maria: great show. thank you. love you so much. have a great day. "varney & company" begins right now. take it away. stuart: good morning, maria. good morning, everyone. the president took immediate action. new information came in showing similarities in the crashes of boeing's max jet. the plane has a problem. the president grounded them all. the plane is the mainstay of boeing's entire operation. 4,000 are on order. obvious question, will airlines take delivery of a plane that's not allowed to fly? it may be weeks before the cause of the crash is known and a fix put in place. boeing stock this morning down again, $1.50, $1.70 down at $375. facebook has a problem. a big one. the "new york times" says facebook's data deals are under criminal investigation.

deals that it gave companies including apple and amazon access to user information, sometimes without consent. there's also been a major outage, facebook and instagram. both have been restored. facebook's stock down three bucks at $170. here's another corporation with a problem. johnson & johnson hit with a $29 million award. it's another talcum powder cancer case. j & j stock down this morning. it really is down this morning. okay. we will get it right. look at this. it seems like the market simply wants to go up. another big gain for the dow yesterday, up 148. we will open flat to maybe slightly higher this morning but the nasdaq will go up some more, a gain there of six points. that reflects more gains. as usual, there's a lot to go at. frightening weather in denver. beto makes his run. and what does toyota have to do with tear gas?

"varney & company" is about to begin. stuart: oh, will you look at that. wild weather. strong winds blew that tractor trailer over. this was in texas. the condition of the driver, not immediately clear. there was a severe blizzard in denver. up to two feet of snow in some places. denver airport closed all the runways. 1,300 flights canceled yesterday. another 600 have been canceled for today. that is extreme weather. getting back to boeing, president trump grounded all 737 max jets, so america joined a growing list of countries that have already done the same thing. come on, congressman sam graves. he's on the house transportation committee, ranking member thereof, and a professional pilot. congressman, what's congress

going to do about this? hold hearings? >> well, we will. the bottom line is that we are getting a briefing from the faa this afternoon. we are going to go through this, we are going to continue to collect the data, the house and senate will take a look at this, but hopefully we can get this restriction lifted and get the flying public back on schedule as quickly as possible. stuart: you can only do that if you can restore confidence in the plane and you know what went wrong with the thing. >> well, it's not the plane that i'm concerned about. i think the plane is very safe. we need to concentrate on the pilot, the pilots being trained to the aircraft and being able to fly a plane and not just fly the computer. that's not a problem here in the united states. but i question that in other countries. stuart: wait a second. you are a professional pilot. you know what you're talking about. are you saying that this plane, it's a pilot problem and not a plane problem, or a software problem? >> i think it's a pilot problem. you have to be able to be able to fly the plane. we can teach people how to fly computers but the fact of the matter is, a pilot, and that's

the most important feature of any aircraft, the most important safety feature is a competent pilot that can fly the plane. so you have to be able to cut off or decouple the auto pilot and take over flying the airplane, instead of fighting the airplane which i fear happened in the case of yooet yo ethiopia and lion air. if they don't know how to unhook the systems or fly the plane after they have unhooked them, there's a problem. that's not a problem here in the united states. stuart: i just want to read you a presidential tweet. i'm sure you have seen this. airplanes are becoming far too complex to fly. pilots no longer needed. rather computer scientists from m.i.t., always seeking to go one unnecessary step further when often old and simpler is far better. you are a professional pilot. you think the president's got a point? >> well, let's think about this for just a minute. again, i go back to the fact the most important safety feature is the pilot himself, being able to fly the plane. but there's no doubt that technology has made air travel

safer. you know, by far. but fly the plane. that's one of the things you learn with any problem in an aircraft is the first thing you do is you fly the plane and you decouple whatever system, whether that's the auto pilot, whatever the case may be, you fly the aircraft. that's one of the most important things. technology, you have to ask the question, does technology, you know, cure pilot deficiencies or is technology creating pilot deficiencies. still, it comes back to the same thing. fly the aircraft. stuart: hold on for a second. i will get back to you in just a moment. some other issues for you. let me take a look at boeing's stock this morning. it is down and in fact, i believe the stock is down roughly, roughly 10% this week alone. that is a huge loss for a major corporation. come in, market watcher joel shulman. the stock is at $376 as we speak

pre-market. i know you buy entrepreneurial companies but would you buy boeing on this dip? >> no. no. no. i would not buy boeing on this dip. i wouldn't touch them at all. there's a lot of downside risk. this is a stock that's gone up over 260% the last three years. they beat the dow by quite a bit. even though it's the largest dow component by double the number two player, it's moved the dow up, it's moved the dow down. i wouldn't touch this stock for a long time. i wouldn't touch them anyway because they're not entrepreneurial but there are so many other traits related to this. 80% of the $400 billion future revenues related to this plane and the profits related to this plane have gone from 14% to almost 20% in gross profit and the margin's gone from 10% to like 14% so things have increased by 40%. this is a very profitable plane. management has benefited quite a bit by going from like $15 million in compensation to $30 million. so they have benefited. by the way, they haven't put

much of their money back into r & d. that's gone up $19 billion the last six years but stock repurchases have been $40 billion. if you are telling me they haven't trained the pilots properly, take some of the money instead of buying stock and train the pilots. come on. the biggest purchase the last six years has been buying back their stock. this is wrong. stuart: you make a lot of sense. let's move on to facebook. the "new york times" reports the data deals that it had with some device makers are the subject of a federal criminal investigation. the stock this morning is down about three bucks. it's just one thing after another with facebook. i don't know. it's not an entrepreneurial company but would you buy it? >> it is an entrepreneurial company. last year it was getting beat up, we were buying more. it's been up 39% since christmas, it's up 32% year to date. there is over 100 companies,like 150 companies cited in this latest scandal. scandals aren't new to this company. they have some problems. i think management's good. yeah, i own it.

i will continue to buy it. stuart: excuse me, i'm sorry. got a frog in my throat there. sorry, joel. sorry, audience. i shall recover. next one for you, joel. a california court ordered johnson & johnson to pay $29 million to a woman who claims she got cancer from talcum powder. again, it's down on this dip. i don't think j & j is entrepreneurial but would you buy it? >> so along the lines of boeing, this is a 130-year-old company, it's also component of the dow. by the way, between not only would i not buy boeing and i would not buy j & j, i would not buy the dow. the dow is only up year to date 10%. our entrepreneurial index is over doubled, close to 20%. i would not buy j & j. this is a company not unlike the tobacco companies where a lot of people are piling on. they have $81 billion in revenue, they have $15 billion in profit. there's nothing good about a company sitting on lots of

profits, lots of cash, that's got thousands of litigants out there and judgments, $4 billion something. nothing good about this stock is going to happen with this litigation. stuart: wow. that was a tour de force, if i may say so. >> one out of three. i would buy facebook. i wouldn't buy j & j, i would not buy boeing and i would not buy the dow. stuart: i just admire your analysis flat out. joel, thanks for joining. appreciate it. i want to get back to congressman sam graves, still with us now. you have an op-ed on foxnews.com. you say the green new deal would politicize infrastructure which i always thought of as a bipartisan deal, but you say the green new deal kills that. >> well, it is bipartisan, at least in transportation committee. but look, this is fantasy land. that's all it is. it's fantasy land. just to look at some of these

proposals and the astronomical cost of implementing, it's so far out of this world you can't even comprehend it. stuart: i think we can put you down as a no on the green new deal. >> that's for sure. stuart: appreciate you being with us today and your expertise as a pilot. appreciate that. thank you very much. >> thank you very much. stuart: yes, sir. check futures as we turn a little bit south. not huge, but we will be down about 20 points on the dow, up maybe 3 on the nasdaq. chinese hackers hit our navy. caused a lot of damage. later this hour we talk to our china expert. i want to know if they are beating us in the cyberwar. tesla, you won't believe how much data they are getting from people who drive their cars. it's almost big brother. you would be amazed at what they pick up. the senate expected to vote against the president's emergency declaration for the border. next, the head of the rnc. looks to me like the republicans are split on this one. also talking about beto o'rourke. he's made it official. he's running for president. "varney & kwcompany" just getti

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stuart: it used to be your dad's stock, your grandfather's stock, but not anymore. however, ge has recovered the $10 per share price. nowhere near the $40 it was a couple years ago, but it's up this morning 37 cents at $10.39. a tweet from president trump this morning on border security.

i will read it for you. a big national emergency vote today by the u.s. senate on border security and the wall which is already under construction. i am prepared to veto if necessary. the southern border is a national security and humanitarian nightmare but it can be easily fixed. joining us, rnc chair rhonna mcdaniel. you know what i'm going to say. the republican senate is split and you won't get support for the emergency. you have four republicans splitting off. >> republicans do recognize that we have a crisis at our border. they have a split on whether the president can declare a national emergency but the president absolutely is within his rights to do so. congress gave him that right. i think it is an issue when we're not united heading into a presidential year. i hear it, i'm traveling the country and the thing i hear from our voters and our investors is why are democrats always in lockstep and why can't republicans get behind this president, especially on an issue that we ran on that we know is a huge issue for voters.

