>> big bear hug to lindsey, mike, jack brewer. thanks to one and all. mr. varney, take it away. stuart: good morning, dagen, good morning everyone w you have to follow the real news right here. the market is on fire. the economy is booming. trade deals are being made. your money is doing very well but you got to watch it here. the rest of the pack just can't get over their contempt for this president. number one, mexico agreement. it encourages manufacturing in america. it is a political win for mr. trump and an economic win for this country. second, canada's foreign minister is on her way to washington. president trump has given them a choice, negotiate a deal like mexico or face tariff. hard-line trump on full display on trade. third, growth.

the atlanta fed raised it is forecast for the july through september quarter to 4.6%. okay, they shift their forecasts frequently but after reading the latest tea leaves they submitted it up. it is a boom, the best growth in a decade. fourth, the stork market. what a performance. new records. new highs across the board. the dow is back well above 26,000. it is only 2% away from the all-time high. no retreat this morning after yesterday's very big rally. let's be clear, the world doesn't turn on robert mueller or lanny davis's faust story about trump and russians t turns on prosperity which has come back to america, thanks to the trump growth agenda. we're very glad that you are following it with us. "varney & company" is about to begin. ♪

stuart: all right. let's get straight at it, shall we? joining us national economic council director larry kudlow. welcome back to the program. great to see you, larry. >> appreciate it, stu. stuart: you are holding canada's feet to the fire when the foreign minister arrives today. hard-line trump on full display, correct? >> well realistic trump. i mean, he would, on that point he would love to make a deal with canada, a good deal. a good deal in the interests of the american economy, the american workforce, american farmers and presumably as we, as we did in mexico a deal that works for both sides, a pro-growth deal, a free trade deal, a get down your tariffs deal, all of which the president believes. so i think he is quite sincere. but -- stuart: larry, do you have an offer ready to go to canada's foreign minister today? >> i don't want to go into that. bob lighthizer is our lead negotiator. he did a fabulous job with

mexico in my judgment along with jared kushner. i believe they snatched victory from the jaws of defeat several times. so no, i'm not going to get into specifics. i will leave that to ambassador lighthizer but my point is this, the president wants to make a constructive deal that is great for the united states and canada but if not he has said with great clarity we may be, we may be forced to go to automobile tariffs, you know, canadian auto import tariffs. maybe forced to go there. i think people must take him seriously. he has proven time and time again in his quiver of weapons on free trade he will use tariffs. if he believes that's necessary. so i will leave it there. i don't want to prejudge this i'm glad the canadians are coming. i'm just saying, keep an open mind. by the way, stuart, here is another for you. canadians really ought to look at what the u.s. and mexico just

completed. as an example of what can be done if there's good faith negotiating and a willingness to compromise in the interests of both parties. that is what negotiations are supposed to be, not just hard-line. they might study that. that would be very helpful i think both to canada and to the whole process. >> the big deal though is with china. are you holding on to the firm trump line, no retreat? you're waiting for them to blink, is that the situation? >> well, them to blink, i don't know. look the president is rock solid serious. i have said this a million times, he said it a million times. the trading system is broken. china is the the center of that prone trading system, whether it is high tariffs or non-tariff barriers or be is sy dis. whether it's intellectual property theft, whether forced transfer of technology, whether

lack of ownership, there are very, very important issues we've been talking to china for quite some time. i reckon we'll continue, i go back to one of my little thoughts in the last 24 hours. you and i were down here in the 1980s, you remember that? stuart: yep. >> nancy reagan was quite correctly going after drugs. she used to say what, just say no? my point to china, just say yes once in a while. show us some progress. show us some good faith. they never seem to do that. so you can bet that the president is very serious in his discussion of negotiations including tariffs. he is not going to back off on that. the takes are very high here. the system is broken. and everybody in the world, everybody, stu, we're negotiating with the eu, and mexico and, everybody knows china simply has to change with

substantial trading reform. they are a culprit here. let's get going, china. just say yes once in a while. stuart: your ace in the hole so to speak is the strength of america's economy. >> yes. stuart: the atlanta fed just raised it is forecast for the july through september period to a 4.6% annualized growth rate. i know they shift frequently. they shift that forecast around but, you think we're going to get something like that? i know you're loathe to predict growth rates in the future. we're off and running 4.1% in the second quarter. do you think we follow that up with another 4% quarter? >> i tell you, stu, it is quite possible as the atlanta fed is charting. stu, think of this, my view the single biggest news story this year, okay, the single biggest news story this year, is an economic boom which most folks thought was impossible. that's the headline story.

for the whole country. 155 million people working, low, unemployment rates. we're entering front end of big investment boom in cap-ex. it is spreading across the board. that's the story. it's a growth story. we are becoming growthier. stuart: there is no such word as growthier. >> it snuck it in "the washington post." stuart: there is no word such as i impactful, you know that. >> the boom no one thought possible america today is crushing it. stuart: you would not be surprised at a 4 1/2% growth rate in the july through september period, can we put it like that? >> i would not be surprised. i can't make out that forecast but judging from the atlanta

fed. all the forecasters in the private sector are looking at equally high numbers and, stu, i know it is unfashionable, lord help us, president donald trump has changed policies, lowering tax rates, rolling back regulations, opening up energy, trade reform. he has given the economy new life. he has given the economy new incentives. people are responding to that. we're not punishing success. we're not fighting business anymore. he is looking after the workforce, whether it is manufacturing or agriculture. you see what i'm saying? he had a sea change in policies and a sea change in attitude. and the confidence numbers show what this boom is looking like this. small business, large business, consumer sentiment. this is going on for a while. and the stock market as you noted at the top of the show. stuart: we have a fantastic bull run. we're record highs almost across the board. what stops it?

do you see anything on the horizon which would stop it, like a flare-up in the trade deal with china? that would stop it, wouldn't it? >> i don't know. i hate what ifs. look, these things don't go on forever. it is a cycle. i'm a believer in buying stocks for the long run because i'm a believer in owning america for the long run. i'm a jeremy siegel disciple, okay? that's investment strategy. shocks to the system, we'll wait and see. president trump is very much aware of the importance of confidence, and he is very much aware that these trade discussions have an impact on the confidence barometers and the stock market. so i don't know, to answer your question, here's my thought, try this. let's go to the other side of this coin. how about this? they said we couldn't do a deal with mexico. we've done one. they said we couldn't possibly have a sane conversation about

free trade with the european union. we are. we are also conversing with japan and australia over on the pacific side in ernest, looking for possible trade deals over there. i can't predict china the we may get a deal with canada, we may not. here is my point. i think the trade news is basically, if you look at the continuum, more good news. it's more good news. stuart: okay. >> the president's negotiating style, his strength, his backbone, his protection of america, it's working. it's working. like the other policies on taxes and regs. you may have upside surprises stu. i understand you could have a downside but you may have upside surprises as the economy outperforms, we move to, we move to a trumpian, no tariffs, no non-tariff barriers, no

subsidies, trade reforms. think of that, an upside surprise. just saying. just saying. stuart: i know you're just saying but you are whetting the appetite of this audience. we have another two hours and 45 minutes to go. we'll extrapolate what you have to say. >> my schedule is clear, stu. stuart: mine isn't. by the way, larry, you may have moved the market. we started to talk futures showed a gain of 40 odd points. now we're going to be up 70 odd points. congratulation, mr. kudlow, you did it. >> thank you, stuart as always. stuart: as we said futures turned up a little bit. we're up 70 odd points after the big rally yesterday. look at disney. new details on the streaming service that will come out later. variety says it it will be cheaper than netflix. won't tell how how much it will cost to sign up to this.

so much so they're now going to open 200 physical bricks and mortar stores. by the way, they will have private areas to test out the mattress. none of this lying down in front of everybody. you know how that can be. ceo on the show. jetblue flyers will not be happy. they will start charging 30 bucks for the first checked bag. could flying be anymore unpleasant? iran claims it is taking control of the straights of hormuz, a key oil shipping routs in the middle east. secretary pompeo says, no, you don't control the straits. more after this.

stuart: we have the latest read on, in other words, how much your home is worth now compared to a year ago. susan has the number. susan: robust, 6.3% up from last year.

less than what economists had forecast. i will use the word sequential. i'm trying to test the buzzer. sequential slowdowns from june. little less than the growth rate in june, which was basically. we're at 6.3 in june. may was 6.5%. ashley: the trend is in the wrong direction. year-over-year. susan: it's a big number. citywise, las vegas, seattle, san francisco. top three markets. stuart: all up sharply. susan: when did las vegas come back? ashley: no kidding. stuart: you have to tell me about new jersey in light of tax rates. foreign policy, iran says they have taken control of the straits of hormuz. secretary pompeo says, no you don't. here is the tweet. the islamic republic of iran does not control the strait of hormuz. it is an international waterway. the u.s. will continue to work with partners to insure freedom

of navigation, and free flow of commerce in the international waterways. walid phares is here. they can't control the strait. the u.s. navy is there. >> iran doesn't control international waterway. they have their own coastal line, a few kilometers into the ocean. so does the gulf countries that international waterway. nobody can control it. if they do, yes, then the united states and the international community automatically will react to this. stuart: this goes back to couple of years ago, three or four years ago, when an american navy boat was intercepted by iranian gunboats. they took them away. took the sailors away. took them back to iran. it was humiliation for the united states. in the back of my mind i think iranians want to repeat that this time around? >> no you are right but they would be wrong if they even try. we're in a different era. under this administration,

backed by congress on this issue, there would be no iranian games with the u.s. navy. not that the u.s. navy would allow itself to be captured by the iranians. because we had an administration which did not want to escalate with the iranian regime because it wanted to sign, execute the iran deal. we're out of the iran deal. we're free. iranians doing any incident with the u.s. navy or any other act, or even our allies will enter a different era what they think. stuart: iran seems desperate. their own people are impoverished and beginning to object to the reign of the mullahs. i asked you this before but do you expect at some point the mullahs to be overthrown by the people of iran, not by america, but by the people of iran? >> look if you study the historical process that happened in iran over the years, meaning uprising, and suppression, uprising and suppression. at the end of the day it is all mathematical equation.

this regime will go down at the hands of iran ran people. how, when, support of whom, what other second quarter is stanes i would say we're closer than ever, the type of demonstrations we're seeing are not ending. the people in those demonstrations are youth, women, more courageous women and minorities that is a recipe for a change in iran. stuart: hard-line trump is working? >> i think the policy of the trump administration is working. it is putting a lot of pressure. it is allowing the iranian civil society to rise unlike in 2009 they rose and previous administration abandoned them. stuart: walid phares, thanks for joining us. >> thank you. stuart: check futures. larry kudlow appeared at the top of the show, president's top economic advisor. he moved the market. we were up 30, 40 points, bullish out look for the economy and market. we're up about 70 after after he gain. we have bernie sanders he plans to tax big companies like

walmart, mcdonald's, to cover the cost of federal assistance that their employees receive. that is an interesting concept. full details and some discussion nah. not gonna happen.

