human feces from the bay to the ocean, the quality of life in that city is horrific.well. what a story. we will keep you unsaid to talk about this. have a great day. "varney and company" begins now. xi jinping stuart: good morning. what exactly is going on in the middle east? something seems to be up. the state department has issued a travel warning on iraq, don't go there and the withdrawal of all nonessential staff from our embassy in baghdad. aircraft carrier battle group is positioned close to the gulf. nuclear capable b-52s of been deployed. a saudi oil pipeline was damaged by a drone attack and saudi oil tankers have been damaged too. is iran lashing out?

it economy is collapsing because america has drastically cut exports. the word confrontation is out there. it is worth pointing out iran is not alone in feeling the heat from america's foreign-policy. cuba announced rationing food and other essential items. venezuela's oil production and food supply has collapsed. china today reports a clear slowing of its economy. they are feeling the pain of america's tariffs. let's get to the market because this may be playing out. a decline in stocks at "the opening bell". we are up 200 yesterday, we will lose almost all of that gain as of half an hour from now. the 2019 rally appears to have stalled. a half hour ago we got the word retail sales fell in april. that is not helping stocks. look at this was the key interest rate sinking.

this could be a warning signal that something is up in the middle east, a flight to safety. it could be a reaction to the week retail sales report. our economy is slowing. we have a lot more still to come. falling american birthrates. the president goes after the green new deal and here comes lucky. china's answer to starbucks. "varney and company" is about to begin. >> some in this country are more determined than ever to put american energy out of business, you know that. over 100 democrat members of congress sponsored that green new deal, a radical plan if you ever heard it. the green new deal is a hoax

like the hoax i just went through. might be a bigger one. mine was pretty big. mine was unlimited. stuart: we will call that donald trump slamming the green new deal. he called it a hoax. more on that a little later on this program. back to foreign-policy. from venezuela, cuba and iran they are reeling. maybe something is up in iran. liz peek, i want to focus on iran. their economy is collapsing. it's possible they are lashing out. is something up? >> we had many credible threats that they intend to attack infrastructure of the us or our allies and we saw that over the weekend with attack on the saudi tankers and two drone attacks on pumping stations. iran is under pressure because donald trump has applied sanctions again. the economy is down 10%. economy, currency is under tremendous pressure. like cuba and venezuela they

are rationing new products. they had some demonstrations against these problems which is scary. hezbollah has been asking publicly for money. that is how dire the conditions are in iran. i think the question is here we are with major enemies under pressure. does that work or is the appeasement policy obama pursued better? we did that with china, the wto in 2000, cuba more recently, we have done it with venezuela as well. that does not change behavior. trump wants to change behavior? will work? we hope there will not be any kind of conflagration in the middle east. at this point i think what trump is doing is backing up economic pressure with literary pressure. >> i think investors are a little worried.

something might be up that explains this flight into the 10 year treasury with the yield all the way down to 2.3.7. >> ashley: and lending money to the german government. >> it is things like safety. there has been an inversion of the 3-year yield is this we converted again this week which is concerning and predicated. stuart: a little trouble under the surface. >> north korea is a hotspot again. central america, south america is a problem with venezuela on the verge of collapse. it is not a calm time. stuart: who better to bring in

than shah gilani who has said the market will keep going up but i don't think you are saying that now. >> we don't have much further to go. there is more volatility. we will see increasing volatility now until any resolution on the china trade front and that could be a long time. that doesn't bode well for the market. we went up too fast and after the october december swoon. a lot of stocks made new highs, nasdaq made new highs, s&p made a new high. this is partly profittaking for now. if this continues we will see nets selling in that will be a problem for the market. stuart: retail sales down for the market. >> gdp numbers were great in the last quarter and they should be good, earnings have

been good. consumers backing off a little bit. stuart: stay right there. another big story i want to get into. do you have babies born in america more than anytime and ronald reagan, not the birthrate, the birthrate is way down. >> 3.79 million births, that is down 2% from 2017, don't four years in a row. the reasons being given including teenagers and unmarried women having fewer babies, lower hispanic fertility rates and women obtaining college degrees. what does this mean? the fertility rate has fallen below the replacement level. the workforce is too small for the retiring segment. we have seen it in japan and elsewhere. it is not a good trend. >> a lot of modern societies, you have more and more older people retiring, being

supported by fewer people working who are in turn having ever fewer babies. an impossible situation. japan is in dreadful shape because of this. >> japan's immigration policy. what this calls for is a sensible self-interested immigration policy because we have jobs available. in europe we had the same issue, no jobs. >> you put your economist hat on for a minute. lowest birthrate in 32 years. what does that mean for our economy? >> it will translate a higher inflation and require an increase in labor costs because of fewer labor and workforce shrinking, there will be more wages to get them and as the economy grows we will have no inflation anywhere right now but that can change in a few quarters or a year and a serious problem.

>> with older folks leaving the labor force and younger folks, and it was a concern. >> the birthrate is falling. we have more. robocalls. news on robo calls. the sec is going after them. hillary von has been tuning into this. how is the sec going to stop robo calls? >> they are allowing phone carriers to do this by default. it is not something that already exists and now phone carriers through this declaratory ruling are going to be able to block calls by default and there's a lot of different options consumers can pursue. you could have your phone companies have a white list, you're only receiving calls from your phone contacts and by default they block everything else. some of the technology would be similar to your email diverging what they judge as spam to a and folder. they do the same for phone

calls you are getting, this could happen quickly, june 6th the declaratory ruling will go into place and shortly after that they expect phone companies to get on board. this is also acquiring safe harbor for carriers so if they accidentally block a call that makes the consumer upset or the consumer wanted to receive, they are protected from any liability and that end. and also exceptions for emergency calls. they will make sure those calls go through and it is key to a white list part, and you can make sure they are only receiving calls for contact you can address. >> many have tried, few if any have succeeded. hillary von right there, good stuff.

futures in 20 minutes time, down again, up 200 for the dow yesterday, down at least 160 when we open this morning. microsoft warning about a, quote, monster computer bug, could be as bad as a massive virus that infected 200 systems around the world two years ago. premarket down a little. donald trump wants to spend $1.6 billion to get astronauts back to the moon by 2020. top diet nasa joins us. what are we going to do when we get there? the president says we are going after venezuela and iran by targeting their oil exports. part of the reason he wents america to be energy independent. are we there yet? we will ask? varney and company just getting started.

>> in his venezuela and iran we are now holding dangerous regimes accountable by denying them oil revenue to fund their corruption, oppression and terror.

>> in louisiana yesterday talking sanctions, oil sanctions against venezuela and iran. the deputy secretary at the energy department, the president wants to be energy independent. that was the purpose of his visit yesterday. are we energy independent at this point? >> yes we are. thanks for having me, appreciate the opportunity to share some good news for american energy. we are energy independence. america is the world's largest oil and gas producer which was unimaginable a few short years ago. >> the president was at the export terminal yesterday. this is something that is going to grow. we will be major exporters pretty soon. >> we are and we are today as a matter of fact. the facility the president visited yesterday was number 4 in the united states. there are a few more facilities

like a coming online. we will continue to export lng around the world but this facility the president visited yesterday is particularly impressive. to give some sense of scale of this facility, it is alone able to satisfy 25% of the imports brought to the european union in 2018. >> that one energy terminal could give europe 25% of all the gas that it needs. that is an element of foreign policy. isn't it? the europeans are getting their gas from the russians. we don't like that. we could replace the russians. >> it provides not only energy security for the united states, energy independence, does equate to energy security but also provide security for europe as well and for those countries that are not concerned about their security it does provide them with energy options. which you know very well

competition means lower prices and that is great for consumers. stuart: donald trump called the green new deal a hoax. what do you say to that? >> i think is correct. the goals of the green new deal are laudable. everyone wants a cleaner environment. the approach that they use. is silly. the trump administration supports a clean environment. we choose to do so in a different way. the president has directed us to approach energy with and all of the above strategy which we know works because we are seeing emissions in the united states go down. between 2005, and 2017 emissions and dropped 14%. carbon emissions. the economy has grown at the same time so we know the approach works and that is the difference between our approach and the approach of some in congress. stuart: thank you very much for joining us.

a lot of what you are saying is not known by most of our viewers and that's intriguing. look at futures wednesday morning, how do we open? we are going to lose all of yesterday's gains. we are down 200 points. >> industrial production came down more than expected so more bad data. stuart: industrial production down retail sales down, stocks down 200 points on the dow industrials. next we deal with tesla. we have a guest who says it's problems are getting worse by the day. survival in the medium-term is in doubt. he is on the show next.

>> are your screens, tesla, the stock premarket down $3, 229. wall street journal columnist charlie grant who is inclined to tesla. you say they're running out of money, running out of time and their survival is in doubt. >> the a tick is unkind and tesla raised $2.7 billion in capital earlier this month and that is a good start. they need more cash than that

and liability catches up with him. >> they are burning through it. where is it going to >> $300 million goes right back to the bank as part of the deal. it is a hedging cost. stuart: is it that a large chunk? $2.7 billion and you get $300 million to the bank? >> yes, that is a lot and we have that maturity coming up later this year, incentives. stuart: and a big chunk they have to pay out. >> tesla has been under spending on capital expenses, $280 million in the first quarter. stuart: you are on the show a couple months ago. >> in october. >> they got real trouble and tesla stock this calendar year is down 30% so you are right basically. >> it is nice to be right once. stuart: i you write again because you're questioning their survival in the next 6 month. >> i don't think the survival is in question that short-term. they might need to go back to

the market again because the money will go faster than people expect. the question is what terms can you raise money on. when the growth story was going on tesla could raise money wherever they want. i'm not sure how true that is anymore. stuart: is elon musk an asset to the company? >> it is complicated. when tesla was a story he was the best asset any company had. now tesla is a mature business and they need an experienced operator. not sure they've got that. >> has the tax credit for electric cars that are new? >> it has not. and because they sell more than other competitors they are up against the limit under the old rules and their competitors are not. volkswagen hasn't sold many cars in the us. they can get the tax credit tesla used to have. it is not as big. stuart: charlie grant, you were right before. i wonder if you are right again.

