entire three hours and charles payne is filling in for "varney & company" take it off. >> a setup for this market. thank you very much is hi everyone i'm charles payne in for stewart. , of course, a record setting day on wall street surging 1,000 points yesterday that is, in fact, the biggest single day gain in history. this at the white house economic advisor kevin reassured investors we're not interviewed him on this program about the federal reserve. the market loved what he had to say and tell you more about that but a dirveght story this morning futures are pointing lower, an market opening in just half an hour from now another wild day i keep saying buckle up but don't turn away. holiday numbers coming in here's the deal americans spent 850 billion dollars this christmas season of 5.1% from last year all online sales setting pace up more than 19% from a year ago.

and president trump making a surprise visit to the troops in iraq. he defended hiss decision to pull out of syria but say he has no plan to exit iraq. and president trump also tweeting about that trip earlier this morning he says, quote, just returned from visiting our troops in iraq and germany one thing is certain we have been incredible people representing our country. people that know how to win. "varney & company" knows or two about that tee and we start right now. and right now if you look at the growth forecast for next year once again at 3% a lot of people are closer to us than they are last year and i'm saying we see a repeat that data continue to be strong there's a lot momentuo next year. >> that was white house economist kevin on this show yesterday with the very sunny forecast for growth the dow

consequently closing up over 1,000 points in a session joins ugh now market watcher dave scranton i have to get your thoughts on whether or not you agree with growth of 3% growth for next year. >> i do not. i think growth next year is going to be much closer to 2%. and you know, i think the latest of a bunch of government officials who coming out trying to back jerome powell after what happened after last few weeks but we'll see. >> well, i don't to the two because you know, i thought, obviously, i think his comments on jay fowl really trig peered reversal yesterday and we with triggered panic buying which whats when market is deeply oversold but the notion that we won't grow that way. i love it by the way when most of the experts don't think we'll do that because i think catches himself made the point that almost every expert on wall

street underestimated kind of growth we saw this year particularly kind of earn education growth we saw on wall street. so 2% what does that mean for the market? >> well, what means this year coming through end of the year who knows with this kind of volatility but as far as next year concern i see next year is first negative year really in a while. schismly because a lot of things have been happened baked into the cake. wall street got excited when the president got elected i think the market got ahead of i.t. so we need to pull back and retract just a little bit. how much? you know, who knows but we've been flirting, that 20% bare market level and flirting with it other day and i believe we're going to break below that and we're tin deed going to sew a bear market. >> scott martin is with us as well fox news contradict are tore and market expert extraordinary i want to ask you first questions. first let's start overall a i

think even picked up on jay powell i thought what was missed, though, was a comments of potentially 3% growth next year. what do you think we're heading? >> you forgot all around great guy charles too but we'll let that slide. happy holiday here's the thing, though, i agree i guess to some level of what he's talking about. charles only thing i thought that he said when i was watching video there all of this momentum that was going into the other ear. because i don't know, last time i looked stock market has bad momentum and interest rates did down and myc data is kind of getting foggy you know with housing data is not that great. confidence numbers are polling back. yes spending numbers are good. but some of those forward looking indicators kind of wane a bit so -- look i think like you have talked about previously here if beginning of the year is a little bit toss but we get to level where is market is attractive that's going to bring buyers in but i don't think it is right at these levels just yet. >> play for the audience by the

way with what he has to say about chairman powell for folks who didn't see it yesterday. roll tape. >> the fed chairman stops safety, of course, 100% yes. 100% fed chairman not. absolutely. that's correct. >> is so you've heard all of the president's criticism of jay powell, listen, obviously, the president not happy. he watched the federal reserve go 126 months without a rate hike he saw them generate out of thin air l froms back to banks in the economy. and since he's been elected we've had about 9 rate hikes is there thing to him thinking that maybe fed is moving too aggressively. >> i absolutely believe the fed is moving too aggressively, and i can't believe that so or far through 2018 it seems like eve time dropple powell get on television and jawbone a lot and short-term interest rates going up bond market fall down and

long end of yield curve giving him room to raise short-term rates bond market doesn't do that but does what it is going to do and finally after thanksgiving bond market finally said, enough is enough. we're not going to cooperate we "don't ask, don't tell" think growth projections are going to be what they're saying. so as a result, it's i believe this is going to be another ultimately we have recession. it is another just another fed created recession like many we've had in the past. >> i want to switch gears a little bit gentlemen to the holiday shopping season right now, the numbers are pretty big i think for these retailers and scott you kind of talked about some of the economic data waning what doesn't seem to be waning -- you know i looked at university of michigan consumer confidence number, and some of the other things and thisless claim now, of course, people putting those emotions into actions. with strongest seasonal sells in sixer years what does that say about economy and -- and a the momentum that we might

have as we've gone through next year? >> well it definitely says good things like i don't to totally pour out party punch here but problem wing this market here and you dave talked about it previous before i came on which i was sad to be left out of i guess. but market is a forward looking indicator. so question knew these holiday numbers charles were going to be really good but as you have talked about you know what happens to earnings going forward when we have comps is? again you know tax cut earnings we saw this year by the way, not sustainable you know at 20% plus growth but gdp numbers coming down depending how productivity shakes out so jump in scott because between slower growth and negative growth? obviously, again, we have record-breaking numbers in one indicates that the continue but should the market lose, 30% of its value as you grows on top of what was already financial growth? >> it shopght and you're right about that charles and you know being a market expert yourself,

the market, obviously, always overshoots and undershoots too. it just goes to extremes like, you know, a crazy person right. but reality is, though, is that market does want to see better data in the future. i think as we start to see some business confidence numbers we've seen business investment pull back market got more concerned about things than it should have but earnings forward we haven't resolved this big trade issue but earnings come through and started q1 these comment that companies charles will possibly make about pressure on major finance worries about trade war could continue to put a negative cast over what should be a good earning season. >> let's leave it there so much to talk about and get you back real soon and meantime now i have to check on futures because we are indicate to be lower with traded pretty open in a rang between down 380 we're at the lower end or higher end, however, yacht you want to look at it. also check the price are of oil oil has been in a massive slump

trying to footing but supply and 18 month high that's putting pressure on oil this morning. the good news for consumers, obviously, natural average for regular gas drop now 2.29 a gallon. facebook tops the list. the list of the least trusting companies out there. christina has got the details. >> according to pc magazine, they looked at thousand people and interviewed them and found that 40% of that bunch believed that facebook is the least trustworthy company out there. followed that second in second place we've got twitter and amazon they tied for the second least trustworthy company and you've got über and lyft in there. facebook, though, is very top although given the fact theaf cambridge analytica old news at this point. but fact that they have given so much information to third party apps, there's constantly scandal after scandal and they sited in another reason too not just the the scandals but how scukerburg

and sheryl sandberg reacted it in congress and reacted in general to all of this news to russian meddling so ongoing story. no surprise. but couldn't this be an opportunity to get in? because i've seen one analyst i saw this morning 160 thousand predicting for facebook stoke. >> i saw that yesterday. but here's the problem. is someone you know people need to really look at the numbers and i am just kind of concerned personally, obviously, facebook growth itself is slow in a long time ago. instagram growth starts to slow so you have to wonder and keep an eye on the growth. >> yes facebook is down but people are using instagram quite a bit and not many ads on there. we'll see right now numbers i don't know if you jump in front of this let numbers firm up and to upside if they can turn a company around and if image might be even harder than numbers. hey by the way folks check equity futures futures with anor crazy day i actually think it is good that we're opening lower this market needs to be tested

over and over and over and over again. before we know it is found its footing so we're down 360 after down 1,000 right now this ain't the end of the story by the way, the between verizon and disney leave college football fans out in cold explain what's there and making a surprise christmas visit in iraq defended pulling out of sear why and doubled down on government shutdown. you're going to hear all of that right after this. (engaging uptempo music)

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quick with look at futures we're at the lows of the morning dow looking like it would open off almost 400 points it could we're opening soon. and, of course, let's take a look at big tech names which have strong rebounds yesterday giving fair amount that have back today. with the biggest oners of yesterday leading downside early this morning. meanwhile disney wants verizon to pay hundreds of millions of dollars more for their program aring. we know it is going to be something that goes on for a while but what are details christina? >> if you're a verizon subscriber you would have received stating that going forward you may not have access to disney owned channels and espn if you're a big sports fan and like to watch college football there's a possibility because two media giants can't agree to terms for their deal and that is set to expire december 31st which is why such a big deal for a lot of sport

lovers going forward because they may not have hash it out and verizon claim tas disney is asking for millions of dollars for abc owned programs as well. think you've got mod enfamily and greys anatomy in that list as well. >> verses has serious issues rights. losing subscribers last earnings -- switching gears now president trump makes a surprise trip he went to visit the troops based in iraq and he defended pulling out of syria. roll tape. >> i told generals let's get out of syria let's bring our young people home. >> joining mark former press secretary to vice president pence all right mark. your reaction to all of this the way it has played out because the headlines, you know, really are were damming the resignation of the defense secretary mattis and you know to levels where, you know, you might have thought

we were in midst of a constitutional crisis. >> nothing unusual for people who write those headlines. but what they're fig mothering is this is the president delivering another one of his campaign promises and not only to bring our troops out of syria. but to do what they were supposedded to do when they wenn there to defeat isis kill terrorists now we can pull back and use troops that are stationed in iraq as president was saying yesterday, and trust me, if isis thinks that our withdrawal from syria is an open door for them to try to reconstitute is their caliphate, they are wrong. we will had thereby there in force our troops around corner by the time they know we're there they're probably already going to be gone. >> yet narrative was this was open invitation to isis to reconstitute that it was somehow happened overnight you know, i also think that perhaps forgot frump ran on this platform it

just -- i just don't get the connection to the idea that he did something he promised he would do after succeeding something he promised he would succeed at but what about what's left? and syria what about what happens with kurds those are are legitimate questions particularly with the kurds who fought throughout all of this and it appears that erdogan now has them in their sight. >> i think it is very important, though, to remember that -- we're just right we're still in the middle east we're not pulling out completely and while we have 2,000 troops there, you know, they're going to be repositioned and a turkey has also some other issues they've got to solve. we're still their ally part of nato. they've got issues but the american president is not pulling out. we're still going to be in the region we can still -- kurds are going to be -- do you think kurds are safe mark? >> well, i'm not exactly sure how they're going to deal with that civil war that's going on in that area but that is not

