in washington right now which is why we're so dysfunctional. >> great to see you governor come back soon. >> of course. check out the book, let me finish like you would say it in real life. let me finish. [laughter] >> tell your parent -- give them my phone number i'll call them. "varney & company" begins right now. stuart take it away. governor, elmore books if you have a british accent and that's a fact. >> hold a book up i gave you come on you can sell it. you can sell it it shall come on. >> yesterday he's done selling the book. >> use that accent to sell the book. >> are we done. we're done -- thank you maria good morning everyone. yes, with good morning. wow big day for your money and coverage beginses with apple sales of iphones not god but revenue coming in from serviceses up sharply the message apple can grow without the iphone leading the way. the stock is up premarket.

4.7% big win. this afternoon we'll hear from pouk an microsoft here's the premarket quotes for them they may be getting boost from apple performance both up better than 1% now look at boeing what a car. we just received their numbers and they are stellar. so is the stock boeing expected to deliver about 900 plane this is year they delivered 806 last year. big win, the stock is up 23 bucks. mcdonald's profits up, sales up, 4.4% globally, i thought we were supposed to be slowing down stock, though, unchanged at 182. invests to or love all of this. market will open sharp isly higher today the dow up what 240 points. the nasdaq's big gain up about 65. that reflects strength in big tech. there are other factors here, the arrival of u.s. and trade negotiators high level talkses getting underway right now, a statement from the fed this afternoon, all eyes on how much

money they'll be taking out of the economy. but the big deal is profits. run aring now, 17% ahead of last year. that is strong. at the polar vortex supercold, some parts of the midwest virtually shut down canceled flights, malls closed schools chosed. businesses telling people stay home don't even go outdoors. so you stay there please. the windchill report is on its way. "varney & company" is about to begin. >> i promise you that windchill report and there it is wouldn't you look at that had we're minus 51 in chicago. minus 33 in detroit and all of that is coming this way with as in towards new york we'll be about what 11 degrees, a little bit later on. pitts bring minus 19. it will get to us after that, serious cold all across a big

swatch of america all right suzanne tell me impact of this on businesses, economy and jobs. >> of course flights are impacted because parts of the country is colder right now than antarctica mount everest even siberia so 5000 flightings canceled more than dowivet thousand flights over disrupted on monday they weren't necessarily canceled that as that winter weather comes from the arctic into chicagos boston, atlanta also a seeing some flights being delayed or canceled as well. atlanta is doing that because when flightses are canceled there's a delay the impact -- the rip the effect that takes place and they have to host the super bowl this weekend as well. and flights so check your scheduling you know they have change fees waived at a major airlines as well. >> but all airline stocks are up not really a connection on stock prices.

cold enough for you lis pique? worse than government shutdown i mean, we're going to find out it is probably going to impact the economy it shall day like this and you have everything to a halt and get some impact. also note that you know, saying that mailman always a delivers not in this case. some parts of the country, because the postal service is suspended so in states like illinois, with iowa, minnesota, minnesota -- and it needs to be safe too. >> it is indeed let's get back to graphic again show me apple stock up nearly 5% now. the iphone sales down got it. sharp growth, though, in the services sector. tim cook says trade tensions between america and china are easing. that's good news and stock is up 5%. market watcher keith fitzgerald with us now. you told us yesterday to buy apple l even before you seen the

numbers so take a victory lap what are they doing so great? >> they're shifting to services you know, this stuart is as close to a grave invitation as most see in their life tim a corpse that has been a trend set or making a major pivot to carry potentially 40, 60% margins apple can live without the iphone. >> now show me please harley-davidson. i think you've got this one right as well -- you told us yesterday don't touch harley-davidson, and i forget the reason why. but it did sell off now it is back up a little bit this morning. did you go wrong on harley, keith? not at all situation reminding me of sears i hate to be harsh one out of touch with market and producing heavy machinery in markets don't want it at 30,000 dollars a unit if they want to compete they've got to cater to the plane yams which are slowly

killing the business. hold on for a second because i want to talk about facebook for a moment they are pain to install soft square that tracks everything they do. everything revealed they pay for information but that's getting out of that -- >> basically a vpn research app they're advertising hoping teens will download that takes all a of the users phone and web activity and they say this is for rrnlg purposes to improve their services. but -- when you are targeting 13 to 35-year-old paying them up to 20 dollars month asking for your amazon order history page, snapshot that has people concerned about teenage use whether or not they know what they're doing in materials of releasing all of this data. >> you're smiling. you find that creepy or no? >> i think it is creepy teens are signing on to this so nothing illegal about it but what too large should have data

stored which it will be forever 20 years from now kids look back and say oh, my lord did i really say that and do that it is a terrible idea. j but not necessarily illegal to point that out bay beta testing but a black mark for them. >> also teens could not care less about their privacy we yap about about privacy they don't care. pfnlgt no yapping on this program. >> no,s that's true. quickly -- keith, that would be you say buy facebook yesterday before the numbers come out you're saying that again today? >> well i tell you i'm going to pause on this one because you know, this situation makes me aening angry because they're preying on people to least likely to understand actions. you can make the argument to pay off clearly what it is designed or for prnlly i'm angry as you know what. >> thank you very much pete you have a couple of them right anyway. politics -- [laughter] i guess --

[laughter] reasonable. billionaires -- howard shuttle and mike bloomberg are considering presidential runs next year but a third party , a third candidate could throw a big wrench into the democrats plans. joinings now charles hurt they have a billionaire problem haven't they? >> they sure do and interesting that something that is not -- turning out on the republican side. we've had republicans sort of people who have talked about maybe running, that could siphon votes away from -- from donald trump. who have declined or said they're not interested in getting into 2020. but on the democratic side, either michael bloomberg or howard schultz of starbucks do nothing to hurt donald trump and might even help donald trump. but would only siphon votes away with from any democratic nominee. and of course that could be absolutely devastating for

democrats but i think, the real important thing here is, that democrats are so terrified they are so hell bent on taking out this president that they -- that the reason that for this widespread, huge freakout over howard is they don't want anything to get in way of their taking this guy out that's how much they hate him. >> let's suppose you're a moderate democrat a centrist the way you are coming from. what's your choice as of now in the 2020 election? you've got howard well he's an independent billionaire. you've got mike bloomberg who may run as a centrist democrat and you have maybe joe biden. that's all you've got. the rest way with out there on the left. what's the moderate to do? >> well i think that's exactly the problem because i think a lot of those moderate democrats and we've talked about this a lot stuart. you know a lot of these moderate democrats who, you know, outside of washington who are not

affected by this trump derangement syndrome with far left and democrats here in washington, who are not representing their voters back home very well. that has all of the people freaking out a lot of those moderate democrats listen to things like well, let's build a wall in southern border. let's do a lot of the policies that president trump is talking about. whether it is prison reform or whatever. and they think well this guy you know, i get it he's not a washington guy. but i like his ideas and that's how we won election in first place and these people here in washington, democratic leader here in washington i don't think they're listening to these people i don't think they realize those people still exist and that it shall that when donald trump get into a fight when it shall those democrats shut down the government in order to keep from doing something about border security, on the southern border, that hurts them with those moderate democrat voters those moderate democrat voters look at that situation they say, my goodness,

of course, we should do something to secure the border. >> i love to have a couple of moderate democrats on the show if i can find them. charles thank you very much indeed. appreciate it. do you have a quk word last word? >> look, i think that moderate democrats aren't going to win the primaries that's the problem are. and that is -- it you know, schultz also to his credit came out talked about fiscal deficit and democrats can't talk about that because they want to spend more money so i think this guy is really pushed their buttons and frankly i think it is really fun to see. >> really enjoying. you'll get my take on the democrats billionaire problem and a reaction from a guy who described himself as patriotic millionaire nick -- he's a tax the rich guy very rich himself we want to pile on taxes on the rich. how does he feel about schultz and bloomberg upsetting democrats apple cart we'll ask is him on the screen right now 1e7bg eastern this morning. how about futures -- worth checking why not in we're going to be up what 260 points for opening bell and nasdaq is

going to be up better than 1% big day. interesting story out of venezuela. fox news reports 20 ton of gold from venezuela central bank loaded on to plane out of the country that's 20% of venezuela gold full details, coming up. more bad news for sears, they lost more than 300 million dollars this holiday season. who knew they have 300 million to lose. and tax season is underway. you might not be getting the kind of refund you're used to. you might even end up owing government more money. that could turn people off from president trump tax reform good story we're on it. so we built capital one cafes, with savings and checking accounts you can open from here in 5 minutes. this is banking reimagined. what's in your wallet?

check this you'll love it we're up 250 point for the dow industrials and we open the market in 14 and a half minutes time. look at boeing wow, high per profit rosy forecast, delivering a lot more plane this is year stock is up.5%. general dynamics higher profit,

strong demanding for it mighty services that provides to the dpght of defense the stock is up nearly 2%. yes, it is tax season. in full swing sw there's talk of lower refunds for some taxpayers what does he think about all of that with american tax reform great guest on the show. all right grover a lot people getting small tax refund because lower tax rates were already written into their paycheck. and a lot of 1%ers who live in high tax states get no refund at all and owing government money. trump's tax cut is not going to be that a popular is it? >> well i'm going to argue that they are actually -- 90% of americans will see a significant tax reduction. 46 million down and 0% can use standard deduction because it has been increased to dramatically now when they changed how much they withhold,

over the year, if they over withheld then you would see some changes if say underwithheld but what matters is is -- how much money you ask the guy to keep how much money do you keep? >> no they don't look at technical detail how much they've kept over the year. but refunds -- but if they're smart muff to watch your show they would know look, married couple neigh 80,000 a year two kids. 46,000 -- 4,600 is what they paid before, 2300 now. that's cut in half for -- married couple making 80,000 two kids. single parent two children, making 60,000 goes from 3,000 dollars to pay to 800. two-thirds cut. this is a significant reduction for middle income lower income people. some making 35,000 as an individual, sees it drop from about -- also by about 800 so this is a dramatic reduction in people's

tax burdens. >> you're right. but look how about this salt thing. this state and local taxes. you've lost that deduction. now -- for a minute. limited 10,000. now there is some -- talk of restoring the deduction but i just don't see that whatting. why would the democrats why would they support lower taxes for the 1 percenters they're not going to do that. >> okay. they will talk about about it in certain districts but it will never happen as long as democrats have the house but remember reason why people are unhappy about about their high property taxes and high state income taxes are not just that they're not deductible they're too high anyway. people of california pane new jersey and new york have a personal responsibility to deal with their lunatic legislators and governors that have put up these very high property taxes. and income taxes you can always move to texas zero and move to

florida zero income accident tays some states have reasonable property taxes. talk to your governor, talk to your state legislature. they're responsible for the size of your property taxes, and size of your income taxes. >> groarch i'm with you all of the way with you all of the way. it won't help thanks very much fella. you were having to live with salt that's the way it is. grover you're all right we'll see you. >> thank you. >> from president trump maduro willing to negotiate with opposition in venezuela following cutting off of oil revenues. targeted by venezuelan supreme court mass aive protest today and americans should not travel to venezuela until further notice you'll hear what a possession leader or juan told our own trish regan hear all about it, after this.

