that same praise. with the next -- >> before we go congratulations america, 52,000 new construction workers, that's more important than the majority. >> kevin kelly charles payne stephanie joanny hands on deck. great day, cease the day even. thanks for joining us have a good weekend. "varney & company" begins right now. stuart take it away. >> good morning maria good morning everyone. yeah, friday february the first jobs day, here question go. blowout, spectacular, any way you slice it. 304,000 new jobs in january. the analyst again got it totally wrong. they were expecting 175,000 jobs. we've got 304. the unemployment rate tipped up to 4% that rate affected by the government shutdown. most importantly, perhaps, wages keep rising at a better than 3% rate. for a month affected by government shutdown, and the layoff of seasonal workers after a the holidays, i call this a very solid report. larry kudlow, the president's

economic advisor he will pass judgment on the jobs report later this hour. i'm sure he'll be pleased. next big story. amazon, the stock is way down, after a its financial report late yesterday. here's what happened. looking back, with amazon had a blowout holiday season. record profit. but looking forward, amazon sees a little slowing from that torrid pace that's the part that's taking the stock down. it is off what about $4% 75 bucks more on that later. another big story, the president held what i would call an extraordinary china meeting right there in the white house with china's vice premier it appeared to clear the decks for a with xi jinping that is progress. and so is china's pledge to buy 5 million tons of american soy bones trade teal would be with good news for the economy and good news for the market. and yes, the dow industrials are become at the 25,000 level. it has been a terrific january. best in years.

why not? profit right now, up 18% from where profits were one year ago. that is strong. and the jobs numbers are helping the dow to another gain this morning. up about 60, 70 points at the opening bell yeah this is the friday edition of "varney & company," and it's about to begin. ♪ >> with president xi -- maybe once maybe twice, and it will all seem to come. but the relationship is very, very good between china and the united states, and the personal relationships are very good for the vice premier with myself and president xi, and with our representatives it has been very, very good we've never had had a trade deal and we're going to have a great deal and never had a trade deal with china. and now we're going to have a great trade deal with china. >> that sounded really positive after a two days of high level talks between the u.s. and

china. more talks later this month in china. as i said, i think that clears the decks for a trump, xi summit. again, with later this hour, larry kudlow on the show i'm going to ask him if we get that trade deal by the march first deadline he'll be on the show right now let's talk about jobs report with economist john, i call it blowout prorts spectacular what say you? >> great number, provides justification for the strong start. we have for the equity market in 2019 that tells me consumer spend willing continue to grow, and with that, profits will continue to expand, and so you could forget about a recession happening any time soon. >> okay. so you agree with me all good and strong. let's bring in james freeman with the wall street journal. now, talk to me about small business. because you have a column on that in the journal. >> that's right. yesterday we got the nfib independent business reported is these are small firms and

looking at their hiring, they actually ramped up more job creation are in january than in december which, of course, was a great month for job creation as well. now we're seeing in a national report across the whole economy, blowing away expectations and i think it's -- it's something of a reality check. not just for the secular stagnation crowd that likes to say we can't grow as fast as we used to already at full employment we can't -- create anymore jobs but also a lot peers in our industry have been writing for the last month and a half about how devastating to the economy partial government shutdown is it shall [laughter] i think you look at this job creation a lot of americans are going to be saying, hey can we have with another one -- [laughter] stuart: well nice to hear that -- >> you mention all of the reason it is great in terms of wages going up, jobs going up. the prime age working force, 25 to 54 those people who have been on the sidelines they're not retired they've been just discouraged. coming back into the market we're back almost to the

prefinancial crisis, preobama levels, of people in their prime working years in the work force. stuart: quick with question to christ, the wall street journal people surveyed economist said is this the first quarter and we're in first quarter with only grow the economy 1.8%. how does that stack up against 300,000 -- >> unemployment report that suggest that this forecast is wrong. that it is too low and we might actually have growth in excess of 2% for the first quarter. as jim said, who needs the federal government let's not forget it is only a partial federal government shutdown not a total shutdown. [laughter] stuart: ruffle some feathers let's have another shutdown. >> to lay people off. with jobs available if we want to move nonessential employees out into the private market. >> you made a very good point about the prime working age population. it had a relatively low labor force parption rate. if we raise that rate back to where it was, say in the year

2000 we can add nearly another 2 million jobs. and that helps reduce upward pressure on wages. j you know as young women entering the work force as well that's helping boost up the labor participation rates, and we like nice round numbers here 100 for job creation, 201,000 jobs on average during that time longest expansion on records don't you love it? and wages up over 3% -- >> i love starting this show on a friday morning like this with this kind of good news i love it. okay. glad you're watching by the way. three dow component reported their financials before the bell this morning. and we've got the number pps high per profit at exxonmobil and the stock is up a become 30. that's 1.8% same story as exxon rival that will be she have is ron they're up 1.6%. and higher profits at merck blockbuster drug brought in over 2 billion dollars in one quarter. they have never seen that kind

of number before. merck stock is up 2.5%. looking good. now this -- amazon yeah. blowout holiday numbers. but the stock is down premarket. its sales forecast for the future, missed the mark. jerry is with us knows about retail than anybody ever before. so why if they're making record profits and they have a terrific holiday period, why is the stock down now? >> well let me say one thing first. there's been a lot of talk after holiday was it tbod or not own mixed messages people looking for a cloud on sunny day so amazon results prove yongd any doubt that it was a blowout holiday quarter or or retail sales and consumer shop, shop heavily didn't care about the shutdown. didn't care about the stock market. they were out there in force. they didn't like old school reare tailers they shopped on amazon. why is amazon down? first of all let's put that in perspective.

there have been down all way to wrap they were two days ago. [laughter] the stock is still one of the best performers over last 52 weeks of any stock in the market. and when you have 105pes a triple digit price earnings ratio, stratosphere expectation cannot always be perfectly match sod they gave guidance that was not for a strong growth is what they've been having so they said they have to invest more like they've always done in order to grow, and stock went down. i don't think it means a darn thing that the stock is down this morning, and a i would expect you get a couple of weeks online no one will remember what happened today or what they said. >> are we looking at a complete transforms of the retail scene so far to immerse online selling brix and about mortar really is being left behind. >> there's no doubt it be it. this is most transformal period in all a of retail but you can make money but being armed merchant when you look at what amazon is doing they're moving away from that -- that model where they didn't make a lot of money, deal

products directly to you so they're becoming arms merchant and most rapid growth was on their web services business where they provide cloud computing other web services they grew 45% and advertising more than double in revenue and when you take a look at the price they did sell and deliver you more and more are coming from third party sellerser a amazon earns fee for the business but isn't responsible for whether seller makes any none or not that was up 27%. during the quarter, and so they've recognized as well, that that's where the future lies. but all of the the market is moving in one direction. and when someone says that consumer may not be helping because macy's did not get results or cigna joulers that's poppy cook numbers have been fantastic and do this moment continue to be so. >> poppy cock he used word on live television good stuff. jerry that was great. [laughter] thank you very much indeed jerry see you again soon. good stuff. >> my pleasure. now moments ago -- secretary of state mike pompeo announced the u.s. is pulling

out of a nuclear treat with russia do we have anymore? >> we expected this to mike pompeo secretary of state saying they're going to provide formal notice to russia that u.s. is withdrawalling from nuclear treaty within next six months or so and pompeo says if russia does not return to compliance that treaty will terminate. now pompeo says that the u.s. stands ready to engage with russia on arm as control negotiations. so we still can have talks from here. pretty much looks like in six months time this might be over. stuart: okay got it that was mike pompeo first thing this morning three minutes ago. let's check futures again please. after that -- i'm calling it stellar jobs report. we're up about 78, 79 points. the nasdaq is going to be down. but that's heavily weighted because of amazon. still ahead, i'm going to ask larry kudlow to pass judgment on jobs report he's on the shot just a few minutes from now. fresh tax the rich proposals from the far, far left.

bernie sanders says increase the estate tax rate to 77%. xangd alexandria cortez wants trillions in new taxes we're asking larry kudlow about that as well. speaker pelosi says no money for border wall no help for the treatmenters -- dreamers i say president trump needs a win here and i think he's going to get it. my editorial on that, top of the hour. next, though, herman cain is he talking a job at the federal reserve? reportedly he's in the running. he's on the show, we're going to ask him it be. and he's next. ♪ the new capital one savor card. earn 4% cash back on dining and 4% on entertainment.

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>> diewmp bank revenue down ouch that hurts down 3.5% that's the stock. eight dollars share how about that? facebook huge pop yesterday, stable today at 167. check am a apple they say they fixed that bug with facetime to offer a software update next

woke and apple is at 167 not much change premarket today. new jersey senator cory booker latest democrat to enter the 20 to race. james freeman still with me. i think he's another voice on the left of the part. >> yes. so still another coastal leftist from the senate getting into this increasingly crowded democratic field. i think what he may offer is a little contrast in tone. maybe a little more upbeat in his presentation than sort of elizabeth warren option, for example. but yes, you're talking about a -- a new jersey liberal democrat backs socialize medicine, you can call it medicare for all even though medicare for none but expenseive efforts to mitigate climate change, so a lot of big government on offer here. >> he's out there on the left completely like that james thank you very much indeed. all right herman cain frequent

guest on the program reportedly being considered for a position at the fed he was the fed chair at a kansas city now there was some years ago now twitter had a field day when they heard this news that is possibly getting job with the fed. of course, twitter remembered his 9-9 9 plan from his presidential plan here are tweets here question go. rates go going to 9, 9, with 9% nine years before normalizing rates. 9% interest rates 9% unemployment. the twitter had a field day. herman cain joins us right now, all right herman obvious question are you in talks for a job at the fed? >> there are -- a number of openings that the president is considering and they are considering a number of individuals and i'll be honored. >> you're one of them. >> honored to be but considered for one of the opportunities that the white house may be considered. >> and you're one of them -- [laughter]

okay. a lot of voting, stuart. let's speculate for a second let's suppose you were offered the job and you took it what would you bring to the fable? table. >> if i were offered the job -- i would try to encourage the fed not to make inflation a fear factor because deflation steve wrote along with another economist, deflation is more of a fear factor than inflation. secondly, i never hear reports about how the fed defines overheating. overheating should be defined, discussed, debated ifs necessary and it should include not only gdp and other economic growth measures but it should also include a measure relative to wages. wages finally starting to move. but the fed reluctantly is going to stay off a rise aren rate

because there's more for inflation than deflation. i believe that question immediate to have a rigorous discussion about the two it's like a car. you can accelerate in a car a lot slower than you can deaccelerate if you slam on brakes. that's what i think that the fed is try aring to balance. i would bring that to perspective which is purely from a business perspective also bridge in wages as a key factor. >> you're talking like a guy that president trump would like to have on federal reserve and by the way if you are do get a job on federal reserve board you enter a form of english to the way the fed communicates because you sir, you speak in bites sound bites. neatly arranged in a single little package. that would be unheard of at the federal reserve. i hope you get the the -- >> that would be -- well, thank you very much. and a about this -- 9-9-9 stuff on internet i think that the people who went to -- wept to twitter and basically

picked out a lot of instances that i use 9, if you were to look at it seriously it's a way of raise aring a red flag to the fed. we, you know, don't be afraid of inflation you should be or more afraid of deflation and what about wages balanced off with growth? it is really that kind of concept. j you see herman the twitter is actually on your side. [laughter] herman -- don't be a stranger. even if you get the job, okay. see you soon. thank you, sir. >> that you thank you stuart. >> i'm in the running look at futures please we're up about 50, 60 points for the dow when opening bell rings. now, look at the big drug makers -- the trump administration making another push to lower drug prices. we have elex azar on the show in our 11:00 hour this morning. got it all coming for you.