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stuart: they didn't have a freight forecast, when you do that, the stock goes down. best buy stock down 5 1/2%. on other hand, tiffey, very much upscale retailer. sold a lot of jewelry in the asia, america pacific region. they're up 6%. that is a very specific jump for tiffany. $8 higher. there is this. senator bernie sanders wants big companies like amazon, walmart, mcdonald's, to cover the cost of any federal assistance their employees receive. so for example, if an amazon person receives 300 bucks in food stamps, amazon will be taxed 300 bucks. ashley: it is 100% tax on federal benefits. the way around it according to bernie sanders, you restructure your payment. give people a living wage. if you get them off federal is stance you don't have to pay. stuart: all part of this thing every single job must pay a living wage to family of four. ashley: even if it puts the business out of business. stuart: precisely. susan: people lose their jobs

because there is no incentive to employ them. stuart: very clever tactic to point out, amazon, one of richest places on the planet doesn't always pay a living wage. therefore bernie promote this is, you better pay a living wage. ashley: smart tactic on his part. stuart: politically smart. economically, not so great. ashley: not to great. stuart: amazon just keeps going up. 1900 something dollars a share. susan: close to 2000. stuart: ad-lib futures, what the prompter says. i can do that we're up -- ashley: ad-lib futures. stuart: ad-lib futures. ashley: special index. ad-lib futures. stuart: this is rock and roll show, thank you very well. nasdaq is up 18. we were up 200 yesterday. the market is on fire. the only place we're covering it is right here. back in a second.

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♪ stuart: you know, it is shaping up to be a very big week. yesterday, monday, the dow went up 259 points. closed well above the 26,000 level. if you look at the futures this morning, just a few seconds to

go, looks like we'll be up 50, 60 points on top of that when we get rolling first thing this morning. [opening bell rings] you have to say we're at or near record highs all across board. this has been a spectacular summer rally. maybe it is not over. 9:30 eastern time, we're up and running and we're up 48 points in the early going. the operative word we are up on top of yesterday's very big gain. right now we're up 47 points just at 26,100. just hit that mark, up a quarter of a percent on the dow industrials. how about the is sap 500? already at a record high, up another five points, reaching 2900 this morning. a lot of us thought we would never see that level. nasdaq same story, closed above 8,000 yesterday. up 20 points yesterday. 21. a quarter of 1%. ain't no stopping technology stocks.

by the way, look at amazon, new all-time high, fresh out of the box, right from the starting gate. ashley: another record high. stuart: we keep on going up. that thing, i would love to see a chart of that thing. it keeps going straight up. 45-degree angle right there. who is with me? apple, all-time high as well. the gentleman on the screen is d.r. barton. i think he likes apple. mike murphy back with us by popular request, susan li and ashley webster on the company. bull run, we are in it. what are the speed bums? see anything ahead that will slow this thing down? >> near term, no. we talked a lot, stuart, any pullbacks are buying opportunities. you had an economy. great guest on talking about the economy, larry kudlow. the economy is ways hitting on cylinders we didn't think existed 12, 18 months ago. economy is strong. corporate earnings are strong. profits are strong.

as long as this continues you have opportunity for companies to keep going higher. stuart: two points, you got it right. you consistently said buy the dips. people may money in if they followed you. larry kudlow wouldn't be surprised by rapid rate of growth 4.6% in the third quarter. he wouldn't be surprised into we didn't know those numbers would exist, 2% growth is the new normal. ashley: becoming growthier, no such word like impactful. do you see anything on the immediate horizon that slows things down? >> i don't see anything on the near term horizon. any tariff tiff can come along, can't say trouble anymore, it will give us a little pullback to buy. those are the only things we'll see until perhaps late in the year. inflation might rear its ugly head. until then, i like keep going upward trajectory.

susan: momentum in the stocks. that is the fastest 1000 point gain for the nasdaq, from 7 to 8,000 since the dot-com bubble days. stuart: is that right? susan: eight months. 49 days, that is a record declined 1000 points in the nasdaq. hopefully we don't have similar ending. >> remember when nasdaq 5000 was an amazing mystery? stuart: we threw a large party for that as i recall. susan: hats are still there. stuart: then there was the aftermath. talk about trade, u.s. has a deal with mexico. that is pretty good for automaker stocks. they went up yesterday. slight pullback today. this deal, mexico, the u.s., encouraging manufacturing in north america and america in particular. i say it's a win for the economy. murphy, what do you say? >> it's a win. we talked so long for stuart, about jobs leaving the united states. now jobs are staying home in the

united states. this administration spoke about fair trade deals. a fair deal is a win for the u.s. and a win for mexico. that is what we have right now. stuart: as larry kudlow said, it's a win for both sides. what do you say? >> it's a growth initiative. another thing kudlow said to watch for, what happens if all this sterm about trade turns into much broader free-trade agreement globally? that will take us up. stuart: i believe it is stern and drum. ashley: all two of them. stuart: scores of german speakers in our audience. we're up 50 points, 60 points. we're back above 26,100. look at best buy. not a rosy forecast. down it goes, 4%. look at tiffany, selling very well in north america,

asia-pacific. the stock is up 3%. a gain of $3.48 there. dsw, did i say better stock price? better believe it. a 20% gain for dsw. what do you make of that? >> i think it is great individual companies are performing well, when they put up the right numbers. individual companies are selling off when they don't. when that tells you, stuart, economy rewards winners and companies that do well. you want to look for and want growth. that is how you make money. stuart: that is some reward, 20%? susan: designer shoe warehouse, you get cheaper as someone who probably knows the company. stuart: do you buy at dsw? susan: i have. >> everyone buys two of the shoes. ashley: they buy lots of extras. stuart: let's get on with it. toyota, puts up $500 million half a billion into, uber.

what is that about. ashley: all about autonomous cars. integration between uber and toyota. put uber technology into toyota sienna minivans to add to uber's network fleet, but could be available to third parties who want to buy these cars to make their own fleets of autonomous vehicles. let's us not forget uber is still tackling that fatal crash in arizona. they shut down the arizona operation. laid off 400 employees. they're not testing on streets of san francisco, pittsburgh or toronto until they get to the bottom what happened. integration with toyota will be a good move for both. stuart: what it is worth, the autonomous car i could see as a tax system not sure i will buy one. moving on to disney, as you know -- murphy trying to say something here. disney, they're going to launch that streaming service next year. it will cost $8 a month. roughly, half the price of netflix? they will not have as much

content. what do you make of that, dr? >> i think direct to consumer model is going to engulf all of the media companies. they are going to get hit. they are going to get rough patches trying to compete with netflix. if you don't, you're out. we'll see them go up and down because of this. stuart: what have you got, suzanne. susan: $8 a month, but you get disney specific content they have pulled from netflix. they have control over their branding which i would pay for. ashley: no adult programing, rye? more kids? >> they have both. they have marvel. they have espn, sports. work that in. disney trades 16 times earnings. netflix trades 160 times earnings. susan: at least. >> looking for a value play, netflix has been awesome. disney has a lot of room to run to catch up with netflix. stuart: that's interesting. two amazon stories for you, as it hits another all-time high. number one, it is opening its

second amazon go convenience stores. where you walk in, pick it off-the-shelf and walk out, charged automatically. whole foods which is part of amazon, they're taking a bite out of trader joe's net income, i believe. so, first of all, tell me about this, these go stores. >> a lot of people are thinking why does the online king want to go into bricks and mortar? they want to go into bricks and mortar not way everyone thinks. they want a piece of that pie. how do you grow one. biggest companies in the world? by getting a piece of everyone else's retail with their technology, camera technology, the quick checkout technology, they will get a piece of everyone's money. stuart: look at the chart. amazon's stock chart. 45-degree angle straight up. who would bet against amazon? >> to add to dr's point they're using that technology to get into things.

getting into supermarkets that is very fragmented. if they get with the whole foods purchase, increase share in the supermarket business it gives that company -- susan: way to develop meal kits. they go in with ease, picks it up, use amazon pay, leave the store. all encompassing ecosystem. stuart: bring this in about tesla. a shareholder lawsuit claims that tesla made false statements about model 3 production. that lawsuit has been dismissed. a small victory for tesla but a victory nonetheless. the stock's down five bucks on that one. what have we got here? >> playing tesla. stuart: 313 on tesla. that stock doesn't get a break. in a huge upside market and that stock goes down. susan: i'm doing a lot of thinking on tesla, whether you view it as car company or a technology company. i view it as technology company. ashley: or battery company. >> arc investments, in tesla. it could go to $4,000 a share if

it takes advantage of its mobility services which can develop self-driving cars in the future to rival that of uber and gm. there is a lot of upside. stuart: i see the point, when i hear about headlines, oh, it will hit $4,000 a share, i have say you're reaching a little bit. that is my opinion. once again, murphy. >> i think there is way too much overhang, negative pub lusty what eel mon musk has put out recently. before you buy the stock on a pullback, you have some sort of as -- assurance there is not a major lawsuit against the company. stuart: 9:40, that means good buy to murphy and dr. gain of nearly 70 points. look at that level though, 26,118. we have florida's algae problem. strongly reported on this program. look at that video. it is getting worse. there is a third strand of algae growing in the water there.

in our next hour, we talk to an expert on algae. he says, dust from the sahara desert is making the problem in florida much worse. it was an extraordinary event. you watched it on this program. president trump on a conference call with the president of mexico with the cameras rolling. foreign policy done while the world watches. you have never seen anything like that before. nor has the media. more "varney" after this. ♪

stuart: we're almost what, 14 minutes into the trading session, we're up again. up 67 now. well above 26,100. it's a rally. apple will be rolling out new iphones september the 12th.