only time will tell. thanks for being with us. it will reverse yesterday's 200 point gain and look at that. nasdaq down 60. back in a moment. hey, who are you? oh, hey jeff, i'm a car thief... what?! i'm here to steal your car because, well, that's my job. what? what?? what?! (laughing) what?? what?! what?! [crash] what?! haha, it happens. and if you've got cut-rate car insurance, paying for this could feel like getting robbed twice. so get allstate... and be better protected from mayhem... like me. ♪

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stuart: look at this. this is oklahoma city. you are looking at devon tower. you've seen a large basket believed to have a window washer or more than one window washer in it swinging wildly out of control, at the top of the tower, dangerous situation, firefighters working to access the basket there. that is a rescue in progress. watch out starbucks, china rival goes public on the nasdaq. what have they got going. >> they call a starbucks killer because it has only been around since 2017 and they're looking for a lot of expansion. 4500 stores at the end this year compared to starbucks with a lot of investment in hopes and dreams in the china market. pricing this ipo, 15, $17, some say it is cheaper than starbucks. it is 9-10 compared to

starbucks just trading at 221/2 and they are winning the chinese market because they know what the chinese like light cream cheese coffee and green jasmine t. stuart: starbucks is $4. i am looking into that. 9:30 eastern time, ladies and gentlemen, precisely 9:30 wednesday morning, check the big board in the get go, we are down big time, 148 points, have a percentage point. all the down 30, we are down 152. apple is the biggest loser. what percentage points of we got? it is don't have a percentage point, the nasdaq, watch out, a bigger loss percentagewise, 47 points lower, the best part of

2 thirds of 1% down. here's a key indicator, the yield on the 10 year treasury, your baseline interest rate down to the lowest level in 6 to 8 months if not more. 2.37%. this could be a flight to the safety of us treasuries as things heat up around iran in the persian gulf. i need help, always do. shah gilani is with me, susan lee, ashley webster. two economic reports, retail sales down in april. industrial production down as well. i call the negatives. is the us economy now problem for american stock market? >> morgan stanley has a report saying they think it is, the market is not pricing in the degree to which the economy is slowing. that the question, how much is priced in. look like things are slowing. the key, we saw the 10 year treasury yield,

the competition isn't looking great. if we see signs of further weakening in the economy there's a good chance of a rate cut before the end of the year. which would be supportable stocks. doesn't follow that because the economy might be cooling but the market is in trouble. stuart: that is interesting, same question. is america's economic performance problem for the stock market? >> it is a problem. i don't think the 10 year is a reflection of what happened globally. it is a religion of the economy slowing and the fed actually looking at cuts sometime this year and that is a reflection in terms of the economy will have an impact on the market. stuart: hold on a second. are you buying anything? >> know. i'm holding off on anything. stuart: shah gilani -- >> i don't think we are anywhere near there yet. this market could go 10% lower. >> let's look at auto stocks, retail sales fell for the second time in 3 months on auto

sales falling and industrial production down 1/2% because they are not building as many cars. the auto industry is going through a lot of trouble. and the american consumers. stuart: tesla at 227. we have a wall street journal guy at 229 and now they have opened and they are at 227 and moving on, china's economy shows signs of slowing down big time. does that give us leverage? know. it is irrelevant on this. >> our economy slowing down? i tend to think the story of the slowdown is overstated because this is a $13 trillion economy. how fast was our economy going? >> with retail sales in 13 years. by every metric -- >> better than the growth we had when we were there size. it is slowing because it is larger. but not quite as dire.

stuart: not a factor in today's market. let's move on. look at apple. bank of america says the price of an iphone would go up 20% if it were made in the united states as the president suggested. that is never going to happen. >> highly unlikely. the supply chain is one of the reasons it is an extensive as it is as if the supply chain was recognized. apple has a lot of problems and i think the supreme court clearing is not the problem. stuart: you said sell that thing a couple weeks ago. >> sell it now and sell it all. i have run for several years about apple. for one civil reason. it was priced her death when the company was quite strong. it was selling a deep discount to the market and peeked above the market earnings ratio and sold at a slight premium market. i don't want to pay premium prices for apple.

stuart: 187 on apple. >> you have to raise prices by 14% in order to counter the impending us china tariffs coming in. stuart: up and you have bad news for apple, 187 is the price. check the big board, we are 5 minutes into the session, your down 160 points. big tech, they are all down. apple is down 187, facebook is up. apple is up $7, microsoft down a fraction of 124. how about ali baba? i own a little bit. i expected a big gain because they had a stellar report on profits and revenue. they are up but not much. $1.53 at $176 a share. mcdonald's, i doubt stock, leaving it up to its franchisees to decide which breakfast items to serve all day. in a big-time downmarket mcdonald's is close to $200 a share.

the price of oil, no impact from the rising tension in the gulf at all. $61 a barrel. the price of gold, could be some response, now $1300 an ounce. not much of a bump bearing in mind what is going on around the world, $1500 an ounce in gold, the coin yesterday hit $8000 a coin. this morning at 7900 per coin. doubled this calendar year. >> benchmarks for fear and lunacy. >> it is called diversification in other languages. stuart: you didn't like that comment. >> it is diversification, may be smart in other people's words. stuart: you have character and personality. facebook changing its rules on live streaming following the mosque shooting in new zealand. any idea how this is going to

work? no impact on stock whatsoever. >> how to interfere when things shouldn't be posted. don't know if they will ever get it right, too many algorithms that can be applied. it is a problem. they are not going to resolve this anytime soon. >> anybody that never posted anything about terrorism or extremists you will get kicked off live streaming for 30 days. stuart: a video like new zealand. >>. you from having a streaming service to post videos on. stuart: i don't know how on earth you can police a site with $1.56 billion -- daily uses. how do you police that? >> you by $1.5 billion of stuff in an individual account, 20% plus top line growth. this is the story about

facebook. how do you allow us to do terrible things to each other on your platform. stuart: the stock is up to dollars in a down market. two stories on uber. the company rolls out a quiet preferred feature for customers with you can signal the driver you don't want to talk. more importantly, uber launched a saudi bus service for religious pilgrimage. they are going to carry harsh on their buses. the stock is at $40 a share. and it is going and didn't do it. and amazon, is this the story of the day? the amazon story of the day for

sure. breaking ground on a $1.5 billion air hub. and going after walmart with this one. >> we know they are getting into delivery. they will increase their fleet and there will be competition for ups and fedex. amazon is coming. stuart: jeff bezos is driving that tractor. ashley: the most fun he has had in a long time. stuart: you mentioned that air hub is competition for fedex and ups. fedex is down 1% or 11/2%. ashley: why not? stuart: espn teaming up with caesar's to put a studio in one of caesar's property in las vegas, but what are they doing? it is a betting hub. and they are going to put it on tv.

>> this plays into the espn plus streaming service. think about what is happening with disney with control over who, espn, sometimes they have their little funnel going, family programming, not talking about the adult programming but are rated sports programming and business. stuart: look at business stock in a down market. thanks, everybody. 9:40 eastern time, good stuff, gentlemen, appreciate it. check the big board, down 150 points down for the dow industrials. a little more than half percentage point. the nba new orleans pelicans after winning the number one pick in the draft lottery means they will get a chance to pick

duke sensations zion williamson. the nba draft takes place next month. san francisco, the first city to ban police from using facial recognition software. the judge coming up on that one at the 10:00 hour. bernie sanders and other democrats want america to be more like europe, but next we have a guest who says going down that road be bad to middle americans. we will be back. at mercedes-benz, we make every vehicle

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stuart: 14 minutes and, down 167 points come almost completely racing yesterday's gain. bernie sanders wants america to

be more like europe but middle-class income over there is not what it is here and we have proof of that. the author of the book the upside of inequality is with us and that book is all about that. lay it out for me. i can tell everybody middle income people, middle-class europeans and joy nowhere near the standard of living of middle-class america. spell it out. >> the most prosperous economy, germany, and americans earn 30% more. it has grown to 30% more today. if you dig deeper into the numbers, americans work longer hours but they have lower test academic scores, if you just for all of that on a per hour basis for a comparable person in the united states 20% more per hour than a german does at the median and the 10th

percentile. the 90th percentile, earning 50% more and we are earning twice as much. stuart: part of the reason for our much higher standard of living is they are a pseudo-socialist society with cradle-to-grave welfare, medicare for all, but that has to be paid for with higher taxes and higher prices and that is what makes the difference between us and them. >> it works its magic or its distraction gradually over time. when you tax the return to risk-taking, successful risk-taking you lower the incentive for risk-taking and get less risk-taking and less innovation and less growth. if you look at innovation measures the united states produces 5 times as many companies worth $1 billion or more than europe as. france hasn't created a new large company since the 1970s

of they get no innovation and much less growth and the result is lower wages for middle and working-class. stuart: this is the capitalism versus socialism argument. your by the finance neo-socialist, america i define as capitalist. >> these socialists assert we can redistribute income without any effect on growth, with reckless confidence and there is no turning back once we go down this path. we will destroy america the way they destroyed europe, you have to create institutions that produce productive workers like google and facebook. you get exposed to cutting-edge ideas and you will be successful as an entrepreneur. there is no exposure to that in europe, they don't have any tech industry. they have some but very small in comparison so they get much less innovation and growth so the comparisons i made where we are 30% richer, they would be even poorer without the outside contribution of american innovation.

the invasion they produce would be a disaster. stuart: denmark is bernie sanders's favorite country. you pay a 50% tax rate when you hit us$80,000 a year. that is middle america, upper middle america, they have a 25% sales tax on everything which everybody pays. >> a scandinavian american earned 60% more than a scandinavian. stuart: that is when you work out inflation and the rest. >> inflation, purchasing power, how much healthcare they get from the government and what they pay in taxes, worker weather. stuart: what is the name of that book? >> the upside of inequality, how good intentions are undermining the middle-class. stuart: the upside of inequality. there is no upside for any

quality. good stuff indeed. cs again, i want more of this. foxbusiness holding a townhall on capitalism versus socialism tomorrow at 2:00 eastern time. i'm going to be there. charles payne will be there. we will all be there. check the dow. 30, a lot of red, way over, 2 thirds of the dow 30 are in the red and the market shows a loss of 133 points. donald trump wants nasa to return to the moon by 2024 and he wants a woman to be part of the team that does it. the head of nasa coming up next on that. nly pay for what you need. nice. but, uh... what's up with your... partner? not again. limu that's your reflection. only pay for what you need. ♪ liberty, liberty, liberty, liberty ♪ you wouldn't accept from any one else. why accept it from your allergy pills? flonase relieves your worst symptoms including nasal congestion, which most pills don't. flonase helps block 6 key inflammatory substances.