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the xfinity store is here. and it's simple, easy, awesome. and our shirts from custom ink help bring us together. we order custom ink to welcome new employees, personalize team shirts, and even for company events. the design lab is so easy to use. we just upload out logo and if we have any questions, customer service is there to help. seeing our team together in custom ink gear is an amazing reminder of how far we've come as a business. - [narrator] custom ink has hundreds of products to help you look and feel like a team. upload your logo or start your design today at customink.com president trump tweeting this morning about the market here it is, best january for the dow and over 30 years we have by far the strongest economy in the world. got it. we covered the video game industry a lot on this program because expanding rapidly but our next guest even industry watcher he says that video game

revenue from it, revenue for video games will drop this year for the first time since 1995. the guy who did the study is with us now. all right pelham i'm not going to contest whether or not revenue goes down i want to ask you why revenue is going to go down. >> two reasons number one because 2018 was such an amazing year with fortnite on the pc scene, and we have read that redemption games like that are tough for 2019 to replicate that that's problem number one. problem number two in hien with a big crackdown on gaming in general, the government is cutting -- yes cutting back licenses, because they're worried about children playing too much games not studying enough and big backlash from parents in china. so these two things combined make it quite difficult for the market for the industry this year. >> what about e-sports? >> this is going to be an also potential headwind. >> when i say e-sports these arenas with 20,000 people watching two teams play fortnite or something, how does that cut into revenue?

>> well because if you're watching you're not playing and if you're not playing you're not spending. >> that schism. yeah. simple. what do you call -- these -- video game revenue what will close into revenue the cost of the game which you buy and the add-ons as you -- >>add-on and we measure the soft ware not the hardware so new downloads you make any end game purchases, and any subscriptions you pay all of that adds in search of revenues as far as we're concerned. >> what was total revenue last year? >> around about 120 billion a huging -- yeah. kidding me 120 billion. >> it is bigger than hollywood. in the game system and entertainment industry in the world. >> didn't know that. maybe down a little this year what 120 billion still take it. >> been a 25-year bull market it is just staggering. >> pelham you come over to america more often please. >> thank you very much sir. appreciate it. the market opens in what -- four and a half minutes. we will be up -- maybe 50 points and don't forget

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this is going to be quite a day, ladies and gentlemen in 20 seconds we'll pipgd out where

this market goes. i'm expecting a modest gain for the dow right from the opening bell. we should be back above the 25,000 level. and remember please -- in the news background we've got a stellar jobs report. and we have got sol progress on china trade. here we go. friday morning, it's february the 1st, ladies and gentlemen and we are up and running to upside there you go 55 point higher for dow industrials. 75 point up. 70 point we'll take it. 25,000 we've made it. so the dow sup about a third of one percent. how about ho the s&p 500? where is that, ladies and gentlemen? this is a horse race. it's down. we'll figure that one out shortly down just a tiny fraction. the nasdaq our predict is down, that's influence of amazon at which is losing sharply. show me amazon please. the great earnings report late yesterday, but their outlook wasn't with great and stock is down 84 dollars per share. and that is really hurting the

nasdaq, of course. okay, and remember -- larry kudlow joins us in just a moment like to say this frequently incase we have a new audience coming on stream at 9:30 larry kudlow joins us shortly who else is with me? john is here, joel shy man is back and so is suzanne lee so an amazing january for the market. best performance by the dow in 30 years. all right joel where to from here? >> things going up this was the best since 1994, 8%, i mean, market back in 1987 was about 13.5 entrepreneurs up 14.4% year to date so we're seeing a lot of opportunity in u.s. large cap growth. people have to remember it is up quite a bit from christmas. we're up over 15 to 20% in small cap and large cap. >> kudos to you joel because you've been king thely saying they would recover and we would go up and you're saying it again now. >> let's not jinx me.

[laughter] okay. stuart: john where to from here for the market? >> go higher let's not forget pe ratios are down from where they were a year ago that's going to help. evaluations are are retractive there's ever reason to expect profits to continue to grow. is that as long as that's the case that's a positive. >> earnings have been speck it can particular earnings growth of what -- 12 to 14% higher than expected is the fourth quarter of last year. stuart: earnings reports that we have received so far they're up -- 18.2%. >> okay very strong number. according to s&p 500 numbers in wall street journal quoted you've taken broader view but yes best month since 2015 don't forget the beauings of the world, united health care and goldman sachs accounting for half of a 1600 point rally for the dow. stuart: that's true. how could i forget this but fed is only hold. less interest rate that's a big positive. stuart: let's get to amazon true blowout holiday numbers. record profit, but the stock is

down 84 bucks. because it's sales forecast looking to the future missed the mark. all right joel -- used to like them. >> would you buy them? >> i own them and continue to buy them i like them and i think that's a good value right now down 4% buy more. >> i thought it was a great record card they crushed it on profit guidance was a little bit weak below expectations but that's because they're doing what they're usually doing a spend back into their business and cap excapital spending reinvest back into the company that's the reason why we have this misguidance and retail margins up above 5% for very first time. huge -- >> margins above 5%. for retail for retail. goode lord. >> not to mention the cloud, other stuff in advertising doubling in that. >> oil l companies exxon and chevron they reported first thing this morning, both of them l did well. both of them are up. all right lonski the economist. >> crude oil is coming down. stuart: how do you make money

exxon and chevron with oil at 50 a barrel? >> you have to be controlling cost perhaps finding sources of oil that are cheaper than what your competitors are paying that's what -- >> okay. very good management. >> so would you buy them joel? >> no. [laughter] okay what's wrong? >> i don't buy dow stocks as general rule we talk about job growth report. the very negative job growth, and among the dow, among s&p there's only a handful of companies that are creating jobs. facebook which you know, came out the other day, hidden secret behind them, job growth is up 41% they went from 25,000 to almost 36,000 so only a handful of companies that are creating jobs among s&p 500. and the dow is negative job growth. okay. challenge that view. because the best performers so far in the january this year, are a small cap rustle had best month since 19 the 87 and financials golds man sachs bank of america and this is based on dmes pick the domestic economy. so why wouldn't you play some of these domestic names that are had mostly on the dow.

>> i have domestic funds and small cap entrepreneurs both dmes soik i have over 120 domestic names. ngt but you say your reason ares because you don't believe in u.s. economy. >> no an entrepreneurial company? >> no 100% believe in the u.s. economy what it was the dow stocks -- that 30 largest so i like this entrepreneurial companies among s&p 500 and i love the small cap enterer entrepreneurial companies that hire workersers that's where you get it not with larger companies >> we have dow industrials five minutes into the session and we're now up 62 point. that's at 25,064 that's where we are. individual stocks mooing. first off, merck doing very well with their cancer drug katruda2 billion in one quarter first time ever happened stock sup nearly 1.7%. how about facebook it shall we're following it because it had had such a big pop yesterday. up a bit more today at 168.

how about apple? same story, nice pop this week. it is holding on to its gain 167 for apple this morning. tesla, under a lot of pressure recently. holding right around 300 dollars per share as we speak. don't forget starbucks, hit all-time high despite howard shuttle maybe running as independent for the presidency that's annoying shall we say for some democrats. okay. and any minute now we're joined by larry kudlow so let's talk about the jobs report before he arrivedded on the set. first of all, let's characterize it. i say it was spectacular and stellar and you say about -- >> i think you're exactly right perhaps one of the tiny blemish to rise by unemployment rate but that rise to 4%. is mostly the offshoot of the fact that we have an increase in labor force participation. >> okay. joel. characterize the jobs report. >> love the job report. we're seeing a lot of growth

across the board again, mostly small cap companies and handful large cap. love the report. >> i believe larry kudlow the president economic advisor has arrived right in front of our camera here's the national economic kowj director he just getting microphone on we're just checking to make sure he can hear what i've got to say and i'm sure he'll be very happy had to hear that our people here -- there we've got it. okay larry. [laughter] let's see a smile please. because i -- [laughter] you know what's coming. i was -- >> doing very well. stew you're doing very well. sorry started hold those wonderful thoughts thank you very much. stuart: let's move on if we have 304,000 new jobses last month, and we're averageing what is it 241,000 new jobs in each of the last three months yes. >> surely -- that means that economic growth in the first quarter is going to be better than the 1.8% we hear

banded about. what say you? >> probably could be -- it is hard to know. they're going to be some glitches with with the shutdown and so forth. but you know, these are spectacular jobs numbers. and it is just so interesting to me people keep talking about recessions and there's a general gloom and doom and pessimism it's not so we've talked about this. the economy is very healthy. the president was tweeting out this morning i think correctly. the usa is hottest economy in the world. the tax cuts are working. the deregulation is working. the opening advantage is working. the trade reforms are working. we're hitting on all cylinders, you know on unemployment report, plus 300 as you said you have a revision 240 some odd thousand average for three months, that is just spectacular. year on year, stew, we're growing employment at 1.9%. if you tack on one and a half percent productivity which is

kind of where we've been moving you've got an economy who is potential is now moving right through, 3% at an annual rate so -- whatever happens quarter by quarter, i think our three percent growth rate is intact i think we're going to surprise a lot of people. my advice to my friends who are pessimistic my advice to my pessimistic friends and i have a few take over for the change not always the under but the over. >> you looking at 2019 economic growth gdp3% growth. this year -- you sticking to that? >> i'm the sticking to that. no reason to shift another one, the hourly wage 3.2%, but more people are working more hours okay, hours worked was up 2.4% so i use this thing as a rule of thumb when i was working new york and so forth. labor income you know, factory

workers production related income as a good proxy is about 5.5% take off 2% or less for inflation, you've got real wages rise aring above 3%. those are big numbers. really big numbers which showed the strength of consumers and again, on the production side the supply side of the economy, the business side we're watching business equipment production up 7 straight months if about eight 9% annual rate so i think the capital good investment story is also in tact. it is a very good picture. any way you slice the pie, as henry used to say, this argument is bolstered by the fact that it is actually true. the numbers proven. >> here's one possible negative. you can't find enough qualified people to fulfill jobs that are available. >> well, look, that is something to focus on and you know we have initiatives through that. particularly ivanka trump's

reskilling initiatives reare training initiatives a lot of private companies are doing it on their own which had i think is a good thing so you're going to try to meet, you know, the actual business skills necessary not something that's particularly academic. but i think, you know, the participation rates have been rising that's a very good sign. now, for those who were unemployed i think that higher wage rates are going to bring them into the labor force and again, one can't predict but i think that companies themselves both large and small will want to train these folks for the 21st century to be as productive as possible and again i do think that productivity numbers are starting to pick up a lot of people wrote that off. i wouldn't. you know, lower tax rates, more business investment capitol stock productivity that give use job and wages and family incomes and by the way, i want to make this point, very important -- with this kind of labor market

strength more people working, successfully at higher wages is not inflationary. i beg pardon more people working does not cause inflation and that's particularly true with with better productivity. but you have a steady dollar and all of the inflation indexes are under 2%. that's terrific stuff. we should be very careful here inflation is caused by bad money and a collapsing currency we don't have that. what we have is more folks working successfully i love that. that's the best sign of prosperity it is not inflationary. >> can you give us an update on china trade that was that -- extraordinary meeting in the white house yesterday with the president our leading trade negotiators and china's vice premier to me it seemed to clear the decks for a meeting between mr. trump and xi jinping to finalize a deal. it sounded positive. what say you? >> i say you're right, the president himself is optimistic

here. one can never be certain, i don't to get ahead of the curb but you know the the way i characterize meeting on wengdz and thursday they have a good vibe. they covered a lot of ground. very important, ambassadorlight house per suggested that -- we looked both sides looked at more specifics than ever before we're not ready to put it on paper and there's a lot of work to be done and terribly important again i go back to bob lighthizer both sides agree to make any kind of trade deal work, there must be what he calls unambiguous enforcement. that is so important. now, the depths of this was better than we've ever had so looking at ip theft issue and ownership issues.

