euphemism. those jobs are going away, they're going overseas, they're going other places. goodness gracious, it's good for the bottom line for a lot of these retailers which have been struggling to make it. stuart: exactly. especially with labor costs probably rising sharply. i've got to say good-bye to scott and christina, thanks for joining us this morning. check the big board, we are, indeed, down 200 points, 25,132. nancy pelosi says health care costs and drug prices are soaring under president trump. next, health and human services secretary alex azar, he will respond to nancy moses.

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stuart: if you're joining us, we've oped on the downside and then some on this thursday morning. we're off 178 points as we speak, 25,100. the ten-year treasury yield is at 2.99%. it's backed off from yesterday eat 3%. the s&p, that is down. the nasdaq composite, that is down. we're pretty much down about a half percent, no, one-third to three-quarters of 1% down all across the board. this is the stock of the day, it's tesla. the company reassured investors, oh, we're going to make a profit in each of the succeeding quarters for the rest of in this

year, and musk kind of behaved himself on the conference call. investors like it, it's up $25, that's 8.5%. now, let's make time for a special guest. we're happy to say a frequent guest on the program. health and human services secretary alex azar. mr. secretary, welcome back. very good to see you, sir. >> great to see you, stuart, how are you? stuart: i'm real good, thank, for having you on the show, i've got to say. i hear that the administration, under you, you want to have short-term health plans which offer less coverage but are cheaper, less money. have i got it right? >> well, what we're doing is bringing more affordable options to individuals who are trapped under the affordable care act with insurance that is actually not affordable or not available or doesn't deliver them hospitals and doctors that they need. so these plans that we're now allowing to be offered under our new rule could save them as much as 50-80% off of what they would pay for an obamacare exchange

product. so this could be a really attractive option for millions of people. stuart: so anybody in the private sector who wants this health insurance could just get it. you don't have to belong to an exchange or some club or anything like that. >> that's right. now, this will still be subject to state law. it's putting the regulation of insurance where it belongs, under state law. but these can be really attractive options for individuals who are in transition between jobs, who may be gig economy workers, who are independent contractors and don't get an employee insurance, those who are working maybe three part-time jobs and they don't get insurance from any one of them. these can be great options for them or people who are out there in america who are in any of the 52% of counties in america with just one obamacare plan that may be too unaffordable to them and not offer them coverage where they live of doctors and hospitals. again, it's about providing options for people. they may not be right for everybody, and everyone needs to go in with their eyes open.

but it's another option the president's delivering to provide affordable insurance for people. stuart: now what about getting the price of prescription drugs down? i see you're proposing an open market in drugs. now, does that mean that foreigners will start to pay the same price that we pay here? in other words, they won't get 'em cheaper any longer, they'll be the same price as us, so we'll maybe get a break? is that how it works? >> well, one of the things the president's committed to is ending the foreign free priding off of america's investment in research and development of drugs here where we pay all the cost of development and other countries pay much lesses in their systems because, of course, they have socialist systems that price control. and one of the things that i've done is i've asked our fda commissioner to figure out how we can import drugs from developed countries where we have no intellectual property on the drug here in the united states so we're not violating patent rights or any intellectual property or harming innovation, but where we have a single product here in the

states, and the price is going up radically so you've got sort of a supply and access disruption, how can we bring competitors in from outside the united states quickly to introduce more of an open market for competition there. stuart: could you deal with this one quickly? we're getting reports that insurers in many states are looking for and imposing smaller obamacare premium hikes. get into that quickly. >> that's right. we announced yesterday that the filings that we have seen averaged to only a 5.4% premium increase, we've got many astronauts with smaller increases -- many states with smaller increases and several states that actually have had premium decreases in them. listen, the affordable care act is still broken. the premium baseline from which they're operating is entirely too high and unaffordable for so many people. but under president trump we've brought stabilization there that at least is bringing some relief to individuals even if the absolute dollar amount of these

plans is unaffordable and even if the benefit packages aren't necessarily what they want. that's why we're still, stuart, bringing the short-term limited duration plans out there, making association health plans available, why we've freed people from the tax, the individual mandate tax to require them to buy insurance they don't want and can't awe ford. so that's all what the president's trying to do, is bring affordable options to people. stuart: mr. secretary, if you can give me cheaper health insurance, cheaper prescription drugs and lower premiums, you're the man of the hour. [laughter] >> that would be president trump doing it, but i'm glad to help execute his agenda. stuart: one last one. i want to read a quote for you from house minority leader city pelosi, and here is that quote: american families are drowning under the weight of stagnant wages, higher health costs and soaring prescription drug costs. but the gop continues to pick their pockets to give more handout toss the wealthiest 1%. sir, would you respond to that?

[laughter] >> i'm glad to. stuart: i'm sure you are. >> you know, under this president we're seeing 4.1% gdp growth given the president's pro-growth agenda, the deregulatory actions of his administration, the tax cuts that he's wrought to the american people, the money that's been put in their pockets. we have seen two pharmaceutical companies decrease the price of their drugs for the first time that i can ever think of. we've had six companies that had planned to do price increases, that they had filed notices they were going to increase drug prices say they're not going to increase. and we've had 12 drug companies say they're not going to increase at least for the rest of this year, and that's while we're working to make the system more transparent, we're bringing negotiation to drug prices, fixing government programs, approving a historic level of generic drugs. so i don't get it. i don't get it. president trump is bringing lower drug prices, he's bringing economic growth, job creation. i don't get the criticism. stuart: well, we thank you for being on the program, i'm not going to criticize you. the next time you see a major

drug come down in price, come back on the show and tell us how it happened. alex azar, thank you, sir. we appreciate you being here. thank you. all right. how about this one? starbucks teaming up with alibaba for coffee delivery in china. this, they think, will boost sales. elizabeth: yeah, i'll tell ya, i didn't get it either because starbucks tried this in manhattan and seattle, and it bombed. they couldn't make any money on it. who knew that china has a gigantic coffee culture where people get their coffee delivered to them? so this is starbucks' second biggest market. they've got three million people in china delivering coffee all over the country, and they're going to start it out -- ashley: big country. elizabeth: yes, big country. [laughter] people in china want their coffee delivered to their doorstep, so it's an interesting development. stuart: strange, isn't it? i did not know that. coffee delivery is big in china.

ashley: chinese want their starbucks, and they want it now. stuart: okay, apple has hit another all-time high, put it up, please, let me see where we are with apple. yes, look at it now, 202.73, okay? ashley: another nice gain. stuart: it was fractionally higher -- elizabeth: $5 away. stuart: if it goes up $5 more, it will be worth a trillion dollars. by the way, petro-china once hit a trillion dollars on its ipo -- okay, move on. [laughter] next, the pentagon moving ahead with plans for the president's space force. we have a former navy fighter pilot who say is there any role for any pilots in this space force? we'll be back. is is not a bed. it's a high-tech revolution in sleep. the new sleep number 360 smart bed. it intelligently senses your movement and automatically adjusts on each side to keep you both comfortable.

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>> we need a new force. we'll call it the space force. space force. space force. >> space. you know all about space force but space is a very big factor in the trump administration. you will have the space force. [cheering] you know people are so excited by that. stuart: he done it several times. he talked up the space force.

who better to talk more about that, lea gabrielle, former navy pilot and better yet, cia intelligence operative. some credential. >> thank you, stuart. stuart: lay it out for me. what will the space force actually do? >> basically our near peer adversaries china, russia, weaponizing space. there is recognition as we develop technologies space is something very important in order to conduct our operations. when you think about how you communicate in the country, when you navigate, in your car using gps, our military uses all the same things. right now russia and china, u.s. intelligence has assessed they have been developing different space technologies. they launched experimental satellites. stuart: do they have weapons in space? >> i think the answer to that is yes. stuart: okay. >> when you look at the technology they're developing they're weaponizing space, actually. stuart: are we going to get up

there with guns in space of our own to shoot them down? >> potentially. that is not exactly what we're looking at. we're hooking to defend ourselves if we looking to get into conflict with near-peer asker is vary. they might shoot down satellites or disrupt our use of space. we have to protect itself, it is really as the united states military we defend ourselves. we defend americans and our interests abroad and we also defend things like the ability for other countries to use areas in space. stuart: i just want to know what it is going to do. are you going to be dressed up in a astronauts outfit with railgun. >> i sure hope so. that is what i want to do. i would love to do. i think, you look what we do through nasa. nasa does not weaponize space. nasa is more diplomatic space exploration but there is recognition these other countries do it. if we don't do it, they are

going to and we'll put ourselves in harms way. stuart: judgment, should we weaponize space, yes? >> there is concern -- stuart: come on, yes or no. >> there is a weapons race. we have to weaponize. stuart: thank you, there you go. >> we have to weapon eyes space because our adversaries are working on it. working on ways to disrupt us. we have to counter them. look what russia did to crimea. we have to protect ourselves from space. we have to protect military systems that operate by space-based programs. russia and china are coming after us. stuart: did you enjoy your performance on fox business? >> i'm glad. stuart: you may be asked back. thanks very much. good stuff. >> thanks for having me. stuart: next case, elon musk apologizes two weeks after i took him to task for his behavior. ashley: all but, stu. stuart: all about me. was he watching varney? i don't know. but my take next.

