what does this balance sheet look like 6, 12 monthses from now? >> and -- forget before the financial crisis the balance sheet is at 750 billion is not going back there. to the company begins right now. stuart over it you. stuart: got it thanks maria good morning to you good morning everyone. let's put it like this. everyone is moving towards a deal except speaker pelosi. president trump is open to ending the shutdown in exchange for a wall down payment. senators mcconnell and schumer put their heads together in talks no details emerging but they talked. republican ares senators gave mike pence an earful they want it shutdown ended and urging deal as well with democrats there's a collective enough, except from speaker pelosi. kellyanne conway dubbed her doctor no. there is, in fact, some movement there's light at the end of the shutdown tunnel that's one of the factors that's continuing the stock rally look at this

opening up maybe 200 points at the opening bell this morning. look like another triple digit gain and another strong showing for the tech heavy nasdaq that's important. now profits, that's another positive factor. so far this reporting season profits were up 15% compared to a year ago and that's strong. and now, something new -- from senator elizabeth warren, a wealth tax. her proposal if you're worth 50 million dollars the irs confiscates some of your where wealth. senator warren is staking out her position in the runoff or for 2020 quite schism you've got it. we want it. and hand it over. "varney & company" is about to begin. ♪ venezuela military as you can see backing president nicholas what's going on in response to

number of countries including pus not recognizing anymore and the opposition juan, the 25-year-old lawmaker and he's been telling u.s. she's an expert with wall street journal the military holds the key and here we have as you can see the military surrounding pledging their allegiance to him. now has been had reports of some military members literally just deserting getting out over the past several monthses as many as 4,000 soldiers have deserted not necessarily to back opposition but they're fed up with the whole situation trying to get out but this is very critical. let's not forget russia, china, turkey cuba all supporting -- maduro as well so for he remains in power. >> what are some of the young radicalses just to congress -- there's omar i think. >> ellen omar minnesota democrat she says this. in a tweet, about a u.s. backed cue in venezuela is not a solution to dire issues they face. trump's efforts to install a far

right opposition will only insight violence and further destabilize region we must support mexico uruguay and vatican efforts to have a peaceful dialogue. stop rolling your eyes. >> the people of sway la you can't get toilet paper. >> a radical right winger? >> not so my goodness nicely dealt with there. ash take a look at stock futures. it is a good idea to look at them because we're going up look 240 points up about 87 on the nasdaq. solid gain for the opening bell today come on in market watcher david nicholas. are are we up? are we higher right now because maybe there's sol light at the end of the shutdown tunnel. >> stuart thanks for having me this morning. you know, i think that has a little bit to do with it but overall the markets have done pretty well with the government being shutdown. if you look back historically

liberty does economic activity expands when tboflts are are shutdown now it is unfortunate or for government workers affected by this. but even if you look back to reagan government was shutdown eight times under reagan five of those times market was flat or positive. only three times it was negative. so you know, there's an a argument here that says the economy can do quite well even during a period like this but i really think earnings is the big back drop as to why markets are doing well. >> now we've got what is it about 20 odd percent of the s&p 500 companies reporting so far. and their profits are up an average over 15% from last year. i'm calling that strong. you're with that? >> couldn't agree more stuart. i think that's strong growth it is a testament to the strength of the u.s. economy. but one of the things that we look at tech is great leading indicator how the the u.s. economy is doing if you look at a company like amazon i think it has a blowout quarter when they report. it seemed over holiday season we have a new package arriving at our door every hour. and i think it is changed

behavior so all of that bodes well. microsoft you talked about a lot on this show should have another good quarter come in a dollar nine. so i think overall expectations for earnings should continue to push this market higher. if the government opens, with relatively quickly and we get a trade deal with china, i think we'll see markets reach all time highs this year. >> okay. rt will the i'm not going to leave it just yet. i've got to remind you that next week apple, amazon, facebook, and microsoft, they all report their a earnings now these are tech titans i notice -- that we've got all of them gradually moving up even before those earnings report. so you're telling us that these big techs are going to do very well is that opinion shared amongst other investors and market watchers? >> i think it is. the one caveat i will is apple you know we talked about apple before. don't think you're going to see

robust growth in a when will they report. and so i don't think it is going to affect overall market but companyies like microsoft and amazon, google, there's a one area weakness i see is apple it is just again you have a slowdown in china. that's affecting apple's sales you have every single product that apple came out had an entry price significantly higher than the prior year so stuart absolutely. i think consensus that tech will continue to do well but you have to own the right company. i don't think you'll see side in a l that we've seen historically. >> got it thank you david nicholas see you tben soon. now, individual stocks have a look at them. first of all intel, they came out with a not so osy forecast for the future that done stock in it is down about 5.8%. now, intel is a dow stock. so intel is hurting the dow. even though dow will be up 250. how about starbucks, much better

sales there, and that stock is going up this morning a 4% gain look at star buck at 67 dollars share pretty much same story at kolgate that is down for 1.4% with something in their report that is pulling them down so premarket colgate is down. how about this? we have a fox news poll for you. 70% think it's okay to tax a the rich much more on incomes over 10 million dollars. 44% say it is toque raise are a tax as big time on people making more than 250 ,000. tax the rich appear to be very popular. how about that? ed connor is with us former partner with bain capitol. let me follow this through. let's suppose that just say a 70% top tax rate was imposed on high income americans as aoc wants 70%. what happens? >> well i think our middle class incomes end up like europes

15-30% below where ours are today. >> tax levied on middle class as well as 1%. >> people don't understand america has half as much talent as europe and japan has and they produce more than twice as much. so they work longer hours they take more entrepreneurial risk by measures they produce seven times as much innovation as europe does and thattive drews growth in the united states which drives up -- middle class incomes, 15 to 30% higher than -- than europe. you take those incentives away, you could end up with with incomes that are lower than europe because you have less talent than europe and japan has and you're talking about tax rates that are higher than tax rates it won't have immediate activity but a gradual effect over time. but it could have a very significant affect on our middle class. >> look like europe heaven forbid. >> i don't think that democrats care because i thinking they care about taking that money to help -- i don't think they care about generating middle class. >> they don't like the rich but take it off them but they don't understand economic hads. >> i don't think they do or care

either. senator elizabeth warren, now she's set to propose a wealth tax. she wants to take 2% of any dollar that people have over 50 million. and 3% on any dollar over 1 billion dollarss. that sounds attractive i suppose it is not that much to pay but what effect qowld it have? >> one way to think about that is on average capital produces ab 5 a% return so if you tax at 2% you're talking about a 40% on income and we have a 30% 20 to 30% tax on capital gain talking about extending 70% from labor income to capital income i think it has same devastate effect which is greatly demotivates people you have a bunch of people in silicon valley who are trying to get rich so they don't have to work if you take away their incentive to get rich by taking all of that money away from them all of the value of that money. what incentive do they have to take the risk that produce innovation that grows the economy? >> using right word take that

money -- they call it a tax -- but, in fact, it is a form of confiscation go into your bank account and take it. >> when you get the 70% or taking money that's already been taxed first as income and then capital gain and accumulated wealth clearly they've grabbed that had every dollar they can grab. >> i call it legalized theft. smtion 70% is pretty high. >> you've got it ed thanks for joining us always appreciate it. thank you, sir, then we have facebook chief that will be mark zuckerberg wrote an on ed titled the facts about facebook. what's he saying? >> facebook turns 15 next month so taking the opportunity and op-ed piece in "the wall street journal" laying out the principles for company defending business model after a who horrc 2018 to connect people and he started facebook he says service that is affordable to everyone in order to make that service affordable, they have to sell ads targeted ads is what had they have told facebooking and a

let me just pull out this quote for you this is important because you know it is all a about privacy, and how facebook uses your data when selling it to companies that want to advertise straight to you. but mark zuckerberg says basically ultimately we do not sell people's data even though it's off to reported that we to, in fact, selling people's information to advertisers would be counter to our business interest. because teld reduce are unique value of our service to advertisers because that's kind of what makes them unique and makes them money they say ultimately connecting people around transparency choice and control. >> it is justifying facebook's business model, and the market appears to like it. the stock is up this morning. >> 11% year to date down over 30% last year. >> today it is up a little bit. >> see how it does next week. in the jowrnlg check it i love it check futures friday morning we're going to go up triple digits and check the frequency for you up 200 for the dow up 84 for nasdaq a rally again.

maxine waters new chair of the house financial services committee flexing her muscles already. she wants the ceo of the six biggest bangs in country to testify before congress. what it says day of easy bank regulation are coming to an end. and measles outbreak, forcing officials in washington state to declare a public health emergency. nearly two dozen people are sick, this part of the country is anti-vaccine hot bed. dr. siegel coming up on that. chaos in venezuela country is collapsing socialism is to blame that's my opinion. there might be some lessons here for some of the young socialists in our country. we're on it -- after this. your manufacturing business. & so this won't happen. because you've made sure this sensor and this machine are integrated. & she can talk to him, & yes... atta, boy. some people assign genders to machines. and you can be sure you won't have any problems.

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>> i do apologize for inflicting this on you one more tile let's do it when market opens up this friday morning we're going up 00 points on the dow. 80 odd points on nasdaq rally. venezuela democratic socialist

bernie sanders acknowledged thursday that the economy is a disaster. he was talking about venezuela. but he cautioned against america involvement in that country affairs. come on in joshua -- he's the author of the book heaven on earth, the rise and fall of socialism. perfect timing, sir perfect timing welcome to the show. does socialism always end badly? >> well it always ends in failure. sometimes the more moderate socialist like the british labor party started to create socialism and the economy started tanking this was right after world war or ii, and so they just backtracked. it wasn't a disaster it was just a failure. many other places around the world, it was an utter disaster that not only destroyed economies, but that killed millions and millions of people. when governments would determine to force socialism down the throats of their people, even though people didn't want it and

system doesn't work. >> but for young folk, it's attractive because you know, you've got your ideals you have your dreams and equality seems to be a good value to hold, what lesson would you draw for our young socialist in america from the performance of socialism overseas recently? >> well, you know, stuart the lessons go back 100 years or more and there was 100 years ago when the french intellectual politician began as socialist claim the phrase any man who is not a socialist when he's 20 has no heart. and any man who is still a social whys he's 40 has no brain. i don't know bernie sanders is 75. i don't know what it tells us about him. [laughter] >> would you draw a distinction between the socialism of venezuela which frankly to me seems more like communism.