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we're working to make things simple, easy and awesome. >> i want to bring you this because trade talks high level trade talks are just beginning as you can see in the video there. we have a wilbur ross larry kudlow steven mnuchin they're all there along with china's vice premier start the talk and lighthizer right there it is all now beginning. let's get to venezuela country opposition lead for juan spoke

with our own trish regan on fox business last night. roll tape. >> well we hope there will be -- the pressure -- and the support of the united states is important and all of the other countries in the world that support us we're sure that we're starting to change this is the last chapter -- of change last chapter of a nightmare for many citizens that we're forced to migrate that we're forced to leave their country. but that would lose their life because, for example, there were no power in a hospital. and the power plant didn't know so several passed away because there was no power in the hospital so we're waking up from the nightmare and we're waking up to dream, dream in a prosperous of a prosperous -- >> interesting word nightmare. liz peek what do you make of this report on fox news? that the russian it is flew 20 tons of gold out of caracas? >> this story is russian airliner came in that never does

visit venezuela clear by a special flight picked up 50% of the country gold reserves and left which could be beginning of a payment from the officials in like maduro and generals in venezuela and safe harbor maybe they're being financed in this way who knows but a pretty shocking thing to think they make off with 20% of the gold reserve at a time when the country is collapsing financially and you heard the comments it is not just the financial. it is in every way this country is destitute no medicine, no food, they really need help. >> ideally when the generals get out, leave the country to gado that would be ideal. >> a peace powerful settlement is what everyone should be hoping for. >> so the market opening up in four and a half minutes time and looking good up 260 thrct for dow industrials up 1%. up 74 for nasdaq better than 1%. it is a rally weal take you

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>> 30 secs to go this market opens and up well over 200 point for the dow industrials and there's one big reason why we're doing so well today and that is profits.

earnings this season, this earning season are now up 17% over yearing. and that is very strong. some individual companies reported today very strong profits and earnings. all right it is 9:30 eastern. the bell stock is ringing they start tradings off we go we are up right from the get-go one, 260, 250 point. a 1% gain. just like that. 24,800 on the dow industrials, exactly one percent higher. show me the s&p 500 is that also up 1% no no it is not it is up half percentage point so better gain for the dow, then the s&p. show me the nasdaq this is up nearly 1% solid. how about apple? they reported late yesterday. good business in their service sector. look at that. 5% high for apple at 162. look at facebook, now they report after a the belled today. in advance of that facebook is up negative, negative pr on

facebook this morning. we'll get to that in a moment but stock not holding back up two bucks now show me boeing and mcdonald's. both reported earlier, boeing was absolutely stellarrer, mcdonald's solid. both of them on upside. iphone sales down, but sharp growth in its services business. that's the headline from apple, discuss. fitzgerald is here shah gilani is there. suzanne lee is with us liz peek the gang is all here. the entire conspiracy is in place. [laughter] what do you think first of all of apple's numbers? >> i love the numbers i wasn't, it wasn't unexpected we brought apple in expectation to be better than expect they talked them down typical of what apple does so it wasn't unexpected that's why we got into the stock i like it at the trade. i do like services component it was not as robust as people think it was. they were up 19%. the previous six quarters it was up services growth was up more than 20%. so this is slow of growth.

>> it wasn't a great report card so that's why you're looking at the stock it seem like people want to buy this stock doesn't it? a demand and as long as it is not bachelor's degree as people feared, it is okay we'll buy into the stock. >> but what is it 12 or 13 times profit? >> it is cheap. right it is cheap. exactly. so you don't get unit sales numb but important part this have report card is on services so first tile in history, and that's above analyst consensus over 60%. 60% on your itunes that's how much they make. >> i will take it. a margin to die or for. facebook may come out this afternoon after the bell. there's a report today that they paid teens to install software that revealing everything they did on their phones. i'm going to go back to you again shah gilani. you like facebook, bearing in mind all of this bad pr? >> i'm waiting for an opportunity to buy facebook i don't think worst is out and they've had issues before this is not an issue for me because they're paying people not like folks are paying didn't

understand what was happening they knew what they were giving. so yopght have an issue with that, obviously, stock doesn't today either. >> the star performer thus far today is boeing they came out with earnings rosy forecast for the future. higher profit keith fitzgerald they're west coast operation you live out there on west coast. are you -- that's a tenious connection. chghts a long-term contract a huge back log the world needs a lot more airplanes in their logical players given the defense need they have, and they're going to deliver 900 plane this is year versus 806 i think it was last year. and that stock is up 22 bucks right there. 387 check the big board high of the day, with three and -- three and a half minutes into session and we're up 273 point. 23 ks 8 he recollects closing in on 25 grand. high per profit at alibaba, sale

of revenue fell short they don't care about that. alibaba is up nearly 4% a rosy forecast from chip make hadder advance microdevices that usually works wongders it did there. up 13% for amd. a their revenue fell short on slower wireless customer growth a problem with directv as well at&t dropping below 30 bucks share down 4% that's at&t. general dynamics high per profit because they're strong demand for i.t. services that they provided to defense department. that stock, though, is down, down now, 3.7%. tesla and microsoft what do they look like right now? they report after the bell -- tesla is back to 300 dollars a share. microsoft is up a buck 75. we've got a new report and it says that the number of people using streaming services rose what it shall 89% last year. that confirms the what streaming is king, liz? >> it is really, yeah there's

been huge investment in in area and the efficiency the productivity of it has gotten better and better customers are happier with it fewer glitch and fewer interruptionings so look this is what's amazing to me is it was mostly mobile. you know actually lap tom streaming not all tvs are up. but i mean it is interesting that mobile is such a big player. >> if there was a time when i was on this program saying i'll never watch a movie own a screen -- change your mind now. but it is not just netflix play because roku has biggest market share around and amazon fired tv growth over 200 people year over year are. >> i'll take that too. now let's talk about game stock, the stock game stop i should say stock was at a 14-year low yesterday. the border of director says company is not any longer can't find a permanent ceo but frankly look problem shaw with this company is that you don't buy a tangible game you download the thing. >> that's one of the problems. the problem is certainly there's

a lot of competition in the space and increasingly so. this stock has been in a free fall for last three years five ways but last 52 week abouts pretty much now hit a new low so it has been a terrible stock to own. the problem i see with it is they talked about lack of available financing anybody was interested in buying it. that tells me that if they went out to bankers and said do you think we can raise money, can someone raise money to buy it the answer no probably balance sheet and doesn't bode well for the company. >> what does keith fitzgerald say about game stop? >> ditto to shah all of the points are valid and i think company has far more serious problems but highlights underpinning of the stock people are buying based on hope of acquisition and this stock is great example what have you do not want to concentrate on. j now show me ebay please announced their first ever dividend i don't know how much it is but it is dividend one beef. >> 14 cents per share. what do you think of that?

>> don't care. hasn't had much growth lately and numbers are pretty decent in terms of what it is doing but pretty stat egg not doing much and elliot these two activist pungdz are taking a piece in ebay pushing for greater buybacks pushing for dividend pushing for other stuff to invest assets but i think probably what makes a lot of sense if they go through those i'm or more interested in stock. but right now it is boring. >> numbers 7 billion back to dividend over next five years 5 and a half billion done this year. but i mean, about it's a business that is pretty much stalled right? >> that's the problem. these buys are very aggressive they haven't made any money in stock pushing them to do financial engineers may or may not turn out well. >> we're going to bring you story because it has no impact on literally anybody but it is interesting. [laughter] sears lost nearly 320 million dollars over the holiday season. keith -- i didn't know that sears had had 320 million dollars to lose. [laughter]

>> well, you know that's what financial engineers is all about. you can create money out of thin air. nobody has ever gone broke on that but is anybody really surprised this company shouldn't exist in the first place and that's sad testimony to the way eddy ran it into the ground. >> we used to play organ music sure -- yeah. better than concern thank you. in a statement and a half, it is arctic frigidity slamming midwest and northeast, look at that. i promise you that windchill report you have it your screen right now see chicago minus 51 degrees. well minnesota could see minus 70-degree windchill. minus 70 degree colder than antarctica. can we do any damage and have that big of an impact on overall economy or on airline as or something like that? >> hear better to earnings season right they're going to be companies to say it was that cold snap that you know, with

revenue. absolutely. but i mean in fair pns people don't go to stores they don't do as much not as much afnght they'll certainly be shopping online. but yeah there could be a hiccup. >> delivery issue that could be a lot of issues i think it will affect gdp maybe a quarter of a percent extending how long it last so if question get another blast. had an impact in the past. pmpleg airline stocks are all up. universally up case closed. >> running on good earnings so they're up for now but see what happens in terms of gdp. keith fitzgerald why with are you laughing? >> a i'm not riding my motorcycle as we talked about in the cold weather but b, i think airlines are all properly hedged you know markets factored this in so yes it is cold but economically speaking, i think it is a minor hit to shah's point of point want to thank everybody for a fine performance today because we've covered a lot of ground in last couple of minutes i thank shah gilani keith fitzgerald all good stuff. check the high of the day up 271

point, 1.1% love it. super bowl sunday, this weekend -- the price for 30 second ad during the game -- going up. it is almost double over the fast decade. we'll tell you how much tv spot cost this year. theresa may prime minister, britain, can't get parliament onboard with a brexit plan i want to know is there any way for her to survive steve hilton coming up on that. i switched to liberty mutual because they let me customize my insurance, and as a fitness junkie, i customize everything. like my bike and my calves. liberty mutual customizes your car insurance so you only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪

a very strong earnings report this morning and helping your market we're up 257 points about one percent up for the dow jones afnlg look at tyson foods, a chicken nugget recall there. the stock is just down 20 cents what was the story?

