long island yesterday. this is the first time a great white tag has been picked up in this area. cabot is kind of a celebrity. he's got his own twitter account and the tracking app has since crashed because people are trying to find out if he's still here. maria: i'm going to go tweet. thank you, laura. thanks, everybody. great show. stuart varney right now. stu, take it away. stuart: i will try to make a transition. good morning, everyone. the administration is giving china's huawei some breathing room, delaying for 90 days the restrictions on u.s. companies doing business with them. is that a sign of some thawing in the trade dispute with china? seems like the market is taking it as something of an olive branch. look at this. stocks rallying this tuesday morning. dow will be up about 170. chip stocks rebounding on the huawei news. technology stocks coming back a little after their slump. retailers mostly lower on weak earnings reports. but the standout stock to watch

today again is tesla. watch out below. as we have detailed on this program, tesla faces a cash crunch and it has trouble selling its model 3. plus, wait for it, morgan stanley says the worst case is tesla falls to $10 a share. it will open this morning below $200 a share. it was another rousing rally performance for the president last night. he went right after joe biden. according to one poll, leads mr. trump by 11 points in pennsylvania. the president also talked of a new health care plan. it was classic trump, firing up the crowd. you will hear some more from his speech in just a moment. also, the "jeopardy" guy chalks up his 23rd win. you are about to meet joe namath. "varney & company" is about to begin.

don't forget, biden deserted you. he left you, folks. he left you for another state. democrats are now the party of high taxes, high crime, open borders. these people have gone nuts. you have some of these socialist whackos, they want to double and triple your taxes. politics is a crazy world but when you have the best employment numbers in history, the best economy probably that we have ever had, i don't know how the hell do you lose this election, right? stuart: i just say, it was classic trump and yes, it was. he was campaigning there in pennsylvania. our next guest says what mr. trump has done with the economy is nothing short of a miracle. peter morici is with us. peter, did he inherit the economic boom from mr. obama, as joe biden says? >> how could he possibly? don't you remember secretary geithner telling us we had to

get used to slower but steady growth without cyclical variation? over and over again, we heard democratic economists tell us it's simply not possible to grow this way. productivity growth is over, it's history, and we won't be handing a lot of jobs because we don't have people. well, productivity growth is busting out at the seams and lots of people are being found to go to work, and that's how we are accomplishing 3% growth. we go to 4% if he gets some cooperation on the hill instead of investigation. stuart: is it a miracle? that's a very strong word to use. is it the best economy in decades, a miracle? is it? >> we have not had a president villainized and stalked by congress and the press like this since john quincy adams. think about it. he's being treated like an occupying dictator in washington which is absurd. he was duly elected to accomplish this, in this kind of environment where every time he goes to court, they, you know, trump up, excuse me, an obama judge to nail him down. my feeling is that it is an

extraordinary performance. it reminds me of the 1955 world series, the padres shutting down the yankees. stuart: is it the best economy we have ever seen in america? the president uses those words. is it that good? >> no, it's not, and it can't be. not with the democrats behaving the way they do. think about it. no compromise on infrastructure, sorely needed. no compromise on immigration, sorely needed. and the list goes on. my feeling is you've got to have some cooperation in washington to get the 4% growth. we have had that in the past. america can do it again. the real problem here is democrats no longer believe in america so they basically want to turn us into, you know, latin america north. stuart: you are fired up this morning. >> when you raise these kind of issues it just brings up that reaction. stuart: fair enough. hold on a second. back to you in a moment. i want to deal with something else. i want to bring in kelly sadler with the america first action pac. do you agree with the polls?

in pennsylvania they show biden up by 11 points. do you agree that he is the frontrunner? >> i do not agree with any polls at this time. it is way too early. with 20 plus democrats in the race, i mean, we don't know who is going to excel in debates and who is going to outshine one another and the democratic field is very divided. you have joe biden, who the press is lauding as the blue collar champion when peter just said under the obama era we were told that 1.9 gdp growth was the new normal, that those jobs weren't coming back, and basically, you know, you didn't build that. this is what joe biden seems to be promising, vote for me because i can return you back to the old status quo. so of course, you know, some of the pollsters and some of the political pundits are looking okay, who can be our next star. those rising stars are on the radical, radical left. green new deal, medicare for all, reparations. stuart: on this program this week, we have had a couple of

guests who say the frontrunners will be mayor pete and senator kamala harris. they will be the frontrunners in the future. what do you make of that? >> i think mayor pete needs to get back to south bend. there was a couple articles yesterday saying that since he's announced for the presidency he's been there fewer than 50% of his time and the city needs him. so you know, he did a great job on fox news the other night in the town hall. he appears to me kind of like a wolf in sheep's clothing. he's saying he's a moderate, yet he supports things like reparations, like getting rid of the electoral college which would basically give california and new york the right to decide this government. he says he wants to pass the supreme court and expand it for more liberal ideas. i don't think these are the types of talking points that are going to resonate well with rust belt america. as for kamala, she likes to say let's have a conversation about that but i really don't know what her policy ideas are at this point. stuart: you've got to hope that

the performance of the economy beats those who dislike the president's style and tone. that's what you've got to hope for. that the economy wins. that's where you're coming from. >> absolutely. you know, you know, we have never seen, we have 3.2% gdp growth, we have more jobs in america than americans to fill them. this is a time when we had the deregulation coupled with the tax breaks after the president put those two things in effect, we went from gaining 60,000 jobs a month to now more than 200,000. we have had the fastest job growth among blue collar americans in 31 years. this is not some sort of fluke. this is the result of the president's policies. stuart: if you listened to him last night he's definitely running on the economy. kelly, thanks for joining us this morning. always appreciate it. thank you. >> thank you, stuart. stuart: let's check out futures. tuesday morning, how are we going to open? the answer is up, maybe 130, 140 points. but a better gain actually for the nasdaq. technology looking good this

morning. how about the dow component, home depot. sales falling short and it's down 1%. tj maxx, their parent raised its outlook, that's good for the stock but not that much. not that good. it's up half a percentage point. kohl's cut its profit forecast, down it goes, 10%. jc penney reported a bigger drop in sales than was expected and it is down 6%. barely above $1 a share. i've got another number for you. the investment firm ubs says that china tariffs could force 12,000 stores to close. back to peter morici. by the way, ubs also says $40 billion in sales are at risk. they are pointing to dire consequences of these tariffs being extended. what say you? >> oh, i think those are silly numbers. manufactured by people that don't want donald trump in the white house. those numbers are way too large. i will say this. there is some pain associated with the tariffs. i wouldn't be an economist in

good standing if i didn't acknowledge that. but the pain is worth the gain. we simply can't afford to continue to be engaged with a system that pirates our technology and steals our future. i wonder if ubs factored in all the lost jobs in places like south bend where i was two weeks ago, unlike the mayor, and i saw really what is a very depressed circumstance. i wonder if they factored that in. all the retail sales that are lost because of depressed incomes in places like pennsylvania, ohio, indiana, wisconsin and minnesota. stuart: answer me this. have we yet seen any increase in inflation, any increase in prices, because of the tariffs which have already been placed on chinese goods? anything? any evidence of that so far? >> i think there is some evidence of some increased prices, but it's not very large. going forward, you know, i looked at wells fargo's estimates and on the upper end, the tariffs were put on everything, everything that comes in, it would add to the consumer price index. if nothing else good happene

happened, .3%, .4% but that doesn't consider the fact that when these tariffs go on, the chinese depreciate their currency, other suppliers come online, chinese suppliers cut their prices, people move to places like vietnam and so forth. you factor that all in, i think these tariffs are good for .1% to .2% on the cpi. that's if we get tariffs on everything. now, if that's going to cripple the american economy, i suggest ubs start putting up plywood and nails, board up the bank and go home. stuart: that's a good note to end it on. thank you very much for being here this tuesday morning. see you later. >> take care. stuart: now this. secretary of state mike pompeo and other very senior trump administration officials will be on capitol hill today. they are going to brief lawmakers on the situation in iran. are we headed for war? there's the question. we will answer it. michigan representative justin amash is getting a primary challenger after saying president trump committed impeachable offenses.

we will talk to the republican who is going to take him on in 2020. next, yeah, joe namath has got a new book, he talks about the darkest moment in his life and how it encouraged him to give up drinking. he's in the studio momentarily. "varney & company" just getting started.

stuart: i know you've been waiting for this. the new book from a sports legend, the man himself, joe namath is with us. the book's title is "all the way, my life in four quarters." i don't know why you keep coming back on this program. it's great to have you. >> i like to say it's because of you, but the young lady over here -- stuart: you're so smooth. now then, in the book, you talk about the low moment of your life and how you recovered from it. you quit drinking. take us through it. >> well, you know, i tried it,

going back 1986 and did for 13 and a half years because my former wife thought i should. so i became what i was later taught in alcoholics anonymous, i became a dry drunk. in other words, i didn't have the education. i found an excuse to go back to drinking and i continued drinking until i made a mistake and made a young lady feel awful, susie colbert on television and i didn't even know that. the next day i got a call from my friend, mr. walsh told me what had happened and i was shocked, sad, angry, disappointed, and i called susie first. she gave me a pep talk, you might say. she understood the situation and inspired me to move forward, and i did. stuart: you quit. >> i went and got an education is what i did. yes, i went and got help. stuart: how did you quit?

alcoholics anonymous? >> getting the education. alcoholics anonymous came after the facility that i checked in and went through the process there. stuart: okay. >> then when i left there, i went to alcoholics anonymous on a regular basis, and still run into folks every day or nearly every day that come up and say joe, i'm a friend of bill's. i said scream it out, that's fine, me, too. getting the education and learning about that voice in the head every now and then comes back, joe, little glass of wine, red wine. we put a name on here but i learned in alcoholics anonymous, his name was slick. stuart: oh. >> slick. yeah. stuart: you haven't had a drop in 14 years. >> 15, whatever it was. stuart: the low point in your life was that incident. what was the high point of your

life? >> you know, when we talk points, i remember my uncle joe passing away. see, there are different low points for all of us. i believe we lose loved ones. that was a tough point in my life. you know, i'm not going to call it a low point but it was. yeah, i will. but it was one of them. there are other ones that were more emotional in a sense. stuart: give me the high points, joe. >> winning the championship in college and in pro ball, you know. stuart: there you go. >> walking into the locker room and seeing your teammates wanting to throw stuff at you. stuart: i just want to change the subject for a second. the nfl, i believe the players union, they are studying the use of marijuana for pain management. have you got anything to do with that? i know you have worked very strongly on concussion and treatment for concussion. what do you make of this pot usage?