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>> we are down 157 points. 22 minutes into the trading session. have a look at macy's. it did report higher sales but their ceo says the tariffs on chinese imports will negatively affect their business this year and the stock is down 1% on macy's. donald trump tweeting about space exploration and here's what he said. under my administration we are restoring nasa to greatness and going back to the moon and mars. i'm upgrading my budget to include $1.6 billion to return to space in a big way. come on in jim bryden stein,

nasa administrator. tell us what we are going to do once we get to the moon in 2024. are we going to stay there and establish a base? >> we want to establish permanence at the moon. that doesn't mean we will have people on the surface of the moon permanently but we will have landers, rovers, robots and of course people. the president has given us a directive to land humans on the south pole of the moon by 2024 and the vice president announced by direction of the president that the next man in the first woman on the moon will be americans so we are looking forward to achieving that and interestingly the question is why the south pole? there's water ice, hundreds of millions of tons of water ice. it is air to breathe, water to

drink and hydrogen and oxygen as rocket fuel, the same rocket fuel that powers the space shuttle and it is abundant on the south pole of the moon. stuart: are we establishing what could be the beginning colony on the moon? >> i would say what we want to have is permanent access to any part of the moon at any time. that's what we are seeking and when i say access that includes humans and it includes landers, robots and rovers and we are building what we call gateway that is in orbit around the moon. it gives us access to the moon, any location of the moon at any time. in the long run it would be a goal. >> you are going to have critics, people will say what are we spending money on space for when we've got plenty of urgent needs in the united states here at home? what is your response to that? >> a lot of people don't know how spaces impacted their

lives. the way we communicate. many people are watching on directv or dish network. somewhat on the internet. internet broadband from space. the way we produce food and energy, the way we do navigation, the way we do national security and defense, weather prediction and understand climate, all these things are space capabilities and each of these activities was born from this little agency called nasa that is less then one half of 1% of the federal budget. the president said he is going to plus us up because he wants to establish american greatness again throughout the entire world and we a coalition of nations on the international space station and we want to extend that. we want to go deeper into space and the end of this will we be returns on investment far greater than what anybody imagines. we are doing it commercially this time as well. stuart: now you are talking. this is a financial program and when you start talking about

return on investment our ears perk up and we know what you're talking about and we like it. please come back frequently. i'm intrigued at this and want an update as fast as we can. thank you very much. got to get this one in. microsoft warning of a big computer bug. >> they have patched it but now they are putting out the warning saying it affects the older versions of the windows operating system. this could very well be exploited by malicious software. we had that in 2017, shutdown 2000 systems worldwide at the nhs in the uk, nissan, fedex and they held these sites hostage and demanded ransom to reopen them. they worried about this vulnerability and they fixed it. stuart: got it. donald trump goes to capitol hill later this morning and

will speak at the peace officers memorial service, you will see it here in our 11:00 hour. i am fired up about that to billion-dollar roundup verdict against buyer. and my take on that is next. . .

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stuart: a california couple claimed they got cancer from the weed killer roundup. and a jury agreed. they were awarded two billion dollars. i called that a travesty of justice. okay, a harsh judgment on my part may be, but new details are emerging. we can see the danger of a politicized judiciary. in this case, fairness was ignored. politics ruled. the trial lasted weeks but the jury took less than two days to arrive at that $2 billion award. questioned later, some juniors made it clear they were in a

mood to punish the roundup makers. quote, i wanted you to get up and drink it, one juror told a roundup lawyer. one said he wanted to get the company's attention. anything less than $2 billion would not have the quote, punch in the gut effect. they did not believe roundup was safe. that is not surprising since the judge, winifred smith, did not allow the jury to hear about the fda's own study which found it safe. what is the relevance of this she asked? it is obviously relevant, if you're judging safety, you cannot dismiss clear evidence of safety. the fda included a study of 45,000 men and women who used roundup regularly in their pesticide businesses. not statistically significant for cancer at any site. the jury was not allowed to see that that is wrong. i said that yesterday at this

time, received a lot of response for this one. saw your comment on cancer victims. i hope everyone you care about gets cancer and die as slow and painful death. with respect the person who wrote that has entirely missed my point. i was not commenting on cancer victims. i was commenting on a politicized legal system that falsely pins blame and ruins a company that the jury didn't like and that is a travesty of justice. the second hour of "varney & company" will continue. ♪ stuart: all right. look at the dow. we're down 157 points. new numbers, economic numbers just coming up. first of all, ash, what do you have on housing? ashley: homebuilder confidence climbed in may to 66. means nothing to anyone but that is the highest level in seven months. it has been up four of the last

five months. so it suggests some optimism in the housing business which is really tried to gain traction even though we had historically low mortgage rates just above 4%. this is more positive sign for home building. stuart: we have got, what is it business inventories, is that right? susan: unchanged from the month of march from february. it shows you how fast goods are moving across the country and what demand there is. stuart: i gave it two lines. i think that is all its worth. dow industrials not responding to any of that we're down 149. by the way on the homebuilder number, increasing confidence there in our next hour we're talking to jerry howard, ceo of of the national association homebuilders many some sectors of economy slowing down. jerry howard at 1130. treasury secretary steve mnuchin testifies to the senate appropriations committee.

number two, the senate commerce committee looks at boeing and the faa over the 737 max jet. three, abigail disney, testifying on the house financial services committee, on excessive ceo pay of bob iger at disney. how about that? dennis gartman is with us. welcome to the show. i want to talk to you about abigail disney. she is he have iting about executive pay. she says eiger's 65 million-dollar compensation is insane. what do you say, dennis. >> i think eiger's compensation is a bit on the high side. i would hesitate to call it insane. when the announcement came a couple beeks ago about the size of compensation he had i wrote about it was a little too high for me. i think, most of it came in stock. let's accept that fact. it wasn't if it was a cash payment. stuart: okay. >> she is what, i think second cousin, third cousin to walt disney. she is using her position to

force this issue. i think his pay was a little high. not too egregiously so. stuart: what about across the board. would you favor any legislation that limits executive pay? >> no. not at all. i would welcome the shareholders arguing with the executive pay but i would hesitate having a legal prohibition on executive pay. that smacks to me as socialism. stuart: yes indeed it does. okay. next one retail sales down in april. industrial production down in april. dennis what do you make of that, for the economy and the market? >> i think it's a disconcerting sign. let's not get too caried away with it. we're already starting signs, seeing signs of a slowing economy. i don't think we're heading into recession anytime soon. certainly after nine years of economic growth we should see some slowing of economic activity. i think that is all this is indicative of. it is offset by the better numbers that came out just a few minutes ago in housing. i also took some umbrage in the fact that the inventory i think

are very important, because all recessions are beginning with inventories are accumulated. the fact that inventories are unchanged, assuages concerns over retail sales and industrial production numbers. clearly a bit disconcerting. certainly not euphoric to any extent. stuart: do you think that the tariffs are beginning to slow us down a bit? i asked this question because the ceo at macy's, just out with their earnings report, he is warning that these tariffs will hurt business later this year? now the stock is down 8 cents. no real impact there. but it has raised the issue of tariffs and their effect on the economy. what is your take on that? >> i think tariffs are one of the silliest ideas i heard of in my life. i think they are always a tax upon the consumer. i think the president should be chided for the fact that he continues to tell us chinese will pay for these tariffs. that is absolute unmitigated misapplication. that is simply the silliness on both sides. the chinese have tariffs on our

goods. i wish they would stop it. we're putting tariffs on their goods. i wish we would stop it. it is a sum zero game and i wish we would stop it. stuart: you don't like the market until such time we have the china trade dispute fixed. >> exactly. i trade only for my own account. i put my money where my mouth is. i'm reasonably short of equities at this point, have been past two weeks. as soon as i see the dow off, down 150. i will put on larger short position. not demonstra bring show or egregious but i am short. stuart: dennis gartman. thank you. >> thank you, stuart. stuart: our next guest says the usmca, that is the replacement for nafta. our guest says this is the single most important near-term bill going through congress. republican congressman anthony gonzalez joins us now republican from ohio. congressman, are the democrats holding this up? >> absolutely.

the hope is with speaker pelosi going to meet with bob lighthizer maybe we'll get a thawing there. the usitc report came out few weeks ago. it was unequivocal this is beneficial for the economy. certainly for the entire country and northeast ohio where i'm from. let's have the debate and get it on the floor. stuart: if we don't get the usmca through, how big of a problem is it for our overall economy? >> i think it's a big problem. to me usmca is precursor to china. your last guest is talking about china. we are stronger in the negotiations against china if we're unified on usmca. we need to get this done from an economic standpoint for the deal itself, it makes sense the usmca deal. it makes us stronger against a horrible factor on the international stage. that is china. stuart: am i right in saying, when this usmca is presented to congress it cannot be changed. it's a straight up and down vote? here is the agreement, yes or no, that is how it is i think? >> well i think that is what the

administration would like, but reality is the speaker has pretty unilateral authority with respect to what makes it on to the floor. we'll see how that process plays out. but i do not think we need to be renegotiating this deal. they have been working on it for multiple years now. it is pretty well-baked. it will benefit every sector of the economy according to usitc which is a bipartisan entity. stuart: any idea what the democrats objections could be? >> at this point no, because they haven't even had the debate. again, if you don't like the bill, i guess i can understand that but i want to at least hear an objection. there are no objections other than political ones other than we don't want to give president trump a win. that is bad reason not to vote on something that would benefit the economy. stuart: would your bill force the vote? >> we would like to force the vote certainly but again the seeker of the house who ultimately decides what comes on the house floor. stuart: congressman, we'll follow this closely because

usmca is very important in these trading fights that we've got going on here. sir, thanks for joining us. keep in touch please. i want to know how the thing is boeing. very important. >> yes, sir, thank you. stuart: check the big board, still down 150 points. that means we've just about wiped out yesterday's 200 point gain. 25,300 is where we are. let me show you a live look at capitol hill. next hour president trump is set to speak at the annual national peace officers memorial service. you will hear his remarks live. plus a different take on the trade war with china. we have a guest who says tariffs are actually a good thing for our economy. he says they will create jobs here in america. he is going to make his case around 10:30 on this program. no end in sight for the crisis in venezuela. next our top venezuela watcher says if we want to liberate venezuela from the socialist maduro regime, we'll have to take on cuba. ance stacia o'grady joins us