>> why do we do these stories for breakfast but okay so tyson foods recalling 36,000 pounds plus of chicken nuggets, not because of chicken is rubbery but because rubber might actually be in them. yeah if believe it or not, so federal officials are urging consumers to check the back of the freezer dump any of the tyson white meat chicken nuggets produced november 26th, 2018. because it could be dangerous to you. and to, of course, you don't want to eat any rug rubbery chicken nuggets. i'll have to check mine. how did rubber -- [laughter] okay. facebook, new report says that it is paying teens to reveal all about themselves to facebook. 20 bucks a month tell everything to facebook. steve hilton is with us host of the revolution on fox news channel steve is there another

episode of big brother? attached to facebook -- >> i would say stuart it is even worse than that because there's something about this story that is so sickening because this is something that facebook was caught doing before and they said we're not to do that again and they do it again and in secret they rebrand the evil snooping. and pretend it is happening and now they've been caught they've again said we're sorry we're not going to do and a patent from this company time after time after time caught doing things that completely contradict what they say publicly about privacy. then they say there's hugely sorry and they're reveal to do another one i think it is time for serious action it seems you can never trust a word a company says or how it behaves unless you have the current management in place and ting that is the focus now it needs to be the target of people anger. get rid of the management of

that company otherwise nothing is going to change. >> you strong stuff stew can i make a general big picture comment or for a moment who among pus would really like to go become and see what the devil we were up to when we were teenagers? you and i we can't do that. because we're -- in wrong generation. revealing all to facebook you can't escape the past these days. >> this is going to get worse just announced that they're integrating the structure behind pouk but also a instagram and the snooping, and invasion of privacy all of this stuff will get easier for them to do across the world once hay do that. companies are real threat to society and needs to be stopped. >> i want to talk to you about brexit if i may, kind of unclear situation there the backwards and forwards there mind boggling i don't see how theresa may can survive much longer what do you

say? >> well following up since i spoke up yesterday for first time we've had good news on brexit thing we were looking out for yesterday was votes in parliament and whether members majority of whom against brexit would take back control from theresa may so that they could block and delay and basically overturn brexit that didn't happen. they didn't have the votes. she remains in control of the process. so actually, it was a minor victory for her. she now say she's going to go back to e.u. to phoned an answer to thing that's been at the heart of the problem this situation with northern ireland the e.u. is say thairg not going to play ball but as clock ticks closer to that departure date march the 29th it actually look like she's got some strong cards it play thousand. i don't know i qot count her out yet or brexit. that's interesting sounds like tide has just gradually begun to turn. maybe now they're on the

defensive could you characterize it like that? >> exactly right it was an important day yesterday and good news for brexit supporters. and i think that -- it is a analogy what's going on here with president trump and pelosi in wall actually finally enough, minor defeat along the way but now it looks like pelosi is looking at the one who won't make a deal or compromise, same with the e.u. and i think that actually -- if they keep saying no, we can't negotiate anymore you can't get anything. i think they're going look like ones who have caused the problem so i think that she's got a good chance of not only surviving but doing what she wanted to do which is to be the person who leads britain out of the e.u.. >> look, steve before we move on. the title of your show on news channel is steve hilton the next revolution. is that correct, right? all right so what is -- what's the next revolution what is it? >> i think it is more of the

people power that i think that you've seen, i think what you saw with those votes for donald trump and brexit in 2016 was an expresentation of a desire to take that control and power from the elite. and for working people, but that hasn't been followed through enough in terms of actual policies so the next revolution is the policies that really will give power become to people to control their own lives, and to give them the economic security and opportunity that has been lost, and a basically been in hands of the elite for too long that's the next revolution. >> that's why we like you and that's why you're popular not just the british content but all good stuff. mr. hilton we'll see you again soon and we'll definitely see you on sunday night yes, sir. all right, time now to look at the dow, the dow industrial average, still up well above 200 points 237 to be precise almost 1%. now it's the story that really everyone is talking about today, and that is record-breaking cold in the midwest. and it is heading to the northeast. we have your fridge are i had

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high of the day was up 270 we'll take what we've got now up 225 yes it is a rally on screen biggest winners look at boeing

up 4.5% caterpillar united health big name companies, all onup side. now this, arctic blast yeah hitting midwest heading to the northeast. look who is here ho janice dean in the weather center. okay you've got a map with with the temperatures. looks dangerous to me janice. j absolutely. these temperatures we haven't felt these types of ts since -- well 1986 for chicago. minus 27 and minus 25 for flirting with all time record lows and these are actual air temperature opposed to windchills making headlines from minus 30 to minus 70 that's the real feel temperature when you head outside and you're not protected although i'm going to tell you you cannot be outside for longer than five minutes with some of these windchills your skin will freeze. you will have frost boy, the and you could die and that's why people are urged to stay indoors check on your kids check on

elderly bring pet inside as well so here are your morning lows as i mention minus 25 for thursday. the worst of the cold air is going to arrive overnight tonight into thursday. and then it is beginning to move in towards the northeast although i will tell you it won't be as dier as it is across the northern plains upper midwest and great lakes worst of the cold air is centered across these areas. here is forecast windchills again, stuart we can be dealing with you know minus 50 minus 60 real feel temperature when is you head outside it is going to be with us -- for overnight tonight into tomorrow and then friday things look better. the cold air will start to retreat northward into canada but again dangerous part of this, obviously, is the windchill, the extreme cold, and you know temperatures that we haven't felt in decades and perhaps even historic temperatures. there's chicago minus 25 flirting with all too many record and things rebound considerably by sunday so we really have to got through next couple of days and then we're better.

>> yeah. 21 degrees on thursday and friday. it seem like a heat wave wouldn't it? >> wonderful. [laughter] janice thank you very much indeed appreciate it. now then, high level china trade talks they're begun from today in washington, that's vice premier of china and we're on other side of the table. you'll see america's top trade people including mr. lighthizer there in center there. now there's a report in "the wall street journal" that chinese investors sold more commercial real estate in america than they bought. now in other words they're getting out. liz, is that a signal that there's a problem with china's economy? and they've got to get money back there? >> it is a symptom of problems in china to be sure. that government is trying to check out flows of money, interestingly this is just one symptom actually foreign direct investment into europe and north america last year from china wept from wul over 100 billion dollars to about 30 so, i mean, major collapse in money leaving china.

interestingly money going into china has also declined drastically that i would say is symptom of current business conditions in china lack of consumer confidence, et cetera. but look, this is not all about trade tacks that it is all a about fund mental problems in chinese economy credit issues, some of these companies that are selling real estate is because they can't meet their obligations in china. they're trying to bolster their balance sheets we've seen a lot of reports of this and it is real. >> occurs to play and weakening last two years so more expensive to buy real estate elsewhere to pay bills back in china. >> state of china's economy gives america lerchl in the -- >> without a doubt. that's where we are. check the big board holding on to a nice solid gain of 2%. 230 points up. how about this for a headline -- big brother has arrived. and big tech is the source. i'll editorialize on that, after this. ♪

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stuart: you heard the expression big brother? it is taken from george orwell's book, 1984. it describe as totalitarian society where every citizen is under constant surveillance. orwell wrote that book 70 years ago. big brother has arrived. big brother is watching you right now. michael pillsbury describe ad surveillance system using facial recognition allows the chinese government to watch anyone, anywhere, real time. if that is not big brother, i don't know when that is. alexa can listen in to what you're saying even when alexa is not asked a question. she is always listening. google operates gmail. google reads those emails.

i recently received a call from india offering treatment for back pain. how did the caller no that? i mentioned the campus in an email. google read it and passed along a tip to india. hey, this guy might pay for treatment. apple's facetime has a bug that allows people to eavesdrop. facebook knows everything about everyone. they're following you. i wish i could say there is a way out of all of this but i don't think there is. we opened the surveillance box. we cannot close it up. much of our life is online. you can't realistically go off-line. this is the face i've got and facial recognition will pick me out anywhere. in the book, the main character, winston smith, is caught having independent thought. he is eventually normalized and ends up loving big brother. the second hour of "varney & company" is about to begin. ♪

stuart: you heard my big brother editorial. let's bring in jack hough, "barron's" senior editor. jack, do privacy concerns have any impact on stock prices like google and facebook who i am accusing of being big brother? >> these stocks have come down and the financials are still pretty strong. it tells you investors are worried about some kind of backlash down the road, regulatory backlash. i'm really interested in your editorial. i think you're the right level of concerned or paranoid or whatever you want to call it but many so of the reasons is a little bit different. these services like gmail, for example, we get free email. we know what the deal is. we know there will be targeted advertising. what i'm concerned about the level which these top tech companies are cooperating with their governments in other countries, in china, in russia, for example. in china, they don't do this soul searching in china. is this a concern for privacy.

their tech companies are hand in hand with their government creating new military applications. we don't have that in the u.s., so as we're rightly concerned on the consumer side, but i would like to see more cooperation between these companies and the department of defense. stuart: interesting. thank you, jack. stay there, please. come on in tom rogen, "washington examiner," commentary writer. tom, this obviously affects the image of these companies. does it mean, does it point the way towards regulation coming down the pike soon? >> well, we already see regulation in europe but i actually think the better approach here, because of the economic productivity that these companies effectively generate, some of that, we have to say is consumer driven in terms of data sharing, better approach culpability on terms of media, make people more aware. innovators that create products that deliver less service in

some ways and more privacy in other ways. to jack's point, we need more people like jeff bezos, whatever you think of the politics, "washington post," bezos cooperates with the dod. google is reluctant to. google doesn't have equal manies to combine with the chinese communist party to spy on americans and undercut americans that sense of patriotism is a good first step. media, we're talking about this, be aware what you're signing up for, consider other options. stuart: sunlight is the best disinfectant. tom i will get back to you in a moment. i want to talk about great earnings reports we've been seeing so far today. jack hough is still with me. "after the bell" at the end of the day's trading, tesla and facebook they report their financial numbers. start with facebook.