>> first, there are traumatic brain injuries that happen more away from sports than they do and our science needs to improve. hyperbaric oxygen therapy which i have experienced helped me tremendously. as far as the marijuana use in sports, these commissioners, they have, mr. goodell had experts working with him. they are very smart people. they are going to deal with it the way they see fit. i don't want anybody to be high on anything while they're driving a car. stuart: sure. >> all right? if you're playing games or you're doing something or if it makes you get over some pain that you may have in some form, god bless you. but don't get out on the highway with it. stuart: joe, one last question. what are you going to do now? >> what am i going to do now. i'm going to go home and see my daughter. stuart: in the future. >> a fifth grandchild is coming. stuart: you already have five? >> i have four. stuart: i have nine. come on.

>> you know what that's like, right? it's a joy. i thank god every day several times because if i didn't stop drinking, i really believe i wouldn't be here today with you all. stuart: joe namath, i hope you will autograph that book for me. i might be able to sell it. i wish i had hair like that. joe namath, you're all right. thank you very much for being with us today. >> thank you for having me. stuart: all right. we will take a look at futures. this is a program about money, essentially. we are going to open this market on a tuesday morning on the upside. thank you, joe namath. that's a way to get the market going. well done. we'll be back in just a moment. see that's funny, i thought you traded options. i'm not really a wall street guy. what's the hesitation?

eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade

stuart: as we said with tesla, watch out below. the stock's down nearly 4% this morning at $197. i want to bring in dan ives, who analyzes tesla. he has said that the tesla is in effect a code red situation. welcome back to the show, sir. >> thanks for having me. stuart: morgan stanley said this morning that worst case for tesla stock is $10 a share. that's pretty dramatic.

how far down do you think it's going? >> it all comes down to can they get profitability in the second half. that continues to be the challenge here. if they cannot hit profitability in the second half, that's where all bets are off and they will have to raise more capital. stuart: do you think that they can make a profit in the second quarter? stuart: i think second quarter is going to be tough. i think there's a shot that they can get to profitability in the second half but right now in our opinion, that's the challenge. they are trying to balance what's happening on the demand side which has not really seen a rebound with an expense structure that's bloated. right now it's the perfect storm they are facing and in our opinion, i think you are starting to see some darker clouds on the horizon for musk and tesla. stuart: you are extremely negative on the stock, aren't you? >> we are someone that was bullish a long time bull. i think what's really changed

our tune is demand is not up in the u.s., there are logistic problems and at the same time they should focus on the core demand. they are focused on insurance and other sci-fi projects. that's the problem for investors. stuart: short, sharp, very much to the point. we appreciate that. dan ives, everyone, on tesla. the market overall will be down this morning. sorry, i do apologize. i'm looking at tesla. the market will be up, about five minutes from now we will open and we will be higher for the dow, the s&p and for the nasdaq as well. back with the wall street opening after this. hmm. exactly. liberty mutual customizes your car insurance, so you only 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 ♪

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stuart: there it is. he's back. "jeopardy" champion james holzhauer wins again. susan: 23 games, $1.7 million and still second behind the all-time best, ken jennings. but he returned after a two-week hiatus. let's take a look last night. all right. well -- ashley: we can re-enact it. susan: it was on french authors. i never read anything from zola. that was the final answer.

still behind ken jennings, 74 victories for him. but at 23 games he's amassed $1.7 million. he knows how to go for the big wins. ashley: he also knows the answers. stuart: forget gambling. now we will talk about investing. the market is open at 9:30 this tuesday morning. we are up 100 points from the get-go. 112, 106. we have not opened all the dow 30 yet but as they open, the dow keeps on inching higher. now we are up 129. the dow has reached 25,807. pretty clean sweep of green. that is stocks going up on the left-hand side of your screen. got it. how about the s&p 500? what kind of percentage gain does that show? similar to the dow, up about half a percent. as for the nasdaq, nice gain. up nearly, what, .83%, solid gain for tech in the early going. joining us, mike murphy, d.r. barton, susan li, ashley webster

all together. i will start with retail. down big today. some disappointing news from home depot, kohl's, jc penney. kohl's especially hit hard because it lowered its guidance for the year. here you have all of these retailers not doing very well. why are they not doing well in a booming economy? >> i think people are spending money and we have seen that, but they are not spending it in certain retailers. i think home depot would be the one outlier here. the other one, you can sit at home and order your stuff from tj maxx or jc penney is irrelevant anyway or from kohl's. you as the consumer have better options and you can do it easier, better, cheaper, from your house. the retailers, if you are not giving them something different, like you go into home depot and they will help you fix your bathroom or whatever it is, if they are not giving something like that, consumers will not come there. it's not a take on the consumer. this is company-specific. ashley: kohl's had a blowout fourth quarter and have been

very active in trying differing approaches. they partnered with amazon. you can take an amazon return to a kohl's. they partnered with planet fitness, they are devoting parts of their stores for fitness. they are really trying things but this first quarter was a big disappointment. >> i'm with ash on that. i'm buying kohl's down here. i think this is too much of a pullback. the innovative things they are doing. but the haves and the have-nots. stuart: kohl's is down 12%. >> yeah. too much for what the guidance went down. walmart and amazon beat on revenues so there are the winners, big winners in retail, then there's kind of everybody else. stuart: two and a half minutes into the trading session tuesday morning and we are up 164 points. now, question for the big picture here. is china's trade still the real mover and shaker of this market? is it still the most important factor? >> overshadows everything like a mighty oak. everything else is just underneath the china/u.s. trade issues. any tweet, any social media mention in china, anything that

happens, overshadows everything else and it's going to stay that way until we get resolution. susan: that's because the fed is just going to stay -- the federal reserve would be the biggest game in town if they were going to actually raise interest rates this year but we know where they stand. i think china's a big question. stuart: china is the big story. china is the big factor in this market. >> china is the big story but the way i see it, if a deal falls apart completely and both sides walk away it will be a real negative for the market. anything short of that, the market's going to hold where it is until we get a deal, then it will break much higher. i think underlying -- the underlying companies in this market right now are telling you there's enough support there for the markets to go higher. stuart: i just don't see a total break where they walk away at -- >> completely agree. stuart: i just don't see that. susan: we necessitateded a deal. stuart: they wouldn't risk that kind of real break, i don't think. take a look at apple. took a hit yesterday on concerns that china trade or china could target the iphone in retaliation for us, the u.s., cracking down

on huawei. do you think they would do that? >> they could. stuart: go after the iphone? >> it's interesting that they haven't. i think that just tells you that both sides, there's no one throwing a nuclear bomb as of yet at the other side. i think that actually sets up good for the big picture of things. apple has been really hurt in the last few days by some news that broke. >> big chance for china and huawei to say we are going to do something different. right now they are -- we are going to keep doing business as usual. we are going to keep stealing technology where we can and i use that word not loosely, and if they make that break, that break would move the markets huge. >> hugely. stuart: check the big board. we are four and a half minutes in and are up 144 points. individual stocks moving. higher profit at auto zone, it's up nearly three bucks but the stock is priced at $980 a share. another stock that i don't understand. why on earth don't they split?

they never split these days. google putting a hold on its suspension of android services to huawei. this will allow google to quote, provide software updates and security patches to existing models for the next 90 days. the stock is up seven bucks. amazon, its whole foods unit says it will replace plastic straws with paper straws. no comment on that. the stock, $1874. oil down to $62 a barrel today. the price of gold i believe is slightly lower. where is it? down seven bucks at $1270. now look at general motors. shrinking the size of its car sharing service, pulling out of nearly a dozen markets. why are they doing this? >> well, i think this whole maven idea was them getting some market intelligence. it's not their big thrust into ride sharing. i think they will have one but what they have been doing is using this to understand

preferences and likes for cars as well as the ride sharing business, and i think we will see a big move out of them later. stuart: show me lyft. can you put that stock on there, please. would you buy it? you like lyft? >> remember at $68 i said no. at $58 i said it's going to hit $50. stuart: and? >> when it hit $50, i bought some. i'm starting to accumulate because i agree with murphy's analysis here. i think it's a long-trm plerm p. i'm going to accumulate. not going to touch it. stuart: you like? >> i do like long term. it sold off so much from the ipo but i prefer to buy uber. we did buy uber. i think uber is the one company out there that i see that can actually make a run at some of the big techs we talk about like amazon. i think there's much more upside. susan: what did you buy? >> how many shares? susan: yeah. was it in the 30s? >> we bought last time i was on, last tuesday, about 38.20.

stuart: i was going to buy. i didn't. i missed it. >> that's a nice buy. stuart: nothing wrong with buying it at $41, $42, $43 if you think it's a long-term deal. >> you are buying it at a $70 billion market valuation. if you believe it could be a 400 billion or 500 billion company, it's a nice return for you. stuart: is it another microsoft for me. >> could be. stuart: really? >> absolutely. stuart: uber? >> uber. u-b-e-r. stuart: got it. how about disney? their espn division will drop politics. they are getting out of it. the president of espn says it's not what viewers want. >> they have to change the name because it was the entertainment sports politics network. >> for awhile. stuart: smart business move? >> it's a great business move. i think the business people at espn finally realized it's been the analysts and the business managers that have given these current people their platform and they say we get to control the platform. stuart varney and his team made this the number one business

show in america and if i want to come on and talk about my issues, you have the right to say yes or no, d.r. that's what espn is doing. they are smart and are handling it well, finally. stuart: nothing wrong with that. susan: espn used to be the cash cow for disney. they lost around 15 million subscribers for the network. this is about people moving to streaming and watching their sports elsewhere as well as politics. i'm not sure. >> a little bit of both but for certain, i think nobody is tuning in to espn or anything sports-related to hear someone's personal views on politics. >> who cares. >> no. stuart: do they tune in this show to hear my personal view of politics? >> they may. stuart: they may. >> they should. stuart: i have a number for you. it's a big, big number. global dividends reached a first quarter record of $263.3 billion. that's 7.8% up in the first quarter compared to last year. now, i'm interested in this

because at my age, i am a dividend investor. okay? what do you say? >> everyone should be a dividend investor. since 1930, since 1930, to 2018, 43% of the total s&p 500 return has been dividends. 43%. not growth, but dividends. that is a great place to have part of your nest egg, no matter how old you are. stuart: youngsters like susan and ashley and murphy, they have no interest in dividend stocks. susan: absolutely i am. >> but dividends can grow. susan: compound interest. >> as long as you are buying solid companies, for instance, apple didn't have a dividend, now they do. you wouldn't sell it just because they have kind of shifted their business, now they are giving money back to shareholders. but right now you have corporate buy-backs where some people would take the opposite side of this, saying it's financial engineering, but i think it's companies doing a good job running their particular company

and the winner is the shareholders. more and more people should be investing. susan: $188 billion in buy-backs in the first quarter of this year by s&p companies. that's on pace for the second biggest quarter of buy-backs since 1998. stuart: no wonder the market did so well. susan: that's right. buy-backs. stuart: i have money in at & t because it's paying me over 6% dividend. what's wrong with that at my age? susan: nothing. stuart: don't touch it with a ten-foot pole. susan: i would love to. compound it 20, 30 years? stuart: you would never invest in at & t, would you? >> here's the risk. if you are getting a 6% dividend which is great and you are losing 7% per year, it's not a good investment. i personally would advise you to yes, buy uber and yes, also look at other places where you can get a better total return than at & t. stuart: what do you think my life expectancy is? >> solid 30 years. solid.

solid 30. stuart: time to bring this thing to an end. it's 9:40. d.r., mike, gentlemen, thank you. good stuff. check that market. we are indeed ten minutes in and up 126 points. the dow is at 25,800. the fed's out with a new warning about chinese-made drones. they may be stealing your data. we have details on that. that's coming up in our 11:00 hour this morning. apple's tim cook telling college grads his generation failed them. that's us. baby boomers. ashley: did he pay for their student loans? stuart: he says they should have done a lot more, that's us, baby boomers, to tackle climate change. that's from the apple guy. michigan congressman justin amash will face another republican in the primaries next year because he said president trump committed impeachable offenses. amash's primary challenger joins us, next. [knocking]

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stuart: we are up 140 points after 14 minutes worth of business on the dow. michigan congressman justin amash became the first republican to say that president trump committed impeachable offenses. now, here's how president trump responded to that. roll tape. >> well, i've known him and he's been against trump from the beginning. he probably wants to run for some other office. i don't think he'll do very well. he's been a loser for a long time. rarely votes for republicans and you know, personally, i think he's not much. stuart: very different president, isn't he. here is amash himself, talking about the republican who will challenge him for his seat next year. roll that tape.