and the socialism that was practiced in europe recently like the especially in scandinavia there's a distinction right? >> there's a distinction in early on -- it became clear that this dream you just couldn't get there and some of the socialists who are more fair minded devoted to democracy, with dialed back what they're after instead of getting away from private property and destroying business, they just wanted to grow the welfare state and to make life easier for those at the bottom end, and that sometimes it -- it cost a lot of money. but it worked basically life was made easier. but others were determined to fulfill this dream that you will do away with private ownership and private business and you will either have the state take over or something like the state. and have complete equality and

wherever governments try to force that, it led to death and destruction and we thought that this lesson had been learned in the 20th century. but here we have venezuela reenacting whole story once again. chghts it is sad each generation has to learn a lesson of fresh that's the way it seems to me joshua, thank you very much for joining us, sir timely period sir. thanks a lot. again one more time taking a look how the market will open this morning up 200 why not up hux for the dow. joe biden well he hasn't said if he's running in 2020. but he's leading in the polls. and just wait until you hear what he said if republicans. well it's not what you are hearing from other democrats. more varney after this. ♪

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joe biden leads the field of potential democrat presidential candidates now this comes out of a poll that is online poll this morning from morning consult and politico. that's the organization that put the poll out. biden supported by 26% of democrats surveyed now that is more than any of the other potential candidates. now listen to what joe biden had to say about the gop. roll tape. >> i read "new york times" today that i --

that one of my problems is if i was to run for president, i like republicans. >> me father for i have sinned. [laughter] but -- >> he does like republicans okay. he does. he's a moderate dirty word these days times said that was one with of his real vulnerables that his ability to speak nicely about the opposition party members. you know, he said nice things about upton republican in michigan three weeks before november election widely criticized he said i'm speaking any mind i like the guy i think what he said was true. >> i think he's a prime candidate. >> i do too. >> very good challenge to president trump. >> he's in the middle -- right. what's wrong with that? >> now there's a generation split and that poll as well so older boomers and pick biden and general x they chose sanders over biden. >> now they're on the left. okay. got to get this story in real

fast, the government is going to start returning asylum seekers to mexico ting that policy starts today. >> against humanitarian visas and work -- documents when they return to mexico this is a very difort change in policy before they were coming to the country seek asylum and then according to, you know, theland security folks they would schismly disappear and wouldn't wait for outcome of their hearing. they would simply disappear so in order to try to stop that phenomenon now they in, they are heard and then they are put back return to mexico who is agreed to take these -- migrants until a decision is made on their asylum application. >> i would expect a court challenge any moment. >> undoubtedly. thanks ash. sure. one more time -- why not? see how market open this is friday morning now we're going to be up 250 point. remember, the dow closed yesterday at 24,500. if we get a real solid rally today if we do that, we're getting close to 25,000 again.

>> uh-huh. we'll be back in a moment with the opening of the bell that would be open to wall street. the fact is, americans move more than anyone else in the world. on average, we'll live in eleven homes. and every time we move, things change. apartments become houses, cars become mini vans.

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>> 25 seconds from now expecting rally on wall street and market opens in 20 seconds it closed yesterday at 24,500. we're expecting a gain of over

250 points in just a couple of seconds. that would take us back pretty close to 25,000 on the dow it has been a terrific 2019 so far. here question go. 9:30 eastern time, friday morning, we're off we're running how are we doing? immediately we're up 135, 135, 157, 151 we've not yet opened every dow stock. but i see most of them are green only one is in the red that will be intel, and right now we've reached a gain of 195 point for the dow industrial averagest that's .8%. close to a 200 point gain right from the get-go. the the s&p nice gain there. it a 17 point rally that's two-thirds of one percent on upside. now show me nasdaq i want to see how that is doing today nasdaq composite is up three quarters of one percent nice gain. 55 points there. here's the fly in the ointment in technology. that will be intel, and not such

a rosy forecast and when you do that stock takes hit. down 5% and please remember intel is a dow stock when it goes down it hurts the dow. better sales at starbucks global sales comparable sales up nearly 4% that's globally look at starbucks go up nearly 3%. all right the big tech names, which report next week by the way, they are apple amazon, facebook microsoft, next week we get their official numbers. all of them going up very smartly. before we get the official numbers. all right we're off, we're running 9:31 who's with me david dietz is back with. jonathon is here. suzanne lee joins thus morning and ashley webster right there. all right david, we're up what, nearly 200 points. why? >> stuart, it is a trifecta for me most important thing is earnings. earnings are coming in better about that expected. .2 is central bank policy we heard this morning that fed is

going to hold on to its bond china is opening up the spigot so we have a monetary policy for 2019 and finally valuations we're still about 8 to 10% below all time high so things are cheaper those drive us forward. >> earnings -- fed, what was the one? >> evaluations. >> 75% of companies have beaten so far in the s&p 500. we have a long way to go. >> yes we do. by the way, next week -- i'm sorry jonathon go ahead i hear you. smg no question stuart we have strung from pessimism in latter half of 2018 so unnecessary optimism now in 2019 not a tremendous bear like i was at the end of last year but you're not seeing clear leadership you mentioned intel now one of the tech stocks down. my question is if it is not going to be tech leading charge now for stocks, what is it going to be? what is going to be the leadership group that really takes the charge? because at this point i still see essentially, a dead cap bounce. i don't believe we're in a new sustainable bull market. i think this is a little bit of retracement from last year's

losses. so other side of that optimistic forecast. >> you take other side. why not? now next week we've got the -- very biggest of big tech names issuing their financial reports. it is amazon, apple, what's other one, facebook and microsoft okay they report next week. all of them are up as we approach numbers. >> last year they set the bar really low when it comes to retail sales in fourth quarter of the year, in fact, they got it lower than expected for market so i think they have a big potential because they've been very conservative in guidance as we know, it was a record-breaking retail sales holiday season, and i think that is going to look pretty good. >> to the question and suzanne you know, brings it up setting the bar low. it is some point when do we recognize when you sandbag everyone and oh magically blow away the expectations, are you really blowing away the expectations? >> this is my problem with this expectation thing.

you know, because they lower the -- bar as you said lower the bar so it is easier to jump over oh you beat -- oh you beat that -- >> get rid of guidance get rid of quarterly reporting is that what you're saying? >> more accurate to the assault moving on. also i have to move on before you start criticizing me i'm moving on. tesla reports profits next week by the way, it is bonds are coming due fairly soon they've got to come up with a bunch of cash. this is going to be a problem a billion or maybe more actually. the the problem. >> absolutely. bondholders cannot wait. we need to see cash flow positivism. my concern about tesla is just last summer we remember told about how they had to ramp up production dmangtdz was overwhelming them. now they're talking about having to cut prices and laying off workers so what's had true story at tesla? >> we'll find out next week. reflecting. stock is reflecting and hasn't been once again able to hold that 300 level this is a cold stock stuart because everyone is

shorted and ramps up quick will you but given funds mental reasons that outlawed very weak. >> watch out for that earnings report next week let's move on to interest rates that would be the key yield on the tenure treasury. look at that. 2.73%. now, let me give you that federal news again we don't cover fed very much but this is a must. the federal reserve does indeed have trillions of dollar on balance sheet that wants to cut that amount reduce that amount. today, "the wall street journal" says it may actually leave three and a half a trillion on its books. so -- less money will be taken out of the economy, out of the economy. so that is good news for the economy and the market. >> i think so. one of the fundamental concerns is that they were reducing that balance sheet on some autopilot schedule without any regard to the strength of the economy. now it seems like they've gotten tame and underlies fund mental bullishness for 2019. >> that economy is slowing town by fed taking the foot off the

gas pedal and keeping more lick witty in there as david said chinese is putting money into the economy and central bank stimulus there. jonathon make your point. >> or maybe that fed is reading the president's guidelines on twitter and doesn't want to piss him off anymore with higher interest rates. this is -- this is what makes analyze of the federal reserve so tiflt is that unlike wal-mart or cisco you can see how much product they're going to sell the fed by definition is a whim based arbitrary organization and analyzing market so difficult. i happen to think that move we've seen in gold gold has been up performer that is a weaker dollar and for that you can thank the federal reserve. >> still going on, the gold -- please. enough with the federal are reserve and gold all of the rest i know you wanted to get in there. now we did not get to a 200 point begin and take what we've got so that's up nearly three yearts of one percent that is 178 points higher individual

stocks here question go. better sales at colgate but expect profit to decline this year stock, though, is now up just 30 cents but it's up. better profits at dr horton they are a home builder before the profits go up 22 cent on upside. democrat congresswoman maxine waters taking on big banks. she wants to 6 biggest bankers, the leaders of the biggest banks, she wants them to be grilled on capitol hill. now, jonathon, is this just political theater or could she actually do damage to the banks? >> yeah she's doing damage and big risk for technology and financial services. i'm not choired about the economy stuart really am worried about government. because it is almost like socialism and regulators run wild now there's no sense of heart glitch and fact that maxine waters people openly hostile with industry with tremendous control, it's really almost like crazy town and i have to think of so much of a

reason why so many of these bank stocks were actually annihilated in 2019 as long as maxine waters is regulating them i don't see how they get out of a hole. >> strong stuff on the subject of taxing the rich and socialism. elizabeth warren senator juan, she's reportedly set to propose a wealth tax. you know, stick it to you if you have asked a $50 million or more. that's a money grab. >> absolutely she's been so marginalized between aoc talking about -- 70% on incomes over 10 million. you know, of course, government shutdown she's running for president. she's trying to get her voice heard with the hail marry that makes no sense whatsoever, stuart. >> i'll turn you loose jonathon why go after it -- because it is not a they call it a tax. it is confiscation that's what it is. >> oh, yeah government comes to your or door with a gun and says give me what you've earned. that's what's so frustrating elizabeth warren really kind of came to prominence with she popularized you didn't build that line that obama ultimately stole and made popular but

that's the focus of this it is hatred of the good for being god and saying boy, you -- created tremendous productivity made tremendous matter of people happy and what's your success? well we're going to take it from you unamerican terrible for the economy. immoral like you think socialism is immoral it's not. pfnlgt a lot of heads yeah a lot of yessing around this table here. yes it is immoral. yes it is confiscation. it is confiscation because remember, these are moneys it is that people have already paid outrage stocks and now they want to have a whole other bite come on. >> just wait with until you die -- come on. you don't need all of those millions -- you don't need that. >> share -- moving on. [laughter] this -- this is a number this i found this extraordinary. stateside american video game sales, hit 43 billion dollars last year. that's more than movie ticket sales. big difference. big difference.

43 billion dollars record year at the box office. guess how many ticks they sold? 119 billion big difference four times more you're making in video games i know how glamorous fillses are. these days but if you want to look at moneymaker in hardware sales that come with it as well nintendo xbox playstations. what netflix mentioned as it has biggest competition isn't disney but fortnite so really a dominant force in worldwide entertainment. >> it is a dominant force well said that's exactly what it is. he kind of stole off on me i didn't know what was going on here too old for this. [laughter] all right that time it is 9:40 eastern time jonathon and david both of you gentlemen. thanks so much for joining us see you again soon. well markets we're close it a 200 point begin we'll take if. almost a bit -- not sniffing at it. we're up 188 points that's .77%.

now, the big banks say that cases of financial abuse of senior citizens on the rise. the number of cases doubling overt past five years. we'll have those numbers for you too. beijing closely watching president trump's negotiations to reopen the government, they want to see if he's really the deal maker he claims to be. we'll deal with that, next. alerts -- wouldn't you like one from the market when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today. fidelity. i am not for just treating my symptoms... (ah-choo) i am for shortening colds when i'm sick. with zicam.