what do you expect? >> this is highly relevant what you were talking about. we think the revenue growth is going to be wonderful. we think the profit growth is going to be wonderful. what the investors will look at what happens to user base in mature markets, north america, the u.s. are there people who are leaving the service because they're worried about things like use of data and privacy concerns? i say no. i say people like free stuff. i say they have known the deal all along. they will stay with it or facebook, stay with instagram. but that is what investors will be watching carefully. stuart: we will find out from today's report whether or not people in mature markets like america are leaving the service? >> we'll find that is very important. susan: costs is important. they have been paying out to police their websites and the platforms. that is really what is biting into revenue. stuart: show me tesla. i believe the stock is pretty flat in advance of their earnings report this afternoon. it just hit $300 a share. what are you expecting, jack? >> it is strange because they talk about some layoffs at

tesla. they're supposed to be in the go-go growth stage. getting everybody they can to work on cars. they're talking about layoffs and concerned about costs. i expect they will have profit. they're talking want to be free cash flow positive. talking to investors they need some key product announcements that will really -- it is very much a story stock rather than an earnings stock. they need product news. susan: model 3 ramp up and production march begins. expenditure, they're building a 5 billion-dollar plant gigafactory in china. do they have the cash to do that when you have a convertible to pay in march of a billion dollars? that is something to watch. stuart: we'll find out this afternoon. jack hough, appreciate it. >> thank you. stuart: let's get back to tom rogan. your latest piece says, democrat 2020 hopefuls are moving too far left to beat trump. make your case, tom. >> just quickly on tesla thing, my concern there is without government subsidies that is a

joke of a company. stuart: good one. >> in terms of democrats specific, if you look at what the democrats are now proposing it's a race to the left. it is escalation, a struggle in the military strategic terms between all of these democrats to show to the liberal base, look i'm more liberal than the next gal or guy. we see kamala hairs. if you like your health insurance? too bad, you can't keep it. if you see for example, julian castro talking about amenability of 75% punitive tax rate. it works under eisenhower. no one mentions that the u.s. economy was only one that survived second world war and we didn't have worldwide globalization. i reference in the piece that the gallup polls, more americans are conservative or moderate the economic model, makes it easy for president trump to speaks in

plain, aggressive, clear tones you may not like me, but look at the economy and look at what they're offering and look at where it has been introduced, in france, for example? where president macron essentially had to back away from his own wealth tax that ocasio-cortez introduced. because it was destroying the economy. the statistics in social democratic sense, including in scandinavia speak to the failure of far-left governance model in quite tangible way. the policies of this administration, in terms of economic growth, rising up of social mobility of lower income workers particularly speaks of better morality of the capitalist system. it's a great debate to that. i think president trump is in a good position to make it. stuart: we hope we can come back to contribute to the debate, i agree entirely. it is a debate we should be having. we will have it. tom rogan, you're all right. i don't care what they say, you're all right.

>> thank you, stuart. stuart: we'll get back to your money, straight at it. 240 points up for the dow industrials, best part of 1% rally this wednesday, all day, right? wednesday, today is wednesday. boeing, apple, mcdonald's, they're driving the dow up. boeing is up 22 bucks. that is 6.25%. higher profit there, a great outlook. apple growth in its services business. mcdonald's global sales up 4%. all the stocks in the dow, all of them up. higher profit in alibaba. i call that china's amazon. full disclosure here, i do own a very thin sliver of alibaba. it is up five bucks. that is 3 1/2%. yeah, we got a big hour for this wednesday. venezuela's disputed president nicholas maduro, says he is willing to negotiate. my question, have democratic socialists here learned the lessons of socialism in

venezuela? good question. we'll talk to the man who wrote book on china that nation makes everything worse, whether trade or north korea. he will make his case. we're all over the gaming revolution on this show. a new report says videogame revenue will drop this year for the first time since the 1990s. you are watching the second hour of "varney & company." ♪

stuart: this is happening now, breaking news, president trump just spoke to venezuela's opposition leader juan guaido. susan? susan: readout from the white house. president trump speaking to interim president, but we'll call him the opposition leader in venezuela, juan guaido to congratulate him on historic assumption of presidency, reinforce president trump's strong support of venezuela's fight to regain its democracy.

guaido thanking president trump for the call and for the freedom and prosperity in venezuela. large protest across venezuela against the former dictator maduro today and saturday. they agree to maintain regular communication to support venezuela's path back to stability and rebuild a bilateral relationship between the president and venezuela. stuart: president came out with it. he is our guy. that is what it is all about, i think. we cover a lot of the video payment industry a whole lot on this program. it's a huge business. pellam smithers, owner of a london-based research firm, he predicts videogame revenue will see the first decline since 19995. how about that? we have the "gamer world news" entertainment host this is projection for this year. it's a forecast. it is not reality yet.

>> right. stuart: what do you make of it, lower revenues for the first time since '95? >> i think is actually a bit of a sensational piece. i think i know how they came up to this conclusion as well, what happened they were using outdated revenue estimate for 2018 for the global gaming revenue. so the number i saw tossed around was 13$.9 billion. if you compare that with the smithers estimate of this year, looks like the industry is set to contract. however there was a fourth quarter estimate issued in october which suggested revenue for last year was $134.9 billion f you compare i had to the smithers estimate of 136.5 billion. it looks like the industry is still set to grow by 1%. granted this is not as impressive from the growth of the previous year but i don't think this is some ominous portent for the gaming industry. it is more that the game industry is -- stuart: ohio state university

will offer an e-sports program that will include courses on coaching e-sports, marketing video games, managing the business aspects of gaming. looks like you guys have arrived? >> yeah, this is very interesting, you know? even though the gaming industry is not set to increase too much this year, e force is always a potent force. it will grow by double digits. last year the revenue was $905 million. this year it is projected to hit $1.2 billion. so ohio state is really interesting. it actually isn't the first college to do this. it is a very huge college. there are about 60,000 students. i think it will turn some heads. stuart: did you imagine couple years ago that a major university would offer a e-sports degree? >> no. to me this is just absolutely out of this world. there was another school that did something similar, becker college, where they had an e-sports degree, like e-sports business management degree and they even had varsity supports

where students could gain scholarships for e-sports. had i known these kind of degrees would come out, i probably wouldn't have pursued my own career in medicine. stuart: okay. you're a doctor? >> yeah. stuart: you are? >> i am, yeah. the article they were billing, premed degree for people who are going to be doing careers in e-sports. man, i am jealous. stuart: you don't practice as a doctor. you're gaming guy, right? you make more money in the gaming than you do in doctoring? >> yeah. absolutely. you know, i'm in gaming industry. there is $135 billion last year. it is only projected to grow for the foreseeable future. have to go where the money is. stuart: get in there, lad, get in there. last one, you know game stop, retail store sells videogames. they had a real hard time. the stock plummeted all the way down. we have a chart on the screen and it is a diss ister.

i think is because people, you don't buy tangible games any longer, you download them, don't you? >> yeah. i heard you making this point earlier. i absolutely agree with it. when i hear the news about gamestop this actually breaks my heart. when i was younger i used to buy a lot of games from game stop. they merged with electronics boutique, arguably the world's biggest retailer. the problem is, is that videogames are starting to go more digital. they're moving away not just being a physical product but also games as a service. you look at microsoft. they have their x spot game pass. you can play any games in the library for $10. strategically speaking this is the future. it makes a lot of sense. game others will spend more on subscription purchase rather than purchase a game for $60. stuart: how many hours per day you play a videogame? >> [laughter]. well, okay, that is kind, that is interesting. when i was in college i used to play a lot. i used to play like, maybe like,

i don't know, probably four hours during the day. then like eight hours over the weekened. i try to cut down now. mostly i play mobile games. maybe like, just a few hours a week. stuart: is "fortnite" the most popular game at the moment? >> yeah. you know it is insane. "fortnite" generated $2.4 billion last year and i think it will still be generating on the order of billions of dollars this year. it is huge. stuart: amazing. dr. wong, if i can call you that. thanks for joining us. we appreciate it. we found out a lot, son. susan: medical doctor though? medical, wow? stuart: medical doctor. susan: playing games in college. how impressive. stuart: super bowl is this sunday. there is some big numbers. how much advertisers are paying for 30 second spot. many people watch the game through streaming got the numbers, full report coming up for you. ♪ alerts -- wouldn't you like one from the market

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stuart: a positive outlook from royal caribbean, the cruise people. when you do that your stock goes up. royal caribbean is up 5.7%. we have ebay, they will pay their first ever dividend. not helping the stock. it is down 1%. now super bowl story. i got numbers for you. first off the price for a 30 second ad, i know it is almost double from 10 years ago, but what is it now, susan. susan: you will be shocked. 5.24 million in 2018. we don't have 2019 numbers just yet. they have to play the game. we recount, see how much it all costs. yeah, it has gone up over the last 10 years. when you're getting so many

eyeballs, it is so exclusive, you want to be a brand that wants to buy in. that is part of the broadcast as well. you want to watch the super bowl ads, see who is in them, right? stuart: i do. susan: you asked me about pregame. stuart: yes. susan: pregame, if you want to go the bargain route which coca-cola has, they have been called cheap, especially since the super bowl is in atlanta, their hub, according to abc, one million dollars for a 30 second ad in the pregame. not cheap. stuart: completely different five million during the actual game. that is interesting. how many people watch it via streaming this year? susan: we were looking at some of the statistics for pc mag. cable is still the main way. 50% of people watch it on cable. 11% will actually stream it. most of those i don't think will surprise you. most of those are millenials, younger folks, 18 to 34s. 60% stream the game instead of watching it on tv or cable.

stuart: that is interesting. susan: what is interesting, more people rooting for the rams. more rams fans will be streaming than pats fans. 22 states cheering for the rans. stuart: i'm told everybody hates the patriots. that is the way life is in america these days. pizza hut has a giveaway, is that right? susan: yes they do. it is a very submitted giveaway. they're giving away free pizza and super bowl tickets to the first baby born after the kickoff on super bowl sunday. stuart: they get ticket's no next years's game. susan: tickets to next year's game. i'm not sure the newborn give gets tickets. plan to post a photo ton twitter. don't forget to hashtag it, pizza hut, special delivery. stuart: lots of commercials for pizza hut. susan: will you watch the game? stuart: i won't be able to stay up to the end. halftime, that is it. i will be asleep. that is life. check the market please. solid gain and we're holding on to it. 260 points up for the dow.