>> -- primary opponent now running after your tweets about impeachment. >> it's not serious. >> you still feel you're safe after two more years? >> i'm still very confident in my district. stuart: jim lower is mr. amash's challenger and jim lower joins us now. mr. amash says you're not serious or that your challenge is not serious. what's your response? >> my response is that clearly shows how out of touch with the district he is. look, this district supports president trump and they have been supporting me overwhelmingly since i have announced this campaign and in the gear-up to it. we just had thousands of dollars in donations come in right away. all of our events yesterday were well attended and the response was just overwhelming. this district supports trump overwhelmingly. i support trump. they support border security. they support, you know, being tougher on illegal immigration and the congressman has voted against those items. so they are going to support me, i'm very confident in that.

stuart: why do you think mr. amash did this? why? >> i don't know. you know, maybe just to grab attention. if you take a look at it, even the speaker of the house, nancy pelosi, isn't calling for impeachment. the mueller report did not recommend that. really, rashida tlaib and other hardcore liberals like aoc and justin amash apparently now are the only ones who are calling for this. he's just completely out of touch with reality, definitely out of touch with west michigan. they will support me because they know that i will be a strong voice for them in the united states congress. stuart: congressman amash said this just a couple of days ago. i'm not sure of the exact date when he said it, when he came out with this impeachable offenses statement, but you were really fast to jump in. were you in within 12 hours of what he said? >> well, we were planning to run anyway. the congressman has been there for ten years. he hasn't gotten anything done and it's because of this type of behavior. he's isolated and marginalized himself within washington.

if you look at the caucus, he doesn't have revolt with them, he doesn't support them, he doesn't help them, he's opposed to the president. it makes him ineffective in the district. if you look at my work as a state representative, i have been able to work with the governor, with our caucus to not only elect republicans but to get policies done that have helped our state prosper. so that's why i decided to get in the race, not only because i'm very pro-trump but because i can go down there and work with president trump, work with other republicans and even democrats to actually get things done for our district and for the state of michigan and the country. stuart: all right. jim lower, we will follow your progress through to next year. thanks for joining us. >> i appreciate it. stuart: thanks for being here. we have the "wall street journal" reporting that the u.s. has slowed hiring of chinese nationals by chip makers and susan, i want to know why they are doing that. susan: under rules in place for decades, for sensitive technologies like chips, not only do you need a visa for your foreign nationals, you also need a license as well. according to the "wall street

journal" it looks like hiring has been slowing, at least these licenses have been approved very slowly in recent years, according to their sources. stuart: the fear is the chinese nationals working for these american companies will take their tech secrets and take them back to china. is that the fear? susan: yes. there are concerns about stealing intellectual property and this is something the white house wants to protect in this trade deal, of course. don't forget chinese nationals account for 60% of these licenses that have been doled out from 2013 to 2017. and these jobs are not easy to fill. they need very high skills and technological know-how. stuart: i just want to get 30 seconds worth of this in. i see a problem here. what about american citizens who are of chinese descent? they're not part of this deal. susan: no. stuart: but are they under suspicion? it's a nasty thing, question to approach, but you have to approach it. susan: i understand the perception and maybe people's perceptions but this story

relates to chinese nationals, those that aren't born here in the u.s. and probably don't have american passports but you're right, there might be that view that everyone is painted with the same brush and they shouldn't be. stuart: got it. susan, thank you very much. check the dow 30. still on the upside, nicely so. the dow is up 130. we've got about, what, i can't do the math. a preponderance of green in the dow 30. ashley: very poetic. stuart: honda, here's a good story. what is the best-selling vehicle of all time? what do you think it is? it's that. a gas-powered bike and honda makes it and honda is releasing a new version. we've got one of these things in the building. we will tell you how much it costs and what makes it so special. the world's best-selling vehicle. didn't know that. fact is, every insurance company hopes you drive safely. but allstate actually helps you drive safely...

with drivewise. it lets you know when you go too fast... ...and brake too hard. with feedback to help you drive safer. giving you the power to actually lower your cost. unfortunately, it can't do anything about that. now that you know the truth... are you in good hands?

at comcast, we didn't build the nation's largest gig-speed network just to make businesses run faster. we built it to help them go beyond. because beyond risk... welcome to the neighborhood, guys. there is reward. ♪ ♪ beyond work and life... who else could he be? there is the moment. beyond technology... there is human ingenuity. ♪ ♪ every day, comcast business is helping businesses go beyond the expected, to do the extraordinary.

take your business beyond.

stuart: the honda super cub is the best-selling vehicle of all time, more than 100 million have been sold since it first hit the road in 1958. hasn't been around in america since 1983 but it is making a comeback and fox news automotive guy is going to tell us about it. welcome back, gary.

okay, how much? >> $3800. basically that's it. there's only one model you can get for 2019. it's pretty much one size fits all. stuart: 3800 bucks out the door, that's your lot, no haggling, nothing like that. >> exactly. stuart: okay. what's so special about it? >> it's a fun bike. it's 125ccs. it's a motorcycle, not a scooter. it's kind of in the middle there. in california you can't ride on the highway but in a lot of states you can. i got it up to about 65 miles an hour. it's happier under 50 around town, on the streets. gets 100 miles a gallon. again, very affordable, easy to ride. has an automatic clutch, doesn't have a four speed transmission. you have to shift with your foot but this one is all modern. electronic fuel injection, l.e.d. lights, got antilock front brake, even has a wireless key that you use and a built-in alarm. stuart: i would imagine, look, i have been to asia and i have seen those things all over. susan: vietnam. stuart: really crowding the streets. do you think it might happen here? i walk outside on to sixth avenue and -- susan: i hope not.

>> we've got the delivery guys here. stuart: exactly. >> it's a little more popular in places like california. it is a staple in asia. honda itself built 100 million of these. there is also plenty of knockoffs sold over there as well. it is an extremely popular bike historically. stuart: i see other stuff appearing on the streets in america, too. electric bikes. delivery people in new york use electric bikes. >> even though they are illegal in new york. stuart: right. and now just yesterday, in new jersey, small town where i live, i saw the arrival of these scooters. you know, foot scooters. >> yes. yes. stuart: i can't do it right. you know what i'm talking about. susan: do it again? stuart: no, no, no. you know what i mean? all kinds of individual small vehicles being introduced on to america's roads. >> let me tell you, honda didn't say how many they brought to america this year, but they have already allocated all of them and they are begging to get

more. in fact, the company's best-selling street bike right now is an even smaller model called the grom which is the same engine, and it's just popular. look, $3800, something that's a lot of money to people, it's couch money and this is something you can pick up for fun as a run around town or if you -- stuart: that grom thing, can you put it in the trunk of a car? >> not quite. definitely an suv, though. but you talk electric bike, it is working and showing a prototype of an electric super cub that might be coming pretty soon. stuart: very interesting. stps a good story. thank you very much for bringing it to us. you have one outside, don't you? >> right down the hall. stuart: check the big board. we are 26 minutes in and we are up 115 points. there you have it. more than a million people have watched this. 8-year-old girl's impersonation of alexandria ocasio-cortez. she will join us in our next hour.

i want to know how she got started, what her friends think about this, and does she have a british accent. we are about to find out why president trump's campaign was spied on and who authorized it. i sense a real sea change in politics coming. my take on that is next. . . brad, i've got an idea for a song. nationwide has this app. you can pay your bills, even start an auto claim. so what i was thinking... let me guess. ♪ start a claim right from your app. ♪ have you been looking in my notes? ♪

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stuart: it is precisely 10:00 eastern time. the big board shows a gain of 111 points for the dow jones industrials. we have numbers for realtors, anybody interested in the home market. the latest read on existing home sales. ashley: we do. just feverishly writing them down. coming in on annualized basis at 5.19 million. that does miss expectations. don't forget march was a disappointment. we had a great number in february. we're off to the races. we fell in march. we're falling, this is for april, down .4% from the month before. so -- stuart: that is not a very active home selling market.

5.1 million on an allized basis. that is nowhere near the six million we were doing in the housing bubble of course. scott shellady is with us. come on in, scott, talk to me about this housing number. i'm waiting for housing to pick up. i'm not seeing it yet. >> that is one of the big mysteries. we went with 0% interest rates for seven or eight years. struggled to get housing going. we're doing very well and housing is still lagging. there is something happening out there. you saw numbers with home depot. stuart, nobody is paying attention to the lumber market. it is difficult to trade, there is not a lot of volume there. but we're about to set a yearly low in lumber. if you thought the economy is doing really well, that wouldn't tell you lumber is trading at yearly low. there is something happening out there. we're having hard time moving new and existing stock. stuart: i don't get it, 30 year

fixed-rate mortgages can get one at 4.1%. historically, very low. adjustable, 2 1/2% for the first five years, something like that. hold on a second. scott? ashley: median home prices up again 3.6% year-over-year. now at 267,300. stuart: okay. ashley: inventory has increased. that has been a problem as we know. so that is perhaps a little bit of light. this is not a great report. stuart: you heard that, scott? 267,300, is that median price? ashley: correct. stuart: median selling price for homes in america? ashley: that is up 3%. stuart: i don't see that as a huge problem, do you, scott? >> no, i don't think it's a huge problem. we would like to see more people buy them at higher price. there is something happening out there, stuart. i think we might have a little bit of sea change in mentality. i'm probably in the same age group as you are, when it came to housing, we always wanted to own one, instead of rent one. we wanted to pay ourselves, instead of anybody else.