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stuart: i do believe we've come back just a little. we're down 94 points. a few moments ago we were down what, 150. comeback, here we are. check the share price of bayer. they got a two billion dollar verdict against them in the weed killer roundup case. the stock is back up a mere 20 cents this morning. how about this? intriguing the birth rate in america at a 32-year low. fewer babies born last year than at anytime since ronald reagan was the president. lauren simonetti has been looking into this. what do immigrants got to do

with this? nothing at all? >> this is the lowest rate since 1986. 3.8 million babies born last year. that is a problem. i will tell you what immigrants have to do with that. that is a problem, if you don't have enough babies being born, workforce too small to take care of the growing number of retirees. this is the immigration angle. a lot of hispanic-americans are doing what a lot of american women do, get'd indicated, going to college, put off having women in our 30s. we usually have a fewer chirp because of a career. that is happening with immigrants. immigration policies are tighten at the border. obamacare, more access to contraceptives. they are mandated in health care plans. more reasons why the birth rate is at 32-year low. however there is hope? stuart: what is that? >> millenial mothers are seeing a rise in women in their 30s

are having babies. no worries, stuart. oldest children will probably retire before he does. stuart: i'm an immigrant. i have six children. i'm contributing to the birth rate in america. ashley: and then some. stuart: all i've got to say. our next guest -- write this is in the "wall street journal." how to liberate venezuela. the free world needs to squeeze the power behind caracas's police state, cuba. "the wall street journal"'s columnist, mary anastasia o'grady joins us now. we are squeezing cuba, aren't we? >> not enough. the problem we've been paying a lot of attention to the military dictatorship in venezuela run by nicolas maduro and trying to think about how we can bring the military on the side of the democratic opposition and we're not spending enough time looking at why that police state stays in place.

it is not because venezuelans are supporting it. it is because the cubans are controlling it. they have all the intel behind it, both military counterintelligence and the intelligence state and they're using that to maintain the repression. so we want to get rid of maduro. we have to make the price of cuba staying in venezuela higher than the benefit to them. stuart: aren't we already doing that by squeezing be cuba desperately needs venezuelan oil and what i understand they're not getting much of it these days. >> venezuelans cut amount of oil in half. they still need that, 55,000 barrels a day. we are not intervening them. that would be a act of war, i grant you that. we could do something to stop the ships. only thing we've done we said if a ship brings oil or venezuela it cannot come into a u.s. port. fine. i think pressure has to be more. it has to be more active.

and we have to get the international community, which is very widely in favor of a regime change in venezuela, to support us. so it has to be an international effort. we need the colombians, the brazilians, chileans, peruvians, all the people in the lima group to come with us to the strategy of isolating cuba and really bearing down on them to the point -- let's not forget they lived off the soviets for 30 years from 1960 to 1990. when they lost that, they went through a very tough period. when chavez came along, they got new oxygen. they were about to die again when obama handed them a great bit of of opening to cuba. they have lost a lot of that. this is the moment where we should bear down on cuba, not only to liberate venezuela but to liberate cuba after all these years. stuart: stop the oil. i know you say it is a act of war. >> i'm not opposed to it. i'm not opposed to it. i think we'll see a more

aggressive strategy on the part of the trump administration. they thought maduro would have fallen by now. now they know they have to up their game, they're still there. that can't be pleases john bolton. mary anastasia o'grady "wall street journal." >> appreciate it. stuart: breaking news for you here. treasury secretary mnuchin talking china. what is he saying? ashley: this could be helping bring the market back. he will likely to to beijing sometime in the future to continue the china trade talks. there is still a lot to do along that line. the president may delay imposing tariffs on auto imports maybe up to six month. this is all very tentative but that alone, perhaps indicates there is a little bit after, let's ratchet it down a little bit. talking maybe delaying on the auto import. susan: that is moving auto stocks. gm back up with a volume spike.

fiat chrysler as they delay auto import tariffs. ashley: haven't decided to do that. they're thinking about it. stuart: they're lowering the temperature. ashley: that's right. stuart: if we're thinking about not doing this maybe that lowers the temperature. you're absolutely right. that is why the dow went from minus 150 to minus 60. susan: bloomberg says they definitely plan to delay imposing tariffs on auto imports. they definitely plan to delay imposes auto tariffs from bloomberg. stuart: that is news. the dow industrials right now are down 63 points. again just a few minutes ago, before mr. mnuchin said that, we were down 150. now we're down 60. all right, san francisco, what a story, they voted to ban the police from using facial-recognition technology. the cops are not happy about it. my question is, what does judge napolitano have to say about this? he has got a lot to say, believe me. he is coming up after this.

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stuart: san fan is planning to ban government police forces from using facial-recognition technology. >> you can only imagine what my beef is. stuart: what is your problem with facial recognition. >> not my problem. the fourth amendment problem. stuart: which is? >> this is surveillance. surveillance requires a warrant.

the fourth amendment says right to be left alone and right to prevent fishing expeditions. ashley: no, no. stuart: wait, wait. >> the audience doesn't like it. when the laws are written not to preserve liberty but to make it easier for the cops to enforce the laws, that is called a police state. stuart: okay. supposing -- ashley: well isn't every cctv then against the law? >> no. that is private. if fox wants to have a camera in the hallway, watch me -- ashley: i mean out on the streets? >> if fox's job rand prerogative. if fox wants a camera on outside of its building fox can do that. it is government use of it that is the problem. not the private use. not me. that is the fourth amendment. only restrains the government. doesn't restrain private use. stuart: usama bin laden is not dead but we know exactly what he is looks like. walking down the streets in san francisco. boom, picked up by facial recognition because we know exactly what the guy looks like. that is terrible. >> realistic hypothetical.

stuart: no it is not. it is very realistic. all kinds of murders and kidnappers and terrorists, we know what they look like. >> if the could break down every door and stop and question everybody they want, would we live in a safe environment? probably but would we want it that way. stuart: not a bad rejoinder? >> you still love me? stuart: that's it. thank you, judge. >> when is the next brexit vote? [laughter]. ashley: pick a it today. stuart: president trump will speak at the police officers memorial service in our next hour. stay here. we'll take you there. ♪

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♪ stuart: what's this? it's the beatles, what is it? ashley: a obscure bootleg version of something. stuart: what is it? what are you doing to me? beatles song and i don't recognize it? ashley: wow. stuart: that was not real beatles. that is hamburg generation. susan: big -- stuart: fade it down and listen to this. secretary mnuchin says they may go easy on auto tariffs and china, the market loves it. we went from minus 150. we're now up 10 points. 10:30 eastern time wednesday, i think we have got the weekly oil inventories. ashley: it is exciting. were supposed to draw down

800,000 barrels. we actually grew by 5.43 million barrels. stuart: wow. ashley: we have a lot more in storage. this follows last week's big nine million barrels addition to the stockpile. that should put down pressure on oil prices despite what is going on in the middle east. stuart: this is something really unusual for you, our next guest says you know the 25% tariffs on chinese goods? he said they would create, create, 1.36 million jobs over the next five years in america. who is saying this? who is the counter thinker here? well here he is. jeffrey ferry, with the coalition for a prosperous america. is their chief economist. jeffrey, you are on. how do you arrive at 1.35 million new jobs in the next five years because of tariffs? >> hi, stuart. thanks for the opportunity. you're absolutely right. what our model shows if the u.s. levied 25% tariffs on all chinese imports, all

$540 billion worth of imports the effect over five years would be to stimulate the u.s. economy because production for imports into the u.s. begins to leave china. i should say it speeds up. a portion of that production will come back to the united states. that is a growing portion year by year, bringing that production back stimulates the u.s. economy. the second stimulative effect is that the production that leaves china is generally going to countries where production is actually cheaper. so it goes to places like southeast asia. the cost of our imports, the average cost of imports falls over time. that is despite the tariffs. the next result as we model it out for five years, the ultimate result is more jobs, 1.36 million more jobs and in addition to gdp of $232 billion. stuart: wait a minute. i am not trying to find flaws in your argument. i'm just surprised at it. how do you know that production would return to the united

states? >> we built a model of what, where the imports come from, what sectors they're in. it is 156 sector model. we used the standard model remi, we applied analysis of chinese imports. and we have made very conservative assumptions that within many of those 156 industrial sectors, as i say, a small but growing portion of the production returns to the u.s. stuart: why would it come back to the united states? because we do have cheap energy, very cheap electricity. that's very important in manufacturing. is that one of the reasons. >> yes. it is a matter of a number of factors. in many areas and costs we're very competitive. if you look at the most recent boston consulting group study of costs comparisons in manufacturing, the u.s. is only some, five to 10% more expensive than china and some of the other countries that are middle income

countries now. there are much cheaper countries at the lower end like vietnam and cambodia, they will attract some chinese production. in fact they already are. the u.s. is not as uncompetitive people would have you think, number one. number two, there are significant advantages to producing in the u.s. i used to be in the technology industry, and i can tell you that the advantages include, first of all obviously lower transportation costs. you don't need to ship things across the pacific which takes two to three weeks. secondly the advantage of having your manufacturing engineers colocated with your design and production engineers and with your senior management is very significant. it allows the company to move faster, safe on costs and get it right the first time which is absolutely critical. stuart: jeff, you got it all in but you do know you're out on a limb in the economics profession. i don't know anybody is saying that. you are out on a limb. 10 secondss that is all you have left.