issue that we went in there to solve but by went to defeat isis and take care of the terrorist threat the president unleash ptd our military forces to do so. but he's also kept a very close eye on -- on syria. on the iowa assad regime and launched two military strike tbens forces there. we're not going to be going away. we're just going to be handling our business in a different manner. >> bring it back home and talk about shutdown and president trump say in firm we wants a border wall let's take a listen. >> a shutdown will last -- >> whatever it takes. i mean we're going to have a wall we're going to have safety. we need safety for our country even from this standpoint we have terrorists coming in. through the southern border we have the terrorists also a coming in to southern border he made it very tough. but i won't put them on the spot but i guarantee you they would say you don't have a wall. you're not going to have --

folks are saying, can we have some drones, technology, technology is bells and whistles. you know mark this is campaign promise number one. we know that base wants and, in fact, even democrats talk about quote unquote security but they seem to be against a wall. where do you think it goes from here? >> i'm not sure where it is going to lead because nancy pelosi gets speakers gavel here in about a week, and then all of this process will have to start over again. in terms of reopening the government and passing a spending bill but president is unwaiverring in his commitment. he's going to secure our border he's going to do what it is going to take and it is not just about immigration. it is important. but let's also remember about more than 1,000 pounds of heroin and fentanyl poured over that southern tabered to pollute our neighborhoods to threaten our familyies last year those are kind of things that we have to remember why it is important to secure border. that gang members thafn stopped

from coming over, so the president is going to hold firm. he'll look to negotiate, but you've got to have a willing partner and right now it is -- us offering other option and democrats just saying no. resistance is on in full force. >> mark thank you very much e hope you have a great christmas and see you again real soon. >> you too. check equity futures because we continue to hover below all 300 point on dow. nasdaq down almost 100 points remarkable session all of the indices so perfect setup to see if buyers can emerge that stock has taken a huge hit since going public but there's a new partnership with the bigging company you know, might that be thing that turns thing around with blue apron we have the full details coming up next.

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switching gears weight watchers teaming up with blue apron what's going on christ christina >> makes meal kit preparations and then maybe we've covered it before but they have suffered quite a bit. their stock has been plummeting right today at 78 cents public at 10 dollars so they've realized they need to step is up game and join forces with weight watchers and didn't disclose material of deal but belay apron will pay fees for their subscriptions so this is potential access to people that are part of weight watchers it doesn't necessarily equate to people buying the blue apron meal kit and facing tough competition you have chic chick-fil-a into looking into meal preparation kits overall company i look at analystses just ratings you've got 14 analysts covering this company zero buy at moment company value at 151 million.

one company that should not have gone public not every company you heard of makes good ipo weight watchers up. so both need a spark. speaking of redskins now backed out of a deal with huawei what's going on with that? >> huawei going to provide all of the stadium you're seeing there free wi-fi for fans when they went to see redskins game, however, government official complain to redskins and then they canceled it think of big senior officials and washington group political guru that hang out in sweets right and we know that -- huawei was considered a national security threat as well. so that's reason why that deal is no longer going -- >> report out this trump may use executive order to stop huawei and zte that's something to keep an eye on big with that story. market opening shortly buckle up

a wild ride but don't panic we're with you. more "varney & company."

opening bell is beginning to ring and less than one minute folks let's put all of this in perspective one thing to hear had a lot today is that bear markets have sharp rally toup side once that will be frozen into your brain 120 rallies or big days up two and a half percent or more. i guess that conclusion there is that both buy into rallies don't believe in rallies one thing no one is probably going to tell you, though, historically happened 100% of the time believe it or not, that after a every bear market we've had in history of america we went back to all time high now things happen today, obviously, but

remember that folks as you're thinking about making poor decisions. we have ten seconds left all eyes are on this market particularly tech names with led way yesterday constitutional discretionary let's see what they can do also today now opening bell, as we populate board see winners and losers automatically united technology kat pim particular to downside one winner ironically verizon with a -- beef with disney, and disney now in the number one position so their job is become and ford. but down 291 this is less than anticipated an hour ago help 20 minutes ago. going to be another wild ride and find marketing and generally in settings most don't make any trade until at least 10:00 and these days you want wait pl all 30 dow stocks on downside and s&p 500 off 1.4% right now 33 points and then nasdaq 360 point

gain yesterday a monster game given back one-third of thatted a open and an eye on big tech names and biggest names that have poured this market for a couple of years. up and now have been powering this market to dunside alfa bet google biggest lose per percentage wise there and oil up 1.5% supplies globally a massive massive building ironically we turned on 9 more rig last week i'm not sure why. joining us now scott martin david, christina, all right david. i want to start with you. record percentage move yesterday -- what does it say to you about this market where do you think you go near, long term? >> record point move yesterday you mean, and yeah, it was a great example as to why people could not be trying to trade in and out of this thing because you miss a day like yesterday you potentially miss like a third of the recovery. right? it is just --

too important that people sit still not overreact and trade out and come back later i mean 1100 point in the day can you imagine someone who goes to cash right before that and come back in few days and volatility will continue. there's no reason for the market to find any footing right now. half of wall street is not even working we're going to get into the i can and see a fundamentals can take back over from here. scott your thoughts? >> i don't totally agree with that. i get premise you're right david is right you can't pick bottom on monday and get tops on tuesday that's true or wednesday whatever it was after the holiday but look the reality is there are things you can do, though, because he's right. you know volatility is definitely back market psychology is definitely poor for us charles has been talking about this for last few days weeks there's somethings like fixed income that are working and utilities that are working. gold is working.

so -- to mitigate volatility i guess you don't necessarily trade in and out but you can take off positions that maybe are are seeing bounces on days like yesterday and get them to stop is that's working like gold is -- >> what about cash? >> another place to do that because charles, as mentioned you know volatility is going into the end of the year and stuff that get thrown out with baby, bathtub and bath water that's what you should have your cash for. >> to many comments first gold is seeing a 5 month high with a bigger upswing that's the case when we see markets plummet as we did on monday. i'm hearing some say this is a sucker rally that was yesterday the fact that everybody bought in thinking they could ride high and i was on new york stocks exchange yesterday and what do you think is catalyst for all of this the retail sales in is it the fact that jay powell position is 100% confirmed and not going anywhere? and most of them have no idea,

no idea and it was mostly due to headlines lower volume. >> well that's -- that sounds like no idea as same answer why things were dropping 600 points a day previously. fact the matter that up and down volatility what we know is not answerable in three day period of time. >> precisely over three month, six months we have trade war. we have the federal reserve and i would argue it is not about interest rates are with the federal reserve. it is about about balance sheet and their continued insistence all of a sudden you get a fed that starts is to down talk balance reduction in 2019 is becomes a fundamental reason for markets to rally i don't agree at all about gold by the way being a place to go trade into during this. gold does not have a reverse colation with equity markets historically with a nonor correlation with markets.

you know listen -- >> now over last two weeks over last two weeks it has gold is down 40, 40% over 7 years. gold is down 40% over 7 years. market is up. a negative correlation. idea, though, that for average investor out there not a professional trader to kind of -- sell a court holding and then the buy gold and somehow get out of it in right time to get back in court holdings i think that's where people i know someone with who sold netflix at the open and then he ka l toll my office and said did i make a mistake at 1:00? so people are grappling with making a lot of panicky moves here. of course white house economist he tried to scoop that out and mention that fed chair powell here to stay go ahead and markets did react to that. that is one of the reason ares market rally yesterday and no doubt about it. no one wants to see or more instability no one likes a war between the white house and federal reserve. although ting that white house

david, and makes good points about the not only rate hikes but to your point also taking 50 billion dollars a month of accommodation out not knowing where it is going to go could be a mistake. >> yeah. i think we have to kind of separate why the market might have responded about chairman powell being on stronger footing and what had kevin said yesterday. from the actions of the fed itself, and in other words groning that market is saying we approve of everything fed is doing market clearly would love for the fed to we understand tht it doesn't make market right about it. ultimately i think that market, though, does not want to believe that there's more sort of instability and more maybe shall we say poor behavior poor choices coming from the president, i mean, he didn't say this so i think he was falsely aof it but if markets believe trump was going down this path of trying to fire the federal reserve president an chairman it would not have been good. >> scott david made the point

voiced with fed policy, and listen, i think he has a right to be disappointed. >> i agree, and i think jay powell has something going for him because he believe he's about 5'10" or 11 and didn't come into play with janet yellen kidding aside charles i think he got the kiss of dakota. 100 confidence that job is safe means he's out of there in six months. [laughter] >>let's talk about politics a little bit shutdown scott. listen i don't think the shutdown will have any impact on markets and i don't think it impacts fundamentals certainly not in a long-term. nevertheless it is a great headline for headline writers to talk about and they use as a pileon mechanism like everything else out there. so what do you think where does this shutdown play with respect to way you're investing? >> i agree that media has loved it charles they've run with with it and now as it impose on it can be a lead story. david is right, though, this

again goes into that bucket of kind of -- questionable behavior maybe uncertainty, and things that just mess with the markets. so look at charles ting that shutdown is wearing off. however, you know we've had these before we've had dozens of them in the past and here's the story kids. every time guest all of them yogi bhara are would say treasuries have rallied we've seen that again and gone up as government shut down and at this time i don't think it is any different. >> david, real quick any thoughts on this shutdown? >> well with i completely agree it is a total nonmarket event i'm not convinced investor or noninvestor don't care in they don't work for a certain leftist news network i'm not talking to anybody. who is bringing up the shutdown of all a of the issues going on with the market right now. all of the voltity everything we're doing positionings portfolio into 2019 around our

expectations and what trump will do with trade wars all of the things last thing on our list is government shutdown so i completely agree it is a noninvest for investors. let me shift gears i'm looking it look like this -- yield, this yield curve situation are are we at 275 did we hit them for both? 275, ten year 275, two year -- the dreaded inverted yield curve potentially signaling recession in year from now. year and a half from now. does this change anything for you scott is because this is something wall street was saying that they were worried about. starting back way back in february. >> no, not at the moment. other than fact what it is concerning. i mean it is rn concerning talked about on segment here about how fed is reduce aring their balance sheet and still hawkish. they just raise interest rates about about a week ago now so -- market is telling us something, and maybe it is just that hey things are are softening and fed

needs to pause which i do think we're going to do in q one but i'm not sure if it is too late. >> david, you know, the fed speakers come out all a of the time they never stop talking ever -- you know, any given day up to four maybe speaking somewhere should they take this opportunity very soon toe make it clear to all of investors on -- on the no one -- nothing unequivocally that they understand they've got the message and they will find a way not to destroy this economy. >> yes. i have two answer as to that charles they need to do it. i think even the white house probably needs to issue something i have a lot of confidence in my dear friend mary kudlow to get out in front of this to president with message about what they want to do with a gross message in 2019, however, on the feds messaging, they also cannot look as if the ka fitchlating to stock market. and letting the stock market drive them. i look back 20 years ago, one of

the worst moves in federal reserve history when al opinion greene cut rates in a screaming good economy, with that one setk in 1978 called it greenspan to the as you know and i'll tell you i don't think that fed can afford to get rid of credibility either. they can let their actions do the talking. slow down on this balance sheet reduction, as far as the yield curve inversion, though, aisle not sure if it is inverted or not i'm the sitting here talking to you but i'll fell you it is not a timing predictor, i mean, length of time by which -- >> the thing is it became a big deal on wall street dave thank you guy very, very much russia with a supersonic miss one capable of carrying nuclear weapons one that vladimir putin saying cannot be details and