millenials are backing off. if they don't run out to get drivers license on age of 16, on their birthday like i did, they wait until 21, 22, i think they're taking same view of housing. stuart: i think you're right. this is a cultural view of millenials. dow industrials are not responding to the housing news. we're up 130. and now this. a prediction. by the end of the mon, possibly in the next few days politics will shift. we're about to find out why president trump's campaign was spied on, who authorized it, who knew about it, and who was telling the truth about it and who was not. this is the side of the russia probe that the rest of the media hasn't had time to cover. they're too busy with collusion and now they're too busy with corruption. the details are mind-numbing, who met who and when, what did

they say, and what does that mean? let me simplify it. the trump presidency was deliberately disrupted because hillary supporters within the government couldn't stand the idea of a trump presidency. hillary clinton paid to get what her campaign thought was dirt on trump and that dirt fake, as it was, was used as an excuse for america's own government, america's government, to spy on an opponent's presidential campaign. that sounds like breathtaking stuff to me and we're going to get the truth one way or another very soon. in advance of all of this, members of the obama team are fighting among themselves. loretta lynch arguing with james comey. rosenstein unloads on comey. hillary clinton and john brennan have gone rather quiet. they know things are about to break. when they do, the debate shifts. you will still hear a lot of noise about the president's tax returns and his business records and obstruction but that's, but the truth about the sifter --

2016 election will be far more interesting. it cannot be swept under the rug any longer. it will dominate politics whether the left likes it or not. the second hour of "varney & company" is about to begin. ♪ stuart: tuesday morning, 35 minutes into the session. we're up 135 points on the dow, 25,800. it has been a rough morning for retailers though. sales missed at home depot. kohl's cutting the outlook for the year. that is falling out of bed. down 12%. jcpenney losing money. a bigger drop in sales than expected. a very rough morning for retailers, just about across the board. right. as you may have heard a moment ago politics in america is at a turning point. bill mcgurn is with us, "wall street journal" editorial board guy and a fox news

contributor. am i right? there is a sea change in politics coming as we try to figure out what went on in '16, am i right? >> absolutely. we're waiting for now the biggest part of the fact bombs to drop is the inspector general's report on the fisa warrant. he has been working on it since last march. two u.s. attorneys are investigating hillary investigation on emails and fbi's origins of its counterintelligence investigation. there were criminal referrals from congress. president trump says he will declassify all this stuff. one reason it is taking these people by surprise, they never imagined, do you think peter strzok ever imagined his texts to his mistress would ever be public? james comey, the fisa warrant, fisa warrants are not usually publicized. it is a treasure trove there. these are people, john brennan, former cia director accused donald trump of being a russian agent and or a russian asset.

he said he had bad information at cia. if he had bad information, he is responsible. stuart: yes he is. certainly in the next few days or the next few weeks we'll hear about impeachment and obstruction. >> this will blow it out -- stuart: you think it will -- >> look what happened last year when the inspector general released the report on the hillary information. it found andrew mccabe lied four times to investigators, three times under oath. these are concrete things. james baker, former fbi counsel he is under criminal investigation for leaks. there is a lot going on there. i think that it is going to be a fairly exhaustive report, even though the ig is limited in his weapons. stuart: you have written a piece for "the wall street journal" today and the headline reads, tales of parson comey, former fbi chief can see into other men's souls. are you saying that james comey does not always been telling the truth? >> i think he saids it a little. this week we learned --

stuart: shades? >> even james baker, his counsel said they argued over mr. comey's telling president-elect trump he was not a subject of the investigation because james baker says that is not really true. if we're investigating the campaign, we're kind of investigating him. this guy puts out these tribute to his own honor and dignity and so forth and largely that has been accepted by the media because it has been deemed useful to the anti-trump campaign but now his own record for transparency and honesty is going to come up for question. stuart: do you think "the new york times" and "the washington post" and abc news and cbs, whatever the title is, you think they're really going to dig into this? >> they have to. i don't know whether there will be criminal indictments. that is real question. was this sloppiness or over zealousness or deliberate abuse of power? if there is deliberate, there is likely criminal indicts.

if there is criminal indictments, someone will blab. someone will try to tell us the whole story. you mentioned bickering. they are bickering among themselves. comey is better than some arguments with john brennan for example, about using the steele dossier and so forth. it is going to be ugly think. not for us but -- stuart: very interesting i suspect. >> yes. stuart: keep digging there, bill. bill mcgurn. scott shellady come back in again. tell us about the price of pork. they're slaughtering, what is the word, herds of hogs in china because of swine fever. our prices for pork products are rising. is that what is going on? >> as of late that is definitely the case. we have "tale of two cities." fund manager in the hog markets in the states getting long or buying contracts because they think this asian swine flu will be a bigger deal. we have big producers here in the states are worried if it

comes over here as well you could see the hog prices plummet as well. that is the "tale of two cities." as i learned yesterday on your show, with little cesar's pizza having fake pork or sausage in their pizza, we don't have anything to worry about, right? stuart: whatever you say, scott. if you're watching the show yesterday, do you remember us talking about a full english breakfast? >> yes. you nailed it right on the head. added the baked beans. that is my favorite part. stuart: i knew it. i knew it. welcome back to america. >> i'm a good advertisement for your -- stuart: whatever you got to say, good for us. scott, thank you very much. >> see ya. stuart: president trump says any provocation from iran will be met with great force. that's his words. things are heating up. now here is the question, are we heading towards some kind of skirmish or war with iran? we're talking with a former pentagon official about that next. apple's chief tim cook tell

as 2019 graduation class, quote, his generation has failed them on climate change. we'll see what governor huckabee thinks about that. the eight-year-old who made a name for herself as an aoc impersonator on the show with us, ava martinez. now known as mini-aoc. she is coming up as the second hour of "varney" rolls on. ♪

stuart: we're up 120 points. the dow reaching 25,800 as we speak. big techs always have to check them because they're the most active stocks and that is where the money has been going. apple is up two bucks this morning at 185. alphabet down, amazon down.

facebook 183. microsoft up 43 cents. not that much of a movement for big techs even though they have been taking somewhat after beating recently. then germany spending record amount of money spending on all the refugees that pouredded into the company. ashley: 25 billion u.s. dollars to integrate one million refugees. they spend money, germany on the root causes. in other words they go to the home countries where the migrants come, try to create conditions at that would encourage people, a, not to leave, perhaps others to go back. that is a ton of money. angela merkel came under a lot of fire for letting in over a million migrants, just opened the borders. she continues to say that was humanitarian necessity but she has vowed, however that there will not be a repeat of that mass migration and integration by trying to better the conditions from where these people came from. stuart: $25 billion. ashley: dollars. in one year, that is a lot.

stuart: germany nowhere near the size of america. ashley: no, no. stuart: 25 billion. got it. happening this afternoon very senior administration officials brief congress on iran. john, you know the pentagon from the inside. you can tell us how they're thinking. seems to me america does not want a shooting war with iran, we want to contain them, am i on the right track? >> i think you're probably -- i think there are big parts of the country that want to contain iran and big parts of country that want to contain iran and parts of washington were content with the iran deal trying to keep iran under wraps. stuart: our military doesn't want to invade iran or bomb iran, or am i wrong? do they want to do that? >> military has a lot of different opinions. but the general consensus is containing iran is less risky, less bloody or expensive than trying to go to another big war

in the middle east. the military knows past 15, 20 years, how expensive, difficult the kind of fights these are. stuart: the president when elected, he said we don't want our troops in the middle east. we want them out. he doesn't want to put them back in, doesn't he? >> that is what he suggested towards the end of last week, he would rather talk or find a diplomat take way to get out of this crisis we created now. but i think the real story with everything is behind the scenes. i talk a little bit about that in my new book, white house warriors, the behind the scenes fight. john bolton and others on the nsc staff are working with pentagon, not only trying to develop intelligence what iran is trying to do and options that can be done. there is big behind the scenes battle, giving president options for his tweets and policy in the middle east. stuart: military generally is not saying to the president, go get 'em? >> options that have been sort of leaked out right now suggest, one, it's a huge troop number

which is over 100,000 just to start the conversation. so that is suggestive there is a lot of hesitance there but also suggestive they know how big of a fight this would be and the question for the military is always, one, is the public behind it, and two, how long will the president behind it? stuart: containment seems a much better option because their economy is collapsing. i don't think they have that much money to fund terror around the rest of the middle east or support hamas or hezbollah? >> definitely there is tools, whether sanctions or other things that can limit iran's provocative behavior but i think the biggest change in the region the past five years has been collapse and end of the iran deal which was in fact trying to keep iran tied down and to a degree limitations or penalties. stuart: they threatened to increase the amount of uranium they are enriching, that is the threat on the table for this morning. >> that is for sure. some intelligence is coming out

suggesting that but what iran is saying you made a change on the iran deal, united states made the change on the iran deal. iran just as anybody else is trying to understand what is behind the scenes in washington. stuart: are we misreading each other? >> there definitely a risk of that especially with the players involved. there is personal feelings with iran whether around the white house or washington and iran has a lot of baggage with us as well. there is effort when there is reaction and counterreaction there is a risk of miscalculation or misinterpretation of simple things. stuart: got it. john, thank you for joining us. >> thank you. stuart: tell you what we've got coming up, a guy who says facebook and google are making a play for retail. that's new. are they a real threat to the bricks and mortar people? we'll certainly find out, after this. ♪

at comcast, we didn't build the nation's largest gig-speed network just to make businesses run faster. we built it to help them go beyond. because beyond risk... welcome to the neighborhood, guys. there is reward. ♪ ♪ beyond work and life... who else could he be? there is the moment. beyond technology... there is human ingenuity. ♪ ♪ every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. take your business beyond.

stuart: we're up 144 points this morning. that is a half percentage point gain. for those listening on the radio , 25,835 is where we are. i saw this headline in the "wall street journal." it is a new study. as millenials get older they are in worse financial shape than the generation before them? are they in the worst generation in recent memory. susan: worst generation than ever living generation before. 70 million of them are entering their 30s. they were born between 1981, and