stuart: there's a fuss about the real big split among democrats and it is a major split, there's no question about it. we're not used to talking about the gop being split. you must be catching a lot of flack. >> the reality is it's a handful of senators and the president will veto it, it will come back to the house and it's not going to have enough votes to override the veto. stuart: will the senators be welcomed back into the fold? >> listen, we are a big tent party. i will go for a republican over a democrat any day, especially with how the democrats are doing but it is a concern with our base. why can't we support this president. we know this is an issue, something we have run on. we know we have a humanitarian crisis at our border and drug crisis at our border. let's get together and solve the problem. stuart: that's a pretty good statement of intent. let's get together and solve it. i acknowledge the split. that's pretty good. >> yeah. yeah. i might have been party chair for a couple of years, you know? i have the hang of it. stuart: i've got to talk about

beto o'rourke. he joined the field of democrat hopefuls for 2020. in his profile in "vanity fair" he said i'm just born to run. no, sorry, i'm just born to do this. he's not springsteen. i'm just born to do this. roll tape. >> amy and i are happy to share with you that i'm running to serve you as the next president of the united states of america. this is a defining moment of truth for this country and for every single one of us. stuart: he went on to say he is the last great hope of earth. no, america is the last great hope of earth. >> i think you got that right. he, robert francis, he's announcing at an opportune time, st. patrick's day is coming up, robert francis o'rourke, what has he done, he's passed legislation to rename a courthouse and lost to ted cruz. stuart: wait a second. >> it's the perfect magazine to introduce his candidacy, "vanity fair." i have never seen a more vain candidate. this hollywood pre-packaged

candidate is not going to play in my state of michigan. stuart: he almost beat ted cruz in the great state of texas. >> $78 million can get you very far but it can't get you a win, especially when you have nothing to run on. his greatest accomplishment -- stuart: he looks great. he looks like jfk. >> -- he lost to ted cruz. oh, yeah, he's fantastic. and he's done nothing. stuart: that's the deal. he plays very well on television. television is the key to political success. >> and the green new deal he's embraced, being from texas, let's get rid of air travel, let's kill the oil and gas industry from my state of texas. i just don't think he's going to play. he's coming out as a rock star and he's going to fizzle out. stuart: how long have you been rnc chair? >> just over two years. stuart: you learned well. great put-down of beto o'rourke. >> robert francis. let's use his given name. stuart: thank you. it's been a pleasure. see you soon. we better take a look at

futures. i think we moved a bit further south. yes, we have. the dow will open with a loss of maybe 35, 40 points. the nasdaq, too, ever so slightly lower. next case, actress lori loughlin released on a $1 million bond for her role in that college admissions scandal. now people are demanding that a major beauty brand cut ties with her daughter, who has admitted she just wanted to party in college. what a story. of course we've got it. - my family and i did a fundraiser walk

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stuart: the college admissions scandal will not go away. actor lori loughlin released on a $1 million bond and there's this. youtube video of her daughter which is not helping. watch. >> i don't know how much of school i'm going to attend. i do want the experience of like game day partying, i don't really care about school, as you guys all know. stuart: oh, boy. tell us about the connection between loughlin's daughter there and sephora? liz: she has partnerships with sephora and other companies but complaints are now pouring in on social media. she's got two million youtube subscribers, a million instagram followers, a powerful brand recognition partnership with sephora. people are saying cut ties with her. hp has already cut ties with the

family. the parents paid half a million in bribes to get her into usc, posting fake photos that she was in crew, on an indoor rowing machine which she never rode crew. she's got partnerships with amazon prime students, dolce & gabbana and more. no question, there's no issue yet whether they will cut partnerships with her. sephora is not saying just yet. stuart: with all those partnerships and youtube viewers, two million of them, she's making a lot of money. liz: let's talk about another powerful connection. she was on the yacht of the chair of the board of trustees for usc when news of the charges against her mother broke. now, the president of the school has to decide about what happens to her but that shows her level of connection there. by the way, the father is the famous fashion designer, gianuli, so there's a lot of angles here to cover.

stuart: university did not know that. okay. let's turn away from this for a second. we have had a lot of bad news about airlines this week. however, we managed to find something positive for you. a flight sitting on a runway for two and a half hours, the pilot takes matters into his own hands to make things more comfortable for the passengers. ash, what did he do? ashley: good man. he went and said okay, apologies to all the passengers, you have been sitting here for hours. he went and ordered 70 hamburgers from fat guys burger bar and had them delivered to everyone on the plane. there's the captain with the bag of burgers. he paid for the whole thing himself. stuart: it was an american airline? ashley: it was united express, mesa airlines from tulsa to houston. that's a good man right there. stuart: yes, it is. a very nice gesture. wasn't his fault but he wanted to keep them fed. the markets heading a little further south, not a huge sell-off by any means. we will be down about 40 at the

opening bell. stay there, please. big day coming up for your money. we will cover it after this. now i'm thinking...i'd like to retire early. let's talk about this when we meet next week. edward jones came to manage a trillion dollars in assets under care by focusing our mind on whatever's on yours.

stuart: very nice gain for the dow industrials yesterday, up 148 points, 25,700. that's where the dow ended up on

the day. the nasdaq had a nice gain as well. big tech was rallying. keep saying this, stocks seem like they just want to edge up. this has been a terrific year so far, 2019. i don't know the percentages but we're up across the board. all right. 9:30 eastern time, we are off and running and away we go. we are going to be down at the opening bell. yes, we are. right now we are off about nine or ten points, not a huge drop. 13 right now. i do see some green among the dow 30 so it's not a universal sell-off by any means. in fact, at this point i'm prepared to say we are flat to slightly lower on the dow. how about the s&p? is that the same story? yes, it is. flat to ever so slightly lower. the nasdaq composite, i'm looking for a gain. we've got it. the most fractional of all possible gains, up.02%. ashley: very modest. stuart: you can say that again. modest. joining us this morning, we have david dietze, scott martin, liz

macdonald and ashley webster. start with boeing. as we know by now, all the max jets are grounded, just about around the world. the stock is down about, what, 10% this week alone. i think right now, we are back to, what, $372, keep it up on the screen because david, i want to know if you would buy this dip. $375. >> i'm usually about trying to make money off boeing in the midst of this human tragedy but the fact of the matter is, boeing is as well situated as any company on the face of the planet. there is no alternative to boeing. boeing may have been part of the problem, we don't know, but it's going to be part of the solution. the people want to fly and fly more and boeing is your clear choice. stuart: you buy it on the dip? >> we bought it 365 yesterday. stuart: you did? >> exactly. liz: one big pressure for the stock is whether other airlines follow what norwegian air is doing, demanding that boeing compensate it for its grounded boeing max planes. that's an issue.

stuart: that's a financial issue for boeing. we don't know how it's going to play out. >> that happened with the dreamliner in 2013. they had to compensate about $500 million. right now costs are projected to be $1.5 billion. it could be much greater. but we have already lost about $35 billion market cap. stuart: put it in perspective there. okay. boeing right now, $375. facebook. the "new york times" reports they are facing a criminal investigation over data sharing. and this comes after a massive facebook and instagram outage yesterday which has been corrected. scott, is this the issue, a criminal investigation which would really take the stock down significantly? >> you mean to tell me that facebook is stealing our data and breaching our privacy? oh, my god. stuart: the problem is it's a criminal investigation. i know they have been messing around with data before. this is criminal. that's different. >> yeah.

but stuart, okay, if it's criminal, are we going to see zuckerberg and sandberg behind bars? i don't believe that this is any different than some of these other scandals, to be honest with you. yes, it's being reflected a little in the stock today. this could also be reflected via the outage yesterday we saw on facebook and insta. to me this is more of the same with respect to this company. here's the difference with facebook versus j & j and some of these other companies which are different problems. facebook is trying to fix the problem. maybe they are doing it albeit very slowly. the reality is facebook is trying to work with regulators, trying to work with government to get past all these problems they're having. stuart: we hear you. facebook right now, $169 per share. here's something which i just think is big brother. tesla. they are collecting a lot of data about their customers who drive their cars. they know where you drive, where you live, where you work and cameras on the cars are recording all the time. david, it's not going to affect

the stock. the stock is actually up this morning. but it affects me. i could never get away from this big brother feeling i'm being watched. >> all great marketing companies want to know as much as possible about their customers. we just don't know enough right now in terms of the disclosures, the waivers the customers signed that they're not reading. stuart: you never read it. never read it. >> great point. ashley: you can opt out. you can say don't take video clips. they actually capture people on the street, these cameras. those people have no right to privacy, according to tesla. that's just part of the deal. but they absolutely record everything you do, speed, direction. >> you have agreed to it. stuart: you have to get used to this. ashley: you can opt out on having that data shared. liz: well, but you're right about the warnings. they are the size of pharmaceutical type font warnings. did you see "60 minutes" what's going on in china with their

electric vehicles? they are beaming it back into the government supposedly for infrastructure, what highways need to be built. you can't tell me they are not doing surveillance. listen, i'm not a spooky tin foil hat person. stuart: glad to hear that. liz: you gave me a second look. i'm not. when i saw that, i thought that was really chilling. stuart: it is chilling. i don't think you can get around it. okay. big board has turned around, not much. we are now up eight points, four points. dead flat to slightly higher, call it that. ge, okay, they gave a not so rosy forecast but the ceo larry culp says ge will get significantly better in 2020. that's enough to give the stock a nice little burst, up 3% back to $10 a share. a california court finds j & j, johnson & johnson, liable for cancer caused by baby powder, talcum powder. that could get real expensive because there's a lot of these lawsuits. would you buy the stock at $138? >> well, we wouldn't sell it at $138. here's the thing. in investing it's all about is

it a one-time cost, is it really going to affect the ongoing recurring revenues? at this point j & j still has a great brand name, triple-a balance sheet. this happens during administrations way in the past. these will get resolved, a lot of this can be reversed on appeal. i would not use this as a reason to dump j & j stock. stuart: it's at $138. next case. netflix. they say their subscribers watch an average of two hours a day. that is an average. so what does that tell you about netflix's marketplace, scott? >> they are still dominating and they will continue to do so, streaming obviously has totally taken over and it tells us we are pretty confident in owning the stock here. one of the knocks on netflix besides the fact that they were making big spends last year on content was disney, hulu, all these other companies, are going to come out and just totally erode their dominance. the reality is this. streaming is such a big

environment, kind of like online shopping is becoming, the world is big enough for netflix and some of the other companies i mentioned to succeed. that's why you need to take pullbacks in netflix as we saw towards the end of last year, for example, to buy it and use your money to get some nflx. stuart: if the average is two hours a day, somebody is watching for eight, nine, ten, 12 hours a day. liz: senior citizens, seven hours a day. >> here's the problem. people are not watching netflix, per se. they are watching great content. now all the entertainment companies in the world including disney and amazon are getting into that game and there's no monopoly on streaming. disney will go hit it hard in terms of the streaming, so is amazon. the competition is coming and the problem with netflix is the valuation assumes they are going to have sole marketplace for years and years in the future. stuart: okay. should stuart varney buy netflix now, even though he doesn't have

a subscription? >> no. stuart: why not? >> because the potential upside as they continue to do great is less than the potential downside if amazon, disney and these other entertainment companies take significant market share. liz: buy a subscription. don't buy the stock. >> the future is hard to predict. stuart: ain't that the truth. let's have a look at amazon. they have stopped selling two books which promoted autism cures. these books promote potentially life-threatening treatments, in quotes. what do you think about that? ashley: sounds like a good thing. stuart: they have done it. liz: they call it junk science. stuart: we all agree with this? >> any book seller has the right to remove a book from their shelf. i applaud them for taking some responsibility for what they market to the public.

