because you're terrible and people hate you. no more than -- no people hate him. let's call some folks down in new orleans an ask them how they feel. anyway. no they do people don't excuse me they don't like him. have a great day everybody "varney & company" begins right now. stuart take it away of you a throwback thursday shot you want to share? >> i don't to share. good morning plar ya. good morning maria and good morning everyone. you know, it was the fed that did it. chairman jay powell stood up and told world he was done raisings rates for now this is a reversal from what he implied a couple of months ago. inflation is tame. economy is slowing global economy is slowing so why raise rates mr. powell said health department be patient that did it. the stock market took off. jay fowl is doing what president trump wanted him to do. lay off the rate hikes, so was the fed truly independent? investors don't care. the stock market took off.

now this morning, it is all about the big tech comeback. look at facebook, record profits and -- there are now 2 7 billion monthly users that stock is taken off. look at apple, a huge gain yesterday, and it is holding those gains again today in premarket action. big tech comeback. microsoft, however, trading lower. a slight miss as they say -- slightly less revenue slightly less profit than analyst expected and down it goes about 2%. tesla they've got a problem. another top executive is leaving down it goes three and a half percent. overall after a 434 point gain which put dow back above 25,000 stockses this morning are lower. down about 90 on the dow but look at the nasdaq help by technology, it will show a small gain. president trump tweeting about china trade, he says tacks are going well. but there will be no final

agreement he meet with president xi. he meets china's vice premier at the white house later. it is all about your money today. but we have more from howard schultz upsetting apple cart and weather is making big news again supercold has now reached new york city where we are. so you bet it is big news. "varney & company" is about to begin. ♪ >> i think in thes need a little bit less caffeine right now is what i think. i think they've overrotated completely because it is very possible if i run for president as a centrist independent that more lifelong republicans will come my way. than democrats it shall issue -- >> this man is getting a lot of coverage howard there talking to fox news anchor david about how far left the democrats have gone lately.

lizzy, if he runs as an independent i think he might. took from which party does he take the most votes democrats or -- >> i think democrats because he has the democrat social policies right, and that's really what the democrat party is about. that's what critics are are saying you know, the issue he is pointing out is from the critics of the democrat party is that what a habit -- and even wealth tax would not pay for medicare for all and bernie sanders said oh, hillary clinton is a capitalist. but with the thing is what howard is pointing out not who he not what he honestly repghts. but the divide and democrat party and how extreme left it has become because honestly howard sounds more like al gear or a bill clinton remember al gore wanted small government and growth bill clinton wanted small government and growth. and he's talking about 4% growth howard he sounds like old time

democrat. >> he does. only hope that democrats have if they have it up there is joe biden that's it. i don't see anybody else -- >> that's a good point i think you're right are and take my votes out of the democrats side. i think so. let's get to money today focusing on facebook, of course. record profits despite a raft of scandaling joining us us now is social flow jim anderson a social media kind of guy. it seems to me all of these scandals of privacy, etc., et cetera have had no impact on the company's actual business. >> no, they haven't it's a money machine and super bowl is coming up this weekend and strikes me as facebook is like new england patriots you can hate them but they keep winning. that's a good point. i was waiting and i was looking at that report coming across, i was waiting for the number of act five users monthly active users, because if that had gone down that would tell me, that the scandals are hurting them that people are just turning off facebook.

but went other way. it is growing. 7 -- >> people are complaining about slow end user growth you know when you're up to 2.7 billion, of course, your user growth i'll give you a number here stuck with super bowl analogy facebook u.s. users among slowest growing and somewhere in that range. super bowl ratings last year in u.s. about 104 million people tuned in so not only is every day, a super bowl on facebook every day is a super bowl and a half on facebook and i think we get immune to size of the numbers we're dealing and therefore financial power. >> but there's got to be a limit how much expansion in their profit and user growth all of that is got to be a limit somewhere. evidently, though, they've not reached limit yet. >> they haven't and thing that struck me most interesting part to me was not just the user growth but now they're making more per user they sort of upped average revenue per user they have to buy $2 this time i think $7.5 or so per user so not only

growing number of users but growing amount they make per users way they're doing that is chair changing the swiping and navigation from sort of the vertical navigation to the snapchat like horizontal but this is swiping swiping and tapa big deal. >> but that's how it works but what you're telling me is they're extracting money out of users than they were before, and that's a big -- when you you put 2.7 billion people using it. you add a dollar per user on 2.7 billion people you know that's 2.7 billion that did that math in my head so have you now forgiven them their sins? >> i don't think so. i think there's still risk out there they face daunting societal issues that alleged election interference is technology bad for our children and for ourselves. there's a lot of data privacy issues so you know, they have a fantastic carry quarter and we d congratulate them for that these issues are not -- >> it has not affected the money

that's a big scandal. >> the money comes from advertisers and advertisers follow the users so as long as they can keep users sort of there growing a little bit, and expanding their -- share of time, they're competing for screen time and advertisers seem willing to follow. >> got it. jim anderson sir, thank you appreciate it. let's take a look at tesla. they have a problem. another profitable quarter, that is true two in a row that's good. they've got 3.7 billion dollars cash on hand but look at that. the stock is going down this morning. below 300 down about 3.5% so liz what's the problem? >> surprise announcement on fernings call that cfo was leaving again this is a second time he's left it and didn't make a formal announcement it be. there's been major turn yoaf in senior management ranks at least 22 people in top management have left overall 40 people have left over the past year or so. so when you make announcement like that to drive your stock down well below convertible bond price that it needs of 35987

they talk a lot about it cash and balance sheet is good at 3.69 billion it is at the same level it has been for last three years so the 921 cash yacht of that convertible bond march first it hits a quarter of a cash on the balance sheet they have 2 billion dollars worth of bonds coming to over next two years to hit the cash and balance sheet when they need to build out infrastructure, powering stations and light. i'm telling you that's why it is pointing to downside down 3%. >> supposed to not be any math on this program. >> sorry you have an accounting geek next to you. futuring show them to me please go down at the opening bell that 90 odd points but look at the nasdaq go up a bit. fed made for a big rally yesterday. joining us now is former reagan economist, art laugher, let's get into it i think jay powell did exactly the right thing this is no time to be raising interest the rates. right? >> i agree with you 100% i think he's done a great job so far and a terrific fed chairman, and he

should be very sensitive to the markets and a he is. which is exactly what he should be. now we've got this survey of economists by "the wall street journal" which suggest that growth in the last part of last year, the fourth quarter would be 2.6% web and growth in the first quarter this have year will be 1.8%. art, that seemses to me like a really big slowdown. >> no i don't think that's true. i think there's a show -- a shutdown in the government had some effect, obviously, in first quarter, and i don't think that what gdp number in the fourth quarter is really a bad number at all. and when i look at the long-term trend of this country with the policies in place, i'm still very optimistic by the way emac it is good seeing you i saw you last night. >> i'm sorry. [laughter] >> accounting geek art come on. now -- look if it is only 1.8% growth in the first quarter, are you expecting a bounceback we've got to get back to two -- we have to get become to 3% growth here.

>> well i think we will. i mean, policies policies are an place and that process is going to occur we have had a very nice year last year. i think we're going to have a good year in 2019 as well. i wish the shutdown hadn't occurred i think that hurts somewhat on gdp but you know, i think it will pick back up and have a nice year in 2019. quite optimistic. >> is the key issue whether or not we get any kind of trade deal with china? is that the key to unlock the economy? >> oh, about yes where trade deal with china if it were a good trade deal if it was a good trade deal not any deal but that would unlock economy and china's economy. china is having a real problem this -- this negotiation this trade war if you want to call it that has hurt their economy a lot. and i think she would be very, very qiez to get a good trade deal with u.s., it is the right thing to do, as well -- it is not just good for china, it's the right thing to do.

>> okay we've got it art laugh per thank you sir as always. see you soon. thank you. where do we open the market it is thursday morning. we're going to be down almost 100 points of points but we wer0 yesterday. border negotiations -- still ongoing on capitol hill, nancy pelosi digging in, no money for the wall. the president tweeting about about that this morning. here it is here's the tweet. let's just call them walls from now on and stop playing political games. a wall is a wall. got it. the deep freeze still in full effect throughout much of the midwest and now, it has hit the northeast -- temps in chicago and minneapolis well below zero again today and general motors suspending production at plants because of the weather look at that. look at that windchill. i'm sure it felt like a movie drama fed is conducting predawn rated. boats, a helicopter armored vehicles agents carrying high powered rifles, all of this to arrest roger stone. the judge on that, coming up

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>> earning season with lots of profit reports higher profit at ups and stock reflectses that and nice tbain gain 3% higher and how about ge yes company is making money. and the stock is this morning up nearly 9% very close to 10 dollars a share. more on that when the market opens at 9:30 eastern. how about this, a headline from foxnews.com american nightmare judge napolitano wrote about that trump ally roger stone arrest that's what he's calling an american nightmare. and the judge joins us now take me through the drama of the arrest and the raid. >> 6:00 in the morning, 17 vehicles sirens, blaring 29 fbi agents and house to canal and hospital above with high powered

rifle high powered -- spotlights four fbi agents banging at the door. two holding a ram two pointing automatic weapons at mr. stone's head when he opens door barefoot in shorts and t-shirt to -- that's now not to arrest a kid paper or babies or terrorist this american living with wife hearing impaired while she's asleep, obviously, an his dog -- he whats to be donald trump's friend and advisor for 40 years. the charge is lying to congress not a violent crime. there's no evidence that he's going to flee he doesn't have a passport and not eminent danger to society. >> well, i don't know anything about roger stone guilt or innocence. >> neither to i. or charge against hum not the point. why on earth would government put on a show of force like that ?rchg either government thought that it could intimidate stone and he would flip and become a government witness against the

president of the united states in order to avoid future treatment like this. or the government thought it could create an impression amongst the public that he's probably dangerous which is why we have all of this firepower to arrest him and probably therefore probably guilty. but if you think that my libertarian views are effecting my description of this ask me what his bail was after he was delivered by these 29 agent it is to a federal courtroom. >> what was his bail? >> 0. >> what? >> that -- >> sign this, promise to show up if you don't show up we're going to need a bill 250,000 but trust you to show up so federal judge concluded this was preposterous in this background -- >> now we ought to be able to find out who authorized it that excessive use of force. >> very good question senator tbram lindsey graham who is the chair a of this senate judiciary committee dispatched this investigators to find out.