1996. they are spencing less wealth, less property, lower marriage rates and less children. studies by multiple universities average net worth basis, millenials, 92,000 in 2016. compare that to 40% less than gen-x at same time. 20% less than baby boomers in 1989. wages lower as well for men and women. millenials earn 18% less than gen-xers, less than baby boomers at the same time adjusted for inflation, age, socioeconomic variables as well. stuart: i didn't know that. ashley: they are suffering. we make fun of them. stuart: maybe we should stop that. be nice to millenials. we'll be nice to you, susan. susan: let's try. stuart: now an 8-year-old girl impersonates congresswoman alexandria ocasio-cortez. she has made a big slash online. watch this. >> i can't wait to my plan after

the election the most important documentary on climate change. it is called, ice age 2, the melt down. that's not me saying it. that is science. my "green new deal" costs like, $93 trillion. do you know how much that is? me neither because it is totally worth it as sea levels keep rising we won't be able to go to hawaii anymore. stuart: let's bring in the real mini aoc, ava martinez joins us now. first of all, how did you get started in this? >> well, my dad and my uncle started to, like, they thought that i looked like her. so they started making, so they said that i should start making videos teasing her. stuart: do you think that you like her? i mean, you are a kind of teasing her there, do you like her, from what you know about

her? >> yes. not that much. stuart: okay. you appear on youtube a lot i think, and online? is that what you do? >> yeah. stuart: how often do you come up with a fresh video? >> i understand. stuart: can you give us now another impersonation of aoc? just do it now, can you do that? >> yes. stuart: go ahead. >> did you know that -- stuart: i'm sorry? go ahead. give us a bit more? >> a little bit more what? stuart: okay. a bit more aoc? can you do that? >> yes. but not james comey. ashley: [laughter] stuart: can you do me? >> huh? stuart: can you do me, start

varney, can you do a british accept? go ahead. >> um, i live in england. stuart: that's good. that's good. that's very good. last one, what do you your friends say about this? >> well, most of my friends recognize me from anything so they don't say anything. stuart: ava, i hope you're making some money out of this, because if you're making a big slash on the internet it should be well-paid. >> yeah. stuart: you are? now you come to life. you are making a lot of money, are you? >> no. haven't made one dollar yet. stuart: you better talk to your dad and uncle on this. ava martinez, mini aoc, thanks for joining us this morning. thank you. >> you're welcome. susan: [laughter] stuart: what you're looking at now, is the set of espn. they have decided they are going to stick with sports.

the president of espn says fans don't want anymore politics. they're done with that. brian kilmeade will discuss next

one-millionth order. millionth order. ♪ there goes our first big order. ♪ 44, 45, 46... how many of these did they order? ooh, that's hot. ♪ you know, we could sell these. nah. ♪ we don't bake. ♪ opportunity. what we deliver by delivering.

♪ stuart: they don't go for the pop stuff. don't go for later stuff, like the white album. they are gems in there. susan: they want fan favorites as well? twist and shout one day. that is my request. stuart: susan, ask and you shall find, or receive, something like

that. we showed you the videotape of the man that threw a milkshake at nigel farage. ashley: there he is. walking across the street in new castle. campaigning for the brexit party, got milkshaked. vanilla shake all over him. the person responsible charged with common assault, and you know, farage says look in the wake of all of this, those people that want to remain in the european union, have become quote radicalized. stuart: interesting. i think the man should serve prison time. ashley: i doubt very much he will. stuart: nobody knows what you're throwing. ashley: could be acid. stuart: anything. that puts fear of god into you. you shouldn't be doing that. put them in the clink as we used to say. from capitol hill. jared nadler read from the mueller report. conversations between don mcgahn

said conversations constituted a crime. what does that mean? >> he went further said conversations between mcgahn and sessions constituted a crime. as don mcgahn testified before the special counsel to fire the special counsel robert mueller where mcgahn obviously did not follow through with that. he read sessions's testimony where sessions told the special counsel that president asked him to limit the scope of the future to future elections of the mueller report. jerry nadler says nothing will stop him he says. he will hold the president accountable. listen. >> i believe that each of these incidents documented in detail in the mueller report constitutes a crime. but for the department of justice's policy of refusing to indict any sitting president, i believe the president would have been indicted and charged with these crimes. reporter: as rebuttal the republican ranking member of

that, representative doug collins from georgia came back and said, what nadler did not read was the rest of the report, the conclusion which found no collusion. also found there was not enough to charge the president with a crime related to this. doug collins got very heated in his response to this saying that they want to hear from don mcgahn and make a show of it but there is no subpoena for special counsel robert mueller. he says they want to hear the facts about this but don't want to talk to the author that actually wrote it. stuart: thanks very much indeed, mr. lawrence. appreciate that. see you later. news on retail today. most retail stocks are down. look at this one, that company, i don't know how to pronounce it, parent of dressbarn. dressbarn, dressbarn is closing nearly 650 of its stores. i think just about all of them actually. michael is with us, tomkins international vice president and digital retail sales.

now, that seems to be a huge closure of a bricks and mortar operation but you say that there is nothing wrong with retail? that they're doing quite well. make your case. >> the headline for the last year has been we're in a retail apocalypse and i say there is nothing that could be further from the truth. in fact this is an era of retail renaissance. there are more ways to buy more things in more places through more technology than ever before. stuart: bricks and mortar people are suffering, aren't they? >> that is the problem, people, people confuse the terms retail and store to mean the same thing. retail is the entirety of making, moving, selling products. there is a problem in the bricks and mortar world. what is happening now smart retailers are integrating online, off-line logistics technology for a new retail. stuart: i take your point but there is a large number of stores are empty. there are ghost malls all over the place and that is a problem for bricks and mortar. i want to get back in just a

moment. i have to break away to do something else. stay there, michael. don't move, please. i want to join on the radio brian kilmeade. he joins us every tuesday morning around this time and he is with us now. brian, last hour we had joe namath on the show talking about the low moment of his life. take a listen to this for a inm roll tape. >> i found an excuse to go back to drinking and i continued drinking until i made a mistake and made a young lady feel awful, suzy kolber on television. i didn't know that. alcoholics a anonymous came after the facility i checked in, went through the process there. stuart: brian, i think he is a great guy. that is success story, come back from a life of heavy drinking to come back successfully. i think he is a great guy. >> 50 years since he won his first super bowl, stuart. you were probably in new zealand anchoring a sports show, i'm not

sure. stuart: no. >> 50 years since he won the super bowl. he comes back, one thing about him he is always approachable. the same questions come to him every time in and around him, same questions all the time. this is where i was when i won the super bowl. what will it take for the jets to win. he takes every question like it is brand new. i visited joe namath, one of my first big interviews after college was joe namath at his camp. he ran a camp in connecticut for kids. you would think everyone of those kids were basically related to him. he cared about the fast kid, the heavy kid, the tall kid, the short kid. he taught those kids football, life, and speeches i could not have been more impressed. now he writes a book where he holds himself to the fire. this is no unauthorized biography. you usually don't get that much. stuart: i have 30 seconds for this, i want you to address it, espn getting out of the political business. i think that is a smart move. what say you? >> but if kaepernick takes a knee, they will be talking about

it, but they're telling their men and women i don't want to hear your opinion. the problem you have some opinion shows. you will take that out of the content? you can lessen it to a degree but to tell anchors not to have an opinion, when you got a lot of time to fill and a lot of it is unscripted, that is tough road to hoe but here's the thing, a lot of people i know say they don't want to hear it. they got turned off by it. i think jimmy who took over absolutely wants to make sure people watch their channel for sports only because they are shedding viewers like no other network. they're still enormously successful but they are really getting concerned that people are getting turned off, people can get a lot of tough without espn on the iphones. they don't need to watch "sportscenter" again. stuart: i don't want politics in my sports. i want to see who won, how they played the game. simple as that. brian, we're out of time. see you fenn soon. >> go get 'em, stuart varney. stuart: i want to bring back

michael sue. ekor, our retail guy this hour i should say. you say facebook and google are making a play in retail. first i heard of this. >> they have to. google is starting to see its main business, advertising revenue, shrink, it is not a coins den that advertising revenue is now going to amazon. so google understands the future of retail, the future of their business is a combination of commerce, logistics consumers and. stuart: if you say they're going into retail, what does that mean? they're selling stuff? >> google shop is up and running. they're continue to invest in google shop. they have created a partnership with china's jd.com to bring retail through google in america. they just can't rely on news revenue and ad revenue forever. amazon is getting into their business. they need to get back to it. stuart: but they will compete with amazon, the amazon of this world, can they do that

successfully? >> i think through the right partnerships, the right alliances they can. google is partnering with walmart, jd from china, facebook is now in a buying spree, and investing spree to up their game in retail. their not going to be able to do it on their own but they have to compete against amazon because amazon is now in their business. stuart: this is big tech spreading its wings again into a whole new area, google, facebook, retail? >> absolutely and it is big tech not just there but technology to be in every part of our lives from shopping to the way we schedule our appointments, eating, drinking, socializing. stuart: to what i read, what i think, my politics. >> we and we call that the attention economy, right? so they're all trying to grab every part of our attention and shopping is a big piece of that. stuart: called big brother to some. my way of thinking. >> that is a concern. stuart: it sure is to me. michael, thank you for joining

us. appreciate it. thank you, sir. there is a company called dji. it's a chinese company. they are the top consumer drone maker in the whole world. our government says they could be stealing data from americans through the drone. the drone warrior will be coming up on that. apple's chief tim cook speaking at tulane's graduation ceremony. he told his students, his generation fail them, the students when it comes to climate change. what will governor mike huckabee say about that? he is on the show after this break. ♪ i'm working to make each day a little sweeter.

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industrials. apple's chief, tim cook, he was this year's commencement speaker at tulane university's graduation ceremony. listen what he told the graduates. roll tape. >> in some important ways my generation has failed you in this regard. and you don't need to look far to find an example of that failure. here today in this very place, in an arena where thousands once found desperate shelter from a 100-year disaster, the kind that seem to be happening more and more frequently, i don't think we can talk about who we are as people and what we owe to one another without talking about climate change. stuart: ah, we failed the people on climate change. governor huckabee is with us. okay, governor, did our generation, putting you and i in the same boat as tim cook, baby

boomers, did we fail youngsters on climate change? >> stuart, i remember in college, we were told if we didn't do something within the next 10 years this, was the early '70s we would be turned into human popsicles because global cooling was going to destroy the earth. look, i think there is climate change. there has always been climate change. i don't know anybody that denies us, when he talks about new orleans he was, new orleans was a city built below sea level and protected by a series of dams and dikes. when katrina hit, those broke. it wasn't so much climate change that destroyed that city. it was the natural disaster going up against things that man had built that weren't built strong enough to deal with a cat-5 hurricane named katrina. i'm well aware of it, i was in a neighboring state. we took in 75,000 evacuees, i'm well aware. i don't remember a specific issue of climate change as much

as it was the dikes and dams failed when the water got so high. stuart: seems to me, governor, around the world, australia is the latest example of this, voters are not prepared to sacrifice in the name of climate change if it means hurting their economy. climate change people and politicians are rejected at the polls. it is true there. it is true here. i think to some see agree it was true in europe. i just don't think the voters are in tune with this thinking, what say you? >> well i think we all care about the environment. at least i do. i'm a conservationist but here's the other side of that, the very people who say that we have to change everything also believe in adaptation. they believe in evolution. they believe there is an ongoing process of nature and that nature is ever-adapting. i want to know, tell me which one it is? is nature adapting or fixed and we're just all sunk? can't be both. that is one of the illogical,

irrational sort of messages that come out of left these days. stuart: find it unusual the head of one of the most valuable corporations in the world should take such a dramatic, political stance which could alienate some of its customerses. last word to you. >> i don't think he cares so much about alienated his customers. we buy his products not necessarily his politics as i often said, but one thing about tim cook, if he is really interested in saving the next generation, worry about things like privacy. worry about big tech companies that trample over the voices of people who disagree with the political left and who essentially leave us with only one choice in the vending machine, that is not the kind of freedom that he ought to be advocating. he advocate for marketplace of ideas where lots of ideas, including ones he doesn't agree with are welcome as well. stuart: governor we're in the same generation and i agree with you 100%.