stuart: got it. now then, toyota, i promised this story at the top of the show, they have designed a new system that would hit a car thief with tear gas. okay. >> this is my favorite story of the day. ashley: they filed for a patent for a system that can fill the cabin of the car with tear gas if someone attempts to steal your car. the system is also designed to put nice perfume smells into the cabin but they would also contain a pressurized can of tear gas in there that can be activated in the event your car is -- stuart: what happens if you press the wrong button? you get tear gas instead of nice scent? ashley: big trouble. liz: i feel really safe driving a car loaded with tear gas. what if your teen age car takes the gas? does it dispense visine? this is a crazy story. stuart: we are almost out of time. you have a chance to chime in. go ahead. >> yeah. i tell you, i'm looking for the barbecued potato chip fragrance. tell you what, in chicago, we

still have tons of carjackings, this would be very, very popular. stuart: really is fascinating. they haven't put it in production. they just filed for the patent. >> then the carjacker hits someone and causes an accident or worse, now they can be liable. stuart: that's good. good thinking. are you a lawyer or something? thanks very much for joining us, both of you. always appreciate it. 9:40 eastern time. the dow has indeed turned. we are up 26 points, 27 points. volkswagen has plans to cut up to 7,000 jobs in the next five years, part of a plan to save for that $6 billion. vw also wants to boost its development of electric cars. the stock is down a half percent. venezuela, china helped restore power to that country, about a week after those massive blackouts began.

next hour, we talk to general jack keane. i want to know, does china have military interests in venezuela? that why they helped them out? more china news. huawei tried to imbed itself in undersea cable networks that carry nearly all the world's internet data. next, we talk to one of our china experts. he says this would allow beijing to divert and steal all kinds of data from us. what a story. (indistinguishable muttering) that was awful. why are you so good at this? had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches

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world's internet data. joining us now, our favorite china expert and author of that book, gordon chang is with us this morning. what's this? getting into those undersea cables, wouldn't that give china access to everything we've got? >> i think so, stuart. remember this is not a theoretical concern. last october, we learned that china telecom, the state telecom company, actually diverted internet traffic in canada and the united states to china and they did this through certain devices. now, clearly if they can do that, they can tap into all of these cables that they already own so this is something which we've got to be concerned about, because as you point out, the world's data travels across these cables. china controls about a quarter of the undersea cables. i don't know how we let this situation get to where it is, but obviously, we've got to do something about it now. stuart: chinese hackers have gotten into our navy and navy suppliers. are we losing the hacking wars?

are we losing it? >> of course we're losing it because we haven't done very much for a generation. you know, the story is not that the navy is thoroughly penetrated and doesn't know what to do, is thoroughly incompetent. the story is that for a generation, we have known the chinese have had this relentless hacking campaign and have done very little about it. there are basically three presidents whose last names are clint clinton, bush and obama who should be marked down for allowing this to occur. stuart: did they just allow it to happen -- >> of course. stuart: did they know it was happening? >> for instance, you go back to bush. you couldn't say china and hacking in the same sentence and keep your career if you were a government official. obama did some things about chinese hacking but they were things that were deliberately ineffective. for instance, he had that agreement with xi jinping announced from the rose garden september 2015. the chinese said we're not going to hack u.s. companies for commercial purposes. we did nothing to enforce that. we indicted five chinese military officers may 2014 in the western district of

pennsylvania but those guys are never going to see the inside of that court. so clearly, this is on us because we have known this situation and we have not protected ourselves. stuart: this has to be part of the china trade talks and i raise that issue because i just want you to listen to what former white house economic adviser gary cohn, type guy in the white house for some time, had to say about china trade talks. roll tape. >> i think the u.s. is desperate right now for an agreement. >> an agreement or a head line? >> the president needs a win. the only big open issue he could claim right now is a big win that you hope would have a big impact on the stock market would be a chinese resolution. stuart: cohn says trump is desperate for a trade deal. so desperate, do you think, he would allow this kind of cyberhacking to keep going? do nothing about it? >> i don't know where he got that. obviously he has better contacts. stuart: he was in the white house for a long time. >> i know.

you look at this, everyone said trump was desperate for a win with kim jong-un, that he was going to cave in to the north koreans. i was worried about it. what happened? trump goes to hanoi and walks out on kim jong-un when kim would not deal with us in good faith. you got to know, remember, xi jinping is not going to mar-a-lago at the end of this month because he's afraid trump won't cave in. so i think there's a lot of premature handwringing and cohn may be right but i don't think he is. stuart: is that why there will be no summit this month, the end of this month, xi jinping and trump, because xi jinping doesn't think he will back down? >> yeah, i think he's worried that trump will walk out on him just as trump walked out on kim jong-un. the chinese are -- stuart: you're not worried, are you? >> i think the president would do that. i don't know. of course, i worry about all of these things which is the reason why my hair is gray. the point is, i think that a lot of people are criticizing our president for something he

hasn't done yet. so for us, remember this is important because those tariffs, section 301 of the trade act of 1974, are a remedy for the theft of intellectual property which goes back to this whole idea about hacking. stuart: fascinating stuff. gordon chang, as always, thank you very much indeed. i'm sure we will be seeing a lot of you. thanks very much. >> thank you, stuart. stuart: check the markets. you would call this dead flat. we are down two points. that's it. it's a pretty even split in the dow, roughly half are up and roughly half of the 30 are down. retail ice age, a term we use frequently. some bricks and mortar retailers are actually thriving. they are opening stores across the country. new ones. we will tell you which ones, next. am car. it turns out, they want me to start next month. she can stay with you to finish her senior year. things will be tight but, we can make this work.

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stuart: retail ice age? what retail ice age? dollar general, tj maxx, costco, walmart, they are among the retailers opening more than 2,000 new bricks and mortar stores this year. joining us now is jerry storch, who has been associated with just about every big name in retailing you have ever seen in your life and he's run most of them, too. welcome to the show. >> good morning. stuart: i notice that this list of companies opening new stores,

most of them seem to me to be discounters. >> what they are is low cost operations which is critical during this retail revolution. in the internet era, price transparency on the internet crushes your operating margins. you don't mind you are the lowest cost guy already. secondly, the operating expense of delivering to home are very very expensive. if you can really provide a great value every day in the store, you can still thrive. keep in mind, 90% of u.s. retail still takes place in physical stores. people like let's take some interesting pairs. tj maxx is working with eight times as much in terms of market capitalization as macy's. stuart: you're kidding. >> no. dollar general, again, the value player, low cost, worth 50% more than kroger, the nation's largest grocer. this is taking place all over the spectrum. so companies that can survive in this internet era, continue to thrive, they are opening stores, opening units. there is still a reason to come to these stores if you come

ready for value. one of my other favorite ones is costco. tremendous operator, reported outstanding results for the holiday season. why? everybody knows it's the cheapest, lowest priced place you can buy anything is costco and it's high quality merchandise. it's even less expensive than buying the same product at amazon. stuart: and it's the internet which has done all of this. >> the internet changed the rules of the game. if all you do like some of these department stores is offer products that are widely available and it's somebody else's product you won't be able to make any money. you become a distributor. like when stocks started trading on the screen. they are available everywhere. it's going to go for the lowest possible price. if you are a department store just offering stuff you can get in 20 different places and on amazon, you are going to see your margins crushed. stuart: but if i go to dollar general, i'm buying -- and i do go to dollar general. you go in there, you buy what you want and it's a very low price and you take it away with you. so dollar general doesn't have

the cost of delivering it to you. >> the last mile is the biggest expense in the so-called e-commerce mile. that's delivery to home. it's outrageously expensive. that's why you see some of the smarter retailers putting a lot of energy into in-store pickup, where you go and pick it up, whether you order online or not. that last mile then is on the customer, not on the retailer. it's outrageously expensive. e-commerce is not, by any means, a low cost operating model. stuart: you want to get back into the business of running a retailer? >> you never know what happens. the world constantly changes. stuart: you haven't answered the question. >> it's always a lot of fun to be in the game. stuart: would you like to get back into it? >> sometimes it's better to be an arms merchant where you are selling weapons to both sides. particularly when the war is this vicious. stuart: you are a great guest. it's a pleasure. tj maxx is worth eight times more than macy's. >> almost $60 billion. macy's is worth seven. stuart: that's extraordinary. that really is. jerry, you are all right, sir. if you're not careful, you will be invited back. thank you, sir.

next one. boeing's max jets, okay, we know this, all grounded after president trump stepped right in there, bold move. i say it was the right thing to do. my take on that is next. you wouldn't accept an incomplete job from any one else. why accept it from your allergy pills? flonase sensimist relieves all your worst symptoms, including nasal congestion, which most pills don't. and all from a gentle mist you can barely feel. flonase sensimist. . .

stuart: literally a few seconds we get latest numbers on new home sales. this is important indicator of the housing market not doing that well recently.