you're looking at your force technology transfer issues. cyberespionage issues or various commoditieses all of that was discussed we have a nice positive letter from president xi to president trump, vice premier hey, also had very positive words. so the paper, the contracts are not done. there's a lot of work that must happen in the next month or so. the deadline remains as march first that's very important to president made that very clear. in the meeting we had with vice premier, but progress was made. we covered on a lot of specifics and so -- you know, i think it's a hopeful story right now. but much work is still in front of this. >> got it. larry, i want to give you an opportunity to comment on bernie sanders's plan to raise are taxes on parking lot rich specifically much higher state tax. elizabeth warren's wealth tax

kamala harris's medicare for all, xangd ya ocasio-cortez with trillions of new taxes i'm sure you would like to comment on that so why don't you at it? >> look, taxing rich people that's an old saw from the left. it never works. it never works. all you're doing is blunting incentives you know for hard work for investment l for risk taking for innovation that's all you wind up doing. >> would you mind if i break-in for a second i consider myself a refugee for european socialism i was brought up in a country marching down socialist road that wrecked the economy of britain ins the 1920s and i left i don't with like to see our politics based on anger and jealousy and class warfare. i think that's where we are. >> well i think it is a good point. i don't know about how these --

elections and anonymouses in candidate cities will play out but i think you're right. i mean, look at venezuela it is absolutes catastrophe so they taxed everybody and a quality of sorts everybody is poor. and that's not what you want. i mean that's just -- i am a a growth guy. i believe in prosperity. so i don't that. look, the counsel of the economic advisors and the tax foundation have both priced out you know the 70% tax rate, the wealth tax, they will actually cause the economy to slump. we will lose money. we will lose gdp, deficits will grow larger because revenues will come down as far as medicare for all, the cost are are astronomical variously estimated at 30 trillion or more but even there kevin cea did guesstimating on this medicare for all stuff, and it would slash gdp over period of time. it would damage the economy.

and a as i said, with wealth taxes and so forth all you're doing is blunting incentives you're not going to get innovation that makes america great. and just as a factoid, i see people say well rich has to pay their fair share. i've heard that for almost 40 year. my entire career -- you know, just for argument sake, that top 1% of americans pay 37% of all of the income taxes okay. and the top 1% basically pays more than the lowest 90%. so who is carrying the freight here? the most successful are not only paying their fair share but paying the most by or far. and amendments to tax them they will avoid the taxation, and they will stop investing in taking risks, it is a non starter. i don't know who it was -- years ago on another tv show on another tv station, there was a

guy thats used to go on the air, every for many year who used to free market capitalist is best path to prosperity i can't remember the guys name he was pretty good guy and he kind of got that story right. >> can we not stay with free market -- can we not stay with free market capitalism where it works this country -- president trump if i may -- has renovated resuscitated free market capitalism by lowering tax rates lowering tax rates -- not individuals and businesses and look at that result. all of a sudden the economy has come alive in the two years in which these policies have ruled. and we're just getting started in my judgment so i don't know where these people -- pay your fair share what are you talking about? the most successful already pay all of the taxes for heaven's sake why not give them incentive. >> take risk. aren't you glad that i gave you the the flaw to -- to go after it. you missed your broadcasting days. i know you do. because you love those

microphones and cam kra cameras. >> i'm a message guy. a message guy. great to have you on the show larry kudlow thank you sir. see you soon. any meant from here -- >> i love miss comments across the board it was just a lot of fun. i mean, first of all we'll talk about the jobs, i mean, i couldn't agree more in terms of i think this is encouraging news and i think that job growth and the fact that it is not inflationary, i love the fact that he's talking in a positive sense regarding the china teal. across all aspects, and also i think the way he addressed the tax issues i think were very positive so i didn't know until just now that top 1% paid equivalent to bottom 90% so provided a lot of good interesting, optimistic information in terms of that little nugget there. >> i gave him the flaw. why not? cohen. >> i think he's right on target. i also think it worth mentionine have a very, very low unemployment rate unfortunately

in past ultra low unemployment rate proceeded recessions. so in response to a lo jobless rate we're finding companies are proceeding more cautionly with spending and whatnot, and as a result i think there's greater caution on part of businesses will actually lengthen the lifetime of the current economic recovery which had is a good thing. >> got it. so big headline, the rest of the services that they're taking away from interview 3% growth predicted in 2019. that was a headline, and also inflation. yeah 3% growth no inflation he says more people working is not inflationary what caused inflation is what he calls bad money and i think that's true. >> okay i have to move on. got to check the big board follow the larry kudlow interview with still on the upside 50 points higher for dow still well above 25,000. then we've got tesla. launches a model 3 in china, christina on new york stocks

exchange what's going on with tesla? >> they're launching cheaper version are so it is geng to be cheaper for them we know in the past elon musk has complained that sales have been hit hard in china. buzz of tariffs, reason being is that -- elon musk or tesla does not make cars in china they inport them in means they get hit with a tariff they are working in progress right now on building a plant in shanghai. what they are off aing, though, with this new model 3 and i quote this is a model 3 long range rear wheel driver version the crews range of 600 kilometers right now it is priced at 443 which is roughly what i checked online about 64,000 dollars u.s. and this comes a the a time when company really wants to remain profitable this is also other news that came out on wednesday after the conference call they announced that they're changing their cfo. the old cfo he is 56 or is 56 year old he's going to stay on a advisor and elon musk read at

the end of the call threw it in said we're going to replace him with zach, nobody knew about this, nobody knew who he was he was younger in early 30s, he's been with the company since 2010 but took two years off to go to harvard business school so young guy taking over hopefully hing company, you know, you know, turn some green in there and stop burning cash. but always a story at tesla i love talking to them. >> a story every day on tesla, and you've got it. thanks very much christina. now, hulu story there. they're going to start showing on screen ad when you pause a video. i didn't think you have ads on hulu. >> there's a ad supported version a majority of the signups right so -- you know producesserses have challenged me to explain this to you so this is on at this point. you don't use hulu but hulu when you know there are ads so they have four minute chunks of ads that you can't stop which really bothers me.

in middle of an episode i want to stop it basically. but now to get around that web and basically to make it less intrusive less annoying for viewers like me on hulu they're going to create these banner ads so they'll pause a video. but then they'll have a banner of charmen or coca-cola who signed up for this instead of running videos so i don't get annoyed i don't click off or stop episode i continue my experience owned by disney. >> maybe i'll start watching. you've got that, though? >> may be i'll get my netflix back. i canceled it arctic temperatures making people break out puffy canada goose winter coats and now we're hearing that scammers are putting fake canada goose patches on jackets and selling them for great deal of money. i'm not surprised at this actually because -- that's kind of easy thing to do isn't it? >> yeah, okay it is expensive you know how much they retail

for a thousand dollars each. and canada goose you know had a pretty successful ipo a few years ago. i don't know how well they do it in the summer but stock has been quite well. >> loaded you saw them and on the streets of new york couple of years ago. suddenly they were everywhere. >> they never have sales so considered upscale luxury brand and when you have that sort of -- shall we say value in your brand people want to knock it off and sell for cheaper make some money. >> okay i think we can have enough of canada gas an hulu all of the rest of it thank you one and all. check the the dow we're up 63 points. 64, 60 to be precise. larry kudlow on show a few minutes ago headline there. 3% growth is looking for in this year, 2019 all right i just got to go back to china trade for a second. china's vice premier says, yes they will buy 5 million tons of soybeans about my script says per day. >> no, no, no so they said that during press conference

yesterday. by accident because both reverted say nothing it is not per day. 5 a million tons in total. that's on to of the million tons they agreed to purchase after argentina and g20 this was great because you know comien is a largest importer of soybeans they account for a big swath of the market they inport around 30 to 35 million tons a year so if they expand that i mean that's an increase of what almost -- what 20, 30% going tows farmers, but that kind of spending. you can imagine that that will help the agricultural belt here in america. >> let me wrap this up. we're at 25 minutes into the stock trading session. we've had had the jobs report we've had larry kudlow the dow is up. i put it to you first, joel. we started out this friday morning in february the 1st on a very positive note. >> we did and i think, i think it will continue, and if we get more positive news coming out on china front it will only get better. >> john. >> stocks are up. the economy is up. jobs are up and interest rates

are town. i think the outlook is quite positive. you know one of the stories that hasn't been told housing sector stocks are up sharply like 50% to the year to date budge of autostocks up by 20 socket is equity market correctly expects a consumer to keep on spending and drive growth higher. >> what a great start that's what i have to say. joel thank you very much or for that. john thank you very much indeed for that. gentlemen all good stuff. good stuff. now, president trump i think he needs a win on china. and i think he needs a win on the border wall. i think he's going to get both. that is the subject of my editorial known as a my take that is coming right at you at the top of the hour.