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perform vertical and horizon and hit the target on time within the ranges combat feed so scary stuff coming from there they're calling it a great success and great victory as well. >> you know, what i did at the trump administration once it changed it shall you know get rid of old agreements because russia or violating them. you've got to wonder because this sort of technology exist when we sign on to a lot of these weapons agreements then, you know, i feel like they perhaps violate them but another provocative move from vladimir putin. but you can consider what iran in equation too what do we do once you see this violation or you see something like this and them progressing same thing with north korea. based off of your experience, how can that country like the yiet go after them now? because look what they're doing it is not just "newsweek." >> well the trump administration wants to get us out of some of these bills and they're getting pushed back at home which i find considering considering

potential ability of that one weapon. thanks. swing of the markets these days a lot of market watchers including stuart varney blaming xiewrt trading joining us now theresa goodie former fec attorney. let's talk about this high frequently trading the algorithm because i look at 1987 after that crash there was a brady report of 304 report page to congress and squarely blame it on computer trading portfolio insurance, and here we are this many years later, still by many accounts being victimized by computers can anything be done? >> i think it can be done and when you have 400 point slide and changing in a market in single day that's indicative of a market structural punish and i think you and stuart and secretary mnuchin are right are on that this is high frequency trading is huge for this and we

need exposure to see what algorithms are with disclosure regime to fec to protect orderly and efficient markets to protect investors and we don't have right now and i think it is undermine that so being able to see what high frequent trading all gore -- and wind falls in huge slides, is something that i think we need to look at and some market structural issues need to be rules need to be changed. >> here's thing on wall street you have typically two defenders those folks who make a lot of money from them and those long enough around to say ultimately these devices destroy themselves and users so just sit back and wait for that to happen meanwhile not doing anything for average investor confidence or portfolio is it? >> it injurying investor and whether they explode or implode or they destroy the market

before that can happen is another issue. i think we need to take some action now and not let them run wild and you know there's this momentum they just -- they exasperate any kind of price movement and remember prices you know that secondary information so there could be some minor punish or something that would have a minor impact on the stock market. and we're getting these overblown reaction ares because of the high frequency trading those all gore riffles kick in and start selling off they sell high, and then average investor is going to act more quickly. and sell to minimize losses than they are to get back in the market and then for gains. and so -- >> there's no doubt they manipulate market triggered and trigger each other after a certain point and overall psychology of the market so you started off by talking about manipulation they do manipulate the day-to-day movement of markets and particularly to downside. so what do you think because

when i have -- we have a minute left do you think that administration besides complaining about it will do anything about it? >> i think so. i hope so and i believe that secretary mnuchin said he was going to have them look into this which includes fec so we need to gather information we can't fix system until we figure out what's wrong with it and exactly whatting gore risms are doing and how they are impacting the market and then we can come up with smart regulation to try and fix the structural market structural issues that we're seeing. because this is an obvious market structure issue. >> there's no doubt about it. theresa goode dee thank you vooch. appreciate it. we're tradings now with lows of the session dow jones is industrial average off 406 point all of the major inked indices up but ibm is biggest winner great story for you, in fact, a veteran owned business nine plien afailure to make patriotic theme clothing taking off and

ceo says it is thanks to trump economy. he's going to share his story, next. that chevy won a j.d.power dependability award for its midsize car-the chevy malibu. i forgot. chevy also won a j.d. power dependability award for its light-duty truck the chevy silverado. oh, and since the chevy equinox and traverse also won chevy is the only brand to earn the j.d. power dependability award across cars, trucks and suvs-three years in a row. phew. third time's the charm...

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we've got a great feel good story for this holiday week today a veteran owned business that is making money joining us now he retired from u.s. army as captain now owner of nonline apparel let's talk about how well business is doing and going so well first of all congratulations and thanks for your service. >> thank you very much for having me on. let's talk about business so it has gone crazy since 2012 to now we've gone from my garage to about 190 employees it is patriot theme -- lifestyle brand and patriotism is cool again. it is one of those things that you want to talk about. it is a logo is iconic for

giving back. and organization is very, very big into giving back to communities especially veteran community. you know, things have changed dramatically since the vietnam war which my father served now to troops are appreciated you know if you look from 1975 to now only institution or group we have greater belief in are troops i think it is a beautiful thing but idea that it is such a successful business a lot of people would be surprised. >> yeah. no -- who is buying it? people buying it just because they're best or folks who want to support? >> it started off with military units, obviously, we're doing a lot of patriot apparel for organizations i served with so if i was in special operations we have rangers sf. delta guys, but then it was friends and family members first responders it was patriotic americans they wanted to know if it shall what we go through. see idea is creating a conversation to bridge the gap between those who serve and those who don't and right now

we've got a lot of cool initiatives outside apparel company with our foundation, but we're trying to put our money where our mouths are. but -- we're trying to end veteran homelessness right now. that's a big epidemic that -- you know, general started initiative in 2009 to combat that and his initiative was to end veteran homelessness he took it from 75,000 toe down to 40,000 presently and we're getting pretty close and we have to continue that initiative. >> let's go sol of the reason for this success thoi is just this booming economy too. right it sort of this same type shift including your business. >> absolutely there's a lot of excess cash up there and a individuals who want to give back to those who have paved a lot to allow us to live in the amazing country in world an they go and donate to our foundation so that we can give back to the individual we're 100% volunteer for foundation. so we actually take the community we bring it together and we're building houses on our property. the idea is to --

think locally act globally. >> over 100 employees. and business since 201 own not going to cover. >> absolutely. congratulations. great, great to hear stories like this and more importantly, what's behind it you know that you're giving back for all of the right things. much more success. see you soon. folks let's get back to marketses to check on that big board we open down 300 points and more or less gripped since in 411 point two key pieces of economic data breaking at the top of the hour the latest on consumer confidence and mortgage rates it could move these markets so we'll see. stay right there. as second hour of "varney & company" is just minutes away. a business owner always goes beyond what people expect. that's why we built the nation's largest gig-speed network along with complete reliability. then went beyond. beyond clumsy dials-in's and pins.

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7:00 a.m. out west. dow jones industrial average, we're off 347 points. 100 better than the worst. we're still under pressure as we have been all morning long. put it in perspective. it has been a wild ride. half a day on monday, down 650 points. we rebound to the biggest point gain in the history of the market. nowhere near the biggest percentage gain nonetheless it got our attention. we have breaking news. fist on consumer confidence. 128.1, that is significantly below the estimate which was 134. we have latest read for you on mortgages. mortgage rates. >> 4.55 for the 30-year mortgage. last time we had the number, which was early decent, 4.75. we've seen it fall. over the past several weeks and two months continuing to fall. 30-year mortgage. charles: it is interesting,

though, probably good news for the housing market. >> that is good news for buyers, but is it signaling people are buying long-term bonds, you know at a loss of equities, right? charles: we'll see. let's bring in gary kaltbaum, from kaltbaum capital management. he is the president over there and fox news contributor. gary, let's talk about the consumer confidence number. i haven't gone you the details. that is where you want to go. headline is 131. i find it amazing hit all-time high at 144.7, 18 years ago. even though the market doubled since then. we never regained our full confidence as a nation. starting to slip again. >> let me say this, expectations i've been saying will be the norm to go down right now, and part of consumer confidence numbers is the stock market. so if the stock market is going down, that will go down also but by the way, they are very still

high numbers so not the end of the way. on my way driving to the studio, you said one most important thing every investor needs to know about markets like this, they always end and we always have new bull markets and we go to all-time highs. only issue how long it takes and how far it goes. every investor, every viewer of this show needs to know that. charles: thank you very much. it can be painful in the meantime. >> oh, yeah. charles: we both hold hands all the time. that is exactly what we try to do here. i find it interesting, we're edging a little higher since the number came out. to your point a lot could be the noise, like the stock market noise. on the mortgage rates, listen, i'm not sure what the fed thinks about the housing market. we heard jay powell allude to it, but never into detail. interesting enough, the last couple housing reports came in better than expected. because of the point you made, expectations had dropped. where are we, and how important is our housing market regain its

footing? >> i don't think we have a problem with interest rates on the housing market as we came down to 2.7. i think we have a affordability issue. prices in many areas gone way out of bounds to the upside. i do a comedic act, i think silicon valley, a wooden shack that went for $900,000. so things gotten out of hand in certain places. things should stablize. at least we hope it stablizing. we don't need another 08 because all heck breaks loose. charles: with respect to the so-called wealth effect of course experts say it is centered around value and more of a nest egg than the stock market. does that play a role at some point even with the consumer confidence number? >> i think it's a combination. especially a move in the market like you're having right now. it is very noisy, charles. we dropped 4268 dow points in 14

days. that is noisy. it gets people thinking. instead of looking at their financial statements, stock market statements every three months, you're looking at them every month, going online every day worrying about the next tick. i think that goes into play right now also. eventually the markets will stablize. hopefully at a a given point in time, things turn up and turn better. i think right now, we're a little bit on the psychological soup because of the double-whammy. charles: let's talk about the markets ability to predict recisions, right? we both agree, listen, near term could be choppy. longer term we know what happens historically because i think we're at a point now wondering what the market message is with respect to the economy. i think this is black monday, it was more psychological, the fundamental. in fact we didn't have a recession almost three years after that.