that this come from bob mueller now bob mueller can't tell fbi and u.s. marshals how to conduct an arrest. or did it come from parking lot fbi field office a in miami which is where most of these fbi agents came. you know what stone me offair and i don't think he minds me saying this how did they treat you after the cnn cameras were off? and while they were taking you fort lauderdale to miami he said gently politely somewhat apologetic for what had just happened. it was staged. it was staged that's like the behavior of a police state. charged with lying to congress. they qoangt give him a transcript of his alleged lies because the testimony for congress was classified. this is really to have to defend against something the government has the paper that claims contains his lies. he is not allowed to see that paper. but lawyers can see it in a secured facility.

they can't get a copy of it. no way will a federal judge allow this to be the basis for the prosecution because of the constitution say entitled to be confronted with evidence against you. >> remark public story. you can't make this up. thanks for bringing that to us. should see the light of day. thanks judge. one more time look at futures heading south a bit further south i should say down 115 at the opening bell. elon musk telling reportsers there will be driverless tesla cars on the road by the end of this year. now, forgive me, that is dreaming or sure seems that way to me in a mommy we're going to talk it a guy who says tesla next few months are going to be ugly. yeah we'll be back. now i'm thinking...i'd like to retire early.

let's talk about this when we meet next week. edward jones came to manage a trillion dollars in assets under care by focusing our mind on whatever's on yours.

>> now we're going to focusing on tesla, the stock is premarket down about 9 buckses well below 300 a share. now look, they made money. yes. but that stock is taking a hit. charlie grant wrote about it in today's wall street journal and charlie grant is us now you say that tesla is up against the wall. >> that's right. that's right. well we've got you know the steve jobs one more thing trick last night on conference call except the trick was that cfo is

leaving, and you know, that's never a great sign. >> a problem, obviously. tesla had a lot of problem with executive turnover seem like insiders are not nearly as bullish as outsiders who own stock. >> okay, and i think that coming year, we're going to see tesla in peek demanding for model three tax credits are winding down and will be wound down further in july. and tesla skipping on their capital spending it is with a lightest cap investment in fourth quarter since 2016 before they launched a model three, and so they're talking about all of these growth dreams in the future self-driving, new service centers, new truck line, new car lines spending less money than they have in the growth and future. >> but you say that they've already seen peak demand for model three. pfnlgt quite likely but that's -- really not good news at all if you're right, that terrible news. >> it's not. it's not 360,000 was the low end

of their range for deliveries that is basically what they've been doing the last two quarters. and -- you know, if an autocompany trading at 50 times earnings m plies -- you know, exponential growth for years to come and i think we have seen very impressive growth but in rear-view mirror and a i think road ahead is much tougher. >> one more thing. elon musk on the call yesterday said an let me get this right driverless cars you'll see them on the road by the end of this year. 2019 -- what do you make of that? [laughter] >> i look forward to the segment to talk about how that really happens. because i don't think so. but i will come talk about with with you. >> but he could come out with one car on one road in december of this year and say i was right. >> right. right then you could technically there were some games to play. people are not driving to work by the end of the year -- lay it out there. charlie grant thanks for joining us and see you i guess on the road are. check futures market we've

headed further south. we've got four minutes to go before we open the market and we'll be down about 120. back after this. alerts -- wouldn't you like one from the market when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today.

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the new capital one savor card. earn 4% cash back on dining and 4% on entertainment. now when you go out, you cash in. what's in your wallet? stuart: how do you open the

markets after the rally yesterday? it was a big rally and you can expect a little selling in "the opening bell" and that is probably what we will get but will it continue? that is the question and it depends on earnings. a slew of them out today and a lot more tomorrow. the day has started on wall street and right from the get-go we are on the downside, not much, 94 points down, 90 points down, not all the dow stocks have open but we opened a third to half a percentage point down. now we have a loss of 120 points, half of 1% down for the dow. how about the s&p 500? where did that open this morning? that has opened higher. there must be a couple stocks in the dow killing it because the s&p is up some more after a rally yesterday. same with the nasdaq. that tells me some technology

stocks like facebook are doing well so the dow is down, the s&p and nasdaq both up, david nicholas is with us, so is michelle mckinnon and the evening at it host, liz mcdonald joining in. record profits despite all the scandal of the last few months. does that surprise you? scandal but no reaction from the business side? >> you need to remember facebook doesn't have all their users across the globe and growth in users are more so across the globe. they are a little bit outraged because overseas we are not outraged but at the end of the day we want facebook to do well because it is great for small business. we talk negative but we want facebook to do well. >> the thing is up $17. >> what they are talking about,

this is the future for facebook, included end to end communication on instagram making payments on what's apps, doing shopping on instagram so that is a tweak to the business model which means more advertising revenue. >> that's probably the main reason the stock is up so much this morning or one of the reasons at least. how about microsoft? it has opened lower even though it came in with a slight miss from what analysts were expecting on profits and revenue. come in david nicholas. microsoft, what is the problem. why is it down? it had a pretty good result. >> i'm not concerned about what we saw but they had a chip issue with some winter -- windows interfaces, they couldn't get the product out fast enough to meet demand so you saw a slip that was pretty

significant. that is some of the issues we are seeing with microsoft but i think right now you might like this, microsoft is a deal right now, quite the stock drop. it is a good time for investors to look at the stock seriously. >> i own a small number of microsoft. we have some big names reporting profits, let's go through it. mastercard and visa. these are had a good holiday season, great numbers but warned consumer spending could be dented by china trade, brexit or another slow down. i'm surprised it is down, had a great holiday season with economic indicators. >> the ceo is trying to tell everyone we might see a lower number but i think you should have optimism and a resolution, optimism with the trade deal and the sentiments will pass and people will continue to buy. >> fair enough.

we are now 31/2 minutes into the session, we are down 138 points, have a percentage point. individual stocks had reports and here are the reactions. ups, better profit, stock is up 2%. hershey's profit and sales fell short of expectations and it is down 31/2%, dow dupont same-store, sales fell short of expectations, that is a dow stock and that is not helping and that is down 7.5%, big drop. how about ge, no longer a dow stock. it is making money and getting close to $10 a share so would you buy it right now? expected to go higher still? >> i think ge is still reeling from mismanagement over the last few years and gas units but there are some ugly things in that report which is the power revenue continuing to decline.

it is best to be careful with ge, not a by for me at this point. >> how about amazon reporting after the bell today. amazon has gone straight up this week, walking up towards earned input so it looks like maybe the market is expecting a blowout report. >> you will have good numbers not only because amazon does not have so much exposure to the china slowdown, not like apple which has a lot of exposure in china but also the cloud and that is a reason i'm bullish on microsoft, the cloud business. that is a huge business that is expected to double in revenue by 2020. >> microsoft's cloud business went up 74%. samsung, their profits come down, there is a global smartphone shipment problem.

is that right, all around the world smart phones have got a problem? >> it is not just samsung, apple is dealing with the same thing. the global economy is in a slowdown. we don't see that much here domestically but the smartphone market is a mature market so they are dealing with that of the second thing is competitive entrance in the market coming in a much lower entrance prices samsung and apple have to try to get the entry market, but outside that they will struggle going forward. >> it is a pricing problem, cheaper phones from apple. that is what tim cook said, markets where you could buy a phone for $100. stuart: a big news conference, he said he is done raising

rates for now. that set up a big rally on wall street. he is done raising rates for now. is that the right move? >> he's looking at the markets, pretty low inflation, he did not like his commentary in december, it is the right move. stuart: it is a complete reversal of what jay powell was saying a couple months ago. how do you explain that? >> complete 180. he has donald trump on his shoulder making sure he does the right thing but i have to think the bully pulpit towards the fed may have had some influence but you have a hyper data dependent said and where is the inflation? we are not seeing it. until we see that we won't see rates go up. we need to see inflation overall and it is not there. they will maintain may be one hikes toward the end of the year but not much more. stuart: i want to wrap up the market action. this is the last day of january, january 31st.

it has been a terrific january. we are down 150 on a dow industrials. dagen: we retraced $3 trillion of overall global market wealth since december 24th trading day. stuart: best months since october 2015, we are told in my ear by our producer. two things did it in my opinion, strong earnings, 16%, 17% compared to a year ago and profits are the baseline for wall street and now that said does a 180 and says we are done raising rates, what am i missing? any other positive factor i am missing? >> you've nailed it. the other thing is sentiment, investor sentiment has changed dramatically since the december break.

so they will maintain a policy that is accommodative. earnings up 16%. where's the gloom and doom we saw going into the fourth quarter, company profits are great. we will see markets retrace all-time highs, we just have to get past the trade issue and hopefully we don't see another government shutdown but if we get that, i am as bullish on this market as i have been in a long time. stuart: what else have you got? >> definitely bullish and with earnings looking good the fed finally stopping, things are bright and green. stuart: some kind of crazy environmentalists here? we have to say thanks very much, thank you, good to see you. check the big board again. when i say the big board, the dow jones industrial average is out of whack with other indicators. there is a bigger loss on a dow, the nasdaq is on the upside. what is going on?