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stuart: we're off to a good start on this friday morning. just momentarily, literally seconds away, we'll get an indicator on the manufacturing sector. we'll get an indicator on consumer sentiment. those two reports may or may not actually change the market structure or the change the market gain. have we got the numbers. susan? susan: 56.6. stuart: for what? susan: for manufacturing, tracks inventories, goods moving across the country. stuart: immediate reaction. susan: last month we had the worst growth rate since 2018. when you have a headline referring anything back to the financial crisis people get very, very concerned especially with the market volatility in we saw in december. this is good. encouraging what it reads about the domestic economy. stuart: we just got the university of michigan consumer sentiment. that was strong. a reading of 91 which is a strong reading. let me add it up.

we got a strong reading on manufacturing. a strong reading on consumer sentiment and earlier hour 1/2 ago we got a very strong jobs report. market reacted immediately. susan: there you go. stuart: we're up about 80, 90 points. bottom line the dow is well above the 25,000 level again. all right, now this. two big issues, border security and china trade. the president needs a win on both. of course so does america. first of all the border. the crisis just must be dealt with. the border must be secured. this week a truck driving into arizona from mexico was found to have about 250-pounds of fentanyl on board. that is overdose fuel. it could have killed americans. as the president says, the flow of drugs must be stopped. also this week, the latest migrant caravan, more than 12,000 strong. fox has video of migrants

fighting to get on buses to bring them closer to our border and other caravans are forming. our open border, democrats refusal to even talk about a wall is an invitation to them. try your luck, why don't you? put one foot on american soil, the democrats make sure you never leave. the president needs to win this. i think he will. speaker pelosi no wall, no deal for dreamers looks increasingly like trump-hating intransigence. i don't think the country supports that. as for china trade, looks like the two sides are clearing the decks for a summit between president trump and china's xi xinping and that in itself is promising. china's commitment to buy five million tons of american soybeans is a good start to addressing the china's trade imbalance. it means america has leverage, reading the tea leaves, it looks good for an eventual trade deal.

for a while again, end of last year it looked like the president was in a lot of political trouble. now on this first day of february, the signs are positive on border security and china trade. good for trump, good for america. this is the second hour of "varney & company." ♪ news alert, house speaker nancy pelosi took a hard stand when it comes to the border wall funding fight. roll tape. >> these are protections that exist, i take them away, i give them to you terrellly, you give me a wall permanently a nonstarter. stuart: no deal. brad blakeman, former assistant to bush 43. in my opinion nancy pelosi abandoned dreamers.

i want to know why. >> the dreamers have become a nightmare for democrats. last spring there were government shutdowns, two, relatively short. what they were over, democrats, nancy pelosi demanding dreamer, daca act. they didn't get it. now they have the opportunity to do it what they are doing, abandoning them. president trump said he is willing to negotiate but he can't negotiate against himself. nancy pelosi wanted dreamers in 2018. it is possible to get them in 2019, with comprehensive security for our border and she will not do it. she is negotiating in bad faith. remember stuart, she told the president, open the government back up, i'm willing to talk about anything. she lied. stuart: i don't think her stand can be maintained. that kind of intranssy is against when so many people's lives at stake or certainly being played with, that is why at top of the hour in my editorial i said the president

will win this one. are you with me? >> he is. why? because he is being reasonable. he is not digging in. he not saying my way or the highway. quite the opposite, he said look, i'm willing to come to the table. he is. he has been in the white house since christmas. democrats have given no counteroffer. they said open the government. the president did and they still will not deal in good faith. when you are dealing in good faith, you're open and willing to compromise, you're a winner. stuart: senator, kamala harris declaring for the presidency. she says health care is a right. what do you say about that? >> the rights are enumerated in constitution. i cannot find that in the constitution. if it is in a right, if it's a right they advance in the constitution, then in needs to be found there. if it is not, then you amend the constitution. there is no way, all you have to do is look to the democratic billionaires who propped up the dnc for years, even they say it is absolutely unsustainable. it cannot happen. stuart: let me turn this around.

could you say that the government, that the government has an obligation to maintain the health of its citizens? that is another way of saying citizens have a right to health care? would you go with that, on obligation on part of government. >> and we do. it is called medicaid. we provide health care for seniors and medicare. we provide it for the indigent in medicaid. for those of us who can afford it, we go out in the marketplace, we shop for it. just like we do for everything else we need. they're looking for nanny state, cradle to grave. that is socialism that doesn't work. stuart: i'm with all the way, brad. i'm just a missionary. so are you. brad blakeman, thank you very much indeed. >> pleasure. stuart: before we turn to our next guest, look at the markets, please look at this. we're up 160 points now. we had a very positive jobs report. i call it stellar. we had good news on the manufacturing sector. very good news on consumer

sentiment. you add it all up, low interest rates tame inflation, great profits. susan: does that get to us 3% gdp as larry kudlow tell you this morning this year. stuart: what he said help the market. susan: he said they probably won't play interest rates this year which is market positive. stuart: why don't we play a sound bite from larry kudlow telling me we'll get 3% growth. the roll tape. >> ever happens quarter by quarter i think 3% growth rate is in inexact. i think we'll surprise a lot of people. stuart: david bahnsen, bahnsen group cio. 3% growth. you heard it from the lips of larry kudlow. what do you make of that? >> i said it to larry kudlow. i make of it he is exactly right. 3%, full year growth, 2019. 5 to 5 1/2% nominal gdp growth.

cap-ex and business investment is coming back. stuart: that is a complete reversal of just about everything we heard between october of last year and the end of january this year. that is, we were not hearing that at all. it was all doom and gloom and decline. >> yeah. the issue on gdp is that there is one ingredient that is a big question mark and that ingredient was flying higher in q4 seven, and q1, q2, q3 in 18. that cast capital investment f business confidence drops, capital expenditures bring down productivity that is what the threat to gdp growth is. i believe the trade war will prove to be transsy tory. i pray it will be transsy story. our president needs a deal and god knows china needs a deal. you know how i feel about the

whole war issue. if that gets resolved and the fed is no longer going to be taking credit and liquidity out of the economy the fact of the matter the economy can telephone grow 3%. larry is right. you heard it here. stuart: a lot of our viewers look forward to your performance every friday on morning on the show and you bring with us stocks, you explain why you like them and why you think they are going to go up. first have you been, verizon. tell me about it. why do you like it? >> you know i like verizon because of the fact that they are consistent dividend grower but the reason they're consistent dividend grower because they are very well-run company that isn't chasing all these different peripheral business lines that are indebting them and are threatening their dividend, like their biggest competitor at&t which we sold last year. verizon will be the 5g leader. they have a very low beta. look how defensively they held up during the fourth quarter volatility.

now we're getting paid 4 1/2% as they continue to perform. we're up about 15% since we replaced at&t with verizon six months ago. stuart: all right, next one is glaxosmithkline. why do you like it? >> again, glaxo is also up about 14% last year, and glaxo is a high dividend payer in the pharmaceutical industry and the reason we think glaxo went higher last year they have the discipline to turn down a very cap-ex expensive merger on the consumer product division from pfizer. if they had gone added 6 billion of debt to their balance sheet we wouldn't have been able to go forward with glaxo but actually they're organically growing their dividend. they're in place with it right now and they're a great r&d company. they have ha great vaccine business. great hiv business. we like glaxo as high dividend payer in big pharma.

stuart: good stuff as urge every friday. david bahnsen. we'll see you soon. >> take care. stuart: we have a lot to cover this friday. i say president trump needs a win when it comes to china. i think he will get it. they're clearing the deckses to the ultimate meeting when trump and xi finalize a deal. that is the way i see it. i will stalk to someone who advises president trump on his policy. president trump taking aim at eddie lampert, questioning his motives to buy sears out of bankruptcy. -- warren, says it. stuart: people across the people pay for his advice on gambling. free advice here on "varney & company." we're in the second hour.

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stuart: it is a rally ladies and gentlemen. good start to the month of february. we're up 150 on the dow. 25,150. don't forget gold been rallying nicely recently. it is down two bucks today but still above $1320 per ounce. let's get to the china trade talks wrapping up after two days. here is what larry kudlow told us about those trade talks earlier on this program. roll tape. >> they had a good vibe. they covered a lot of ground, very important. ambassador lighthizer suggested that we look, both sides looked at more specifics than ever before. now, we're not ready to put it on paper. there is a lot of work that must be done. stuart: he was very positive right there. both sides pledged to keep talking, paving the way for a

trump-xi summit. michael pulse bury back with us -- pillbury back with us, hudson institute. >> thanks, stuart. stuart: the way it shapes up after the meeting yesterday it does look positive, do you share that? >> it is positive. of course the most important meeting in the oval office with president trump himself where the premier liu he offered specific things. i would buy a lot of stocks exporting to china. i think it's a very good news. there was a warning though that there is no written agreement yet. it is too early for that. stuart, what i've been telling you for quite some time now, there will be a showdown between xi and trumpp mano y mano for the final deal. that is the important part. this detailed discussion last few days is magnificent. the president deserves a lot of credit for the idea that president she is the key to this

and the two of them meeting will work it out. i think that is the most important thing. stuart: can you take me inside of that meeting f it happens, there is a summit, take me inside of the meeting. will it happen? will it as you say, man -- mano y mano, two people with interpreters going at it? >> there have to be sticking points outlined in red so the people know what are the key things. president xi promised last couple years since the davos speech he is for reciprocity, he is for open markets, he is against technology theft and intellectual property protection. in principle we already have everything at the rhetorical level but documents that the president would sign, with dates, amounts, punishment, what will happen, excuse me, stuart, what will happen if there is an evaluation after a few months and they're caught stealing and

cheating again, all that has got to be in this document. then the two of them as friends say okay, you give a little here, i give a little there, we do the deal. that is what i think is what is coming. i'm quite optimistic. stuart: that looks very positive i got to say but, michael, while i've got you, i want to come back to something you told us a week ago. >> yes. stuart: as i recall you said the chinese government monitor, anyone, anytime, anywhere in the world, any person -- >> including you. stuart: including me. >> with your face. stuart: with recognition. is that accurate? the government of china can do that all around the world to any person? >> no, they're not there yet. their ideal to work on their own dissidents and own muslims first and then to export, either for free or ideally they want to sell the technology for this kind of surveillance, to other dictatorships in the world. stuart: so it is not around the world yet but they're working on it inside of china and that i think is truly frightening.

>> it is artificial intelligence gone wild if you will. stuart: got it. michael, thanks very much for being with us as always. we appreciate it. >> thanks, stuart. stuart: this show has a friday feel, hasn't it. it does. it does. susan: yeah. stuart: we have a treat for you. you can't own it yet but on our plaza we have the 2020 mustang gt-500. susan: nice. stuart: zero to 60 in three seconds? we've got to talk to ford about that machine. ♪

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stuart: three dow components report earnings before the bell. exxonmobil they did well. higher profit, the stock is up a solid 3% there at exxonmobil. same story with the rival. that would be chevron. that too is up nearly what, 2.7, 2.8%. gain of $3 there. better profits at chevron. interesting, oil at 50 bucks a barrel and oil companies making money. how about merck? higher profit because the blockbuster cancer drug keytruda, brought in $2 billion in one quarter. that never happened before. merck is a very big company. a very big gain too, 3.3% up. sony, their profit report disappointing. this as the gaming business apparently seeing a slowdown. tell me more. susan: profit from sony's gaming business dropped 14% in the quarter and that really dragged on sony shares because sony really revamped itself from the hardware business. they don't sell vhrs, anymore,

vhs machines as they're called. they're a gaming entertainment company. they haven't released a console in a long time. ps4 is the at end of its life cycle. they need to revamp. sony as playstation success is proxy for growth of gaming industry. how many people play console, cartridge games anymore? they don't. they download it. nintendo, super mario working for them. stuart: haven't downloaded a game in my life. i probably never will. you never know. you never know. the dow is up nearly, 180 points, that ladies and gentlemen, is a very solid rally. 25,178 there. a group of 17 lawmakers meeting this week, getting together to hammer out a deal on border security and avoid another government shut down. speaker pelosi says, no wall in exchange for dreamers. she will not accept that deal.