can the market trigger recession even if one is not in the works? >> this time yes only because i think a lot of the economy throughout the last 10 years because of central bank intervention has been based on the wealth effect so that has to be watched very, very carefully now. i think trillions and trillions of wealth have gone by the wayside not only here but around the globe. i have to mention that. even with our 1000-point rally yesterday the german dax which is very important to my work, most of europe is at new yearly lows and actually down markedly today. so there are some things you have to watch related here that do give you pause. the good news is, i can count about dozen times in the '30s recession did not happen after bear market. '98, s&p was down 200 and change, and it was not a problem. i think we're the best of everybody out there. if we go into recession then there will be really big

problems. i'm calling probably at worst, 1 1/2, 2%, gdp. so you know markets are telegraphing some things as gdp expectations are down. germany, europe, already said contraction for the last quarter charles: gary, always great having conversations with you. thanks, man. >> happy holidays, charles. charles: oil is a big topic. it is under pressure again after nice rebound yesterday. i want to bring in former shell president john hofmeister. there was potentially speculation yesterday of an emergency opec meeting. obviously this dramatic decline in oil prices they will have to do something to defend it and get it higher what do you think is going on and what would the implications be if they had a emergency meeting? >> charles, we have to separate into two worlds. one is the trading world, traders just want to do business, they follow the price

up and follow the price down. that is how they sell their barrels. let's move over to the second order, which is the producers. the producers absolutely like opec producers or free market producers here in the united states they have to think about short, medium, long term. with prices so low, they're primary thinking short term at the expense of medium and long term. which means they will contract their capital spend, they are going to reduce the number of drilling rigs out and available and they could even lay off staff. we can't sustain 42, 43-dollar oil and keep the permian basin going or other oil shale fields in the u.s. opec, as saudi arabia said couple weeks ago, they're setting budget as a sovereign nation at $80 per barrel because they can't survive at less. charles: is that --

>> 80 brent, you're right. but you're right they need 80 to operate. 80 brent needs probably 70 on west texas interimmediate. charles: help us out. i want to inner screen, jump in for a second, there is also the political spin. a couple weeks ago the narrative was saudi arabia is somehow stabbing president trump in the back after he sort of blocked for them on the khashoggi incident by even considering manipulating oil prices higher. this is their main product. when you drop this dramatically we have to anticipate some intervention at some point. >> yes. i think what the president did in order to keep prices low, leading up to the midterm election actually harmed saudi arabia because at a the same time, if you recall, he waived at the sanctions on iranian oil and the whole oil world was prejudiced or premised i should say on the iranian sanctions setting in and a couple of million barrels coming

off the market. that didn't happen. so we got very low prices leading into the november election. now saudi arabia realizes, look, we've been had. so what do they do? they side up with russia. between russia and the saudis they are cooperating like they haven't before and i think we're likely to see additional steps taken by opec to reduce production, to get that two million barrel surplus off the market if the iranian sanctions are going to stay waived. i think it will take three to six months to correct the surplus but i think we're looking at higher prices past mid-year next year. charles: john hofmeister, always great talking about this. appreciate it, john. >> thank you. charles: now there is this, mcdonald's trying to reverse slumping sales at breakfast time. what are they doing, kristina? they had hot coffee and a bunch of things -- >> three years ago launched all-day breakfast, which i personally think is greatest thing ever.

what it did the sales throughout the day. the most important thing for them is the breakfast sales. they will launch new products like a dollar breakfast sandwich, only a dollar. they're testing out muffin tops which i think are great and coffee cakes. this is only on demand. not on the menu. triple breakfast slack, sandwiches extra meat, you have to order on request after regular breakfast hours. they are fighting for a shrinking market as burger king steps in chick-fil-a and mcdonald's is working on healthier options. charles: we can always go there for salads. chris h kristina, thank you very much. there is a happy person in new york. powerball ticket drawing was $294 million. remember there was no winner in the megajackpot drawing. the prize is tomorrow night. up to 348 million on that one.

day five of the shutdown, the president is digging in. he is tweeting, have the democrats finally realized we need border security on southern border. we need to stop gangs, drugs and criminals coming into our country. do the dems realize most of the people not getting paid are democrats? charities across the country are expected to take a hit because of the new tax law. we'll tell you how much money they're expecting to lose right after the break. ♪ most kids today will have jobs that don't exist yet. the engine management systems coordinate with autonomous vehicles. financial data, so now we can predict the future. our new flexible propeller design. by collaborating with public schools on a program called p-tech, ibm is helping students build the skills they'll need for tomorrow.

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charles: i think this is the low of the session, down 470 points. consumer confidence coming in at 128.1. the street was looking for 134. ironically the dow was off 370 points after the news broke. it rallied 100 points but now given all that back. we're seesawing back and forth. more pressure to the downside. gold has been benefiting as some people sold stocks looking for the safety of gold. at least the safety of the gold has been out there for a long time. it is holding up pretty good. there is bitcoin. almost everyone bailed out on the cryptocurrency craze. you know what?

some say it could still work out. not today. cherries are said to be taken a hit from president trump's tax cuts -- charity. kristina: 13 to 20 billion-dollars less than according to research. michael nielsen, vice president of the communications for association of fund-raising professionals. what they notice, the 2017 tax cut and jobs act which increased the standard deduction that people could take on federal tax returns. also had about 10,000, we talked about this quite a bit on network, amount for state income, sales and property, all that to say, people most likely will be itemizing their deduction for charitable gifts. because they're doing that, changing everything around, it is going to result in lower donations going forward. it is said because you have that story, lower charitable donations. you have stories from toys not donated as many because of

toys 'r us closing. charles: put me down i think the story will be wrong. kristina: just because of the strength of consumer? that is what we want to hear. charles: thanks a lot. president trump is not backing down. he says the government will remain shut down until he gets funding for his worder wall. go pac chairman david avella. digging in on the strategy of this topic, backdrop of a government shut down is this the right approach? >> often said making legislation is like watching sausage get made and now we're doing it with a broken grinder. government being shut down isn't good for other side. ultimately the democrats take the house here in a few days. this isn't good across the board. we're ultimately doing it. charles: why isn't it good? >> the markets like stability. consumers like stability. right now. charles: some consumer out in wisconsin didn't go christmas shopping?

>> no. that is not what i'm saying. they like to know government is functioning. charles: it is functioning. >> democrats in the house and senate, holding up funding, $5 billion when they already voted for $25 billion. charles: that is the crux of the matter here. the same people say this will cause some sort of economic harm or try to equate it to the stock market i think it has zero to do with the stock market are the ones also saying it is not worth putting a few billion dollars toward a wall. they also espouse or talk about border security. i don't know what chuck schumer is talking about, i don't think drones will get the job done. >> you're looking at a situation whereby department of homeland security numbers, you had 3800 known or suspected tariffs stopped from trying to come in. you had 17,000 criminals. 1000 gang members. in areas where the wall is up, they have another weapon or another tool i should say to help stop those we don't want in this country coming in. it is $5 billion. democrats have already voted for

$25 billion to build a wall. why now? the only reason now, the only difference, now you have president trump who they don't want to give any victories too. charles: is there a chance for a compromise? feels like the trump administration already tossed out the idea they're willing to come down a little bit on this number. will the democrats meet them halfway? >> let's hope so. let's also keep in mind these new trade deals, projections are, it will bring more money into the government, which the tax cuts are already bringing more money into government. the federal government has more money than it had last year. there is money to do it. it just takes political will to do it. the president shouldn't compromise too much. this is a national security issue ultimately americans support knowing who is coming in and out of this country. charles: david, great seeing you. >> great seeing you. charles: merry christmas. >> merry christmas. charles: the retailers having a great christmas. posting biggest holiday numbers in years.

one retailer not taking part. jcpenney hit a dubious milestone. yet another one. we'll tell you what that one milestone is right after the break. ♪

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charles: folks, checking on the big board, momentum build together downside. we've seen this before, right? proverbial snowball turning into a boulder picking up momentum as we take off. selling begets selling. tesla reimbursing customers on tax credits for late shipping. up nicely yesterday. giving some of that back today. early data out, showing holiday retail sales strongest

in years. you have details. kristina: this came out from mastercard you saw 5.1% increase in holiday sales compared to last year. that is $850 billion. also 19% increase in online sales. sounds like great news. when i was speaking to traders on the new york stock exchange yesterday saying that is positive showing strength in the consumer in terms of confidence. however you walk around, you shop, i love walking around, shopping, getting a discount, a lot of discounts are so wide. gap, for example, 75% off. you have to question margins on a lot of retailers. it is still premature to talk about whether we see the massive holiday season without having numbers. nonetheless very good stuff for retailers thus far. you saw it. people shopping in the stores. charles: apparel up 16%. department stores were up i thought was interesting from the mastercard report. there was a lot of good nuggets in there. listen, the good news for

investors, a lot of the names have been beaten down. i looked at consumer discretionary. these big bets that there will be complete doom and gloom. may come up short. we'll see what happens. but the consumer really holding this whole thing together, 2/3 of our economy. kristina: i wonder if the consumer is holding it with credit card debt? charles: i look at numbers, mastercard, visa, every single quarter. we're using credit more than debit. debit has come on of late. there is mentality, like postrecession mentality. people will not get over their skis. there are two things to look at, spending, debt as percentage of disposable household income. things like that. those numbers are relatively low. they got low in part because palm lost their homes and other things during the great recession. consumers a lot of them are spooked. i don't know that they will to nuts like they did before,

particularly spending money they don't have. >> mentioned the percentage, if you look at actual american household debt, that is concerning. that is growing quite a bit. charles: you have to go percentages though, right? of income. kristina: disposable income. right, household income. charles: look at two numbers. both near all-time lows right now. kristina: agree. you brought up retailers getting smashed. jcpenney too. you love that. don't you love that? you love talking about that company, why? charles: penny. kristina: literally below a dollar. they haven't seen that since 1929. they have been around 110 years. i didn't know what the c stood for. they have been struggling for quite some time. supply chain issues. lack marketing. lenders suing them in december. charles: part of that is creative destruction, poor management, all these big retailers from the beginning of time ultimately come up short. and you it happens in the age of amazon. one day, 10 years from now, 20

years from now, 50 years from now they may be talking about the demise of amazon. believe it or not. kristina: let's hope we'll be here. charles: meantime more evidence that china's economy slowing down big time. next you will hear from someone who says president trump, really weathering this trade dispute better than xi xinping is. in our 11:00 hour we're joined by the man who invented the narcan nasal spray to prevent opioid overdoses. he is working on a new product to treat cannabis abuse. that is a big topic at the right time. he will tell us how it works. ♪