come in nicole. what do we know about them if anything? >> i love it, exciting, right? we're hearing about three new iphones. there is a big event coming, stuart. i don't know if you got an invitation, last year the event was on the 12th of september, the invitations went out on august 31st. we're expecting it to be in september. we don't know exactly what it is. here is what is coming. three new iphones, new colors, bigger screens. we're looking at a glass backed, stain less steel edges, side by side apps. all three will have face i.d. what is interesting they're having trouble with names. maybe it is the year of the s. or maybe come out with different names for all of these three. of course we've seen the prices trending high over the years. watch for watches and ipads. they have 1.3 billion active users for these things. back to you. stuart: extraordinary. nicole, thank you very much.

we have jetblue, the first airline to charge 30 bucks for the first checked bag. they're doing it because they can. have you been on an uncrowded flight recently? ashley: no. stuart: you can charge what you like. susan: usually 25 to $35. $30 for the jetblue, for first bag, that's correct. unless blue flex or mint fare. stuart: pay up, bro, because you owe us. susan: change fees are going up as well. stuart: flying is such fun, isn't it? expensive too. talk about the trade deal with mexico. come on gaston pierre he does business in mexico and the united states. gaston, you say this is a win for mexico. spell it out. which way does mexico win this? >> well, good morning, stuart. definitely it's a win. i think it's a win for both the u.s. and mexico, from the

perspective of mexico, look you have an admin operation on its ending in months and pena nieto finally brings this win. obrador starts his administration with this behind him. so i think from a political point of view it is a win. now, if you go a little bit into the nuances of the agreement, there is an increase of local content in the automotive sector i think one of the main things of the agreement. i think that will promote additional investment in auto parts from asian companies. there is a little bit of debate how to meet the 16-dollar wages. but there is a 40 year window. also the united states, it could be a tariff of 2.5, you don't meet that. that still keeps mexico competitively in that sector, stuart. stuart: will, do the people of mexico perhaps feel a little better about president trump now that they have a deal with

america, which actually raises the wages of a lot of factory workers in northern mexico? i mean, do the mexican people start to feel a bit better about president trump now? >> i think they feel better about the negotiations. i wouldn't go as far as individualizing these preferences. i think people feel confident that mr. trump, when you go to the table you can make a deal with him. mr. trump is sending a message to the chinese and other countries, hey, sit down with us and we can make a deal. those elements, people are very satisfied, apparently this is behind us. remember we still have the problem with canada. what will happen with canada this week? stuart: i do want to ask you about the presentation of the trade deal with mexico yesterday. at 11:00 eastern time on this program, we saw the president and the president of mexico

engaging in a foreign policy discussion with the cameras rolling via speaker phone. we've never seen anything like that before. how did it come across to you? >> well, i think it's a natural extension of a twitter diplomacy. in fact pena nieto has tweeted he already talked to prime minister true he -- trudeau. he wanted to be present in that historic moment. pena nieto wanted to be heard and part of that. so mr. trump put the speaker phone on. i think it came across really nicely. stuart: it was really surprising. we had never seen anything like that before. "the washington post" dismisses the phone call as awkward. we thought it was extraordinary. gaston, thanks for joining us. i'm sure we see a lot more of you soon. >> always a pleasure, stuart. bye. stuart: where are we on the market? we're still up about 60 points

higher. we're at 26,100. we have casper. a lot of millenials know a lot about this, online mattress people. business is so good online, they will open 200 bricks and mortar stores. they have a killer new feature. this interests me. private areas to test out mattresses. no more embarassment in the store. the ceo of casper on this program next.

stuart: why is sears stock up 15%. only 17 cents. i have an answer for you. expanding the amazon tire program. you buy them online. they're shipped to the store. you go to the store for balancing and installation. we used to play organ music for sears. we thought it was going out. up 16% with the amazon connection, you see. all-time highs right out of gate for the s&p 500, nasdaq composite, apple, now $219 a share. amazon 1931. records across the board. we talked a lot about the retail ice age on this program but the mattress company, casper defying the trend. they are opening 200 bricks and

mortar stores. they're going the other way. they started outonline. now they're going to bricks and mortar after tremendous online sales. look who is here. young man by the name of phillip c-rim, ceo of casper. >> thanks for having me. stuart: you know what i talk about first. >> what is that. stuart: that private area you got, i could lie down on a pat stress without being embarrassed. it is a big selling point. >> you could. it is amazing because it seems so obvious to give you a little privacy. take your time. lay on it. see how you like the mattress. not have a commissioned salesperson hovering over you to pressure to spend a lot more money. we try to start with the what the consume wants, move backwards. we thought about ideal way to try mattress, sleep products pillow. lay down. take as much time as you need. let us know if you have any questions. stuart: why go in that direction in you did extremely well with

online sales. i have millenials in my family. they use you guys. you're not ban doning online, i got that. why go so big into such a huge investment in 200 bricks and mortar stores? >> in short, what the customers wanted. our online business continues to grow very, very quickly. we learned when we first launched the business, still a large part of the population want to lay on a mattress, touch and feel it. it is highly considered purchase. you spend a third of your life on the mattress. a lot of people want the additional way to experience the product. they came to our first office, knocked on the door to try it. we're expanding our retail footprint to give them more locations. stuart: when you were on line, one mattress, one kind of mattress. came in a box, unfolded it, it is in your house. >> we started with one, expanded to three. we have couple options. stuart: what do you do when you have bricks and mortars? >> we have mattresses there. including other products. we have he had abouting line of

multiple sheets that help you sleep cooler through the night. we have a great pillow that supports next and shoulders. we're trying to be the first end to end sleep company to help you sleep through the night. stuart: you are a private company? you have a big piece of the action, phillip. >> founders continue to own a big piece of the company. stuart: don't have to explain yourself. when are you going public? >> we haven't set a time we will go public. we want to be public ready next year. markets are white hot. we have institutional capitalists, part of our capital base. we want to build the infrastructure so when we are a public company we will build it successfully. stuart: when you decide to cash out you will cash out. >> no. just another milestone for us. stuart: great to have you on the show. >> thank you, stuart. stuart: up next, my editorial on the media. i don't think they are doing their job. they will cue anything towards towards -- skew anything towards damaging the president.

i have some thoughts on that coming up next. ♪ ♪

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stuart: the media, they are supposed to inform the public. well, i don't think they are doing their job. instead, the news is skewed towards anything, anything that damages the president. for example, lanny davis, the clinton lawyer, he told the world trump knew in advance of the russian hacking of the democrats. it was sensational story, but it was wrong. davis has now had to admit he can't confirm the story he came up with, he regrets the error. the damage has already been done. cnn otherwise known as clinton news network. they thought they had a smoking gun. we haven't heard much about davis's error. ironic isn't it? that the clinton lawyer appears on the clinton news network to revisit the clinton election loss. example two, the market and the economy f. you watch this program -- if you watch this

program, you know the world of money is on fire, record highs for stocks, best growth rate for the economy in a decade. lowest unemployment in a generation, that is big news. it affects everyone in a positive way. did you see that on the evening news? did you read it in your news feed? probably not. if there's anything positive for trump, it is edited out or ignored. the biggest story of the year if not the decade is america's return to prosperity, but it is completely glossed over. instead you have lanny davis forced down your throat so he can keep the impeachment story alive. the media turns an economic triumph into a terrible week for the president. they are deliberately avoiding doing their job. last item, pew reports that the audience for the networks evening news shows dropped 7% over the last year. no wonder. the second hour of varney &

company is about to begin. breaking news on the economy. a very important indicator, especially for the stock markets, consumer confidence. >> we like to talk about blowout numbers. this is a blowout number. 133.4 which is a 17 year high. it blows out what we saw in july. that's already at record highs in the 17 or 20 year category. this could push the markets, give a nice little boost. we know the labor market is tight. people feel a lot more confident. they are spending more. they are going more to the wal-marts. we have seen that with tj maxx. this index for consumer confidence a blowout number. 133.4. stuart: that is a very big deal, isn't it? >> even greater than expected. and july was revised slightly higher as well.

to larry kudlow's point, the economy is getting growthier of all time. stuart: at the top of the 9:00 hour, larry kudlow, chief economic advisor to the president, he was on the show. he used the word growthier. of course there's no such word. it was a pretty good one to use anyway. >> i'm going to use it anyway. stuart: i will take his word. [laughter] stuart: look at this, record highs on wall street. the s&p 500, the nasdaq composite, amazon stock, apple stock, all of them record highs. apple's pretty close to $220 a share. and then you've got caterpillar. today it's one of the biggest gainers in the dow. why? because trade tensions are easing. okay, it is now up just 85 cents. but up nonetheless. how about tiffany? they raised their outlook. that always helps the stock, and they have got higher same-store sales. lots of jewelry sold in north america and asia pacific. the stock is up -- >> you bet. stuart: right? the stock is up 2%.

that would be a significant gain. but tesla, a shareholder lawsuit that claimed they made false statements about model 3 production schedules, that lawsuit dismissed. however, musk may be not out of the woods at this point, when it comes to the sec, still got a legal case hanging over him. we will talk to an sec attorney shortly. meanwhile, tesla's stock down 5 bucks at 313. back to my editorial at the top of the hour on the market and the economy. here's what larry kudlow had to say about that last hour. roll tape. >> the single biggest news story this year, okay, the single biggest news story this year is an economic boom, which most folks thought was impossible. that's the headline story. for the whole country. stuart: he did not read my script and i didn't read his. come on in, market watcher, yes, he's still in london. i don't know why he's there.

enlighten our audience to the historic nature of this stock market rally. >> well, it is the single-most biggest story of the year, and like you said in your monologue or pre-log, it's not being reported. the easy answer is it doesn't fit the narrative. let me tell you that there are certain careers that attract certain kind of people and they are true to their original colors. in order to be a journalist or in the media in the states you have to have a liberal arts degree. it is not a conservative arts degree. you are already left-leaning before you go into the career. when you come out, you do as you normally do. there was an article in the chicago tribune, an article when i was in the states that said that 95% of journalists polled voted democratic. the only surprise there is why wasn't it 100% of journalists? so they are only being true to their colors. they are not changing their colors. and that type of career attracts that type of person. stuart: now, larry kudlow also -- i was pressing him on

the future rate of growth of the economy. and of course he doesn't want to go there. he doesn't want to make that kind of prediction. so i said, would you be surprised at a better than 4% growth rate in the third quarter? and he said no, i would not be surprised. in other words, he's looking at a continuation of a very strong expansion. you agree with that, scott? >> yeah, i do. and the last 4.1% we got, maybe there have been some prebuying because of what the tariffs might do. the atlanta fed raised their expectations. i have seen some 4.6 numbers come across my desk. it will be great to see all those stories get debunked about how we had a one off flip because of 4.1% because we brought some demand forward. if it continues, that would be a bigger story because that's going to say the demand is there and it is there to stay. boy oh boy is that consumer is not listening to what they see on tv.