just a couple dow stocks which are sharply lower, the dow, dupont's for example and a couple others, that is undercutting the dow but not touching the nasdaq and the s&p. that explains the by for catered market. senator kamala harris doubling down on medicare for all, saying access to healthcare is a right. we will tackle that next hour. nancy pelosi refuses to budge on negotiations over border security, no money for the wall. our next guest was at the white house meetings on the border and says donald trump is ready to deal. be sure to watch after the bell at 4:00 eastern. we have you covered when amazon reports. big deal, 4:00 eastern, this network. ♪

>> we are still down on the dow to the tune of 160 points. visa, microsoft, intel, jpmorgan and mcdonald's all dow stocks and all down sharply. that accounts for much of the loss on the dow jones average. we have the brick and mortar retail or cold steaming up with weight watchers. you are going to tell me what cole's is doing with weight watchers. >> the key to survival his foot traffic. walmart and target do groceries. it is rebranded as wwf. this is going to be one physical studio.

we don't know the exact location yet and healthy kitchen items will be sold online and certain calls stores across the country, coles is doing pretty well, 4% in january, weight watchers, you can't discount the opera affect taking effect in 2015, stock rallying to a record of $100, oprah may have said a few weight watchers shares but when she gets in the stock does well. stuart: she sends a few weight watchers shares, that is very good. let's get to immigration, donald from tweeting about the border wall funding battle, large sections of wall have been built with much more on the constructional ready to go. renovation of existing walls is a big part of the plan to finally after many decades properly secure the border. the wall is getting done one way or the other.

democrats reportedly still will not give a dime for wall funding. daniel gaza is back with us with the libra initiative. you have been at white house meetings about border wall funding, you are meeting jared kushner who is quarterbacking the negotiations. >> driving the negotiations with respect to hammering out a solution on the daca issue in the border security issue. stuart: what did you get from jared kushner? is the president ready to deal? >> there is an openness to a counteroffer. they are in 3 weeks of negotiation, open to what the other side has to offer and negotiate. what they are trying to achieve is both sides don't look weaker on the other side of this, they want to be strengthen and there is a bipartisan solution, permanency for the daca kids and the president receives his funding request. >> kind of obvious isn't it?

don't mean to interrupt you but the main deal is those young people brought here who have been here for years and years, they are dreamers, surely there is a mechanism to get them to stay, everything is fine but mister trump gets his wall. isn't that the obvious deal? >> america wins. we enhance border security and strengthen border areas, that is good for america and the same time, we incorporate young children with vast capacities who can contribute to the economy and plan their futures and destinies as educators and employers can plan their future as well. this is good for america. stuart: is jared kushner, acting for the president, prepared to accept that kind of deal? >> the end game includes

permanency. we don't want to have the same divisions and discussions and he reminded us the president and the state of the union offered up citizenship for 1.8 million dreamer community. he saw some openness and i appreciated that very much. hopefully the other side can counteroffer and negotiate in good faith. they've gotten to negotiations underway. we have a bipartisan group on the house side and on the senate side reconciling their differences. stuart: if the solution is there, the deal is there. come on, mister speaker. breaking news from the white house, peter and navarro making comments on steel prices. what have we got? have you got the story here? >> we got the story, the

president will be signing an executive order involving incentivizing buying american steel, it will be an executive order called by american and trying to incentivize american companies when they are seeking government contracts, infrastructure projects to buy american products. they did not get into what incentives there may or may not be but it raises the question if you're going to incentivize buying american steel, steel prices have only gone in one direction since the tariffs have gone back and forth, steel and aluminum tariffs, those prices have gone straight up so i asked peter navarro if you're going to incentivize buying american steel does that mean you are going to incentivize higher price tags for these projects? he responded by saying in his estimation that steel prices will moderate over time. i followed up with him and said what exactly does that mean?

weeks or months or years. he said months. one person's estimation, his read on steel prices and where they may or may not be headed in the foreseeable future. 11:45 maybe we will see him on camera after a big meeting with the chinese vice premier. >> thanks very much. i would call that market neutral, has had no impact on the stock markets, still down, 150 points and they are on the downside. uber's shipping division is making news today rolling out a new rating system for shipping warehouses, just like ratings for regular drivers, next on this program, the head of uber will be back.

stuart: what if a truck driver could rate the shipping warehouse that they use in the same way that an uber driver could rate you? suppose you could do that? uber has an apps for that. joining us is leroy, the head of uber rate.

i am in dangerous territory because i'm not sure i understand what i am talking about so have i got it right? you are offering this apps that you could rate a warehouse. is that right? tell me. >> you got it right. we are giving power of reviews and ratings we all love from uber, giving us power to truck drivers and carriers so they can rate the shipping and facilities that are spending so much time. stuart: is would affect, it would rate the efficiency of a trucking company or the warehouse and therefore affect how often that trucking company and that warehouse is used? right? >> that is correct. trucking is the lifeblood of the us economy and those facilities, tens of thousands of facilities across the us are the critical point of the supply chain. those are inefficient and very complex coordination of pickup and drop off and we want to

provide a tool to unite truck drivers and carriers, and shippers on the other side so they can collaborate, make the facilities more efficient and advanced the industry. stuart: what proportion is uber rate of the overall uber company? >> small but going fast. the fastest growing division of uber and the fastest logistics company in history and very excited on bringing the next step to the offering. we built our carrier base and spent the second your building the shipper base from fortune 500 two small businesses that want to ship stuff so we feel we can connect them and really allow them to see all the black boxes and all points of inefficiency.

it is easy to wait and give the review and rating, the shippers can then see that on the shipper platform. they can have live insight from those reviews and they can really improve their facilities and cut costs to maximize that for those truck drivers. stuart: i wish your company was publicly traded. i wish there was a stock i could quote so i could tell whether or not investors think this move is good for the company or not so good for the company. when are you going to become a public company? >> we intend to be a public company in the future and we believe we are on track of doing that but nothing more to update. >> if you did know something you wouldn't tell me anyway. appreciate you being on the show and good luck with that efficiency of uber freight, sounds very interesting. the former starbucks guy howard

shultz really shaking up politics, democrats are going after him but do who does he take votes from? democrats or republicans? my take on shultz. . .

stuart: they're still going after him. of all candidates jockeying for the 2020 race, none has quite the impact of howard schultz. he launched on sunday with an appearance an "60 minutes." today is thursday, he is still getting most of the political attention. he is sucking the oxygen out of everbody's's campaign. it is easy to see why. he could split the anti-trump vote and help the president to a second term. he has the money, $3 billion to finance a presidential run on his own. and most important, he is challenging the left ward drift of the democratic party. he is calling out the socialists and he is also challenging the president, trying to take votes from him too. look at california.

california democrat kamala harris. she is running and she would take away the private health insurance of 150 million americans. senator elizabeth warren demand as wealth tax as well as higher income taxes, medicare for all, tax the rich, confiscate their wealth, bedrock democrat policy these days. schultz takes aims right at it. ridiculous he calls it, not american. he says i do not believe in what the democratic party stands for. that's a slam. but the president and republicans are not spared the criticism. mr. trump he says, is unqualified and despicable. he absolutely doesn't like the republican tax cuts. he told fox news, he would take more votes from lifelong republicans than from democrats. he can argue who loses the most all day long but it is clear that howard schultz is really shaking things up. and an independent may have a very slim chance of winning the presidency but howard schultz, coming from the center is already having a big impact on

presidential politics. the second hour of "varney & company" is about to begin. ♪ stuart: all right, breaking news president trump tweeting about the border. here it is. more troops sent to the southern border to stop the attempted invasion of illegals through large caravans in our country. we stopped the previous caravans. we will stop these also, with a wall. it i will would be so much easier and less expensive. being built. we'll have more with general jack keane later this hour. he tweeted on trade talks, looking for china to open their markets, not only to financial services which they're now doing, but also to our manufacturing, farmers and other u.s. businesses and industries. without this a deal would be unacceptable. we just got the latest read on

mortgage rates, being thursday at 10:00 eastern time. liz: 4.46. last week, 4.5. last year, 4 .42. you remember people saying 5% mortgage rates this year? now the housing market is saying this is the bottom. housing market is not doing so great. pending sales going down. when inventory is smaller, down goes the market and down go the rates. they're saying dead flat. stuart: back to howard schultz. listen to what he had to say about his possible 2020 presidential bid. roll tape. >> there is, it's a very strong possibility that more lifelong republicans who will have no place to go if there is a left-leaning liberal progressive democrat, they will vote for donald trump. it is very possible if they had a better choice, someone in the middle who can speak to their values they would vote for someone like me. stuart: that is interesting.

take votes away from the gop, as well as votes away from the democrats. katie pavlich with us, fox news contributor, "town hall" editor. katie, what do you think? i would think mr. schultz would take votes away from democrats primarily. what do you say? >> i don't know, based on the way he is going after their policies, left ward tilt, i'm not sure democrats would vote for him based on what he is saying. stuart: moderate democrats surely. >> do moderate democrats exist? they do exist in places like michigan, ohio, places where the electoral college will be very important for howard schultz. an independent run is the difficult the way the electoral college is set up. however if you look the way president trump won in 2016, he had i think 90% of republicans voting for him. that dipped down to 85%. so there is a problem he has with people getting shaved off, however, if the president can hold on to his base, which he will, howard schultz pulls away

moderate republicans, moderate democrats, left has only base voters, it will be about turnout, president was good doing. hillary clinton was not good turning out voters in 2016. someone like kamala harris with the big crowds may be able to do that. if schultz runs, it will be election about base turnout. if he doesn't run, it will be each candidate trying to get people over in the middle coming to their side. based on president trump's record, michigan, wisconsin, ohio, bringing jobs back, it will be difficult for left to take those voters. stuart: if schultz runs as independent, trump wins second term, would you go that far? >> i think that is probably true. stuart: look at the tweet. this is from kamala harris, california senator and presidential hopeful. access to health care shouldn't be a privilege, it should be a right. when my mother passed away she had the benefit of having medicare but not everybody does. too many people are dying because they can't afford medical care.