♪ ♪ love, love me do kristina: the british invasion -- [inaudible]. i love it though. charles: of course, folks, every day we play the beatles in honor of the beatles and of course stuart varney. for a moment, when paul mccartney was with president obama. the music is too good to boycott them forever. dow jones industrial average is down 500 points. snowball boulder thing is right imagery. we start to go down, selling begets selling. if there is a way market makes a stand it will be remarkable. unfortunately these kind of markets must endure. big tech names led the way up. sort of mask ad lot of problems with the market earlier in the year. no longer. they're leading the way down. amazon posting record-breaking holiday sales.

i want to bring in constellation research founder, ray wong. a lot of people wondering, amazon 700 bucks from the recent high. could it be time to start buying? no definitely. we're seeing a lot of momentum. q4 numbers show it. there are a lot of interesting pieces that make amazon interesting other than retail sales kicking up. charles: i can tell you when all the selling began, when they gave guidance after the last quarter said they would grow 20% in the fourth quarter. year ago they grew 30%. for wall street that's a red flag. meanwhile all the other companies, brick and mortars are learning the omni channel approach to business. amazon is taking heat, not necessarily coming clean where the money is coming from. sec want answers. investors want answers. we all use it. you would think it's a no-brainer but it is under some serious pressure. >> yeah, definitely is, charles, you're right. there are a couple of components.

the big piece is the retail operations that we knee but there's also the ad business that is growing, that they will be number three in digital ads. they are right now, taking anywhere between 63%, between facebook, google, amazon. that is like three companies in that space. more importantly it is the cloud business. that is a huge business where they take somewhere between 23 and 24 billion for the year just in enterprise public cloud services. those three alone what is driving it. thethe abs side of the businesst some point will be almost as big as the commerce side of the business. charles: aws bring a big chunk of profits. some quarters only profits were brought in. wall street is worried that microsoft's cloud business grew faster than microsoft or or amazon. is there suggestion that is the wrong cloud play? maybe microsoft is the cloud play? i think you said the stock will go back to $120 next year?

>> when you look at the cloud business, this is big business. our estimates show this will be $300 billion by the cloud business by 2020. that is huge numbers. market is growing over all and they're taking the chunk. amazon is twice as big as microsoft, which is twice as big as google, right? those are the three big players in the public cloudmarkket. charles: you do like microsoft here as well? >> i do. microsoft for the same reason i like what is going on at amazon, it has both a cloud business. they have got both a b-to-b and b to c business. microsoft has done a lot to change its image in the market but going after younger developer base with acquisition of get hub and acquisitions of backers behind "minecraft." they are going after younger communities and done a great job with that they are growing the xbox franchise. you will probably see through the christmas numbers. they have done a good job. there they're balancing out what is very important, not just b-to-b but b to c, most

important part of digital, capturing data from consumers and enterprise and putting it into next generation products. charles: let me ask you about google. i thought three things for amazon, is retail, amazon and cloud. some say amazon making huge moves into search, that it pose as greater threat for google now than anyone thinks. where do you think google is going from here? >> charles, that's a great point, if you have the data you're actually in the search business. google came at it the other way, starting with search and going into other areas but with google what we seeing they're revamping their cloud business. they have a new ceo taking over the cloud business. he came from oracle. he will start in january. he will revamp the cloud business. the second piece is all the other things inside alpha the about. all the things from the wireless balloons, the drones and driverless cars that is popping up. there is a lot of innovation on the back end of google. we see the search piece. that is the one-trick pony. the question, can they go cloud

or commerce and all other innovations they're looking at for quite some time. charles: it is interesting, ray, because the one thread goes through all of these, you mentioned cloud, but accumulation of data and ability to monotize it. you know governments on both sides of the atlantic, perhaps around the world making moves toward these companies to mitigate what they do with people's data. does that change the business models and investment thesis? >> that is the downside risk. the question how much privacy comes down on companies and their data. the solution is rethink data. think of data as a property right, we might have something very, very different. deland as a property right. inventions and ip have intellectual property rights. if we take data back, data becomes let's say a property right you can figure out not to participate. if you want to lease it out, donate it to charity. my genomics and personal data goes out there, that is probably right way to go about regulating it but i think the legislatures

through the testimony there is little gal understanding how data should be used and technology. charles: the guys in d.c., they don't have to understand it to tax it or regulate it. we know that much. ray, always a pleasure talking to you. thanks a lot. >> happy holidays. charles: you too. china, their economy is not doing really very well at all. we have an analyst says next year it will grow the slowest rate in decades. we want to bring in the dean of miami business school. john, the industrial date, at that across the board from retail to industrial, from efforts they made to efforts to get banks to lend money, making riskier loans but what does it all mean in the grand scheme of things? >> thanks, charles. i think china is in a slowing condition. it is still going to grow robustly but perhaps not as great as the growth forecasts were indicating for this current

and coming years. you look at manufacturing capacity, there is a lot of unused capacity. but i think more than anything else you look at the shift china has had to make from an investment-led economy to a consumption-led economy. the consumption take up is not occurring as fast as the chinese government and economic forecasters expected and that's where the problem is arising i think primarily. charles: isn't that ironic? >> that is a great opportunity for us. charles: before we get to the trade battle for us or perhaps the opportunity, don't you find that the most ironic aspect of all all this? china want from domestically reliance and exports to domestic driven economy and having huge barriers in the first place? it would seem it would be a win-win to lower barriers anyway to give their consumers more

purchasing power and engender the capital flight that has seen billions of dollars leave the country in the first place? >> actually, president xi xinping, if you care to believe him, has been talking all through 2018 about opening up the economy. but it's not opening up and the reason for that, there are of course two economies in economy, the state-owned enterprise economy which depends on protectionism and nationalism to cushion its inefficiencies and the so-called private sector economy where there is a much greater sense of entrepreneurship and innovation and willingness to take on the world on a level playing field. what we must do i believe is to take advantage of the moment here to support the second group. in other words, the entrepreneurial innovators who really want to reach out and compete on a level playing

field. and i think there is a great opportunity here for us to do that. charles: you know i think you're absolutely right. i'm really glad we had you on this morning. thank you very much, professor. >> thank you. charles: now there's this, the cofounder of linkedin is apologizing for funding a political group. now this group is accused of spreading misinformation on the alabama senate race using russian-like tactics. kristina, what is the heck is going on? kristina: american engagement technology, according to "the new york times" and "washington post," reed gave them lever $100,000. what they created a facebook page that they pretended to be conservatives and tried to create a divide between people online and so that is how it contributed to the misinformation in the alabama 2017 race. nonetheless, you have reed that actually, he apologized, okay, given that he apologized but he said he didn't know it was going to do that. he was funding it because he wants to fund truth. the quote he is has going on how

he had no idea, that he promises to be better in the future. he is embarrassed to learn his money had been spent on disinformation. charles: he should be embarrassed. i will say this, this gets back to the idea we're spending millions of dollars, all the endless investigations into potential russian involvement in our election but very powerful people, very rich people, who have access to our data and can manipulate us as a public might be engaged as much as russia and more as this when people say they're worried about facebook or twitter, bias against conservatism. then you have reed hoffman in this kind of a situation, again i think it is great he apologized but it is scary stuff. kristina: it is done. the damage is already done. i think your guest brought up before, maybe our data should be property right going forward. it continuously happens on social media. charles: i would like to get paid every time they use my data. right now the dow jones industrial average we're off 427

points. the nfl enjoyed a increase in ratings this year and relatively lack of controversy so far. this as the league, there are signs maybe it is putting some of its problems in the rear view mirror. we have jason whitlock coming up because there is a new set of problems that are starting to emerge. ♪ i'm ken jacobus and i switched to the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy. and last year, i earned $36,000 in cash back. which i used to offer health insurance to my employees. what's in your wallet?

kristina: welcome back. a lot of market watchers are blaming computer trading programs for all the volatility. listen to what former attorney theresa gooding told us about the tape, sec attorney. >> 2 to 500-pound slides and two to 3% changes in a single day that is signal of market structural issue.

this is high frequency trading has a huge impact for this. and i think what we need really, we need disclosure to the fcc to see what the algorithms are. i realize there is some proprietary information there. this is disclosure regime to the sec to protect orderly and efficient markets and protect investors and we don't have that now. ♪

charles: checking on the big board. listen their buyers are showing up. something we hadn't seen last couple weeks. not enough to entice a lot of people off the sidelines. look at this, off 333 or up from the lows of the session. it will a long way. espn's "monday night football" is the most watched series on cable. it posted a an 8% increase over last year. come on in, "speak for yourself" host, jason whitlock.