now what? we'll ask one of the members of that 17 member discussion group. first we have to talk about a skills gap, we often do, a skills gap. i will talk to someone working, helping companies fix it. i want to know what types of skills the next generation need to learn. susan: lots. stuart: lots. susan: probably socially. stuart: well-said. we'll be back. ♪ ♪

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♪ ♪ she loves you, yeah, yeah susan: goes back to the anniversary of the last live performance of the beatles together. rooftop performance. stuart: welcome to the show, susan. that is fine information. susan: that was for you. stuart: thank you very much indeed. look at this, it's a rally, just for you. dow jones average up 185 points. 25,185. normally on a day like this, big tech companies all going up. not so today. apple up a couple bucks at 168, but amazon down $67 a share. we'll have more on that in a second. facebook is up a buck. alphabet is up five. look at microsoft. i own some of it, it is down 50 cents at 103. just for you two. this is segment i've been waiting for. ford unveiled the 2020 gt500

mustang at the auto show. we have one outside on our plaza in manhattan. joining me, sitting next to me, because it is cold outside, jim owens, ford's performance marketing manager. jim, go at it, sell me that car. >> stuart, you talk about the temperature outside and beatles from 50 years ago, what better place to start than this car. 700 plus horsepower. the fastest production mustang we ever produced. i bet it is warming the plaza out there. stuart: it pose from zero to 60? >> we said mid three seconds, quarter mile, sub 11. on top of that it can go on the world's best road courses left and right, as fast as some of the cars you and i talked about. stuart: what is the demographic? who would buy that? >> the car, those people who are, younger at heart, who want to actually feel that performance. those people who have that love of that visceral noise that comes out of a 700-horsepower

supercharged 5.2-liter v8 engine. stuart: are you saying, mr. owens, that i at age of 70 am too old? >> what i'm saying, it will make you feel like you're in your 30s. stuart: i want one. >> it has dual clutch transmission, as the demographic goes out there, that third pedal, shifting on the car, we have a dual clutch, a legit dual clutch transmission, which is automatic that you can manually shift in the race cars like we race like the ford gt at lemans. stuart: it's a muscle car. >> it is american muscle car segment we compete against. stuart: i thought they were out of fashion? >> like the beatles from 50 years ago today, that car is classic iconic brand. this is the verse carol shelby, original found i of gt350s and gt500s would be proud of day, how much? >> haven't announced pricing. stuart: 70,000 or more? >> what we do right now the

gt350 starts 59,000. that is the gt350 version. we haven't announced pricing on this vehicle. stuart: 500 will be above that price? >> at the point in time we're still working through our pricing models. stuart: will you build as many models as you can sell or is -- >> no. this is limited edition vehicle. like "bullitt quote you see the vehicle racing through there. stuart: is it the newest, best, now pose you areful mustang you ever produced. >> most powerful street legal mustang that we ever produced. that plant produces cobra that run sub 8 second miles. those are not something you can put a license plate on. yes, that is the most powerful production mustang that we have ever done. stuart: when, if i wanted one, when could i get one?

>> for you, we would bring it here. about the fourth quarter of this year, is when we hope it will be in the dealerships. for the first time since the '60s, talking about the beatles before, we'll have the shelby gt350 and gt500 in our dealerships at the same time. stuart: mr. owens, we're glad you kicked off the marketing campaign. i'm sorry about the cold weather. that is why we couldn't go outside. >> i'm so glad to be here. we're firing the car up in the plaza to help warm things up. stuart: take me home, will you. >> thank you so much. susan: you didn't even ask him how much it cost. stuart: yes i did. he wouldn't tell me. susan: come on. >> i can't make that news day, not allowed to do that, no matter how hard i pressed the man he won't do it. >> thank you very much, stuart. stuart: good stuff. goat to amazon, stock of the day i think. stock of the day. they had record earnings, record sales but the stock is down big. better fleckinger, strategic

resource group. he is the managing director thereof. as we speak amazon is down about, looking it up here? susan: 4%. stuart: down about 4%. it is way down. bert you have an been on the show many times. >> fox business exclusive, stuart, got back from niagra falls boulevard, talk to the dean and director of university of buffalo school of development. where whole foods and amazon blew out 115,000 square foot bon-ton store, supposed to do a million and a quarter a week. joe dash, great family owned and operated retailer is blowing whole foods, amazon out of the water. the amazon whole foods is doing less than 200,000 a week. joe dash is doing 350% more volume to his and his team's credit. going to have to close the store. amazon is failing bricks and mortar retailing.

amazon web service this is quarter, 7.4 billion. amazon retail close to 39 billion. but their growth engine is closing. stuart: you're killing me. i don't understand a word you're saying. >> the stock should be up 50 buck this is year, not 300 bucks. stuart: okay. i'm trying to sift through all of that, let it sink in here. >> yeah. stuart: you're telling me amazon is not going back to $2,000 a share this calendar year? >> it is, part of the retail ice age. bricks and mortar, retail is part of their retail ice age. stuart: this is your way of retreating from a forecast you made several times on this program? >> fact-based, fox business news exclusive, failure, jeff bows soes and bricks and more tar team are going over niagra falls in broken barrel. whole foods, amazon retail, catalyzed by joe dash, colleen we men. stuart: haven't a clue what you're talking about. >> so amazon retail should be

capitalizing in this record cold weather. this quarter, last quarter. their numbers were great, to your point that they reported last night but the future has some uncertainty going forward because their bricks and mortar is bad. guys like joe dash are beating them so badly. stuart: joe dash, where the hell did he come from? >> joe dash -- stuart: joe dash? >> joe dash, family owned and operated great american horatio alger success story, multigenerational, goes from one store to a chain. david versus goliath. david and dash family, beating goliath and bezos and amazon. it is happening across the country because they're shutting down the 365 stores. stuart: to repeat, if i can get a word in edgewise on my own program you don't think it will go back above $2,000 a share this calendar year, is that yes? >> yes. stuart: thank you. end of interview. you're done. >> but with jim owens and the cobra ford, joe dash's board

member is driving around whitey ford yankee great and joan ford in the gt shelby cobra in the sunshine in florida and everybody is ready to upgrade because it is a great ford and gt cobra initiative. susan: mustang revved him up. talk of supercars. stuart: the ford gentleman right here is very happy to hear what you got to say, don't know about the forecast of amazon. see you again soon. now the jobs report, it was an absolute blowout. 304,000 new jobs last month. i want to talk about the skilled worker shortage in this country. the story we cover a lot. here is what larry kudlow had to say about that. roll tape. >> the participation rates have been rising. that is a very good sign. now for those were unemployed i think higher wage rates are going to bring them into the labor force. one can't predict, i think companies themselves, both large

and small, will want to train the folks for the 21st century so they can be as productive as possible. stuart: joining us is now is manpower group president. becky, welcome to the program. good to see you. >> thanks so much. nice to see you. stuart: suppose i was a young 18-year-old just coming out of high school. what skill do you think it will be best for me to get out there and learn? >> yes, we're seeing increasing demand for hard skills and soft skills, stuart. hard skills like i.t. technology, and really from the basics how to run a computer program all the way to advanced analytics. on the soft skills side, which is often not talked about, communications skills, networking, negotiation. so 18-year-old, join a club, network, negotiate your own stance. talk it your teachers. hard skill and soft skill are critical. stuart: okay. let's go back to computers. obviously that is the way of the future but tell me, what specific skill should i acquire?

if i want to get into the world of computers, should i become a code writer for example? >> honestly everything, stuart from understanding how to run a computer program all the way to your point, writing code, cybersecurity, engineering, research analytics. it is really the entire spectrum. half of american employers are telling us they're having difficulty finding skills that they need. honestly that is from the production line to the professionals we're talking about in the i.t. space. stuart: do i need to go to college for this? >> the great thing about 100 consecutive months of job growth in our country is opportunities are everywhere, not every opportunity require as college degree. increasing certification, i.t. programing, short burst of just in time training, opportunities to learn while you learn. there is opportunity across the spectrum for the american worker. stuart: that is the best news of the day, peckky, thank you very much joining us. thank you. >> my pleasure, thank you.

stuart: sure thing. the trump administration making another push to lower drug prices all about trying to pass rebates on to the consumer. next hour i will talk to health and human services secretary alex azar. how is that drug push going? first, speaker pelosi standing firm, no wall in exchange for dreamer protection. she says that is a nonstarter. question, is she abandoning the dreamers? good question, and we'll answer it. more "varney" 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. fidelity. ♪ ♪ our new, hot, fresh breakfast will get you the readiest.

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♪ susan: will he or won't he? herman cain, we'll ask him if he will be on the federal reserve board as reports he indicates? he says wages should be more of a factor howed fed determines interest rates. roll tape. >> the fed reluctantly is going to stay off of raising rates for a while because they're more afraid of inflation than denation. i believe that we need to have a rigorous discussion about the two. it is like a car. you can accelerate in a car a lot low slower than you can decelerate if you slam on the brakes. that is what i think the fed is trying to balance. i would bring that perspective, purely from a business perspective, and also bring in wages as a key factor.

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stuart: friday morning, february the 1st 1st. it's a rally. the dow up 160 points. why? good news on the manufacturing sector. good news on consumer confidence. very good news on jobs. and larry kudlow told us on this program we'll grow 3% this calendar year. all good, stocks up.

the border wall fight. house speaker nancy pelosi says, a deal, which allows dreamers to stay in exchange for a wall, that she says is a nonstarter. come in, nelson belido, border and commerce security council president. nelson, it seemed to me when i first heard that she abandoned the dreamers. what do you say? >> unfortunately she uses them as a pawn, right? president trump certainly looked at ways to find solutions for these daca recipients. but unfortunate thing, using them as a pawn is unfortunate. the other losers are even more, even the border patrol themselves. getting more agents on the border. the ports of entry, that is supposed to get more products, more scanning equipment, so we can increase international trade, the legitimate trade and travel all your viewers look at and depend on, over $1.2 billion of international trade a day, we need to figure out ways to not

only thwart the drugs coming over the border, by the way, just yesterday a record number of fentanyl seizures in the port of nogales. that was done about it united states customs service, the guys in blue, not necessarily the guys in green. this is another group being left behind. it is daca. it is agents. it is people. it is businesses and the list goes own and on. stuart: how long do you think speaker pelosi can maintain that totally intransigent position? >> you know it will be very interesting. i think what will happen the president has done everything he possibly can to look at a way to solve this issue. he promised a wall. i think he is going to have a national emergency, claim a national emergency. he will create a wall, as best as he can. will it be legally challenged? most likely, however he can then go back to his constituents, look, i've done everything i possibly can. but what does that still does not solve, is the crisis itself. these asylum-seekers

continuously, they don't care about a wall. they don't care about sensors. they don't care about ports of entries. they cross the border, seek agents in order to get arrested and released in the general population to never come back to a court or hearing for their immigration. stuart: is it your counsel's position we need a structure on the wall, on the border, many sort, a structure, a barrier, and that we need asylum reform? is that the position of your counsel? >> that is exactly right. so we need barriers where they're needed. we're not saying someone will have to be concrete barrier or steel, but we need barriers. why? that slows people down. does it stop them from getting in? , not necessarily. most of the wall is on u.s. soil. we need to give our agents time to be able to arrest these people. certainly having that, the ability to of having that and sensors to understand what is coming towards that wall is paramount importance. a lot of times we don't know what we have until they have arrived at the front door.