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stuart: there are some remarkable characters in the business world these days, none gets as much attention as elon musk, the founder of tesla. late wednesday tesla announced its financial results. it wasn't just the numbers that were the focus, no, it was musk himself, his demeanor, his tone, his personal response to the analysts that judge his company. i was watching the stock price as tesla numbers arrived, it went up. then came the much-anticipated conference call handled in person by elon musk. then the stock really went up. it popped, and it was musk's performance that did it. on the call he abandoned his hostility, he dropped the anger. a few months ago on a similar call he had gone after anyone who raised any doubts about tesla's performance. that did not go down well. back then the stock dropped, billions wiped off tesla's value.

questions were asked. why is such a petulant young man in charge of the most important car company in the world today? don't we need a mature executive in the job any said it myself. rob -- roll tape. the whiting is on the wall for elon musk if you want to run tesla effectively, calm down, maybe close your twitter account, or retire to a nice corner office and let an adult run things. oh, now, on wednesday, however, musk set out to change the narrative as they say. this is wednesday, yesterday. he actually apologized to the analysts he had insulted. he claimed he had been tired, working 120 hours a week. his tone was conciliatory. he was contrite. it worked. investors felt more comfortable with musk at the helm. here, there is a lesson here, you may be a genius, you may have vision, you may have started a brilliant new company but you can't bring in the money if you don't, a, execute the

plan, b, conduct yourself like a responsible adult. after all, when you're putting your money on the line, you have to trust the company company and money who you are giving it to. musk seems to learn a lesson that money is flowing right now into that stock. second hour of "varney & company," about to begin. ♪ stuart: well, well, it's thursday. it is 10:00 eastern time. that means mortgage rates. we get the official number. liz: up again, 4.6%, second straight week of the 30-year fixed going up. freddie mac is saying, you know what? house prices trending up six trait years. now hanging in the median is 277,000, national median for homes. ashley: sales are going up and mortgages are getting more

expensive. liz: that's right. stuart: less on the market. ashley: tough to get into the market. stuart: tough situation. but 4.6%, ashley? you paid 16%. ashley: 16% in early 80s. stuart: you're laughing at us. liz: have it on tape. hit the play button every week. stuart: market coming back a little bit. we were down 200. now down 137. trade still the concern of the day. president trump told his top trade guy, consider a 25% tariff on chinese goods coming here instead of 10%. gary kaltbaum is here. gary, is this another one-day wonder? the market dips because of a trade headline, goes right back up again? >> i'm not so sure. i think the problem we have they're getting to be consistently inconsistent on a daily basis. as an investor the last four days were, there is going to be trade talk, there will not be any trade talk. there will only be 10%, oh,

there will be 25%. that type of inconsistency has got to stop or markets pay a penalty. markets are tempermental. stuart: that is not inconsistency, that is upping the anti. that is live negotiation, if you won't budge you will up the ante. i don't think that is inconsistent. >> in the investing world it is inconsistency. in the economic world it is inconsistency. i have no problem with him trying to negotiate. i think a lot of this is a little bit too out loud. i would rather do it behind closed doors. you don't give a you know what i think so he will keep doing what he is doing. stuart: the problem doing it out front, as you say, in public as you say is that you leave china's leader xi for very little room for manueverrer he has to save face. that is important consideration. >> all the evidence is they're not laying down. look, i hope it works. i'm not a tariff fan but i hope

all these tactics work. i will applaud him if they do. if he go to no tariff world that would be gargantuan good. we're not seeing too much. keep our fingers crossed what he is doing. stuart: back to elon musk and his performance on the call yesterday. i think you heard what i say, gary. would you buy tesla's stock today. >> i'm not. this is great lesson don't bite the hand that feeds you. those people on the conference call are the big money crowd that defines which way a stock will go up. if they lose trust with a ceo because of is consistency that is where you pay a penalty. as far as today i think the stock is up because they're now promising profits. i'm not so sure that is going to happen. my biggest problem with tesla is valuation. here is fact, not an opinion. gm has less of a market cap than tesla but 10 times the sales and, tesla loses a ton of money.

gm makes a ton of money. they will have to do some great things going forward. the one thing the stock has going for it, there is 35 million share short position betting against the stock. if the stock starts to gain, the shorts will have to cover, that will feel the upside. stuart: that is a squeeze. but you wouldn't buy it? >> i'm not a buyer. stuart: thanks for joining us gary kaltbaum. see you soon. individual stocks worth looking at. 203.43 for apple, that is an all-time high. it to get to 207.04 before the company is worth a trillion dollars. look at cbs. they come out with financial results after the bell. the real interest there is les moonves. he will be on the conference call that always follows the earnings release. he will be on it. he has to address the allegations against him. you can watch it, hear it on this program, on this network, 4:00 eastern this afternoon, "after the bell," 4:00 p.m.

today. president trump doubles down, actually i think he triples down, to shut the government because he want as border wall to be built. joining us jim demint, former south carolina senator. sir, in your opinion shut the government so we can build the wall? >> stuart, donald trump is president in large part because he promised to secure our southern border. so far in year-and-a-half in office the democrats have blocked any funding of that border wall. he is, the president continues to insist rightfully that the funding for the government include the wall that he has promised the american people. so i don't know what the showdown is going to look like. i would love to see mitch mcconnell force the democrats in the senate to vote against wall funding. the american people want it. but, who knows what is going to happen, but i think trump is gwynething out loud to let them know that he wants the funding for the wall, or if the

democrats want to shut the government down over this, he is willing to let it happen. stuart: do you think it's a winning political strategy, right up front, very much in public, you build that wall or we shut the government down? is that a winning political strategy? >> it is for trump. he is trying to keep his promises. whether it's a winning strategy for republicans in congress, depends how they respond. if they run from fear of a shutdown as they always do, and afraid to stand up to chuck schumer and nancy pelosi i think it will really hurt them but i don't think it will hurt them if the american people see the republicans fighting in congress for the funding of the wall. stuart: the biggest, look, i think that the biggest issue in the november elections is the state state of the economy. i think the state of the economy is really, really good. americans are seeing the biggest pay increases in close to a decade. but does president trump get the credit for the economy's current performance? >> i believe the president does.

again the question is, does the republican congress get the credit? when i'm traveling around the country now, stuart, what i hear from a lot of republicans is they like what trump is doing but they're not, they don't believe that the republicans in congress are actually supporting his again today. so again, on the economic front, i think the american people need to see that, as they did with the tax cuts, is supporting the president. but i definitely think the president should get the credit. the regulatory front that he is dismantled, created more predictability for businesses and investment. the tax cuts clearly, they haven't even been in operation for six months and we're seeing a lot of good economic action. so -- stuart: yes, we are. >> hopefully it continues. hopefully republicans in congress can show they're supporting this again day, got it. jim demint always a pleasure to have you on the show. >>, thank you, stuart. stuart: now this, a woman in

massachusetts accused of intentionally crashing into a car because the car she crashed into had a trump bumper sticker. the victim said she also called him racist, when he said he voted for the president. she pleaded not guilty to assault and vandalism charges. we thought it we would bring it to your attention. nfl preseason begins tonight. the league still does not have a anthem policy. stuart: if there is doubt that bernie sanders medicare for all wouldn't work, check this. if congress doubled individual taxes and corporate taxes, it would not be enough to pay for medicare for all. more on that just a moment from now. ♪ the fact is, there are over ninety-six hundred roads named "park" in the u.s. it's america's most popular street name.