they are listening to the weight in their wallets. stuart: well said, this market and economy is on fire. that's a fact. you better come back to america to join in the fun pretty soon there, scott. >> i will be back next week. stuart: good. come and see us. come back soon. i want to talk about the political side of my editorial, top of the hour. lanny davis, admitting he can't confirm the story that trump knew about russia hacking the dnc. a story he was the anonymous source for. he can't confirm it. did he lie? bring in kevin jackson, fox news contributor. that story from lanny davis dominated the news for the whole week. it gave the president a terrible week, and now he can't back it up. your response? >> what do you expect, stuart? look, lanny knew he was lying. the entire mueller investigation, everything that's going after donald trump has been a fabrication of the left, for one simple reason, and you have already explained it, donald trump is a rock star. stuart, i only wish donald trump was black so i could see how the news would carry, you know, how

they would carry what he would say. i mean, this guy is a rock star. black folks are feasting. in fact, there was a story -- i don't know if this is fake news or not. there was a story published that said blacks -- entrepreneurship has grown 400% under trump. it's been dedunked saying it wasn't a large enough sample of companies. here's what we do know, they are feasting because of policies of donald trump. companies in america are feasting. you highlighted retail. look at retail in the time of obama. it was absolutely pathetic and now we've got companies like sears making money. reporting good earnings. tiffany's probably hasn't had the type of earnings report you just mentioned in a decade. so we've got this happening, and it's because of donald trump. and let me tell you, something that's gone unnoticed, ben carson and hud and somebody highlighted the atlanta fed, go look at the work of leggett what they have been doing to spur

entrepreneurship and particularly black entrepreneurship in atlanta by making people honor these set aside contracts and these hud contracts. it's been amazing. i know they are working with companies -- sorry for demagoguing here, but i know they are working with companies, a friend of mine, a ceo of a company, i have spoken to him about it, they are doing things to actually make folks get jobs and become entrepreneurs. stuart: why isn't support for president trump more evident in the black community? i mean his support level is still extremely low despite all he's done for the economy? >> come on, are you watching these polls? i think you referenced or somebody referenced a poll was that blacks are at 31 to 36 percent. that's up from 9%. black people are feeling the impact of the trump economy. trump tax cuts. look, all i can tell you is this, any democrat that thinks that they are looking forward to

the midterms is a trombone player with a pager. the phone ain't going to ring, fellows. [laughter] stuart: i wish i had thought of that line. that was a good one. [laughter] stuart: kevin, we will see you again soon. okay? you are on a roll. i hate to interrupt. we will see you soon, kevin. thank you very much. >> all right, stuart. stuart: elon musk says tesla will remain a public company, got it. but the sec had already said it was investigating the whole fiasco about taking it private. question? does staying public remove the legal challenge? we will address that question. florida battling a third algae bloom in florida. where is it coming from? can it be stopped? we're going to talk to someone battling it on the ground right now. i believe he says it is coming from the sahara desert. check that out. remember when krugman said the market would never recover after trump? one economist at the time disagreed with him. took a lot of heat for it. the man who disagreed, he's on

the show. he's going to make his case about this boom that we are now in. you're watching the second hour of varney & company. ♪ mgx minerals' disruptive technology can extract lithium - used for batteries from expired oil wells. mgx's new pilot plant aims to produce lithium-carbonate one hundred times faster than from conventional lithium brine. mgx minerals

stuart: we're holding on to a modest rally, about 50 points up for the dow. close to 26,100. look at best buy, that stock is on the down side today. they didn't give a very good forecast for the future. and they are taking it to the cleaners. we have a three year high for dsw, shoe company, 24% up, 33 bucks a share on dsw. elon musk says we're going to keep tesla public after all. joining us now is former sec attorney, welcome back. good to see you again. >> thanks good to see you. stuart: reverse course, not going to go private. staying public.

does that keep the legal heat off his back? >> absolutely not. and actually with all of the statements that he's been making, it basically appears as though he's making admissions that he did not have a reasonable basis for any of the statements that he's made. so the heat i think is actually coming on a little bit stronger with every statement he makes. stuart: the original problem was he said he got secured or funding secured for this attempt to go private. if that is proven to be an incorrect statement, what is the punishment for elon musk? >> well, there's potential civil and criminal liability for those statements. if funding wasn't secured and he really only had preliminary discussions with the saudi fund, then he has potential liability there for both civil and criminal, and also the funding secured at 4.20 a share price was based on an arbitrary number

it appears, a 20% premium plus a dollar for good karma. that's not generally the way you go about coming up with a tender offer price. stuart: that's very true indeed. now, the story that we have been following closely is whether or not elon musk is pushed to the side by the board of directors who want an adult to run the car company. that's the argument -- the story we have been covering. my question to you is, what legal liability does the board have at this point because of what elon musk was tweeting ten days ago? >> well, the board is going to be under a lot of scrutiny by the sec as to how they responded. they were rather silent through all of this. and once elon musk made the initial disclosure that if it is shown to be untrue, and they knew that, and they remained quiet, they have a duty to update. so their failure to do that, it can also have civil liabilities for the company and the board.

stuart: this kind of thing should be resolved fairly quickly, shouldn't it? i mean it is fairly easy to say you have the money or you didn't have the money? >> that specific issue might be easy to find an answer to quickly, but this is going to be an intense investigation over lots of things. so the sec doesn't investigate things in a vacuum. and it's going to follow the evidence wherever it takes it. they will be looking at intent and all the different communications and all the different social networks and e-mails and any kind of correspondence to know what each board member knew, what elon musk knew, whether there was any intent involved, whether anybody traded on that, whether there were any capital expenditures that would also require a boost in the stock price then. so there's a lot of things that are going to be looked at just with this one case. and so they are not going to come out and tell you a finding on one issue. they are going to find all the answers to all of the questions and do a comprehensive investigation. stuart: it is a legal cloud that goes on for a very long time.

however, musk did win a small legal victory. a judge says tesla didn't mislead the public about those model 3 production forecasts. but that's a small legal victory, not connected with the sec. am i right? >> right. that's completely separate. the plaintiffs in that case -- appeal that because the judge in that case did look at 33 extraneous documents at the motion to dismiss stage, which the ninth circuit earlier this month had admonished the judge for doing -- [inaudible] -- at this early stage. that's completely unrelated any sec investigation. into the model 3 projections and as well as into the tweets. stuart: i have 20 seconds left. does musk leave the all powerful ceo job and have to go to the side as a near visionary, is that what's going to happen? >> i can't predict the future. i think that would be very tough to do, but i do think they would be wise to bring somebody in to

help him for sure. stuart: got it. that's what we're looking for. thank you very much for joining us. >> thank you. stuart: let's take a left turn. water on the rise. why is that good news for soda makers? >> because they can invest in them like soda stream. pepsi bought them. fizzy drinks are popular for the young crowd. sales of these, they are now outpacing fruit juice sales this year already in the first seven eight months of 2018. and also hard selzter sales are up as well. >> what's the appeal? >> healthier, less sugar. >> by putting bubbles in it? >> you can put coffee in it. some put cannabis. there are some unique ways --

stuart: okay. now i'm getting it. you said hard selzter, is that with alcohol? >> i don't know the definition of this, but that's what it says. stuart: producers say yes. >> outpacing beer sales, apparently, hard selzter. in terms of growth. stuart: the growth rate of hard selzter is greater than the growth rate of beer. i have been in america for 40 years. i have seen a few changes. now this one. some democrat candidates in texas want to decriminalize illegal border crossing. congressman andy biggs is from arizona, he has a lot to say about what they are trying to do in texas, and he's next.

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stuart: electronic arts cancelling the remainder of the madden classic qualifying events. that after a gunman killed two players at the event in jacksonville florida over the weekend. the ceo says they are reviewing all safety protocols. stock is down. now this, a new study finds parents want their children to chip in more for college. wait a minute. it sounds like parents are saying to the kids work your way through. >> well, they are, less half the parents believe they are actually obligated to pony up the whole cost -- whole cost. to your point, they want their loved ones to get off their butt and make an effort to pay towards college. the average amount that the

young student will pay is about 15,000 for over a four-year period for an average cost of 80,000. so the parents are picking up about -- on average at least 80% of the cost, but more and more -- and especially among millennials now and those coming through the ranks said they want to pay more towards their college. there's no given right, in other words, that mom and dad are going to pony up and pay the whole thing. stuart: what do you make of that? >> i agree. i had to pay for my own expenses in college as well. nothing was given to you. you had to get a job in the summer and after school. you had the time. you might as well work for it. i think it is a good education as well. stuart: yeah. i had the advantage of going to university in england, many many years ago, and i was given a grant. so i was paid to go to college. this was a nice thing. we only educated 2% of british kids to the university level back in those days. >> that's right. stuart: so the government could afford to do it. >> times have changed in the u.k. they now have a lot of student debt they are dealing with, very

similar to the u.s. stuart: there's a problem. >> yes. stuart: president trump says jim brown quote gets it. brian kilmeade just sat down with jim brown. he will join us shortly. what does jim brown think about all this stuff here? paul krugman he warned everybody get out of the stock market, when trump was elected. one other big name in the economics profession said the trump economy is going to do okay. meet the man who got it right, not him, that's krugman. meet ken rogoff. he got it right. he's with us next. ♪ metastatic breast cancer is relentless, but i'm relentless too.