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call... for a free kohler touchless soap dispenser with in-home quote or visit kohlerwalkinbath.com for more info. all right we're up 17 points this friday morning. that put the dow at a 24,700. and then there's this. a new report and it says that, financial elder abuse is on the rise are. now, i want to know what is financial elder abuse?

>> scamming elderly out of that money taking their moneyly out of their bank account 25,000 cases in the u.s. for instance women going it a bank was trying to wire transfer are 30,000 to an account in mexico the teller said why? oh, my grandson involved in an accident. down there while he was on vacation and they called and told me so wait a minute, why don't you before you do that call your grandson right now, he was working never been to mexico. managed to save it but those type of things now some states texas and tennessee for instance, trying to allow bank employees it a step further and suspect something to stock or delay transactions or contact that person's family an say are you aware of this? now it kind of -- can infringe on privacy and put people's personal rights but they're looking out for the elderly. 10,000 americans turn 65 every day. and that's going to continue for the next 18 years. so the number of field orally and part of the problem is more elderly people are getting into

social media to become real targets to scam artists. electronic banking. >> i'm elderly -- [laughter] they also social media -- i know. i do stay off facebook media that's a good idea. let's get serious. well that serious, but this is even more serious. trade our guest says nobody outside of america is watching the border wall negotiations more closely than china. curtis ellis is saying that a former trade advisor of the trump campaign. why are the chinese looking so closely at the border wall negotiations? >> well border wall negotiations are a test of america first. of the america first policies that president ran on he promised to build a border wall and stop the uncontrolled immigration. similarly, his other central promise in the campaign was to get tough on china and stop the chinese economic aggression and abuse of all americans not just elders, and so they want to see

what happens. he's got to hold firm on the china trade deal just as a he has to hold firm on border wall so they're waiting to see if he caves on border wall well then maybe they can roll him on the trade. but he hasn't caved on the the border wall far from it but he adjusted his position he has negotiated there's some give in the president's position. >> right. for chinese interpret that as weakness. >> i don't read chinese minds i suppose would be better thing to read. but fortune cookies but they do -- are watch withing very closely. we have to get over this idea that any kind of deal is necessary for the markets they have had problems before tariff and even if there was some type of relief of tariffs which we don't know. china will still have problems. and investors have to be very careful, and by the way, these tariffs we're talking about -- even if they go up 25% that's

like a tear drop in the ocean. in a multitrillion dollar economy. >> you made a nasty comment there or fortune cookies. >> that was facetious all right -- got to call you to it. next week big time meetings begin the 30th and 31st. looking good at this point. and again, we have to get over the idea we have to get over the fixation with what's going to happen with these tacks or and it is there's a lot of problems here, and they have structural problems and then verification. they've never lived up to any promises that they've made and we can't trust the world trade organization to enforce any agreement there's a lot of distance to go yet to set the trigger mechanism, set the verification mechanism, and set the snapback mechanism if they don't live up to the agreement they make, the tariffs come back so this is a long drawn out process. >> very long -- get everything wrapped up on

march the first. now, the big pushback is, oh, my gosh we have to make a deal or the world is going to go into a recession. global recession -- there's not going to be a global recession and again, with this is a test of america first are we going to do what's best for america for our long-term health? or are we going to worry about a global reare session? >> okay we take your point curtis ellis thank you very much sir. see you again soon. check the tao 30 -- i think the overwhelming majority of the stocks there yeah 26 of them are up. four dow stocks are are down and dow industrial average is up like 188 points. now this -- a measles outbreak with with anti-vaccine hot bed declaring health emergency more than a dozen people sick with a disease i thought we eradicated it. doc siegel with more after this. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that.

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washington state declares a public health emergency over the needles, the measles i'm sorry my mouth is tongue tied today washington state measles outbreak joining us now marc siegel. now washington state has the remmation of being an anti-vaccine hot bed. is that why we've got a measles outbreak there? >> 100% yes. you know why? if you haven't had measles

vaccine series, and you get exposed to measles there's a 90% chance you're going to get sick not only that four days before you have symptom, rash or sick or fever rei those red eyes four days before and four days after you're still wildly con age ois. and out of the 23 kids, well actually 18 of them were kids, about who got measles in that county in washington state, none of them had had measles vaccine zero, you have to have a compliance of the measles vaccine for over 90% for actually to even work and in that county, it is a disgrace 22% of people in that county are not getting vaccinated because of the anti-vaccine movement which the world health organization says is one of the biggest health threats of this century. and i agree. terrible story it is misinformation getting out i thought we eradicated it in the united states but resurging now

from travelers then seeding unvaccined people and it can kill it can cause brain infections it can cause, pneumonia, and it can occasionally kill. >> when i was a lad and youngster, you have to have a measles vaccine. couldn't go school unless you have the vaccine. nowadays you can opt out of the vaccine i believe in the united states you can come forward and say no, don't want it it is bad for you. religion reasons that xantded exaggerated and it is not justified. quickly you've got article in wall street journal today about vaping. let's summarize this. are you for or against vaping? >> i'm for vaping for smokers older smokers who can't i've found in my practice to use e-cigarettes to help them get off. if worked. it work and fda specifically doctor commissioner of fda has said that's why we're giving they will discretion and e-cigarette companies discretion. but now it is become an epidemic

among teens using that discretion to take advantage of the situation 3.6 million teens. vapeed over the past year which is up 70% from the year before. that's what i call an epidemic. people that shouldn't be using e-cigarettes are and it is leading to smoking tobacco. but problem is, how do you keep vaping things whatever you call vape machines out of the hands of teenagers? how do you do that? >> here's one way it is actually illegal shea shouldn't be selling these things they shouldn't be selling e-cigarettes. marijuana is illegal in most places to get hands on it. it is not working with so fda says you can't have flavors in the stores that's not working. >> herch for bid congress may have to legislate it. heaven forbid we get to point where all vaping is banned it is all illegal on the ground is that we keact keep it out of the hands of teenager heaven forbid we get to that point. are you with me? >> we're heading in that direction and then i have to prescribe e-cigaretting to my smokers, we're not going to get there. you know there's too much power

in the hands of jewel and other companieses that are pushing e-cigarettes we're not going to get there but we need to push back against this for public health reasonses. >> i got it marc siegel all in two and a half minutes pretty good. >> you're fast stuart. >> i'm trying i'm here on the page next to mark zuckerberg can you imagine? [laughter] all right -- literally -- chaos and collapse in venezuela now president trump backs opposition confronting a socialist dictator my opinion america is the god guy here. not according to the democrats, my take on that, top of the hour. e rings ] [ client ] - hey maya. hey! you still thinking about opening your own shop? every day. i think there are some ways to help keep you on track. and closer to home. edward jones grew to a trillion dollars in assets under care, by thinking about your goals as much as you do.

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stuart: confrontation in venezuela. the generals support maduro. the people support guaido. the diplomats ordered out but they will stay. john bolton says mess with them, you will be held accountable.

as civil society collapses america confronts the socialist dictatorship. how is that playing here at home? not well, if you listen to the blame america first crowd. the newly-elected radical democrat omar tweeted this. a u.s.-backed coup in venezuela is not a solution. trump's efforts to install far-right on pigs will incite violence and destablize the region. one has to ask who is inciting violence? since when has juan guaido been far right? what does congresswoman omar want to us do? seems nothing. democratic socialist senator bernie sanders writes this. we must learn in the lessons much the past, not be in the position of regime change or supporting coups. what is this about coups?

there will be consequences if our diplomats is harmed. america is the good guy. we want the venezuelans to sort themselves this out. when they are shot in the street, starved in their homes, 3 million forced to flee, couldn't it be a good thing for everyone, if we eased out peacefully the socialist dictator? remember marcos in the philippines. americans eased him out after the people marched on his house in manila. he went to hawaii. no bloodshed. if we did that with maduro, would that be okay with america's socialist? s probably not. with them america is always wrong. in this case we're right. nicholas maduro's socialist regime has wrecked his country. leave and take your socialism with you. the second hour of "varney & company" is about to begin. ♪

stuart: look at this, 10:00 in new york city. 7:00 in california. and the market is showing a very nice rally. the dow is up 230 points. that is the best part of 1%. solid gain for the nasdaq composite as well. that is up nearly 1%. now normally at this time, on this day, we would be bringing you new home sales numbers but this time can't do that because, the government is shut down. ashley: no one to give them to us. stuart: that's right. ash, you have information on homebuilders any way? ashley: confidence rebounding among the homebuilders which is interesting when you think the market overall, the housing market has been very mixed, somewhat stagnant, if anything in decline. but they say declining mortgage rates is a positive, can bring more people out to look for homes, still a very strong job market. those are the two good things. however a lot of analysts say it is a good start to the year but

could be short-lived. stuart: it would be nice to see. ashley: a big part of the economy, homebuilders are suggesting it is a positive. let's get back to venezuela again. from congresswoman ilan omar. a u.s.-backed coup in venezuela is not a solution to the dire issues they face. trump's efforts to install a far-right opposition will only incite violence and further destablize the region. we must support, mexico, uruguay and the vatican's efforts to facilitate a peaceful dialogue. tammy bruce is with us. am i reading this right, far left would rather support a socialist dictator than the president trump? >> absolutely. even more so here. the reason there is resistance, socialists here don't want for people to have a larger conversation about the cancer that is socialism. so this is bad news for them. you see, we've seen this around the world. it is unsustainable.

not just unsustainable, it destroys people's lives. it is not a failed experiment. it's a thing that kills culture and life and freedom. so when this is in the news and when it is clear that it is failed, it means that conversation will happen, and this is what socialists like our new representative, the kind of conversation they don't want to have happen, so in normal life if we do something stuart that fails or doesn't work, we rethink our strategy. we think what have we done wrong, where do we need to go. not for socialists. they double down. stuart: that is true. tammy, hold on for one second because i have breaking news here of significance. there are reports that the faa has halted flights into new york's laguardia airport because of an air traffic controller staff shortage. we're waiting for more details on this one, more details as they come in. if this is accurate, the faa is saying this is happening, this

could produce further many pa to us toward as fix of the government shut down. if you're closing huge airport like laguardia. >> back up. stuart: that is real pressure. >> checking airline stocks. no impact from delta and united. i would agree this is a big stall when it comes to business travel as well. stuart: we'll check the big board. no impact on the markets, neither for or against it. we're still holding on to a very solid gain. you're up nearly 1%. look at big tech names, please. they report next week. apple, amazon, facebook, microsoft all on the upside way before we get the official numbers. apple is one of the biggest gainers of the dow 30 at this point. look at starbucks. better sales wordwide. up nearly 4%. we're at $67 a share, 3% gain.