>> the economics profession has betrayed the u.s. economy. the so-called free trade system allowed abusers to abuse the system to take u.s. jobs. tariffs will restore jobs to the united states of america. stuart: that was 15 seconds you got all that lot in. jeff, that was most interesting. we thank you very much for being with us today. >> thanks for the opportunity, stuart. stuart: that is a surprise. wasn't expecting that. for those of you who probably do not know this, i never been particularly overt about it, but when i was a student at the london school of economics i was a socialist. ashley: what? stuart: yes. eventually, thankfully i grew out of it, obviously. joining sus richard world, a professor at the new school university in new york city. this professor is a socialist. >> i grew into it. stuart: why? >> i wised up and -- stuart: wised up? >> system isn't working for most people. so what else might there be and i began to look. i found it. stuart: i tell you what happened to me. yeah, i was a socialist.

i was always jealous about those people who made a lot of money. then i started to make a lot of money i realized i really do work for this. my brain drive, talent, ability should be reward the. and they were rewarded. i will be damned if i take half of it give it to socialists. >> the history of capitalism the people who do real well like it. the people who don't do real well raise the questions about it. that is why we have more and more people in the united states raising that question. that is why fox is having a roundtable tomorrow. stuart: it is interesting, professor, at this moment in time we have record low unemployment for every demographic category, wages are rising faster than they have risen for the past 10 years, i mean what is wrong with that? why are people going to socialism? if you imposed a socialist economy in america today, you would have no growth, period. you would have no growth. you know it! >> i like this discussion of

growth. the real wage, that is kept by the government. that is the amount of money you get as a wage, adjusted for the prices you have to pay for whatever it is you buy. so it measures how much can i do, what can i get. stuart: disposable income. >> it is like that but the real wage per hour. what can you get. stuart: 30% higher in america than it is in germany. >> but it is the same today than it was in the 1970s. we have not had increase in the real wage, average real wage in the united states, according to bureau of labor statistics in 40 years. that is a disaster. over that period of time workers productivity went up, which is what they produce for the employer. but what the employer gave them, the real wage, stayed the same. which is why we have this terrible inequality, which is why the interest in socialism. stuart: that is what it is all about? >> mostly about. stuart: inequality of income. that is fired you up to sort of say, tax the rich -- >> many things. stuart: take their wealth? >> not at all that question up a

system -- i don't like redistribution of wealth. reminds of a story, our a child in the park, you have two kids, buy eye cream cones, by two coness give them to one kid. the one squawks. you redistribute the one who squawked. causes a lot of trouble. much safer don't redistribute it unequally in the first place. that is what i'm interested in. stuart: that means you have to start from a socialist economy. >> absolutely. spot to go. stuart: we're nowhere near there. >> be careful. stuart: do you want, do you want to nationalize any industries? >> no. stuart: you want to regulate the devil out of them, don't you. >> no. stuart: you don't? >> no. stuart: what do you want to do? >> i want to change the way business is organized. for me this is what socialism means. not about the government. i'm not interested in that i want to change the way business is organized. stuart: tell me more. >> i will tell you. i want to bring democracy to the work place. stuart: so the workers vote on their pay, board of directors. >> that's right. stuart: you know what happens. you know exactly what happens.

i tell you what will happen. i have experienced this. you give power to the workers. give power to labor, all power and you starve, you starve investment capital. because it will not to to investment. it will always go to the workers. and that way you run down the subway system, you run down the bus system. you don't do anything. >> workers are as smart as anybody else. they know you have a keep a part aside to invest to improve technology. stuart: they are self-interested. give me more, give me more. they will want more and they will take more. >> big businesses are self-interested too. you celebrate that. rightly so but the workers are too. stuart: innovation, the world's most dynamic energetic companies in the world because of capitalism. hold on. are you in this part of this capitalism socialism town hall we got coming up? >> yes i am. stuart: are you going it face off against me? >> i hope so. ashley: we all do. >> professor, seriously thank you very much for being on the

show. >> my pleasure. stuart: i will shake your hand. >> it doesn't spread except through the brain. stuart: that's -- thanks professor. hold on a second. breaking news. the u.s. embassy in beirut, lebanon, warning of citizens, u.s. citizens -- ashley: heightened tensions in the region following from other state department warnings in iraq. they encourage u.s. citizens in lebanon may taken high villains, situational awareness, keep a low profile basically what they're saying. we're seeing advisories and warnings come in from throughout the region. stuart: something is going on. ashley: yep. stuart: thanks, ash. check the big board. we're still on the up side but not much. we're up 13 points, six points. there you go. president trump wants $15 billion of aid to farmers getting hurt by the china trade tariffs. is that enough to counter the pain and keep farmers on the president's side? senator john hoeven on that coming up next.

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but give them a cookie and a star. stuart: treasury secretary steve mnuchin says maybe we will go light, go easy on auto tariffs on china. when that news broke, the market turned around. now we're 16 points higher. now this. gym chain planet fitness offering free memberships for teenagers this summer. we were wondering in our morning meeting what could possibly go wrong with that? planet fitness ceo joins us now. i have to ask, so you're going to have a bunch of teenagers coming into your gyms that can use the place for free, hang out during the day for free, nothing

could go wrong, is that right, chris? >> that is the point. we tested new hampshire last year. 2900 kids in nine weeks. it worked out so well we decided to launch nationwide this year. stuart: do you think it will be okay? >> yeah. we had a great turnout with a lot of teens an parents. 2,000 kids were from homes parents were members. it is great brand affinity. get them off the couch and their devices that is the right thing to do. stuart: you have to hope it is a good marketing tool to get more youngsters in. the older paying customers won't be so annoyed they won't leave? that is the calculation, chris? >> yeah. our clubs are slower in the summertime. people are on vacation. why not introduce the kids to at this timeness. we have 13.6 million members, almost half are millenial. great for to us introduce the generation z population. as they come to join they think of planet. stuart: i am 70 years old.

almost 71. i have never been in a gym in my life. i have never worked out on a piece of equipment, ever. except on a stress test for a heart condition. that's it. how would you get me into planet fitness? >> we're very affordable. only $10 a month. stuart: you got me. >> real affordable. the real secret to our success, judgment-free zone. we cater to casual gym users. 80% of the population of u.s. don't have a gym membership. they have to say i have to get in shape before i join a gym. we're answer to that. you come here to be comfortable. stuart: teaming up with retailer kohl's i think. are you setting up gyms in their stores unused spaces? is that what is happening? >> they're downsizing stores from 70,000 square feet, 50,000 square feet. they're putting a wall up. we're going with our next storefront and looks like a strip center.

our gyms are busy monday through wednesday and get quieter on weekends. it is great cotenancy. stuart: i walk into a planet fitness gym, i start. do i have to sign a contract or keep on coming and keep on paying? >> sure. yeah. we always, every day of week offer no commitment membership. that is one of the big things in the industry, nobody can get out after membership. we make cancellation easy. come in on the 10th of the month, seven day notice, you're out. no harm no foul. people fall off the wagon. we don't ever want to burn a bridge. stuart: that was very tempting. i have to say that was very tempting. give you a brilliant 2 minute commercial. you used it well young man. planet fitness. thanks. >> sure. stuart: saudi arabia says yemeni rebels lined with iran used a drone to attack a oil pipeline. i want to know is there anything we and our allies can do to

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stuart: progress, progress. now we're up 36 points, 25,569. that is where we are. president trump proposing what might be called a bailout for farmers who would be hit by china trade tariffs. roll tape. >> we're going to take the highest year, the biggest purchase that china has ever made with our farmers, which is about $15 billion, and do something reciprocal to our farmers so our farmers can do well. stuart: okay, joining us now north dakota republican senator john hoeven. would your farmers in your state be satisfied with that kind of buyout, i guess you call it? >> stuart, we want access to markets. we want better trade agreements whether china, japan. usmca we want to get that passed between canada and mexico. while the chinese are delaying negotiations we do need to provide our farmers with help. they are on the front lines.

they are being targeted by china. stuart: will this keep them in line? will this keep political solidarity in the president in this fight with china? >> you know they have been hang in there recognizing the need to get china to trade on fair basis, quit stealing our technology and patents and copyrights. it is tough on them. they need some help. this will make a difference. again the solution is free and fair trade. this will help them get through the negotiations. stuart: mr. senator, we hear some rumblings within the republican party, you better fix this china trade thing fast, otherwise you might see republicans peeling off from the president. what do you say about that? >> no question. not just for our farmers, but our energy sector. all the different sectors of our economy, manufacturing. we need to get the trade agreements in place. we need to get the house to take up the usmca to pass it. the votes are there to pass it. we're ready to go in the senate. it has to start in the house. we need to get into an agreement with china, get into an

agreement with japan. that is the solution. meantime we do have to help our farmers particularly where they're on the front lines and they're being targeted by china while the negotiation is going on. stuart: okay, now the state -- i want to change subjects for a second, sir. >> sure. stuart: the state department has ordered all non-essential workers out of iraq, our embassy in baghdad because of ongoing threats from iran. we heard something similar from our embassy in beirut, lebanon. it is very tense in the middle east. can you tell us what might be going on? is something up? >> sure. we're putting real pressure now on iran. their only way to get income is to sell their oil. we shut that down with our sanctions which is appropriate. we're putting real economic pressure on that regime and we're trying to get a change in their behavior. they're the number one state sponsor of terror in the world and so we're trying to effectuate the changes we need. we have to continue to do that and be strong and, that is what

they respect is strength and making sure those sanctions have an effect over time to keep them from their nuclear ambitions and to keep them from the kind of terrorism sponsorship that they have been undertaking. stuart: mr. senator, is there any part of you which says, mr. trump, maybe you could back off a little on the china trade tariffs? maybe you could back off a little with iran? you're shaking your head? no backing off? >> no. these are the right steps. strength and doing it, you know, in terms of our military strength but these economic sanctions, they will work, they are working over time. and that is how we get the change in behavior that we need to see from iran. stuart: can you keep the democrat on your side? look, they have been unified in the china trade. i don't know whether they're unified on iran but are you going to keep them in the fold, unified behind the president and his foreign policy? >> i believe so obviously not all of them but when you look at the impact these sanctions are

having and this consistent position of strength, not only democrats but increasingly our allies will recognize that dealing with from a position of strength is the way to deal with iran. stuart: senator john hoeven, republican, north dakota, thanks for joining us, sir. always appreciate it. >> thank you, stuart. stuart: thank you. president trump is going to speak at the national peace officers memorial service. it is a solemn event. we will see the ref very rent side of our president. he called out candidates by name before a very friendly audience. my take on all of this coming up later. ♪ -driverless cars... -all ground personnel... ...or trips to mars. $4.95. delivery drones or the latest phones. $4.95. no matter what you trade, at fidelity

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stuart: it is 11:00, almost, here in new york city. it is 8:00 almost in california.