>> you're a smart guy. that is why you agree with me. never forget that. stuart: never get carried away there, governor. thanks for being here. appreciate it. thank you. >> thank you. stuart: here is what is coming up a handful of american companies chosen to submit designs for a lunar lander vehicle. the top design goes to the moon. we'll talk with one of the companies in the negligence hour. >> tired of taking forever to make the morning coffee. in san francisco they have got an answer. they have a robot. we'll introduce you to gordon the robot barista. they say it make as perfect latte in 10 seconds, until the machine breaks down. more "varney" after this ♪ you wouldn't accept an incomplete job

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stuart: rabbi spiro is the spokesman for the national conference of jewish affairs. he held a rally in times square yesterday. he is pushing speaker pelosi to remove congresswoman omar from the foreign affairs committee of the house. joining us jeff ballabon.

jeff, i think it is important because right in the middle of times square in new york city there was an attempt to remove omar, ilhan omar from this committee, to do it right in the middle of new york city is important i think. >> well it is important partially because outside of israel, new york is the home to more jews than anyone, anywhere in the world and the fact is is that, the primary reasons to remove her not that she is a leftist or she has an opinion about the maduro regime because she violates the norms of society or, she is normalizing society growth desk anti-semitism, it is outrageous, remains. there every day, every moment that she remains on the foreign affairs committee is really an offense against our society. allowing mainstreaming of the worst kind of anti-semitism. stuart: also the jewish vote if i can put it like that. most jewish folks in america vote democrat.

here you have a democrat house, someone who opposes the state of israel on the foreign affairs committee. that is an important development. there is a split between jewish voters and the democrat party. am i right? >> by and large most jewish voters for whom israel is major issue have drifted over to the republican part over time. there are some left. i think we'll see those begin to break away, not just because of ilhan omar, even though the fact donald trump moved the embassy in jerusalem, something all parties, all politicians loved, all of sudden they hate or won't support it. this issue about anti-semitism is really a breaking point. what is happening is, some of the groups are justifying, excuse it. a lot of base is saying no, no. leadership groups have their own, you're part of the swamp, built-in mechanisms for wanting to say popular in washington but the base knows anti-semitism when it sees it. the base is deeply offended by the fact that the democratic party won't take her off foreign

affairs. couldn't bring themselves to condemn her gross anti-semitism. stuart: you're orthodox. >> yes. stuart: you wear a yamulke in public. >> yes. stuart: all the time. >> yes. stuart: what is the reaction in new york streets? >> you think in new york streets they would be used to it but perhaps in some areas they are. makes awe target for better or worse. i didn't think too much about it publicly recently, i was asked about this, somebody came over to me, thanked me for yamulke. devout christian from different part of the country. it gives me strength and courage, gives me strength and encouragement of my own convictions. i know you're willing to make yourself a target. the flipside you cannot go through a week walking through the city streets, going into the subway, going through penn station without somebody coming over and at the least cursing you out, at the worst, being physically violent. stuart: that's awful. jeff, thanks very much for wearing that with us. we appreciate it.

come back soon. >> anytime, stuart. stuart: thank you, sir. new "gallup poll," 43% say they think socialism is a good thing. not sure the number tells the whole story. make no mistake, i will talk about two minutes from now.

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stuart: all right. how would you answer the following question. is socialism a good thing or a bad thing? well, viewers of this program know exactly where i'm coming from. i think it is a bad thing. well, gallup asked that question and 43% said socialism was a good thing. now, it may be the poll got it wrong because some people are unwilling to admit publicly yes, i'm a capitalist. in 2016 the polls were wrong on candidate trump for the same reason. maybe gallup is overestimating socialism's popularity because of the way the poll is done. but to me, look, any acceptance of socialism is a problem,

annotate and at a time of renewed prosperity i find it difficult to understand. dig a little deeper into the gallup poll and look at this, 43% want government control of health care. 66% want government control of environmental protection. that's not exactly heavy-handed government. it's not a huge demand for heavy government. it's rather lightweight, actually. if it's just a minority favoring government health care, that's not so bad. how about government control of your money and your job, real socialism. is that popular? no. look at this. also from the gallup poll. only 19% want government control of technological innovation. that's a big get your hands off. 28% want the distribution of wealth. whoa. so seizing your wealth is not so popular after all. and 33% want government control of the whole economy. again, that's not a rousing endorsement of socialism.

when you get right down to it, a large majority wants to keep the current free market system. maybe we could calm down a little. most of the democrat candidates want hardcore government control of your money and your job, but the gallup poll shows that's not really that popular. when push comes to shove, that is the election of 2020, we may well find that capitalist prosperity beats lukewarm european style socialism. after all, capitalism had delivered a dynamic growing economy with rising wages and full employment. europe, meanwhile, has been turned into a museum of failed socialist dreams. stephen moore on this as the third hour of "varney & company" continues. let's bring in stephen moore, heritage foundation

distinguished visiting fellow. welcome back to the show. it's good to see a man like you. >> hi, stuart. stuart: am i right here, socialism appears to be popular in that poll but when you dig into it, real socialism is not that popular. >> well, there's a lot of data in that poll. by the way, what was the number that people who want the government to control the economy, i think you said -- stuart: 33%. >> so that -- stuart: that's a big number. >> even that's disturbing to me. one out of three americans want the government to control our economy? now, then the question is why is there this kind of infatuation with socialism. i was friends with milt friedman up until the day he died. i remember he used to say to me steve, the most important lesson of the 20th century, and i think he was right about this, is free market capitalism is generally success and socialism, communism, these other isms are a failure. he used to lament that for some

reason even though we know that's true, people say they want a little bit more socialism. i think that's what's coming through in this poll. i would say the thing that disturbs me the most about this, stuart, is it is an incredible indictment of our education system in america that we're spending hundreds of thousands of dollars to educate kids from the time they're 4 years old until the time they're 22 years old and they are coming out with these, you know, dim-witted ideas about socialism. if you are a free market conservative like i am and i think you are, we have ourselves to blame. we let the left run the schools. this is what they're teaching the kids. stuart: that is absolutely true. you're right there. now, atlanta's fed president says he doesn't expect a rate cut this year. what do you think? you think we should cut rates this year? if so, why? >> i do. i think we should cut by a quarter percentage point which would reverse the catastrophically bad rate increase that happened in

december. remember, i think it was on this show when the fed raised those rates, i said it's crazy, this is an act of economic malpractice. remember in early january the fed had to reverse course and say we're not going to raise rates throughout 2019. now, that was a start but i would reverse the thing. i want to tie this, by the way, if i may, because i'm writing a column on this right now so i'm going to give you a sneak preview of this, look at what's happened to commodity prices, especially agriculture prices, over the last year. they have fallen, i just looked at the numbers, they have fallen by an average of almost 10%. now, think about the problems that farmers are facing, everything, oh, it's because of the china trade situation our farmers are struggling and it's no question the trade war and the fact that the chinese are going to buy less of our soybeans and wheat and cotton, that does hurt our farmers, but i would make the case to you and i want your reaction to this, the big villain here has been the fed. they are too tight. they are causing a deflation especially in commodity prices that's killing our farmers, and

if the fed were to raise rates, put some more money liquidity in the economy, our farmers would be doing a lot better. i say the fed is the bigger villain than the chinese trade war. stuart: i'm not going to get into a fight with you. it wouldn't be a fight, it would be a one-sided discussion because you know a lot more about this than i do and that's a fact. but i do want to ask a bit more about trade. if this trade fight drags on for a long time, i'm talking months and months, do you think the business will continue to give political support to the president? >> you mean the business groups? stuart: business community. >> well, i don't see them giving him support right now. what groups, what business groups are supporting trump on this? by the way, i'm kind of agnostic on this. i think trump is fighting a good fight. the chinese behavior is outrageous, their trade practices are outrageous. trump is exactly right to call them out on this. i'm not so sure the tariff is necessarily the right way to do

it. but yeah, you make a good point. if this continues to roll on and i think i said on your show a week or two ago, i expect that before the end of this year i think there's a high likelihood there will be a deal. i don't think it's going to be a great deal. i think china will make some minor concessions. but once that happens, i think the economy goes back on its merry way and we've got a strong 2020. if that doesn't happen, though, if this trade fight continues to go on, past the end of this year, i think it could depress the economic growth by half a percentage point or so. that's a lot. that's a big number. stuart: i can't resist going back to the fed for just one shining moment. i know you will set me straight on this. if the fed did cut rates now, you'd think we would get 4% growth in the third or fourth quarters of this year? >> well, the trade war's a problem. i think there's two problems right now in terms of the economy. if the fed were to lower rates and just get rid of this idea they are going to raise rates, i

think that would be a very positive thing. second of all, if we solve the trade crisis and we get some kind of deal with china, then yeah, go back to the summer of 2018, before the fed started raising rates and before we had this trade war. we did get to 3.5% to 4% growth. remember that, stuart? and there was no inflation. that's my complaint about the fed. why were they raising rates when there was no hint of inflation? they said we had to normalize interest rates. i don't even know what that means. i have no idea what they're talking about, raising rates to normalize interest rates. we are in a whole new environment right now but yes, the answer is -- remember, you can look it up on iyour tape. remember three years ago i said 4% growth for five years if we get these policies in place and i'm sticking to it. stuart: good man. stephen moore, don't be such a stranger. come see us again real soon, okay? >> okay, stuart. stuart: see you soon. thanks. i want to share this with our viewers. on your screens, that's a very big number.

263.3 billion. that's how much was paid out by companies worldwide in dividends in one year. so in one year, how much of that did you get? not that much. just shows you, dividend payments up 7.8% from the previous year. that's a ton of money. ashley: it is. stuart: how about apple stock, took a hit yesterday on concerns that china could target the iphone in retaliation for us cracking down on huawei. we have given huawei a little breathing space, 90 days delay, and that means apple has gone up this morning, up 2.5%. $187 on apple right now. google is putting a hold on its suspension of android services to huawei. this will allow google to provide software updates, security patches to existing models for the next 90 days. google's stock is up eight bucks. whole foods joining the club. it will replace plastic straws with paper ones.

that does not affect the stock price of its corporate owner, amazon. the feds are out with a new warning about chinese-made drones. they may be stealing your data. drone expert breaks it down for us this hour. california's governor newsom has proposed $98 million a year that would give government-funded health care to illegal immigrants. we are talking to california resident steve hilton about that one. we are also going to ask steve about his interview with the president, where he said he will not let iran have nuclear weapons. we are on to that one. staying on iran, secretary of state pompeo and other top officials will be on capitol hill today to talk iran. florida senator rick scott is going to be in that meeting and he's with us, next. this is the third hour of "varney." -driverless cars... -all ground personnel...