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♪ ♪ get back stuart: the dow industrials are up 39 points, just a little shy of 26,100. what you are looking at on the right hand side of the screen are the s&p, all-time high. the nasdaq, all-time high. apple closing in on $220 a share. and amazon at 19.34. that stock keeps on going up, does it not? same with the markets, big name economist took a lot of heat from colleagues because he was positive right after the election of president trump, positive on the election and for the economy. directly opposite of course from paul krugman. now the guy who got it right is with us now. his name is ken rogoff, former

chief economist at imf, a big hitter in economics, are you not, sir? welcome to the program. on the program earlier this morning, we had larry kudlow and i pressed him, are we going to get 4, 4 1/2% growth in the third quarter? he said he would not be surprised at that. what say you? >> the economy is clearly very strong, and i think we're on a track of looking at 3% growth on a fairly sustainable basis. and this quarter could be that. i mean, these numbers are, you know, quarter by quarter numbers. they are hard to read. stuart: but overall, would i be justified in saying this economy is booming? and it stays this way until close to the end of the year? >> absolutely. i think it's something that's stunning people around the world, who keep upgrading their estimate of what the u.s. is doing. stuart: are you surprised? >> no, i'm not.

i mean, mind you, it wasn't so much because of the election, but there's the sense of doom and gloom hanging over the economy, before it, and, you know, it was even worse when they saw trump won, and i think they are confusing the idea that, you know, there are some productivity issues. there are problems. we had a financial crisis. it takes a decade to get out of a financial crisis. so i think this whole idea this secular stagnation, we will never grow again, we will never invent again, it was overblown. so the baseline is very good. stuart: it seemed to me that president trump unleashed the great american energy machine of growth and prosperity. he seemed to unleash that with tax cuts and deregulation. >> i agree with some things he did and not others. corporate tax cut was a great idea. and let's face it, this is a country that didn't need more regulation.

i worry about the environment and cleaning it up ten years from now. i worry about inequality, what the backlash will be ten years from now. but absolutely, the policies, you know, that were put in place on balance didn't hurt. stuart: what about this trade agreement? not quite a deal yet with mexico. it is an agreement. it is a two-way street here. i say it is -- you're the economist here. but i say it was a political win at the very least for president trump. what say you? >> well, his trade negotiation in general are political theater, at least the way he describes them, and his trades are -- peter navarro describes them are kind of nuts from an economic point of view. trade is not a zero sum game. i mean, goodness, we're the big winners over the last decades from trade, but it is true, china is trying to push us out. china wants to take over. and that's a good -- mexico and

canada are our friends. i don't think he's necessarily making the agreement better, but there were things to fix. it is complicated. i see a little bit of good in it, but i wish that we just weren't doing it. stuart: really? >> i do. i wish we just tweaked nafta and didn't say we had to change it. stuart: but that wouldn't be trump. he came to office and saying i'm going to fix this. >> politically it is smart. sanders would have tried to do something similar maybe with a different approach. the nafta is spectacularly unpopular with the left. i talk to students. everyone is absolutely convinced it was the worst thing that ever happened, by sanders, not by trump. so it is good politically and maybe positions him to do something with china. stuart: very serious and difficult subject, i know you just came back from bogota, colombia, and i think you observed first-hand the fallout of the dreadful crisis in venezuela. what did you see? >> what's spilling over into

colombia, which is just a small piece of what's going on in venezuela, they have over a million, maybe some estimates 1.5 million refugees. that's the equivalent of 7 or 8 million in the united states. there's no refugee camps, like in greece or lebanon. people are sleeping on the roads, in parks, and streets. it is just awful. stuart: you saw that in bogota? >> in bogota it is really cold and you don't see it so much. but in the warmer climates, you do see it. i didn't see it so much first-hand, but talked to a lot of -- stuart: there's no quick fix of venezuela? >> well, they have got to push the regime out. and i think, you know, there's no question at some point the regime has to go. we have to help the refugees now, and i think both the left and the right have to, you know, acknowledge we need regime change. the left has been i think supporting venezuela, saying they are doing a good job,

socialist revolution. stuart: ken rogoff, the man who got it right, thanks for joining us. >> thank you. stuart: thank you, sir. live on the radio, we're almost there. 10:36 then i go -- there he is. it is 10:36. there is brian kilmeade, host of the brian kilmeade show. you just interviewed jim brown, nfl great. it was on fox & friends this morning. i think you talked to him about the number of black athletes who oppose president trump overtly. what did jim brown tell you? >> he's getting backlash in the black community. he stood up for muhammad ali in the 60s, when he decided to stand up as a conscientious objector to the war, stripped of his title. the man who started a prison program to teach those in prison life skills in order for them to get out. started the program and one that infiltrated gangs, brought them to his beautiful hollywood home, and tried to heal a lot of the feuds, started that program in

1988. he's somebody in the black community they are beginning to get angry at because he likes donald trump, supports a lot of what he's doing. he says he listens and he does a lot what i say, why wouldn't i support him? he joins george foreman, mike tyson, dennis rodman, kanye west, some of the high-profile athletes who said i'm not going to go along with some doctrine i don't agree with. i like the guy. i don't think -- i asked him flat out does he think the president is racist? he said absolutely not. stuart: did you see the questioning of tiger woods? he was asked -- i forget the precise question, but the questioner wanted tiger woods to oppose president trump and almost insult president trump, and woods would not do it. you saw that because that was -- these journalists were pressing so hard. they wanted to keep all black people under the same camp, hating president trump. i was appalled by it.

brian: the last question was the follow up as if when he said i've known donald for years, 20 years. they golf together. they just golfed recently together. they have the same passion, live in the same state, right in the same vicinity, and they respect each other. and when he says you got to respect the office. he doesn't want to get into it. he didn't want to say i'm voting for or not voting for him. i respect the office. they say really? after lebron james and others have said, what do you think? yeah, i respect the office. i'm hungry. i would like to get something to eat. now, i don't have a problem with that question, at all. i would have stopped it after he answered it. i wouldn't have asked the same question five straight times. stuart: yep. brian: if i'm in that audience, and it is the end of the season, getting ready for the ryder cup, u.s. against the world, i don't have a problem with that question. i don't. if you asked greg norman, greg norman is not antitrump. he doesn't walk around with, you know, make america great again hat on, but he likes trump. you know, so if you ask greg norman that question, he would

probably have a similar answer. you have to ask him 20 times. it's like they can't believe this actually happens? i get it. i don't debate -- i'm not upset at espn for debating it because when you ask it, it now becomes something for the sports show because you have this elite athlete on this big comeback trail who says i respect the office. lebron james is not showing respect for the office. he has no respect for trump or the office. by the way he's acting. stuart: okay. i would like to say to espn stick on sports. brian kilmeade, thanks for joining us. see you again soon. google responding to tweets this morning by president trump, with what the president said. google search results for trump news shows only the viewing reporting of fake news media. in other words, they have it rigged for me and others so that almost all stories and news is bad, fake cnn is prominent. republican conservative and fair media is shut out.

96% of results on trump news are from national left wing media, very dangerous. google and others are suppressing voices of conservatives and hiding information and news that is good. they are controlling what we can and cannot see. this is a very serious situation. will be addressed. that's what the president said. what is google saying? >> they respond with this, search is not used, says, google, to set a political agenda and we don't bias our results towards any political ideology. every year we issue hundreds of improvements algorithms to ensure they surface high quality content in response to users queries. we continually work to improve google's search but we will never rank search results to manipulate political sentiment. there's the response from google to the strong words from the president. stuart: quite a stand off, i would say. frankly i'm with the president. case closed. not quite. >> no. stuart: west virginia about to become the fifth state to cash in on sports betting.

nfl great joe theisman is all for it. he joins us in our next hour. democratic candidate in texas calling to decriminalize illegal border crossings. here's the question, could this draw more people to the border? we will ask congressman from arizona, border state, that's next. ♪ ♪ a hotel can make or break a trip. and at expedia, we don't think you should be rushed into booking one. that's why we created expedia's add-on advantage. now after booking your flight, you unlock discounts on select hotels right until the day you leave. ♪ add-on advantage. discounted hotel rates when you add on to your trip. only when you book with expedia.

>> we have a trade deal with mexico, but what about china? in the last hour, white house economic advisor larry kudlow channelled nancy reagan to give some negotiating advice to the chinese. >> there's a whole bunch of very very important issues we've been talking to china for quite some time. i reckon we will continue. but i will go back to one of my little thoughts in the last 24 hours, you know, you and i were down here in the 1980s. you remember that? and nancy reagan, nancy reagan was, you know, quite correctly going after drugs, and she used to say what, just say no. my point to china, just say yes once in a while. show us some progress. show us some good faith. they never seem to do that.

stuart: no organ music for sears today, oh, no, the stock is up 11%. that's only 13 cents, but it is up. why is it up? because it's expanding its tire -- you buy the tires on-line. you get them shipped for installation and balancing. sears up 10%, $1.23.

texas democrats want to decriminalize illegal border crossing. congressman andy biggs republican from arizona is with us now. i take it, sir you oppose the idea let them come across the border without making it a crime because that would have a big fallout for you guys in arizona, wouldn't it? >> well, it would. but that fallout would continue throughout the entire united states. we may get most of the border crossers right now. but they filter throughout the entire united states and all this would do is create one more incentive and until you take away incentives to come here, people will keep flooding across. stuart: in texas and arizona, decriminalize the border crossing, i'm sure there is a large constituency which says yeah, good idea, how big is that constituency? >> well, i think it is a plurality.

certainly not a majority. i think the majority says remove the incentives and enforce our laws and then we could start talking about other immigration policy. that's really what my constituents have been telling me since i ran for congress, and that's, you know, that's where i've been all along. but this idea that you basically say -- first of all, the first time crosser is a misdemeanor right now. it's not even a felony. you have to be here twice before we're going to start charging you as a felon. so this idea that lets further decriminalize it, that's no good because -- [inaudible] -- that's exactly what would happen. stuart: is it not going to happen? >> you know what? i don't think that you can dismiss it. i think we have to be very vigilant about it and we have to continue to fight it and say the things i'm saying and fight it. because this is wrong headed and it is certainly going to lead to more illegal immigration, not less illegal immigration.

stuart: today is the arizona republican senate primary. it's happening now. it's happening in arizona as of right now. your thoughts on it because i believe that president trump looms large in this primary? >> well, president trump would loom large, but he hasn't endorsed anybody, and each one of the candidates is basically taking credit for their affinity with president trump. so, you know, quite frankly, president trump could have decided this -- the outcome because he is still strongly supported in arizona. right now it's hard to say who is going to win this thing, but let me tell you, all three of these candidates believe that they would be the one that would work best with donald trump. stuart: okay. that's what we're interested in, thank you very much indeed congressman always appreciate it. >> thanks. stuart: we've been following the red tide. then there was a green tide in florida. now there is a third bloom. where is it coming from and can it be stopped? there are good questions. we're going to ask them. check the big board.