we need to have that preintelligence information before they get there, so we know what to dispatch, who to dispatch, what force to use to be able to capture those types of individuals that are trying to cross, take advantage of our borders. stuart: nelson, thanks for joining us today. we do appreciate it. >> thank you, stuart. good to see you. stuart: two days to the super bowl. almost five billion dollars expected to be wagered on the big name. i will talk to the philly godfather. widely followed betting type of guy. want to follow what oddball bets he is placing. i may place a few bets, you never know. susan: you never know. stuart: joe theismann joins me. good year for the nfl. no scandals. ratings are up. we're talking football on the show. super bowl weekend. here it is. ♪

stuart: a little bit of the shine has come off the rally but not much. we're still up 132 points. we're still well above 25,000. let ate get to the super bowl. the rams will face the patriots but i want to talk gambling.

here is the so-called philly godfather. basically this man is a professional gambler and he is on our set today and he has brought with him some of the oddball bets you might say that he is actually placing and betting own. first one, you say yes, the national anthem will last for less than 109 second. >> absolutely. we found a couple videos her singing the national anthem in the past them. been around 105. we think it will stay under. stuart: you placed the bet? >> you we placed bet. stuart: what odds? >> even money. stuart: even money. nice easy one. >> depends where you shop. some are minus 110. some 115. stuart: next one, james white will have over five 1/2 receptions in the game? five 1/2 receptions? >> we love it. he had over 85 receptions on the year. he creates a matchup problem. think he will take advantage of it. stuart: what do you, half come in how did you get half a

reception. >> you have to be careful. stuart: you say he will get more than half -- >> land on six. stuart: land on six. that seems like long odds to me. it should be. what are they? >> i think we laid 110 on it. i think it's a sure bet. stuart: all right. more points will be scored in the second half of the game than in the first half. >> yeah. i mean you got fourth quarter. teams tend to be little more conservative to start the game. they don't want to commit any turnovers, make mistakes. come out running ball more. feel each other out. second half they open up offenses. you usually see more scoring section half. stuart: that is the history of the game in the super bowl. >> especially patriots. this ram as team love run the ball. they have been running ball down opponents throats. stuart: last one, president trump will congratulate winner by midnight. that is the most oddball bet i ever heard in my life. why midnight? >> i mean, got to have a time span on it, we think it's a winner, especially patriots win

super bowl, his close ties to tom brady and owners of patriots. you have to risk 140 to win 100. you pay extra juice but we think it's a winner. stuart: if i put down 140, to win $100 but i get my 140 back as well? >> yeah. they give you back 240. stuart: i'm outsider of football, don't laugh, why does everybody hate the patriots? >> they win so much. seems like they're in the super bowl every year. they have been to nine super bowls. they have five rings. championship rings. maybe jealous of tom brady. good-looking guy, one of the greatest quarterbacks of all time, married to supermodel. a lot of things going on there. stuart: stuart: they don't like belichick? >> he is tough on his opponents. he hates to lose. saw what happened last year in the super bowl. they're back this year again. they're in the super bowl almost every year. stuart: it is interesting, they're playing l.a. rams. they went back to l.a. after a long, long absence. and i'll told that nebraska

cares about football in los angeles. they have got a very, very slim fan base, that true. >> sometimes you go to the game there is more opposing teams fans in the stands than the rams fans but this team is very good. they have the best record in the nfl. best point differential. don't let that fool you. they play better on road. they're at a neutral site playing against the goat. it will be a great game. stuart: you studies this. you put your money. what is under over? >> opened at 58. down to 56 1/2. some of offshore bets houses are down to 56. they're not expecting a lot of scoring. i went under 2in the first half. i think they come out a little conservative trying to feel each other out. i like the wager a lot, under 2in the first half. stuart: you absolutely amaze me. you're a great guess. absolutely amazing. come again next year. >> absolutely. stuart: i will check the oddball bets. steve, we appreciate it. good stuff.

democratic socialists dominate the democrat party are making quite a gamble. they thinking nighting anger and jealousy against the rich can win elections. i really hope they're wrong on that. my editorial after this.

stuart: they think it's going to fly. they think that by stoking anger and jealousy against the rich, they can win elections. and that in some way, they are morally superior. that's what they think. they being the socialists who now dominate the democrat party. it is the most important political trend in america today. that's my opinion. it reminds me of growing up in england, where socialism was the great hope and capitalism was the great villain. turned out very badly. by the 1970s, socialism had wrecked the british economy and the country turned to margaret thatcher to fix things.

same thing in america today. bernie sanders has revealed his tax the rich plan. he will bring back estate taxes with a vengeance. somebody should tell him rich people use trusts to get around the death double tax. but you get the sentiment. bernie doesn't think you should pile it up for your own children. we just heard from newly elected radical congresswoman ilan omar. lets really raise tax rates on the rich, 70%, 80%, we have had it as high as 90%. that's a place where we can start. as we reported, julian castro will settle for 80%. senator warren wants a wealth tax. alexandria ocasio-cortez wants trillions in new taxes for her green new deal. cory booker just declared for the presidency. he's a tax the rich guy as well. in short, there's hardly a democrat anywhere who doesn't want to use the tax code as punishment for success. they don't care about economic growth. they don't care about the prosperity that trump's tax cuts have created.

they think that class warfare, jealousy, anger at inequality will carry them through. as a ref ju frugee from europea socialism, i really hope they are flat out wrong. the third hour of "varney & company" is about to begin. i don't know where these people, pay your fair share, what are you talking about? the most successful already pay all the taxes, for heaven's sakes. why don't you give them an incentive to take risks? stuart: we enjoyed the conversation. larry kudlow there on the program earlier this morning, talking about the democrats' plan to tax the rich. they don't like it. let's get more reaction to the editorial from jonathan hoenig, the capitalist pig kind of guy. i know you obviously oppose socialism. i got that.

but i think that this trend towards socialism is actually the most important and very worrying trend in american politics today. you with me? >> it's horrifying. horrifying. you said it, you are a refugee, you have seen it. so many throughout the world have seen the disastrous effects of socialism. so why is it growing here in america? it's realtime experiments in front of our face, venezuela, cuba, north korea. whenever socialism has been tried and has failed, to the extent it has been tried, but it's growing here in america today. you are exactly right. and they are making the moral argument, aoc and elizabeth warren and the rest would say socialism is morally superior to capitalism because they swallowed that marxist old line from each according to his ability to each according to his need. they say we have got needy people over here, we have jeff bezos who is worth billions, socialism demands that he sacrifice and most americans agree. stuart: look, i want the debate

to begin. a want a whole scale debate on socialism and america's future. if we have that debate, i think we can win. if we suppress that debate with political correctness, that's a catastrophe for america. last word to you on this subject. >> i have to say, i think the gop is having the debate but they are losing the debate because what is the gop's response to socialism from elizabeth warren? they say well, 77%, that's too high. we need more like, i don't know, they argue on the degree of it. they think taxes are too high but at the same time, they say well, you know, we need to make sure everyone's covered with health care or we need to make sure we have tariffs to help farmers in need so they buy into that basic fundamental premise, to each according from his ability to each according to his need. that's why they are losing the debate. they need american individualism. your life is your own, your earnings are your own, you have a right to it. that's what this country is all about. that's the only thing that can save it, in my opinion.

stuart: i knew i liked you, jonathan. okay. let's get to money. let's talk stocks for a second. you said for a long time on this program that big tech is no longer leading the market and will not lead it this year. you still staying with that? >> yeah. i mean, these are great companies but there's a difference between a company and its stock. i'm seeing very much a similar situation to the late '90s into the first decade of the 2000s. companies like intel, like oracle, like microsoft, earned a lot of money, their earnings were good. they even developed fantastic new products. but the stocks basically were dead money for years and years and years. you are buying a stock, you are really buying a valuation, a price earnings share, expectations about the future. so many of these big cap tech stocks, they were the leaders for the last five years. i don't think they are going to be the leaders for the next five years. there's going to be other places to make money besides these old familiar names. stuart: talk about gold. i know you like it. i know you have recommended it. it has indeed gone to $1300 an ounce.

i don't get that. i mean, i always think you buy gold when you've got inflation which devalues the value of money. you buy gold. there's no inflation now. >> well, i have to say, i think your earlier point about socialism, i mean, i follow price trends but i have to think that some of the interest in gold these days has to do with the spread of socialism in america. people are always very confident to hold our dollars, knowing we were a capitalist free country. there's less and less of that these days. you are seeing i believe a bull market in gold, a bear market in the value of the dollar, and that's benefiting commodities across the board, including gold. and you know, you kind of, we have talked in the past, you said well, seems a little esoteric. not at all. back from 2000 to 2013, people went wild for gold. gld, for example, a very popular etf. i think you will see that again as people look to protect themselves against the dollar dropping, price of gold goes up. stuart: we have gld on the screen. that would be your vehicle,

right, for the ordinary average investor, gld is the way to get into gold, right? >> yeah. you know, i'm from the keep it simple school. there are ways to leverage yourself up to take inordinate risk. i'm not a gold bug. i don't think it's an all or none decision. but if you are looking to place money to work, i think gold is a much better bet than netflix or tesla or any of last season's winners. stuart: fine performance today, jonathan hoenig. truly spectacular. >> well, thank you for your strong words about the beauty and power and morality of this country, america. stuart: thank you very much. see you next week. thank you, sir. check the big board. lot of positive news helping the market today. we've got a very strong jobs report, strong manufacturing report, consumer sentiment still very strong and larry kudlow told us we are going to have 3% growth in the economy this year. all strong, all good stuff. market up. merck, higher profit, its

blockbuster cancer drug keytruda brought in more than $2 billion in one quarter. first time that's happened. the stock's up 3%. how about chevron? profits up, rosy forecast for this year. chevron's up 3%. same story with exxonmobil. profits up, production output also up. stock's up a very strong 4%. exxonmobil. staying on your money, as we keep telling you, larry kudlow was on the program earlier. listen to what he said about economic growth this year. roll that tape. >> year on year, stu, we are growing employment at 1.9%. you've got an economy whose potential is now moving right through 3% at an annual rate. so whatever happens quarter by quarter, i think our 3% growth rate is intact. i think we are going to surprise a lot of people. my advice to my friends who are pessimistic, my advice to my pessimistic friends, and i have a few, take the over for a

change. don't always take the under. take the over. it pays off. stuart: it's like a super bowl, isn't it. on your screen now, deirdre bolton, what do you make -- >> awful for americans. listen, i think the trend is certainly -- these were blowout numbers, better than anybody expected. 100 months of job growth in the united states, that's worth noting. i think along with these macro data points we get, we have also been talking about earnings all week. we had a lot of people saying it's all going to slow. i just checked some stats. we are almost halfway there for the s&p 500 companies and of the 46% that have reported, 71% have beaten estimates, as far as earnings go. 61%, so again, more than half on both metrics, have beaten revenue estimates. that shows that companies are still selling us things. or selling other companies things. and earnings are up around 20% even if you compare this quarter to this quarter last year. so corporate america is behaving