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stuart: we've come back this thursday morning. we were down 200. now we're down 1 is 5. let's get to tax reform. the administration is trying to lower the amount of capital-gains tax you would pay from a profit on a stock or a home. i want to bring in tom reed, republican. he happens to be on the tax writing committee on the house. can i try to explain this in a way perhaps i and other viewers can understand? if you bought a house 30 years ago for $30,000, you sell it today for $100,000. you made a capital gain for $70,000. the proposal is you index the original buying price to innation. the original buying price is not 30,000 bucks, it is 60,000 bucks. so you have a capital gain of 40,000 bucks, am i right, is that what you're trying to do? >> that is what the administration is trying to do.

take into account the effect of inflation on real value of money over time and i can appreciate that. one of the things i'm concerned about, going down the administrative route, this is always something better for congress to take the initiative, as part of tax reform 2.0, to legislatively make it clear. stuart: but you never get, it won't happen. if you go the right way, i agree with you, it is the right way, go through confess, you need 6 votes in the senate, you are not getting them. not get democrats to vote en masse on tax cut for capital gains. why not go through the administrative route, do it through treasury rules? >> obviously treasury will take the initiative if it has the ability to do that. that doesn't mean we can't try. i'm about trying to recognize the legislative process because we for too long delegated to the administration way too much authority. i think this is just another example of us trying to at least

re-establish the legislative process that represents the voice of the people. stuart: okay. i want to talk to you about bernie sanders's idea of medicare for all. we heard a lot about it from other socialists. it will cost $32.6 trillion in its first decade, if you make medicare for all available. i say that's ridiculous. what say you? >> well first i don't call it medicare for all. essentially it is medicaid for all. that is essentially what they're advocating for that price tag is unreasonably high. way too excessive. the bottom line is, even if it is medicare, remember what that is? payroll taxes cover medicare, stuart. you will have to triple, quadruple people's payroll taxes. working families will go without money they earned because they go to extreme policy of medicare, medicaid for all. stuart: i see a lot of democrats in the house and the senate who are getting behind this medicare for all idea. i don't know the exact number, i

think quite a few of them actually signed a letter saying this is what we want. you would like that, wouldn't you? you would like the democrats to run on medicare for all, 32 trillion bucks? >> absolutely. that is government-run health care. that is complete health care takeover by the government. people do not want that. we need to fix health care but giving it to government, with this price tag, you will bankrupt america, you will bankrupt working families because that type of tax load is unsustainable. stuart: if you can kill medicare for all and give me a tax break on capital gains, sir, you're a great guy. do you think you can do it? >> we're going to keep working at it. it is the right thing to do for people back home. stuart: tom reed, a pleasure to have you on the show. appreciate it. >> always a pleasure, stuart. stuart: next case, pope francis, he is making a change to one of the catholic church's teachings. what's the change. liz: no to the death penalty, no to capital punishment. it is inadmissible, it is wrong

because the inherent dignity of all human beings. prior to this the catholic church said the death penalty in certain cases is admissible because society has right for self-defense, common good, if there is terrible, terrible evil person out there, capital punishment is right. pope is seeing rise of death penalty. turkey is trying to reinstate it. u.s. has it, africa, middle east. he is saying every human being has inearned dignity, the work of the church the possibility of redemption for all. ashley: this current pope is a strong opponent of the death penalty. kind of getting his way. stuart: now church teaching is being shifted, that is more profound change. liz: that's correct. stuart: that is interesting. for the second day in a row the eiffel tower is closed to tourists because workers are on strike. they say a new ticketing policy caused lines to become way too long. they are tired of dealing with frustrated tourists.

shut down two days. ashley: the french way. stuart: i had to wait for you. ashley: you looked at me. stuart: america's energy dominance on full display in west texas. oil production, record high. they have infrastructure problems though. they can't get the oil out -- they can get it out of the ground but can't get it to their customers. that man there, connell mcshane is there on top of it all, full report coming from west texas. ♪

stuart: breaking news on north korea. what have we got ash?

ashley: press secretary sarah sanders said president trump received a letter yesterday, august 1st, from chairman kim jong-un of north korea. sanders said it is ongoing correspondence between the two leaders following up what they discussed in the summit in singapore and quote, advancing commitments made by both countries in the joint statement. encouraging to know they're still corresponding with each other. president got a letter yesterday from kim jong-un. stuart: the letter, et cetera, reading on the screen right now. i don't think that had any market impact, not at all actually, although the market has come back down from 200. next case, i say the most important oil field in the world is the permian basin in west texas. it is facing infrastructure problems. they can get the oil out of the ground. they can't get it to the customers. infrastructure problem. connell mcshane is there right there at the permian basin in

midland, texas. tell us, connell, what are they doing of fixing the problem getting the oil from the field into the market? reporter: they're trying to build pipelines, stuart. the problem they can't bid them fast enough. they're almost a victim of their own success. it is remarkable what happened here in west texas over the last few years. i spoke to an analyst, the single biggest factor in america becoming energy independent pumping oil out of permian basin. it is rare to get up on the rigs to sew you what is happening. pete will do that, my photographer. we'll have rich culbertson, who is here and helps run the rig. tell us what you are looking at? >> cementing the casing at 300 feet. two-stage cement job. we'll pressure testing and drilling next section. reporter: you're drilling down and next process is the fracking. tell us how it is done. >> move from this location to

next location. bring in service rig, frack it, start producing. reporter: how long does that take? >> i'm not sure on that part. drilling part, ticks 10 days drill the well. reporter: sometimes the problem is getting oil out of here. business is booming. >> we're finding oil, going as farce as we cap. reporter: where are you from, you don't sound like texas guy? >> bc, canada. reporter: how does it work. >> i work 28 days hitch. 14 days off. reporter: what do you think of the economy in texas? >> nice i love working down here. reporter: things booming? how expensive. you have the family back in canada. thanks for the tour. we'll get over to another sight rich is talking about where they dot actual fracking. they are doing their job. the process gets stuck at the end of it.

pipelines can't get built fast enough. experts say takes 12 to 18 months in order to catch up. stuart: that permian basin a gigantic oil lake underground. it is huge. connell, thank you very much. we'll get back to you later. dow industrials down 80. coming back a bit. look at this, president obama endorsing dozens of democrats for house and senate, but not that lady, the socialist alexandria ocasio-cortez. why did the former president snub her? we're on it. getting back up, back to tesla. next we'll talk to a guy who says, elon musk is a jerk. that is his words. and that he shouldn't be the ceo of tesla. again, his words. i want to know if this analyst changed his mind now that musk has indeed apologized? we'll be back. ♪ year, i am sorry about that.

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♪ i wanna hold your hand stuart: it was food. just only song which the beatles translated to foreign language put out as a record. ashley: what language? stuart: german. ashley: the language of love. stuart: so i can not sing it. liz: you will sing it for us. stuart: check the big board, for heaven's sake. we're coming back a little bit. down 110 points. we were down 200. i think we can say we're coming back a little bit there. sales down at red robin gourmet burgers. that means the stock is down big-time. 18% lower for red robin gourmet.

sales and profit fell short at wynn, the gaming company of course. less money from macau. that is a big problem. our next guest who is clearly no fan of tesla's founder elon musk. our guest calls him a jerk, that is his word and he says he shouldn't be the ceo. jeremy owens is with us, market watch san francisco bureau chief and technology editor. big smile on his face. now then, jeremy -- >> thank you for having me, stuart. stuart: he wasn't a jerk own the call yesterday. far from it. he was apologetic. he was somewhat contrite. have you changed your opinion of him? >> well i think he did a really good job yesterday of coming back. we called him a jerk after the may earnings call where he was very mean to analysts. he took the time last night to apologize individually to each analyst he was mean to in the last earnings call. that goes a long way to

re-establishing credibility with wall street. stuart: jeremy, are you so thin-skinned that you can't take a little agro mr. musk? you are thin-skinned? >> i'm not thin-skinned. he didn't come right at me but he was very mean to everybody on that call. and this is kind of the thing of, he has been mean on twitter to other journalists. these are things that endanger the company unnecessarily. these are fights he doesn't need to have, especially goes on twitter calls a thai diver a pedo. these are things he doesn't need to do to bring the company where it needs to be. stuart: you saw the financial results, what do you make of those, not in musk, the financial results? what do you make of them? >> they're still burning a lot of money. they're still losing a lot of money. everything is still promises. we'll see over the next half of the year if he hits profitability targets he is setting right now. he has not always been great

living up to what he says. if he is living up to the profitability targets he is showing something. that needs to be sustainable and moving forward. we still haven't seen what has been promised. we hear promises. the next two quarterly results will be huge for the future of tesla. stuart: do you think tesla will be better off with a different ceo? >> i think elon is more suited to cto position, or head of design, something where he can push the cars forward without having to set the agenda and be the one who makes the very important comments that the sec looks at because he does kind of come off-the-cuff and that is not a great thing for a ceo and when tesla almost sold to google about a decade ago, they put in there elon would run the company until the model 3 got up to volume production, that leads me to believe that could be the first mark he could say i gotten the company where it need to be. now i step aside. stuart: i don't know of any