the rally still with us, only just. 30 points higher, and i like this music. i want to be a billionaire. that's my theme song. back in a moment. ♪ i want to be on the cover of forbes magazine ♪ ♪ smiling next to oprah and the queen ♪ ♪ every time i close my eyes xfinity mobile is a new wireless network

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only for a limited time. sleep number. proven, quality sleep. stuart: there is a third species if that's the right word, a third species of algae that's now blooming in florida. as you can see on your screen, there's a lot of dead fish decomposing right there. this is not a pleasant circumstance. joining us, he's been on the show before, florida sea grant director. this third algae bloom as we're calling it, this species, where is it coming from? >> well, this is like a triple play this summer, but not in a good way. so we've talked about the red tide and blue-green algae blooms in florida. now we're seeing seaweed washing up on the shores in miami, ft. lauderdale along the beach. they are having it on the caribbean and shore of mexico too. it's coming from down in the caribbean, farther south than

the small islands offshore of brazil. it is a natural seaweed. it is an important weed in the ocean because its habitat for fish and turtles. but it's being fuelled by a lot of nutrients coming out of the amazon river basin because of deforestation. the pollution that's causing that bloom is creating an algae bloom down there in the ocean and the currents are carrying it up here and depositing it on our shores. stuart: is that new? this new -- i'm going to call it an algae bloom, sounds like a sea wood bloom more than anything else -- seaweed bloom more than anything else, is this new? >> it's been happening since around 2010. i don't know whether it's a cycle. we're in a period of time where it is more intense than usual or whether it's a trend. no one can tell that. but it's happening right now and it is a real problem for tourism in a lot of the small tourist islands. stuart: what is this about dust from the sahara desert blowing over there? is that a red herring? >> it is not a red herring, no.

that's an interesting one too. i will tell you a simple story about it. there's a red tide along the gulf coast. after a while red tides run out of nitrogen. they need nitrogen as one of the nutrients to grow. the saharan dust is pretty heavy this year. it is bringing over iron. the iron is fuelling the growth of a different kind of algae that's able to take nitrogen out of the atmosphere and give to it the red tide. it's keeping that tide going longer than we have seen before in the recent past. stuart: this is fascinating but it is terrible news for the tourist industry because you don't have a short-term fix for either the first, the second, or the third algae bloom, do you? >> no, i mean, so i go to the beach every year. and this is the first year i have experienced it. and chances are next year everything will be fine again. you know, it is one of those things where it is just a perfect storm this year. we are having these problems. stuart: well thanks for reporting it. we do appreciate that even if we don't like the news. algae specialist, we will see

you again soon. thanks. >> okay. stuart: it was a historic day here on varney & company, president trump conducting foreign policy via speakerphone. yes it produced results. maybe canada is next. maybe germany. even china. all possible. my take on that, top of this coming hour. ♪

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"the washington post" dismissed the phone call as, awkward. of course they did. they can't accept this president. they can't accept anything about him. so they focus on the speaker phone, and not mr. trump's win. make no mistake, the mexico agreement is political win for the president. he is doing what he said he would do. achieved a amicable relationship with a mexican president. there is a switch. it was a hostile relationship not that long ago. it is an economic win for america. this is my opinion. the mexico deal encourages car production and car part production in north america. and given the sharp jump in mexican car factory wages, gm and ford have less incentive to go south of the bored for cheap labor. when will the media understand "the art of the deal"? that is mr. trump's business-like approach to running the country? they will never accept it. the political elites have been running this country their way

for a very long time. look what he achieved. trump's negotiating style achieved results. the ball is in canada's court and after that germany's court, china's court. hard-line trump, capable of compromise, getting the deals done. the economy is growing, market rallying, there is less red tape, record low unemployment, a trade deal discussed on camera, what does the media feed you? oh, the awkward speaker phone. pathetic, the third hour of "varney & company" is about to begin. note ♪. stuart: i hope you heard my little rant there. let's see in charles payne, the host of "making money" with charles payne, let's see if he agrees with me. i see the trade deal as a win for mr. trump politically and a

win for america economically. you will take me on? >> i agree with you, the market exploded yesterday and a lot of these industries, let's call them economic purists or globalists if you will, they worried about or written articles about, they were up even more. auto partsmaker borgwarner surged. it was the best performing name in that sector. it was a win-win. it's a negotiated win. the kind of win that you get. the idea it would be the perfect deal was ridiculous but we know that nafta wasn't perfect. it was 24 years old. here is the irony, we got better things than we would out of tpp that is the big story. for everyone comes on my show, this would be a moot point if we did tpp we didn't. neither political candidate was for it. we weren't doing it. by the way intellectual property gets protected here much more than under tpp our agricultural industry gets protected here than it did under tpp you can quibble.

you can say we like the notion of cheap stuff coming into this country because it helps the consumer. before you can be a consumer though you have to have a job. so that is the sort of chicken and egg thing. stuart: love it. stay there, charles. want to digress for the market because you're doing well again. we're doing 26,100 on the dow up2 points. -- 52 points. far more winners than losers. i have to tell you that earlier this morning i talked to economic council director larry kudlow. listen what he says. i asked him if there is anything that can stop the rally in the market? roll tape. >> i hate what if. looks these things don't go on forever. it's a cycle. i'm believer for buying stocks in the long run because i'm a believer in owning america for the long run. stuart: didn't seem to see any real roadblocks for this market rally in the immediate future, nor do you, i think. >> i don't. the biggest potential roadblock would be the federal reserve. we found out on friday that jay

powell is a friend of this market. he, listen, jay powell comes from carlisle. so this is the difference. we have someone in charge of the fed, not a academic, not classically trained economist. someone who understands how their actions reverberate beyond the spreadsheet. i think what we saw out of him in wyoming on friday was the last hurdle for this, for this market. stuart: charles, look, we try not to play the same sound bites on this program in back-to-back hours but i want you to hear what larry kudlow said, when i asked him about economic growth in the future. roll that tape, please. >> the single biggest news story this year, okay, the single biggest news story this year, is an economic boom, which, most folks thought was impossible. that's the headline story. for the whole country. stuart: not lanny davis.

not russia, russia, russia. no it is not, it is prosperity. it is back, it is here and it is trump's thing. >> in july american businesses ordered 52,250 big-rigs, all-time record in one of the slowest months ever. we're at 300,000. we'll shatter the record this year. you don't buy 200,000-dollar trucks unless you anticipate a major significant move. those are 52,000 driver jobs. 52,000 jobs supporting those things. it is absolutely remarkable. beneath the surface, what is happening, business to your point, they don't care about the lanny davis stuff either. stuart: i asked mr. kudlow, look, the atlanta fed says we grow at 4.6% an you growth in the third quarter. of course he will not go near that. he will not say, yes i agree with that stuart. he is not going to say that. i said would you be surprised at 4% growth. he said no, he would not be i take it you agree.

>> i agree i think we would break the 3% threshold for the entire year we were told never could happen. this i equate to the tiger grand slam. you remember the tiger slam. he doesn't have all four majors in same calendar year but all at same time. we have the trump slam going on. i will think we will do it for calendar year. stuart: if you go the last four quarters of the last year. >> 3.1%. stuart: so for the full calendar year 2018, if we repeat 4% in the third quarter, we're at -- >> we're getting there. we're definitely on. we have serious wind at our sails right now. doesn't look like it will let up. stuart: i want to give you caught dose, charles, right from the get go, buy the dips, buy stocks you know, you will make money and we did. >> thank you very much, stuart. stuart: you didn't tell me to buy microsoft. >> you already had microsoft. stuart: that's true.

charles, thanks. i have more. you stay there. >> okay. stuart: i'm digressing to susan. we have warren buffett making a big investment in india. susan: paytm, india's largest online payments company. warren buffett, berkshire hathaway, they rarely invest in international companies. this is very interesting. they want to put a few hundred million dollars to work. alibaba is largest investor. softbank also has a take as well. india's online payments market expected to grow to one trillion in the next few years by 2023 up five-fold. stuart: see something right there. does charles payne see opportunity in india? >> this is classic warren buffett investment. long-term potential out of this world. this will be the most populist nation in the world, biggest democracy in the world, fastest growing economy but average income per capita is $3,000,

maybe a little less. upside potential is huge. susan: payments market is only one trillion in 2023. china is 14 trillion this year. they are far behind. u.s., we're only in tens of billions in online payments. >> that means upside potential. stuart: you have a whole huge market. now you're done. >> thank you. stuart: some individual stocks that are making moves, start with best buy. they did not -- they gave a disappointing forecast and they're down 7 1/2%. tiffany, they sold a lot of jewelry. same-store sales really nicely higher. the stock is up just one dollar. it was up more than that earlier. look at retailer, shoe retailer i should say, that is dsw, highest sales. look what happened. they're up 22%. how about that? ashley: a lot of shoes. stuart: i missed it.

google announcing knew program for veterans. how they find jobs, highlighting veteran-owned businesses. that is google. i will ask them you will work with veterans but you won't work with current employees of the military? i call that a contradiction. france's president emannuel macron turning away from america. he says, look, europe can no longer depend on america for security. nigel farage has something to say about that later this hour. sports betting, big and it's growing fast. nfl superstar joe theismann joins me, i want to know if he approves of this, he likes it, how is he getting involved? right now we take to you the mile-high city. it is a clear day in denver. ashley: you can see a mile. ♪

stuart: toyota putting

$500 million into uber. tell me about it. ashley: toyota, i remember the commercial. 500 million. the reason here is that uber would like to get together a network of autonomous vehicles and the toyota sienna minivan could be that answer. it is interesting, bottom line, look for uber and lyft, autonomous vehicles could cut their biggest expense which would be? stuart: i don't know. ashley: human drivers. if you get autonomous vehicles and human wages and human benefits, this is a good move. uber has been suffering since the fatal crash last year in arizona. they shut down the arizona operation. they have taken away the autonomous vehicles in other cities, canada and toronto. they're looking for infusion of cash. this is a good one for toyota. they both win. ultimately they could sell the autonomous toyota vans to a third party who may want their own fleet of autonomous vehicles but it is going in that direction. i know you would not, would you

get in an autonomous taxi here in new york. stuart: yes. yes i would. by the time they get on the road and launched there will be safety requirements, jurisprudence for the lawyers. ashley: we're getting there. stuart: i'm not opposed to future. moi? west virginia is gearing up to launch sports betting. it is the fifth state to do it since the supreme court said it was okay. our next guest will help kick it off. joe theismann, great guy, he watches the show, he is with us now. sir, you support vigorously sports betting, if i'm not mistaken. am i correct? >> that's correct, stuart. if they go to autonomous cars who will blow the cars in new york attacks sy drivers? just a question i have, i'm sorry. stuart: good point. you always pick up on the story i relate before we get to you. i love that. >> i loveliesenning. it is interesting, sports