jason the games are exciting, scandals seem to fade away yet a lot of things are starting to percolate with respect to the nfl as we head into the playoffs and the super bowl? i think it has been a great year. the only small complaint i would have about this season is officiating. pass interference officiating, but the focus has been on football this year. the national anthem controversy has been put on the backburner. once you focus on the games, football will take care of itself, because football is the greatest sport we have here in america. i think it is the greatest sport in the world. it is compelling, highest stakes. so yeah, it has been wonderful this season, just to talk about football, and outstanding players, patrick mahomes, drew brees. we've been focused on the players and the outstanding play and it's been great. charles: i agree with you on everything. i would add i think roughing the passer has gotten a little bit

crazy. at some point they will be wearing flags instead after helmet and shoulder pads. that is another thing. >> what i say at times we'll eventually introduce the referees before the game just like the players because a lot of times they're just as important as the players. charles: they start getting nike contracts, i'm really going to be worried. one thing that has bothered me last couple days, entertainers pulling out of the super bowl. a lot of pressure, lebron james equating nfl owners to slave owners. travis scott, young phenomenal rappers pressured by his peers, al sharpton putting on pressure and cardi b pulling out. where is this coming from? >> social media, driving people insane. driving people to do the dumbest things you can possibly do. i'm trying to understand the pressure on this atlanta rapper, this pressure from the black community on social media. i don't think it is the real

world. don't participate in the super bowl. the nfl is 70% african-american players. the nfl is producing more black male millionaires than any other industry and we want to boycott it? we want to pretend like the nfl is evil and our enemy? are you kidding me? all because colin kaepernick isn't? the nfl? one guy is this important over the all the amazing growth and all the amazing benefits we received from football? it is absolutely ridiculous. it is driven by social media. social media baits people into the dumbest positions. charles: i hope travis scott recalls to, i really do. real quick, we have less than a minute to go. bowl game between texas, in texas and boise state, boston college canceled less than ten minutes after it began. they blamed lightning. people upset about that.

what are your thoughts? >> it is disappointing i was a player i would be disappointed. you taken away the bowl experience from those kids. most of those guys played in other bowl games previously but would play in bowl games next year. you build up all season to the great bowl experience it doesn't happen. the same goes for plans that traveled, quite a bit of honey. i don't want to say gone overboard but really doubled down on player safety. and you know, when i played college football, i don't remember all these weather delays that we have now and rules we have in place that, if lightning strikes you have to wait 30 minutes before you play again. i get wanting to be safe, but sometimes maybe we've gone a little too far. charles: you go back to the old three yard and a cloud of dust era, jason. things have changed since then. thank you, buddy, see you real soon. >> thank you. charles: check on the big board. the dow off 290 points.

we were off 500 points just five minutes ago. volatility is here to stay. market making a better stand than it had in previous sessions. president trump reportedly planning a major troop withdrawal in afghanistan. up next we'll talk with someone who is warning the president pulling out there would be similar to the mistakes president obama made in iraq. ♪

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charles: president trump making surprise visit to iraq yesterday. a first trip to a war zone in president. while there, did speak to the troops about his position on syria. roll tape.

>> i told the generals about a year-and-a-half ago, i said let's get out of syria. they said we have more time. yep, you have another six months. let's get out of syria. let's bring our young people home. charles: bring in james carafano, vp of national security and foreign policy at the heritage foundation. first the importance of this trip at the president? >> we have tradition of presidents visiting troops in the combat zone. great that the president did that i also thought what he said really, really important. i think this is the big problem. nobody thought having a permanent footprint in syria is good idea. really dumb idea. the president is right to transition out of that footprint. what the administration did do, very good job on this trip and explaining exactly how we're going to do that and how we were going to protect america's interests. a lot of positives out of the trip that were really ignored. charles: i do remember president, candidate trump was

running. one of his criticisms he thought the military shared too much information about things like that. our next move, what we're going to do, where we're going to be positioned. is it possible that administration has a policy and a plan, rather, but just doesn't feel the need to share it with the world? >> well i think there is a middle ground there, right? you know, roosevelt was very clear that we were going to invade western europe. going from england and invade the continent, but didn't lay out the plans of d-day. i think there is information you can share to let people know you have a plan in place that is going to work without giving details that will aid the enemy. i thought mattis' criticism in the letter was partially right. you have friends and allies, you need to speak clearly and consistently. i get the president is not a conventional statesman. i don't have a problem with that he runs the federal government. the federal government has to run clear and consistent messages. the rollout of what we're doing in syria has not been the best. the president was much better on

trip to iraq. charles: he talked about iraq being the staging ground to provide cover for syria. getting back to the his role as commander-in-chief and, being a civilian commander and chief, he promised americans we would get out of syria. what about afghanistan? the idea of pulling out troops there, what are your thoughts? >> well i think it is the same question. we're not fighting a a war in afghanistan. this really angers me when we say that the afghans are fighting a war in afghanistan. they are fighting and dying in big numbers to protect their country. we're largely what is called an advise and support mission, that is an important mission, but can you make adjustments to the force structure and make it more efficient for us to help the afghans. when he says the troops are leaving, that doesn't tell me anything. charles: you said they're losing big or losing a lot of troops protecting their own country. is reality that is the taliban is there to say? ultimately there has to be some sort of compromise made with

them. >> well, maybe. somebody says this is cancer. this is difficult problem i can't cure it but i can give you a pill, that can keep the cancer at bay and you can stop taking pill and die. charles: they're taking the pill and chemo and they're still dying and occasionally we lose men and women there, and americans die. that is lost cause for westerners for a long time. >> that is totally wrong. let me finish. why are we in afghanistan. one so the country is not over run by the taliban, we don't go back another base for 9/11. so we don't have another failed state that destablizes region impacts on allies in india you. charles: but is it defacto failed state already. >> no. can we achieve that with advise and support mission? yes we can. charles: i love the conversation. they have been yelling in my ear for last 20 seconds. we have to pick it up. >> happy new year, brother. talk to you soon. charles: we're watching your money. we have the latest on today's

action and what we look for also as we go into 2019. we'll be right back. ..

charles: 11:00 a.m. in new york. i'm charles payne and for stuart varney. the dow jones industrial average a 400-point. but you know, optimistic your optimism still at a high. take a listen to what white house council of economic advisers chairman kevin hassett has to say about 2019. >> we are once again at 23%. a lot of people closer than last year. i think we'll see a repeat. the data continues to be strong. a lot of momentum going into next year. charles: we want to bring in david asman. of course we know him from the host of "bulls & bears" appeared when you think of the economy in 2019? >> easier to promote the

economy, but you can't see a new story written these days without all kinds of editorial opinion put in the first paragraph. that's not only about political things. it includes the economy appeared before we came on here, so many people have already counted out the economy and they try to find a way of spinning the news to make it fit the scenario. the markets down 400 points. there's also a question of whether things might change at the beginning of the gear appeared after the more seasoned hands come back into the picture, the traders not leaving adjusted to the retailers because frankly i'm a retailer. i don't trade every day. i only trade once a year. the fact is that a lot of people like me, the folks on the street make panic decisions that are not decisions made by seasoned managers. they are a vast amount but not on vacation. when they come back i think things will settle down a little

bit. charles: some of them will be looking for bargains. i think it's a great point because i feel like bad news is magnified. it's exaggerated. the good news is always mitigated. this morning were not talking about china again lowering tariffs. july of next year that when the lawyer tariffs almost 100 intellectual property items. already lowering tariffs on hundreds of other items. we're not talking about the meeting that is assigned and when it's spoken about in the financial media these are lesser folks. david now passes or whatever. it feels like the good news is always disregarded, almost out of hand reject did. we get back to the retail investor how many people will sell the stock right now that they probably were going to get a year from now, five years from now or 10 years from now. charles: talking about a guy who sold in the morning before the market when a. charles: a lot of people appear particularly when they use the

product all the time and they know in their hearts they should does not. buckle up, david. 100% chance chairman powell will stay on as chairman as federal reserve. >> it's of course 100%. >> not in jeopardy by this president. charles: folks, let's bring in economist peter morici. the brouhaha over jaipal of wall street believes he won't be replaced. >> simply if the president could replace him, who would he put there and how quickly would he be confirmed. but the real question. powell is not doing a great job. the most critical fed meeting of the year in december with some of the statements about quantitative easing. it was in his policy decisions as much as next year in his lack of understanding which became clear. but he can't be fired.

if the president tries to fire him he'd probably end up firing himself. charles: i watched his q&a at the dallas fed and his posture was really someone who's very confident, but also someone who maybe have followed the answers. that is worrisome when the fed feel so arrogant because we know they triggered recessions in the past. >> it is the wise fool the wise will appear the wise fool. that's his level of understanding of economics. for example, the fed made a big deal through the quantitative exercise that liquidity would help boost the values and their spending. now that they're pulling back he makes a statement that afternoon at the rate increase that having a real consequence for asset markets. that's absurd. another good example is seems to be clueless as to why the yield curve is flattening. something we figured out during the bernanke air when he tried

to raise short-term rates before it became apparent. he couldn't raise rates because a lot of foreign money is coming in. the difference between our rate than those in europe and japan, it's virtually impossible to push up on rates in the united states. he doesn't seem to be quite aware of that. it goes on and so forth. it's like someone who works at barnes and noble and got one of the sheep, macro economics. and that's what is red. that's the way he sounds. he sounds like one of my undergraduate even an intermediate macroeconomic. not the suitable posture for a fed chairman. >> i think it's his insistence on suggesting there was something wrong with an economy growing too fast or at least that it inevitably produces inflation when he doesn't like the fact that there is an inflation. he's chasing something that doesn't exist. >> exactly. macroeconomists to look at structural issues. a couple guys from johns hopkins and someplace else with iceman

cometh fundamental structural issues changing in the economy appeared right now happens to be artificial intelligence. we don't know how something like that filters through the economy until it's too late. they seem to be showing no recognition for that or its consequences for the way we train workers and was happening in business. for example, in you don't see a lot of business investment. why is that? we have a situation where new capital investment replaces old capital at a lower price. they use less of it. businesses have to spend a fortune on training workers and profoundly they can train people with relatively low skills to high-performance jobs in a period of six months. they're spending a fortune on training. it doesn't show up in the investment statistics. it shows up elsewhere in the accounts. have you heard that from his mouth? charles: great point. by the way, your latest headline

really caught my attention. please state your case. >> while essentially the prime minister may live the remainder. she didn't believe. she was put there on the basis of seniority. so she went over there negotiated and gradually got maneuvered into a position by accepting the e.u. agenda for negotiations. i can't go through it all right now are basically she took the turns. what they did was say we need great men that they want to leave. we'll turn them into a colony. they'll be in they won't have a vote. that's the agreement she is brought back. it's bad or cold turkey and it's not. what i would do is say fine, this is the best to give us. there is going to be no deal, but what we do on march 29th is declare unilateral free trade and you do the same. and if you don't, guess what, we won't pay the $50 billion in new figure out how to balance your

books. charles: i get which are coming from and i dig it, the point you made a she went over to angela merkel and others that she gave away all of her bargaining position than she's been tougher with iran parliament interim political party and she has been with e.u. regulators. >> at backley. this is what donald trump talked about during the campaign. they need a prime minister that puts britain first coming up to you first. the populist revolution places like france, white merkel is out, wife country has the kind of government it does. putting up a fence on its border. so it doesn't have to do with immigration. they're getting sanctions for putting up a fence. tree into the e.u.'s falling apart in time. >> theresa may wants to keep them shackled to the courts.