colgate-palmolive did lower its profit forecast for the year. nonetheless the stock is up over 1%. how bin tell, however? fly in the ointment of technology. it is the biggest drag on the dow. it is down nearly 7%. i want to bring in david bahnsen. cio, of the bahnsen group. author of the book,n is all about the future, all about 2019. looking good i take it? make your case. >> yeah i think you always have a sense of which guidance during an earnings season the guidance into future results is kind of leading catalyst what will drive stock performance but i think that is more true this particular quarter than even the past. and the reason for that is, the exhortations that we would have solid earnings numbers were well baked in and they were very well-known. there was kind of clarity how well corporate america has been

performing. the question mark is really into the future. when the tax reform, stimulus sort of rubs off the initial bump that those companies got in 2018 where do things go into 2019? and when companies are guiding upward, they're surprising analysts with how they're revising their own projections for this coming year knowing that there is some degree of question around the credit markets with the federal reserve, some degree of ambiguity around the outcome of the trade war and yet they're still projecting forward, the market loves that. 2019 guidance is the key catalyst. stuart: okay, i'm looking at proctor & gamble. it is on our screen right now, p&g. i think you liked it because it pay as good dividend, is that right? >> that is a little bit too simple for us, stuart. let me just elaborate a little bit. i love the company because it is one of the mess well-run companies in the country.

they have grown the dividend now for 63 years in a row but we don't love it because they grow the dividend. they grow the dividend because it's a fantastic company. that is the whole point. the dividend growth indicates the excellence of the company. it doesn't create the excellence of the company. you brought up colgate-palmolive a moment ago. look at their disappointment, their resolve and results. contrast to significant competitor in proctor & gamble two days ago. when i looked colgate was down 2 1/2%. proctor & gamble jumped 4 1/2. proctor & gamble is up 35% from its point, seven or eight months ago in the middle of 2018. there was a lot of questions how that sector was doing. they continue to execute. they continue to increase their margins and they're growing organically. what's not to love? stuart: yeah, what's not to love. good one, david. mr. bahnsen as always, thank you very much indeed. i want to bring back tammy bruce. i think you're still with us out

there in california, tammy. >> i am indeed. stuart: you have a piece, it is in "the washington times" and the headline is, chaos in the house. pelosi knows the freshman caucus is out of control. make your case. >> well, look, this is of course there has been movement on the state of the union address and part of the conversation, oh, that is a fight between pelosi and trump. my contention here, what i'm positing i think the speaker of the house knows she does not have control over her new class, if you will, the freshmen. she is considerably worried, she should be about their behavior during the state of the union address which the american people would not appreciate. we have already seen behavior that indicates this new class of freshmen led by alexandria ocasio-cortez is a class of stunt people, men and women, right? and whether it is chasing down, trying to chase down mitch mcconnell or of course the tweeting that you mentioned

earlier this hour regarding venezuela is the behavior and choices being made have less to do with governing and more to do with shock value or to get on the news or to undermine the nature of what is going on. americans sent these young people in, these flue individuals in, to help govern. they didn't send them in to become the new house democrats of ridgemont high and i think nancy pelosi knows this will be a problem. remember last year, stuart, that the democrats refused to applaud the good economic news, our saluting steve scalise after the attempted mass murder of the republicans, or our veterans, they sat on their hands as a statement. this is about finding common ground in governing. stuart: yes. >> transcending partisan politics, finding what is best for the american people. i think nancy pelosi knows that she does not control this house of representatives. stuart: okay. tammy, thanks for joining us, i

think miss pelosi is going to be under a great deal of pressure bearing in mind this breaking news. i am going to repeat it. there are reports that the faa has halted flights into new york's laguardia airport because of a air traffic controller staff shortage. the faa says it is just a delay? susan: a delay according to the faa at this point. departure traffic destined for laguardia experiencing delays 41 minutes. not that they're canceling flights according to the faa. departure delays, traffic, experiencing gait holds, taxi delays last 15 minutes or less. arrival al delays, experiencing airborne delays of 15 minutes or less. not a halt. stuart: not good. susan: this is 20th busiest airport in america. they handle 29 million passengers. ashley: this will increase, no

doubt. stuart: got it. more on the crisis in venezuela. seems like the entire world is taking sides. russia warning america don't intervene. if any harm comes to our diplomats the white house says we will defend them. day 35 of the shutdown. a new caravan is heading north through mexico. i will talk to someone at our border. there is some movement to end the shutdown. both sides are at least talking. i want to know when we will see progress. a lot to cover this friday. you're watching the second hour of "varney & company." ♪ in the country. you see so many people walking around here in their hundreds. so how do you stay financially well for all those extra years? well, you have to start planning as early as possible. we all need to plan, for 18 years or more, of retirement.

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stuart: high of the day. we're up 273 points. that is over 1%. we're at 24,825. look at the stock price of pg and e, the california

utility. it is down today. they were up yesterday. because they were off the hook for one of fires in california. down today because jpmorgan says they expect pg&e to file for bankruptcy. down 11% right now. let's get to the border. the u.s. will start sending migrant asylum-seekers back to mexico while their paperwork is being processed. brandon judd, president of the national border patrol council. this is quite a switch. is this a big deal here, send them back, you can't stay here in america to go through the process? >> it's a switch. it ills taking off what we're doing with the northern border of canada. the problem that we'll face, however, if we're going to send people coming to the ports of entry and legally asking for asylum send them back to mexico, all they will do is encourage them to cross the border illegally so they can actually stay in the united states pending their asylum process rather than mexico. everybody will want to stay in the united states, not stay in

mexico. if we send them back they will cross the border illegally? stuart: if you want them if they ask for asylum, do you want them to come, set foot in america, ask for asylum, stay in america? >> that is of course not what we want but you have to remember, coming through a port of entry, that is the legal process. and so, if we're telling them, if you do come through a port of entry we're just going to send you back to mexico, ultimately they will cross the border illegally. timing is everything. i applaud dhs for thinking outside of the box, trying to come up with new ideas to get border security. but if we're doing it at a time where the illegal border crossings are, you know, higher than what they were in 2014, or similar thereto, all we'll do is create a new problem, shift the problem to another side. so again when you're coming up with new initiatives timing is in fact everything.

stuart: why is mexico giving humanitarian visas for literally thousands of caravan people so that they can pass through mexico and come straight to the border? why is mexico doing that? >> that is one of the things that frustrates u.s. border patrol agents so much, we see countries like mexico are actually facilitating people coming through their country to cross our borders illegally. frankly, stuart, i believe that this is cartel-driven. you got to remember, this is a billion dollar, multibillion-dollar industry. if you cut that off, you're talking about a lot of money goes right back into the economy of mexico. so you have to look at that, you have to question that. i mean there is a lot of reports that come out the cartels paid a former president $100 million. these are things that happen in third world countries. we have to be cognizant of that. we have to be aware of that. we have to understand what we're dealing with. stuart: here they come. brandon judd. thank you, sir.

see you soon. >> thank you. stuart: much more on the border in our next hour. i will talk with a california congresswoman who is funding for a border barrier and she is a democrat. good story. check the big board. very close to the high of the day. we're up 269 points at 24,822. more "varney" after this. ♪ place, the xfinity xfi gateway.

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leave no room behind with xfi pods. simple. easy. awesome. click or visit a retail store today. stuart: we're staying on top of this breaking news story, delays at new york's laguardia airport because of a air traffic controller shortage. the faa just released this statement. here we go. we have experienced a slight

increase in sick leave at two facilities. we mitigated the impact by augmenting staffing, rerouting traffic and increasing spacing between aircraft when needed. the results have been minimal impacts to efficiency while maintaining consistent levels of safety in the national airspace system. i will repeat, this adds to the pressure to fix the government shutdown, because the delay at laguardia is a result of the shutdown. facebook's chief, mark zuckerberg, he had a op-ed in the journal, titled, the facts about facebook. basically it defends the company's business practices. let's bring in deirdre bolton who has gone through all of this. >> yes, i have. stuart: what is he saying to defend his business model and business practices? >> one quote straight away from the op-ed. sometimes people assume we do things that we don't do. for example, we don't sell people's data it is often reported that we do.

this appeared in the "wall street journal." we know there has been scandal going back two years roughly now between cambridge analytica, other third part movers. he welcomes data protection regulations as he has seen in europe. stuart: he says we don't sell other people's data? >> i'm quoting hill. even though we reported that he does. stuart: it was his business model,. >> the trick is always in what you as the user go through in a fine-tooth comb and approve his release about you. stuart: oh, okay. >> i think there is a little more methodology mixed in. he says ultimately, this was the other quote i thought was salient. i believe the most important principles around data, are transparency, choice and control. so essentially he is saying, it is your fault if you don't like -- stuart: we got a "new york times" report which says that zuckerberg is integrating whatsapp, instagram and their own messenger.

i don't understand that, tell me. >> so essentially the founders of whatsapp and instagram recently left the company. this is according to "the times." we have to say also facebook has not responded to this, but it is a consolidation. the interesting thing to me about this, what does it mean for apple for google? stu, if i can just direct message you, maybe i don't need the same data fees, for example people in south america communicate via what's app, that you don't need to have a facebook account to send you from whatsapp to my insta. they're getting all soes messaging and services under one roof. that is the morning -- "new york times." ashley: you're eyes are starting to glaze a bit. >> this is consolidation of power, that people won't have to pay google, apple or some of the carriers. stuart: now i got it. now i got it. you will tell me about the money, i get it. >> fair enough. stuart: congresswoman maxine waters is now in charge of the

financial services committee. she will get the ceo's of the six biggest banks to stand up there, hold out the right hand and testify. i want to know what her end game is here? i will find out too. i will talk to one of the most-follow owed market watchers. he is betting big on the consumer right now. he will tell us what the consumer will do for stocks that i own. he also says bitcoin would go to $25,000 a coin. hmmm. what does he think now? more "varney" after this. and the beatles too. ♪

♪ ♪ baby you're a rich man, baby

you're a rich man ♪ stuart: this is my anthem. baby you're a rich man. i wish. i love that song. susan: do you ever pay it? stuart: i love that song, the harmony just crisp. we're off and running. big board, not at high of the day but pretty close. that is a 1.09% gain. where are the big techs today? they are all up, nicely so. most of them report earnings next week. they're you have in advance of that. look at apple up four bucks at 156. got it. look at canopy growth. that is a canadian cannabis company. an analyst upped its target price from 40 to 60. up that thing goes. that is a 6.% gain. still on the markets, we have thomas lee with us, hotshot market guy. don't mind use of that word. hotshot, you'll take it, won't

you? >> i will wear a pilot suit next time. stuart: you're a managing partner at fun stat global and you like stocks that cater to the consumer like j&j, proctor & gamble. >> yes. stuart: ups, home depot. what's so good about the consumer this year? >> well the consumer is getting a boost from the millenials because they're a huge cohort and they're starting to make a lot of money. stuart: they are? i thought they were weighed down by student debt? >> have you seen unemployment data? it is quite low, right? >> it is. >> so they're getting good jobs and they're getting decent say. but you're right they are hobbled with student debt. hasn't hurt as much for housing as people think. federal reserve, only few basis it is not everyone has student debt. stuart: economy is slowing down and there is a global slowdown and consumers will not be spend as much they used to. you're running completely counter to that.