other ceo who has been so on the job and focused, him personally. the man lives at the production factory, or he has for some time in southern california. you don't see that very often, do you? >> no. it is actually northern california. up here in fremont. stuart: yes. >> he is so in the middle of all of the production. and that is the thing is, he is making promises, trying to change the way cars are produced. so he has to be there to make sure it is done correctly. that is the kind of set-up can set up a company for future success and he might have done that as long as it is run in a way that can produce profits and be sustainable going forward and you know, we've seen it with amazon now, they put so much money into the business and investors were very angry and they got to a point they could rouse profits because they cut costs. they put up $2 billion worth of profits. tesla is the same kind of story. we have not seen the results yet. they promise it is coming, that

this is the inflection point that they produce solid profits every quarter. we'll see the next six months to a year if that will actually come true. stuart: it is interesting that the market is buying the story. up 8, 9% on tesla this morning. you don't often see that kind of gain from a company that size. jeremy, thanks for being on the show. we appreciate it, sir. >> no problem, stuart, thank you. stuart: i have to get to venezuela. we keep talking about this but we have milestone here. the president there, maduro, he has made a stunning admission about the economy in venezuela. what did he say? liz: our production models we tried so far have failed and responsibility is ours, mine and yours. he is basically saying socialism has failed. this is a stunning admission, you're right, stuart, it is shocking. they nationalized practically everything including grocery stores. they didn't nationalize restaurants. they have hyperinflation on level of zimbabwe, weimar

republic. 24-pounds average how much people on average in venezuela have lost. 80% of the power in caracus was cut this week. airports were shut down. traffic lights didn't work. imf saying food and medicine are gone in this country. people are starving. maduro saying enough of whining, we need to ramp up oil production to 6 million barrels a day. it was cut to 1 1/2 million. that is his answer. he is not talking about free markets. we have yet to hear from bernie sanders or alexandria ocasio-cortez. clearly this socialist model utterly failed. it is in collapse. it has collapsed. stuart: i think you're right in saying that. there is no food and medicine. it has collapsed. well-said. walmart, facing a lawsuit from a silicon valley tech company. i don't know what this is about, ash? ashley: all right. about a company in silicon valley that worked with walmart a number of years on a project

to preserve fruit and vegetables freshness. they devise ad way to do that. walmart worked with them but then for some reason dropped their association with zest labs out of silicon valley last november. six months later, walmart comes out with its own eden technology. zest labs says wait a minute, you stole it from us. they filed a complaint of $2 billion. that is our technology. we worked with you for a long time. do not pretend otherwise. walmart says we look forward to seeing you in court as they do. stuart: wells fargo. they have reached a 2 billion-dollar, billion dollar settlement with the justice department. all right, i don't know what this is about but -- ashley: another big financial hit. they already paid out a billion dollars in april over claims of improper mortgage and loan lending practices this one goes back to the days prior to the financial crisis. they're going to pay a

$2 billion fine for allegedly misrepresenting the quality of the loans for mortgages that it made and sold and were bundled into those assets, those bundlers of assets. we should note they did not admit any liability but they are paying $2 billion. a big problems with these loans was misrepresenting the income in order to secure the loans. in those days, as you remember, people were putting down anything, and it wasn't verified. these loans were rotten and wells fargo paying 2 billion, to get that behind them. stuart: well they apparently got it behind them. now the market knows the 2 billion-dollars number. the stock is actually going up. it is around -- ashley: on top of fake account scandals and everything else. stuart: the stock is going up. look at apple. it is getting closer to $207 a share. if it hits 207.04, that is the precise number apple is worth a

trillion dollars. nice gain today in otherwise down market. it is up 2%. $4 higher. 205.63 as we speak. how about this. tsa may get rid of passenger screening at 150 airports around the country. no security, when you get on the plane, that could be recipe for disaster? is it? may be. we'll tackle it. the nfl, it is scrambling to get a anthem policy in place ahead of tonight's preseason kickoff. it is tonight. jason whitlock on that one. he is is next. ♪

♪ ashley: hhs secretary alex azar told us last hour for the very first time in years the pharmaceutical industry is becoming more transparent and accessible thanks to president trump's policies. >> under this president we're seeing 4.1% gdp growth, given the president's pro-growth agenda, the deregulatory actions of his administration, the tax

cuts that he has brought to the american people, the money that has been put into their pockets, we've seen two pharmaceutical companies decrease the price of their drugs for first time i ever can think of. six companies planned to do price increases, they filed notices they would increase drug prices, say they would not increase. 12 drug companies say they will not increase drug prices at least for rest of this year. while we're working to make the system more transparent. we're bringing negotiation to drug prices. ♪ until the day you leave for your trip. add-on advantage. only when you book with expedia.

stuart: look at apple. getting -- look at that. now apple is now worth $991 billion. that's awfully close to the trillion dollar mark. yeah, apple is having a great run this morning. it is up about 2% almost. it is around $205. two more dollars up and that thing hit as trillion dollar valuation. wait until you see the graphic we've got ready to go. i hope we get to use it. the price of gold down four bucks at $1222 per ounce. check the price of a single bitcoin, $7549. down just a fraction today. now, sports. the nfl preseason, can you believe this, preseason kicks off tonight bears versus ravens however, the nfl has not resolved the anthem kneeling issue. we're two years in, it is still

going on. host of "speak for yourself," jason whitlock. give me a prediction. what is going to happen tonight? >> tonight we'll see a lot of lamar jackson and rgiii. i don't think we'll see any pregame national anthem protests. i think that has been put on pause as the nflpa and nfl owners try to work out some sort of agreement. stuart: that is progress. >> i don't think anybody will happen on the protest front. i think a lot will happen on the quarterback front. stuart: but that's progress. if you don't see any action on the anthem front, frankly i expect it. v ratings to be very ratings will be very strong. people tune in to what will happen with the anthem? >> people will tune in to see what happens with football. i think, look, it is the greatest time of the year, the beginning of football season. this is the first great many of the year. i think people will be excited to see lamar jackson a great young quarterback, people want to see how he will transition

from a college quarterback that ran the football a lot, can he play from the pocket? he won a heisman trophy at louisville. i think there is a lot of excitement about lamar jackson. people will want to see him tonight. stuart: what about dach prescott, dallas cowboys quarterback, he defended comments on the anthem issue. he got a backlash on social media he said the anthem isn't the place to protest. what do you make of this? he is african-american, comes right out there, says i'm with jerry jones? >> i think what dak did and said was very courageous because he will face a lot of social media backlash. he is playing to the real world. i don't think social media is the real world. i don't think it is representative of how most americans feel. it's a small niche that the media is addicted to. we're addicted to twitter. whatever is trending over twitter. but i don't think it is reflection of how most of

america feels and i think what dak has said, what most football players feel. it is only small handful of players, varney that want to protest during the national anthem. most of guys want to work in their community on their off days, help their communities move forward, take the wealth that they acquire playing football, and affect real change. there is a handful of nfl guys that want to play the social media and do meaningless gestures that are divisive and don't really do anything other than tap into people's emotion. dak prescott is on solid ground. do things that affect real change. stuart: i'm with you, whitlock, all the way down the line. get back to normality. play football. before i let you go, tiger woods and phil mickelson will go one-on-one thanksgiving weekend in las vegas. i'm told the prize will be

$10 million straight. who do you pick? >> i probably pick phil mickelson but, i got to be honest, i am a tiger woods, homer, groupie, hardcore fan. i don't have any interest him playing one-on-one with phil mickelson. i want to see tiger woods play the pga championship. i want to see him win a major. i want to see him in the bridgestone this weekend. beating phil, damn near 50 years old, i could care less. stuart: what do you mean, damn 50 years old. don't put people down. >> i'm 50 years old. i'm washed up just like phil. stuart: just like me. the way you put it, i'm not washed up whitlock, you get that straight. >> you're not washed up at all, varney. i was commenting before the show, on the air, i love the new haircut. you look great today. stuart: the haircut.

that was good. man you're smooth. really smooth. give you that one, lad. come back soon. >> i will. i will come back tomorrow if you want me. stuart: if you are not careful, we might, lad. jason, you're all right. we'll see you again soon. new study says robots will actually create more jobs than they destroy. study done by mit of all people. at the same time two of the biggest rhee tailers say they will automate more store tasks, i should say. in other words, getting rid of labor replaced by robots. moments away, we talk to someone who says there is no need to worry about the robot revolution. let him make his case. he will be with us after this. ♪