charles: it's nuts. peter, great stuff. we appreciated them learn a lot every time you come on. happy new year. let's check on the price of gold benefiting a little bit from the market rally at $4 today. a de facto safe even if you will. bit: not necessarily doing as well. done a lot for the 2000 -- off another 80 today. let's check the price of oil. 18 month high. global supply lot. a gallon of regular gasoline at $2.29. president trump making a surprise christmas visit to troops in iraq. the position to hold the troops out of syria but has no plans to exit iraq. "the new york times" reporting that facebook is more than 150 companies including microsoft, amazon, netflix and spotted five. special privileges to user data.

facebook tops the list of these trusted tech companies. not a surprise. with just four days to go in the new year the partial government shutdown remains in full swing. the government has been shut down for almost a week now. today congress returns to washington. the president has made it clear he will do whatever it takes to get funding for the border wall. stay with us. we're all over it. we're just getting started. ♪ been better, with amazing amenities like movie theaters, exercise rooms and swimming pools, public cafes, bars and bistros even pet care services. and there's never been an easier way to get great advice. a place for mom is a free service that pairs you with a local advisor to help you sort through your options and find a perfect place.

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spam at the reason i'm here today to thank you every servicemember throughout the reason for the near elimination of the isis territorial caliphate in iraq and in syria. two years ago when i became president, they were very dominant group. they were very dominant. today they're not so dominate anymore. [cheers and applause] great job. i looked at a map and two years ago there was a lot of red all over that map and now you have a couple little spots. charles: that was president

trump speaking to the troops after making a surprise visit to iraq. you've got for details. >> we talked about this before about the way the economy in the market's been. same with president trump. this is a feel-good story. the commander-in-chief meeting with the troops in a battle zone. why can't you just report the "washington post" coverage begin with two paragraphs that focus on all of trump's failings from their point of view about his foreign policy. they're such good news out there and you don't even have to look at it, but a spots in the face like this meeting with the president and troops. all they can do is dredge up every bad feeling that they consider president trump has been reporting the news. >> may be been some sort of violation. on social media or president obama was sending photographs.

no one begrudge that because the troops are thrilled to have the commander-in-chief make the trip. >> one troops that you are the reason i entered the armed services and there was a tremendously feel-good moment. it wasn't expressed without disdain by the press. it was a wonderful meeting between the chief and one of his troops and again the media either doesn't reporter reports and all negative. charles: so sad. it really is. not sad the latest numbers americans have spent 850 billion this christmas season. that's a huge number and it certainly backs up all the consumer confidence data we had coming into this holiday season. what does it say about where we may be going into the new year? >> sales have been great from the very beginning to the very end.

the consumers then red-hot. the consumer will continue spending into the new year as long as they have money in their wallet. right now they do. they have jobs, and taxes are down. from a consumer perspective everything looks rosy. charles: of course we just talked about dumping cold water and say because people are relying on credit. people are extending themselves. there's obviously a natural fear after what we saw with the great recession and that's only natural. the idea that the consumers already perhaps tapped out. are you sensing not at all? >> absolutely not. there is no evidence to support that. by and large the consumer is spending because times are good. employment at near record levels. there is spending because the economy is strong. one of the things everyone talks about by the fed is raising interest rates.

i used to get a call frequently from people must i do say this is going out. you know a lot of things that we don't know. putting aside what is right or wrong to raise interest rates, they're hearing good news when they make those calls. the economy strong, the consumers strong. people talk about recession next year and they have no additions to support that. i can assure you having visited the stores consumers are not talking about the yield curve the 10 year bond versus the new year bond. they're not talking about the government shutdown. they're talking about the fact that they're enjoying the holiday season and they have money to spend. >> i was up when i turned in new york city on the weekends. recently we took my granddaughter to radio city and energy in new york and the excitement in the holiday spirit, but they hate donald trump. let's talk about the brick-and-mortar side of this business. there is evidence now that they're starting to understand

how they compete in the amazon world fared particularly the last earnings report took market share everywhere, but they said it's going to cost a little bit more money to build out this on the channel and they were punished by wall street for that. >> you're right, charles. the future -- that the great prefix there to sound fancy. all it means is the consumer can shop anyway she chooses. online or in-store. even amazon knows that if they have added stores with acquisition. for a company like cosco or wal-mart or macy's or any of them, they have to have a great online experience. if they don't, they won't be a retailer in the future and never was going to say you're not keeping up. meanwhile they have to keep investing in the stores, too. 85% of retail sales take place in the stores. they do have the option to the stores better be good. you can't let them get run down

so you have to invest in those, too. a lot of investment on both sides of the ledger. you see that definitely traits cash flow, capital and operating profits. charles: with an investment. i've got 10 seconds. i'm picking up toys on christmas eve. it was a madhouse. target by the way did a great job. are you thinking in your mind there is room out there for a toys "r" us part 2. i may be fill that void. >> i will tell you there is room doing electronics. home depot and building supplies. the demise of toys "r" us had nothing to do with the fact consumers didn't like it and everything to do with the fact that governor -- government -- [inaudible] charles: it's always great talking to you. thank you very much. >> yesterday we spoke at chris

cox. the harley-davidson sales are down due to politics. joined by one of the owners in the larger dealership in the country. he disagrees. there's nothing to do with politics and is going to make his case on this program shortly. the iconic volkswagen beetle among one of the car you won't see anymore after 2019. we'll tell you what other cars are being taken off the assembly line. the release photo of a blue sand dunes on mars. that is mars, folks. known as the red planet. you get a whole lot of that and more with "varney & company" and we've got a lot coming up. ♪ place, the xfinity xfi gateway.

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charles: the check the big board our 304 points and hold it now for a while now. folks come and say goodbye to a lot of cars in 2019. the list includes some that may surprise discontinuing the taurus, the focus in this emacs. toyota killing the previous. remember how that revolutionized the auto industry? chevrolets impala, cruise. all going to be discontinued. we have a winner. the winning ticket $294 million powerball drawing was at a gas station in brooklyn. three second-place tickets worth $1 million. make sure you check your numbers especially if you live in florida, illinois or wisconsin.

by the way, no winner in the mega millions jackpot. another chat out his sword more than 300 or g8 million dollars. it was in october. the single winning ticket if you recall $1.5 billion sold in south carolina. still not yet to emerge. a couple of corporate stores to pay hundreds of millions of dollars for programming. verizon disney must reach agreement before the contract on new year's eve at 5:00 p.m. weight watchers teaming up with blue apron in hopes of getting shares that i fell under 1 dollar right now. blue apron will pay weight watchers for customers getting subscriptions they are. a nasal spray says it's working on an antidote.

we know for opioids is working on a new drug treatment for marijuana abuse. the doctor behind that one will join us next. russia reportedly testing a brand-new supersonic missile capable of carrying a nuclear warhead. this thing could be unstoppable by her current missile defense system. we'll have the full details on that coming up as well. they are time reporting pays hundred 50 companies that sell privilege to its user data. one of them now with the least trusted tech company in the country. we are on that story next. ♪

charles: checking the big board. we found some support here. a little bit of nobles. all 30 spots in the red, but also the lowe's big time more than 500 points an hour. we'll see what happens obviously. now this. facebook is now the least trusted tech company. this is according to a survey by research firm to luna appeared 40% of the respondents said that they trusted facebook believes. not only because the data leaks and privacy issues but because of how the top executives handle those issues. why bring in john mayer, transpire general partner. just about every day there's been a negative story on social media, but more specifically facebook and the arrogance in which they handled this has not been lost on people. >> absolutely are totally right. where we keep seeing time and time again as they make a mistake. they have to apologize for it. they make a mistake and it happens again.

i think at this point what is tremendously important and i keep stressing that is that we see now the public doesn't seem to be making much of a difference in terms of not using facebook as much. facebook numbers not losing users. in the stock is getting hammered. that's got to get somebody's attention. >> hopefully it will appear at this point really that time is running out. at this point, we are running a very high risk of the new company coming in competing with facebook in a very serious way that takes privacy seriously. ironically, one of the sources of where this type of company came from is a facebook employee. the biggest driver in my opinion behind what facebook can do for the better is coming from their

internal employees that don't agree with the way facebook has taken the policy. charles: they have ideas, and they see how it works. that's a huge obstacle. you wonder if we do get the legislation with social media, would it have the adverse effect of perhaps make it harder for these new companies to actually start up and take a peek or would it actually curb the behavior i facebook to make them more accountable to the public and the users. >> is not as a worry of mine. right now what i think could be the best chance for a company to compete with facebook or compete with facebook enough to scare facebook into really taking this seriously is again for an internal employee to go try something out-of-the-box. were we start possible

competitors. the reason it could happen somewhat soon in the next two to three years is because were about to undergo some pretty serious paradigm shift in computing. charles: let talk about the big truck 10 cc. >> as we get into 2019, you'll see technology, artificial intelligence be the back bone of some of the larger tech companies like google, amazon, facebook, et cetera. charles: the backbone with respect to the operate with their mission are the backbone in terms of offering the product. >> i think it the backbone of how they power the end products. i'll give you an example. so i talked on the show a little bit ago. a few weeks ago but recently i went into san francisco. i walked into the latest in the amazon grocery store that does not have any cashiers. so i'm walking in, pulling carts

off the shelves, putting them in my back pack. and i just walk out. and then i get a bill sent to meme and it was the most pleasant shopping experience i've ever had in retail. this is out on the market. available to everybody to walk in and they're going to roll out thousands of these across america. what i like to talk about is first of all what is causing that? and if a.i. what is the impact on average americans? obviously great for consumers. charles: a lot of people watching on thank you, mr. chairman. and jobs. a lot of jobs at risk. that's a big question mark. we're out of time here. it's really great talking to you. it is great, but there are some more. appreciate it. the company that created the narcan nasal spray will not