i have 15 seconds to go. tell you right now before these numbers are released we're down five points on the dow jones industrial average. i don't really expect that new home sales will make that big of a difference to the stock market. they might. we'll see what happens. we do, we are going to get mortgage rates as well. lizzie is shouting at me. we don't have the numbers yet. liz: not just yet. stuart: we're waiting but you have more. ashley: i do. liz: forgive me, 607,000 at annualized rate. they were looking for 620-k. that is down 6.9%. stuart: not real strong. liz: last year annualized was best since 2007. fourth quarter started to get weak. that weakness is continuing through the latest numbers. stuart: mortgage rates? ashley: freddie mac. my favorite time. you know that. 30 year fixed-rate down to 4.31%, down from 4.41. down a 10th of a percent,

lowest over a year since february of 2018. freddie mac says inventory is still stubbornly low. hard to get the housing market fired up. 4.31% for 30-year mortgage. stuart: for economy coming off 3% growth rate. ashley: coming along. stuart: a lot of people say you get 3% this year. strong economy. only 4.3%. ashley: uncertainty, brexit, everything else, bond yields are going down. that is being reflected in the mortgage rates. liz: great point. stuart: a contradiction, i do declare. ashley: yes it is. stuart: we're a minute getting all this information. the market come down a little bit. we're down 20 points for the dow industrials right now. now this. president trump stepped in and grounded boeing's max jets. it was the right thing to do. for three days the rest of the world gradually shut the jets out of their airspace. in a climate of rising anxiety

america was almost alone keeping them in the air. then wednesday, canadian officials talked ominously about new information. there were similarities between the max 8 crash in indonesia and the max crash in ethiopia i that meant there is a problem with the plane and that meant all of them had to be grounded and president trump acted quickly. he was acting in the public interest and in boeing's interest too, you can't risk another accident. make no mistake the president's shutdown was necessary, it was a big blow to boeing, one of america's most prestigious companies. it is future depends on these jets. it has ordered for 4,000 of them. the question will airlines take delivery when they can't fly planes they bought? don't expect a quick fix. the black box in the ethiopia crash was damaged, is being examined with special equipment in paris. it may be weeks or months before the results are in. hard to see boeing max jets in

full service anytime soon and that is not good for boeing but the president acted quickly and decisively. it was indeed the right thing to do. this is the second hour of "varney & company." ♪ >> boeing is an incredible company and hopefully they will very quickly come up with the answer but until they do the planes are grounded. stuart: that was the president obviously making the call right there yesterday. come on in gary kaltbaum, market watcher de jure if i can say that. gary, seems to me the issue here for boeing, they have got orders for 4,000 of these max jets. put yourself in the position of an airline. you ordered them. they're about to be delivered. you paid for them but you can't fly these things. i see that as a real problem. >> yeah, look. uncertainty is not a good thing. i think it adds up to 500 billion doll laughs orders. so, yeah, i think it is a problem. why i'm staying away from the stock right now. i also think they worry about lawsuits and exceptization.

i'm already reading norwegian airlines is asking for compensation from boeing because they can't fly the planes and they're losing revenue. i suspect other airlines may follow suit. then the issue of, you know, pilots complaining about the issues boeing was having with these planes beforehand. i gather some lawyers will be circling. again the uncertainty gives me worry. you take a step back, let things play out, unfortunately it may take a little time. stuart: all right. talk to me about facebook because "the new york times" says facebook faces a criminal investigation over its data deal with some smartphone companies. i'm not interested in getting in the weeds here. the words criminal investigation stand out. i think it's a whole new ballgame. >> criminal is not a worry when you're a company. i've been saying the company, using the term data collecting monster for a long time here. i didn't believe zuckerberg when he was on the hill. maybe getting a comeuppance.

my biggest issue, i don't say this sarcastically, outer mongolia, look up internet cafe, look up mongolia restaurants and day later on my facebook page there is an ad for mongolia restaurants. i'm not sure i signed up for that what i call stalking. they are in the consider hairs already. they're earnings and sales a dehe is rating so i'm staying away from it. stuart: what are you actively, aggressively buying right now? >> i think technology is en fuego right now. i'm looking for any pullbacks. i think things got ahead of themselves this week but there are a bunch of software names. by the way microsoft is one of them that i'm looking for pullbacks before earnings. i'm going to jump all over it. i own a few names outside of that right now but technology is the place to be. hopefully it continues into earnings. stuart: that is very interesting because technology really led the market rally for a couple of

years. it cooled down in the last few months. you think it is now leading us back again? >> this second it is. look, technology always leads markets up and down. i told but the semiconductor group. if it is in a bear market, usually the market is. semiconductors are getting a bid again. look, if it continues markets will go higher. something i have to watch on a daily basis because these are not low beta stocks. they can drive you up the wall, both up and down. right now they are in pretty darn good shape, being bid up. stuart: gary kaltbaum, straight at it. thanks for joining us, gary. see you real soon. >> thank you, stuart. stuart: now this, former texas congressman beto o'rourke announced he is running for president in 2020. joining us now is a current texas congressman, that would be lance gooden. congressman, i'm very much aware that beto almost beat ted cruz in your state, texas. does he represent the new texas, do you think? >> you know, if beto o'rourke

represents the new texas and new texas is rich white man who is very liberal, more so than nancy pelosi, then republicans are not as out of touch as the democrats say we are. so, no, i don't think so. i would like to remind you of the great words of the great rahm emanuel said beto o'rourke is a loser. couldn't win a seat in texas. how will he become president? to quote the great rahm. stuart: i just wasn't expecting that but i am intrigued at the prominence of liberal politics in the great state of texas. i'm wondering if some of the californians who migrated to texas from california, perhaps because of taxes there, did they bring their liberal politics with them and are swamping you guys? >> that is an interesting thought. in some cases i think left. a lot of folks left california for political reasons. they have children that don't necessarily share their parents views.

we're seeing different generations californians come. some more conservative and some are more liberal realizing texas is a great place. we're seeing both ends of that spectrum. it is something noticeable. i don't think texas is trending left but the left is definitely energized. they turned out more than they ever had in 2018. we expect them to do that in 2020. stuart: another one voting on a resolution that would make the mueller report public? i think you want to make it public. is that correct? tell us why. >> the president wants it public as well. we've been dealing dealing with witch-hunts for years now, entire trump presidency has been underwater with these witch-hunts and we're ready are to the truth to come out. we don't believe there is any semblance of truth to these russian allegations. nancy pelosi even prepared us earlier this week and said that impeachment is something that is not bipartisan, not good for the country and she doesn't support it. that tells me what we're about to see is a mueller report that

is a nothing burger. that we're going to say, okay, democrats it is public, get behind it, let's support the fact that president was not colluding with russia. let's move away from these investigations. stuart: we'll see what turns up there, congressman. thank you very much indeed. >> thank you. stuart: sure. we head ad bit further south. the market is open for 40 minutes. now we're down 78 points, just inching lower throughout today's trading session. ge, shares were down earlier. moved a little it about i here now after the ceo said the power business will bounce back and there will be positive free cash flow in 2021. it is back to $10 a share. j&j, hit with 29 million-dollar lawsuit, award, i should say. it is another call -- talcum powder cancer case. j&j is down a buck. snap got an upgrade. one investment firm says buy it.

it is up 7 1/2%. roku, it is up, bouncing back a little bit today after a 12% decline yesterday. it got a couple upgrades. down it went. not up by much this morning. now this one, china helping venezuela to restore power after all the blackouts. china brought them back. that is surprise development. we'll ask a question. what is china's interest there? we'll ask someone who knows. san jose police chief blasting the sanctuary city policy that prevented i.c.e. from getting a convicted gang member off the streets before he allegedly killed a woman. this headline about joe biden caught our attention. the former vice president could pose a formidable challenge to trump if democrats let him. will they? we're on it. this is the second hour of "varney." ♪

stuart: we're down 50, 60 points on the dow industrials, 45 minutes into the session. have a look at dollar general. that is a discounter of course. not so rosy forecast and it is down 9%. these forecasts make a difference to the stock, they certainly do. how about boeing? news is here, ntsb says it will

send additional investigators in the ethiopia crash investigation. maybe trying to get answers faster. the stock is lower now 373 on boeing. venezuela massive blackouts, but china stepped in offered to help to turn the country's lights back on. why did they do that? general jack keane, fox news military strategic a analyst. does china have a military interest in venezuela. >> certainly not but they have an economic interest. venezuelans have been providing oil to china return for investment money. venezuela owes 20 billion out of that portfolio. that is what this is about, protecting this investment. the united states did not conduct a cyberattack as venezuela claims and as china claims on the national grid inside of venezuela.

they had a technical problem with one of the hydroelectric plants, it is connection to the national grid. that is being fixed. most of the power is back now. and that is where we currently stand. stuart: but the military is just in the background, not talking about venezuela's military. talking about cuba's military. they're involved in venezuela. we're toed china has a satellite tracking station embedded in venezuela army base. seems like the military is surrounding this issue waiting to do one thing or another. it is military threat, isn't it? >> still not much after military threat from china. you have to have different places in the world to be able to do that. does that have military implications? yes of course it does. russians have some interest in the area as well. cubans have military, paramilitary on the ground and they're kind of mentors to

maduro to be frank about it, stuart. they are heavily involved in the decision-making in terms of what to do about crowds, when to put their goons on the street with guns. they keep their military, venezuelan military away from the people as much as possible, they don't want them to return against the regime. this is as much of a standoff in venezuela between guaido and maduro, the new announced president and the old illegitimate president. there really is a strategic standoff here as well. the united states, the countries in the region, most of the democracies in the world against who? against russia, china, cuba, iran and nicaragua. stuart: okay. general, thank you very much indeed. we appreciate it. i just going to break in here. i have got president trump just tweeting about today's vote on the national emergency declaration. here it is. prominent legal scholars agree our actions to address the

national emergency at the southern border and to protect the american people are both constitutional and expressly authorized by congress. if at a later date congress wants to update the law, i will support those efforts but today's issue is border security and crime. don't vote with pelosi. there will be a vote in the senate today. ashley: yeah. stuart: blocking the president's emergency declaration. it is likely to succeed. ashley: yeah. stuart: that is what the president is talking about now. he is likely to veto what comes out of the senate. liz: that's correct. stuart: later this hour the president greets prime minister of ireland. they will speak to the press. that will behind closed doors. that will be on tape. we'll bring you the tape the moment it happens. stay tuned for that one, because they will be discussing, covering some important subjects. right now the dow industrials are down 40 points and we'll be back after this. ♪ this isn't just any moving day.