that is inhumane. why i support medicare for all. you're sighing deeply, katie. >> well look, she came back and walked back this idea she is going to eliminate and get rid of the private insurance market but let's not forget socialists, i don't like calling it single-payer, don't like calling it medicare for all, it is socialist medicine she is advocating for. even if you allow people to keep private health insurance plans, socialist big government eat away at private sector, forcing people into the program. health care is not a right. she is advocating that makes health care impossible to get. let's not forget health insurance does not equal medical care. plenty of people who have obama care, own private insurance plans as individuals through their company who cannot actually pay for medical care because their premiums are so expensive and their deductibles are too high. essentially they're paying out-of-pocket for basic care anyway. as we've seen all over the world, these idea of providing

medicare, socialist programs for all, it comes to health care, actually not the case. people get less care, less health care and less quality of care which is not exactly what people are wanting to sign up for. >> i am recovering european, i'm here to tell you are absolutely right. >> thank you, stuart. that is why i come on your show. stuart: you're welcome. thanks, kate katie. >> thank you. stuart: i will stay on the socialism theme and bring in gary kaltbaum. gary usually comments about the market. he is fired up about socialism. i will give you free rein. go for it, gary. >> as i always said these socialists are people never created a dime of wealth or a job and they spend their days demonizing the people that have created all the wealth and all the jobs and they sit there and tell people, your lot in life is where it is because you're being screwed by all these people. and amazingly, a lot of people follow them. for me it is one big gigantic con job. they have never run any

businesses, and you just been talking about health care. to think somebody never been in the business, knows nothing about it, wants to take 150 to 200 million people off of private insurance, to be run by a government which by the way is running $22 trillion of deficits and every year trillion dollar deficits, it is beyond reason as far as i'm concerned and it is getting tiresome. i'm going to be the loudest voice in the room as we move forward because they're getting louder. stuart: come back on the show tomorrow, repeat the process, please, gary. >> yeah. stuart: let's talk money for a second. jerome powell, fed chair, i think he just did a 180 on rates. it clearly helped the market. he will not be in any hurry to raise rates. he will be very patient he says. do you think that is the right thing, gary, the right move by the fed chair? >> stuart on january 4th on this show i think you were out of town i, i was on with ashley.

i was the biggest bear on the markets. i did a 180 myself on his own words because i've been following the fed for years. whenever they go easy the market starts acting better and away we go. i hate central banks. i don't think they should be around. i hate the fact a select few people can decide on trillions and trillions of dollars getting into the market or out of the markets. i wish they would go away. i think he has done the right thing because of one reason, the 10-year is down to 2.75. there is no reason to go above that number. but when all is said and done i'm so worried about asset bubbles because of all this money sloshing around not just here but around the globe. there has been 15 to $20 trillion of printed money. you still have negative rates in areas like japan and europe. they're still printing. china now is going insane as far as easing. again i worry about the end of the rope, but right now markets are in good stead, beta areas,

technology areas, are taking the lead. that is usually good news. stuart: gary, thanks very much indeed. see you again soon. >> thank you. stuart: we better check the big board. we're back a bit. we were down 150, now we're down 120 points. that is almost exactly a half a percentage point. tesla, another top executive is leaving. they had a profitable quarter, that is two in a row but the stock is down because the executive is leaving. talk about microsoft as well. growth in several product lines slowed down. microsoft missed the expectations. that is a cardinal sin on wall street. the stock is down. liz: you hate it. stuart: i feel it is a rigged game. fed up with it, especially when my stock gets clobbered about. simple. visa, they had good holiday numbers but they warned that consumer spending could be hurt by china trade, brexit or a shutdown. it is the biggest drag on the dow. there are several.

that is the biggest. big hour coming up for you. it's a thursday. more trade talks with china. president trump says no final agreement until he meets with president xi. our next guest says trump has the leverage. he will make his case. venezuela's opposition leader in "the new york times" today making a plea to his people and the world, stand up to disputed president maduro. russia, big stake in venezuela. how far would they go to protect their interest there? general jack keane, military guy, joins us to talk about later in the hour. record earnings at facebook. despite the headlines, it doesn't impact their bottom line at all. we'll talk to someone that says facebook needs to be broken up and he called zuckerberg a horror show. second hour of "varney" just getting started. ♪

stuart: we're coming back a bit. the dow is down almost exactly 100 points. we had been down 150. look at general electric, moments ago, still there, look at that. 10.56, price on the stock. best since november last year. the company is making money. that is quite a comeback today, 16% up on ge e. ups better profit, up goes the stock, nice gain. 6 1/2% up for ups. check dow dupont, the biggest decliner of all the s&p 500 stocks. it is a dow stock, down 8%. that is taking a chunk out of the dow as well. back to the trade talks, president trump meets china's vice premier this afternoon. he will soon sit down with president xi to finalize a trade deal. he also tweeted this, looking

for looking for china to open financial markets and manufacturerring and farmers and other u.s. businesses an industries. without this a deal would be unacceptable. we have a headline from our next guest, look at it now, thanks to trump, china's economy is rapidly decelerating. here is what could happen next. andy puzder wrote it. the author of, the capitalist comeback. so your point is, that president trump has given us huge leverage over china because their economy is suffering badly. go ahead, make your full case. >> i think we have pressure on president xi from three sources. one is the chinese people. gdp per capita in china is $10,000 a year. in the united states it is $62,000 a year. that is after 2years of 6.6% better gdp growth. they need continued gdp growth. this is the worst year they have had since 1990. so the people is putting pressure on.

private sector is putting pressure on president xi because they're very concerned what's happening with the trade deals, you've goat manufacturing down, investment down, consumer spending down, exports have been down for seven months in a row. with the economy going down the government will focus on state-owned entities which benefit the politburo. you have a concerns from the private sector that they won't get attention. you have concern from the politburo, that the state-owned entities are not producing as they used to. the big problem i think china will negotiate, they will negotiate with president trump, the big problem is how do we trust them? most of the things we're asking them to do they're required to do about it world trade organization. remember in 2015 when xi told president obama they wouldn't militarize the south china sea, and wouldn't hack our businesses anymore, both are completely untrue. we have to be able to negotiate

but we have to be able to enforce. stuart: the other side of the coin president trump really needs a deal as well. if there is no deal, come march the 1st, no deal at all, they don't shake hands, don't smile, nothing gets done, our economy goes down and our stock market takes a hit. president trump knows that. there is great pressure on him to do a deal as well. >> there is two separate things. one is the stock market going down. that could well happen because the stock market can react emotionally. the economy, look, jay powell, who is not a big supporter of either side here, just trying to go through the economics, what our economy is going through, chairman powell of the fed said in october, that this trade war really wasn't having much of an effect on the american economy. it affects some companies, it helps other companies. even if you took all the tariffs that they're talking about imposing, the impact on the economy would be small. so president trump needs this politically. i think it is important to get it. i think it is important for the

stock market but i don't think it is as big of a threat of our economy as it is to the chinese economy. stuart: i will sum it up like this. the stars are aligned with a deal do you agree with that? >> very well-stated. stuart: i will take that. and did you puzder, thank you. >> thank you, stuart. stuart: amazon is the big name reporting profit this is afternoon. stay with fox business please. after the bell, we'll have you covered, 4:00 p.m. eastern, those characters on your screen right there. forgive the expression, characters on the screen, they will cover it for you. you have got to watch this because those amazon earnings will be a very big deal. fox business, 4:00 this afternoon. super bowl liii, yep, this weekend. 80% of the bets on the game will be made late. they start today. they leave it until very late to make the bets. i'm going to talk to a vegas oddsmaker what he is seeing so far, especially those crazy,

oddball bets, plenty of them. more "varney" a moment. ♪ my digestive system used to make me feel sluggish

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stuart: intel under a lot of pressure recently. they are under pressure today. they named interim chairman, ceo robert swan, they made him permanent. that news got out, the thing goes down again. 2.25% on the downside. intel is a dow stock. democrats don't appear to be budging on a wall or whatever you want to call it. come in blake burman from the white house. i think the president is tweeting, it is a wall, it is a wall and i want it, right?

reporter: he is recognizing this could go nowhere fast, at least negotiations up on capitol hill, fast. president said this could be a physical barrier, could be steel slats, now he is saying this is a wall. this was his tweet earlier today. let's just call them walls from now on and stop playing political games. a wall is a wall. he then went on to say this, quote, republicans on the homeland security committee are wasting their time. democrats despite all the evidence, proof, caravans coming will not give money to build a desperately needed wall. i got you covered. wall is already being built. i don't expect much help. appears if there is a little bit of a shift. no longer steel slat or physical barrier. it's a wall, as you've seen from the president he recognizes that democrats are not going to be giving in on their demands. he is going back to his initial messaging of this being a wall. by the way, as for talks up there on capitol hill, democrats saying more money, more technology, more personnel, but

not really a dime for that border wall. republicans are saying at least if nothing else, get a down payment for this thing. the president starting to lay the groundwork this is going nowhere. stuart: i figured he would. a wall is a wall. i want a wall. thanks, blake. back to you later. record profit at facebook, despite never ending stream of bad headlines, bad pr, keeps on coming. it did not affect their bottom line. our next guest says there is something seriously wrong with facebook and its leadership. he will make the case. billionaire howard schultz, takes up the political system. wouldn't democrats warm to him over democratic socialists? i will ask a reasonable democrat, our old friend doug schoen, next. ♪ ♪. now i'm thinking...i'd like to retire early.

let's talk about this when we meet next week. edward jones came to manage a trillion dollars in assets under care by focusing our mind on whatever's on yours.