>> there is for sure a speed bump is building and it is getting quite large as the shutdown gets stretched out and there is impact from trade but we don't want to mix up short-term impacts versus true secular changes. i think the u.s. economy is still quite resilient. stuart: you like chip-makers, the texas instruments of this world. why? you're the second person on this program who said they like the chip makers. >> we wrote about it this year, there is peculiar seasonality and semis refiners do unusually well in the first half of calendar year. whether you believe or not there is recession you make a seasonal bet on semis. the semis hit so hard last year, bottomed last year, it is confusing sectors, is this early cycle or dead-cat bounce but either way we think it's a seasonal trade. stuart: what about intel, that is down three bucks today. what happened there? >> of course, you know, you have

got to face reality of disappointment. so you know, long term, if you look at intel has done great. it's a high quality name. it has a pretty good total return in terms of dividend and free cash flow. stuart: is it a buy at 46? >> yes. stuart: it is? >> yes. stuart: this lime last year, you were on this program that you said bitcoin would go to $25,000 per coin. you're nodding sagely. >> yes. stuart: you said it would do that by the end of 2018. obviously it didn't. what went wrong? >> yeah. a huge disappointment. neither came on terms of price or by calendar. you know, last year was a year where the crypto bubble was really adjusting because there were a lot of icos and flawed projects. we thought about it coin would survive that. it didn't. it got sold off with the rest of the market but -- stuart: do you wish you never said bitcoin goes to 25,000 buck as coin? >> i strangely i just think that

is a, that is a good fair value for bitcoin but timing of that is going to be difficult. so i don't -- stuart: do you think at some point it goes to 25 grand? >> yes. it is, first it is bitcoin has had 70% pullbacks four times already in its 10 year history and recovered to new all-time highs every time. to me it is resilient. second it is crypto becoming an asset class, absolutely. it is especially driven by millenials and outside the u.s. there is interest of digital currency, digital asset store of value not tradition store of money. stuart: tom, you have a sure fire way of getting on television. make outrage just claim about bitcoin and talk about it. >> having to face the reckoning unfortunately. stuart: welcome back. good to see you. >> thank you. stuart: tom lee, thank you very much indeed. >> thanks. stuart: we have the dow up 255 points. got that and look at this. congresswoman maxine waters, she heads the house financial services committee.

she laid out her agenda for this year and she is going right after the banks. let's bring in kristin tate, columnist of "the hill," author of the book "how do i tax thee? " i love the title by the way. kristin, what damage do you think maxine waters could do to the banks? spell it out what could she do to them? >> she could do a lot of damage but a lot of these big financial institutions have violated the law and need to be held accountable. like wells fargo. they were caught creating 1.4 million fake fee-based accounts for customers just to collect the fees. so that stuff has got to stop. i don't care if they want to throw white-collar criminals in prison for violating the law but here's the thing, stuart. marks even waters and alexandria ocasio-cortez, these left-wingers of today's democratic party, their agenda extends far beyond just holding white-collar criminals accountable. these people hate wealth. they hate capitalism. and they hate rich people.

how do we know that? because they say it out loud. ocasio-cortez said she think the it is immoral that the u.s. allows billionaires to exist. i think waters 'goal extend beyond just holding financial institutions accountable. she will want to punish big banks just for being profitable. and i've got to say, ironic we're watching the rise of these socialist democrats while we're watching the fall of venezuela. stuart: interesting. on our program yesterday is betsy mccaughey, former lieutenant governor of the state of new york, i asked her the same damage, what damage, what could maxine waters do to the banks and here was her response. >> for example, she is targeting corporate america saying corporate america has not put enough racial minorities and women on its boards. that may be true but she has formed a new subcommittee with the goal of legally requiring that all public companies report

annually on the gender and racial composition of their boards. that is the first step towards quota. stuart: what do you say to that, kristin, quotas for racial and gender? >> look, like waters i would love to see more women and people of color in business but forcing companies to, basically quantify their board members by gender and race, would probably lead to quotas and as we know quotas dilutes the talent of women and people of color. people should never have to wonder if they were hired just to check a box. and diversity mandates often have poor results because companies, who are faced with diversity mandates need to focus on filling quotas, rather than letting the best talent rise to the top regardless of gender around race. stuart: we'll wait for those hearings which will be coming up shortly. kristin tate, thanks for joining us, see you soon. >> thanks for having me. stuart: i have to get back to the breaking news. the faa says there are departure delays at three airports,

laguardia, newark, philadelphia international due to a air traffic controller shortage. we're on this one. i keep saying it, when you got that kind of problem at airports, that's pressure on congress and the president and nancy pelosi. fix this government shutdown. i think the pressure is -- susan: wow. stuart: we'll keep you updated on the faa story. next hour we'll talk with someone who moves the markets, andrew left. he says he thinks tesla is going up but he is not touching netflix with a 10-foot pole. he is on the show. there seems to be actually movement on ending the shutdown. both sides are talking. i want to know what we'll see real progress on the shutdown? i think it might come soon. we'll be right back. ♪ 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.

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♪ ashley: in the last hour trade expert curtis ellis told us the outcome of the u.s. border wall fight is being watched very closely by china. take a listen. >> he promised to build a border wall and stop the uncontrolled immigration. similarly his other central promise in the campaign was to get tough on china and stop the chinese economic aggression and abuse of all-americans, not just

elders. and so they want to see what happens. he's got to hold firm on the china trade deal just as he has to hold firm on the border wall. so they're waiting to see if he caves on the border wall. then maybe, they can roll him on the trade.

stuart: this is off the high of the day. the rally is up 287 points. the dow is back above 24,800. it's a rally. to venezuela, the president trump announced throwing his administration support behind the opposition leader juan guaido. vladmir putin supporting maduro. maduro said we have the weekend to get u.s. diplomats out. the state department says, no they're staying. that is confrontation. we have michael balboni. former director of homeland security. welcome to the program. >> thank you. stuart: if any harm or threat come to our diplomats in caracas we have every right to go in and defend them. that would be called a coup, wouldn't it? >> article iv of the vienna convention talks about the whole diplomatic scheme the host country has absolute responsibility to protect the diplomats and their families in

that mission. stuart: yeah. >> but they also have to ability to declare folks persona non grata. if that happens they risk losing that immunity and could be subject to arrest if they come off of the compound. what is scaring a lot of people the instability of venezuela right now. whether or not an iranian type situation could possibly happen. stuart: or hostage-taking? >> exactly. they go in and that is against any of the protocals. venezuela is a signatory to the vienna convention. the question becomes, if god forbid that were to happen, there were no good options. particularly china and russia are weighing into the conflict. you don't want this to escalate into something beyond this regional conflict. stuart: that is where he are, isn't it? there is real possibility much escalation here, because russia and cubans are on the ground. they support maduro. so does china. that is a confrontation in the

making. i do believe it would center on the diplomats in the embassy? >> a lot of people? in the state department are looking what does it mean other countries supporting the opposition candidate as well, like brazil. is there a way to form a coalition group that mirrors support of what united states is talking about, the opposition party? and what does that mean in terms of the government itself? there have been massive protests against maduro. stuart: oh, yeah. >> the question is, is there a way you could influence some of that, first after you will protect the -- first of all, protect the embassy and its pa participants but also the world community. can you form an opinion outside of the world community and china and russia, this opposition leader is a legitimate leader of nation right now? stuart: this is form of intervention i think is legitimate. you remember marcos of the philippines. people marched against him, occupied his palace. >> right. stuart: america, i think the cia

actually got him out of the philippines and installed him in hawaii. dictator gone, no bloodshed. wouldn't that be a good thing to happen in venezuela? >> it would be but, probably would be, of course if you're china and russia, if anyone will do any removal and installing it is going to be them. russia really looked to try to have a footprint in south america through venezuela for years. that has really been their focus. so they're not going to just let that go. putin has eyes on that, particularly the oil reserves. stuart: do you think it is encame in venezuela this weekend or very close. >> it is really close. a humanitarian crisis has been brewing for a very long time in venezuela, you begin to wonder how much resiliency does the population have sit there, saying no, we cannot live there like this anymore. we'll take it back. stuart: the left in america doesn't want us to do anything. the left is accusing trump of intervening and creating a coup

situation. you don't see it that way, do you? >> there are two different dynamics, one is the president's support of opposition leader, that is controversial. the other move is to say, in face of maduro saying get it off the country, saying no, we're keeping people there. that is the touch point of the controversy right now because we still do have personnel in country. stuart: michael balboni, you know what you're talking about. >> thanks for having me. stuart: thank you very much. there seems to be actually some movement on ending the shutdown. both side are talking. i want to know when we'll see some real progress. martha mack mag -- martha maccallum will be with me shortly. will we see progress in the very near future? we might. i'm speculating about that. look at that it is almost the high of the day. almost 300 points. look at that level, 24,846. i will call it a rally.

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stuart: if we hold on a second, somebody buy something we'll have a 300-point rally for the

dow industrials. we're around plus 288 but we'll take it. 24,800, is the level. i have to update a breaking news story, delays at three major northeastern airports that would be laguardia, newark and philadelphia international. this is due to a air traffic controller shortage which is the result of the government shutdown. big deal. i think this is more pressure to get a fix on the shutdown. martha maccallum is host of "the story" on the fox news channel. 7:00 you go on the air i will make a prediction. >> okay. stuart: i think you will have pure movement on the shutdown by then. that is pure speculation. >> i will agree the airport situation might be the first indication that regular folks across the nation are having impact, right? you have 300 million people in the country. 800,000 who have been furloughed

for two pay periods. when you boil it down that way, it is not affecting that many people. you have concerns what is going on at tsa, all that, that is affecting others. if this turns into a larger reaching situation, that might be the first thing that affects everybody. that might force change. however, going into this -- stuart: you're not -- >> i just don't know. the last night the president being very enthusiastic about the fact that chuck schumer and mitch mcconnell are talking. you go through all the back and forth between two of them, it is really great because they're talking and it is good and their talking and they are talking and that means something is happening, and two votes yesterday after afternoon didn't have the juice to pass. it is looking good the votes but it looks good they're getting in there and voting and talking. chuck schumer will not do anything without blessing of nancy pelosi. she won't agree this will get

done in the house. she didn't doesn't want the president trump to say in any shape or form i got a little something for the wall. that is the rub here. stuart: you don't think she will ever bunbudge an inch much, speaker pelosi. >> she is under a lot of pressure from the left side of her party. stuart: goes on forever. >> i agree with you it can't go on forever. i think it makes people antsy. i don't know that is has deep impact on the country overall over a period of time. stuart: i don't think it does. >> more of an headline than actual impact on people. the airline situation may be a bit of a catalyst because it might affect regular folks all the way across the country. not to say people not affected by paycheck furlough, will get the money eventually. not saying they are not going through a tough time. of course they are. stuart: of course it does. >> widespread pain is not necessarily there. stuart: let's add it up. president trump negotiate the. >> a number of offers. given them quite a bit. stuart: the president has given quite a bit.