very soon, president trump will speak at the national peace office's memorial service. when that happens, we will take you right there. now this. the president's having a grand old time with the 23 declared democrat candidates. the nicknames he sticks on his opponents are still biting, but he does it all with a smile on his face. here's how he's dealing with mayor pete and beto. roll tape. >> i got boot-edge-edge. i got them all. i got beto. beto. beto's falling fast. what the hell happened? remember about four weeks ago, he said i was made for this. he was made for it. he was made to fall like a rock. stuart: wait a second. he was only just getting warmed up. he was drawing energy from the crowd. you could feel it. then he waded right into biden and bernie. roll tape. >> i don't know what the hell happened to biden.

what happened to him? i'm looking, i said that doesn't look like the guy i knew. what happened to him? and bernie, you know, bernie's crazy. bernie's crazy. but bernie's got a lot more energy than biden. see, you never know. stuart: he didn't go through all 23 declared candidates. oh, no. just the frontrunners. he couldn't resist another jab at senator elizabeth warren. roll that. >> so it's going to be one of those people. pocahontas i think is probably out. you got some beauties there. 350 million people and that's the best we could do. i don't think so. even as democrats, i could pick better than that. stuart: i've got no doubt that will be popular with his base, the crowd clearly loved it but you know, there's 20 months to go before the election. will it still be popular in november of next year? a few minutes from now, you will

see what i think is going to be a different presidential approach. mr. trump speaks at a peace officers memorial service. it won't be a campaign rally, i don't think. perhaps it will be more like the prayer event in the rose garden a few days ago, joyful yet reverent as well. my point is this. this president uses television and uses it well, no matter what the setting, trump dominates the screen and commands attention. this is a priceless asset. sit back and watch as the third hour of "varney & company" continues. stuart: all right. you heard my editorial. get some reaction to that as we wait for the president's remarks at the peace officers memorial service. come in, liz harrington, rnc spokesperson. this election, the independents are going to be very, very important. do you think the independents

will want another 20 months of insults, nicknames and harsh rhetoric from the president? don't they get tired of it? >> i think they'll want 20 months of continued economic growth and look, stuart, the president is having a good time because the country is doing great and meanwhile, the democrats are miserable, they're rooting against the country, they're praying for a recession because it's the only prayer they have in 2020. stuart: but that doesn't mean to say that they like the president's style and his tone and the content of his speeches. look, i know this turns a lot of people off, liz. >> well, well, they like the president's love of country and regardless of his venue or the speech where he's delivering it, that comes across. he loves america. democrats, on the other hand, they have nothing nice to say about america. they say america was never great. well, the truth is america was great and it is great again thanks to the freedom and prosperity that's being restored

under this republican administration. stuart: some of the people that we talk to in the white house or in the administration, i should say, some of them are beginning to say that the candidate who worries the president most and the administration the most is joe biden. what do you make of that? >> well, look, i don't think the president is actually worried about any of those 22 odd candidates we have now because they have nothing to run on, and joe biden in particular has two terms of failure. he didn't restore the middle class, he didn't rebuild it when he was vice president. actually wages were plummeting. the new normal was high unemployment and slow economic growth. so i don't think the president is worried about any of them. the rnc certainly is not worried about any of them because you have quote unquote, moderate joe biden on the one hand but he's already running to the far left of the socialist wing of the party, calling for illegal

immigrants to have free health revotion, whatever that means,ge so we're not worried about any of them. stuart: what kind of tone do you think the president's going to take on in this speech that's going to come our way in a couple of minutes' time? what kind of tone? >> well, the president says better than anyone else, he can be presidential when he wants to be. he's going to have a good somber tone. he loves the country, he loves the american people. that always comes across no matter what the venue. stuart: liz, thank you very much for joining us. always appreciate it. see you soon. check that big board. still a little bit on the upside, not much, but we're there. the white house says they will delay new auto tariffs for six months, that's on china. those tariffs were supposed to go into effect on friday. there's a six-month delay. also, secretary mnuchin says he will likely go to beijing to continue the trade talks soon. he says there's a lot of work still to do but he's going to china. liz macdonald is with us for the

rest of the hour. lloyd blankfein has been saying something about tariffs. what is he saying? liz: he's saying the president's tariffs are quote, an effective negotiating tool. he tweeted it out. he said the tariffs will hurt china more than the u.s. and made an interesting comparison to a union labor strike, in other words, where both sides suffer but the winner demonstrates strength and resolve and forces a compromise. that's what he's saying this fight is about. he's also saying it hurts china more. china exports to the u.s. $522 billion. we send to them $150 billion or so in a $21 trillion economy, not a big deal. but he's pointing out this, that the china manufacturers, the companies that are manufacturing inside china could pull stakes and move elsewhere. that will help u.s. consumers and hurt china. they will lose revenue as those businesses move elsewhere due to the tariff fights. stuart: i think we're interested

in this because lloyd blankfein is a powerful guy. liz: for him to come out and calm the waters and say this, he's saying it's an effective negotiating tool, interesting. stuart: sure is. thanks for that. good stuff. amazon, we got the story for you, breaking ground on a $1.5 billion air hub speeding up deliveries. that is air hub in cincinnati. that's jeff bezos in the frontloader breaking ground himself. they are going right after walmart with this one and also going after fed ex, whose stock i believe was down earlier, down about 1%. uber. been all over the place since its ipo last week. now it's at $40 per share. viewers of the program yesterday may have heard me say i was going to buy it at $37 or $38. i did not. i got cold feet at the last minute, now lost my opportunity. i missed it. i will think about it if it goes

down. starting today, they are rolling out a new quiet mode feature at uber. don't want your driver to chat to you? you select the quiet preferred button, you press it and they will leave you alone. bliss. ashley: excellent. stuart: only available on their more expensive uber black rides, by the way. they want you to pay up for silence. it would be worth it. we're expecting to hear from the president shortly at that memorial. here are some other stories we are watching for you. the marriage tax penalty. i didn't know it still existed, actually. apparently it's still there. coming up, we've got the congressman who wants to make marriage great again. those are his words, not necessarily mine. also, a new merit-based immigration reform plan that would allow high skilled immigrants into this country. we have the senator behind that plan on the show. lot coming up for you. the market's up. what do you look for when you trade?

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with the democrats on a merit-based immigration plan, only letting in higher skilled immigrants. do you have firm democrat stuart: i want to talk support for merit-based immigration. for that let's immigration? >> well, i think there's certainly some, stuart. on our bill, kamala harris is the democratic co-sponsor of the bill along with mike lee and me. what we're trying to get at is a very specific group of merit-based immigrants and that's the high skilled. in north dakota, for example, one out of every 20 are in on h1b visa. in some cases it will be 75 years before they get a green card. we also have a very large microsoft campus. we are in high demand for engineers and software developers they need. for us, it's aimed at that h1b visa, particularly aimed at eliminating the per country caps

for green cards. stuart: look, i love the idea. merit-based immigration. that's exactly what wet your bi. it only deals with just that one aspect of immigration. can you get that through congress when we don't have a comprehensive immigration plan? >> you know, you ask the obvious question, the important question. whether our piece becomes part of the larger bill, more comprehensive bill, or whether our bill as a stand-alone bill can get the ball rolling, i'm for either one of those. of course, you know jared kushner and the president have been working on a merit-based program. our bill, the language in our bill is incorporated somewhat into their merit-based proposal which does eliminate the per country caps but at the same time, has a scoring system that still guards for diversity from smaller countries. i think they are getting it but again, whether stand-alone -- sometimes i think frankly a smaller piece of the apple, bite of the apple, might be the very

thing that proves that we can get something done and we can function and maybe get the ball rolling. stuart: it's doable. that's the word. doable. may i ask you quickly about farmers. the president plans to spend $15 billion almost buying off farmers who are badly affected by tariffs on china trade. do you think that's enough and will it keep farmers behind the president in his battle with china? >> well, the premise of your question is that he's buying them off and intended to keep them behind him. i think it stems from a genuine concern for our farmers and the fact the tariff tit for tat that we're in right now has a negative impact, disproportionate negative impact on farmers because retaliation is aimed at farmers. i think the president views this as my actions in the short term, i will go for the long term benefit for the country, have a short term negative impact on our farmers, it's incumbent upon us, it's really an obligation to

help our farmers. the problem is how he uses that $15 billion. i don't have the silver bullet and specific solution, but we want to make sure we don't inadvertently hurt markets, distort global markets, with $15 billion. so my preference is that he buys the food because farmers grow food to be purchased and then eaten, he would buy the food and use it for goodwill and soft diplomacy rather than distort the markets. farmers would prefer to have a trade deal done, obviously. stuart: if i said this, i just wonder if you agree with it. i will say the following. if there is no trade deal done pretty soon, the president will lose the political support of the farm belt, the political support of some democrats and some republicans in his own party. what do you say? >> well, that may very well be true but god bless the president for having a long-term interest of the country in mind ahead of

his own political ambition. we are at this point because presidents over the decades have been looking at their immediate political advantages rather than looking out for the long-term security of the country. so that may or may not be true but i do believe that as long as he's going in the right direction, using the tools and really the weapons in his arsenal on this trade war, the most important thing is to win the trade war. i'm far more concerned about our farmers 10 and 20 years from now if we don't stop china from doing what they're doing in terms of intellectual property theft, technology theft, to include by the way agriculture which has of course some pretty important technology. stuart: senator, as always, thanks for being with us, sir. appreciate it. >> my pleasure. thank you. stuart: let's get back to your money. first quarter earnings from a couple big retailers came out this morning. look at macy's. no change in the stock at the moment. they posted a revenue miss, as it's called, and sales are slowing -- sorry, sales are

slowly improving thanks to e-commerce. by the way, their top guy says if the next round of china tariffs does go through, their furniture business will take a hit. no change for macy's stock. now it's down two cents. children's play are on the upside. no, they're not. they're down 6%. their chief executive gave a rosy forecast but here's the problem. their sales are still suffering compared to one year ago. big drop there, 6% lower. let's check across the board, the retailers. we did get government numbers overall which show retail sales actually falling in the month of april, and the retail stores themselves, their stock prices, all of them down. best buy just up there with a nine cent gain. how about this for art. okay. let's have a look at online shopping as well. amazon, ebay, etsy. look at that. that's one of monet's haystacks

paintings. went for $110 million. ashley: what? what? stuart: it's an 1890 painting, one of only four works from monet's haystacks series. ashley: he put out a series? stuart: only one of four that hit the auction block this session. that's $110 million of painting right there. we continue our coverage of capitalism versus socialism this week on the fox business network. coming up, jackie deangelis tells us what happens when capitalism goes wrong. what? i want examples. what do you mean, capitalism goes wrong? it never goes wrong. i will talk to her shortly.