♪ stuart: i'm disappointed. liz: why? stuart: this is bubble gum pop. liz: this is bubble gum pop. it is a boy band, right? >> not a boy band. the greatest rock band of all time but let's move on. stay out of it. >> i am, i am. stuart: the dow industrials came back nicely. liz: they have. stuart: we were down 150. now we're down 56 points on the big board. we closed above 25,000 yesterday. we're just below it, 24,960 to

be precise. big tech names to show you. microsoft is down despite a pretty good earnings report. all the other big-name tex, apple, amazon, facebook, alphabet is on the upside. microsoft is one of the dow stocks helping to drag that thing down. let's talk about facebook. they reported record profits yesterday, yesterday afternoon, despite a stream of negative headlines. joining us vivek wadhwa, distinguished fellow. he does not like facebook at all but you got to hand it to them, despite all of the scandals, the business has not been affected at all, right? >> stuart, i don't like my utility company either, i don't like my cable company. i have no choice. that is what happens when you get monopoly powers. the american system isn't working here. we're supposed to restrain monopolies and provide companies from getting so much power, no

matter what evil they do you can't stop them. that is the situation here. what is the alternative to facebook? nothing. that is what the problem is. stuart: i would have thought with all the bad publicity there would be fewer active users but that is not the case. their active monthly users went up to 2.7 billion. they have almost half the world's population. no decline at all. how do you explain that? >> stuart, because most people are busy doing what they are doing. they may read the headlines. don't like the company. mark zuckerberg two years ago was talking about running for president. he was putting out rumors running for president. today i don't even he would think about it. he has become extremely unpopular and become toxic because of all this we have no other choice but facebook. that is why this company needs to be broken up. because they also have instagram. they also have whatsapp. they have been allowed to get away with too much over here. stuart: you know that the chances of them being broken up, in all seriousness, they are slim and absolutely none.

you would agree with that, would you? >> i would agree with that. our legislators keep getting snookered by zuckerberg. when it comes to congress, speaks to them, sweet talks them, makes them look like fools, they don't know what to do with them. stuart: i think you're right. tell me about tesla. their profits not good, their chief financial officer is retiring. you've been a big supporter of tesla. what do you make of this? >> stuart, they're producing nearly 100,000 cars a quarter now. the company is profitable. the company is talking about growing further and conquering new markets. -- is a friend of mine. good guy. wanted to retire many years. he went into retirement, elon brought him back because he needed help over there. he came back. the guy wants to enjoy the rest of his life. let's let him rest, not rest in peace, let him have a good time and move on. stuart: careful how you phrase that, vivek.

be very careful. on the corporate call, you know, they make these calls after the financial results, on the call yesterday elon musk is another pie in the sky dream. he will have a self-driving car on the road by the end of it year. well, you know, what do you make of that, come on? i guess if you get one car on the road by the end of this year, okay, you were right. but i don't think that is what he is really talking about. >> elon is a dreamer. this is how tech guys are. they think big, make all the people behind them work extremely hard to catch up with dreams. that is how innovation works. if you don't have big dreams, he is thinking retiring on mars. another company, spacex is building spaceships and facilities to go retire on mars. you want people like this to be dreaming big. look what he achieved. now electric cars are a norm. we accept the fact they will take over our roads.

we're talking about self-driving cars on the roads. maybe not this year, maybe next year but still, these are things which elon has helped accelerate and done a lot of good for the world. give him a break over here. let my friend dipak retire. stuart: mark zuckerberg dreamed big. he wanted to take over the world and he did. you don't like him. >> because he is evil. stuart: i will leave it at that. evil. nasty word. vivek, come back soon. thank you very much. >> all right, my friend. stuart: we'll talk about former starbucks guy, ceo, howard schultz and his possible 2020 run. listen to this. >> if i ran as a democrat which i would not do, i would have to be disingenuous, given the platform that they are moving towards, which is a level of government takeover of health care. government takeover of free college for everyone. a job for everyone. which tallies about $40 trillion on a basis of a $21.5 trillion

level of debt. stuart: you know, i think he is talking doug schoen's book, isn't he? doug schoen is a moderate kind of democrat kind of guy. he is a former clinton pollster. is the author of the book, collapse a world in crisis and urgency of american leadership. mr. schultz is, your kind of guy. >> he is my kind of guy doing something i wishing he was not doing. i'm working full disclosure for michael bloomberg as i have for about 15, 20 years. stuart: ah. >> my fear, as mayor bloomberg has said and others is that mr. schultz, however, well-meaning, however good his platform, will ultimately divide the democratic vote, the anti-trump vote, and facilitate trump's election. stuart: but surely you democrats are all in favor of what is best for america and what's best to america is is centrist who understands how to run a business and how to run the

country? >> if howard schultz was the democratic nominee you would hear me being most enthusiastic about him but the core of his principles i heard of 60 minutes, are those of mainstream moderate democrat like me, two democrats on the ballot, one trump, means victory for the incumbent. stuart: democrats have marched so far to the left -- >> i agree. stuart: you got to have a guy like schultz come outside of the party, look, you guys, this ain't going to make it. >> if an independent is going to win he has to borrow ideas from both parties. so far, whether that tape or his "60 minutes" speech, article in "usa today," i have not heard him embrace any at that additional republican arguments like balanced budgets, fiscal discipline, reining in welfare around entitlements? let's wait and see, but so far he is a independent in democrats clothing. i worry that this will just help donald trump. stuart: let's take michael bloomberg off the table. >> sure.

stuart: i know you work for him. >> i do. stuart: he is considering a run within the democratic party. >> that's true. stuart: put it aside. your only hope as a moderate, old line democrat is joe biden. >> at this point if biden were still to run, it is still an if, yes he would be a strong candidate. i worry schultz and biden might get majority of the vote, in so doing, reelect donald trump. stuart: you're still playing that theme? you don't think biden could win on his own? >> i think he could. it would be easier without howard shultz. in fact biden is now up 12 points. if schultz is out of the race, i ayee agree, schultz has a distinctive appeal, but much more to democrats like me than to republicans like you. stuart: don't put that label on me, lad. couldn't, isn't this supposed to be the year of the woman? kamala harris, elizabeth warren, and others? >> yeah. stuart: you don't support them? >> oh, i certainly support the idea of a woman on the ticket.

i'm not sure yet which woman i would support. kamala harris is just launching her campaign. elizabeth warren, again just launching their campaign. there are a few things i heard from kamala harris i like, others not so much. elizabeth warren with her radical redistribution ideas, i find abhorrent. so we have a long way to go but i will say this, the best hope for the democrats is to nominate a moderate, centrist and have a woman and or a person of color on the ticket. stuart: somehow, get mr. schultz out of the race. >> get him out of the race, so he doesn't divide our vote and reelect president trump. stuart: thank you. >> thank you. stuart: doug schoen, see you later. we will have much more on mr. schultz in our next hour. i will talk to bret baier. i say schultz completely shaking up the entire political system, he certainly dominates the headlines. let's see what brett has to say

about that. i call it the new cold war, america versus russia. it seems to be taking hold in venezuela. i'm wondering how far putin would go to protect his interests there? general jack keane, military guy, with me next. check the big board. we've come back nicely. now we're down just 50 points. 24,961. that is where we are. we'll be right back. ♪ ♪ ♪ the new capital one savor card. earn 4% cash back on dining and 4% on entertainment.

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♪ liz: former reagan economist art laffer says he is optimistic about gdp in the next few quarters despite a projected drop in the economic growth rate. roll tape. >> i don't think that gdp number in the fourth quarter is really a bad number at all and when i look at the long-term trend of this country, with the policies in place i'm still very optimistic. the policies are all in place. you have to let them steep. i think the steeping process is going to occur. we had a very nice year last year. i think we'll have a good year in 2019 as well. i wish the shutdown hadn't occurred. i think that hurt somewhat on the gdp but you know, i think it will pick back up. i think we'll have a nice year in 2019. ♪

stuart: now this is a strange market because the dow jones average is down 30 odd points but look at the s&p, that is a broader indicator, that is up 18 points. 2/3 of 1%. look at the nasdaq, up 94 points, better than 1.3%. so you have a strange looking

market here with only the dow, of the major averages down. everything else is going up. that rally really does continue. check out general electric. that company is making money. it is on track for the biggest one-day gain of march of 2009. ge up 13% at 10.34. let's get to venezuela, opposition leader juan guaido in an op-ed in "the new york times" today, says, we have had clandestine meetings with the members of the armed forces and security forces. military withdrawal of support from mr. mr. maduro to enable is crucial to enabling a change in post. we have reports of gold being flown out of caracas on a russian plane. that is the story. general jack keane is with us. always a pleasure and we need you right now. how far would russia go to protect its interests in

venezuela? how far would it go militarily? >> i don't think russia will to to war over venezuela. i mean, they're more than an ocean away. they would have great difficult, challenging, using venezuela as a proxy, challenging the united states. venezuela is certainly in our backyard. but nonetheless, venezuela is strategic asset to russia as it is to china. here's why. they have been investing in this for over 10 years now, because, they don't agree with the international order, post-world war ii, 70 plus years of preventing major conflict and they don't agree with this significant point. the global hegemony that the united states has enjoyed since the collapse of the soviet union in 1991. being in the western hemisphere is about pursuing their global interests worldwide and also weakening the united states' position in the western

hemisphere. so they will do everything they can do, short of actual military conflict. they're bringing in security forces, obviously to try to shore up the regime as best they can. these security forces are private contractors. translation, army without their uniforms, dressed as private contractors, the same force that attacked a u.s. coalition base in syria, and we killed in excess 200 of them within the last year. so -- stuart: now, maduro, i'm sorry, not maduro, juan guaido was writing in "the new york times" there have been contacts with the venezuela military about easing maduro out. that is promising, isn't it. >> that is hopeful. the president hasn't said so but president has made a decision to do everything we can to support the regime change without