>> daca, border support, all of that. stuart: steny hoyer, number two democrat in the house, five billion dollars, no new structures, knife billion dollars, we can work our way to that. we have senator schumer and mcconnell. they have been talking. i know that doesn't mean a whole hill of beans but they have been talking. i do see see movement everywhere except nancy pelosi. there is a limit to how long she can say, no, no, no. >> i think you're right about that there is one other option. the president could agree to reopen the government with steny hoyer's suggested money and no wall per se. and go the national emergency route where there is said to be about $7 billion in money that they might be able to pull together. okay, you guys want to do it this way. i will still get my wall the figure out a way to do it. he would fight back, even court pushback, but say to his supporters, i went to the wall for you, so to speak and i'm going to figure out how to do

this one way or the other. stuart: where do you stand? 7:00 tonight, you go on television. >> you say i will have big breaking news and we'll have a breakthrough at 7:00. i hope you're right. stuart: i think you will be delivering the news if there is real movement. >> we'll see. got a long way to go between now and then, right? stuart: you are never supposed to say in journalism, time will tell. >> i cross out, all eyes on. no, no we hate the hackneyed phrases. stuart: i will be watching at 7:00 tonight. i want to see if i'm right or wrong. >> you can dip the number over 300 here. somebody has to buy something. not going to be me. ashley: stu, get on your phone. talking about a -- hello? stuart: talking about, martha, good to see you. senator elizabeth warren want as wealth tax. if you're worth 50 billion doll bucks, the government could

seize your money. it is a signal socialism is alive and well in the democrat party. susan li is appalled. >> with a y. stuart: i wrote it. i can't spell. editorial, top of the hour. stay there please. ♪

stuart: senator elizabeth warren wants a wealth tax. that's new and it's dangerous. if you're worth $50 million, the irs would seize some of your money. go into your bank account or brokerage account and take it. it would be called a tax but in reality, it is confiscation. you shouldn't be allowed to accumulate such wealth and besides, who needs all that money? that's what socialists do. they gin up this envy and jealousy of the rich so taking their money, taking it away from them, it seems justified. it's not. for a start, it's double

taxation. you already pay the irs as you accumulated your money. i thought our constitution did not allow the seizure of private property and cash or stocks or bonds, that is private property. plus, where does it stop? senator warren puts the cut-off point at $50 million. you think it would stay at that level? no. the left always wants more of your money, and that $50 million threshold would come down real fast. a new fox poll suggests that taking money off the rich would be popular. 70% think it's perfectly okay to impose much higher tax rates on the rich, especially those making more than $10 million a year. half think it's okay to stick it to people with incomes of $250,000, raise their taxes. that's what they think. senator warren is laying out the groundwork for a presidential run in 2020, and taxing the rich and confiscating wealth is front

and center in her campaign. it's a signal that socialism is alive and well in the democrat party. you've got it, they want it, and they're going to take it. watch out. the third hour of "varney & company" is about to begin. stuart: all right. we will deal with the wealth tax just a little bit later in this hour. right now, let's get to your money and check the markets. holding on to a big rally, 271 points higher, 1.1% on the upside. that is a rally, case closed, a rally on the nasdaq as well, by the way. our next guest says tesla, the stock, will go up after it reports profits next week. he is our guest today. andrew, welcome back to the show. always good to see you. what's so good about the earnings report that will get

tesla stock up again? what is it? >> i mean, you can't really say what's going to be good about the earnings report but we know one thing about elon musk. whenever he says anything good, something bad might have happened. whenever he talks down the company as he has in the past few weeks, you can look for something good. i think the demand is there for the car, the cash flow is there and the body language by management, if you read through it when he's been talking things down, probably means he puts up a good number next quarter. stuart: but he's got to pay out a lot of money when these bonds come due. doesn't he have to have the stock at like $350 per share and if it doesn't hit that level, he's got to shell out a couple billion cash? isn't that the situation? >> yeah, no doubt. i mean, it has to be over $350 a share for it to convert and if not, it will eat right into the cash flow. but if the company's producing that much cash flow, that's a part of business. it will eat into it but we'll see. he's promised the amount of cash flow that will service the debt. stuart: does he have the money?

>> if they put up a good quarter that is expected, yeah. it just seems when he starts talking down the stock, look at musk over the years, what's happened. when he talks down the stock, something good's going to happen. stuart: have you bought it? >> i owned it a few months ago. i'm long the stock, small, not a large position, obviously it's a speculative stock. i wouldn't suggest anyone make it a large position. stuart: what's this about restoration hardware? you say it's going to see a better than 100% return in the next two years, doubling, in fact? when you made that claim, you moved the market. >> why not. i think it's the claim itself that moved the market. if you read the report it's extremely valid. imagine a company with zero competition in its space. it's an amazing thought, to think no competition. it's a high end retailer, lifestyle. they will get the hospitality,

dining, it's a luxury platform, amazingly cheap. analysts are comparing it against ethan allen and it couldn't be different. it's exciting. it's a wonderful concept and relatively inexperience considering it has not gone international yet. stuart: let's talk about twitter. i understand you believe alexandria ocasio-cortez has made twitter more, as you say, female-friendly. is that a reason to buy the stock at $32? >> well, i put out a note a month ago that i was very concerned that a report was put out by amnesty international discussing that twitter is very anti-women, filled with hate speech and a platform that maybe advertisers shouldn't gravitate to. what's amazing by aoc, what she's done is taken that argument and thrown it on its head. whether you like her or not, all politics aside, it's the fact she chose this as her platform along with the president, more validates it to millenials and a

different generation of users but more importantly, it's embraced advertising dollars and it quells concerns the amnesty report brought up last month. stuart: fascinating. you are an original thinker. you are a valuable guy. talk about facebook, because the last time you were on the show, you said buy it in 2019. still feel that way? >> actually, i put out a report about buying facebook at around $128 i think a month ago. the truth is, facebook is still relevant. my son is in the studio right now. he doesn't get off his instagram. people still use it, advertisers. advertisers value from it. i get the fact it was evil but what's interesting this year, that evil facebook was trading at a cheaper multiple than philip morris. if you want to call facebook evil, philip morris not evil, we have to check our values. stuart: i don't think they're evil. i just think they're big brother.

i have a real problem with big brother. all politics aside, you came straight at it there. how about netflix? >> it's business, just business. stuart: exactly. >> netflix, netflix is the opposite. i understand people love their netflix. netflix, unlike facebook, is not a platform. they have to make shows, recreate shows, and for somehow they seem to be that just because they can expand their pricing, the stock will go higher, they still lose a lot of money. i think this will be the year that we will gravitate towards companies that make money and high growth companies that lose money will fall out of favor. i know right now, everyone's all giddy that netflix can raise pricing but when you sit back and realize that they must consistently make those shows and burn that cash, the trick doesn't seem to be as valuable as people are presenting it right now. stuart: i really like it when you go through some of these big name stocks and give clean-cut opinions about where the market is going to take them. i also like it that you don't care, i don't think you care about the government shutdown,

about china trade or the federal reserve. you don't care that much, do you? >> i mean, the point is, as someone in the stock market, i can't handicap when china is going to be resolved. i can't handicap what the effect of the market. what you try to do is find good companies and buy them or find companies that eventually bad -- not bad, overvalued companies that will go lower. you can't handicap politics. stuart: true. you can't. >> that's way out of my pay grade or anyone. we can hope for resolution, but you know, of the china issue, but i think the companies will look through it. stuart: can i try you with this one? i own a little bit of microsoft. i have owned it for years and years and years and years. i just let it ride and have done well. should i sell it? >> amazing management, microsoft. what an amazing job they have done. the only scary part about microsoft to me is that the level of complacency among shareholders. everyone just looks at it as like an annuity.

it's that safe. historically in any stock where we've had that feeling, something dangerous is around the corner. but that being said, that's just a sensement. it really is owned by a mass ownership who looks at it as being a rock. stuart: okay. i think you got it right. there's the one-year chart. did you just call me a genius? you did. you are coming back, andrew. no question about it. my best regards to your son, too. andrew left, good man. see you soon. thanks. our breaking story, delays at three major northeast airports, laguardia, newark, philadelphia international, because of air traffic controller shortages. the faa says there's been an increase in sick calls. i say this adds pressure to get a deal done to end the shutdown. it's the shutdown that's now affecting those airports. got it. just a few days after the most expensive home in america sold in new york for $238 million, what's on your screen

is a megamansion in malibu. it dropped its price. first it was listed at $250 million, now it's on the market for $150 million and it's still one of the most expensive homes on the market in the country. this hour, we take you inside. staying on the luxury markets, there's a prediction of a slowdown in luxury home sales this year. is it because of the new tax laws? i think so. we talk to two real estate powerhouse people, mother and daughter team, on the show today. first, we have to deal with senator elizabeth warren. she wants a wealth tax and i say that's a clear sign that socialism is alive and kicking in the democrat party. we are on it. we also talk to democrat congresswoman katie hill, who says she will support some sort of physical barrier at the border. would she be open to the president's offer of ending the shutdown for wall down payment? we are asking and we're on it. stay with us.