betting has been around for a long time. i believe $50 billion was bet a year ago. vegas only did about five billion of it. there is $45 billion out there basically bet illegally. people are going to do it. i think the supreme court made the right decision when they approved it. i will be in west virginia this weekend kicking off their sports betting a the casino there. i just think it makes sense. people are going to do it, you may as well give them the opportunity to do it. then you can regulate it more easily. you have the opportunity to tax it. it will be better for the state. i think it is a win-win across the board. if it wasn't being done it would be a different story. the fact it is being done i think something people are doing. stuart: it is a huge shift. look, i live in new jersey. sports betting has come to new jersey. i can see going to a bar. football game is up there on the screen. i have my ipad with me. i'm gambling as we watch the show and drinking my beer, whatever. that is a revolution. that is something really, really

new. >> not only that, the first month of betting in the state of new jersey the books did $40.6 million worth of business. i mean, the numbers, are astronomical. think of the world of sports. why do people watch? people watch, they like to bet on the games. i think fantasy football leagues have done a tremendous job being able to bring in people that weren't really football fans. they weren't really baseball fans, basketball fans. if you're working in the office, a pool or fantasy league, you're in. all of sudden you become a fan. the gambling goes along with that. stuart: the nfl is taking heat recently for all kinds of problems. i want you to, i relate a positive story for you. look at this. that is houston texans star, j.j. watts, his foundation raised $41.6 million for hurricane harvey relief. joe, that is absolutely fantastic. >> it is, stuart. j.j. set out to raise $250,000.

he is now at 41 million. j.j. watt was last year's nfl man of the year for the services he performed, being the tip of the spear, going out and raising money. every team in the national football league has someone recommended and nominated as man of the year. j.j. happened to win it. there are some young men in the national football league doing so many positive things in the community. so nice talking about something positive regarding the nfl because there has been a lot of things going on as you said are not necessarily in the positive vein. i won't stop. it is great he is one of those people and done something. stuart: i have 20 seconds left. in those 20 seconds, can you tell me who is going to win the super bowl this year so i can get in early on the betting line? >> the jacksonville jaguars. where did that come from? i have no idea. [laughter]. stuart: would that be a long shot? >> i think they're a team to be

reckoned with. the rams, the nfc is loaded with a bunch of good teams. the afc top five could be there. i'm going out own a limb, really early before the season starts and i think it will be jacksonville. stuart: do you think low say marino will keep the job as coach of manchester united? >> there is a chance. stuart: do you know what i'm talking about? >> you and i love to talk soccer. i can't believe manu lost a game. i don't understand how that happened. stuart: i was watching. it was a catastrophe. mr. theismann we think you're all right. hope you come back soon. >> thank you so much. stuart: sure thing. check this out. bodycam footage shows a texas police officer running into a burning home. he rescued the family. the officer waking up a sleeping father, helped get six children it safety. the officer sprang into action, despite orders to wait for backup. by the way he has no firefighter training. he is one good man.

missouri first state in the nation to regulate use of the word meat. i know it's a cliche. you can't make this stuff up. months after toys "r" us closed its doors for good. another iconic toy store fao schwarz plans to make a return to new york city. tell you the weather. it is hot as the devil in new york today. going back to 94, 95 degrees. it is summer. we kind of like it there. ♪

retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. this is moving day with the best in-home wifi experience and millions of wifi hotspots to help you stay connected. and this is moving day with reliable service appointments

in a two-hour window so you're up and running in no time. show me decorating shows. this is staying connected with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. stuart: fao schwarz, toy store, closed their doors 2015 but they are making a comeback. susan, where and when? susan: opening in november, a few months at rockefeller center here in new york. i have to say this is one of my quintessential new york experiences. they want to make it appears e an experience as well. they're not going through these traditional job interviews. they're auditioning for workers. they want dancers, performers, want to create a experience. need someone to jump on the big piano dance away like tom hanks did. stuart: a great movie. "big." susan: tom hanks.

fao schwarz. stuart: rockefeller center. >> yes. stuart: prestige just place. >> yeah. stuart: next case, missouri, is now the first state to regulate the use of the word meat. now it sounds ridiculous but i'm sure there is a good reason. ashley: there is a good reason. it means in missouri if you advertising something as meat, it has to be harvested production livestock or poultry. it has to come from an animal. there is lab grown meat, come from tissue cells, yuck. plant-based meat. ingredients like soy. i say it again, tofurkey. turkey made out of tofu. this was snorted by missouri -- supported by the missouri cattleman's association. whether you wonder if it is meat, and protects local

ranchers. it ain't meat you can't call it that. call it what it is,. susan: have you had a tofurkey? ashley: i have not. stuart: we are arby's, we have the meats. something like that. ashley: that is very good, stu. stuart: for months, we have been talking in my normal voice about how-takessed states will be hurt by the new tax law there is a new report in the "new york times" says that is not the case. we have details on that one. this afternoon president trump meets with pastor darrell scott at the white house talking about revitalizing inner cities. pastor cot will join us. i want to know what the plan for revitalization is and he's going to tell us. ♪ pah! that will never work.

no, no, no, nah. a bulb of light?!? aha ha ha! a flying machine? impossible! a personal' computer?! ha! smart neighborhoods running on a microgrid. a stadium powered with solar. a hospital that doesn't lose power. amazing. i like it. never gonna happen.

stuart: right, we have a small rally. we're right at 26,100. let's talk about economic growth. our next guest says we'll see 4% growth in this current quarter, july through the september period. forbes columnist is with us, and laffer center for supply side economics. brian, this is very much in question, what kind of growth rate do we get for this quarter,

july through september? am i right you say it is 4% plus? >> it will be 4% plus, no question. in fact that is becoming the consensus. the atlanta fed is talking about 4.6. the blue chip forecasts are going up. when you have tax rate cuts and trade out tariffs for trade deals, of course there will be big-time growth. stuart: but that is extraordinary. that is a real complete turn around. that is a doubling of the rate of growth from the first quarter of the year to the third quarter of the year. that, really extraordinary. >> it is extraordinary in the 21st century. but at all times before that it is not extraordinary at all. ronald reagan had a 7% growth in 1983. knocking off six% a year was typical when the united states was growing because it was shrinking government. we're deregulating, cut are trade deals and tariffs we can expect 4 to 5% growth. stuart: four to 5% growth,

brian, music to our ears. on the subject of trade, america and mexico reached a tentative deal. hear what larry kudlow said about trade with canada. roll that tape, please. >> he would love to make a deal with canada, a good deal, a deal in the interests of the american economy, american workforce, american farmers and presumably as we did in mexico, a deal that works for both sides, a pro-growth deal, a free trade deal. stuart: now, mr. kudlow said, he is not backing off at all. this is the trump hard-line, and he has taken that line with the europeans with, mexico, canada, et cetera, et cetera. you approve of that? is that the way to get a trade deal, a hard-line? >> my coauthor, larry kudlow knows what he is talking about. if the means is threatening tariffs and it works of course that policy should be pursued. and if that worked with mexico and canada and the eu, that's

why i'm saying there is no bar to start to talk about 5% growth. that would be a new thing in experience in the 21st century. stuart: can we get it? can you get lower tariff barriers or no tariffs at all? is that a realistic proposition? >> given that low tariffs and no tariffs benefit everybody, in the high tariffs benefit the few, it is in the general interest for their to be low tariffs. so i would be very, i would expect we would, yes, have good reason to believe that we can get lower, no tariffs across the board. stuart: let me go back aways, back to the election of 2016. on election night we had several prominent economists saying look, we're done. we're going to either go in recession or slow the economy down or the market will crash. where were you, what were you saying on the day that donald trump was elected president? >> i actually had to give a speech to the marin county, california, republicans that morning. i prepared a speech what we have to do with hillary clinton's presidency. so i had to shift gears very

quickly that wednesday morning. i do remember paul krugman saying the market will top right now. it will be relentlessly down. of course right now we're experimenting with new highs in major indexes and stock market is anticipating future economic growth on the order of five, four to 5% per annum, as the new normal. stuart: that's extraordinary stuff. thank you very much indeed, brian. always appreciate it. see you soon. thank you, sir. now this, "the new york times" says trump's tax law has not hurt high-taxed states and home prices are still strong and home sales are holding up in high-taxed states. new york congressman tom reed joins us now. congressman, i thought that people would be reluctant to move into high-taxed states because, if they came from a low-taxed state and go to a high-taxed state with a new tax law, they would be paying more in tax and they would lose some of the gains in their salaries. am i wrong?

>> i think the tax bill is doing exactly what we thought it would do spurring economy, driving home prices up. even with the salt compromise we worked out with $10,000 being the compromise position, the impact on housing prices is exactly where we are. i think "the new york times" got this one right. stuart: wait a minute, wait a minute. on this program, we had not heard that one in a while, "the new york times" got it right. okay, but i have to go back to this. if i'm an executive and i'm making good money, and i'm in, i don't know, tennessee for example, or florida or texas, or nevada, i'm offered a job with more money in new york, california, or new jersey, why would i take that job because i'm going to lose money? you get my point? >> yeah, i totally understand that. for the top level executives, there is going to be an impact there. you will see potential negative consequence and i recognize that but, with folks making $500,000

or less, if you run the numbers, this doesn't impact them. by doubling the standard deduction, having overall tax cut in your tax rate, you come out ahead. and it is people doing basic math. that is what d.c. doesn't get. people can do math and they recognize the big picture, how the tax cut bill benefits them not only on this provision but as an overall package. stuart: the people in your constituency who you have to face in november for re-election, are they saying the economy is issue number one, and that's very, very important? or are they saying wait a minute, the president's dehonor, his tone, his tile, that is what is holding them back, which is it? >> i think it goes back to the old adage, it's the economy stupid and that is exactly what i see and hear across the district. people want an opportunity. they want a job. they want to work and provide for their families and that's what this tax cut bill is doing. that is what this economy,