stuart: netflix just announced their very popular drama series "black mirror" is coming back. you can stream these new episodes starting june 5th. the market likes it. netflix up five bucks. tesla raising prices again. their lowest price model 3 goes up $400. that makes it $35,400 out the door. what you're looking at is the president just arriving there,

getting seasick watching that. essentially that is the president going down the handshake line. he's about to speak to the peace officers memorial and we will bring you that speech when he begins it. as you can see, he's arriving right there. he will be introduced, of course. we will get to the president when he hits the podium. let's get back to the theme of this network this week, that is capitalism versus socialism. jackie deangelis joins us with a history lesson. okay, jackie, you are going to talk to us about when capitalism goes wrong. give me an example of capitalism going wrong. >> there are a couple examples people will point out and that is when i'm doing here today. let's talk about big tech. facebook, amazon, google, right. facebook, lot of people saying too much power, they are a disruptor, but they need to be regulated, there are privacy issues. what about google being sued for anti-competitive practices, or amazon, a lot of people will turn around and say they don't pay their fair share of taxes on billions of dollars in revenue,

federal taxes, i'm talking about. stuart: can i interrupt? do you mind if i do that? >> it's your show. stuart: it's very, very rude, noi thi know that. i don't think that's an example of capitalism gone wrong. i think it's an example of capital iism being innovative a dynamic. >> i think you're right. maybe saying capitalism gone wrong is too strong but there are certainly places where the system could be improved. even the president, elizabeth warren not a socialist but a democrat, has said big tech should be broken up. the president hasn't come out and said that specifically but he's insinuated there are definitely problems within the technology industry. we have talked about the innovation that comes out here and how it's really revolutionized the world. another example might be the energy industry. i covered oil for a long time. a lot of people would say that technology, fracking, yes, we are the world's number one oil producer now, no one ever thought we would say that, but at the same time, there are a lot of environmental concerns. so that's a finer point that

would probably need to be addressed. stuart: i think you are totally wrong. have a nice day. we are short on time. i have to come up on a hard break. i hate to do this. you make a very good argument. i want to listen to it more when we do our special on fox business tomorrow afternoon, 2:00 eastern time, capitalism versus socialism. i think you will be part of it. >> i will be there. stuart: excellent. we will continue to fight another day. >> see you then. stuart: this one's for you, elizabeth macdonald. liz: that's right. stuart: democratic presidential candidate john hickenlooper will be on your show 6:00 eastern time. what are you going to say to him? liz: exciting. he says capitalism needs fixing. i'm going to challenge him. stuart: he's wrong, too. i'm delighted to hear that. it's going to be good. great day. home builder confidence at its best level since october. there is one area of concern, china. right now, we get $10 billion worth of housing supplies from

china. if tariffs go into effect, won't be good. what's the national association of home builders saying about that? the ceo jerry howard is next. any moment now, we will hear from the president. he makes his remarks to the peace officers memorial service. we will take you there. the dow is near the high of the day, look at that, now we're up, buy something, somebody, yes, up 100 points. secretary mnuchin says the u.s. is close to an understanding with china and mexico on steel and aluminum tariffs. that's positive news on trade. clearly helping the markets come back. we'll be right back. what if numbers tell only half the story?

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stuart: president trump will be speaking momentarily. when he speaks, you'll hear, we'll listen and watch. check the big board, high of the day, now up 112, 111 points. sea of green on the left-hand side of the table there. by the way, some positive comments on trade from treasury secretary mnuchin this morning. that's what turned this market around. we had news on the housing sector earlier this morning. a rise in confidence by the home builders.

let's address that with jerry howard, the president of the national association of home builders. okay. rising confidence. very strong number. why? >> well, there's really two main reasons. the first is builders are coming out of a long, cold, wet, snowy winter into the spring building season. they are feeling energized and confident. second and most importantly, you are seeing the fed ease up on its quest to raise interest rates. interest rates have come down a bit and that totally drives our industry. stuart: we see the yield on the ten-year treasury this morning drop well below 2.4%. that means i think that you're going to see 30-year fixed rate mortgages at 4%, maybe a tad lower. that's a big boost for you. >> that's tremendous for the first time home buyer, and first time home buyers drive the market. stuart: i just have to digress for a second. i bought my first house in california, late 1970s. i paid 12.5%. ashley over there bought a house in the '80s and paid 16%, didn't you? ashley: i did.

it was that terrible period early '80s. i thought that was a good deal. stuart: it was awful. >> absolutely. it was terrible. stuart: let's talk tariffs. china. if we impose the next round of tariffs, it's really going to hurt you guys? how much? >> it's going to increase the cost of an average house to build by about $1200. stuart: that will be the tariffs, the next round of tariffs? >> the first round already increased it some. the next round, it will be about $1200. stuart: is that a killer for you guys? >> any straw comes on to the camel's back ultimately helps break it. right now, i got to tell you, we talk to our members around the country, they understand what the president's doing. they're saying they will live with it. they know he's looking to cut a deal that's going to help our industry and all american industry long-term. we got to get the mexico trade thing done, we got to get china done. our builders are trusting the president. stuart: you guys are firmly in support of this president? >> right now firmly in support of the president. stuart: this $10 billion worth of housing stuff comes into

america from china each year, $10 billion towards the new homes you're building. couldn't you find an alternative supplier? >> well, we will if we have to, but most of this stuff has been built overseas for a long time which is why ultimately, a fair long-term trade policy is what we need. that's what the president is trying to get us. stuart: can you tell us which is the strongest market in america for new home building? >> i would say texas and the southeast. stuart: texas and the southeast. okay. that's where everybody's moving to. >> the lowest regulatory burden. stuart: lowest regulatory burden. that's a theme on this program, it really is. the tax reform deal really hurt high income earners in california, new jersey, new york. a lot of people are leaving for florida, tennessee, texas. you're picking up the slack. >> that's right. you're talking about your show with capitalism and socialism. socialism puts regulations on

business. capitalism lets business run free. capitalism works. stuart: so you want to come into this argument. i had a marxist professor on this morning. >> i didn't know that. stuart: you missed that one. >> he and i probably wouldn't have agreed on much. stuart: we didn't agree on very much either. to you, capitalism is the winner. >> absolutely. stuart: and if bernie sanders became the president, what would happen to the housing industry? just wild speculation but i'm asking anyway. >> i think you would see an imposition of a lot more regulations, a reimposition of the ones president trump has rolled back and you would see housing affordability tank even further than it has. stuart: jerry howard, you are a frequent guest and a welcome guest. appreciate it, sir. thank you. i'm going to stay on china, actually. our next guest is a big tech watcher. he's banking on chinese technology companies to make him some money. our guest is spencer crowley, cofounder of first minute capital. i know you're from london. i hope there's not a delay in

this conversation but i will start asking anyway. which tech companies, china tech companies, are you buying that you think will make you a ton of money? spell it out. >> stuart, thank you for having me. it's great to be on the show. i'm jealous of your real estate purchases. so we are investing predominantly in europe and the u.s. but we will look opportunistically at china. we have one or two large chinese players invested in us. ten cent, you will know had quarterly earnings today, are an investor. we obviously do have some views on the chinese tech world. stuart: break it out. ten cent, you like it? you will be buying this, you think this stock is going up, why? >> definitely. so what is ten cent. ten cent is the world's largest games company by revenue, one of the largest social media companies in the world. it's equivalent of whatsapp. it also has a music streaming subsidiary. i think spotify, which is called

ten cent music, just under a $30 billion market cap business. this is a company that is 20 years old. its market cap is half a trillion dollars. and it's now being innovative, now looking at online banking, looking at exploring into cloud which will worry the likes of amazon. i think it's not going -- it's of course got its challenges but it's an innovative company and a very big market. stuart: to summarize, you do have money in ten cent, right? >> other way around. stuart: okay. talk to me about alibaba. i think that's another china tech stock you like. >> definitely. alibaba also had their quarterly earnings today and the stock has jumped. alibaba is known as the amazon of china, but more. it accounts for 60% of e-commerce in china. e-commerce in china is around $1 trillion. this is a business that is very interesting because it has many different strands to it. and it's starting to diversify

outside of china. so this is really the relevance to the u.s. both in e-commerce and cloud infrastructure. just as a reminder why that's important, for amazon, their cloud business, aws, amazon web services, is 10% of their total revenue so the likes of alibaba starting to move into europe and other geographies is really interesting. stuart: i only have 30, 45 seconds left but i know you are bullish on uber. spell it out. why do you like them? >> look, it's a great business, has huge network effects. they have chunky assets in other businesses and you know, are the fastest growing food delivery business in uber eats, and self-driving. definitely bullish on uber. stuart: you're really good on tv. what you can do, you can express yourself succinctly in short little bursts and let everybody know exactly what you think. that's sheer genius. if you're not careful, you are going to come over to new york

and be sitting next to me on this program with your british accent, okay? >> stuart, i've got some tips from a colleague tommy stadler. he said to say hello. stuart: he's a good man. thank you for joining us. see you again soon. ashley: very good. stuart: priceless target. speak in bites. we have a congressman who wants to make marriage great again. what's all that about? taxes. he's on the show. moments from now, you will hear from the president. he's about to speak. look at that market, up 100 points for the dow industrials. pretty good day. this is your car.