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stuart: there really isn't that much movement in stocks prices thus far this thursday. the dow industrials down all of 30 points, 25,600. tesla, elon musk will unveil the model y suv tonight. holding up another bright shiny object. the stock is up 2 bucks, 291. toyota design ad new system, a patent on a new system would hit a car thief with tear gas. what a story. nato considering taking action against huawei. security concerns about huawei's 5g technology. meanwhile huawei and two

affiliate companies will be arraigned in brooklyn court today. susan li is there. susan, what are the charges against huawei? >> wire fraud, bank fraud, obstruction of justice and attempt to evade iran sanctions. all in all 13 counts against huawei an two affiliates. u.s. alleges that huawei used to mislead multinational banks to possibly violate iran sanctions. indictments against individuals including namely huawei cfo, meng wanzhou, awaiting in canada extradition to the u.s. lawyers are showing up already. camera crews are in tow as wilt as photographers. lawyers inside and district attorney and huawei's defense showing up. that trial starts at top of the hour. justice officials will lay out the case. what they're alleging a decade-long campaign by huawei

to lie, deceive in order to grow the business. we heard from secretary of state mike pompeo this week, who says, warns allies if you use huawei technology and huawei equipment in your 5g rollout we might be sharing less with you from in the future. we heard germany overnight, the spy agency calling huawei untrustworthy. stuart: china's most important technology company in court in brooklyn, opposed by nato, various governments around the world at the same time, we have these real big trade talks going on with china and president trump. is there a connection between these two? reporter: we have heard from the administration an president trump himself dangling the fact there might be a clemency agreement for meng wanzhou the cfo of huawei in these negotiations. everything is on the table at this point. you know, we have heard this before and this could be a real possibility, especially with

huawei which employs tens of thousands across china, very important to the chinese economy since it is the world's largest network equipment seller. this might be also a trump card pardon the pun in these talks. stuart: fair point. susan li at court. see you again soon. vice president biden, former vice president biden, earlier this week he kind of tease ad run for the white house. i think he could be a formidable opponent for president trump but with the democrats split, what are the chances he could be the nominee? could he get that far? we have the story. another day, another bad headline for facebook. new report in the times the companies dealing with data are subject of criminal investigation. that is the important word, criminal. i want to know how much trouble this could mean for facebook. more "varney" after this. stocks down. ♪ now i'm thinking...i'd like to retire early.

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don't wait another minute, call now to purchase your american eagle coins at cost, for the amazing price shown on your screen. ♪ stuart: oh, there is certain relevance to this song. ashley: really? can you tell us? stuart: which we'll not discuss. i like it. great song. i knew it well, back in the day. check the big board. we're down 40 points. kind of a go-nowhere day thus far this thursday. the dow is at 25,663. take a look at sprint. they're expecting to launch the commercial 5g service starting in may. for some reason it is totally unchanged. i would have thought they would get a little boost there. no, $6 a share, no change thus far.

look at headline in the "wall street journal" the case for joe biden. the former vice president could pose a formidable challenge to trump if democrats let him. the man who wrote that is bill mcgurn. he is with us now. bill, you think that he would beat trump but he won't get to the -- >> i think he has a good as chance as anyone but he checks a lot of boxes but as you say the party is moving left. his advantage he was vice president for obama. he also appeals to those blue-collar workers who are democrats and voted for obama but then went for donald trump. but the question is, will the pressure be too much? he gave us an indication the other day. he referred to the vice president mike pence as a decent guy. then cynthia nixon and the left pushed back on that, right? he caved. stuart: yeah, that's right. >> if he had taken a stand there, woe have separated himself out. i think that is the kind of campaign look, i'm not for vilifying, my opponent is my opponent, not my enemy. he missed a chance.

he flubbed it. stuart: he totally caved. i don't think you can be the president of the united states if you cave at the first sign of any opposition to you. >> right. stuart: you don't think he will get the nomination and i don't either. >> i don't because of these pressures. i don't see him, to be a moderate, to run as a moderate in the democratic party today is very hard. the party is drifting. they're going back, you know, 40 years looking at his votes on busing and abortion then and anita hill. so there is a lot in his party who don't like him. what he has is, he is at the top of the polls. maybe name recognition because he was vice president but unlike his other runs he is at the top of the polls pretty consistently. stuart: i'm told bernie sanders has the best shot because he has a great organization, he is very, very well-known. the money is pouring in. and you have got a skeptical look on your face. >> yeah you know like, there is a case for losers. he lost against hillary clinton.

stuart: but, the dnc -- >> i think he would have lost anyway. i would like to see, i don't know, are democrats really going to nominate an old white male that is another joe biden problem, right? stuart: socialist though. a socialist. >> is that vote white male if you're an old white socialist male? stuart: i think it does. you're laughing i think it does. >> i agree with that. but i think there are younger people who punch other tickets in the identity politics who are also socialists. stuart: i want to pursue this for a second. i think the democratic party as a whole has been overtaken with socialistic ideas. >> absolutely. stuart: socialized medicine, free college. >> look, every problem that they present a solution to, the solution is always more government, more state control, right? everything. there is not a single -- that is another thing i think candidates that distinguish himself or

herself could do, find some solution that is market-friendly. just different from the green new deal, "medicare for all." free college, and i don't think any of -- i wonder if any of them really believe in the private sector except as a thing to be taxed and regulated. stuart: i like that line. beto o'rourke is running as you know. >> right. stuart: announced first thing this morning. he is running. he is tell againic. >> also lost. stuart: but only in texas, narrowly loss. >> who are shoes and hand grenades almost close. but against a man who is personally unpopular, ted cruz. if you're going to pick a republican, i don't know, there seems to be a lot of elvis kind of swooning over beto o'rourke. he has, he also has the obama thing where he is kind of a cypher. doesn't have much of a record. stuart: looks good on tv. very important, bill. >> we'll see compare him to bobby kennedy.

my old boss bill buckley, bobby kennedy was terrified going on firing line to interview with william buckley. he said, why does baloney reject "the grinder"? i would like to see beto o'rourke hang in there, not just against president trump, running for president is serious business. other candidates will be very tough. democratic primary are very tough. republican primary it is like the elks, if you're bob mccain or bob dole it is your turn. democrats have to fight for the nomination. stuart: now on capitol hill, the house voted in favor, a non-binding resolution to publicize, publish i guess you say the mueller report. the vote was 420 to 0. liz: unanimous. stuart: unanimous vote. all have a look at it. when it comes out, i think, non-binding resolution, let's see it. let's see if it is binding on our society.

thank you, bill. >> thank you. stuart: good stuff. now this, president trump revealed his budget for 2019 and it forecasts 3% economic growth this year and some years to come. our guest says that growth is going to come from manufacturing. dave banks is with us. a former advisor to president trump. so first of all you think we will get 3% growth this year? >> absolutely, absolutely. stuart: and it comes from this resurge in manufacturing. make your case. >> the president is dedicated. it was the heart and soul of his campaign to resurrect american manufacturing. he is focusing everything he can do to make that happen. i tell people, the president's number one priority is resurrecting u.s. manufacturing. number two priority, maybe number three, you know why, because the president, unlike most people in washington, understands that the foundation of american power is its manufacturing base. you're not going to have a u.s.

superpower -- stuart: is that still true? i got to contest that. the foundation of america's success and it is power is its, not control of but its, its ability in the field of computers. amazon, apple, google, microsoft, their computer, high-tech companies which are wildly successful. they are not manufacturing companies. they're technology. >> i'm not saying that is not important for u.s. manufacturing but clearly when you're looking at the ability, the ability to project military power, to fight wars, requires a strong manufacturing base. you can't win a war against china or anyone else with just computers. you may need them but you have got to have a strong manufacturing base. stuart: all right. give me some numbers. can you tell me that the manufacturing sector has indeed rebounded and expanded under trump? >> the president has been incredibly successful. the first 26 months, while it is number, 479,000 new manufacturing jobs, that is a

huge, huge number. there are other things he can do besides the deregulatory and tax reform agenda. there is also an international agreement out there that believe it or not is an america first agreement that would help lock in a u.s. manufacturing advantage for years to come. i know it is hard to believe that there is a good international agreement out there that does that but it does. stuart: what does it do exactly? >> so it is actually refridgant manufacturing agreement. it seems incredibly detailed. it is the cadelli amendment. i know it's a tough name, pittsburgh or columbus agreement, whatever, reality, global market for refrigeration is about trillion dollars up-and-coming because of developing world and industrialization needed to say chief that the u.s. needs to keep a competitive advantage here. there is a big global market here for the u.s. to keep market share in. stuart: you think, are we signing this deal?

>> look, it is signed, ready to be sent to the senate. by the way it would help create 150,000 new manufacturing jobs. stuart: will it go you there the senate and bipartisan agreement? >> if the president understands the commercial benefits of this he will back it. he will send it to the senate. the senate will ratify it. stuart: tom, sorry, mr. banks, dave banks, thanks for joining us. i didn't know about the agreement. see you soon. >> appreciate it. stuart: new development in the college admissions scandal. it's a big one. a patient, former teacher just filed a 500 billion-dollar lawsuit in san francisco accusing 45 defendants of defrauding and causing emotional distress by taking away other students chances to get into college. what do you mean? are they suing parents who bribed their kids in. >> including felicity huffman and lori laughlin and her husband and including coaches in the scheme and also mastermind of it william singer. one single parent, jennifer toy,

former teacher, her son joshua had 4.2 grade point average, iced out of college admissions. doesn't say what schools did not admission. filed in california superior court citing emotional distress, because he had quotes right to fair entrance. that was stolen through this alleged conspiracy. ashley: how many more will jump on that. liz: yes. half a trillion. stuart: usual i ask for astronomical momentamount of money. don't always get it. the senate votes on the president's emergency declaration. we know five senators, republicans who will vote against the president. where does senator tim scott stand? he is on the show. we'll ask him. five minutes the president trump will meet the prime minister of ireland. they will speak to the press. we'll sew you what mr. trump is saying. it will be a tape because they're speaking behind closed doors. as soon as we get the tape we'll

bring it to you. all kinds of major subjects will be discussed. we'll individual for you in a moment. ♪

♪ ashley: in the last hour professional pilots and congressman sam grieves told us he believes pilot error could be the cause of those recent crashes involving the boeing 737-8 max. take a listen. >> i think it's a pilot problem. you have to be able to fly the plane. we can teach people how to fly with computers but fact of the matter, a pilot, that is the hose important feature of any aircraft, most important safety feature is competent pilot who can fly a plane. you have to be able to decouple the autopilot or mcat system. i fear happened in the case of ethiopia or lie i don't -- lyon. if you don't know how to unhook the systems that is a problem. that is not a problem here in the united states.

termites. we're on the move. hey rick, all good? oh yeah, we're good. we're good. terminix. defenders of home.