55 points for the nasdaq composite. wait a minute. our next guest says we're headed for a correction sooner rather than later. didn't we just have one? well, he is on the show. that china trade meeting is underway. you can see it right there. i say we need china when it comes to trade. we need help with north korea from china. gordon chang says, it is not going to happen. he's next. more "varney" after this. ♪ my experience with usaa has been excellent. they really appreciate the military family and it really shows. with all that usaa offers why go with anybody else? we know their rates are good, we know that they're always going to take care of us. it was an instant savings and i should have changed a long time ago. it was funny because when we would call another insurance company,

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heart's club band ♪ stuart: i love the harmony. this is classic, british musical history. >> go with it. stuart: love it, love it. take a drink on camera, why don't you. susan: thirsty. stuart: what have we got? look at this, up 272 points. it is a rally, based on i think, strong earnings. now we've got the latest numbers on how much oil we've used and how much we still got in storage. give me that number. susan: i'm looking at a build of 3.1 million barrels in a week. that is a lot of supply. i don't know what that means for oil prices. that may be crimping it we're looking at 1.25% jump in oil pricing. so yeah we're up in terms of build. stuart: we've added to our storage of oil? susan: from what i have seen yes. stuart: i'm surprised the price has come down from -- up 54

bucks a barrel. susan: producers looking at 910,000 barrels in the week. we were expecting 3.1 million barrels to be added. that is disappointing but still a build, that was correct. stuart: very slight. susan: not as much supply. not as much inventory. hence why the price might be up. stuart: we're up to $54 per barrel as we speak. ii have another number for you. this morning we have a report there were 213,000 private sector jobs added in the latest months. that is a strong number. does that point toward as stronger jobs number comes out on friday morning? let's ask anthony chen, chief economist at jpmorgan chase. i always say this, this man is a hotshot on wall street. we're privileged to have him join us on the show this morning. welcome aboard, anthony. >> glad to be here, stuart. stuart: 213,000 private sector jobs. does that point to a good report

on friday? >> the adp report is not perfect. sometimes it be makes mistakes. i think it is pointing to a number of 175 to 180,000 for non-farm payrolls. keep in mind the adp report doesn't take into account anything happening with government workers. by and large it is still a pretty robust number. the reason for it, despite the fact a lot of people, or companies may have been tempted to lay off because of federal contractors, because of tight labor markets, perhaps many companies are scared to lay off people. they may not come back. they may go somewhere else. stuart: sure. it is active job market. that is a fact. talk to me about the federal reserve. they have a big meeting today. they issue a statement this afternoon. i'm not so much interested in interest rates because i think they will stay dead flat. i'm interested in the thing called the balance sheet. how much money they take out of the economy. can you give us a word on that? >> owe, absolutely. one of the things i've have been

looking at, movement in banks excess reserves. that is falling at much faster pace than the size of the balance sheet. now remember, that the federal reserve in trying to reduce the balance sheet, 50 billion, every single month, trying to take liquidity out, some of the air out of the balloon. if excess reserves falling faster, what does that mean? that means they may not take as much air out of the balloon. six months, year ago, people were thinking they have to bring down the balance sheet 4.5 trillion, somewhere south of $3 trillion, because of sharp decline in excess reserves, that number may be somewhere closer to 3 1/2 trillion. which means we're getting very, very close. we're just a little bit above $4 trillion. that is good news for the market. it means they don't have to take as much liquidity. stuart: if that is good news for the market, why are you saying that we're going to get a correction on the market sooner rather than later? why? >> well, stuart, on average over the last four decades you get a

correction of some sort every year averaging about 13.8%. but having said that, another thing that i certainly like to look at is the longevity of how long a typical correction occurs. recent research that i have done finds when it is closer to the average or below the average, corrections occur more often. in february, what did we get? we pot a correction and it was around 13 days. towards the end of the year we got another correction, 95 days. again they're short. what happens when the corrections take a longer period of time to take place, we have to wait almost five times longer to get next correction. another way of saying that, you have them shorter, you get corrections much sooner, about eight months on average. so i think this year we will not escape some sort of a correction. it could come sooner, rather than later. by the way there is a lot of volatility. we still don't know about the chinese trade. we still don't know whether we get another government shutdown.

there is lot of opportunities. that doesn't mean we have recession this year. don't expect it. but a correction can come, don't be spooked by it. stuart: i shall not be spooked by anything. i got it. anthony chan, see you real soon. >> pleasure. stuart: you heard, watch this decision on interest rates and balance sheet thing, watch on our network, please. interest rate decision at 2:00. powell's news conference, 230. we'll cover it on the fox news network. high level trade talks happening between u.s. and china. come on in china watcher, gordon chang, author of the coming collapse of china. welcome back, gordon. good to see you. >> thank you, stuart. stuart: you expect a deal, china trade deal, but you don't think it will be a good one. explain. >> well, first of all, this talk about them buying more goods and commodities from the u.s., more than a trillion dollars over six years. first of all that deal will

never survive a world trade challenge on non-discrimination grounds. second reason, china doesn't have capacity to implement the deal that would take them from current account surplus to a deficit. they can't do that right now. the third thing in order to get that deal, stuart, we'll have to forgo tariffs. those tariffs are remedies for the theft of u.s. intellectual property. more important to protect our ip than sell more soybeans. we do not want to look like a third world economy exporting third world products to import chinese supercomputers. that does not make sense for us. stuart: there will be nice things, shaking of hands, big smiles for the cameras, it doesn't mean that much in the long term. >> what it means protection of u.s. ip and stopping of china's proceeder to trade practices. those are baked into the system. stuart: donald trump is a fierce negotiator. he knows what is going on. he will not give away the store

just for a photo-op? >> i hope so. stuart: okay. >> you know, trump actually believes that china is a threat to the american economy. so you know, i think that he actually end up with an enduring relationship or a deal but, we got to see. stuart: real fast on north korea, we need china's help to move forward on north korea. >> no, we don't. we've been saying we need china's help for decades and the chinese have been helping the nor koreans. they did that during the six-party talks. they have been doing that in the last year or so, trying to give kim jong-un sort of confidence in order to defy the u.s. china is a maligned influence on this donald trump was right to cut the chinese out of the talks last march. i think that we're on a much better path if beijing is not in the room. stuart: you don't like the chinese government very much, do you? >> we, stuart, it is the chinese government doing things that sort of persuade me that they're probably not on our side. stuart: i'm with you, gordon. i am really with you. thanks for being here. appreciate it. >> thanks, stuart.

stuart: there is a huge story in america right now, that is the record breaking cold temperatures sweeping the country, much of it. windchills below 50. 50 below in chicago. that is where mike tobin is right now. mike, let's go. describe what it's like. reporter: well, it means business when the chicago river freezes over. as you can see right now, bank to bank the chicago river is frozen over. it feels like a cold slap in the face. it stings a bit to breathe in. we didn't set the record. we set a record for january 30th for cold temperatures, all-time record is negative 27 according to national weather service. we got to negative 22 overnight. the real feel is negative 54, when you add in the windchill. i don't want to undermine seriousness of this. there is cool trick you can do when it gets this cold. hot cup of water. watch what happens when i throw it in the air. nice cup of mist into the

chicago river. it is so cold that the rail line operators are setting steel rails on fire. it gets so cold the steel will sheer, can sheer off the bolts. it has cracked some rail lines. minneapolis, st. paul, the blue line out there is now delayed because they had rail lines crack. nights are delayed. more than 2700 nights have been canceled. more than 7,000 are delayed. the roads are terrible right now. it is so bad, that the state of minnesota has pulled the snowplows off the road. the snow nows were having mechanical problems in the severe cold. they didn't want their drivers getting stuck out there, ultimately would be perilous conditions. if you do decide to go out and drive, understand the salt doesn't work in extreme cold like this. assume if you're driving that you're on a sheet of ice. better yet, don't drive. put it off for couple days. that is the overall advice out there. stuart. stuart: tobin, that was the best report on super cold that i have

seen on tv today. good man. mike tobin. see you again soon. get inside. okay. now this, britain's prime minister theresa may trying to renegotiate the brexit deal. she will head back to brussels. i wonder if this ends with may out of power? i will talk to mr. brexit, nigel farage, in our next hour. first president trump just spoke with venezuela's opposition leader juan guaido. trump supports guide do i. america supports him. my question is this, are democratic socialists here learning the lessons of socialist venezuela? we're on the story and it's a good one. ♪

♪ susan: tax time. americans for tax reform president grover norquist says while some americans will get smaller tax refunds this year, that is actually a good thing because they paid less in taxes overall. listen. >> 90% of americans will see a significant tax reduction. you will also see 46 million people used to have to itemize. that is now down to 18 million people. 90% of people can use the standard deduction because it has been increased so dramatically. this is a significant reduction

for a lot of middle income and lower income. someone making $35,000 as individual, see as drop by about $800. this is dramatic reduction in people's tax burden. ♪ woman: my reputation was trashed online, i felt completely helpless. my entire career and business were in jeopardy. i called reputation defender. they were able to restore my good name. if you're under attack, i recommend calling reputation defender. and consider joining their groundbreaking campaign to give every american the right to remove old, inaccurate search results by going to righttobeforgotten.org. vo: if you have search results that are wrong or unfair, call reputation defender at 1-877-492-6705.

stuart: not sure i understand this, but it is breaking news. facebook releasing a statement on that research app that has

been collecting data on its users. susan: so facebook has been criticized as you know, stuart, by multiple reports saying they are paying teens and adult users to install a spy software to basically collect data on their viewing habits, paying teenagers $20 a month to do that. apple has taken that research, facebook research app off the app store. facebook responding today, saying key facts about this market research program are being ignored. despite all early reports there is nothing secret about this. it was literally called the facebook research app. it wasn't spying as all the people who signed up to participate went through a clear, on boarding process, asking for their permission. they were paid to participate. finally, less than 5%, less than 5%, they say of the people who chose to participate were actually teenagers. all of them, by the way, had signed parental consent forms. they are firing back. this is not illegal.