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stuart: apple please, four 1/2 billion away from a trillion dollar company. it has to hit 207.04. when it does, you know it real fast. an mit study suggest robots will create more jobs than they

destroy. bill studebaker is with us, roboglobal president. a big fan of robots. come back at you with this. walmart and target are using automation to get rid of workers on the shop floor, robots getting rid of jobs. make the case that robots create jobs? >> well i think it is simply the case, stuart, what you're seeing with robots, there is a lot more collaboration going on. in the u.s. we have the notion of fear the robots. but everywhere else in the world it embraced robots because robots are driving higher productivity, driving higher inovation. they're bringing more profits. so you're seeing this. so companies like target and walmart understand the need for innovation. they understand the need for better productivity. why they're rolling up more robots into their system. target is rolling out 2000 cash counting machines. they want to move employment to higher value added. move to the customer.

walmart is rolling out, you know, inventory analysis robots throughout all of their stores. so that is really what is happening. it is exciting time to be an investor and consumer. stuart: seems to me robots get rid of a whole class of low-skilled worker but, do they create a new class of higher skilled worker by robots? i mean, how does that work? what do the higher skilled workers come from? what do we do with the lower-skilled workers who don't have jobs because of robots? >> fair point. i think what we've been seeing throughout history, we've been innovating, moving up the migration. we've been automating for hundreds of years. 25% of the jobs that exist today, did not exist 25 years ago. it is almost impossible to predict what some. new jobs are going to be. you're seeing this. again we're moving from a lot of the automation is around automating tasks, real mundane

tasks, moving into more creativity. that is where the opportunity is for employment. we need to change our education system to be able to give people better and more opportunity. and so i think this all goes hand in hand. we're really seeing, i think benefits of automation far outweigh the disadvantages. stuart: okay. sir, we are very short on time because we have apple approaching a trillion dollar valuation. so i will cut it short, bill. see you again very soon. that's a promise. appreciate it. >> sounds good. stuart: i will editorialize on this in a moment. millenials get often a bad rap, people call them entitled or lazy. i think they deserve a little bit of credit. you will hear my defense of this often-mocked generation next. ♪

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stuart: you know it's almost a tradition, the older you get the more likely you have to criticize the next generation, maybe that's baby boomers like myself spend time mowning about millennials. you heard it, they are entitled, live and mom and dad till they are 30 and beyond, they are pot heads, they are lazy, they won't take construction jobs because they don't like getting hands dirty, they live on smart phones and rejecting beer for heaven sake and worst of all they are socialists, it's so easy isn't it? it wasn't like that in my day. when i was a lad -- i admit it i said it. i will change my tune, this program is brought to you millennials, we are the most watched business news program in america and if it weren't for millennials we wouldn't be on the air, millennials like on the camera and certainly wouldn't be

as successful without them. our production meeting is held at 5:50 a.m., imagine that, a dozen people in the 20's and early 30's arrive at the crack of dawn and they are never late and they always have bright ideas that keep olders like myself up to date and youngsters out the door and devote themselves 24/7 to their work. i think millennials deserve more credit. a round of applause, please. [cheers and applause] stuart: with their help the third hour of varney & company will roll on. ♪ [laughter] stuart: all right, now is a millennial, between -- liz: not us.

stuart: 22 to 37, that's the millennial cohort, okay. susan li is with us along with ashley webster. liz: we are not millennials. stuart: i do think that millennials get a bad rap. >> they do. stuart: you do? >> yes. i want to know what changed your tune all of a sudden. stuart: the people who work for us. you guys don't attend the meeting, you don't have to, we welcome you if you want to but at 5:50 a.m. -- ashley: no they wouldn't. stuart: crop of youngsters arrives always on time. >> enthusiastic. lots of bright ideas. they are funny too, by the way. stuart: some of them. [laughter] ashley: it's easy to pile on because you start blaming all ills in society on one group, it's very easy to do, it becomes almost self-filling. stuart: i bet you've done the same thing, these youngsters, it wasn't like that in my days.

>> yes, we work so much harder. stuart: we did. >> life was more difficult. [laughter] stuart: welcome to the show, good to see you, millennial, i know that you're a hard worker, let's get to your money, something serious here. dow industrials are down 140, 150 points as we speak and the vast majority of the dow 30 are in the red, they are not going up, they are going down. tesla, burning less cash investors like that and elon musk was very apologetic on the call last night and investors really like that one. so the stock is the stock of the day, up 9%, $27 higher for tesla. you have to look at apple, yes, it is closing in on that prize 207.04 if it hits that, it's worth a trillion dollar market. liz: got within 60 cents about 15 minutes ago. ashley: 40 something cents. it got closed, for some reason it backed off. don't let varney use the

expensive graphics. >> analysts say there's a lot more to go in the stock because we will hit net cash neutral. stuart: wait a minute. millennials -- cash neutral, what's that? >> they are giving back a lot of money. okay. [laughter] >> so they are giving back a lot of money to investors and buying back a lot of stock, right, they are using the $240 in cash stockpiles around the we get to net positive or neutral, you are buying more stock, withdrawing from the market, values go up. stuart: taken 85 million shares off the market. liz: what's interesting is the big debate in wall street is how wall street is undervaluing apple like sleepy insurer like aetna and should be valued like computer gross company.

stuart: 205 right now and we are waiting with the graphic. [laughter] stuart: you better check cbs, they report numbers after the bell, the important point is that embattled chief les moonves will be on the conference call. tune in at 4:00 on fox business network, you will get the cbs earnings conference call. you will see the numbers, we will cover it completely and hear what mr. monnves has to say. the trump administration will freeze fuel industry standards for car fleets, california and other states are likely to challenge this but let's move on from there because steven malloy is with us, junk science.com founder, author of the book right there, scare pollution why and how to fix the epa. come on in please, we have the freezing of mileage requirements, president obama wanted to make the fleet corporate fuel efficiency average 54 miles to the gallon in 2025, mr. trump says, no, we

are going to freeze it to 2020 levels at 37 miles to the gallon. my question, steven, why do we need mile fuelage mileage standards, why? >> we don't anymore, they were implemented in 1970's when we had arab oil embargo and people panicked. fast-forward more than 45 years, we are wash in oil. we don't need standards anymore. we should allow consumers to buy the cars they want. what the trump administration is doing is going save consumers a lot of money, average of $2,500, save a thousand lives a year, 12,000 lives by 2029 which is the scope of this rule-making. you know, the obama rules were not going to improve the weather, improve the climate, prevent any storms or improve air quality, it was just all pain and no gain. stuart: epa, environmental protection agency has come up with rules of pollution over the

last few years, you've written a book about it and you want to fix it. do you believe that a lot of the rules and regulations should be withdrawn and toned down so to speak just like we are doing with mileage requirements? >> absolutely. my book documents the scientific fraud that the obama administration use today virtually destroy the coal industry and the same sort of science is now going to be applied by the states and environmentalists when they come after the trump administration on the fuel standards, so, you know, there's a lot of improvement that needs to be done, epa and it started under scott pruitt and continue under andrew wheeler and i'm looking forward to reining the epa. stuart: do you think this is going to happen? this is some, well, we are going to try to do this, you're saying mr. wheeler, the new guy at epa, he will do it, he will get it done? >> it's already happening. first off, i don't know whether

it was noticed, biggest improvement, epa hasn't issued any new regulations since president trump took office. andrew wheeler from first day he started to, you know, roll back overregulation, it all takes time. epa regulations have built over 45 years and a lot of corruption and deep state and bad science and all sorts of bad things going on in epa. it's going to take time to unwind, i think mr. trump will need a second term. [laughter] stuart: we are making progress, i think you won fans with that comment. steven malloy, we will read your book. >> thanks, stuart. stuart: the bank of england has raised interest rates for only the second time in a decade, ashley, why should i care? ashley: well, that's a good question, it's interesting, it just shows you they have gone to half a percent to three quarters of a percent which has caused a huge stink in the uk, the housing market especially in london is hurting, household spending is very erratic in the

uk, now you are going to raise rates, let's be honest it's up half percent to three quarters of a percent. i will say, though, many people in the uk, more than most have what they call variable tracker mortgages, arms you call them in the united states. stuart: they move monthly. ashley: they do move monthly and this will have impact no doubt. it will get more expensive. they don't like it. stuart: mortgage payment every month goes up. it goes up now. >> does it lift the pound? stuart: who cares. [laughter] >> i lived in england, london for six months. i have some currency there. stuart: remember this, enormous land undeveloped land in los angeles, 157 acres, on sale for a record setting asking price of a billion dollars. overlooks all of beverly hills, today we have the listing agent with us, i'm going to put it to