stuart: big board down 20 points. that is fractional loss top to bottom thus far today. dollar general, discounter, not so rosy forecast. it is going down, the stock that is. its ceo buy online and pick up the item in store. so you buy it on line, go to the store, pick it up, ready for you. away you go. he will do that in the second half of the year. not helping the stock though.

it is down 11 bucks. that is 9%. now this, a woman in san jose, california, was brutally murdered by an illegal immigrant gang member. now he had a history of arrests. the san jose police chief says california's sanctuary policies are to blame. roll tape. >> they're thinking of that policy truly would not have any effect on this, it really would not. at the end of the day it really comes down to sitting down with our policymakers to try to figure out exactly what type of individuals do we want on the streets of our county and in our cities. stuart: not sure i understand all of this. i will bring in tom homan, former acting i.c.e. director. tom, the police chief there seemed to imply they let this guy go because of the sanctuary city policy. is that accurate? >> absolutely. sb 54, the california state sanctuary law, prevents them from number one communicatingwise. number two, i.c.e. accessing

jails. honoring detainers or requests to have them be notified before they release them back to the street. stuart: we're always told that local police chiefs want sanctuary so that they can, that they can relate to the local community more easily? this blows a hole right through that. >> no, it is because, what you just said, what those police chief says and politicians say holds no water. they say if they help i.c.e. victims and witnesses of crimes that are illegal won't go to the police for help. that is, that holds zero water because unless they arrest that victim or witness, i.c.e. don't even know they exist. only people i.c.e. is interested in are the ones sitting in the jail that they have already chosen to take their rights away, take their freedom away, lock them in a jail cell. that is what we're interested in. this whole mantra, victim, witnesses won't come forward, that won't hold water. that is their political fight. there is no truth to that at all. stuart: i want to bring this to your attention, i want to make sure that you're aware of it

anyway. president will vote on -- senate will vote on president trump's emergency declaration. mitt romney joins five other republicans opposing president. which means the national emergency will be voted down by the u.s. senate. your immediate response, tom? >> shame on him, shame on others that are not supporting this president. look, they have to agree, unless you're ignoring facts, video, numbers, there is a crisis on this border. the president has a right to declare a national emergency. look, president obama declared national emergency on the swine flu when it killed 12,000 people. 72,000 people died overdoses coming across the border. that is not a national emergency? it is demoralizing to the men women on border, men and women like me served country so long, trying to enforce laws, don't support the president on number one responsibility, protect this nation. stuart: i have to tell you, tom, i'm very sorry to say this, looks like we're losing, i say we, i'm very much on your side

on this, i think we are losing the immigration debate. congress is not going to allow the state of emergency. you have got these california, the sanctuary state really hurting people. look at this murderer. i think we're losing. despite all that is going on, we're not winning. why? >> well, a couple things. number one, because the left is so good at putting false information, false narratives out. look, how many more people do we have to bury? how many law enforcement officers we have to bury? innocent victim like lady in california, sitting in her home by someone not supposed to be here? message by democrats, studies show illegal aliens commit less crimes than american-born people, that doesn't matter to me. what matters to me how many crimes could have been prevented if they weren't here? stuart: right. >> so i think the narrative and help with your show and other shows, getting truth to the american people, we'll not lose this battle. i'm not giving this fight up. i retired eight months ago.

i'm not giving up on the fight because it is the right fight for this country. stuart: good. come back anytime you like, tom homan. >> thank you. stuart: now this, california jury awarded what, $29 million to a woman who claimed johnson & johnson talcum powder gave her cancer. i want to know what that means for johnson & johnson. judge andrew napolitano is next and he will spell it out for me. ♪ you.

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stuart: happening now, irish prime minister we overrun a car -- a different story to irish name. arriving at the white house to meet with president trump. they will answer some questions from the meeting we think of not all be on tape and we'll bring you that the moment we can because they might be discussing some interesting topics. liz: saint patty's day is coming out. stuart: it is. march 17th. whatever you say.

[laughter] turned to the judges with us wearing a green tie before st. patrick's day. >> i forgot. johnson & johnson and one more step back. california courts ordered him to pay $29 million to religious claims j&j baby powder gave her cancer. the aforementioned judges with us now. >> you know why this number is so high? for the same reason -- the others worry is that yesterday an appeals court in missouri upheld a $4.2 billion against j&j for the same talk on powder. the core of these two cases is j&j is knowledge of the harm from the top on powder in its use of it anyway. that is at least the allegations by the plaintiff.

that's what inflame the jury. i realize that there is technical scientific evidence on both sides. you have two juries to believe the plaintiffs' antiwar dead enormous verdicts. stuart: small stood still to come. >> thousands more to come. for litigation and damages. you almost can't quantify the number. stuart: do you think it's deserved? i understand a tiny, tiny residual fraction of asbestos in this talk on powder. there is no scientific link between the tiny fractional amount and cancer. not to my knowledge. >> before .2 billion -- the lions share of that is punitive not compensatory. to punish j&j for putting this product out, can juries engage a punishment? yes they can.

enormous financial damages. stuart: i want to talk to you about the college scandal. a lawsuit was filed for $500 billion. half a trillion dollars alleging psychological damage to a student who didn't get into college and the lawsuit is against the parent. >> in california can make any claim for any amount you want. in most states you have to have evidence to prove the amount of your damages. stuart: judge, thank you for sorting out when out. more "varney" after this.

stuart: right on the dot. 11:00 eastern time. 8:00 in california. at this moment come in president trump's prime minister meeting with the prime minister of ireland. answer and question to see what they've got to say and you will see it here first. but first, that it be in my bonnet about the brexit mass. it is the revenge of the elites. they never wanted britain to leave europe and undermine the movement right from the start. i'm sure you're bored stiff by the animal's contradictory vote, anguish speeches by the prime minister and countless summit meetings. but if you cut through the chaos, what you see as the campaign to stop written. a campaign to reverse the original vote to leave.

the elites and media and business in particular called out all the stocks and they been successful. it is by no means certain that brexit will happen. we should pay attention to this because the same thing in my opinion is happening here. america's elites never accepted the election of donald trump and undermine his presidency at every turn. the deep state concoct did the mueller investigation which has now morphed into investigations of everything and anything he's ever done in his life. the media is the anti-trump megaphone. what they are trying to do is reverse the 2016th of come and just like the elites in britain are trying to reverse the brexit though. the elites may win over there. but they'll lose here. donald trump will serve the remainder of his term and with the return of christ. he he's done a pretty good shot at a second term, too. that's my opinion. the third hour of "varney & company" is about to begin.

♪ checked the big board. i said it all morning. it is a go nowhere market does start today. we are down 19 points. that's it. by the way, another brexit that this afternoon. this one would delay the exit until june of this year. what a mass. ron costner is with us, founder of the person group and i want to know if i'm right, this man, how does it affect it? >> it is a must. in june it will be two years since the referendum and you're right on. you put a bunch of countries together because the averages don't work. but it's been uncertainty. it's not healthy for the markets. europe is trading at all times compared to the uss 16 times. the uncertainty is out there,

but i've been on here many times saying just a little bit cautious. the thing that's been interesting to me as i look at different strategies and people are not chasing performance. i haven't been chasing performance for a while. it's a pretty positive thing that they stayed pretty balanced. i think people are paying attention to it. we have a slowing economy. and of course beating trump doesn't help either. just the general psyche. getting it resolved one way or another will be a positive for the global economy. stuart: okay, good. i want to show you a presidential treat. my administration looks forward to negotiating a large-scale trade deal with the united kingdom. the potential is unlimited. not because i was born and raised in england. it seems to be a great idea and trade. >> i think so.

trade in general. one thing donald trump has done. president trump is great. he says we fall asleep at the switch for a long time. it would be great to have a deal with the united kingdom in britain then all of a sudden let's have it be a little more fair and balanced back to the u.s. stuart: i know that you like to stocks paired first of all, triggered as their come away like it? >> 490 million viewers have been known with a push people off to other sites. numbers like expedia and priceline starting to monetize out where you can book directly through them. everywhere i go, they are likely to go on trip advisor and write it. people tend to trust trip advisor. we use it, i use it. it's down 50%. strong management we think the

company is going to continue to monetize the users. 490 million it's a big number. >> activision videogame, are they call of duty? >> i don't know. i don't play video games. long-term secular trend in just marketing and videogame and dave had a free user, that's how some headlines for them. i return on capital, good cash flow and i know our team thinks managements poised and it's also about 50% off its highs. >> we listen to you and we'll take your i.c.e. breaking news. another class-action lawsuit now there is a second lawsuit in california about the admission

kindle. two california college students are suing a top universities. >> class-action lawsuit against the eight universities named in the scandal basically saying those colleges and universities negligent in failing to maintain adequate protocols to stop this kind of thing happening. her degree is now now for as much as it was before because employers may now question whether she was admitted to the university on her own merit. if they judge the class-action data as you can see thousands of students jumping on this. stuart: ashes making an important point. the schools were not charged. it was the coaches. stuart: okay, got it. an update on boeing. the stock is down a little bit more. this of course follows the decision to ground the entire 737 max jet fleet. on your screens now, and

airlines from this country in their fleet. we just missed it. united southeastern alaska airlines their stocks are a mixed bag. 60 countries including america and canada have completely grounded the plane. some with national airlines like ethiopia have instituted a partial ban on. the airlines have grounded the 737. a statement from bowling support the president and the faa's decision and maintain the jet is safe to fly. let's bring in jeff flock because he's at o'hare international in chicago. looks to me like boeing has to be in damage control right now. >> true. we've been trying to track how much of an impact verizon flight. today a lot of flights canceled but don't misinterpret this. a lot of them appear is mainly

weather-related. there have been flights canceled. american just put out a statement right now that says that flies about 85 flight with the 737 max aircraft. united has been trying to replace those planes that have been grounded with other aircraft. we found numerous examples to numerous examples of bad that they're getting through. if you look at the screens in airports around the country is mainly that bomb cyclone that they call it as opposed to impacts from 737 grounded. i guess that's a positive piece. >> it was not much of a positive for days. thank you very much. back to you shortly. the green new deal getting slammed by labor unions. we've got the story for you.

voting against the emergency declaration for the border. senator tim scott later this hour. what is the think of the six republicans who are going to vote against the president. we are waiting to hear from ireland's prime minister talking about trade and breakfast and were told he is taking some questions. when we get that take you will see it. ♪

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stuart: i guess you could call a today's integration of how campaigns get worse for facebook. the subject of a criminal investigation. they will cut deals with over 150 companies like amazon apple microsoft and sony. to give unfiltered access to users data and without their consent here at facebook says it will comply with the investigation. the stock is down on the news back to 170 per share. labor unions not happy with congresswoman alexandria ocasio-cortez screen new deal. they wrote a letter to her and cosponsor ed markey's claiming it. they say it will threaten the livelihood of millions of union workers. republican from georgia. you know it's bad when labor unions slam something from the democrats.

it's got to be real bad, right? >> it is. but the fruition of what the democrats have been proclaiming for so long. but now you have somebody that actually believes you can accomplish all of these crazy ideas and it scared the democrats. their whole idea of global warming in the radical side of that in pushing all this government regulation. they use that as a way to empower government. they never wanted something that would address the issue because there's nothing we can do in the u.s.. were not the polluters of the world. you get some an ideologically driven with crazy ideas that is getting the momentum it scares them. they are beginning to back off a little bit. stuart: they're surely no doubt in your mind. there's no doubt in my mind that we will never see the green new deal it is currently thought out. it will never be put into this. or am i wrong? would you think?