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stuart: china, by the way, is taking back its two giant pandas from the san diego zoo. is this because of the trade dispute? susan: it is because of heightened tensions, yes. i think we can call it the trade dispute. china scrapping its conservation loan agreement with the u.s. so taking back white cloud and little present, those are the pandas' names. this is a highly endangered species and it's really been this diplomatic symbol china normally offers other countries. since the '40s it has either granted or gifted pandas to 14 different countries. this is really how sometimes in diplomacy terms, diplomatic terms, china relates to other countries. the fact they have essentially taken these back shows that china is angry with the u.s. i guess we should not be surprised. people who enjoy going to the san diego zoo to see them will be disappointed. stuart: panda non-diplomacy.

all right. let me show you this. it's happening right now in london. prime minister theresa may sharing details on her i think it's a new brexit plan. another tweaked plan. we will bring you any news out of what she's got to say as soon as she said it, if it's newsworthy. congress will be briefed by top officials of the administration on iran and it's happening this afternoon. joining us is florida senator rick scott. senator scott will be in that meeting today. now, you have always favored, mr. senator, a tough stance on iran but you don't want to go to war with them, do you? >> oh, absolutely not. our military should never be the first option. by the way, those poor panda bears when they go back to china, will not have as good a lifestyle. they will have -- i have been to china zoos before. it's nothing like the san diego zoo. going back to iran, we will have a briefing this afternoon. i look forward to hearing that.

i read the intelligence report. let's remember iran is not our friend. they are like the bully in your neighborhood when you are growing up. they are just causing problems. they are like the thugs causing problems. they want to get rid of israel. we have got to stand up to them. i'm glad the president is doing that. stuart: the policy which, i mean, has been talked about, is containment. block them in so they can't mess around in the rest of the mideast if they are kept in their little box. containment. that's the best policy, isn't it? >> let's remember they are not staying in their own box. they are in venezuela. you have seen the pictures of the children dying in venezuela. maduro is starving the citizens to death. iran has helped them along with china and russia and cuba and hezbollah. so we have got to do everything we can to make sure that iran does not get nuclear weapons, iran have to struggle with their economy so they cannot take their profits and their assets and do more bad things.

they have already done enough bad. so i look forward to the briefing. i'm glad the president is standing up to iran. we have got to stand for freedom and democracy in this world. stuart: i think the last time you were on the program you called for a naval blockade of venezuela. did that happen? >> it's not happened yet but we need to do it. every day, children are dying in venezuela. every day. i have been to the border. i just got back from colombia last week. again, it's pure genocide and it's being supported by all the bad actors, russia, china, iran. cuba is the biggest bad actor down there. the only reason they are there is they want access to the venezuelan oil. they don't care about the people of venezuela. they have no concern about them. they are the ones that are defending maduro right now. we have got to blockade the ports in cuba so they do not have any access to venezuelan oil. we've got to force cuba to act responsibly. we've got to, i mean, this is what president trump is doing. he needs to do this. he needs to -- we've got to make

sure there's world order where we promote democracy and freedom. stuart: maybe that can come up in the meeting this afternoon. blockade of venezuela. okay. mr. senator, as always, thank you very much for joining us, sir. see you again soon. >> thanks, stuart. stuart: yes, sir. by the way, gas stations in venezuela are seeing mile-long lines with drivers waiting up to 24 hours to get a fillup, if they can get it. sanctions from the u.s. begin to take effect on the country and that is the effect. mile-long lines for gasoline. you better take a look at general motors. they are shrinking the size of their car sharing operation. it's called maven. they are withdrawing it from several cities. uber, the established car sharing organization, that stock is at $41 a share this morning. and lyft which went public at $72 is at $54 this morning. uber was $45, it's now $41. lyft was $72, now it's $54. general motors withdrawing from

ride sharing to some degree. tesla, ouch. down at $201 a share. we should tell you that jpmorgan announced today that the worst case for tesla will be the stock falling to $10 a share. that's worst case? that's what they're saying. now this. a handful of american companies have been chosen to submit designs for lunar lander vehicle. the top design gets a contract to go to the moon. we will talk to one of those companies submitting bids. i want to know, how different is a lunar lander today from the one that landed in 1969? we'll find out. a robot makes a perfect [ inaudible ] in less than ten seconds. the robot is at cafe x in san francisco. robert gray is there next.

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who else could he be? there is the moment. beyond technology... there is human ingenuity. ♪ ♪ every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. take your business beyond. it's a revolution in sleep. the sleep number 360 smart bed is on sale now during our memorial day sale. it senses your movement, and automatically adjusts to keep you both comfortable. it even helps with this. so you wake up ready to hit the ground running. only at a sleep number store. during the memorial day sale, save $1000 on the new queen sleep number 360 special edition smart bed, now only $1,799. only for a limited time. sleep number. proven, quality sleep. stuart: we have been teasing this all morning. the robot barista that makes a latte in ten seconds flat. here is robert gray in san

francisco. all right. i want a cafe americano. can it do it now? reporter: absolutely. we just placed your order with gordon, the nation's first robot barista. it's all about efficiency here. basically, the founder was standing in the singapore airport waiting forever to get his coffee made with human baristas, then got the wrong order. he set out with a business plan to make a robot who could not only do it efficiently but could get the order right every time. it is about efficiency of time but also of space. it takes a little time, you punch in the order on a keypad, use an app to order ahead as you might do at some of the other coffee places, and once he sets about getting to work, you can see he turns it around in short order. basically the company looking to put these in underserved areas, thinking hospitals. they are opening one in san francisco international airport in the terminal there. we will have the coffee coming up in just a second. stuart: well, that wasn't very

fast. what is that thing doing? looks like it's kind of doing a dance of some sort. reporter: he's tidying up. he will do a little jazz hands dance. here's your americano, by the way, served up. i will punch it right up and it will pull it for me. stuart: okay. okay. i'm watching. okay. reporter: i think if you go for obviously different drinks take a little bit different time. oh, and you also probably want to know about the pricing. the margins are a little bit wider, i would imagine, with no human. it costs a buck or two less than some of the other drink places. stuart: now you're talking. all right, sip up. i will be back for a fillup at some point. thank you very much indeed. and to you gordon, the robot. the feds are out with a warning about chinese-made drones. they may be selling them here and then stealing your data. drone expert brett belicovic breaks it down.

we are up 139 points. more "varney" after this. don't tell your mother. dad, it's fine. we have allstate. and with claimrateguard they won't raise your rates just because of a claim. that's why you're my favorite... i know. are you in good hands?

stuart: we are up 137 points for the dow industrials. that puts the dow at 25,800. big retailers reporting today. among them, home depot, kohl's, tjx, jc penney. let's get a wrapup of how they're doing with jackie deangelis. the stocks are all down. >> they are not doing that well. the earnings have not been great. let's start with jc penney. it missed on the top and bottom line so the loss was larger than expected. it also said same store sales were down 5.5%. the ceo saying tariffs imposed on chinese imports so far haven't really impacted the company but if president trump punches back and adds that 25% on the additional $300 billion, well, we could see a more meaningful impact. kohl's earnings also missed, lowered its full year profit outlook. same store sales also missed. ceo said well, we started off slower than we'd like this year. stuart: kohl's down 10%. >> yeah. in sympathy, nordstrom and macy's as well. the department stores are taking

it all today, because it's this constant battle, brick and mortar versus online. you want that convenience, you want the discounts, consumers are flocking. they can change their model, they can make the displays flashier, get better real estate, it may not change anything. stuart: in a booming economy i would have thought retail would be doing better, whether bricks and mortar or online. >> you would think so. things are going well, consumers sentiment is high but retail is always sort of that barometer, right. we saw the january retail sales number, it was backward looking but it was a big, steep decline for last year, at the end of the year. that's because people were feeling uncertain. the government was shut down. we watch these numbers, they look like they're stabilizing but every time there's a rift with china, people get a little nervous. stuart: they certainly do. almost always retail stocks are down today. i don't think i have seen a single winner. kohl's, which has been doing most to attract new business, is down the most.

>> yeah. i will tack on one more point. the owner operator of dress barn is shutting down 650 stores. they are trying to focus on the more profitable brands. one more stat. the closures last year were 5,864. so far the announcements this year, 7,000. we are only in may. stuart: stores in general, 7,000? >> brick and mortar retail stores as of right now. stuart: closing this calendar year. >> yes. stuart: ouch. i always thought dress barn was a rotten name for a company that's selling dresses. >> you make a point. it would not really make me feel great to be buying a dress at a barn and thinking of cows and other things. stuart: dress barn. okay. jackie, thank you very much indeed. missouri republican senator josh hawley proposed a bill that would allow people to block tech companies from tracking their location. deirdre, i thought you could already do that.

deirdre: yes. however, in march, congressional testimony showed us, for example, google still uses your location even if you have already turned it off. google is not alone but google has so much data. we are often pretty tough on facebook but google has something like 2,000 hours of music versus facebook's 500. i'm just using that as a unit. google has a lot of information about you, about me, so senator hawley is saying instead of having a do not call list which we are all used to for phones, this is a do not track list. he's saying even when you have turned off your location, that that has to first of all be respected, then second of all, google cannot transfer any of your data even if it doesn't have your name or significant details, to any other company. those are the two changes he's hoping to make. stuart: just pecking around the edges. my theory is do not call doesn't work. i'm getting bombarded with calls. deirdre: right. well, it hasn't so far. that's why senator hawley is

trying to give it some teeth. stuart: i understand it. just you are pecking at the edges because you have lost your privacy. it really has gone. deirdre: we traded it for convenience. stuart: we did. ashley: exactly right. stuart: thank you, deirdre. fox business confirms that the department of homeland security has quote, strong concerns that chinese-made drones are stealing data. joining us, brett velicovich from white fox defense, author of "drone warrior." so this is the largest drone company in the world. they sell drones in the united states and there is concern that those drones are picking up my information almost like spy vehicles. is that what's going on? >> well, they didn't specifically name a company in this case, but basically, based on the company dji's share of the drone market, we can safely assume they're looking at them more specifically. i think in general, any chinese tech firm that holds a

significant share in our u.s. technology sector should definitely be looked at more closely and in the consumer commercial drone sector, the chinese completely dominate our technology there. 90% of the drones that were sold in the last year were sold by chinese manufacturers. 80% of those were sold by this company called dji which is a multi billion dollar drone manufacturer from china. for awhile now, the u.s. government has suspected them of basically giving access to the chinese government for things like the photographs that come from the drones, the flight path, even down to the companies that are actually using them, and that's dangerous for organizations now that are widely using these drones to protect critical infrastructure and even some of the government clients. with the millions of drones now starting to enter the market, we can see why there's definitely a cause here for concern. stuart: i don't see what we can do about it. if they are the major drone seller in the united states and they've all got these cameras and sensors all over the place, i don't see how you stop that