well. that's why they're hiring and that's why we see the data we are hearing. stuart: fascinating. a complete switch from what we were hearing the last couple of months. now it looks much more positive. >> i think since october, there's been a lot of distraction, right. we still have not settled the u.s./china trade talks and that for investors is a big question, especially you and i were talking if i have a factory here and import parts from china, it is affecting businesses. but i think sentiment wise, maybe we got too pessimistic which is -- stuart: that's what he said. thank you very much indeed. president trump heads to mar-a-lago this afternoon in florida. first, he will hold an event later this hour to talk about human trafficking on the southern border. if he speaks to the media or if he just addresses the camera, he will make a head line and you will get that pronto. looks like it's snowing in d.c. at the moment. let's get to speaker pelosi saying a deal for daca, in other words, let the dreamers stay in

return for building a wall, that she says is an absolute non-starter. next, we talk to a congressman, one of the congressmen taking part in border talks on capitol hill. let's see what he's got to say. the fed rolling out a new plan to lower drug prices. health and human services secretary alex azar will tell us about that one. the third hour just getting started. 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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what's going to happen on the 15th of february. i don't think they're going to make a deal. i see what's happening. they're all saying oh, let's do this but we're not giving one dime for the wall. that's okay. but if they're not going to give money for the wall it's not going to work. and if it's not going to work then the politicians are really wasting a lot of time. stuart: all right. come on in, congressman chuck fleischmann, tennessee republican. you are on these bipartisan talks. so one side, the president says doesn't look like a deal. nancy pelosi says there ain't going to be no deal, not for daca. you are in the middle of all of this. you are sitting on these talks. what's the status from within those talks? >> well, as you saw the other day, there was boundless optimism, civility in the room not only in a bipartisan sense, but in a bicameral sense. republicans and democrats, senators and house members, all appropriators, all tasked with the job of trying to get an agreement that the american

people can support that can pass the house, pass the senate, and yes, be signed by the white house. so when we govern, it is never easy. we are in a time right now, in a place that's very difficult. there are some impediments there. i really wish speaker pelosi had not taken the position that she did, but i want to tell the american people in this room, there are republicans and democrats at the table who want to solve this problem. i'm committed to solving this problem, and i think what we are going to see is very pragmatic people hopefully come up with a solution that will be suitable for the white house. stuart: are there democrats in this meeting who favor, who accept a wall or a structure? are there republicans who accept allowing the dreamers and daca people to stay? >> i think left to our own individual devices, we would settle this matter in about 10 or 15 minutes. so the answer is yes, there's

flexibility, there's reasonableness. democrats realize there needs to be a wall, there needs to be a border security agreement. republicans realize we're not going to get everything we want to and that's the very nature of negotiations. the sad part about it, but it is a reality, is that leadership unfortunately, speaker pelosi chose to take a very hard line position with her rhetoric, but the reality is there's a lot of hope in that room, there's a lot of optimism in that room. let's hope we can get back to the table. i have reached out to my democratic colleagues and my republican colleagues to say let's continue moving forward. we cannot give up. stuart: let me bring this one to you. congresswoman alexandria ocasio-cortez says, she and others, will not vote for a border deal with any, any funding for i.c.e., the immigration enforcement people, any funding. she won't do it. no funding for i.c.e. vme

what do you make of that? >> unfortunately, stuart, that is an extreme position that really is not a tenable position. there are only about three or four people in the house on the other side of the aisle that take that extreme position. let's face it, the majority of democrats and all the republicans i know support i.c.e. it's very important the men and women of i.c.e. are doing a tremendous job, and so we are always going to have unfortunately some extreme positions espoused that is really a non-starter. i don't think that position will move forward on their part. stuart: glad to hear it, sir. congressman, thanks for joining us this morning. always appreciate it. check amazon. we are talking money here. got to check amazon. recorded record profits yesterday but investors didn't much care for their slightly lower sales forecast for the rest of the year. the stock is down 4%, $69 to the downside.

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stuart: a new underwater theme park going to open within a couple of months off the coast of bahrain. biggest draw, that thing. that's a sunken boeing 747. they cleaned it out and made it into a coral reef. bahrain wants to be a diving hub for the world. looks interesting. fans of beyonce and jay z, this one's for you. you can now win tickets to any one of their shows for life, but the catch is you are going to go vegan first. when you have done that, enter to win one ticket for one concert per tour. is that a raw deal, perhaps? chocolate. russell stover and ghirardeli slapped with a fine for short-changing customers on the size of their chocolates. both candy makers have agreed to shell out the money without admitting any wrongdoing. $750,000. the super bowl is coming up sunday. new study claims 17 million people miss work on monday.

of that total, eight million are taking a preapproved day off. the rest are calling in sick. the super bowl ends a comeback season for the nfl. ratings up, anthem protests fading away. with all that good news, why do people seem to dislike nfl commissioner roger goodell? we ask super bowl winner joe theismann, next. final preparations for the big game under way in atlanta and there's some new technology. you can get your drink delivered to your seat by a robot. you're looking at it right now. you don't have to fight the crowds. employ one of those things. more after this. metastatic breast cancer is relentless,

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stuart: we are up about 150 points on the dow. that puts us well above the 25,100 mark. the dow is up more than a half percent. how about the s&p 500? as we always say, that's a much broader indicator, and the s&p 500 at this moment is up about a quarter of 1%. let's have a look at the nasdaq. i think that's down a tiny fraction up, and the reason for that is amazon.

amazon is within the nasdaq composite and is down sharply. it's a weighted average and that's really dragging down the nasdaq composite. all right. the super bowl. it's the rams against the patriots sunday. it will be the last game of the season that you could say was very good for the nfl. joe theismann is with us, old friend of ours, good friend of the show. former nfl quarterback and i believe, yes, i am told a super bowl winner. you are, aren't you? >> i am and i just happen to have a piece of hardware that says it. thank you very much. stuart: i knew it. i want to see it. it's been a really good season for football. you bounced right back. the ratings are up, the anthem protests are gone. great season. >> it really has been a very exciting season. i think you see the numbers are up, we've got a wonderful infusion of young quarterbacks. one of them happens to be playing in the super bowl, jared goff. patrick mahomes was mvp of the league. another young man. you have the veterans in drew

brees and tom brady and the youngsters like jared goff and patrick mahomes that are transitioning in to carry the league forward. there are other factors. opening up sports betting has created opportunities for people to watch the game. you have fantasy football. you have those that are hardcore fans. football's doing very well. stuart: so why is nfl commissioner goodell unpopular? i'm told that he is. i don't know this for a fact but i'm told he is. why? >> i think there have been different instances and things that have occurred through the course of the year and maybe some decisions over time that haven't been very favorable to people. for that reason, they sort of point at the person at the top, the guy in charge. it's hard to go after all the owners when decisions are being made out of the commissioner's offi office. for the betterment of the game, they have to do something about the instant replay rule. we saw what happened in the rams/new orleans game. i know if anybody is in new orleans right now, they feel like they should be here in atlanta. it just hasn't worked out that way. i think they are going to correct that but it's not going to help the saints fans at all.

stuart: are you with me on this, i watch football, i don't necessarily understand it but i watch it, it seems to me there are far too many interruptions, that the rules are incredibly complex, the flags are always being thrown. it's not a continual stream of action like soccer, for example, joe. >> well, speaking of soccer, i know real madrid and barcelona will play in the classico cape del ray semis coming up and barcelona beat them 5-1 in october, so i'm speaking your language now, as far as the soccer goes. but you're right, it's not a continuous sport. it's not like hockey, either. football does have its stoppages and i think one of the things they want to do is try and move the game along a little more quickly. that's why i don't agree with some of the people that are proposed the fact that we should review every pass interference quote unquote call. i think there's a time and place for the officials and for the opportunity to go to new york and review but i think we are reaching a point now where there

may be a little too much when it comes to that. stuart: joe, i am told that when the rams played the saints, more people in los angeles watched the patriots game than the l.a. rams game. what's going on? >> well, you know, los angeles offers so many opportunities i think to people outside of football. there was a long time before the rams ever really got there. it's taking time i think to win their fans back. they certainly should be excited about what they're seeing now with the rams in the super bowl. they went all in, bringing in people like aqib talib, ndamukong suh. todd gurley is a big question mark in this game. what is his mental and physical state. i think it will be an exciting super bowl. i really do. and of course, the new england patriots are back. seems like we are saying that every year. they are really an unstoppable machine at this time. it looks like as long as tom brady wants to keep on playing, they are going to keep on coming back. stuart: why does everybody hate the patriots?

again, i don't know this for a fact but i'm told they do. why? >> this is the hate show, stuart. they don't like -- i mean, what it basically is, because they win. i think people, it's not that they hate them so much, it's that they are so tired of seeing them in the super bowl. oh, there they are again. my whole theory is if you don't want them there, find a team that can beat them. then they won't be here. right now, no one's been able to figure out how to beat them. they have played their last two football games in the playoffs, the best football they have played all year. i think they are going to carry that into the super bowl. stuart: the patriots win, right? >> i believe so. stuart: so do i. okay, joe. we should watch together. >> i think real madrid will beat barcelona, though. stuart: okay. you always like to introduce a little soccer, don't you? just to see if you can get me. >> just for you, stuart. just for you. stuart: what a guy, theismann. thanks very much. see you again real soon. now, actually, we got boots on the ground so to speak in atlanta for the big game.

cheryl casone is there. show me the robots. reporter: you bet. let's show you some robots. those who understand football that are maybe from england, you understand what food is, right? these robots from called snack-bots and they are six wheels, self-driving. jeff from pepsico is with me now. tell me about these. >> they are essentially the first self-driven robots that deliver snacks right to your foot. reporter: right in front of me, all right. you are testing this at college campuses everywhere. there's an app on my phone. an app is actually running this right now. >> the university of mississippi in california. all you do, you pull up the app, then order the product. when it comes to you, you will get a notification on your phone that says open and you open it

up. reporter: i can take as much as i want, right? >> you can. you can add to it after you have ordered it. who wouldn't want doritos delivered to their seat? reporter: there's cameras and sensors on this guy, right? >> there are. that was exactly what you ordered, exactly what the inventory is so it can replenish the inventory when it gets low. as soon as you put the lid back down, the payment is processed through your phone and you are all done. reporter: totally self-driving. autonomous vehicles, right? and you have how many on the campus in stockton? >> currently on campus at university of the pacific, there are 50 hot spots where you can order snacks, too. reporter: where are these going, stadiums? concerts? what? >> currently the only limitation is the outdoors because they do manage through gps. you have to be able to map the area in a contained area so they can roam around and do their thing. reporter: stuart, what do you think? how lazy do you think college kids are?