>> display surprises me sometimes. there's no way you can effectively do it. we'd be living back in the stone age. the founder of greenpeace when he came out and said will be cutting down every tree in the world to actually provide heat and is exactly right. i've been making a statement for the five years i've been here in congress is that the epa and their radical agenda would actually create more pollution than it actually fixes. again, the whole issue has been empowering government. not doing anything about the government. stuart: i want to know what your reaction is because you're the house financial services committee and i think you were in the committee room in the chief guy at wells fargo is being questioned by alexandra ocasio-cortez. she tried to link wells fargo to kids in cages. i think you are sitting there watching that. >> i was. in fact i was the next one to ask questions after her. have you not figured it out yet?

it's feelings over facts. it felt good and sounded good to make those comments. there was actually no factual basis whatsoever. but she made a good point. sushil bush into the questions before her. >> successful in slamming a banker. >> and so did most of the other democrats on there. the hearing should have been about wells fargo. they did some very bad things. pretty egregious breaches of law and policy and they hurt their consumers. our approach was are you fixing things? are you doing better? democrats were either trying to condemn them because they provide financing for someone who sold guns. so what aoc did was try to basically demonize business, which we know a lot of them want to do anyhow. she was right in line with most of the questioning from the democrats died. hers was just a little more practical. stuart: next time we'll put the camera on you.

thanks for joining us, sir. appreciate it. the dow has turned positive. down a little most of the day. now were up a little. but we'll take it. task was model three collects more data on drivers than any other car. they track your speed, when you break, to curb airbag goes off and recharge your task but in the car is in the cars constantly use their cameras to gather information how and where you choose your car. meaning if it passes you on your street your image can be shared with us or without your consent. doesn't affect the stock are the stocks are little higher of two backs but it just makes me feel big brother. actress is set to release a million dollar bond for her role in the college admissions candle. two developments on that today. two students filed class-action lawsuit against state

universities involved in the parent and former teacher by the $500 billion lawsuit in san francisco accusing 45 of those defendants and that would be parents and coaches i believe are causing emotional distress by taking away other students chances of getting into college. later this hour we'll talk to campus reform people. they say this is a slap in the face to all the students who work hard to get into schools like you should. if you'd like to get a high-paying job, no skimming of admissions are gaining a ton of student debt to stay tuned. the highest paying jobs that do not require a college degree with. ♪

trained to work out to get that tape that we promised you that the president and the prime minister of ireland are inside the white house. they're holding it now. we understand that president trump as answering a lot of questions. we don't know what those questions are. we don't know the subjects that were covered or can it get that tape. seconds away from that tape. i don't think it's got anything to do with the white house and the president. something else going on but is just a minor move to the upside. here we go.

the tape is in our hot little hands. the dow is still positive up seven points. i've got that tape coming. there it is. let's go. >> i'm not going to comment on brexit. it's tearing a lot of countries apart and it's a shame it has to be that way. i think we will stay right in our lane. were doing fantastically of the country our economy is booming. were the envy of the world or at other economies are not doing well and we are doing record business. we're very happy about that and it's really great to have the prime minister of ireland with us. [inaudible] >> well, he's got a lot of hand movement. i've never seen so much and movement. is he crazy or is that just the way he acts. i've never seen hand movement. i watched him this morning doing

some kind of a news conference. i've actually never seen anything quite like it. i'm sure you'll agree. [inaudible conversations] >> i just say whoever it is all take them on. him or her. whoever it is i will take him or her on. with the economy doing so well with all the things we've done, the biggest in his or her country, with people having a lot more money in our pocket. 401(k)s in record numbers. they've never been considered great investors by their wives or by their husbands and other considered great investments. the market is hitting almost i have all the records. every single record for the stock market. i think it's going to be tough to be. if elected african-american, hispanic we have the best in the

history. we have the best records. it is tough for some, but whoever it is they make the difference whatsoever. i'll be coming at some point during the year. it's a special place [inaudible] >> i hope it's going to be a shorter period of time. they have to find out what it is. i'm not sure that they know. but i thought we had to take a cautionary route to the grounding of the plane yesterday was a big thing as you know you're involved with boeing. it is a great company. truly great company and hopefully they'll figure it out very quickly.

it's a big decision. also one of our largest exporters. one of the truly great companies of the world that has to figure it out fast. they're under great pressure. [inaudible] >> while i was. predicted he was going to happen. i was right and people laughed when i predict that it and they won by about two points. people were screaming. that was the day before. people were screaming and i said no, i think it's going to happen. people were surprised because president obama made the opposite prediction and i was right. and i will tell you i'm surprised at how badly it's all gone from the standpoint of the negotiation. but i gave the prime minister my ideas on how to negotiate a peer

she didn't listen to that and that's fine. it could've been negotiated in a different manner. i hate to see everything being ripped apart right now. i don't think another vote would be possible because would be very unfair to the people who want so that will be tough. but i thought it would happen. it did happen and both sides are cemented in. it's a tough situation. there is no reason for that to happen. it could've gone smoothly. unfortunately it didn't. and actually common on the border of ireland is one of the most complex points. i think they're going to probably have to do something. they are in the midst of a very short period of time.

[inaudible] but i would like to see the whole situation with words that work out. we are talking about trade and we can do a very big trade deal with the u.k. also renegotiate our trade deal with the european groups and literally individual nations and also it's very sad to see what's happening there. i'm sure you agree with that. do you have any feeling? would you like to express your feelings on brexit? >> we have a different opinion. i regret that it's happening in the u.k. was really important part of the european union. the most important thing for us is their decision to leave shouldn't cause any problems in northern ireland and we should have a hard order. and also we want to make sure

we're frictionless trade between britain and ireland. i think it would be a few years until the united kingdom sort itself out. they are available to talk trade. >> we're talking about trade with the european union. they were unwilling to negotiate with the obama administration and they were unwilling before that. but they are willing to talk to us and if they don't talk to us we are going to do something that's going to be pretty severe economically. a lot of their products coming in because the european union treat this very, very unfairly. in the house for many years, for decades. they treated us very unfairly. it will work out. otherwise we will do something that will be good for the united states. i don't know what the vote will

be. it doesn't matter. we'll probably have to veto. it's not going to be overturned. the legal scholars all say it totally constitutional. it's very important. it's really a border security vote. the vote for no crime so we have a border situation also slightly different from yours. ours is not actually complex. we have very bad laws that are archaic that were put in by democrats and republicans didn't fight hard enough. we have catch and release and we have chain migration and all sorts of things that are horrible. the world is laughing at the laws that were passed with respect to. we are going to have a very strong border very soon. i don't know if you see it. i don't know if you want to see it that we are building a lot of and a lot of contracts tomorrow

for additional many miles of wall. we are going to have hundreds of miles of wall up very soon and it will make a big difference. we also have to change the laws because whether it is visa lottery, chain migration, catch and release or anything else they are horrible, horrible laws. the border patrol in i.c.e., but they've been doing border patrol and our military has been. we are building a lot of hardwired areas where people are coming through. we've built some temporary fencing and done permanent fencing with the military. the border patrol, they are capturing tax chain, doing whatever they have to do. thousands of people.

75,000 last month. they are apprehending, whatever mikey is, but they are apprehending thousands and thousands of people a month. and we are catching them and keeping them. at a certain point we'll have to do some relief because we don't have the funds to build the space because we have ridiculous laws. in other countries say sorry we have to leave. because the laws are so ridiculous. we have to give them a trial. so we send them into the country when they're supposed to come back they never come back. the most ridiculous set of laws, the democrat fall. we want to change them. unfortunately we need their votes, to when i think it's going to be a great election

issue. anything else? [inaudible] >> now, i think they're the opposite of coral. they become cruel because they're so ridiculous it hurts people. it does the reverse of what they're supposed to be doing. they're actually meant to be the opposite and they're hurting people. they're really hurting people. i think we have done an incredible job. we are apprehending record numbers of people. but if we had ordered security, we have the wall. a proper wall which we are building now as we speak and we are giving a lot more funding as you know in what were talking about whether it's positive or not. i'll do a veto. not going to be overturned. we done a great job at the border throughout pretension. we shouldn't have to be put in a position of apprehending 7500 people a month.