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stuart: let's see now. it's day 35 of the shutdown. i say there's some movement towards a deal to fix this shutdown. president trump says he's open to ending it in exchange for a wall down payment. senators schumer and mcconnell met to discuss possible next steps. some moderate democrats also coming forward urging a deal. get this government open again. congresswoman katie hill, democrat from california, joins us now. congresswoman, thank you very much for being with us on the show. we appreciate it. >> thank you for having me. stuart: i believe you said that

a physical barrier at the border is necessary, key word, necessary. so would you support a temporary deal to end the shutdown, allowing some kind of physical barrier? >> well, the deal that i believe has to happen is that it's going to take some work for us to come to the comprehensive border security arrangement that we need to, and we are seeing major problems related to the shutdown now. you mentioned earlier the economic problems that we're seeing from it and the flights that we are seeing canceled and majorly delayed at huge airports. i have a major flight center that is in my district where air traffic controllers who control all of the flights coming into southern california and surrounding airports, surrounding regions, are 6,000 flights a day are controlled there, 300 air traffic controllers. we have to open it now. two paychecks that people are missing is completely unacceptable. then let's do the deal. stuart: but speaker pelosi would

not accept a barrier, a border barrier. she won't accept it. she's holding this up. >> i don't think she said that. i think she said there's not going to be a wall, there's not going to be a 2000 mile concrete barrier. even trump is not asking for that anymore. stuart: she hasn't gone anywhere near the president who has suggested, latest is a down payment on a border wall. he suggested that. no response from speaker pelosi. your leader. >> the problem is, if he's asking for a down payment right now, as part of the deal to open the government, that puts us in this position where this could happen over and over again. let's say we do this quote unquote down payment, then he opens it for three weeks. what happens if we don't come to the arrangement that he likes in three weeks? does he shut it down again? do we put our federal workers through this exact same catastrophe again? stuart: but you would get the government off and running. these airport delays, that's going to affect tens of thousands, if not hundreds of thousands of ordinary people, not the 800,000 furloughed

government workers, but ordinary people trying to go around their business. that surely raises the pressure, just get this thing done. >> i agree. get this thing done. get it open and then let's talk. let's get the final deal that needs to happen and frankly, it's illegal for this to happen. stuart: sorry to interrupt you but isn't that what the president is saying? >> no. stuart: give me a down payment on the wall and we'll talk. >> but why is it okay for him to get what he needs, what he wants, and say that he's okay to hold this leverage? it is complete b.s. stuart: because the government starts to run again. >> it's a crisis he created, a crisis that he said he's going to make because he wants his stupid wall. stuart: stupid wall? >> it is a stupid wall. we can have barriers and border security, democrats have always wanted it, but we don't do it on the backs of federal workers and now the hundreds of thousands of people dealing with these flight delays. stuart: would you say a structure is necessary? >> it is along certain parts. but we don't do it this way.

this isn't how we legislate. this isn't how government works. and frankly, i'm mad at this point. it is no longer okay for us to even be talking about this, because we have to open the government and then we need to come to this comprehensive plan. that does include some barriers, it does include all these aspects we have been talking about but by god, we don't get to do it on the backs of federal workers and the backs of this huge economic loss we are seeing, and he's the one who is stopping that. mitch mcconnell is stopping it. let's come to a deal that opens the government right now, gives us the time to come to an arrangement. stuart: senator schumer voted against a bill which would have paid the coast guard. surely we can come together on this one, can't we? it's not all the president's fault, it's not all nancy pelosi's fault. there's fault on both sides here. i think a lot of people are saying enough, come on, come on, get this thing going again. the pressure is mounting and there is movement towards getting the government up and running again. there is.

>> listen, the arrangement, the deal we are going to come to is frankly going to tick off a lot of democrats but we have to open up the government now and leader pelosi, schumer, are going to lose some democrats on this deal, whatever ends up happening out of this. we are going to lose some of the left, possibly even a big part of the congressional hispanic caucus, but we have to have this long-term deal that is going to be bipartisan. it's just that it can't be negotiated this way. it cannot be -- i don't think the government shutdown should be legal in any way, shape or form. stuart: tell that to some of the thousands of people who are delayed in their air travel today. >> trust me, i agree. i completely agree. stuart: congresswoman, we really appreciate you being with us today. it's a thorny issue but we want to get at it. we appreciate it. >> thank you so much. stuart: sure thing. now this. facial recognition becoming more integrated, shall we say, into our everyday lives. airports are starting to use it.

in this new age of little -- there's no privacy, where's the balance? how do we use facial recognition without overstepping our privacy? or stepping on our privacy? we have a good story for you. and we have a list of the best jobs in america according to a survey that broke it down by salary and satisfaction. we will give you the top five next. first, this million dollar home in canada could be yours for $19. there is a small catch. there's always a catch. we will tell you what the catch is, next. ♪ it's absolute confidence in 30,000 precision parts. or it isn't.

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stuart: you could own a $1.7 million home in canada for just $19. all you got to do, pay your $19, write an essay about why the home should be yours. if you win, you got the home. you paid 19 bucks. it's 5,000 square feet, it's in the rocky mountains of alberta. the competition has to generate enough participants to offset the minimum asking price, so 68,000 people have to enter.

but you could win. ashley: i'm in. stuart: before the break we asked you to guess which are the best jobs in america. according to glassdoor, it is data scientists. that's number one job, okay? it looked at things like salary, job satisfaction, number of job openings. number two, nursing manager. rounding out the top five, marketing manager, occupational therapist, product manager. you see the salaries right there. thanks to new technology, sports fans can interact with pro football hall of famer john madden at the super bowl. a company used a combination of ai, augmented reality, 3d animation and facial motion capture to create an interactive version of madden's bronze bust. let me tell you how it works. you download a specific app, put your phone or tablet in front of madden's bust and ask your question. then his face comes to life and your screen, and answers your question. can't wait.

ashley: little disturbing. stuart: real estate, a premise we discussed on this program, the student loan debt is really hurting the housing market. millenials, especially. the federal reserve believes that and acknowledges it, too. coming up, we are talking to real estate powerhouse mother and daughter team dolly and jenny lentz who say student loan is a problem for new home buyers. i will also ask them about the luxury home market. a slowdown is expected this year, maybe because of the cap on state and local tax deductions. we have the full story. this malibu megamansion dropped its price. it was first 250, then 150 million. you are getting a live look inside one of the most expensive homes on the market in the country. we've got an up close look inside of it, next. ♪

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stuart: well, i'm not going to whine and moan and complain -- ashley: thank god. stuart: we were up nearly 300, now we're up 225. i think we'll take it, ash. ashley: let's take it.

stuart: most of the dow 30 are in the green. they're up. now this. apple will report its profits tuesday. our guest says that stock is a buy. ray wong is back with us. let me preempt you. you say apple goes to $200 a share this spring. it's now about $150. make your case. >> all right. well, i'm still bullish on apple. a lot of it is on the services side. we are actually seeing that transformation is happening because of not just the revenue that's coming from apple care, the revenue that's coming from all the additional apple store services and also the fact that during the holiday season, they did a lot of interesting bundling promotion with the carriers which they haven't done in some time. i think we will see the revenues pop in from there. first, happy friday. stuart: you think it's going to be strong enough for the stock to go up by one-third between now and, say, april? >> part of it is also the china piece. the china trade. the answer is yes, i think it's going to do that by june, not by

april, but by june, when we come back and realize hey, the value is coming back to tech and that's been happening slowly as we watch the markets responding. stuart: i read your stuff. you are telling the world that amazon is going to go to -- back to $2,000 a share but that's late this year. why so late this year? because it's been to $2,000 before. >> i think it's going -- back to the same thing. i think there's investor sentiment. they will do the value rotation somewhere in june, where people realize we got to get back into the big tech. they want to get an advance on what's happening with the holiday season. but prior to that, you are going to see some huge numbers come from aws, which is the cloud unit, that's powering all the data centers, powering all the ai, powering all the iot initiatives, the hot pieces that are going to continue and they are still gaining ground in the public cloud market, which is like a trillion dollar market. we are just starting out. we are at the beginning of this market which is why it's very exciting. stuart: you have been on a roll

recently. you have recommended some stocks and they do well. you recommended adobe. why? >> i like adobe because if you think about the revenue, 80% of the revenue comes from creative cloud, 20% from the enterprise side. they are doubling down on the enterprise side with an acquisition they made. they are going after commerce. they got everything from creative to commerce in both b2b and b2c, they are remapping their units and actually bringing on new leadership. that plus the fact they have been pretty dominant in the marketplace is really exciting. they also just picked up a company called algorithmic yesterday which is all the 3d imaging required for e-sports, video and gaming, but adobe is the dominant player there. stuart: i saved this until last, microsoft. i know you like it. it's at $107 a share now. where is it going to? >> we think it's going to go to

$120 by '22. part of it is because there are cloud businesses going well, gaming businesses going well. they have a really good strategy and are doing something really cool. they are building winner take all network economy. you saw the deal with walmart and kroger with microsoft. those are really important deals where they are going not just after a company or industry, they are going after the entire value network and building the partnerships there. stuart: all right. ray wang, you are coming back, i don't care whether or not you can hear me, you are coming back on the show and that's a fact. thanks for joining us. $120 on microsoft. let's not forget that. now this. a 12 bedroom, 38,000 square foot megamansion in bel air just became a little more affordable. originally on the market at $250 million. it's chopped all the way down to $150 million because they couldn't find a baier uyer at 1. show me the place, hillary vaughn. reporter: well, this megamansion

has five bars, three kitchens, 40 seat movie theater and a man-cave. this is the first level of this megamansion. it has a candy bar, it has foosball tables, enough to host your own tournament. but coolest of all, it has a four-lane bowling alley, louis vuitton the designer. i guess you are guaranteed to get a strike. it is also fully stocked with exotic vehicles. this fleet is worth over $30 million alone. there's a custom rolls royce and a helicopter on the roof if cars aren't your speed. there are four levels to the house. it has an 85 foot infinity pool, with a 270 degree view from downtown l.a. to the ocean. if it sells at this modest $150 million, it will be the most expensive home to ever sell in l.a. county. stuart: well, you gave us a look at it. ashley: there's a lot in there.

stuart: not putting in a bid immediately. thank you very much for joining us. we will stay on luxury real estate. recently the most expensive home in the country actually sold and we believe the price has just been registered at $239.9 million. a penthouse just south of new york's central park. hedge fund manager ken griffin bought it. well, look who's here. mother/daughter all-star real estate team, dolly and jenny lentz. great to have you with us. dolly, tell me about this $239.9 million. >> we are talking 24,000 square feet that he has to yet build out. very lucky architect and designer, for sure. probably it's going to be 2,000 a foot at least to build out. so it's going to be a huge

number. but that's not his biggest purchase. actually, his biggest purchase is land. so it's not considered property yet so it's buildable land, in palm beach county, $239 million assemblage on which he will likely put a $100 million plus home. that will eclipse what he's doing here. we have a prolific buyer and truly, i think he's going to be the poster child for this new tax that's being proposed. the confiscation tax. stuart: he better hope elizabeth warren is not the next president of the united states. to you, jenny. i understand the luxury home market has been under some pressure and i think that's because of this new tax law, the salt deduction which we can no longer get. is that right? >> we think our clients haven't digested that yet. maybe come april they will think more about it. usually it's purchase price we are hearing. things got too expensive too quickly and it's really not sustainable.