we were not doing something under the table or spying. it was all con -- consensual. stuart: they made a fair point and firing back. susan: that was hard. stuart, venezuela opposition leader juan guaido asked for brazil for humanitarian assistance. by the way he wrapped up phone call with president trump. the white house says, we, america, will maintain regular communications with guaido. this as venezuela's dispute the president nicolas maduro says he is open to negotiating with the opposition. joining us now, martha maccallum host of "the story" with martha maccallum. >> good morning. stuart: bring this home for me. do you think america's, democratic socialists, bernie sanders of this world, there a less san for venezuela back here? >> absolutely there's a lesson for them. countries they talk about sweden, denmark, peeled back some of the things discussed now by democratic socialists in the

united states, when it comes to venezuela, it all started really under chavez in terms of expansion of the benefits and expansion of the welfare state in venezuela, that was so excessive, that the burden just broke the country. so that leaves inevitably to dictatorship because they want to suck whatever resources available in the country. in this case it is the tremendous supplier of oil out of the ability to service those benefits. they want to keep a lot for themselves too. they know they can't keep everyone happy, stay in power, keep themselves fat and happy. stuart: let me jump in for a second. back in the days of hugo chavez when all this thing started, they simply took it, ex-prepare bring expropriated the land, expropriated the oil company. >> that is communism. stuart: absolutely. senator elizabeth warren is

proposing wealth tax, not income tax. seizure of wealth for millionaires and billionaires. i see what happens echos of what happened in venezuela coming on board here. >> absolutely. at the very heart of it is a forced redistribution of wealth. they say you made too much money in the capitalist society. that is wrong, unethical, therefore, it is not too difficult to get lot of people in a country to agree people who make more than $10 billion, people don't, we don't know people who are in this category, right? tiny, tiny, sliver of the american population. stuart: true. >> so it is very easy to say, oh, absolutely. they should absolutely pay more than their fair share. just the effort to claw that money, which apartments to several trillion dollars over time as elizabeth warren has suggested and redistribute it. that is more fair, more equitiable. that is what her argument is.

stuart: i make another prediction. >> yeah. stuart: you go on the air 7:00 eastern time. >> what is going to happen? >> i think there might be movement in venezuela with maduro and his generals out. >> you do. stuart: yes, i'm reading the tea leaves here. just shipped reportedly 20 tons of gold out of the country. >> russians brought in a jet, according to some reports and moved their money out of there. that is a pretty good indicator that they are concerned that maduro is short-lived. so i think you may be right. we'll see. stuart: 7:00 eastern, martha maccallum, fox news channel. >> see y. stuart: you bet. seven teen lawmakers are meeting to talk about border security. president trump says if they don't come out with a physical barrier they are wasting their time. we have a guest who says mr. trump will get what he wants. he joins us next. ♪ (indistinguishable muttering)

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stuart: not quite the high of the day, but up well over 1%. 267 points higher. the dow at 24,800. >> >> a tweet from president trump. here we go. if the committee of republicans and democrats now meeting on

border security is not discussing or contemplating a wall or physical barrier, they are wasting their time. jason chaffetz is with us. he is a fox news contributor. and he thinks president trump will get his way and get his wall. make your case because nancy pelosi is as intransigent as ever. >> yes, but you also have steny hoyer who is the majority leader. bennie thompson is important, he is the chairman of the homeland security committee. both says they believe physical impediment, something on the border, they're not opposed to that i think it comes down to semantics. 17 people, house republicans, democrats, senate democrats and republicans i think they can get from here to there. nancy pelosi can take her supposed win. but at the end of the war donald trump will get a version of the wall and it will be important to america. stuart: but it might not be a wall from coast to coast. >> the president never said he wanted it coast to coast but you

have to fix the existing border wall. some of it is six foot. looks like tin. and then you have got other parts where you want double fencing. it is going to be down to the semantics. and republicans have to make sure they allow the democrats have some sort of a wins and presidents have to allow the president to have some sort of a win. i do think people will get from here to there. i do think we'll have an extension of the existing border wall. stuart: but semantics, the words used will be very important. >> yes. because this is a bill that is already been proved by democrats and republicans. so the authorization to build the wall is already there. the funding has been something democrats supported in the past. now they just have to do it again. unless there is some language that goes in, either called striking or limitation amendment, the president will be able to move money and build that wall. neil: but he will have to look like nancy pelosi is not capitulating and caving? that she cannot do? >> yes. it will be tough for her on tuesday night when the president

is standing up there for a good hour 1/2, making his case to the american people. all eyes will be focused on that. but it does move numbers. it does move the american people. i think the president is on the right side of the issue protecting our border. stuart: a platform, the state of the union address. >> the platform. it is the number one platform. neil: people do watch it? >> by the millions, tens of millions. stuart: you see him standing up there, addressing congress. >> oh, yeah. stuart: making his case for a structure, a wall, a barrier, a physical barrier. >> donald trump at his best is in this setting. when all the marbles are there but he is very scripted. it is not a rally. he already done this twice. hugely successful. i know he will pull off number three. stuart: interesting point of view, original thinking from mr. chaffetz as usual. >> appreciate it. stuart: billionaire candidates stepping into the 2020 race. that's a dilemma for far left democrats. how do socialists accept

successful capitalists? my take on that is next. ♪ time for a new kind of cloud. the ibm cloud. the cloud that proactively protects your business from threats, instead of just reacting to them. that lets you modernize and move more of your apps without re-writing. that unlocks insights from all your data and puts it to work with ai. get a faster, more secure journey to the cloud. the ibm cloud. the cloud for smarter business. ♪ ♪

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>> billionaire candidates are stepping forward for the 2020 presidential race and the democrats are having a hard time sitting down into their playbook. how does a party that opposes the rich accept a candidate who is extremely rich. how do socialists except successful s.? that is a democrat dilemma. after starbucks founder howard schultz appeared to throw its hat into the ring as an independent, and it was an outpouring of intense opposition. a "new york times" op-ed called the candidacy reckless idiocy. today, an op-ed in "the wall street journal" called scholz an independent candidacy a terrible idea because it would just get

trump reelected. senator elizabeth warren says what's ridiculous is billionaires who think they can buy the presidency. alexandria ocasio-cortez says a system that creates billionaires is immoral. they are much more money than howard schultz. throwing out signals that he might run for a democrat. why? because the democrat party has been taken over by the far left, which has no time at all for the very wealthy. senator warren wants a wealth tax. 3% a year on billionaires. bernie sanders regularly rants against william ayers and senator joe legrand says you've got so much money is just not fair. ordinary candidates have to spend heavily to win primaries. schultz as an independent faces no primary challenge and bloomberg can buy his way out. policy also says the

billionaires apart. the democrats medicare for all plan would bankrupt the country and senator warren described as ridiculous. figures the democrat dilemma. if you're a moderate, where do you turn? all you've got right now is an independent billionaire, howard schultz or the multibillionaire, michael bloomberg or maybe the 76-year-old joe biden. nearly 100 years ago the poet wrote this. the center cannot hold. he could have been writing.about today's democrats, couldn't it? the third hour of "varney & company" is about to begin. a notch for newer who is supporting higher taxes on the rich beauty the rich beauties rich himself that he wants more taxes on the rich. by the way, this just is no

stranger to our program. watch what happened last time he was on. stuart: i'm a very well-paid guy. i pay more then. half my income in federal income taxes. stuart: let's bring him back. right on the screen there. by the way, the host of economics partners. i'm okay. what do you make at the top of the show there? the democrats about a dilemma here. i was a socialist and the democrats are now socialist and i think you're part of that group. how do you accept billionaire successful s. >> i strongly disagree that i'm

a socialist. what we're arguing about her versions of capitalism and in fact what you're defending, what we presently have in socialism for rich people. that's the arrangement we have built in our economy. we have giant corporations that pay their workers so little that they require food stamps and medicaid and rent assistance to live. we have giant deficits paid for by tax cuts for rich people and giant corporations. we have chileans of dollars of infrastructure that we need to get done and the only reasonable source of income for paying for that are taxes on people like me. so make no mistake i am no socialist. i believe in capitalism, but we have to have an arrangement that works for everybody. the only way that will work as a people like me pay our fair share. tranter donald. tranter donald trump, president trump at his tax reform deal actually worked in your favor. he is doing what you want because the 1% from other rich

people of this country, the people who make the most money in this country will end up paying more in tax. donald trump is doing what you want. >> that is objectively false. tranter it's not. it's not. it's not. it's not, wait a minute. you listen to me for a minute. the people who are in the 1% group, if they live in a high tax state, they will pay more in tax this april 15th and they paid last year. tax reform has increased their tax liability. that is a fax. >> stuart, we just passed a one-point $5 trillion tax decrease. under what scenario are people like me paying more during that time when tax rates went down. stuart: all tell you. let me explain from economics to

you. i am in the 1%. thank you very much indeed fox i love it. i live in new jersey. i will be paying this year a great deal more in tax than i paid last year because of tax reform. that is a fact. >> well, in aggregate or just in federal government. stuart: in aggregate. >> in any case, stuart, domain being -- stuart: i am right and you know what. >> no, no, stuart i obviously don't know your particular tax situation. you know, that is between you and the government. we just passed a giant tax decrease. it is not plausible that your taxes went down during the time when the tax rate went down for big corporations and rich people. stuart: did you hear about the non-deductibility? did you hear about that?

>> let's zoom out to the broader issue. how are we going to pay for the infrastructure? are we going to deal with the debt and make sure that the typical american family that hasn't had a raise in 30 or 40 years gets ahead. that is what we're arguing about and that is why people like howard schultz don't make good presidential candidates. all he represents his trickle down economics. tax cuts for rich people, in which suppression for everybody else without the overt racism. we need to invest in the middle class. we need to raise taxes on rich people like you and me to fund the things that sustain our economy. that is not socialism. that is sensible capitalism than it would be best for you and best for your viewers. stuart: kamala harris wants government health care a polished private health insurance. paying for that would cost trillions of dollars. you cannot take chileans of dollars of just the rich.

you end up taking it off the middle class as well. that's a fact. >> stuart, and american health care could cost almost as much per citizen as it does in every other than industrial country because of our private insurance system. but she is advocating is replacing an incredibly inefficient system with a far more efficient system that would cost the country in aggregate far less. we have to rearrange a bunch of things, but it would be better for all citizens, would be better for the country and it would be better for the health care system. stuart: okay. i still feel pretty good at the end of this interview appeared that surprising. not all pent up. i'm in a good mood. the market is out. thank you very much indeed. i've got to segue to give everybody the great news the

stock market is on the bare. we are up 316 points. 24,898. almost a 25,000. that's a rally doublespaced logic on some very good earnings reports that we've been getting today. high-level china trade talks under way in d.c. the u.s. delegation includes the top-of-the-line people, robert breitweiser, stephen mnuchin, larry kudlow. the chinese folks represented by vice premier, senior level stuff. the talk comes days after america charged huawei for stealing trade secrets from american companies. got it. let's get to venezuela. president trump: the opposition leader wanted guaido, this morning called him to congratulate him for sending to the president he. he is our guy. in the meantime, guaido talked with her on trish regan last night. listen to what he told about the country's most pressing needs. roll tape.