him, this is a marketing ploy, putting a billion dollar price on that marketing, major change in the way you travel, tsa now considering eliminating security screening at more than 100 airports, we will discuss. we have guest coming up who says president trump use the strong economic numbers to ensure victory for the gop in the midterms. that's what we want to hear. stay with us. it's the third hour of varney & company

stuart: president trump heads to pennsylvania, another of those big rallyings for senate candidate in pennsylvania congressman, blake berman you come on in. i want to know is this going to be another giant campaign style

rally? >> it is, indeed, i think you will see a lot of what the president had in florida other florida just the other day, by the way he goes to ohio, florida, pennsylvania, ohio, you know the consequences there, lou is who the president will be stomping for later this evening. one of the president's earliest supporters when the president was running for office back in 2015, 2016 the president will reciprocate that. trying to unseat two-time senator, when you look at pennsylvania, pretty interesting, the sixth previous presidential races they went democrat, president trump flipped the script in 2016, all the polling leading up to that suggested that hillary clinton would win the state and we know what happened, the polling leading into the race, there hasn't been a lot of it but all shows publicly casey on top, barlett action says the poll

asking narrowing and that president trump could make a difference potentially, we will see the president in pennsylvania later this evening, stuart. stuart: got you, blake, thank you very much, indeed. it's about time we brought in pennsylvania congressman and senate candidate, there he is, the man himself. sir, you heard that about the polling, the poll that we have comets from june and puts mr. casey 15 points ahead of you. now you say that these polls are narrowing, give us your evidence, please. >> well, again, they are internal polls and the evidence is when we go back to 2016 when at this time in 2016 the polls said that donald trump had no chance of winning pennsylvania, that hillary clinton was -- was a lock here and all the while that's not what we saw on the ground and, you know, i told the president himself just two weeks before the election when the polls said he was down by 6, two weeks before the election, don't believe the polls in pennsylvania, you are going win.

stuart, pennsylvania has now trump democrats who are not going to answer any polls on who they are going to vote. they are not disappointed by the job the president is doing, in fact, the opposite and you will see tonight by the amount of people they are already lining up at the arena this morning for -- for 7:00 o'clock rally. stuart: lou, i would like your response to something -- i'm sorry, just referring to something on the left-hand-side of the screen, shares of sonos started trading, they did ipo today, they make wireless speakers, they make equipment from music streaming. that's what they do, i believe ipo price was 13, they start today trade, i'm sorry, 15, they started trading at 16, they are up about 6%. so a good start for the latest ipo. back to congressman barletaa, come back in, the mayor of

philadelphia, philadelphia pennsylvania, he won't renew contracts with ice, ice agents won't have access to real-time data, what is your approach to that because that's pennsylvania? >> well, i was a mayor in pennsylvania that was sued by illegal alliance for enforcing immigration laws, and the very first thing i did when i got to congress was to introduce a bill that would punish sanctuary cities, i feel bad for the law enforcement in philadelphia who will deal with the consequences of the irresponsible decision and the people in philadelphia that would become less safer because of it. stuart: you were sued by illegals because you enforced immigration law? how did that turn out? >> well, you know, it helped other cities across the country, the illegal aliens that sued up had asked if identities could be confidential which he granted, i

wasn't allow today ask their names and they were in a country illegally and they didn't wanting to to federal courthouse at fear of being deported, i never saw accusers, we lost in district court, went to third circuit court, we lost there, i appealed to supreme court, the state of arizona used half of our ordinance and they won supreme court decision, free freemont, nebraska also won. it's legal in ninth circuit and eighth circuit it's just not legal in the place that it was created. stuart: we will be following you and the president tonight for the big rally, we will see you again later, lou barletta, tonight lou dobbs, special coverage of president trump's rally in philadelphia. watch it right here. look at this. i think that's the accurate collective noun for kangaroos.

mobs of kangaroos, food shortage. residents are taking to social media, sharing pictures of kangaroos just about everywhere, mobs of them and that's correct dramatic increase. backyards, soccer fields, here is the thing kangaroos are at risk because feeding time is around rush hour. ashley: not good combination. stuart: australian story of the day. up next jeff flock is at world's largest yard sale, did you hear about this, 700 miles from michigan to alabama, we taught them to go shopping and finding funky items, you can always trust flock to do something like that. what do you think that is? we will be back. two, down and back up.

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surely in 700-mile yard sale you can find something interesting, go. [laughter] jeff: oh, okay, fine, your farm, what do you think, how about that? you wouldn't have to have a horse for this. that's an old plow, as you get old, by the way, you might want to invest in that sort of thing just so you have it later. don't get on this or you'll be on that thing very soon. [laughter] jeff: actual pogo stick, originally made one, look, you can get everything from -- this is a whole bag of ducky coys. you can go out hunting. stuart: can you hear me, jeff? jeff: yes. stuart: that's the first i've heard of this. >> i have to tell you, i didn't neither until i heard about it this year, it's called 127,

route 27 and for 700 miles almost people come out of their houses, people come to the fairgrounds to sell stuff, here by the way, if you go hunting with cheney, this is what you want to wear if you're out with cheney. [laughter] jeff: how much is that, by the way? 35 bucks. there you go. [laughter] jeff: i could go all day here. stuart: all right, jeff, that's remarkable. i know you find interesting stuff but the idea of 700-mile yard sale really turns me on. i wish i had heard about this. my colleague ashley webster covered it a couple of years ago in tennessee? >> yeah, down in chattanooga. liz: where does it stretch from? jeff: starts in michigan to alabama. stuart: jeff, we will be back to you. that's a promise. producer is in any -- my ear. up next the man who says president trump will use our

strong economic numbers to ensure victory for the gop in november, he's going to make his case on this program very shortly all right next city that we bring to you, where do you think that is? any ideas? liz: orlando. stuart: orlando, florida, okay. ♪

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stuart: when we opened the market this morning we are down 200 points, negative trade headlines that hit stocks, we are coming down a bit, 120. we have to keep close eye on apple. ashley: at one point it go to 30 cents. oh, my goodness. stuart: if it gets to 2007-04 it's worth a trillion. so it's close. we promise to break in with all kinds of good stuff. our next guest says president trump will, yes, he will use the strong economic numbers to ensure victory in the upcoming midterm elections. keith is with us, white house dossier.com editor-in-chief, sir, do you have inside knowledge here that the president will categorically, yes, he will use the strong economy to win in november?

>> you know i'm going to do a rare thing and say that actually i do not have specific inside knowledge on that, it's my deduction of really more about what he should do and what he needs to do. stuart, the interview is over. [laughter] >> actually i really -- i don't know anything, actually. i'm glad to be here. glad to be here, no, you know, listen, if you look at the exit polls in 2016 there were a lot of issues in the race obviously immigration, cultural change and so forth, still the biggest issue is still the economy, 52% of people in the exit poll cited the economy as most important issue, it's still what's on everybody's mind. trump has to go around and make 4.1% which was the growth rate, he has to make everybody understand that that's what's happening and the economy is good. one quick thing, it's important how he does that. he has to just oppose it against what is going on on the other side, they are talking about

socialism, they are talking about massive tax increases to pay for and these are not just outliers, the woman ocasio-cortez who was elected in new york, they are trouting her around the country to talk about it, there's bernie sanders, he has to just oppose this and say, hey, insight fear in his base, get his base out, do you want to go back to that, do you want to have that, that's how he has to do it. stuart: i think that's exactly what the president will do. stay there for a second. i want to bring in someone else, the headline reads, the gop's mirrors for republican lost inside the trump fun house a message, run on his biggest victory, dan henninger, wall street journal kind of guy, he's with us today and he wrote the headline. so you're saying he should run on the economy because that is his biggest victory? >> wait a minute, stuart, is trump running for reelection in november or -- stuart: the gop. >> the gop, 345 individual house

districts, some of which, the ones on the bubble, the democrats need to win 23 seats and some of the republicans are running in districts whether it'll be decided by 2 or 3 points, right, so they need a strong issue to run on and i'm arguing that there is a school of thought that says they should run on the entire trump agenda, but trump's presidency as i see has been hall of mirrors lately. one day he says he's going shut down the government privately, he says he won't, he's going to invite vladimir putin to come visit during the midterm election, then he says he won't, he tweets that the kochs are the joking even though they are supporting a lot of republicans desperate for money, the only person in the country who can run on that is donald j. trump but the individual republican should run on his greatest achievement which is the booming economy. it is unbelievable after eight years of stagnant obama economy