so we have seen the luxury market slow. stuart: it slowed. have prices come down a little bit? >> they have. we would say about 10%. that's also because chinese buyers haven't been around like they have been in the past. stuart: is there a relationship here between china, what's going on with our trade talks, and luxury real estate in america? >> well, it started before, because china started all their problems with us before the trade issue, right? so they started saying you can't buy property in the u.s., you can't pull money out of china. in fact, jenny has friends at nyu can't even get their tuition money out of china. >> that's 60 grand, not down payment for an apartment. >> exactly. so it's really beginning to impact us. but it's going on for awhile, well before the trade issue. stuart: quick question to both of you. jenny first. the student loan debt overhang, a real problem for housing? >> huge problem. it's not like, you know, most millenials don't own homes already so it's not like they

are selling into the market they're buying. they have no equity right now. so that really does impact millenials. so does a lot of other things. we are facing a lot of headwinds. it's not like we worked at gm for 30 years, all my friends work at startups and next year they could be moving to san francisco for another startup so there's no real reason to buy a home, so everything is just being pushed later. stuart: it's entirely understandable. you have got a huge debt, student loan debt around your neck, it's hard to go out and buy a house. >> for sure. this is really i think the next crisis, truly, to fall. the student loan crisis. stuart: interesting. thank you very much for joining us today. >> it was fun. stuart: the mother/daughter team here actually watch this program. >> every day. >> every day. we love the dynamics. we will be here, 11:00. stuart: you will see more of dolly here on fox business network. she will be a guest on "women and money" with deirdre bolton

tomorrow at 9:00 p.m. eastern. now this. the coast guard, the only branch of the military not getting paid during the government shutdown. senator schumer blocked a republican bill that would pay the coast guard while the shutdown continued. coming up, we talk to a congressman who was a sponsor of that bill. what does he think about it? we will also be joined by a man who runs a tech company that's focused on facial recognition. he says it's changing how we use technology. they also make technology right here on your screen. license plate recognition. it can detect and analyze plates. firearm detection, able to detect firearms in real time. what about privacy concerns, though? what about big brother? he's going to break it all down for us, next. ♪

stuart: bitcoin with rising value to $25,000 despite its current level of just about $3,000. roll tape. >> last year was a year where the crypto bubble was really, you know, adjusting because there were a lot of ipos and projects. we thought bitcoin would sort of survive that. it didn't.

it got sold off with the rest of the market. they have had 70% pullbacks four times in its ten-year history and recovered all four times. to me it's resilient. second is crypto becoming an asset class. absolutely. i think especially driven by millenials and outside the u.s., there's an interest in sort of digital currency that's not traditional money.

stuart: corporate stories. here we go. virgin launching an adults only cruise ship. it's called "the scarlet lady." it will have grownup amenities, a nightclub, spa, tattoo parlor. ashley: right up your alley. stuart: the ship sets sail from miami next year. i will not be on it. ford may release a compact pickup truck even smaller than the current smallest, the ranger. reportedly considering the name courier for this new truck. no guarantees it will be sold here. it may only be released in europe. ford stock not reacting to that but it is up a nice 3%, almost back to $9 a share. our next guest runs a tech company focusing on facial recognition. he says it's changing how we use technology, having a big impact on society. you can say that again. his name is sean moore, ceo of tru face and he's with us now. you look awfully young.

are you a millenial or something? >> i could be. stuart: good for you. good for you. okay. facial recognition. there's an opt-out. that's important to me, because i'm concerned about privacy. explain the opt-out. >> so we feel that it's important to take privacy very seriously in this environment. stuart: sure. >> it's very quickly changing, technology is becoming more prominent in how we interact with people, things and buildings, so the privacy piece to us is significant because we are allowing people to opt out of certain programs, meaning their data is not being stored. if you opt in such as at an airport, you can advance in the line faster, you can board a plane faster. we are giving people the option to partake in this technology. stuart: okay. so your technology could be used at an airport to speed me through the booking process. >> absolutely. stuart: but i can, in fact, if i wish, say no, don't want it? i can say that? >> correct. it's going to depend on where

people are deploying the technology, what application. stuart: okay. okay. now, what about license plate identification? that's another use for your technology, correct? >> correct. stuart: how's it work? >> we basically read the license pla plate. when you think about it, there are cameras everywhere. that's not a secret to anyone. and we are empowering our clients to make use of the cameras that they already have existing. so all of our technology is deployed locally on our client infrastructure, meaning the data is protected by the client. so when we look at what we can do with computer vision, it's anything from threat detection, identifying a firearm in realtime and reducing the response time for the authorities to license plate recognition so you know who's on your premise. we are trying to empower our clients with this information. stuart: there's something here called age detection. sorry, what's that? detecting older people? >> so as we look at the future of retail, we see the automation of retail as the next big thing, and what that encompasses is

being able to identify you as who you are to provide for payment, more secure payment, so reducing theft and fraud, and also age verification for things like alcohol and cigarettes or where age is a requirement. instead of asking you for an i.d., we can say that with 99% accuracy level, we know you are under 25 years old. stuart: i got to tell you this. we had a gentleman on our program yesterday who told us that china is able to track anybody, anywhere in the world, using facial recognition, and can say who they met with, where they went, what they did, anybody, anywhere in the world, realtime. now that's frightening. >> social networks. they have that information as well. so you know, the way that we perceive this is that the camera infrastructure is already there, correct? and so you know, you say surveillance, we think of well, what if we can reduce trafficking, what if we can find missing children like they did in india, they found 3,000 missing children in four days. what if we can know that an

individual should not be on a school premise? that provides a safer and smarter environment for us all to live in, one in which we deserve. stuart: it's just frightening, though. you see where i'm coming from, don't you? we are always being looked at and identified. trueface is a private company? >> it is. correct. stuart: you are the ceo? >> i am, yes. stuart: your name is sean moore. you got a piece of the action here? >> yes. stuart: big piece of the action. we will find out, i guess. you aren't going to tell me. >> no. stuart: are you planning to go public? >> not at this stage. stuart: wait until you are worth a billion. it was a pleasure. thank you very much for being with us. >> thank you for having me. stuart: now this. the coast guard, the only branch of the military not getting paid during the government shutdown. senator schumer blocked a republican bill that would have paid the coast guard while the shutdown continues. coming up, we are talking to a congressman who is a sponsor of the bill that was defeated. he said the democrats are holding workers' paychecks hostage. he joins us shortly.

we will also deal with senator elizabeth warren who wants a wealth tax. ouch. hold on to your wallet. we'll be back. ♪ some things are good to know. like, where to find the cheapest gas in town. something else that's good to know? if you have medicare and medicaid, you may be able to get more benefits

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stuart: let's get to the shutdown. at least 14,000irs workers did not show up for work this week. that's according to "the washington post." 14,000. meanwhile, senator schumer blocked a bill that would have paid the coast guard during the shutdown. coast guard's the only branch of the military that's not getting paid. come on in, michael walsh, republican from florida, who was one of the sponsors of the bill that was defeated. what's your response to the defeat? >> well, look, it was a bipartisan bill. both sides, 133 co-sponsors. senator schumer on the other side wouldn't even put it on the floor. and this is to pay our coast guard men and women, i'm about to talk to the commander of a base in my district right after this. we have, for people who don't know, they are actually sending ships overseas. one just left for the south china sea with 170 crew members who aren't getting paid and whose families aren't getting

paid while they're deployed, while they're deployed abroad. so this is a huge issue and this is a real crisis. actually, i have a bigger question is where's congress? the speaker sets the schedule and after the last vote yesterday, everybody ran for the planes and ran for the airport. all i can do as a military man is lead by example, not taking my pay. i'm still here, standing in a relatively empty building, ready to -- stuart: but look, surely the pressure is really racheting up now. 14,000 irs workers didn't show up this week. tsa sick-outs have affected the airports. >> air traffic controllers. stuart: air traffic controllers today. delays at some big northeastern airports. that puts enormous pressure. get something done. you're telling me congress isn't even there. >> they're not even there. they all left yesterday. a number of my colleagues have stayed, i've stayed, and again, i'm not taking pay but i just want to echo my democratic colleague from michigan who said

earlier, get in the damn room. i think that says it. the president offered something very reasonable. he backed off his rhetoric on the wall, said they're steel slats, barriers, whatever you want to call them, strategically placed, not from sea to shining sea, where the border patrol wants them, end daca, end temporary protective status. what have we heard from the other side? radio silence. if you don't like the deal, make a counteroffer. we have all been in business. but you cannot compromise if you don't speak and are not talking. let's go. let's get this done. stuart: yes, sir. let's get on with it. quickly, if you will, what do you make of senator elizabeth warren's suggestion of a wealth tax? real fast. your response? >> well, we all know the top 20% of the wealthiest americans are paying almost 90% of our taxes. you cannot divide the pie. you have to grow the pie. one thing my colleagues just do not or do not want to understand is in order for government to give, to anyone, it has to take from somewhere else.

that is not -- that is the fastest way to chase corporations and chase people who are creating jobs out of the united states is to keep levying and to then create more government programs that are going to spend inefficiently. for anyone who wants government-run health care, look at the v.a. and all the problems there. stuart: congressman, you may be speaking in a virtually empty building but you got a lot of fire. we like it. michael waltz, thank you. now this. i have more breaking news. here it comes. according to reuters, private military contractors with ties to russia have flown to venezuela to provide security for president maduro. ashley: that's exactly the headline. you just read it. listen, this is raising the stakes a little bit. we know that russia, china, turkey, cuba, have all backed maduro as the current, you know, dictator. they say he's legitimate. united states and many others, many european countries say no, he's not, that the opposition

leader, juan guaido, is the actual leader that they recognize. so we have a little bit of a battleground here, the news that these private contractors with ties tells me that they're putting down a marker saying you will not get the boy out, we'll -- guy out. we'll go in and protect him. stuart: i see a potential clash point right there. >> i believe some diplomats already left. they're not all out. stuart: principals will stay. if any threat comes at them that, is where the clash, physical clash -- >> this is ratcheted up little bit more. we have outside influences moving in to have an impact. stuart: we have ratcheted up a whole bunch of things here. >> we have. we have. stuart: ratcheting up the pressure to get congress to get something done about the

government shutdown. that airline, shutdown, could certainly spread. >> manifestation of what is going on with the partial government shut down and how it impacts everyday lives. looking at laguardia on flight program here, hour 1/2, hour 45 minutes. they're starting to increase. that is only natural when you start backing up planes. stuart: how about the market? the market is not showing any distress about venezuela and government shutdown. it may be responding. >> or global growth. nip other big concerns. or the government shut down. what the market is focusing on, we talk about this, earnings are strong. not only earning but what the ceos are saying. their actual outlook is bullish and upbeat and optimistic t adds more fuel. stuart: it has been terrific year. >> it has. stuart: we're at 24,800 on the dow. i don't know how many points we've gone up. >> all the doom and gloom predicted for 2019 but ceos

are more optimistic. >> i have a sneaking suspicion this is light at the enof the government shutdown tunnel. i think that is one of the reasons the dow is up. only time will tell. you never sigh that. our time is up, neil, it is yours. neil: thank you very much, we're looking at delays at some of the nation's premier airports, laguardia and some planes were grounded and. you're still looking at delays of hour 1/2 to two hours plus. delta is seeing 200 of its flights delayed as a result of this. this addressed staffing issue at the tsa, we're told depending on the airport, one out of 10 tsa workers have called a sickout or not shown up for work period. all major airlines are reporting this has affected them, even going into this year, southwest, for example, was