unbelievable numbers. every economist told me impossible. the new norm as your last guest said, four to 5% growth that is reality we're looking at. that is huge and which should celebrate it together as one nation. stuart: tom reed from new york. thanks for joining us, sir. we always appreciate it. thank you very much. >> great to be with you, stuart. stuart: our next guest, well he was at the white house at the dinner celebrating evangelical leaders. he will be back there today. he was back discussing revitalizing inner cities. pastor darrell scott is with us. urban coalition cio. welcome back. good to see you, sir. >> thanks for having me. stuart: darrell, spell it out, what is the plan for revitalization, what do you know? you know. give us a first here? >> we were at the white house yesterday to update them as to our progress. we're actually in the land acquisition stage right now. we have some acreage we have our eyes on, and process of closing deals on, acreage in ohio and

louisville, kentucky, in connecticut. we're looking at some property in florida, south carolina. we're at the stage of being ready to start breaking ground, putting shovels in the ground, moving some dirt around and dropping this model in several different cities. each model is very, very ambush shuffles talking about in between, 150, $165 million per area. stuart: wait a second. you buy the land. you're smiling. you're buying a lot of land all over the place. >> we're acquiring the land. stuart: putting millions of dollars into that land. what are you building? what kind of facility is are you building? >> cities within cities. it is entire -- called new urbanism. we're talking about affordable housing, transitional housing, urban retail out let centers, youth empowerment centers, urgent care facilities. it will be entire new community within the community that will be an upgrade in the living conditions in the urban community and spur not just

physical revitalization, but inner, emotional, mental, intellectual, social revitalization as well. very ambitious project. stuart: indeed it is, sir. where is the money coming from? >> is that government, taxpayer money? >> no, we're not getting money from the government. we have sources backers, investors. we have donors putting this money in because they believe in the president's plan for urban revitalization so they all want to participate in this. we have people coming along putting up billions of dollars to support this initiative nationwide. very ambitious. i'm very proud of those who have seen this vision and bought into the vision and they want to work with us. so we're giving -- public/private partnership. it will be the largest public/private partnership for urban america in history. we're about to start moving dirt around, put shovels in the ground. stuart: pastor darrell scott, i believe you broke some news for us on this program. we appreciate that. there is an open door policy on this program. you sir, can come anytime you

like. is that okay? >> i have to get you out to a groundbreaking, when we have our groundbreaking. we'll have groundbreaking very soon, i need to get you out there. stuart: as you always say if you're not careful i'll be there. pastor darrell scott. great to have you on the show, sir. thanks for all the details on the revitalization program. it is really something. >> i will keep you posted. stuart: we appreciate it. we've been saying this all morning. president trump, this is my opinion, i think he scored a big win on the trade deal with mexico. will this encourage the europeans to come to the table now? nigel farage next. sears stock getting a bit of a pop today because it has got a partnership with amazon. yes, what you're looking at is the amazon effect. details in 90 seconds. ♪

>> i'm nicole petallides with your fox business brief. sears is gaining today, it is up about 8% right now. this as they're expanding their partnership with amazon. it's a case, if you can't beat them, join them. you can see it was announced back in may that the company had this program. in fact in 47 auto centers, you buy the tires on amazon.

you send it to the sears center. and that was an in eight metro city areas. they then install the tires, balance the tires. they get you going with the tires thaw purchased on amazon. in fact now, they're expanding it to a total of 118 stores nationwide. and then in august announcing it will be all across the nation that you can do this they have also partnered with die-hard and kenmoore products as well. this helps sears which has been struggling with sales. mgx minerals' disruptive technology can extract lithium -

used for batteries from expired oil wells. mgx's new pilot plant aims to produce lithium-carbonate one hundred

times faster than from conventional lithium brine. mgx minerals stuart: "the wall street journal" says car sales around the world slowing down because of trade concerns. interesting. jeff flock standing by with more on this. tell me, yeah, tell me more, jeff. reporter: i bet you don't buy it, do you? do you buy that? >> no, i don't. stuart: no. look, let me give you my opinion for what it's worth, before you rant on, jeff. look, there is a saturation point for cars. we're not buying cars. we're buying suvs. that's what's going on in the car market. you make your report. reporter: well, now, you took the wind out of my sales. i'm standing in front of all these cars they can't sell here. you're absolutely right about the suv portion. these are ford fusions. they will not make these by 2022. ford is phasing out almost all

the passenger cars. the journal has a point on this. look at numbers in china. we're talking about global sales. in the u.s. we've been on this long run for a long time. can't last forever. seven years of run-up. look at china sales last month, down, i think the number is 5.3% to 1.6 million vehicles. ford, look specifically at ford in china, in july they were down 32%. year-to-date they're down about 26%. i do think there is an impact in china and that seems to being felt here in the u.s. as i said sales will be down a little bit because we've had the huge run-up. you can't keep buying new cars. how many cars do you need, stuart? stuart: is that a question. fair news. i will give you the point there. car sales are slowing down in china. that is because of trade tension. i got that. i have entirely agree with you. i think american market, european market is somewhat different and separate. i give you the point on china,

okay? reporter: you are the man who always hold as different opinion. stuart: that is correct. flock, you're all right. see you again soon. ashley: flows you too well. stuart: he does. the u.s. and mexico, they have that preliminary trade deal. listen to what larry kudlow had to say about it earlier this morning on the show. roll tape. >> they said we couldn't do a deal with mexico. we've done one. they said, we couldn't possibly have a sane conversation about free trade with the european union. we are. we are also conversing with japan and australia over on the pacific side, in ernest, looking for possible trade deals over there. i can't predict china. we may get a deal with canada. we may not. stuart: there you have it. come on in nigel farage, gentleman on the right-hand side of the screen. european parliament member and a fox news contributor. so trump's, mr. trump makes

deals. so will europe look at what's going on with mexico and canada and say, yeah, we're in, we'll deal too? will they say that? >> well, mexico, of course this is a sovereign country. it may have its problems but it is the 12th biggest economy in the world and it felt it had to do something in its own interest. the difficulty with europe of course is the european union will be negotiating this and of course the commission, the european commission is not elected by anybody. it is not able to be removed by anybody. and is notoriously very slow. so the canada deal that the eu did took nearly eight years to complete. i don't think trump administration has that much patience. the pact -- fact that they came to the table. the community that screams protection i when trump talks about trade, he uses tariff as a

weapon to get people to the table. full marks on mexico. i think the the european thing will move ahead but don't hold your breath because it won't happen quickly. stuart: let me talk to you about france's macron and germany's merkel. both of them say america can no longer be depended upon for security for europe. and they're calling for a more enhanced military role for the europeans. can you see that happening nigel? >> well, jean-claude juncker, the commission president in his state. union speech last year said, we will complete a european army, air force and navy by 2025. now, it may be walter mittty stuff in terms of their financial spending and their commitments but i'm worried, i'm worried when macron and merkel speak like this, that we're seeing a direct threat to nato, something that i think has been a very good thing for the world

for the last 70 years. stuart: i have to explain to our audience, nigel, there is a terrible delay. it is about five seconds between the time when i speak and you hear me. so i have to cut this short because i like a conversation as opposed to a series of statements. you're nodding head, you're smiling. i can tell that you understand. that is very much appreciated, mr. farage. we'll have you back when we have a direct connection. that's a fact. nigel, thank you very much indeed. morgan stanley up grading the bhatti product makers, coty and estee lauder. green arrows for both of them. both up. google introducing new services today to help our veterans. next we have a guy from google who will tell us how they work. i will have to ask him, why would you work with veterans but you won't work with the pentagon? i will ask him. all right. let's have a look at san francisco. that is almost my hometown. i arrived there almost 40 odd

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stuart: google search and maps, introducing new features for

veteran-led businesses. they're trying to help veterans. joining us now is nick. nick, welcome to the program, google for jobs founder, cofounder. product lead. spell it out for us, please, nick. what is google doing for veterans? >> yes, stuart. today we are announcing a three-part set of tools and resources meant to help our servicemembers, transitioning servicemembers get a great career in the civilian sector. the first thing that we're doing is adding new functionality to google search. as a veteran you can go to doing fell, type in jobs for veterans. you will see a new feature you can enter into your military occupational specialty code. this is a code every service member gets designates the role they performed while in service for our country. for example, as an infantryman, you might be an 11-b. what we've done is take actual data about successful transitions that veterans have made into the civilian world and

map between these codes two occupations and jobs that are going to be leveraging your skills and persons that you gained. often times we see that veterans are speaking a slightly different language while in the military about what they do and with responsibilities they have. then the businesses, that are looking for veterans with, those kinds of skills. this mapping enables any service member to just enter their code and get occupations and jobs that are likely to leverage everything that they were able to do while a part in the military. stuart: nick, we all can applaud what you're doing for veterans but what some of us can't understand the apparent contradiction because google, many employees at google are saying, no, we will not work with the pentagon. we will not work on artificial intelligence contracts for the military. and yet you will help veterans. that seems to us to be a contradiction. what is your response?

>> well, i am here today, stuart, as a representative of search and we have worked hard to work with all the appropriate agencies to bring these sets of features to the public. for example -- stuart: i got it. nick. i understand, it is not your job to address artificial intelligence and the military contract. i got that. now will you respond to this. it is a tweet from the president. and here it is. google search results for trump news shows only the viewing reporting of fake news media. in other words, they have it rigged for me and others. so that almost all stories and news is bad. fake cnn is prominent. republican conservatives and fair media is shut out, illegal? what is your response to that, nick? >> i have read the tweet. when users type queries into the google search bar our goal is to make sure they receive the most relevant answers in a matter of seconds. search is not used to set a

political agenda. we don't bias our results towards any political ideology. every year we issue hundreds of improvements to our algorithms to insure that they surface high quality content in response it user's queries. we continue to work to improve google search and we never rank results to manipulate political sentiment. stuart: okay. we hear you, nick. we appreciate what you're doing for veterans. nick, thanks for joining us this morning. we appreciate it, sir. there will be more "varney" after this. ♪

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stuart: pfizer recalling its children's advil products. tell me more, susan. >> bubble tbum flavored and according to pfizer, voluntary recall 4-ounce bottles of advil

of bubble gum flavor, the dosage cup was mismarked. it's marked in teaspoons but the instructions on the bottle is milliliters. stuart: mislabeling product as as opposed to advil itself? >> yeah. stuart: you have sent host of bullish sentiment. ashley, tell us again. ashley: recorded blowout, 18-year high in august, strong performance in july, confidence in this economy just follows the consumer confidence is going to be growing and has in sales numbers, brick and mortar stores have shown that economy is feeling confident and plays to what larry