information from getting out to other people. and other countries. >> well, it's tough but i'll tell you that more than likely, even the consumer sentiment around these privacy concerns is not going to be enough for people to stop buying them. the fact is, it is too valuable a technology. i use it when i'm flying drones, my company uses it, many corporations use these chinese drones. yes, we would love to use american drones 100% if there was something that was even close to it but the fact is that they are light years ahead of us with their technology and it is just too valuable to these organizations. so i think the only thing that we could potentially do about it is maybe have the u.s. government empower organizations that actually have the cash to put out an american-made product like amazon, like boeing that's already making military defense technology drones and maybe have them start looking at something that's valuable to the consumer but right now, it's tough to do something about it and we are just going to see millions and millions of more drones enter the market. stuart: are we just getting

overly excited about this? you know, look, i don't have a drone. i can't imagine having a drone. if i did have a drone, i'm not so sure i would be that worried about china taking pictures of my property. you know what i mean? are we overly concerned a little? >> you make a good point. i don't think necessarily they would want photos of you out there in your farm in upstate new york. but i think that the real concern is more for ctical infrastructure and things like that. i do believe the paranoia is a bit overblown. anything nowadays that has technology in it, okay, your air conditioning and your phones and your computers, everything has the ability to be hacked. that doesn't mean people are going to do it. that doesn't mean the chinese government's going to do it. i think the u.s. government is more concerned not necessarily about the companies themselves, they're not necessarily worried about dji itself but they are more worried about the chinese government being able to force them to share that data. so you know, i do think it is a bit overblown but just the fact

that, you know, all these americans are using this technology is something that people are kind of, you know, raising their eyebrows saying what if somebody flips that switch and what if somebody does take a photograph of a military installation or naval ship or something where somebody might just be flying drones not for nefarious purposes but that data is being shared. i will tell you just quickly, end on this, i did speak with representatives recently last night, actually, about this and they are very adamant that, you know, they don't want to take data. they actually put in protocols, software protocols inside the drones that make it so their data can't be shared. they are internally doing the best they can to make sure that doesn't happen but that doesn't still take away from the fact that the chinese government, you know, they can access some pretty phenomenal stuff. i saw it even in the u.s. intelligence community so there's just this concern it can be turned for nefarious purposes in the future. stuart: there is always concern.

brett, thank you very much for joining us. appreciate it as always. thank you. all right. take a look at disney. this is a story which really does not affect the stock price. i don't think it does. but it's really fascinating. disney's espn division is saying no to politics. here's the quote from espn's president. here it is. without question, our data tells us our fans do not want us to cover politics. my job is to provide clarity. i really believe that some of our talent was confused on what was expected of them. if you fast forward to today, i don't believe they are confused. there was a lot of trouble about this when some of the anchors on espn became very anti-trump and very political. they don't like it. no more. california's governor gavin newsom proposed $90 million a year that would give government' funded health care to illegal immigrants. steve hilton, legal immigrant

and california resident, will be on our show next. of course, we will ask steve about his interview with president trump, where he said he will not let iran have nuclear weapons. >> you do have situations like iran. you can't let them have nuclear weapons. can't see what it is yet.re? what is that? that's a blazer? that's a chevy blazer? aww, this is dope. this thing is beautiful. i love the lights. oh man, it's got a mean face on it. it looks like a piece of candy.

look at the interior. this is nice. this is my sexy mom car. i would feel like a cool dad. it's just really chic. i love this thing. it's gorgeous. i would pull up in this in a heartbeat. i want one of these. that is sharp. the all-new chevy blazer. speaks for itself. i don't know who they got to design this but give them a cookie and a star.

stuart:hamptons, on new york's long island, home prices quote, in a rut because of the new tax law, i guess. tell me more. deirdre: they certainly are. number of homes between this summer and last summer doubling. they are all selling collectively, if you judge by median prices and even rentals,

so going back to sales, properties are staying on the market for a lot longer of a time. median price for sale of a single family home is down around 8%. it's still going to set you back, the median price out there is still about $860,000, but that's lower by 8% than this time last year. stuart: so they can't sell them and the primary reason is salt. deirdre: the tax law capping salt deductions. that's right. it's really a disincentive for people owning. but interestingly enough, even the rental part, not as bad as the sales, but it's not on fire, either. ashley: same problem in connecticut. some of these big mansions aren't selling. if they do, it's empty and you sell them for a huge discount. stuart: our next guest interviewed president trump and here's what the president had to say about iran. roll that tape. >> i just don't want them to have nuclear weapons. i don't want to fight. but we do have situations like

iran. you can't let them have nuclear weapons. you just can't let that happen. stuart: all right. the man who did the interview is steve hilton, host of "the next revolution." i watched it, steve. i got the impression that the president really does not want to go to war with iran. was that your reaction? >> very much so, stuart. i put it to him specifically that he ran on 2016 on a very clear platform of saying no more stupid wars, as he put it. and he said repeatedly i haven't changed. that's still my position. he went on to say that he was surrounded in the white house and in the administration generally by people whose natural inclination is to fight these foreign wars and to have troops overseas. he said he was battling that. it was very clear to me that he sees the main weapon in trying to defeat iran's regime as being economic. that's how he sees this going forward. stuart: it's a policy of containment, really, isn't it. you don't attack, you just contain them with sanctions and

let their economy collapse if that's possible. that's the policy. containment is the policy, is it? >> yeah. i think it's actually very similar to his approach to north korea, actually, where his attitude is let's put maximum pressure on the regime, bring them to the point where they want to negotiate with us from a position of strength on our part. that's what i think he's getting at here. but he definitely doesn't want to get involved in a major military conflict in the middle east. stuart: i'm bringing this story to you because i know you are a california resident and you've got something to say about it. as you know, the governor of california, newsom, is going to put $98 million a year into a government fund for health care for illegals. what does steve hilton think about that? >> well, it just shows what a total mess this whole situation is. let's just get -- this budget item for health care, by the way, is the biggest single thing in california state spending.

one thing to bear in mind, medical, the state medicaid program, the budget for that has doubled in the last decade with absolutely no improvement in people's health care. this is just a sort of pit of money that is becoming a disaster. what you are seeing is the governor saying we are going to give free health care to those illegal immigrants under the age of 26 and the state legislature totally dominated by democrats are saying no, give it to all of them. it's an argument about the age but what you don't see is any kind of principle being implemented which is that you should only get this if you are a citizen. so the age seems to be a completely spurious argument. stuart: california is a sanctuary state to start with. it seems that that is an invitation, come on in, we will take you, we won't let you go, you can stay forever, and we will give you free health care as well. it's just an invitation to make the problem worse. >> exactly. it is a total incentive to

increase illegal immigration. now, i would understand if the governor said, for example, we are going to cover the people who are already here, they are doing work in our communities, we want them to use health care properly, not to have expensive emergency room visits that's a further drain on the state's purse, but we are going to close the border, we are going to stop any further illegal immigration. that at least would make sense as a policy. but they're not doing that. they are saying give out the free health care and come in, anyone who wants it. stuart: what a mess. what a mess it is. steve hilton, we will be watching "the next revolution with steve hilton" on the fox news channel sundays at 9:00 p.m. eastern. thanks for being on "varney." we appreciate it. next, we are talking to one of the companies that's been chosen to submit a design for a lunar lander vehicle. the top design gets a contract to go to the moon. mastin space systems is on the show next to explain why their

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stuart: all right. nasa has chosen 11 companies to compete to develop a lunar lander. the ceo of one of those companies, masten space systems, sean mahoney, joins us now. welcome to the program. good luck in the competition. i want to know some basic details here. am i right in saying that your lander would take off with an astronaut or two init, go to the moon, land, let the astronauts out, they do their thing, then does your lander bring them back to earth? >> excellent question. the actual system is still in the design phase so part of what nasa selected those 11 companies to do is to answer the question of how you would build and operate the descent system and that's the one that the first solicitation was about. masten has the architecture for powered landing, similar sort of thing that you might see in sci fi movies and now some other

rockets. it's powered landing is the main thing we've got to do. there will be another solicitation coming up next month for the human part. stuart: okay. how does the lander that you're designing, i know it's just in the design stage here, but how does it differ from a lander back in 1969 when the moon landing took place? >> excellent question. a lot of people think well, we went to the moon so we should be able to go to the moon now, just use the stuff that you've got. it's not quite that simple. what we do have the benefit, though, is 50 years of technology development in a lot of other areas. so the masten system has already flown. we flew ten years ago and won an x prize for demonstrating the core technology to do a powered landing on the moon, and that was done for fractions of the cost of the lunar program 50 years ago. there are all sorts of new technologies, computer materials, all sorts of things that can be brought together.

we actually have, and i'm not kidding when i say we have flown parts on our terrestrial vehicle we bought at the hardware store. that's the sort of thing you couldn't do 50 years ago. what that means now is when our lander goes to deliver payload to the moon, it will not be the first time that we did a landing. we already have 600 operations under our belt now and we are going to base on that to be iterating to the next version. stuart: if you win the competition, when does your lander land on the moon with astronauts? 2024? >> the target right now set by the space council and the vice president is to have humans at the south pole of the moon in 2024. that is aggressive and there's a lot of work that's happening right now over at nasa to answer the question of how do you accelerate. the good news is, it is absolutely possible. we are -- we said yep, you want to go to the moon and get humans there, we're there. even before the humans go,

you're going to see robotic missions going, so no matter what happens with the human mission, who is selected and which system is used, you are going to see masten and other companies delivering robotic missions as precursors so that we take some of the risk out for humans. stuart: you got the word masten in there about a half dozen times. very good, young man. you know how to play television. very good indeed. we wish you luck in the competition. come back and tell us how it goes. sean mahoney. more "varney" after this.

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sunday night? ashley: sunday night. 19.3 million viewers. the actual number was 13.6. some people record it, watch later, whatever. 13.6 million were watching it live. looks like a lot of dark action there. that is a record by itself. a lot of complaints. people didn't like it. you know this final season averaged 44 million viewers per episode when you add in all the people watching on all the different platforms. the interesting thing about the "game of thrones," this was the 8th and final season. every season grew on each other. sometimes viewing peaks in the middle and. not this. stuart: it is over? ashley: it is done. stuart: some people not reviewing subscription to hbo? ashley: there were some. an eight year subscription just for "game of thrones." >> people were in therapy. they felt sad. stuart: did you watch it? >> i didn't. stuart: ash? >> i have seen some.

>> something with all the dragons. >> i don't mind the dragons. i think it is gruesome. stuart: none of the people around here ever seen it. executive producer watched the who egg thing. that is your problem, justin. it is yours, neil. neil: defense secretary patrick shanihan is a guy might be conducting saying potential attack has been put on hold. we'll hear from the former u.s. special operations commander. he is out with a riveting book right now that dove sales his entire career, admiral william mcraven joining us. markets bouncing back on news we're pulling back some of the blacklisted exemptions with companies that do business with huawei. that has not stopped the chinese government indicating this could be a long protracted affair. xi xinping is on the wires saying this is a long march.