conflict. and that is what is taking place here. and if, if maduro stays, and the regime change doesn't take place that will clearly strengthen russia's and china's position, not only in the western hemisphere, but in the pacific where china is intimidating, coercing our allies, and also with ukraine and syria and eastern europe. it will strengthen their position. i think the military is is the crucible here in terms of when maduro stays or whether he goes. and clearly guaido is what he is doing in those private sessions giving them absolute guarranties, stuart, that there will be no recriminations, they will have amnesty, they will be permitted to go on and live their lives, even though they have been leaders of a repressive regime, even though they likely committed war crimes. that is the way to move these military leaders who are

fundamentally corrupt. maduro's given them money to earn their loyalty to be sure. and, i am cost that the united states is also playing a role here, not publicly but privately and i'm confident that the central intelligence agency is heavily invested as well. stuart: you're the, you're the one who first mentioned i think the idea of like the philippines, marcos, eased out, bloodlessly. everything is fine. something similar could be going on in venezuela. i think you have been hinting at that. >> yeah. work a deal, when maduro really feels the pressure, show him an exit, that gives him exile with no recrimination, nobody will pull him back into venezuela to give him a trial. that is what we did with ferdinand marcos. the reagan guys organized that. but we had closer ties with marcos than what we have obviously with maduro. we would have to use a third

party, somebody in the region, closer to him than us, but also wants maduro gone. stuart: general jack keane, always good. thanks for joining us, sir. see you soon. >> good talking to you, stuart. stuart: super bowl, yep, sunday. so let the betting begin. i want to know what the popular prop bets are going to be and how much money are we talking about here? i have got a vegas oddsmaker next. ♪

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stuart: the story on the market is this. dow jones average is down. s&p 500 and nasdaq composite are both up very nicely, thank you. overall the rally continues. >> >> look at h&r block. they're down big time today. 7% down. goldman sachs says, sell that stock. apparently some people are. the super bowl, number 53, patriots against the l.a. rams, sunday afternoon, sunday evening. our next guest says 80% of the money starting to bet on the game comes through today through the weekend. leave late to bet. on your screens we'll put up, call proposition bets. i call them oddball bets for the

game, such as, will the game go into overtime? will there be a successful two-point conversion. not likely to bet on that one, tell you now. there is variety. liz: look at that. stuart: oddball bets. joining us is south point casino sports book oddsmaker. vinnie, welcome to the program. >> great to be with you, stuart. stuart: we just had the, i call them oddball bets. >> all right. stuart: we put them on the screen? is this how you make money? do you make any money with those kind of bets at all? >> i will be honest, stuart, these proposition bets have become so popular, our place at the south point hotel casino and spa, we have over 300 different ways to bet the game. wasn't so long ago there was about a dozen or so ways to bet it. they have become so popular, they account for about 50% of the betting handle. stuart: whoa. >> on this game. let's remember this, last year

in the state of nevada, there was $158 million wageredded on the super bowl and the various proposition bets, up $20 million from the year before. stuart: i could see how someone who doesn't bet, gamble that much, would come in and place a couple of bucks on a coin toss. i think that is how you get the, the casual gambler to come in. that is how you do it, right? >> yeah. that's a great point. there are three different ways to bet the coin toss this year. which theme is going to win it. you mentioned heads or tails and thinks like that. that is a great way to introduce some folks casual fan. there is something for everyone in this game which makes it the single-most wagered betting event of the year. whether you're a casual fan, or a seasoned professional, you will find something here on the big game on the big weekend here in las vegas. stuart: hold on a second, vinnie, i want to listen to what

fanduel ceo told our maria bartiromo about betting on his app. roll tape. >> if you're literally on one side of the bridge it will let you bet. if you're on the other side of the bridge it won't let you bet. >> he is on the wrong side of the new jersey bridge. >> i am happy to escort you to new jersey. stuart: that is guys in new york city, getting a on bike going across the george washington bridge so you can gamble in new jersey on the super bowl. you will see a lot of that. >> the thing about that, it is not really different anywhere else, here in the state of nevada, you must be in the state either to wage live or on the mobile app. similar to other jurisdictions. by the way we tip our cap to the folks in new jersey and other six jurisdictions around the country that have some form of sports wagering, the obviously question becomes will that impact the handle here in nevada negatively. not so what it is doing, creating more fans, more betters. there are still folks that want

that las vegas super bowl experience. stuart: i'm betting on coin toss, vinnie. hard break. coin toss is my bet. >> we always need tails, stuart. stuart: more "varney" after this. off, and neither will i. and i treat my mbc with everyday verzenio- off, and neither will i. the only one of its kind that can be taken every day. in fact, verzenio is a cdk4 & 6 inhibitor for postmenopausal women with hr+, her2- metastatic breast cancer, approved, with hormonal therapy, as an everyday treatment for a relentless disease. verzenio + an ai is proven to help women have significantly more time without disease progression, and more than half of women saw their tumors shrink vs an ai. diarrhea is common, may be severe, and may cause dehydration or infection. before taking verzenio, tell your doctor if you have fever, chills, or other signs of infection.

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stuart: let there be no doubt, alexandria ocasio-cortez is the rising power of the democrat party. less than a month in congress she is now co-authoring a major piece of legislation. hold onto your wallet. she and massachusetts senator edward markey are going to put forward their version of the green new deal. together they will write legislation that squeezes the rich of the pipsqueak. taxes the oil and gas industry out of existence and only has truly massive energy spending -- that is the greener deal. it confirms that the democrats

are in a wild swing to the far left in a 29-year-old socialist who has never run an enterprise of any kind is leading the charge. this greener deal is indeed revolutionary. imagine, no more fossil fuels, chileans in new taxes, trillions in new government funding. it's not that it's likely to become the law, but that the democrats are even considering it. one more point. climate change is now front and center in the democrats wanted to run a campaign. it's not an issue that is move the needle in the past, but ocasio-cortez and senator mark to bring passion to the green debate. we are going to be discussing the weather for a long time to come. amazing, isn't it? a young radical comes out of nowhere, dazzles her party, teams up with the veteran senator and offers a revolution. ain't that america? the third hour of "varney & company" is about to begin.

♪ stuart: you heard what i have to say about that young lady ocasio-cortez. in a moment, trump campaign 2020 advisory board member. check the big board all the way back to a mere loss of 49 points. if you check the broader market, the rally continues. s&p, nasdaq both up nicely. how about facebook letting the great earnings report. record profits even though they were rattled by scandal after scandal didn't make any difference to the bottom line. here is scott martin, fox news contributor. that's my point, scott. inc. of all these scandals, all these privacy concerns and nothing happens to their bottom line at all. they are untouched. >> nothing but good things. if people were concerned about the privacy issues, they have a

funny way of showing it. that's really good as it recovers from the big slide in the fourth quarter, specially if you look at advertising revenue which is a huge part of company revenue. stuart: they've got to .7 billion monthly users. that number has gone up. i would've thought the number would go down with all the bad publicity but it went the opposite way appeared to .7 billion is half the worlds population. >> i'll tell you what's interesting about facebook. they are just beginning to monetize instagram, which is another great platform so wait until instagram gets its legs. i will be a big component for facebook. that's saying a lot. a trend story for you scott.

almost 60% have cut the cord with cable companies. i find it very hard to believe. what do you make of it. >> it does seem high to me, too. that may be but the streaming services who is great. netflix is out. amazon prime has a great service to appear in i think that's going to be the trend here. we still like netflix. we own it. a nice balance off of the low around christmas in december. i still think netflix has a ways to go. stuart: is netflix the winner long-term? >> long-term that's a good question. for now yes. they're going to face competition. netflix definitely knows what they're doing. they are getting serious about their products and about their

distribution but they're going to face some tough competition very soon. stuart: another trend story. the site and mastercard reported very strong business. lots of people using the plastic over the holiday season. i see that as an economic indicator and an indicator of strengthen the economy. would you say? >> i do. transaction volume on visa on the high analyst expectations and a little bit of a cautionary tale from visa on the consumer going forward. we'll see what happens about. maybe that is general sandbagging after great q4. we've been holding out for some years now. besides just study. stuart: mastercard has gone straight a period of six bucks today. you don't own mastercard to you? >> we won't. the worlds largest. stuart: scott martin, thank you very much. you better check amazon. they've announced new funding for computer science classes

than 130 new york city high schools were half of its new hq two will be located. amazon selective schools are already well-funded and scientific centric so to speak with names like bronx high school of science. nothing to do with the stock price. they report earnings "after the bell" today. as you walk up to the earnings come amazon stock has gone great. 49-point loss for the dow jones industrial average. a very small part of the stock market. transfer the broader s&p is up nicely. remember just a few weeks ago people were thanking the stock market is rolling. it is not to slide down the emergency chute to get out of the market. watch out. there was that an family food over the shutdown. as a panic attack and the sentiment coming out of some analysts. if you got out then, if you're

missing is the run up so far. this was unexpected to see this in january. stuart: five stocks which are part of the dow 30, they're all down big time and they have taken it down 105 points. liz: bowling, dupont, visa, goldman sachs and mcdonald's. stuart: absent those five stocks, the whole market is that. the rally continues. i think we should point that out. >> sometimes investors have goldfish memories about where the markets going to go. stuart: you have these one-liners you come out with. >> i've been covering this for 30 years and not dating myself. stuart: ladies and gentlemen, more one-liners like that on evening at it. liz: 6:00 eastern time. stuart: venezuela's nicholas maduro says in a u.s. invasion would do worse than vietnam.