>> that's very important. the people need medicine, food that the humanitarian aid passed and approved by the united states, the european union. that's the first priority. now venezuela lives on $3 a month. that's a tragedy. it's impossible to survive under these conditions. >> president trump followed that with this tree. willing to negotiate with opposition in venezuela following u.s. sanctions and the cutting off of oil revenues. guaido is being targeted by venezuelan supreme court. massive protests expected today. americans should not travel to venezuela until further notice. according to a tech crunch investigation, facebook has been secretly paying users, some as young as 13 are access to their

data. 20 bucks in gift cards per month. plus referral fees to sell their privacy by installing facebook research. facebook's responded in here is what their response is. they say there was nothing secret about this. we will deal with it, but i say this is another hit for facebook. apple dealing with the problems -- their own problems. the teenager discovered a bug that allowed you to hear the audio of the person you face time, even if the person didn't pick up. why didn't apple fineness first? several headlines from california. gavin newsom wants big tech to help pay for the state's housing shortage. and now california is considering more worried marijuana taxes because legal part campy with the black markets. what a mess. is this why 15% of residents want to be that state? here's another one. a new report shows that fewer chinese investors are buying

luxury properties in america right now. they are keeping their money in china. this is the third hour of "varney & company." [knocking] ♪ ♪ memories. what we deliver by delivering.

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and financing is available for qualified purchasers. trained to look at those streaming socks. okay, they are like -- is that the right name of it? they say that the number of people who use streaming services rose a whopping 89% last year. that's pretty good news for netflix. that stock is up another one and a quarter%. viewers still can't decide on what to watch. 14% say they switch between streaming services before a show even starts.

iphone sales up on a big boost in revenue on a service that are of apple's business that includes itunes, apple pay, the app store, et cetera, et cetera. the stock is up 5%. a solid game for a big company like that. joining us now is heather zimmer brought up vision for vice president. did i get that right? >> you can call me whatever you want. you're not a big fan of apple. explain yourself. some of the wounds are self-inflicted. tim cook inaccurately those using china as a scapegoat right now. the iphone sales are down 27% revenues in china right now and they factored the complete -- this actually did a complete market of people wanted and i

thought that if you want one you probably have one. and analysts are citing lack of innovation what have you done for me lately. the iphone may, iphone access macs. stuart: let me throw this into the ring. i've got an iphone. you've got an iphone. i can use this for three or four years without any problem with the weather. maybe that's the reason why people are not buying the newest and latest models. the amount that is a problem that they lacked innovation for people to upgrade their phones. after the latest glitch, maybe it is all timely given android. if you can call me before you pick up the phone, you can hear and possibly see what i'm doing. problems like that will make users switch to a different. stuart: i've got to tell you we've got a whole series of people who've appeared on this program. market watchers come investment people. almost all of them say apple is

cheap at this price and makes an excellent long-term two or three year down the road investment. you are not part of that? >> they have come down a lot from their highs. the stock market overall has come down in q4. january is looking good in earnings overall. knowing, not just apple, latest release positive results to help boost his markets. if you're looking for undervalued play, maybe there is some valuation here, especially in the services, the apple watch, for example. they really have to ramp up their ipad, itunes apple music. which accounted for 19% increase in revenue versus to offset the iphone upset the iphone the client we just talked about. stuart: i might go out and buy some other zumarraga. thanks for being with us. appreciate it. mattel has parted -- partnered with warner bros. to develop a

hot wheel live-action motion picture. no word on the release date. did you know mattel actually has their own film studio now? they've got a film studio. didn't know that. super bowl sunday. the price for a 302nd ad going up almost doubled over the past decade. we'll tell you how much it cost this year. there is one company, the world's top-selling automaker for the fifth year in a row. can you guess which one it is? not necessarily the mark on your screen. place, the xfinity xfi gateway.

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the shirts were so easy to design on the site. the custom ink team was super helpful and they just came out perfect. seeing my family wearing my shirts was such an amazing reminder of all the love and support that everyone has for my dad. - [narrator] check out our huge selection of custom t-shirts and more, for teams, businesses, and every occasion. you'll even get free shipping. get started today at customink.com. stuart: before the break we asked you to guess the top-selling automaker. it is volkswagen. it sold nearly 11 million cars last year. vw says strong sales in china hope the numbers. the length of a knock, mitsubishi was number two when toyota was number three. pw number one. the report shows the average price for a 302nd ad in the super bowl reached by $.2 billion last year. that is doubled over the past decade. last year's number. this year's average price is

expected to be roughly in line with the $5.2 million. check it out. rover sent back this picture from the surface of mars. the picture is made up of 57 individual snapchat taken by the robotic arm. the images are then stitched together in a single panorama. nasa says mars looks dustier than normal because there's been a store. the brutally cold temperatures in the midwest are causing everything to freeze. that is the chicago river frozen. hitting 22 degrees below. wind chills even worse about 50 degrees below zero and is heading for the northeast. here's an interesting backdrop to the trade talks. in the report shows fewer chinese investors buying luxury properties in america. they're keeping their money in china to help their economy. the weak chinese economy gives us leverage in the trade talks. good story and we are on it.

we are close to 24,900. the dow was up 319 points. look at rolling. that is one of the dow's drivers. it is up 23 bucks right now. that is explain 3% and that's a very big game for a company like bowling. look who's here. the host of making money, charles payne. here he is. i think this rally, 300 poinsettias largely driven by the stellar profit reports. would you say? >> i agree. they have an absolutely phenomenal. if you go through them, almost everything one has the same sale so that the american economy is what's powering things. if you look at 3m, caterpillar, all these numbers, it just keeps powering higher and higher. it's absolutely phenomenal. and it's corroborated but the adp jobs aboard this morning. where the midst of an amazing economic revival in this

country. stuart: 213 private sector jobs reported this morning. tell me more about bowling. that is a stunner. >> first of all it's the most influential stock in the dow. it is the number one stock in the dow. just the. just so people know, record revenue, record operating income to the core margins operating income for the poor margins on 21427 from 12 driven by every component. commercial delivers 238 from 209. operating margin sifting through 6% from 11.6% of the operating margins went to 10-point i'm from 10.3. the guidance through the roof. cash flow with a $17.5 billion a share. it is on fire here. here is the beautiful thing. china doesn't buy anything from us through for all touristic reasons. if you read made in china 2025, there is ambition when it comes to commercial planes is to be a player sometime in the next 10 years. they have to buy the boeing

planes because you make the best ones in the world do not sway the orders are so solid and confident. stuart: that is why boeing is the china trade play as well as an earnings player. >> china really would love to mess around with l.a. menus that. soybeans are one thing. you can get them from brazil. you can't get a boeing plane for many when the boeing. not even airbus. you can't match the quality and excellence of this company. stuart: 324 points. 24,900. 1500 points away from the all-time high for the dow. we are going across that level. >> right in the mess of what they call key resistance. i've been talking for this for two weeks. i think it is the number now through they are about to say. will definitely be tested. stuart: because 26,000. >> no doubt in my mind. a lot of people believe 2600 is s&p and tested at all-time highs it looks absolutely phenomenal. oval or sold bounce to something

a lot more presence. stuart: you should come on the show. more often. what is your show? >> 2:00 p.m. stuart: what's it called? >> making money with charles payne. stuart: i'm watching. i'm watching. nobody calls a broker these days. you can get online and buy it. >> i still get paper paychecks. i'm old-school. stuart: do you? >> they've been after me. they may stop hating me because the last one didn't come. it's been a week. what's up. is that the final message to me? stuart: charles, you're all right. breaking news coming year ago. fox is auctioning its regional sports network. charlie gasparino, our guy has more on who is bidding. charlie, -- he's on the phone. give me the story.

>> it is 22 regional sports networks that disney has to sell as part of deal to buy the fox entertainment assets. stuart, this is pretty unprecedented here to looks like major leaguea stahl wants to get into the cable tv business. the second round of the auction ends tomorrow and what sources are telling the fox business network that mlb is planning for has put a bid into the fox regional sports network. this is pretty big, unprecedented. mlb is one of three bidders but also include sinclair brought testing and apollo management. the second round bids are due on thursday. i don't have the price. i here it is below the initial $20 billion they disney and its bankers and jpmorgan were looking for. let's be clear here. this is the first time i've ever heard of a leak looking too on cable networks or the question is why did they want to do it? one rationale is there really

afraid if these go into weekends, go into a highly leverage private equity firm, owns all these things, some of the smaller market might not get the marketing and promotion any. in any event, mlb apparently is inching from what i and they are going to bid on the rsn's. again, it's unprecedented. i don't know if any sports league in the cable tv business. they will be the first. these are done tomorrow. mlb is in it. back to you. stuart: great story. congratulations. thank you for being with us today on short notice. good stuff. the the real estate in the report shows fewer chinese investors are buying luxury properties in america. keeping their money in china. i want more in the real estate and i'm going to get it from samantha deeb thank you with the real estate people. she is with us right now. i want you to focus on who is

buying. i know you operate in south florida and you tell me there's two groups of people who are now buying. group number one, people are just putting a very small amount of money down. is that right? >> we were seen at lasher and again this year. 3%, 5%, 10% down. it's interesting because you know, people have jobs as we know. they have credit, but they don't have the money to put down. and why? obviously because these prices are super high. so naturally they can put down as much. they don't want to spread themselves too thin because they need to afford furnishing a house. other items, updating the house. stuart: you can put down 3% to 5% and you can get your loan in the secondary market will accept that loan. that's a breakthrough. >> encina left and right. the second group glendale's are really going to count on millennial's for 2019 to really transform our market because as we know prices are coming down to the market is going lately

appeared more inventory is on the market and were counting on this millennial spirit stuart: i've heard this for a long time. melania's are still under the gun with student loan debt. don't just dismiss it just like that. there's a trillion two or a trillion three of student debt out there. >> a decent amount of student debt gas. however -- there's a decent amount. a huge amount. we can agree there's a huge amount. in 34 years old. and the aging millennial. i have so many millennial set are buying. you have a 26 euros, that's millennial to which is interesting. they were renting. they been sitting on the sidelines saving money, working on their credit in this here is when we are going to get them off that fence and into a home. for sure. millennial snake of the largest amount of the buying pool. they make up over 30%. stuart: i thought they wanted the record i thought they lost their faith in the american dream of owning a home. >> the younger millennial spirit

to millennial group is such an interesting group because they're so different. the aging, my age 34. i'm very aging pair that with the gray hair. in the 26-year-old, very different people. 26 road win to fire festival. stuart: describe millennial spirit with the gauge group? >> 23 to 38 or something like that. it's a wide, wide range. not the issue. what they millennial see how to think aging versus the 26-year-old. very, very different. 23 to 38. that's a huge group. >> but they're also smarter because they're very technology-based. there coincides like philip and see how prices have been going up another coming down. ashes so things work. some neighborhoods like mine and lights up like a christmas tree -- tree with active listening. i'm interested. we'll see you again soon.