thank you all very much. prime minister of ireland varadkar, thank you very much. [inaudible conversations] >> we are doing very well with china talks. we will see what happens. we're not going to make it. i would say that we are moving along at a very high level. we're getting what we have to get and i think we are getting a relatively quickly. the china talks are moving along as to whether or not, but they are moving along very well. [inaudible] >> thank you very much. [inaudible]

thank you, everybody. we may very well be doing that. >> you still answering. he has a unique way of handling the media appeared rather different than any president i've ever seen. here's what he just has to say. he hopes they can figure out the problem real fast because they're very nasty situation. boeing stock is still down. on brexit, the president said prime minister may didn't listen to my ideas on how to negotiate. didn't listen to me. that's why they start. he once brexit. you want to see them live and then he would like to see a significant trade deal between

the u.k. in the u.s. at the very end of the tape, he said that the china trade talks were moving along at a very high level, getting it quickly. that's what he had to say. >> we talked about imposing i'm assuming more tariffs, certainly the car import. he made that threat to the e.u. we are trying to negotiate but we will impose tariffs. stuart: dan hemminger was sitting next to me. when you heard that, the market went down a little bit. >> market has been so sensitive to the way these trade talks are going, it just goes up or down. deer are tied to upset the market. the idea that you're going to put a tariff on a declining

company is not going to help the markets. but it's got a get this deal at the chinese. it's interesting at the end where he sat i'm not promising anything. he's kind of been promising something. if you don't get the china deal, our economy could suffer as well. stuart: he was talking tough. then the president said wait a second comment e.u. has been very tough with us. they will be severe penalties if they don't start negotiating. the e.u. has a free trade deal with canada, chile and south korea. why don't you have free trade with the u.s.? 25% terrifying steel and aluminum. stuart: would be nice if they could move towards a free trade deal. the only trade as much as they possibly plan. >> we have someone getting into the campaign. this president is a strong

economy getting into the next election. stuart: while i've got you with me, you have a piece in today's "wall street journal" as you do every thursday called wonderland. socialism gas, be afraid. give me 30 seconds on what you're talking about. >> i'm talking about the fact the person always in the news is alexandria ocasio-cortez. one way or another she and bernie sanders has moved the democratic party to the left. i'd argue the obama presidency. they have more or less adopted the view and if perchance president trump were to lose the election in 2020, democrat gets into the white house. we are going to have not a socialist president be, but one that is just socialism because the party has been driven almost intimidated into these positions. stuart: any candidate will

introduce a soft version of socialism to america. >> elizabeth warren has accountable capitalism not. things like federal charters, line workers choose 40% of board members. i think extended my ability suggesting that the wells fargo ceo. that is the sort of thing the democratic party would bring into a new presidency. stuart: you are scaring me, lad. thank you, dan. republican south carolina. sir, seven of your republican colleagues say they're going to break with the president on the national merchants to get the border. mitt romney, lamar alexander said they are against the emergency. the president just said he might have to veto it. what are your thoughts on a split republican party in the senate? >> very unfortunate to be honest with you.

one thing that is crystal clear to me. we have a national emergency on her border. we could have 11 million illegal immigrants this year. that's an emergent v. for any of our colleagues to not acknowledge the emergency, congress ceded the authority to declare the president of the united states. he is within his authority to do so and should do so in order for us to achieve the goal of securing our southern border, reducing the illegal crossing and deal with the illegal drugs coming under the border as well as across the border and designed to not be seen by the border patrol. this is a crisis on her border. stuart: yes, sir. you're in the senate's entrepreneurial caucus focusing on small business and use a new startup rates are at a 30 year low.

can i ask you where that number comes from, sir? >> we have seen that the number of startups have been taping for a number of years. they're starting to flow in the right direction because of the tax cut. 20% reduction gives us an opportunity to see that number actually reversing itself, which is really the good news we've been able to identify the upper to track during the small business optimism has not been as high in more than three decades as well. stuart: a remarkable number. senator ken scott coming thank you for joining us. president trump news this hour. trade talks with china are going well. he hopes jets will only be grounded for a short time and that he might have to use the veto to get his emergency declaration at the border through. he probably will. now we are up seven points. return positive a few moments

ago. a very strong upside move. i'm going to call it flat to slightly higher. the average mortgage that homeowners are getting at an all-time high. wait until you hear how big the average mortgages. you're not going to believe this. we'll be right back. ♪

stuart: we just heard from president trump taking questions from the media addressing a very good subjects. what was your number and take away? train for the president will play hardball on trade. twenty-five-cent tears. prime minister of the u.k. theresa may -- we are cemented in was the word they used. stuart: i liked his idea of a big trade deal between britain and america once the birds are out of europe. he wants the negotiator. i think it will be a traffic idea. but from without? more trade is good trade. dow industrials turn around a little. we are up 14 points. maybe that's not something to do with what the president had to say about china trade. back after this.

termites, feasting on homes 24/7. we're on the move. roger. hey rick, all good? oh yeah, we're good. we're good. termites never stop trying to get in, we never stop working to keep them out. terminix. defenders of home.

stuart: i said this a few times. this is a great time to be an american worker because you can get a very high paying job without a college degree. lucky for you we've got the list that proves it. highest paying job in the country without a degree. nuclear power reactor operator. median paid $93,000. i'll take it. number two, distribution managers. median wage of 92,000.

number three, police and detective supervisors 87 k. power distributor number four in rounding out the top five, detectives and criminal investigators. just shy of 80,000 per year. i'm not qualified for any of that. they just reading, 607,000 at an annualized pace in january down 6.9% from december. mortgage rates for .31%. down two better than a 30 year fixed. how about that. very low numbers as far as i can say. they have reached a record -- this is the average mortgage in this country. $354,500. i am shocked. seems kind of high to me. new york city real estate guy douglass solomon. i know you do deals in new york city. $300,000 is not very big for

you. what were you shocked to hear that? >> i was. it shows the market. overall the economy is still doing well. that's good for every market around the country. >> if you're paying off that says that the mortgage, that means you're paying a lot every month. >> it is the chair not doing much when you feel good about the market. stuart: i've got a saw you i was shocked at that. 345. $354,500. and you're not shocked at all. >> i'm really not. if you look at all the fact there's people are still feeling good because obviously negative news if you want to focus on it, but overall look at the market and there is a lot -- stuart: you've got to be a really successful guy because you are beleaguered.

governor cuomo, new york governor wants the states to% property tax cap to stay where it is permanently. is that what it is? 2% cap on property taxes? >> six years is that they had instituted. stuart: a cab at the previous buying price. >> i think it's the assessed value. why is he doing now? >> i think he's trying to -- taxes are getting out of control. not exactly known for low taxes in general. he's trying to make it where we're competitive, which is more. stuart: as a response to salt. you can no longer deduct your state and local taxes. new york is getting clobbered that this is the first time anywhere in america in any of these big tax states were somebody lower taxes. stuart: i don't think it's because of salt because it would have been before.

am i right that there has been an exodus of money for new york city because of salt? >> that's right. the friends i have in palm beach and other low tax or no tax states they are definitely doing really good business right now. stuart: is there a problem in new york state and new york city? >> not yet. we've had a reset for the last five orders. they've been going down so there's a problem in terms of the prices are going up but it's not a problem. it's just a free setting. if you continue to have an additional tax system, you know, if there's no change to the rules, and things like that you'll see more people leaving the city. stuart: i think you will. appreciate you being with us. the college scandal.

actress sub to release a million dollars bond for her role in the scandal. two new developments here. two students filing a class-action lawsuit against state universities and a parent and former teacher fired a $500 billion lawsuit in san francisco which accuses 45 of the defendant and that would include parents and coaches i believe i'm accusing him of causing emotional distress. okay, $500 billion for that. next up, cannabis reform people and they are mad as hell. we'll be right back. ♪ want more from your entertainment experience?

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stuart: two lawsuits announced in the past hour from the college admission scam. number one, $500 billion suit against the parents and coaches involved. number two comic couple of college students suing 800 universities involved. bring in emma michelle from campus reform. give me your reaction. when you heard about the scandal you tell me what she thought. >> first of all i can't think of anything more embarrassing than

getting my parents involved in my college admissions process, having them greased the wheels and i pay someone to take my s.a.t. for me. i get secondhand embarrassment for the students, but also this is such an insult to students to work hard and do things the right way. the leadership institute reform. the students work super hard to get into colleges and they're in school to prove their merits. this is an insult to all neil: would you accept that wealthy people, just people with good money, have an advantage when it comes to getsing their children into college? i mean they can pay for college prep courses, pay for s.a.t. advice? the rich have an advantage. will you accept that? >> i don't necessarily think that wealth is the issue here. not every wealthy family does this horrible act to get their gets into school. stuart: i'm not suggesting that. i'm not suggesting that. >> okay. stuart: a lot of parents with money will use that money to get

their kids into school. not bribing anybody, but paying for expensive special services. they have an advantage with their money. >> i definitely believe there is advantage there when you're able to hire people to tutor your kids but would i argue those parents worked hard for the money to help their kids get into school. i have a major problem with fraud, which is what this is. this is not representative of most students trying to get into college. this is a sector of society that has decided it is okay to circumnavigate our laws. bribe people to get what they want. that is not fair. not what the american way is about. stuart: you know what got me, these people are the elites? they are telling us to live, and that is what got to me. last word to you. >> the great irony of this story, hollywood elite tend to be very, very liberal. colleges and universities making headlines for years disparaging capitalism, looking down on the wealthy, here they are under the table taking checks from the

wealthy so they can grease the wheels to get kids in who weren't able to get in on their own. stuart: we both agree with this. michelle. emma, i'm sorry. we're both unhappy, correct? >> yes. stuart: there you go. emma, thanks very much indeed. thanks for being here. president trump will be heading to capitol hill for friends of ireland event. big day in politics and money. we've got it for you. ♪

stuart: we have one minute left in this fantastic program so we're going to ask our noble colleagues here, what was your favorite story of the last three hours? >> the toyota tear gas story. they have designed a car that will release tear gas if an intruder takes it. can you imagine driving a car with tear gas in it. i wonder if it dispenses visine. stuart: give the guys credit. it doesn't have to disperse tear gas. ashley: you can have it pumped through the ventilation system, if someone carjacks your car i assume they're is little button. dispense martinis says the producer. stuart: seems to me there is potential problem here f you're standing there, you might press

the wrong button. ashley: yes. stuart: instead of getting a nice scent you get tear gas. liz: or your teenage kid trying to take the car. stuart: don't mention that. time's up. thank goodness. neil of the, it is yours. neil: president of the united states is on capitol hill with the friend of ireland luncheon. always nice when the leader of ireland comes here every year, he or she is. meantime, we are getting updates as well on post this airline sidelining of 737 super jet. now how many are going to be sidelined? we don't know. we know it interrupted boeing's plans to sell upwards of 5000 of them the last few years. that is one thing weighing on th