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stuart: we are waiting for the president. he's about to appear at the podium to speak to the peace officers memorial service.

we will take you live there momentarily. i want to bring in our next gues guest. he has this slogan, make marriage great again. he's introducing a bill to that effect. come on in, congressman greg a there anything still as the marriage penalty? is that what you're trying to fix? >> yeah, it does away with the marriage penalty. one of the things that i experienced when i got married was you have two single adults and then you get married and then your taxes go up tremendously. i don't think we should be taxing married couples at a rate higher than we tax the same single couples. so it's the make marriage great again act. it does away with the marriage penalty. stuart: are you concerned that fewer people are getting married these days and if they do get married, they get married much later in life? >> yeah, that's definitely a fact that's going on in our country right now. i think as people get,

especially people who go through college and are smart and thinking about their finances and they look at, if they stay single and live together, they may not want to get married because they are going to lose so much income and the increase in taxes so i think we should be encouraging marriage in the united states and i certainly don't think you should be taxed at a higher rate just because you get married. stuart: you have a bill titled make marriage great again. i guess you are going to submit it. what's the chance of passage here? will a vote be taken on it? >> so we filed the bill and now we are waiting to get referred to committee. i assume it will get referred to the ways and means committee because obviously they deal with tax issues. once that bill does get officially referred, i will talk with the ways and means chairman and ask for the bill to be heard in committee and hopefully the bill moves through the process. i think republicans and democrats would agree to not tax marriages. stuart: it could well be a bipartisan bill. thanks for joining us, sir. i'm sorry it's so short but i've got a lot going on here. for example, the saudi government now says drones, yes,

drones were responsible for the attack on an oil pipeline yesterday. come in, bret belikovich, the drone warrior, the man who knows about this. look, i can't see how you can possibly defend against drone attacks, especially on a pipeline. how do you defend hundreds of miles of pipeline from a drone attack? you can't do it. >> it's pretty tough and the fact is that the current state of the environment is that the modernization and weaponization of drone technology is no longer reserved for superpowers that have the ability to fund this. this particular attack that occurred within saudi arabia, in my opinion, is proof that the iranians in particular are clearly okay with escalating tensions in the region and even if that means disrupting the oil supply chain and basically key pieces of its infrastructure, because these attacks where a houthi rebel group that's funded by iran conducted these drone strikes, have iranian

fingerprints all over it. it's clear they're trying to send a message that they want to basically, they are a bit upset about these renewed u.s. sanctions and this increased pressure, and they basically pulled these organizations, these proxy groups, to step up their aggressive action by conducting these drone strikes. so in terms of being able to do something about it, i mean, you're right, that oil pipeline that was attacked, that is a significant amount of terrain. even just the fact that they were able to hit that location when it is so far well within saudi territory is one of the first attacks i've ever seen of its kind. stuart: would i be right in saying that the drone is now the terrorist weapon of choice? >> well, not necessarily, but i would say it's definitely a force multiplier for them. think about it. when you can buy a drone off the shelf that has the ability to provide them with surveillance capability and now an attack capability, i mean, as a terrorist organization, you are going to want to use stuff that's relatively cheap and

highly effective. we started seeing that with isis as well. what's particularly interesting here is that the iranians had actually created a drone, they built a drone specifically for this organization, this proxy group, the houthis in yemen, to use not as surveillance but rather as basically a flying weapon. so we're going to see more of that because they have already conducted a number of attacks already and we're definitely going to see a lot more. what really concerns me in particular here is not necessarily the physical damage, but the economic damage and the economic loss because it's clear the iranians are okay with disrupting this global economy and this is one way that they're trying to do that. we saw the price of oil go up $2 immediately after this attack when the saudis announced it occurred even though it didn't necessarily inflict too much physical damage, it has the potential of creating long-lasting economic damages and that's what i think we need to be concerned with. stuart: last one. i don't know whether you can answer this or not. i do know that you served for many years in the military and

were a drone operator with our military. what can you tell us, what can you tell our viewers about drone defense? does america's military have an adequate defense against drone attack of any kind? >> we have been looking at a number of solutions but in my opinion, the technology has gotten way ahead of what defenses they have. we have seen everything from guns that shoot lasers in the air to stop drones to even training eagles but my opinion, we are not at the point yet where the military is secure. they are looking into options. there's a number of companies out there, startups in silicon valley, that absolutely have fantastic options now that can protect critical infrastructure that can be used to not only detect a number of drones in the air but can also be used to mitigate them. so the military really needs to do a better job of getting those solutions and there's not one size that fits all. you should have a layered approach to it. you might want to have a different solution that can

detect drones from miles away, that can mitigate them in different circumstances. but right now is the time to do it. we are definitely seeing a number of companies starting to pop up that offer this technology more so than ever. stuart: good news. thanks for joining us, sir. we appreciate it. left-hand side of your screen, you see the gentleman, the person who is about to introduce president trump at this peace officers memorial service. let me bring you up to speed with what's been going on in the markets so far this morning. we opened with a loss of about 150 points. there's some negative economic news. what do we have? retail sales down? ashley: retail sales, industrial production was down half a percent, much more than expected. there was some weak data. then we had okay data from the home builders. stuart: then along came treasury secretary mnuchin, who is testifying before congress today, and he said very clearly he's going to go back to beijing to keep the talks going and he also said that the administration would delay for

six months imposing these auto tariffs on china. that was taken as very good news. i think it was at that point the market completely turned around. liz: treasury secretary also talking about steel tariffs with canada and mexico as well, easing back on that, too. stuart: yes. that's all positive news on lowering the temperature of the trade talks. ashley: thawing of the relationship. stuart: i don't think there's anything more that affected the overall market today except the iran situation, if i can put it that way. it seems like something is up in the middle east. ashley: we have had state department warnings from personnel in iraq, then we had another one about u.s. citizens in beirut in lebanon, telling people to be very wary. situational awareness was how they worded it. just be aware, be careful of your surroundings. it was just a warning out there which speaks to a tension throughout the region. we don't know anything specific. stuart: that comes on the back of -- okay. here we go. the president is on his feet,

he's heading to the podium. the president of the united states will speak momentarily and let us please listen in. >> thank you. thank you very much. thank you very much. please, thank you. what a beautiful day. third time and i have to say this is the most beautiful weather so that brings us a little luck and it brings us a little happiness. chuck, i want to thank you for the great job that you've done. your devotion has been incredible. i've known you a long time. we worked together and congratulations, really you're doing a fantastic job. thank you very much. thank you. thank you, chuck. as president, i am deeply honored to join in this sacred commemoration for the third year in a row. today in the heart of our

nation's capital, we come together to pay tribute to the american peace officers who made supreme sacrifice, all in the line of duty, in many cases from people they never met, for people they didn't know. we're hear to remember their noble lives, to thank god for their profound courage and to express our love, respect, everlasting gratitude for the heroes of law enforcement and that's what they are and were. the heroes of law enforcement. we're pleased to be joined today by attorney general william b r barr. doing a great job. secretary acosta, secretary chao

and acting secretary mcaleenan. thanks to the members of congress in attendance of which there are many and to the leaders of the fraternal order of police, including jim pasco, linda hainey. to all the families of our fallen officers, our whole country is praying for you, embracing you and pledging to you that we will never, ever leave your side. never disappoint you. your loved ones were extraordinary and selfless americans who gave everything they had in defense of our communities, our children and our nation. these brave heroes did not put on the uniform for praise or for glory. they wore the badge because it was their duty, their calling, their noble purpose to serve, protect like nobody has ever done it before. they embodied our highest ideals

and greatest aspirations. they were the very best of us. there was nobody close. today we engrave their memories into our hearts and inscribe their names into the eternal roll call of american heroes. in honor of the fallen, we pledge to always support their brothers and sisters in blue. we stand firmly, strongly and proudly with the incredible men and women of law enforcement. you do not hear it nearly enough, but americans across this country love you, they support you, they respect you, more than you would ever know, more than you would frankly ever think even possible. they have great respect for law

enforcement and the job you do. as we memorialize those officers who fell in the line of duty, we also grieve for the 87 officers who died in recent years as a result of exposure to toxic debris following the terrorist attacks of september 11th, 2001. i would like to ask all of the families and fellow officers of those 9/11 heroes to please stand. thank you. please. [ applause ] thank you very much. i can tell you i live in that city and lived in that city during that time, and the job

they did was incredible. today, we renew our solemn oath that we will never forget. before we read the names of the fallen, i want to share a few of the stories that exemplify the courage of those we honor at this ceremony. last year, america lost two extraordinary officers from brook haven, mississippi. patrolman james white and corporal zach mulk. james asked his mom to sign a waiver so he could enlist in the army national guard at the age of only 17. nearly 18 years in the military, james became something that he always wanted to be, a police officer. his teammate zach spent time caring for his nieces and nephews and family. on days when he worked the night

shift, he would tell them while you were sleeping, i will always be watching over you. last september, james and zach responded to a report of shots fired at a home. when they arrived, they bravely engaged the shooters. it was a bad two minutes. it was violent and it was vicious. within seconds, the killer shot james. at that moment, zach could have raced to safety. instead he raced to the side of his friend. as zach tried to save his teammate, he too was shot and killed giving his life for his brother in blue. today, we remember the words james once told his mom. he said mama, if i ever die in the line of duty, know that i

died doing what i truly loved. this morning, we are honored to be joined by the families of both of these remarkable officers. to patrolman james white mom, and dad and mom and jaycee and james, corporal zach's mom and dad, marshall and brother chris, you're heroes who loved their job. they loved their country and today their love shines down on you from heaven. they're watching right now. right now they're watching, they're looking down on you, they're proud. so please could i have you just stand up, the families, please. please. [applause]

thank you very much. two great men. also here with us for this ceremony are the families of investigator farrell turner and sergeant terrence carroway of the florence police department in the great state of south carolina. last october investigator turner went to the house of a man suspected of a crime against a minor. when she and her fellow officers approached a gunman opened fire from his second story window. nobody knew it could happen. nobody thought it was even possible. there was no evidence, no anything but they knew it was

trouble. at that very moment florence police sergeant terrence carroway, a very popular person in that whole area of south carolina, they all knew him, legendary guy, he was on his way home. he heard the call come over the radio. he sped to the scene, jumped out of his car and as racing to the rescue. you knee the bullets were coming -- he knew the bullets were coming, he kept going forward. he was struck by one of those bullets. in total seven officers were shot on that very terrible day. we lost sergeant carroway, a 30-year veteran of the department. as his pastor has say, he wore a badge of love and every time you were in his presence you could feel that love.

that is what they all say. investigator turner was also fatally wounded. she passed away several weeks later. in her final days hundreds of members of the commune came to visit her in the hospital. they loved her. they spoke of the way she not only saved them from danger but changed their lives through her grace, her support, and her prayers. to investigator turner's mom katy and sister april and to sergeant carroway's wife allison and son terrence, brother daniel