now to gaming. ohio state university will have a degree program in east sports. this program will include classes about coaching youth sports teams, marketing video games come in managing the business side of gaming in designing games. the school is planning to build in a sports arena for its competitive east sports. >> go buy a house if you're getting i gave here that's for sure. look at alibaba, please. the stock is. they came in with higher revenue. full disclosure i do own a little alibaba. boston a few weeks ago. it is up 5%. it is up $8 at 164. at&t, their revenue fell short. they've got some problems with their directv unit in the stock is down 4%. at&t dropping below are $2 per share. got it. say what we've got coming out.

california 2020 candidate kamala harris wants to eliminate private health insurance. she's also going to run on a $3 trillion tax plan. newly elect a governor gavin newsom wants big tax to help pay for california's housing shortage. he wants a loan of $500 million from big tech. the state is now even considering lowering marijuana tax is because the go carts can't compete with the black market. have you ever seen in california a single tax that comes down? no. a new poll revealed a large number of california residents are ready to move out. we've got a lot to go with her california guy who is next. ♪ metastatic breast cancer is relentless,

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been crunch yesterday a big-time. stuart: anything to the profits? >> u.s.-china trade talks a significant process reported by stephen mnuchin in the largest economies in the more that they can get along better. stuart: look at those winners. pretty good. it is a market rally. now we are up 315. very close at 24.9. we will be back.

stuart: samuel adams, the beer people come another founding father. they just released a new beer in time for the super bowl. it is called too old, too slow, still here. this is the massachusetts brewery. all of this staking its claim as the patriots and tom brady while snobby noses at anybody who refers to their storied quarterback is too old to play. get it? too old, too slow, still here. california's governor, gavin newsom wants silicon valley to pay for the state's housing shortage. let's bring in our california guy, larry elder. he wants $500 million from the big tech companies in silicon valley. they have a housing problem. >> no, it is not. yesterday i spoke to t.j.

rodgers, the same former ceo of her. he attributes the affordability crisis to bad government policy, to things like regulation. all of these wealthy people who buy a home. he says the housing crisis is caused by government and will not be solved by government. we could lower the cost of housing by simply removing some of these regulations. stuart: do we know what you get the $500 billion? i believe it's a loan. >> when you look at the california legislature is composed, he probably will. they've got super majorities in the senate. super majorities in the assembly. republicans can even stop the tax increase. if he wants he'll probably get it. stuart: how about senator kamala harris also running for the presidency in 2020. she's doubling down to completely get rid of private

health insurance ph is planning to pay for this graph actually what they trillion dollars tax plan. what do you make of that? >> well, she is the center of their party. alexandria ocasio-cortez and bernie sanders has moved everybody now to the point where everybody who is running is pushing for medicare for all. tuition free college come a minimum wage $15. she is right where the party is. you could swap around with any of the other ones who are running, whether it's delivering or corey booker, bernie sanders. they all feel the same way. medicare for all is the same goal. that is the goal of obamacare from the start. they never intended for odometer to be the end of it. obama said it, harry reid said it. howard dean, then chair of the dnc said that was the ultimate goal. that is the ultimate goal. stuart: as they understand it, legal pot is taxing california, but it can't compete very well with the black market.

as i understand it, they are thinking of lowering pot taxes. that will be the only tax the california upper lowers. >> well, they're disappointed because they didn't come in as anticipated. the taxes so high that the black market is still alive and well. stuart: will they never learn? larry, you are a voice of reason from california and with which you on all the time because you are indeed the voice of reason and we appreciate that. thanks for being with us. >> too old, too slow, still here. >> none of the above. see you, larry. according to a tech crunch investigation. facebook has been secretly paying users, some as young as 13 for access to all, and i mean all of their data. twenty dollars a month plus referral fees to solve the privacy by facebook research.

facebook says nothing secret about it. it's all up front. they've responded to this. problems of their own at apple. a significant bug that allowed you to hear the audio of the purse in your face time, even if they didn't pick up. 18 and his mom tried to warm apple. up next we've got a man who will break down exactly what happened. i am not for colds. i am not for just treating my symptoms... (ah-choo) i am for shortening colds when i'm sick. with zicam. zicam is completely different. unlike most other cold medicines... ...zicam is clinically proven to shorten colds. i am a zifan for zicam. oral or nasal.

stuart: that glitch that allowed face time users to eavesdrop on others. you heard about this. in arizona team and his mom said they tried to warn apple about it for more than a week, but apple didn't listen. i want to bring an art sultan with the fulton interactive group because he knows more about this than i do. i want you to explain how you can eavesdrop on somebody who's using this space-time thing. i just don't get it. tell me how it works. >> everyone out there who has an apple phone go into the settings

and turn face time off until they fix this thing. the general gist of this is that you have an open communication channel through face time. and what they've done is code, leaky code. if you go into the apt comment even though you are not necessarily connected directly, what you are doing is getting package sharing, data sharing and between the phones so it's operating like a walkie-talkie. stuart: you could just hear somebody on the line so to speak. could you see them as well? >> there's multiple cases that it come out. some say yes, some say no. it depends on different operating versions you haven't told on the phone and also what apple is done behind the scenes. stuart: it is just sloppy coding and they were slow to react to this and slow to jump on and fix it. >> this is a continual thing they have. apple has been slowing down phones for a long period of time. and it -- think about it this way. what if you bought a tesla and

every two years they sent a software upgrade to slow it down to make you buy another tesla. that's what they're doing with the iphone. stuart: that is not the way i see it and think about apple. >> plan out the lessons. tim cook hasn't been able to innovate. all they are doing is making this bigger. they take future functionality away and make it bigger. apple needs to innovate the way it did was steve jobs otherwise they're basically going to are running into a wall by 2020. stuart: that is easier said than done. steve jobs is the ultimate innovator. that product change the world. >> the 90s are back. her role has a razor flip phone coming out and there's holding top of phones from china and korea hitting by 2019. the other side is you've got to do currency zones. we are about to enter an interesting thought more and it will be interesting to see who remains after the next two, three years. stuart: you doubt what the apple face tempting. now deal with the facebook

thing. facebook paid teams to reveal everything about them. a bit of a scandalous that broke this morning. facebook is responding to mail -- all read their response. key facts about the market research program are being ignored despite early reports. there was nothing secret about it. it was literally called the facebook research act. it wasn't spying is all of the people who signed up to participate went through a player on boarding process asking for their permission and were paid to participate. finally, less than 5% of the people who chose to participate in the market research program were teens. all of them with signed parental consent. that seems like a pretty strong comeback. stuart: i will tell you why. there's nothing inside inside of the general sign-up process for facebook that really allows for this. there is something called coke, which is a set of guidelines that you can be collect data and

marketing children. it's illegal. stuart: they pay them 20 bucks a month. >> this is a challenger running into. facebook has made it simple to any kind of a meet up for utilization app that you have out there to use their single sign-on and it passes your credentials and all of a sudden all of a sudden you didn't have to create account. on one side of this the problem is incumbent upon us he agreed to pay attention to security. the project atlas, which is kind of like atlas shrugged, the ion red reference there. you know, this is the future what these companies are looking on. they're looking at us as basically points on their balance sheet. you're not consumers anymore. when they realize that they can't market to children anymore, that they can't market teenagers because they have like 20% plus drops in utilization of the market share, they're trying to figure it out. in between this and they haven't app coming out where they're

trying to share means. they'd understand the culture. they don't understand how wallabies are being shared in between children online and people online. the problem you how does that kind of like there is a meme that has good to this paper that says hello fellow kids. they took him into the market trying to do the same fashion. if were not able to start securitizing our social, you know, this is what's going to happen and never in turns into a data claim in a balance sheet. stuart: a. stuart: heartbreak coming out. thank you for joining us. there will be more "varney" right after this.

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valuable extras like: a 24-hour nurse advice line. the silver sneakers fitness program. and mail order prescription coverage. all for an affordable monthly plan premium. and, in some areas, no plan premium. with humana, you'll get more than original medicare alone and have the peace of mind of knowing you're covered for doctor visits and hospital stays. plus, routine physicals and preventive screenings. and when it comes to prescriptions, in 2017, humana's medicare advantage prescription drug plan members saved an estimated $6900 on average on their prescription costs. so call a licensed humana sales agent today at the number on your screen, to see if you're eligible to enroll today. and say yes to getting the right health care coverage without having to wait for it. stuart: one thing i really enjoy doing this program when we have a really significant rally and i can turn to our viewers and my colleague susan li, you know, this is a rally.

>> it's a good day. it has been a great earnings day all across the board. stuart: no comments. i leave you with this, the dow is up 344. neil, it is yours. neil: stuart, thank you very, very much. there is a big reason for that rally, boeing and apple. they are getting lion's share of that runup. boeing was one of the first to say, caterpillar might have problems in china. we do not. in other words, their asian exposure is not such it would be worrisome. what exposure it is ample has not been hurt here. that sort of consistent theme you're getting from a lot of multat this channels go, china goes, fortunes reversed today. china trade talks formally kicking off a two-day affair. anything could happen. at issue what will happen to the tariffs kicking in upwards of $200 million worth of chinese