people were losing hope within 18 months the presidency has produced extraordinary economy stuart: but the individual gop candidates should push forward as trump as their guy, it's trump that they are doing this. >> they should attach themselves that trump presidency has produced the booming economy, even the fed chairman jarome powell everyone who wants a job can now get a job. stuart: keith, back to you for a second, the gop is now closely aligned with president trump, its trump's party by any other name. local candidates in forthcoming elections, you think they should identify closely with president trump and the success of the economy? >> not only should they but they are going to have to. o'neil said all politics is local but trump is in every locality. he dominates the news, he's there all of the time, they cannot separate themselves from him if they want. listen, even beyond the economy,

it's not going to be such a bad thing. how long did people talk about in 2015, 2016 how trump was saying all crazy things, he wasn't going to get elected, yes, he's part of it and he will need to be there to gin up the base, remember, democrats have advantage in that their base is excited, the only one who can get the republican base out is donald trump, so economy first, but they'll be other issues that he needs to emphasize, mike pence, you know, wonderful guy, love him, he ain't going to bring out all of the base gop basers, it's got to be trump. stuart: you'll see a lot of voters coming out tonight in pennsylvania, the president holds campaign-style rallies, i'm sure he will wow the crowd. dan henninger, keith, both of you, thanks for joining us this morning on a busy day, it's busy because if you look at the left-hand side of the screen you can see apple, 206.81 current quote on stock price. if it gets to 207.04 it's a

trillion dlear company. liz: when steve jobs handed over the reins it was valued 160 billion, mr. cook has done awfully good job, $640 billion of market value. stuart: 12 cents away. ashley: 93. stuart: i will have to tap dance, i can use fancy graphic and balloons and everything. ashley: makes you wonder how much algorithm plays into this? is it a big selloff or does it really mean anything? stuart: it's got very close 207.04. algorithms are reading headlines, sell it before it hits there. liz: it was $4 at share, that's the ouch moment of the day. stuart: no, i have a better one, my kids told me to buy apple when it was $12 a share and i didn't. ashley: no.

[laughter] stuart: dan henninger -- [laughter] >> twelve dollars a share, you wouldn't have to be working. [laughter] liz: we are 14 cents away. stuart: okay, i think we have to move on, where am i going to producer, please tell me? okay, let's do tiger and phil. ashley: let's do that. stuart: we will leave apple up there. tiger and phil will play each other in one-on-one -- ashley: they should be playing for shares of apple. november 23rd or saturday november 24th, thanksgiving on a thursday, thanksgiving weekend. it's going to be at shadow creek golf course in las vegas, that we do know, they are not saying how much the actual purse, the prize will be although it's being reported maybe up to $10 million, match play winner takes all. it's interesting, you know, nick is 48, tiger woods 42, there's been a lot of strain in

relationship, apparently it's all mellowed recently. no matter what the money when you are playing for 10 million that gets you out of, quote, comfort zone. the way tiger is playing right now i will go with tiger. stuart: lizzie, do you have any input on golf? liz: i am on learning mode in soccer. i would like to keep quiet, i don't like to talk about things i don't know what i'm talking about. sorry, that's a new one for you. stuart: excuse me. [laughter] stuart: 9 cents away. ashley: come on. stuart: dan henninger who do you like? >> two competitive guys, it's going to be a great match. i will go with tiger. [laughter] stuart: very close. >> the market is down 100 points, something is pulling it back. there's such a big part of the

market. stuart: apple is driving the dow higher. ashley: we were down 200 points. stuart:st up 5 bucks, that contributes quite a lot to apple's price, i don't know what to say. >> exciting. stuart: that's good, you want my job? i have to be the commentator. ashley: come on. i need 5. stuart: i'm not allowed to go to commercial break until we hit -- we are half billion away. ashley: that's nothing in apple world. stuart: 207.04 is the price we've got to get to. >> we are at 206. liz: apple has made a lot of millionaires. stuart: not me. ashley: you're not a bitter about it. stuart: i'm an idiot. i have another story about missed opportunity, you remember the stock, the company called national semi? ashley: no. stuart: okay.

short for national semiconductor. ashley: i remember that. stuart: old colleague and friend of mine walk intoed a brokerage office, this is way back in the 70's -- ashley: with a parrot on the shoulder. stuart: my friend said, no, i don't want to invest in trucking company. [laughter] stuart: technology stock, that person would have made a fortune had she got into it. 206.99. this is, this is the moment. who is going the pay 2 oh 7.04. who is going to do it? liz: dime away. stuart: 10 seconds to go. ashley: a belief out there from the analysts this is up, up and away. stuart: nicole at the new york stock exchange, come on in, please, describe the atmosphere surrounding apple. >> first of all, tech is hot again, there's certainly that feeling of this great feeling of

get to go this point, 207.04, $1 trillion, the first one ever and this obviously marks the huge, huge success that we've seen for this obviously rule and you could see right now it's up 2.6% at this time. the apple store killing it. stuart: well done, i have to tap dance for 30 seconds and you took the 30 seconds, very nicely done. nicole: i have all the stats that i'm trying to quickly read to you at the same time. stuart: we just want apple. [laughter] stuart: buy some apple, somebody and get me out of the mess. 206.90. if the program kicks it in. ashley: breaks through the next resistance level. we are talking cents here. stuart: how many investors does it take investors to get to 204, you have history for me, nicole?

>> the first company that hit 1 billion, not 1 trillion, 1901, u.s. steel, 10 billion took over half century before a company manage today reach the 10 billion mark, that was general motors hit the milestone in 1955. 500 billion, microsoft, your beloved microsoft, first hit that half trillion mark in 1999 and now we are up to this one trillion dollar mark and it's so close. some people were saying it's amazon, could be amazon, microsoft had a beautiful run, right now we are at pennies away from $1 trillion for apple. stuart: all right, nicole, i noticed that it got to 209.90, went back to 206.77. liz: premium higher prices with the iphone 10.

iphone sales were up 1% year over year but they made a ton of revenue, when we dig into the sec filing for apple's recent earnings, look at this, their quarterly tax rate for the june quarter drop today 13.3% from about 22 -- 23% a year ago, so it's gop tax cuts. stuart: gop -- that's why it's close to a trillion. come on in keith joining us on the phone, please. if it hits 207.08 would you sell it? ashley: good question. stuart: keith did you hear me? >> oh, yes, i'm sorry. this is a very exciting time for the company. here we go again, i think that, stuart, the company could double yet again when it shifts away from the iphones and i pads that have driven it to where it is today by the echo sphere and the shift to medical devices and you're seeing already in the

iphones, the boost in margins contributed distinctly to the profits, i think that happens again as the company's infrastructure becomes more important and more valuable to society. stuart: repeat that, please, what's the time frame for apple doubling stock price again, what's the time frame? >> well, you know, stuart, i'm still working that out, i'm working on the back of the envelope, you know, the higher priced iphone, the shift in product profitability is what's going to drive the next move. again, a lot of people didn't think this was possible when i said apple a year at 99 bucks and nay sayers said no way -- >> 50 boats. stuart: i don't know what's happening there, intrusion of other vocals coming in there. i will rephrase the question to you, keith, if you're still on the line was, a lot of people say that apple should not be considered dull, should not be considered like a consumer stock, like a health insurer or

something, it should be considered rapid-growth stock as has been for many years. is that the way you look at it, keith? i think we lost -- we have audio problems. ashley: everyone wants to chip in. liz: to your point it is being valued like a sleepy steady aetna insurer company, stanley black&decker, it's a hot consumer goods company, if it was valued like them, apple would have hit a trillion dollars in market value. ashley: i didn't know -- keith has interesting point. i wasn't sure of medical devices which brings up a whole range of things, you could have pace makers that are bluetooth devices. why not? stuart: okay, another regular market watch is jonathan, he's the capitalist pig guy and he's

on the phone with us now. same question that i asked keith a moment ago, if it reaches 207, say 208 would you sell it jonathan? >> great to be with you, stuart, listen, first of all, a trillion dollars isn't what it used to be. look, it's made it, this notion of a trillion is same thing as dow 25,000, listen to me, it's the same thing as dow 25,000, dow 24,000. the question -- i have to tell you, charles -- excuse me, stuart,ic i would. this is the end of long trend of growth stock dominance in the stock market n. the last two weeks, we have seen facebook, tesla, i know it's up today, we have seen tesla take a big hit and the year of dominance of growth stock is ending, plus the fact that we are focused on a trillion, like a media event, this is a sell signal not a buy signal. stuart: jonathan, once we have you on the line, if it's the end