prevent opioid overdose is now working on a treatment for cannabis abuse. the treatment will be used as an injectable to help those suffering from an overdose from consumption of edible marijuana. dr. roger kristol, pharmaceuticals ceo. so interesting because i keep talking to investment bankers and everyone still wants to get into this marijuana praise going for medical marijuana to recreational use. you know it's going to be huge. it's booming. not a lot of people talking about the abuse. talk about the risk. >> thank you. just to take a step back to remind our viewers as a company we are focused on developing predictions and drug overdose. in the same way with the opioid crisis, people can quite anticipate that we are where we are unfortunately today. it's our responsibility to look ahead and increase legalization

of marijuana, we need to be responsible and think about potential consequences. for example in colorado there's been a 20% increase from acute cannabinoid overdose. in particular, our concern is not necessarily inhaled cannabis, but around as you state the audibles particularly concerning when a child can get a hold of these. the synthetic cannabinoids known as k2 or spice. they are extremely topic, multi-fold stronger than regular cannabis and they can be particularly harmful. we need something that can treat these conditions in an emergency and we announce yesterday we've acquired the right to develop this from the huge pharmaceutical giant said no

fee. we announce that yesterday and we are working developing that now. >> dr., i'm curious what the symptoms are free cannabis overdose. >> the greatest concern is around cardiovascular, meaning the harkin lead extremely rapidly, go into all types of dangerous rhythms. also related to the brain and particular psychosis. similar to patients with schizophrenia who go into acute episodes of psychosis and can be extremely dangerous to others. those are particularly associated with the synthetic cannabinoids. this is something where there's no treatment available in the er. patients simply have to be treated in a more supportive manner. they require several hours, sometimes days of inpatient care to be observed until the drug

eventually wears off. we can provide emergency treatment that can reverse that rapidly. we believe this is something extremely compelling. charles: your drug narcan has held countless people. another venture. we hope to have you back on to discuss further development. thank you very much. charles: now to russia where there's a supersonic weapon. you've got those details. >> yeah, this is a really ominous development. vladimir putin called it an excellent new year's gift to the . it is the reason why president

trump announced a couple months ago he was pulling out of the inf treaty. the intermediate-range treaty we signed years ago. the president found out through the pentagon through the cia that russia was working on this. now they have perfect to that and why should we follow a treaty that we are violating with regard to this. we've got to figure out some way to combat it. charles: scary stuff. yesterday we spoke with chris cox. he says the harley sales are down due primarily to the politics. coming up, joined by the owner of one of the largest harley-davidson dealerships in the country. he seen the sales have nothing at all to do with politics. four days away until the new year. the shutdown remains in full swing. the way we've been down now from most elite. congress returns in washington. will that change things? president trump has made it clear he will do whatever it takes to get funding for the border wall.

details on what's going on in washington are next. ♪

charles: earlier in the program retired army jackson creator of my mind foundation joins the show. is this under president trump is

booming. roll tape. >> since 2012 until now -- patriotic thing where patriotism is cool again. it's one of those things you want talked about. there is an iconic -- [inaudible] especially the veterans. the ideas creating conversation of those who serve and those who don't. and now we've got initiatives with our foundation were trying to put money where her mouth was. we're trying to and veterans homeless guys. -- homelessness ♪ ♪

♪ this holiday season, families near you need your help. visit redcross.org now to donate.

charles: day six of the partial government shutdown. hillary von is at the white house with more. with the latest? >> hey charles, one week to work out the deal were the democrats take control of the house on january 3rd. making it very clear he's not in a rush to get the shutdown over with and he doesn't plan on budget and on its border wall. the president saying the democrats are set at more by the standstill right now between congress and the white house trading this morning have democrats finally realize we definitely need border security in them on the southern border? gang members and criminals coming into our country.

do the dems realize most of the people not getting paid or democrat? senate minority leader chuck schumer and house minority leader nancy pelosi said the white house is actually sending mixed messages on what they want to get a deal done thing in the joint statement different people from the same white house are saying different things about what the president would accept or not accept to end his trump shutdown making it impossible to know where they stand at any given moment. the president wanted to shut down. republican side it is up to democrats to figure out how to make a deal on this. >> not much is happening in washington as best i can tell. the president needs to give 10 votes to pass in the senate until they finish deliberations, hopefully when schumer agrees we need security on our mexican u.s. border. >> the government is still in the partial shutdown. congress is getting back to

work. the house and senate meeting on the hill today at 4:00 p.m. charles: hillary comic thank you so much. i want to stay in the shutdown. brandon judd, teen border patrol agent. because of the shutdown you're at your post and montana not on the border and someone wondered does that impact the support you've shown president trump now that the shutdown is impacting you? >> not at all. i just finished a shift a few hours ago. i got home like i said a couple hours ago. it does not affect my support at all. i understand. i've seen what physical barriers do. i've seen how they drive illegal drug smuggling, alien smuggling, how it drives the traffic down and i know the physical barriers work and i support him 100% in trying to get us those walls. charles: brandon, what you make of the counter argument by democrats who say experts.

i'm not sure who they are but they hint at things like the drone will be as effective as a border wall or more so. to me it sounds crazy. >> that's not true. in fact we have the technology on the border. the drones are great at spotting people that they don't put hands on the individuals to take them into custody. physical barriers keep people from actually entering the country. drones do not. they help us apprehend people when they do enter the country but they don't keep people from entering the country and that's what we need to have. we need barriers that people cannot step foot into the united states. charles: do think it's getting across to americans because both the politics and the message he started this web on the importance of the average american at risk. the physical barrier between tijuana and san diego since then we've seen the economy on both

sides so it seems like it could be a win-win proposition . >> american public has specifically said they want more security. they've seen what happened where we do have physical barriers but they've also seen what's happening when they don't have physical barriers and not as complete lawless mess. we have to have physical barriers done in border patrol agents like mental support the president has suffered to get this done. is now in the hands of senator schumer to deal out with them to get it done. his willingness. started out at 25 billion. he's found ways he can do it more cost effective than not the business man coming out. charles: thank you and a merry christmas. you've got a great looking tree there. >> to you as well.

charles: hundreds of migrants were released in texas and mexico. >> well, 518. facilities are totally overwhelmed. until we have a wall for something that stops people from immigrating through mexico to united states to the border. this is what prompts the immigrant from central america to make that long track. this included 10 single women pregnant would probably have their children in the united states so those will be u.s. citizens. they are all given court dates. all 518 and 1000 in the past two days. these are court dates to which as we know they rarely attend. once they're given a court date believed the facilities. they're gone. we're joined by one of the largest harley-davidson dealerships in the country. he said they have absolutely nothing to do with politics. we want to hear what he has said. we'll hear him next.

♪

charles: now this, sales of harley-davidson motorcycles have declined. i spoke of the bikers for trump chris cox. listen to what he had to say. roll tape. >> tobacco for trump turn into a phenomenon. he tried to raise them high in the mantle of respect in the new turnaround in its been unacceptable. i know hundreds of thousands of members are still sore about that and they certainly got a little bit of apologizing to do to our president. charles: our next guest doesn't quite approve of this. mike shelby, owner of san diego

harley davidson. one of the largest in the country. your thoughts on this. >> chris is all wrong. i appreciate what he's done. i've spoken at their events. it's only a new motorcycle sales. we are a victim of our own success. we are making bikes. harley davidson, so well. they're laughing so much longer. they're bigger, stronger. you could put a fiver six-year-old motorcycle for 7000 from $8000. other people are doing. a lot of people i know are selling more. the new harleys are phenomenal. it's a bargain. people are coming in for the bargain. you're going to get what you pay for. the new ones are amazing, but there's a decline in new bikes

pales and that's why it's nothing to do with politics. charles: i've got harley davidson over the decades to do research on this and even their omission is the pool of buyers has been shrinking as the demographic has gotten older and older. there's got to be some truth to that from that point of view. what would you say to those folks with the social media i hear all the time and they agree with chris in the harley davidson is the white house and president trump for photo ops and then turn around and decisions made on the corporate level before trump ran for president like building these bikes outside of this country while shutting down american jobs landed on president trump. >> is just not true. in the first place come every harley-davidson sold in america is made in america. everyone sold worldwide is made in america.

whether they have that for? what are they building on about? they're going to build the plant. they do have manufacturing outside in this country. they don't manufacture, they assembled. there are places -- charles: okay, the domestics game. are americans going to have those? >> that's not a semantic. every engine, retransmission comment every single part including the creativity is made right here in the united states of america. there are places -- charles: would you agree there is a serious issue with the cells at least, the harley-davidson stock is down dramatically. it makes sense to do manufacturing near the areas. but i think the problem here is they are on issues that are company specific and that's where people are upset about. >> they are just doing what we

have to do to overcome the obstacles exporting might high tariffs and we hope this president is successful. i think he will be. look at the tear us down. charles: tariffs already exist in those countries are exporting to. he put tears in our country to fight back against that. >> yeah, but they're going to raise their tariffs. charles: were going to take a mayor to -- american jobs, is that how they fight? >> that's not true. we are taking away american jobs to people like chris cox is spreading these crazy rumors. it's not true. charles: ricotta go, buddy. i love harley myself. we will see you soon. more "varney" next. >> thank you.

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charles: hey, folks. that was a -- >> that was wild interview. i want to hear the full story

you owning a harley for three weeks. charles: i owned it three weeks, rode it once. i'm not built for harley. it is a beautiful vehicle. blake burman in for neil. blake: you bought the harley low and sold it high. charles: it wasn't low when i bought it. blake: when you gave us the market yesterday we were at about this level, 300. it was up of course. today we're down 300 right on the button on the dow on this nuon hour on the east coast. we'll see what happens here over next couple hours there has been a bit of a pull back after yesterday's historic gains which is was the biggest single point gain ever on the dow, after that terrible christmas eve showing. consumer confidence, also hitting its lowest level in five months, though holiday sales were at a 5% gain this go around. lots to digest, we'll send it to