that isn't stopping the president, our president from doubling down on support for opposition leader guiado. we will also get into the green idea which congresswoman ocasio-cortez and senator edward markey are going to propose a green new deal in legislative form. we have a trump campaign 2020 advisory board member to talk about that. democrats have offered $0 for border barriers during these new talks. what happened to good faith negotiations once the government was reopened? high-level trade talks between the u.s. and china propping up today. the president is set to meet with china's vice premier later this hour and he says and meeting with xi jinping, chinese leader is in the works. a big day for your money. ♪

stuart: i want to bring everybody up to date on what's happening in the crisis in venezuela. president trump is double down on support for the opposition leader guiado, literally calling in to congratulate him for sending to the presidency. he's clearly archive. protests in the country have continued to claim lines, said the remains defiant -- my editorial top of the hour. congresswoman alexandria ocasio-cortez and senator edward markey will introduce a green new deal. come in, advisory board member president tribes 2020 campaign. i say this is absolutely typical of the democrats being led away out there to the left by a very young socialist. >> i'm not surprised by what is happening. i never thought i'd say i agree with mike bloomberg here.

i really highly doubt we'll go through congress and pass. i don't think it's going to happen in a something like this were to pass, we would see economically the drastic shift in the labor market. and we wouldn't deal to pay for it. stuart: doesn't it astonish you that someone who's been in congress for less than a month i think teaming up with veteran senator to produce what is revolutionary ledges mission. i don't think for one moment it would pass, but it shocks me that such a newcomer can have such an influence on the democratic party. >> i think it shows the weakness of the democratic party is something we've been talking about for a few years now. they have no strong leader and we see that like alexandria ocasio-cortez is coming in and shaking things up in the party and getting a lot of attention that leaders are not getting any more.

she came in and broke the mold by defeating one of their leaders last year at the primary new york. >> speaker pelosi just said there will be no wall money in the budget legislation. she also says protection for dreamers in exchange for a wall is a nonstarter. i don't get that. why are the dreamers and the daca people going to suffer because of an because of entrenched events. what happened to we'll negotiate once it's over. >> nancy pelosi is showing us out to be a hypocrite. she did this with 800,000 government workers that she claimed to care about the refuse to come to the table at the table at the tabasco games and vacations and all the other thing she was doing. she's claimed for years to care about them want to make a deal for them so she is refusing to make a deal and the reason why is because she's letting her personal hate and political heat for president getting between

the fact that she has a job to do and she's not doing that. stuart: would you describe yourself as a conservative? >> absolutely. stuart: have you always been a conservative? >> i have. stuart: you know what they say if you're not a liberal by the age of 25 you've got no heart and if you're still liberal at the age of 40 is got no head. with that applied the way around with conservatives? >> you know, i think conservatives have heart and brain. i don't know about the democrats are not judging by what they're proposing with things like the green new deal at the very least little common sense. stuart: we will leave it at that. madison, gesiotto, thank you for joining us. take another look at tesla. a profitable quarter. it's got three points $7 billion cash on hand. seems like a lot to me. why is the stock down? >> because the chief financial officer resigned his turmoil and

turnover in the top ranks. nearly two dozen people have left in the last year in senior management. 40 overall over the last year. tesla is chugging along that there is the whole debate about the cash on hand to cover the bond payment. they are still $50 away from that breakeven point where they would have to pay cash. they're underwater now. stuart: but they've got the cash. >> a quarter of the cash on the balance sheet. they also have about $2 billion in more bonds that are getting redeemed in the next two years. yes they have the cash on hand, but a big chunk, a quarter of the cash on the balance sheet. stuart: i still think the success depends on selling model threes. lots of them. liz: at a profit, right. stuart: thank you, lizzie. researchers at m.i.t. showing off a new robot. it can play janke, uses a camera

for eyes, two small prongs to fingers to gently remove janke pieces. it determines which to move by just touching them. homeowners with grass. i guess that means as a lawns. i robot, the roomba vacuums your floors, while it made a lawnmower called the i robot terror. there you go. robot style. that's a plot of land in bel air, california on sale for a record amount of money. next we'll tell you how much it's going for. get this, no houses included. it's a big number, too. did you guess which city in the world has the least affordable housing for the ninth year in a row? yes, happen to know this one. will tell you after this.

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world. i think it is the most densely populated. it is certainly the most expensive. according to an urban planning consulting group, hong kong in the templates affordable city. property prices 21 times median household income. that's expensive. the most expensive home in this country on your screen come asking price $159 million. however, it was up for auction in the auction price of a cop for both allows a 42.5 million. 11 bedrooms, 22 bathrooms. it is still the most expensive house option in u.s. history. it's all about big bucks today. that is the plot of land in bel air, california, which is selling $450 million. you've got to supply the house. it's just a plot of land. 11 acres. great view, though. the house would be extra. on your screen as a rendering of

a home that could be built there. you can build one that big or you'll have to build three smaller ones come 60,000 square feet apiece. that's quite a piece of property. maryland has blocked that spot at the number one place for millionaires. it is now number four. of course were going to ask you to guess which is now number one for millionaires. i'll tell you in a moment. the starbucks guy, howard schultz with fox news anchor dana perino, she asked him if president trump should get credit for a very low unemployment rate and rising wages. he said no. we'll deal with that in a moment. also talking to a man who wrote a piece titled the state of trans union. he says those i should be taking better care of the dreamers. he'll make his case in a moment. ♪

stuart: down, but the rally continues over all because now just look at the s&p 500. down 60 on the dow, up 18 points. two thirds of 1% on the s&p and the nasdaq very strong game they

are. i think that it's up one and a quarter%. a minor loss for the dow everywhere else. speaker pelosi did a very short time ago that protection for the dreamers in exchange for a while, she says that's a nonstarter. our guest today has a piece in the journal that deals with the subject. dan hemminger is with us, editor for "the wall street journal." i don't get this. i read your article and you're saying the dreamer should be taking care of. both sides of the aisle should be taking care of. wife nancy pelosi so intransigent, not helping the dreamers because she won't hand over a wall. they make it sound like she's afraid trump might actually do some name big with the dreamers and then she's going to be put in a spot and try to neutralize that. don't even think about trying to dreamers. the dreamers i think are the big political price here.

if you look at most polls on the subject, people want something done about the dreamers. they also want something done about border security. that's where the broader swath of people are on these issues. if donald trump were to stand here at the state of the union speech and announced that he was going to propose a path to legalization of dreamers and path to citizenship, the chamber would erupt and then the question is why would one person in the chamber do who happens to be sitting right behind the president is she going to keep sitting there. save the dreamers. pretty much done except he's the one who initiates it and i think you would get some substantial form of order security after

that. stuart: i think you get substantial report from the republican party. not the hard-liners, the anti-amnesty people. you wouldn't get them, but you get a whole swatch of democrat singing yeah, what's wrong with that deal. what is wrong with the deal? border security for the dreamers. >> keep in mind 40 new members of the house, democratic members of the house of the house to one in formerly republican districts. they themselves are kind of on the bubble because they come from republican districts. any number of them singing they would like to do something serious about border security. mcgee cheryl for new jersey and so forth have been talking. jon tester of montana and suggest that something has to be done. i think trump took the initiative on the dreamers he would have a hold old load of democrats coming on board with border security. stuart: he has been treating about as. let's call it a call it awol.

awol is a wall. he's literally saying that. if he follows your script, he would stand up to the state of the union address when he would use the law. they push donald trump off the wall. but honestly, i think the core of his face out there, which he believes once a wall, what they want is two things. something done about the rule of law on the border. they've been saying that for four years. the other thing is they want a really significant good faith effort to achieve border security. i don't think that necessarily means a leakproof wall. but those who do want is someone to show they're making the effort in making the progress on security down there. doesn't necessarily have to be a wallet even with trump space. stuart: with the president proposing it, but nancy pelosi over his left shoulder.

that would be a gigantic political win for president trump. >> i agree. i think he needs a big win right now. there've been some minor things, but he needs some political momentum. the democrats, all the criticism of howard schultz, that criticism is because they think whoever they nominate is going to be able to defeat an unpopular president. the criticism of medicare for all. they think trump is so unpopular. he can't win in 2020. something like this would really put them in a hole in terms of 2020. stuart: do you think nancy pelosi disinvited him to make a speech because she knew he would use it as a platform to really win politically. >> i think she's done not because she wants to entice him come in rate jim and make him sort of punch at her in so forth because they think a chaotic

presidency is an unpopular presidency. the shutdown was a chaotic event. heard trump to some degree in the polls. but now to use this standard the state of the union, the whole world watching to consolidate his base, to consolidate the democrat who want to do something about border security. he would really be on the offensive. stuart: next tuesday night. bigger than the super bowl. stuart: you can spend the next two days body and. dan hemminger, thank you very much. we've got the dow industrials as well. a newsletter coming up. i've got the dow industrials down 68-point. why am i see that picture on the screen? what it all about? we report on the mass exodus of millionaires for new jersey and

of course you got that deduction. the new survey in new jersey has overtaken maryland as the state with the most millionaires per capita. maryland fell to number four. number two is washington d.c. my stay, new jersey despite averaging some millionaires they still got a few left. some news on jeff bezos on jeff bezos come in ahead of amazon's earnings. his personal security team has launched an investigation into the racy text messages he sent to lauren sanchez, an l.a. news anchor. how did they end up in the lap of the inquirer. looking to ms. sanchez is a possible leaker. check the big word again, please. we are now down 56 points but that's only a tiny part of the story. nasdaq, s&p up. stuart: strong market gains today. we've got about five down stocks that are taking the dow

industrials down and not affecting the rest of the market. trevor mcdonald, goldman sachs maccabee in the green. the rally continues. let's get to the bitter, bitter cold in much of the country a week. it's halted production at 11 general motors plant. let's bring in ray bogen, in minneapolis. i thought that minneapolis is going to warm up today. it doesn't look like it's getting any warmer. >> no, you know, it was supposed to warm up today. from negative 25 to zero degrees. we didn't get to warm up and it stayed all morning. early this morning i saw a picture of the thermometer at the national weather service in minneapolis and has had negative 30 degrees. the windchill has been well below that around the state. up north more towards the

canadian border there have been wind chills in the negative 60s and that's cause the problems. for instance, excel energy had to put out an urgent statement to some of their customers because they were concerned about aghast shortage. there were asking some areas to keep them at or below 60 degrees and not use any other appliances that run on gas. in fact, some customers may have run out of gas altogether so they went to get hotel rooms for anyone who might have needed one. we've also seen mother nature in lake michigan and lake geneva there have been some freezing. take michigan you can take a look and there was some steam coming off the top creating quite a spectacular view. in lake geneva in march during the summertime is a beautiful lake where you can go boating, you can get a nice restaurant along the lake there. not right now.