if you are standing as a college kid on a campus, get on your phone and wherever you are on campus, you get soda and chips delivered to you. can't knock that. stuart: can the robot go up and down steps? reporter: can it go up and down steps? >> we haven't tried that. maybe later. reporter: they haven't tested it out yet. stuart: all right. maybe i will be the guinea pig. thanks very much, cheryl. now this. san francisco will not be slapping health warnings on soda cans any time soon. i thought that was all set in place. >> not the warning labels. unconstitutional. that is the ruling by district court judges, because it is under this category, a violation of commercial speech which is in fact protected by the u.s. constitution. basically what they want to put on it is sugar causes obesity and other diseases and the counter argument is that when it

is not consumed in chess you wi excess you will not have a problem. san francisco has already passed a tax on soda, as has philadelphia and albany. this is about the warning label, not necessarily the tax. stuart: you get the tax. you have to pay the tax. forget the warning. >> exactly. exactly. this is a huge win obviously for pepsi and coke. stuart: i need to ask about this one. there has been a slew of media companies, i think we have another one just announcing. >> vice media cutting 250 jobs which is 10% of its work force but it follows what we were talking about last week, where you had buzzfeed cutting jobs, also verizon media. we know earlier last year, mike was actually outright sold. i think what this is, most analysts say it's too many people chasing too few dollars. let's face it, for digital ads, the digital ad market, google and facebook have more than two-thirds of the u.s. market so it's really hard for these smaller players to compete.

amazon, i actually thought that was the most interesting part of it. amazon's results last night, they are making lots of money from showing us ads for products while we are shopping on amazon.com. so essentially, you just have this kind of crunch i think for the smaller media players. stuart: they really are getting crunched. a whole slew of layoffs announced recently. let me talk to you about apple. it says it's fixed the facetime bug that allowed people to eavesdrop on others while using its group video chat feature. it plans to turn the service back on next week after releasing a software update. apple stock still right there at $167. the trump administration out with a new plan that it says will lower drug prices. house speaker pelosi is already slamming the plan, saying it won't work. health and human services secretary alex azar is on the show to talk about that. he's next. we are going to schask him abou the new study that says e-cigarettes are effective at

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two days of trade talks with china just wrapping up. now the president is getting ready to meet with xi jinping later this month. michael pillsbury said this is where the talks go from here. >> if i were investing today, i would buy a lot of stocks that are going to be exporting to china. i think it's actually very good news. there was a warning, though, that there's no written agreement yet. it's too early for that. what i have been telling you quite some time now, there's going to come a showdown between xi and trump for the final deal. that's the important part. but this detailed discussion of the last two days, it's magnificent. the president deserves a lot of credit for the idea that president xi is the key to this and that the two of them meeting will work it out. that's i think the most important thing. i don't know what's going on. i've done all sorts of research, read earnings reports, looked at chart patterns. i've even built my own historic trading model. and you're still not sure if you want to make the trade?

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stuart: oh, california. the governor there, gavin new m newsom, wants $25 million for an emergency fund to help migrants seeking asylum. he says this taxpayer money will help local nonprofits provide housing and food. to asylum seekers. if approved, the funds will be available this summer. state lawmakers, though, want to approve $5 million of those funds for immediate use. now this. the trump administration has a new proposal to lower drug prices. they want to offer discounts directly to patients. the man behind the proposal is

alex azar, secretary of health and human services, and he joins us now. mr. secretary, just explain it. how does this thing work? >> well, stuart, i like to give you exclusives so i'm going to let you in on a little secret. when you show up at the pharmacy to pay for a drug that you need, there's somebody in the background called a pharmacy benefit manager, a middleman, and they are getting a kickback from the drug company on the drug you're buying. if your drug's price is $300, that kickback might be $60, $80 or $100. today, that kickback does not help reduce the amount you're paying at the pharmacy. you are paying that $300 or a percent of that $300 often. defenders of the status quo want to keep these discounts from seniors, but president trump with this proposal is saying those kickbacks that are going to pharmacy benefit managers, these middlemen, now need to go to the patient when you show up at the pharmacy. stuart: okay. speaker pelosi vigorously

opposes this, and she has made a formal statement about it. here it is. here's what she said. the rebate proposal puts the majority of medicare beneficiaries at risk of higher premiums and total out-of-pocket costs and puts the american taxpayer on the hook for hundreds of billions of dollars. she goes on. under the proposal, the trump administration's proposal, big pharma could see even bigger profits and even less restraint on what they charge seniors. pretty strong stuff, mr. secretary. your response? >> well, i look forward to working on a bipartisan basis to bring these types of savings to seniors when they hit the pharmacy. you know, we cannot defend the status quo. this is a catastrophically broken system, a system that encourages list prices to go up so that kickbacks can be paid to middlemen, not passed through to the senior citizen when they go into the pharmacy. that's what the president's plan is going to do. it will take close to $30 billion in annual kickbacks that are going to middlemen right now and instead route them directly

to the pharmacy when the senior citizen walks into the pharmacy counter. you know, if you are getting a drug that costs $300, and you are being asked to pay $100 out of pocket, that is incredible savings to you in january and yes, if your premium goes up somewhat during the year, that's a bit of an offset but we have calculated that for almost any senior who is taking drugs, and almost all of them do, you are going to come out way ahead under the president's plan here. you are going to save real money at the pain point of the pharmacy. stuart: is it to be a new law or a new rule of some sort that says hey, no more middleman, the middleman is out, the benefit goes straight to the patient? is it a rule or a law? >> so it's a rule that has the effect of a law so it's a proposal that we will seek comment on and eventually it will become a regulation. what it says is you can't pay kickbacks to pharmacy benefit managers anymore. they have to go directly to the patient when they go into the

pharmacy. now, those pbms still play an important role. they negotiate against pharma, they get those discounts, this is just about where that money goes, not about how much the discounts are. stuart: when do you think we might actually see this rule imposed? >> so we are proposing this would take effect january 1st, 2020, which is when most americans all of a sudden get hit with their full deductible as their plans reset at the calendar year. so it's real savings in america's seniors' pocketbooks within a year. january 1st, this could be coming to you. stuart: mr. secretary, i need to switch subjects for a second. we got this study in the "new england journal of medicine" which says the e-cigarettes are twice as effective as other nicotine replacement for getting smokers to kick the habit. that sounds like good news but i think the fda is cracking down on these e-cigs. can you explain what's happening? >> we have been very clear that e-cigarettes can serve an important public health purpose, helping adults who are addicted to combustible tobacco have an

off-ramp from that tobacco. it's better to be on an e-cigarette than on combustible tobacco. what we said, though, is we are not going to allow the nation's youth to become addicted to nicotine through these e-cigarette devices. stuart: does that mean no flavors, absolutely no sales to anybody under 18? >> absolutely no sales to anyone under 18. what we are doing on the flavors is ensuring that flavors are restricted to channels where children, where they won't be able to get, but access and appealability. we want to make sure those flavors are not in any setting where a kid could get them. stuart: i can still be addicted to nicotine, though, with e-cigarettes because i'm getting nicotine into my system. i can still get the addiction, right? >> that's right. it would be better to have nothing in your system, but it's better to be on the e-cigarettes, satisfying the nicotine addiction and craving, than it is to be actually smoking the tobacco product with all of the additional

carcinogens. stuart: senator kamala harris, presidential hopeful, wants medicare for all. you keep hearing this expression. you are secretary of health and human services. what do you make of medicare for all? >> so addressing the issue generally, not that one particular individual's comments, let me say medicare for all is medicare for none. what it really is about is undermining our promise to our seniors through the medicare program that it will be there for them when they need it and it's also about taking insurance away from the 140 million plus americans who have private insurance through their employers. you know, when these folks sold you on obamacare, they made the promise that you could keep your insurance if you like it. they're not even promising that this time. stuart: they didn't sell me on that but that's another story entirely. mr. secretary, will you please come back during the course of this year, because we would love to check up on the progress towards getting those drug prices down for actual patients. mr. secretary, thanks for being

with us today, sir. >> thank you. stuart: see you soon. all right. to something completely different. eddie lampert's plan to rescue sears may not be enough to save it from liquidation. why the federal government is now trying to stop the deal from going through. ♪ alerts -- wouldn't you like one from the market when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today. fidelity. our grandparents checked zero times a day. times change. eyes haven't. that's why there's ocuvite. screen light... sunlight... longer hours... eyes today are stressed. but ocuvite has vital nutrients... ...to help protect them. ocuvite. eye nutrition for today.

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stuart: starting today, girls can join the boy scouts. first time ever. they announced this move back in 2017. the group changed its name, too. it's now scouts bsa. girls have been able to join the cub scouts since june. okay? big change today. now this. we told you about billionaire eddie lampert's winning bid to keep sears alive. well, the government is stepping in. what are they doing, saying no, you can't save sears? >> there's a saying, paws off. monday is going to be this huge courtroom clash, if you like, as u.s. government mall owners and other creditors, at the end of the day, they are responsible for sears workers' pensions so they are saying hang on, eddie lampert, you're not going to get control. it's really about the kenmore brand. they are accusing eddie lampert,

billionaire hedge fund manager, chairman of sears, of trying to cherry pick, basically get the kenmore brand out of the bankruptcy filing, have that and then obviously, he would have a way to make money just from that brand because it is very popular. so they are saying huh-uh, we are going to choose how the liquidation goes. kenmore stays with the rest because that is arguably at this point probably the most valuable brand that the sears umbrella, through holding companies, still has because black & decker already bought, sears craftsman, already bought. you can buy diehard tires from amazon. amazon will deliver them to a sears location. but the point is, all their big powerful brands have already almost been divested in one way or another. kenmore is one of the last men standing and the government and mall owners and creditors are saying huh-uh, eddie lampert, it stays with us. stuart: very interesting. good stuff. let's talk about walmart. they are giving extra bonuses to employees at the end of each quarter. now, i'm told there is a catch. >> there is a catch. it's carrot and stick. they are saying even if you are a part-time worker, you do have

the right to sick pay, but what happens is it's also easier to fire you if you use too many sick days. and the bonus that you referred to also goes to people who have amazing attendance. so you know, they are shimmying a little, trying to inject, i would like to say, if we are looking at this positively, a certain amount of flexibility for their workers but also saying we are going to put a system in place so you can't really take advantage of it. walmart of course, the biggest private employer or biggest employer which is why we care, right? stuart: that is why we care. all right. by the way, president trump is holding an event at the white house right now. he may, indeed, he's expected to talk to reporters. we are on it, whatever he says, you will hear it. more after this. ♪

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stuart: you know it has been a pretty good start to the month of february. this is february the 1st. this is the first trading session of the month and it's looking pretty good. very good news on jobs, manufacturing, consume confidence and, larry kudlow says we're going to grow at 3%. that's all good. how about that, neil? >> i love that interview. two guys saying my good man, i don't want to be taxed. stuart: larry doesn't have a british accent. neil: that was you? sorry. stuart: allowed to get my two cents in worth, neil. neil: that is being generous by the way. all right, thank you very much, my friend. have a good weekend. we're following up on all the stuff of the tax talk we'll get to later these next couple hours. there is a clarion push on the left to raise taxes maybe not as high as 70% but still to raise them. that is getting to be across the board picture. more on that in a second.

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