of days of growth stock and big tech, where is the -- where is the next group of companies, group industry which is going to show the same kind of stock price appreciation that we have seen from the amazons or the apples of this world? you know, we've got real audio problems. ashley: is he on apple phone? stuart: that's nasty. liz: i hear what he's saying. the law of big numbers. prior quarter to this, everybody was checking the supply chain, apple will miss numbers and so forth, you know what, we are looking at -- it's making a run. stuart: it's backing off again. it gets real close -- it's killing me here. [laughter] liz: tim cook is saying, it's complicated stock price, you can't take one check of a supply chain and say, we are going to

miss our quarter, right, that's what he was trying to say. stuart: hold on a second, did you just say when tim cook took over as ceo apple at that time was valued -- did you say -- >> 360 billion. stuart: when tim cook took over, 2011, 7 years ago. now gone from 360 billion to -- ashley: 97. 207. liz: tim cook did -- stuart: hit 207.05. we have trumpets. we confirm that, it did hit it. there it is. confetti on the screen for radio listeners, why not? it's pulled back, of course, immediately, you get the sell signal when it hits the mark and back to 2006.64, so what, the thing is worth a billion shy of

a trillion dollars and it is the first company in history to reach that valuation, however, i should tell you that for one brief shining moment a company called petro china did hit a trillion dollar valuation on the day when the stock was introduced on the shanghai exchange, i think that was 2007, so for a brief moment another company hit a trillion. ashley: so the second? stuart: i guess you could say the second. ashley: technically. it's interesting how it's baned back as soon as it crossed the line. stuart: yeah. what astonishes me, dan, is the five big technology companies are american technology companies, we should not forget that. and let's -- excuse me tip our hat to perhaps one of the most famous of all american tech people and that's steve jobs looking down from tech heaven. apple the iphone has gotten to this point because he created a very cool company and it just didn't happen, the design effort that he put in first to mac and

then to phone is a large reason why apple just continues to be a go-to product for people. steve jobs saw the future and he would be so thrilled his company hit a trillion dollars. stuart: extraordinary visionary when you really think about it. that guy produced these things, the smartphone which are truly revolutionizing. ashley: tim cook gets more credit than what he really gets, look how much the value of the company has gone up. stuart: he steadied the ship, didn't he? nicole, you have a nugget for me from the new york stock exchange? >> this feels like dow 10,000, i mean, i think this is a monumental ground-breaking moment to have a trillion dollar company but i was thinking that maybe they used some of the $250 billion on hand, bought up a few shares to push it right over the top and don't forget in january they said they would contribute $350 billion to the u.s. economy over the next 5 years because of the tax

adjustments so let's see if they do that, but the trillion dollar company first ever ground-breaking move here. unbelievable. stuart: to remind viewers, it did hit trillion dollar mark, ever so briefly. ashley: 207.05. stuart: it did hit the mark and straight down, not exactly down, 206.24. jack hough on the phone? >> i am with you. stuart: your comment, please. >> let's talk crazy for a moment because this stock, remember when it was trading at deep discount in the market relative to earnings, it was down around 12 times earnings for a long time, i'm looking at it now, suddenly 17, 18 times earnings, bordering on market multiple. that doesn't count the cash, let me just say this, maybe just

maybe apple is a company that deserves to trade at a premium multiple. it's not the fastest grower on wall street, the outlook is for low-double digit earnings growth for the couple of years. the company is looking like a utility because of retention rate for iphone customers, nobody leaves between samsung and apple, whatever you've got, you stick wit, every couple of years you go for the new phone, so very stable safe grower. stuart: hold on a second, jack, i want to ask the question see if anybody can answer it for me, you have the big tech stocks, some of which are -- some of them are worth more than a thousand dollars, google is about 1200, amazon is at 1800, apple is above 200, back in the day not that long ago a stock would split, you get to a certain level -- ashley: you don't hear that so often these days. stuart: do you have any idea why

the companies are not splitting? >> i have no idea why they are not splitting, huge mass market companies, all of the companies have market customer bases that are beyond anything ever imagined, right, half of the world owns an apple phone, now a trillion dollar company and maybe they're happy just proceeding and not splitting. stuart: do you have any answer to the question, jack, why don't they split? >> i don't have a good answer. let me barely acceptable answer which is that back in berkshire, the thinking there was they didn't want am -- amateurs and wanted steady investors and become fashionable for tech companies -- long-term growers to keep the share prices, it really makes no difference for investors in terms of value. stuart: you're breaking up, jack, thanks very much for jumping son this so fast. ashley: down a dollar,

interesting, more from when we crossed magic line, algorithms kick in. once we cross the line, sell. stuart: 205.97. ashley: still up, more than 2%. >> interesting reflection on the hyper efficiency of the market these days. snaps like that. we didn't even see it. if you blinked your eye we didn't see it happen. stuart: sometimes we complain about the computers selling, you're right, super efficient. back in the day, of course, that's not that long ago, 206.13 as it is now, 206 and 1 eight. remember that? liz: arthur who ran the sec. stuart: somebody is going to answer the following question, why doesn't uber go public so far, why doesn't airbnb go

public, why don't massive companies go public, that's for another time, right now we are discussing a trillion dollar apple. scott martin on the phone, same question to you as i've asked to you, market followers, if it reaches 207 and 2008, would you -- 208, would you sell it, scott martin? [inaudible] >> look at the most recent data that we've got from apple on earnings, my friend and that was an amazing earnings report both on the cost that they -- think of how much we love smart phones, right, and the fact how expensive those smartphones are getting, apple has got us. apple has got us paying top dollar for the phone and they know we will continue to pay top dollars for great technology that they put out. also apple service revenue was very good, yeah, sure, there's still a hardware -- they have to

ecosystem brewing but they also have service revenue -- stuart: scott, you've hit the nail on the head because i looked at the earnings report from apple and i looked at the earnings report from samsung, now, samsung is not selling its top of the line, i think galaxy s, they are not selling very well. ashley: no. stuart: apple iphone 10 at huge price is selling well. seems to me like if you're going to put your hand in your pocket for expensive hand phone you will only do it at iphone. ashley: customer loyalty for apple products is remarkable. people are prepared to do it because they love the ecosystem. >> you get rewarded with a good product. stuart: why don't i move out of the apple ecosystem and go to microsoft whose shares i own, why don't i do that? ashley: you tell us. [laughter] stuart: i could never transfer to a new phone or new computer.

i wouldn't know how to do it. liz: people are creatures of habit. stuart: scott martin, you are getting garbled up but go. >> two great companies that we own for client, they almost coexist because some of the companies whether it's microsoft on the cloud do very well, iphone with the apple and hardware, i mean, you can still kind of play with both of those companies even if you want to say you want to buy or own the two because you can have services or say hardware in the case of apple with both. so they've done good job of raising cap. they're not -- a lot of those realizing how big the world is and how much customer there is out there. they found a way to work together. stuart: we hear you scott martin, for viewers maybe just joining us, just tuning in apple did hit the trillion dollar valuation mark. it happened about 5 or 6 minutes

ago, it actually hit 2007.05 which put it just above the trillion dollar valuation. it's pulled back a little bit. liz: it's amazing because a few months ago we had experts on the show saying they don't have a speaker that can compete with, you know, amazon's alexa or good tv streaming strategy, right, but they did it all without it because they said, listen, if we are going to do apple pay, it's going to make it easier to live . the fact, the fact that it is app services is booming and second most profitable unit behind the iphone is a big deal for apple. they were doing cloud, music, tv streaming in the services unit. stuart: wait a minute, ashley, you have the apple watch. ashley: i have the apple watch. i love it. do they accept it. >> click the right hand button. hold it to the device.

paid. stuart: used yesterday. >> yes. stuart: do you trust it. >> yes. encrypted. >> apple's stock is like a utility now. people, are you going to pay $1000 for every year? home insurance policy, auto insurance policy. beyond idea of a choice. people think they have to own the apple phone to make their lives comfortable. stuart: they're comfortable with it. so consistently highly rated. people should feel the brand. ashley: they were talking about the demise, the iphone x, the 10, was not selling properly. one-trick pony. blown it. face i.d. not working properly. stuart: why did you put on a upper middle class pitch iraq sent? >> that is my kind of default mocking voice. stuart: viewers came on the line

at very last minute, gave us commentary on apple with a trillion dollars. dan henninger thank you for being with us. >> fun as always. >> thanks to all the millenials make it popular. maybe allow me to switch to a microsoft phone. >> if that happens. david asman. >> come down only a bit david: i'm david asman in for charles. joan than hoenig, does this anything in the mind of what happel is or what it is worth. >> this is a arbitrary number