it looks like it is almost big enough to go i.c.e. skating on top of that. so it's really taken a strong grasp with this bitter, bitter dangerous cold. stuart: i hope the cold goes away soon and you can get out of the cold. we appreciate it. good report. i think we should check out this. cover of today's new york post. by the way, the cold snap has hit new york city in the post headline is it's colder than the blog see how's hopes. stuart: the socialist is finally putting hands in her own pocket. back to your money. some individual stocks. tesla, the stock i believe is down just a fraction, not very much. dow down $3, 1%. enough cash on hand to pay that on debt.

but one of the top executives has gone, he slept. that's another executive leaving the company and that's why the stock is down this morning, down three points as we speak. general electric on an absolute terror today. nice boost from their earnings report on pace to have their best day in about a decade. it is up 14% ge back at 10:45. qualcomm shares down after german court did for patent claims against apple. qualcomm is down. apple is a $3 at 168. another headline for you. according to a bloomberg report, and considering herman kaine for a seat on the federal reserve board. we've reached out to herman kaine for comment. haven't heard back yet. that would indeed be a bombshell. i think i would make the fed business friendly. liz: interesting development there.

stuart: the fed watchers will go bananas. >> herman kaine is over flushing my bond -- refreshingly blonde. stuart: president trump will meet china this afternoon that the president has a meeting with xi jinping is in the works. a lot of news coming thick and fast. and bret baier, while he is coming next. ♪

liz: starbucks sitting at an all-time high. despite howard schultz running as an independent and fears that democrats are so you'd boycott starbucks because it's running as an independent. stuart: i heard exactly the same thing but democrats are angry at mr. schultz because he might split the vote and put trump in for a second term. so angry they were talking about boycotting starbucks. transfer that is not the impact at all. we are here in starbucks with breezes to deal with potentially angry customers who are matter what howard schultz as saying. that's not hitting the stock either. stuart: starbucks on your screen, record high despite mr. schultz possible

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stuart: a high-level trade talks are wrapping up today. president trump is set to meet with china's vice premier this afternoon. bret baier as it does come a host of special report on the fox news channel. seems to me we might have some movement here because president trump's talking about a meeting with xi jinping to finalize the

deal. >> i think so. people on capitol hill that there has been movement in this talk that there is optimism surrounding them, but no one is blaming the table and walking out, that there's been incremental progress throughout his something will be announced whether that's today or not until the president meets with president xi we will wait and see. overall everything that's coming out is optimistic that obviously the chinese have been taken in on the chin is this back-and-forth of tariffs has continued. stuart: i don't think a meeting with xi jinping has been formerly a range. i don't think there's a date for great venue for it. it's take place here that's as far as it's gone up in the moment. >> perhaps today you're going to get the announcement that meeting is in the work and they're looking for a day.

i think you'll see some incremental announcement today as the talks wrap. stuart: i watched the stock market because if there's anything positive about china trade, the market usually does quite well. you're in the nation's political capital. you are the politician -- would you make make of former starbucks chief howard schultz who may be running as an independent. he seems to set the political world on fire. >> he really has. he's roasting a lot of people. all the words used around starbucks are quite something. he's stirring the pot. he's got everybody caffeinated. what it is is that democrats are really worried that an independent run will cost whichever candidate on their side the election and hand the election to president trump in a reelection bid. the bottom line however is you have a long way to go and you got to a campaign in the middle and you have substance to talk

about. something howard schultz has been talking about at least in the q&a effort has been concerned about the deficit, debt. we don't hear that from the administration. we don't hear it on capitol hill and we definitely don't hear it on the campaign trail on the left as of yet. so there were things howard schultz could bring into the mix if he chooses to get in that would be unique. stuart: if he gets in as an independent, do you think he would take votes away from democrats or more votes away from republicans. >> i think it could be equal. there could be a trump voters who leave. there could be disaffected people who think democratic party is too far to the left and that's why he says he's running. it's kind of left of center candidate. but what happens is if he gets enough of both pots, throws it to the house of representatives and there's all kinds of mixes

that come out of that. stuart: i just remember ross perot way back when and i think by entering the race as an independent third party i think he threw the election to bill clinton back in 1992. >> i think that's definable. 20% which is what ross perot brought in clearly bush would've won. stuart: i really envy you. you're right in the middle of the most dynamic political life of all. >> we are just starting. here we go. stuart: thank you, bret baier. we'll be watching tonight enough to promise. i'm sure we all remember the massive equifax data breach. 150 million effect to directly. our next guest is working to make sure it doesn't happen again. i don't see any prevention. i don't see any way around these hacks are they just keep happening. i'll put the question to the man. you can't stop it and you know

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stuart: our guest is working with equifax to reestablish trust in the company after the huge pack, data breach i guess you say back in 2017. bill cara with us and this is the man that's going to stop all these attacks in these breaches. that's what you're working on. >> are working on it. good to be here. stuart: let me go right at it. we've had numerous data breaches in just one after another they keep on coming. you can't stop them. >> the points are really good points. give me a second. the truth is last year 50% of companies said they had a breach of some sort. this is not an apple fax story, but an industry. stuart: so how are you going to stop it? >> you remember back in the 70s, 80s and how dangerous

it was they didn't have seatbelts about mobiles for 50 years. what happened was folks realize, think about ford quality is job one they were able to reengineer their processes and to end and create accountability at every point and not supply chain including through suppliers and they were able to make incredible progress. now it is words of magnitude more safe than it was 20 years ago. very similar transformation is happening in software and nuns were going to take the resiliency of software and the security software and make it a heck of a lot better. will be perfect? no. when you can prevent a lot of problems and solve them quickly the experience becomes a lot better. we've seen this in our customers. stuart: vote, it sounds like tinkering. it doesn't sound like a radical new way. >> it is medical. think about when you read the

congressional report about how equifax use to operate. it doesn't operate that way anymore. it started with the board of directors saying this is important in putting a new management team in place including a new cto who's driving incredible changes. what they've done is reinvented how they build software so the end to end process starts the security up front. the way the software was built in the past is at the end someone that doesn't work to your points you have to reengineer it and create accountability. software developers for an accountable for security. they are now. when the whole organization has become accountable you see real changes. as you report early with facebook, consumers aren't holding companies accountable. investors aren't always holding companies accountable. the only way it's going to happen when they say this is important and they drive those changes and we know from working the results are amazing. really dramatically cut down on

the possibility of a breach in the future. you can do that. have you done with equifax? >> the transformation is progress and are doing incredible work. you'll see them leave this field coming from where they were years ago. stuart: i take it all back, bill. i think you're a wonderful guy. real quick question. when i want to check my bank account on my phone or my brokerage account on my phone, i have to login, got it, and then i have to ask for a code number that i can punch in. that seems to me to be a very good method of securing my bank account or my brokerage account. >> two factor authentication and there's so many problems. passwords are hard. they're hard for me, hard for you. the two factor approach has made incredible progress and will continue to see more innovation

and ones that are so hard because it has to be easier for going to use it. stuart: bill karpovich, you're all right. thank you indeed. i take it all back. my hostilities are missing the situation. by the way, moments ago the dow turned positive. we opened at 9:30 eastern, down, but the dow has turned around completely. now we've got a solid rally for the s&p, solid rally for the not dead. the market is up and we're happy. more "varney" after this.

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stuart: back to the headline that rocked it all. bloomberg reports that president trump is considering herman cain for a seat on federal reserve

board. we immediately reached out to herman. we'll see what he has to say about this we haven't her yet. that puts the cat among the pigeons. >> he was reportedly in washington on wednesday. there are two vacant seats on federal reserve board. the issue for the white house is this. you can have strong economic growth without inflation. the fight last fall why is the federal reserve raising rates when there is no inflation, the president took that to heart. herman cain on the board would be a pretty strong choice a business choice on federal reserve board. stuart: the people that run the federal reserve board, is bankers, academics, jay powell is a lawyer. i'm sure the president would love more business people on the federal reserve board. >> it would receipt the conversation what creates inflation. it is demand, not wage hikes. stuart: i don't know whether that is the reason dow industrials suddenly turned higher.

i don't know how investors feel about herman cain on the federal reserve board. >> he would give them what for about money printing. stuart: the dow is up 19, neal, it is yours. neil: would be food choice. 30 years in fast-food, never gained a pound. >> good one. neil: that alone qualifies him for being on the federal reserve. cold weather gripping much of the country. record cold at that. shut down businesses all schools remain closed. all mail not being delivered, so much, much more. mike tobin with the latest in chicago. hey, mike. reporter: neil, warmed up to negative 12. the wind is not that bad. it is not too painful to be out here at moment. that being said if you don't have the right gear, you don't want to be out here. i can't get over the